The Importance of Customer Satisfaction in Service Organizations

The aim of this essay is to explain the importance of customer satisfaction in service organisations. Clear meaning of the customer satisfaction has been provided along with the causes and results from the effective implementation. J. Heskett's "service-profit chain" model has been used in order to understand the relationships between profitability of a service organisation with customer satisfaction and loyalty and the outcomes of this relationship. Examples has been illustrated based on the first five case study from Lovelock's book "Services Marketing: A European Perspective" (See appendix 1). Furthermore the identification of methods and techniques of customer satisfaction measurement has been illustrated. Finally techniques and strategies for customer satisfaction improvement have been discussed.…