Customer Satisfaction In Vuca World

In today’s competitive environment, delivering high quality service is the key for a sustainable competitive advantage. Customer satisfaction does have a positive effect on an organization’s profitability. Satisfied customers form the foundation of any successful business because customer satisfaction leads to repeat purchases, brand loyalty and positive word of mouth.

The complexity of the global supply chain operations has not been more apparent than during the financial crisis of recent times. It led to raised awareness about the vulnerability of the complex operations that span over a number of continents. Trends in business indicate that there is a movement to restrain and even reverse outsourcing and back shoring to check volatility, uncertainty, complexity and ambiguity (VUCA) that characterize international business today.

Customer Satisfaction Index (CSI) measures the satisfaction level of customer towards product or services. CSI is needed to provide a comprehensive insight to the customer pre and post purchase behavior. The index will raise company service excellence standard, focus on quality improvement, elevate brand reputation, strengthen long term customer relationship and loyalty and CSI will serve as an indicator of the company’s health.

Customer satisfaction is tied directly to profitability. If customers are happy, they tend to be loyal. And if they are loyal they not only buy more, but they will refer to other customers.

It is also significant we know how business performance measures like cost, quality, customer satisfaction, security, access to market and innovation are affected by VUCA and how insourcing and back shoring have lately emerged on top as they lower the impact of VUCA on these business measures. Through rapidly changing global business environment requires the performance measures to be monitored keeping the VUCA factors in mind as markers.