The Customer Is Key: Gaining an Unbeatable Advantage Through Customer Satisfaction

How can a company maintain its profitability in today's competitive environment? Based on extensive research at a wide variety of companies (including Boeing, Federal Express, Jaguar, Maytag, Northwestern Mutual Life, Xerox and Swissair) the authors show that the best way a company can meet competition in the marketplace is by providing products and services which increase customer satisfaction above and beyond the levels given by competitors. In the long term, the company that keeps its customers happy obtains a crucial advantage: loyal customers usually willing to pay a premium for the firm's products. And having customers less likely to switch brands allows the company more time to adapt to changing market conditions. Management can increase profits by charging a little more for a better product (rather than just by reducing costs), obtain more repeat business, and reduce marketing and sales expenses.