Systematic customer satisfaction management requires strategy, appropriate technology, and the knowledge and time to prepare, analyze, and manage feedback.

Systematic customer satisfaction management is the cheapest way to achieve long-term company profitability. It requires a company strategy, appropriate technology, time, and knowledge.

Do you know any company that doesn't believe customer satisfaction is crucial for long-term business success? Neither do we. There are many reasons why managing satisfaction pays off, but we consider these two the most important:

• It is easier and, above all, cheaper to resell to satisfied customers.
• Dissatisfied customers who leave cost you threefold: you lose their lifetime value, they bring potential negative PR, and they take money to competitors who then use that money to compete against you in the market.

Customer satisfaction is crucial for business success, yet only a few Slovenian companies actively and systematically manage their customer satisfaction. According to our internal research, **only 7% of Slovenian companies can say they have a comprehensive, functional customer satisfaction management system in place**.

Why do so few companies actively manage customer satisfaction?

The reason likely lies in the complexity of establishing and managing such a system. A successful customer satisfaction management system requires the company to have:

1. the right strategy,
2. an appropriate technological solution,
3. knowledge for preparing the right questions and analyzing information, and
4. time for reviewing and managing information.

1. Effective Customer Satisfaction Management Strategy

An effective customer satisfaction management strategy includes three elements:

Past

We monitor our customers' current satisfaction, systematically look for dissatisfied customers, and try to resolve their dissatisfaction. Our goal is **reducing customer churn rate**.

Future

We systematically gather information about what bothers our customers, what they need, and what they expect from us. We use this information as the **foundation for the company's future business decisions**.

Measurable Goals

Establishing appropriate satisfaction metrics and setting the goals we aim to achieve.

2. The Right Technology for Feedback Capture

Companies have many daily interactions with customers. A lot of information that would be beneficial often gets lost in internal company communication, or customers simply never provide it to us. A well-established system **continuously and automatically** generates the right feedback at all customer touchpoints and allows for easy insight into the collected results.

3. Expertise

An effectively established satisfaction management system requires specific knowledge in the **implementation, management, and analysis** of collected information:

• Setting measurable goals (which satisfaction parameters we want to monitor / improve).
• What information we collect (preparing the right questions for customers).
• How we collect this information (selecting the right customer touchpoints, method of capturing this information).
• Analysis of collected information (internal benchmarking, questionnaire adjustments, comparison of the current state with active management goals).

4. Time for Information Review and Management

A correctly implemented customer satisfaction management system will continuously generate a large number of customer feedback. Certain feedback requires an immediate company response (dissatisfaction), while others present us with our customers' needs and desires. An active satisfaction management system requires a person within the company who **actively monitors and processes received feedback** – a sort of satisfaction manager.

Systematic Customer Satisfaction Management is a Long-Term Company Direction

Establishing a functional satisfaction management system is a significant step that may require a substantial investment of time and money, but it more than pays off in the long run. Companies with such a system pursue two goals:

• On one hand, increasing customer satisfaction (fewer departures, greater loyalty),
• and on the other hand, developing the company in line with customer needs.

All this for a simple reason: **because it is easier and cheaper to sell to satisfied customers than to look for new ones**.