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Russian Companies start to be worried about the Customer Satisfaction Index

If we look back words 30-40 years ago main efforts of scientists and managers were linked to the product and operations improvement. As results a lot of studies were done in the sphere of quality improvements, new models and strategies were build and implemented around the subject how we make our product or service better than competitors, how we can reduce the costs, how we can make our products reliable and our processes lean (inside-out approach). As result we find a lot of studies in the products quality field, a lot of company started to implement Total Quality Management systems, Lean Strategy and reengineering of Business Processes programs. “After more than a decade of this activity, the overall results have being less than spectacular. By some estimates, over 50% of all reengineering efforts resulted in operating results that didn’t meet expectations… Some companies have given up the whole process and abandoned their TQM and reengineering programs entirely”.Reason for such a result lay in the overall approach to reduce the costs and often the costs cutting was linked to the functions, which are critical to the customer (customer service, marketing activities and etc.). So the customer interests were not considered in such programs.

Russia doesn’t stay apart from all these processes. Russian economy slowly, but purposefully continues its’ development. The population’s incomes are growing, the manufacturing capacities are increasing. The assortment of the consumer goods and services are widening. We can see the positive progresses taking the other criteria into account – the Russian manufactures pay more attention to the marketing initiatives and the Russian consumer to the quality of the goods offered. Both, the many researches of customer satisfaction and the attention to the quality management, mean that the producer much more cares about the customer’s preferences. Our economy is becoming the market system, the national Russian market is becoming a part of the world market, and the competition is growing among the national producers. Progressively the Russian consumer gets the role of key element in the market transactions. It makes the consumer role more significant. The term “customer satisfaction” is quite complicated, multifaceted and not well-established yet. Nevertheless the customer satisfaction index is applied to the practice more often. Many prosperous modern Russian companies pay much attention to this index. The collection and analyses data on customer satisfaction is a part of their marketing policy. We should notice that this also influence upon the quality and human resource management. The modern complicated customer oriented organisations requires more information and special knowledge about the consumer, its’ behaviour and motivation. The customer satisfaction index, the customer loyalty allows the producer to understand the consumer motives, to define the structure of the current consumption, reveal the tendencies of the consumer demand. As mentioned above, the customer satisfaction is a part of the quality management. Moreover, the recommendations to execute the on the regular basis the monitoring and the measuring of the consumer satisfaction have been included in the quality management standards.

We are not isolated any more from the other world, the national Russian market is becoming a part of the world market, and the competition is growing among the national producers. Progressively the Russian consumer gets the role of key element in the market transactions. It makes the consumer role more significant. But we are still far away to be the country where the customer focus is the inherent part of the corporate culture. If we look to the one of the most recent Global Competitiveness report 2016-2017 prepared to the World Economic forum we can see that one of the important parameters on which country’s overall competitiveness index is measured is Goods Market Efficiency and one of the aggregate parameters included into this index is the Degree of customer orientation (for the company working on the certain market) as well as Buyer Sophistication. If we look to the data for Russia wecan found information: by Degree of Customer orientation Russia takes 81 place between searched 137 countries in the world and these are 32 ranks more than it was in 2013 and more than in 2011 by 55. It means that Russian companies in average still do not care so much about their customers, they are not so responsive to them and do not think so much about customer retention. This survey shows us how far stays Russia in terms of customer centric corporate culture from the other developed countries but also shows us that Russia develops it.

As result in 80s-90s majorities of managers realised that whatever they do in quality and operations has to be accepted and needed on the market and main and key driver here is consumer demand. “Outside – in” approach became the object for the investigation. Customers and their needs nowadays became the start point to study and to focus. “Voice of the customer” became the dominant voting voice in the whole process of all company activities. Further investigations linked to the idea of customer satisfaction resulted in number of studies and business models, which study the companies from the angle of Customer Loyalty and Customer Value management. In contemporary world only ability of the company to understand their Customers values, being able to meet customers’ expectation and build system of Customer Loyalty can differentiate company from the other competitors on the market. Product as such doesn’t’ have any value. Value of the product occurs only in the process of interrelation between product/service producer and customer. If product attributes are valued by customer, than customer might be satisfied with this product; but customer satisfaction linked not only to the product, but also to the service provided by the company and overall company performance. Only customer satisfaction can lead company to the profitable operation. But to assure constant profitable operation company has to build strong bonds with their customers to stimulate them to by products or services on the long run. Such bonds can be legitimately or naturally defined, but in many cases they are behaviourally and emotionally driven. Creations of such bonds lead companies to the other level of cooperation – partnership, based on the Customer Loyalty.

12/11/2018 | Blog
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