Frontline Management Explain Why It Essay

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Customer satisfaction is used by most companies in their differentiation strategy. Therefore, companies are interested in increasing the satisfaction of their customers.

However, the importance of customer satisfaction varies in accordance with the characteristics of each business segment. In business industries characterized by increased competition between numerous providers customer satisfaction has a high level of importance (Hill & Alexander, 2006). This is because competitors in such industries must improve customer satisfaction in order to increase market share. In business sectors where companies have an increased bargaining power customer satisfaction has a lower level of importance. This is because customers must select from a reduced number of suppliers.

Customer loyalty refers to companies attracting the customers in their most important target segment, determining them to purchase their products and services often and in large amounts, and determining them to bring more customers to these companies (Customer Loyalty Institute, 2010). Customer satisfaction usually leads to customer loyalty. It would be difficult for these companies to develop customer loyalty with unsatisfied customers.

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In order to develop customer loyalty, most companies focus on improving communication with customers, improving employee satisfaction, because this determines employees to improve their relationships with customers, and providing certain bonuses to loyal Companies also develop customer surveys in order to determine their needs and preferences, and ensure their customers that they are important for these companies. Therefore, it is important to focus on improving customer loyalty by developing strategies intended to increase their productivity.

Reference list:

1. McLellan, D. (2011). Stop Guessing what your Customers Are Thinking. Retrieved April 5, 2012 from http://www.drewsmarketingminute.com/2011/04/stop-guessing-what-your-customers-are-thinking.html.

2. Hill, N. & Alexander, J. (2006). The Handbook of Customer Satisfaction and Loyalty Measurement. Retrieved April 5, 2012 from http://books.google.ro/books?id=b8D7Dt2bfs0C&printsec=frontcover&dq=customer+satisfaction&hl=ro&sa=X&ei=HPF9T7rwLIHEsgbxs_XwDQ&ved=0CEEQ6AEwAw#v=onepage&q=customer%20satisfaction&f=false.

3. What Is Customer Loyalty? (2010). Customer Loyalty Institute. Retrieved April 5, 2012 from http://www.customerloyalty.org/......

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