Gruca Study Shows Customer Satisfaction Improves Business
Bookmark & ShareFebruary 19, 2007
Consumer surveys show that many businesses are seeing significant drop-offs in customer satisfaction, which could prove to hurt their bottom lines in the long run. A study by University of Iowa marketing professor THOMAS GRUCA shows that when consumers are satisfied with a company, they come back for more. For each point a company improves its rating, net cash flow improves by $55 million a year later, he found. And that rate includes auto companies and other sellers of durable goods, which rarely make a follow up sale to the same customer a year later. So for retailers, banks and other companies that sell goods more frequently, that rate is even higher. "When a business says they want customers satisfied, it means two things. It means it wants them satisfied now, but it also means it wants them to come back," Gruca says.
Contact: Tom Gruca, ,
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