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Utilizing superior customer satisfaction to drive long-term growth in small high technology companies/ by Richard C. Schmidt

by Schmidt, Richard C.

Consumer satisfaction

Employees -- Training of

Organizational change

v, 138 leaves : ill. ; 29 cm.

Advisor: Kimbel Nap.

Committee members: Gene Wright, Stanley Kosmatka.

Introduction -- Long-Term Growth -- Customer Satisfaction -- High Quality Employees and Managers -- Customer-Driven Knowledge and Skills -- Summary/Conclusions.

The best way for a small high technology company to drive long-term growth is to create highly satisfied customers. Highly satisfied customers drive long-term growth in three ways. First, highly satisfied customers become long-term repeat customers if their needs and wants are continually satisfied better than anyone else. Second, highly satisfied customers provide valuable referrals that can be used to influence the buying decisions of prospective customers and promote company products and services to prospective customers. Third, prospective customers and existing customers are attracted to companies that deliver superior customer value. Investors are also attracted to companies that deliver superior customer value.

Customer satisfaction is determined by the degree to which a company meets or exceeds customer value expectations. The more a company exceeds customer value expectations, the more satisfied customers become. The more confident a company can make customers feel about the company’s ability to deliver on customer value expectations, the longer the company can expect to have highly satisfied customers. The longer a company is able to provide superior customer satisfaction the longer the company can count on customers to drive long-term growth.

The author advises top management to create an organization that can maintain a close relationship with the customer. A small high technology company that stays close to the customer will never go wrong because connecting the organization to the customer will provide a competitive advantage that will help ensure company success for many years to come.

Small technology companies that focus primarily on sales and marketing activities may experience rapid growth followed by a period where the growth rate flattens out or declines. This abrupt change in the growth rate usually occurs because the company is unable to satisfy existing customers and new customers. The best practice for small high technology companies seeking fast-growth strategies is to focus on customer satisfaction from the start and make every effort to break out of the sales-driven phase as soon as possible.

The first step to using superior customer satisfaction to drive long-term growth requires top management to make the commitment to change to meet the customer’s changing needs and wants. Top management must have the courage and determination to redefine and redesign the way it does business.

The author identifies and discusses key success factors, business practices, and competitive tactics that allow small high technology companies to use superior customer satisfaction to drive long-term growth. The key success factors involve the need for improvements in recruiting and retention of top-notch people, knowledge and skill development, quality, communication, definition of customer needs and wants, and ability to deliver upon customer value expectations. The business practices and competitive tactics discussed are some of the methods by which a small high technology company can implement the necessary improvements.

The most important success factor involves employees. Employees directly impact a company’s success when provided with the resources, training, and authority to solve customer problems.

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