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Customer Satisfaction
The best performers view profitability as an essential ingredient for organizational success, but they believe that it
flows from customer satisfaction. They know that satisfaction is linked to profitability and that higher satisfaction
correlates with higher profitability (Denove & Power, 2006). Top performers realize that customer satisfaction and
loyalty are essential to their long-term success (Johnson & Gustafsson, 2000). The best firms know that they can
improve performance by creating an organizational culture focused on exceeding customer needs and expectations,
and they realize that this operational focus can lead to increased profitability. They recognize that in an increasingly
competitive market, customer satisfaction takes on added significance (Denove & Power, 2006).
The top performers have a generic strategy that is focused on the delivery of exceptional service exceeding customer
expectations. In an effort to elevate their firm above commodity status, they seek to differentiate their organization
through a relentless focus on customer satisfaction. They create an organizational awareness and commitment to the
customer. They seek to
enhance the client’s experience and interaction with the firm. Top performers
work to be
viewed as an extension of the customer’s organization –
a valued member of the owner’s team.
They relentlessly
pursue
improvements
in
operational
efficiency
and
embrace
an
organizational
philosophy
of
continuous
improvement to enhance performance with the long term goal of increased customer satisfaction (Bausman, 2004).
Since the majority of the work acquired by industrial and commercial firms is negotiated (CFMA, 2007), client
satisfaction is not an option. Rather, it is an absolute necessity for operational success and long-term survival.
The best performers have an intense focus on their current and prospective clients. They continuously solicit
feedback on their performance and regularly seek information from the client’s management team concerning the
customer’s operational needs (Bausman
, 2004).
‘
The best
’
link customer needs with organizational response.
Customer feedback provides management insight needed to allocate resources, define organizational focus, and
establish operational priorities (Johnson & Gustafsson, 2000). Great companies listen to their customers (Denove &
Power, 2006). They realize that standardized response is often not compatible with customer satisfaction. The best
know that enhanced customer satisfaction requires customization of service
–
tailoring the firm’s offerings and
actions to meet individual and unique customer needs (Anderson et. al., 1997).
The most successful firms charge management at every level and in every department with responsibility for
customer satisfaction. They solicit regular and comprehensive feedback from their customers that is shared openly
and often with the entire organization. The top performers are continually probing the market and their clients for
insight and critique. They believe that meaningful data and feedback concerning their operating environment, and
the firm’s performance within that arena, are essential for
effective response and organizational success. They
believe that assessment and measurement: 1) are key to identifying areas needing improvement, 2) must be
continuous, 3) need to
be as ‘objective’ as possible, and 4) must provide feedback tha
t is meaningful, useful and
provide guidance for action (Bausman, 2003).
Research Objectives
But how do contractors establish customer expectations, solicit feedback, disseminate customer assessment of
performance,
and
react
to
poor
performance
and/or
low
customer
satisfaction
levels?
This
research
effort
investigated
that
primary
question.
The researchers
examined the
work
of
previous
research
and
scholarly
publications on customer satisfaction surveys as well as solicited input from a regional sampling of building
contractors. The primary objectives were as follows:
Investigate how customer expectations are established.
Identify the most effective method(s) used to solicit customer feedback.
Determine how customer feedback is obtained.
Investigate how customer feedback is utilized.