To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement. | Chapter 4 Focusing on Customers 1 Key Idea To create satisfied customers the organization needs to identify customers needs design the production and service systems to meet those needs and measure the results as the basis for improvement. Importance of Customer Satisfaction and Loyalty Satisfaction is an attitude loyalty is a behavior Loyal customers spend more are willing to pay higher prices refer new clients and are less costly to do business with. It costs five times more to find a new customer than to keep an existing one happy. A firm cannot create loyal customers without firs creating satisfied customers.
