Sunday, September 5, 2010

Perfect Formula for Customer Satisfaction

Customer Satisfaction = Experience / Expectations

Explanation of the formula...if someone goes to Burger King and orders a burger they might expect that burger to be a 2 - out of a 5 point rating system.  Burger King, like many franchises, are great at maintaining consistency.  So, when you eat this burger it is no surprise that it is a 2 out of 5.  Not a great burger perhaps but it is what you expected.  So, your Experience (2) divided by your expectations (2) would result in 100% customer satisfaction.....you got just what you expected so you are satisfied.

Now, lets say next week you go to Hennessey's Tavern for a burger (check them out...they do have great burgers...http://www.hennesseystavern.com/laguna_beach.html).  You love the burger's there and you expect this to be a 5 of 5 burger experience.  The burger comes, and much to your surprise, you could only rate the burger as a 4 out of 5.  This means your satisfaction is 4/5 or 80% of what you expected.  You are not wholly satisfied.

Even though your rating of the Hennessey's burger, 4 out of 5, is twice as high as the Burger King burger, 2 out of 5, your satisfaction level is 20% lower.

Lesson: when a customer's experience is in line with their expectations they will be 100% satisfied.

On that note this blog is established.  Readers can expect this blog to share ideas and observations related to business excellence.  The intent is to provide business people with a source for inspiration, motivation and education.  Please read, respond and pass it on.  Hopefully your experience will always be in line with your expectations.

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