The Customer Satisfaction Survey Snag

Customer satisfaction has been a major business buzz phrase for more than a decade. In his 2001 book, The Loyalty Effect, Fred Reichheld claimed that customer loyalty is a dominant determinant of success in business. He purported, for example, that a 5% improvement in customer retention for an advertising agency can create a 95% increase in average profit per customer over time. He claims similar (though less extreme) effects in most other industries.

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