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New Customer Satisfaction Index Hints at Better Times Ahead

May 20th, 2008 @ 11:57 am

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Categories: Best Practices, Economy, General, Management, Strategy, Tips and Tools, Wisdom

Tags: University Of Michigan, Southwest Airlines Co., Customer Satisfaction, Telephony, Telecom & Utilities, Product Marketing, Telecommunications, Network Technology, Networking, Marketing

After a year of disappointing scores, the annual American Customer Satisfaction Index put together by the University of Michigan saw a modest 0.4 percent jump on the index’s 100 point scale to 75.2.

  • WINNERS. Scoring well were hotels such as Marriott, Hyatt and Hilton with scores of 78. Cheaper digs offered by Comfort Inn, Quality Inn and Econo Lodge did less well. Fast food seems to be serving up better chow, scoring a full point better over the past year. McDonald’s had its highest gain ever and Pizza Hut and Papa John’s among the highest int he industry. Also in the improving category are telecommunications and cable although satellite carriers fare better. At&T did best followed by Cox Communications and Verizon with Comcast bringing up the rear.
  • LOSERS. Among those that didn’t fare so well: cellphone companies and airlines. Sprint Nextel plummeted 8 percent to 56 while Verizon topped the industry. As far as airlines, take a train. Continental and US Airways took nosedives, United and Delta fared poorly with Southwest Airlines soaring ahead.

The overall improving scores could signal better times ahead. That was the case during the last index downtown in 2000 and 2001 folloowing the dot.com and telecom meltdown. That period saw customer satisfaction paragons as Dell and Southwest Airlines taking dips.

Smart CEOs paid strict attention to problems and over time both Dell and Southwest resurrected themselves by paying more attention to individual needs and improving call centers. These days, University of Michigan experts warn that households are under considerable credit and inflation pressure, so keeping customers happy with decent service and products is a must. 

Have a tidbit of executive wisdom you would care to share with fellow BNET readers?

 

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