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The importance of keeping customers satisfied
BUSINESSES must continue to keep on making efforts to raise customer satisfaction as this is important for them and the overall health of the Singapore economy, says Neeta Lachmandas, executive director of the Institute of Service Excellence at SMU.
"The CSISG model postulates that better customer satisfaction performance is positively correlated with customer loyalty and therefore the long-term competitiveness of a business. Higher customer satisfaction levels also predict lower incidence of customer complaints.
"Having more satisfied customers means greater resilience because these customers are more likely to be the last to leave and first to come back in times of economic downturn. A more satisfied customer base would imply greater stability in terms of consumer spending which in turn is a key indicator of the health of the Singapore economy," she adds.
Asked what the institute aims to achieve by producing the CSISG and focusing on different sectors of the economy each quarter, Ms Lachmandas says: "The CSISG provides an objective, independent benchmark that allows companies to track their relative performance in customer satisfaction year on year.
"Premised on the belief that measurement is the first step to identifying gaps and opportunities, the study serves as an important feedback mechanism that provides companies with insights into how their customers are rating them and the attributes that are driving customer satisfaction and loyalty.
"Given that resources are limited, companies can harness the capabilities of the data analytics to identify the best way to optimise their resources and to invest in areas that will actually help them move towards higher levels of customer satisfaction."