After reading the article answer the following question... What is the relations

Question

After reading the article answer the following question... What is the relationship between customer satisfaction and customer loyalty?

Should a firm that is striving to create strong customer loyalty also work to attain the highest possible customer satisfaction? Why or why not? Experts (those who predict the future for a living) are, more often than not, dart-throwers. They perform no better than chance. And recently they have performed even worse than chance. "Economists have predicted nine of the last five recessions." Most experts are biased by their experiences. In fact, the most dangerous person is one who says they are unbiased. "I am just using facts, not opinions, for this prediction" is almost always wrong. We are ALL biased. We see the world through a very hazy prism of our experiences. There is no unbiased news outlet. Even "real news" has an element of untruth to it. Almost every news story I had intimate knowledge of made a significant reporting mistake or factual error in the story. We're human, and we make mistakes. We're human, and we see the world with our strong bias. We overweight individual sources and underweight others. We discount data that is very good, and we rely on data that is wrong. We see patterns when there are none and see coincidences when there are conspiracies. The "expert" can be dangerous. We live in a world where people spend a lot of time building their bona fides so they can make their living off their "expertise." Most of the top 1% of earners make their living predicting the future. But because people come with huge biases, their predictions can often be very, very wrong. In even the noblest professions (like medicine), people have huge biases. Study after study finds top surgeons recommending treatments that they specialize in even when the problem may be better served from another procedure. That's because, for most of us, every hammer is a nail. Sacred cows tend not to be that sacred. Experts tend to talk to other experts and can get sucked into a dangerous groupthink. Once all experts agree on something, even when it is highly speculative, it can become calcified. Experts often say "this cannot be done" like it is a rule of the universe. But instead of a law of gravity, it is more akin to a custom (like setting a fork on a left side of the plate). We see groupthink happen most often is the softer sciences like political science, sociology, foreign policy, and economics. The more specialized the field, the more people find themselves talking to each other and the more they will be prone to repeat one another. While it is harder to happen in hard science, we see it happen there too. Wrong ideas are clung on to too long because it is hard to change one's mind about the world. Max Planckfamously said, "Science advances one funeral at a time." None of this means experts are trying to be sinister. Yes, sometimes people are on the payroll of an interest (for instance, many people who campaign against oil pipelines are indirectly funded by the railroad companies), but that is not usually the case. Biases control people's thoughts much more than money. Protect yourself from experts through contrarian thinking. Conventional Wisdom is often very conventional thinking. Before accepting opinions as truth, think through the issues yourself. Don't just look for agendas but look for biases. If a surgeon recommends a particular procedure that only her hospital does, seek out other opinions. Seek out outcasts. Seek out non-expert experts who often challenge the status quo. Some that I would recommend are Peter Thiel, Naval Ravikant, Nassim Taleb, Paul Graham John Hempton, Charles Songhurst, Sam Altman, and Slate Star Codex. I'd even throw in some mainstream thinkers like Malcolm Gladwell, Susan Athey, Daniel Kahneman, Richard Feynman, Tim Ferriss, and Charlie Munger because people like them will always make you think. Of course, experts can be right. They often are. You don't have time to question everything in this world -- you might turn into the Unabomber if you did. For instance, even if you cannot prove the earth is round, it is not a good idea to think the world is flat. It is likely that the government did not fake the moon landing. And when you were born, you probably were not delivered by a stork. The 40-year life lesson: experts are (very often) wrong. Just because someone knows much more about you about a particular subject, do not assume they are correct. Do not bestow authority on them just because they are wearing a lab coat or possess a Ph.D. Just because someone has spent more time learning about something, it does not mean that they are a closer to the truth than you.

Explanation / Answer

Customers are the foundation on which the profitability and the success of any enterprise depends. Therefore, it is essential that customer satisfaction become a primary focal point for most businesses, as satisfaction of customers subsequently results in customer retention and repeat buying. Customer satisfaction generally refers to perfect understanding of the demands and requirements of customers and utilise this knowledge to serve them better by fulfilling all possible aspects of the demands and requirements, thereby attaining customer satisfaction. Customer satisfaction results from the value attributed to a product or service by a customer therefore it is essential that product be designed to meet user demands customer satisfaction results from the value accorded to a product or service by a customer, therefore, it is essential that products and services be designed to meet customer demand rather than of the producer. The provision for value within every product and ensuring customer satisfaction through customer relationship management which looks into all customer complaints and takes required action in minimal response time, to avoid any damage to company and brand reputation and image, has become an important process within most companies as they understand the importance of customer satisfaction. Customer loyalty results from trust in a brand of product which a customer may develop due to having achieved absolute satisfaction through earlier use of the product or service. Customer loyalty is when a customer is retained and exhibit is trust and loyalty through recurring repurchase of the product or service. We can say that exceptional customer service leads to customer loyalty as good customer service always generates trust in the company and the brand as the customer use headphone and the needs understood by the company and product, resulting in ecustomer becoming a lawyer follower of the brand and product. therefore customer loyalty can be said to be dependent upon customer service as excellent customer service leads to satisfied customers who easily retain their by converting them into loyal customers constantly utilising the product or service. All existing competition today is based on satisfying customers to the maximum which results in maximizing the market share for a certain product, as customer satisfaction is the major deciding factor for the success of any organisation. Customer satisfaction is generally the present attitude and value perception within the product or service Haier customer, whereas, customer loyalty refers to addicting the future behaviour of the customer in continuing to utilise the product or service on the basis of his current attitude. Customer loyalty is therefore, an outcome in the future based on the level of satisfaction depicted by a customer presently measured through feedback received and analysed to arrive at future predictions of loyalty.

Given the fact that customer loyalty is directly proportional to customer satisfaction, it is essential that a firm which is striving to create strong customer loyalty focus on attaining highest possible customer satisfaction implementation of a customer relationship management department focused on satisfying customer demands through quick redressal of complaints in an adequate manner. It should also serve as an important link between the production and marketing to ensure that customer requirements as received through the feedback are adequately implemented wherever possible, within the product or service. The greater the satisfaction of a customer the higher the chance of retaining the customer and converting them into loyal customers.

I vtec contrarian view we can also say that customer loyalty need not necessarily result from customer satisfaction. In the current scenario, branding and Company image taken on mammoth proportions similar to strata which exist within society. Therefore comma many times the very name of a brand generate stressed and customer loyalty without necessarily providing exceptional customer satisfaction by treating customers as royalty. There are numerous examples of big brands having introduced products which were not upto the mark with customers dissatisfied with the same, yet it not having made any impact on customer loyalty. Many examples exist in various Industries such as automobiles with a big brand launching a much awaited car which turned out to be much below customer demands a requirement and yet went on to achieve reasonable success due to the brand name. Same can be said for services for example Uber has had huge issues with customer satisfaction, but in spite of its refusal to acknowledge customer complaints or initiate measures for redressal of grievances, it has a loyal customer base which continues to utilise the services of the company. There are numerous examples across the globe companies having build a brand name on the basis of excellent quality of products, which has resulted in a loyal customer following and shaken by introduction of average quality products at a later time. This in itself depicts the bias in the mindset of the customer regarding brands being dependable and high quality as compared to a product manufactured by an unknown company.

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