Writing Assignment #6

.docx

School

University of Notre Dame *

*We aren’t endorsed by this school

Course

601

Subject

Business

Date

Jan 9, 2024

Type

docx

Pages

4

Uploaded by ProfessorAtomMonkey28

Report
Writing Assignment #6 1. a. Customer satisfaction Costco supermarket has committed to a customer focused strategy. Focusing on cleanliness, customer service, and innovative business model, Costco has surpassed several businesses in customer satisfaction. With lower prices and the ability to purchase bulk products, customers have become loyal to the company. This can be measured by customer retention and daily sales. Additionally, according to a survey provided by American Customer Satisfaction Index (ACSI) “more than 62,000 consumers to chose their favorite stores in several categories. The satisfaction rating is based on product quality and is measured on a scale of 0-100. Costco scored an 83” (Morgan, 2019). b. Service quality One of the best ways to measure service quality is through customer feedback. On Costco’s website and mobile app there is a feedback pop up on the screen for customers ( How Can I Provide Feedback? , n.d.). Anytime during their experience this button is available. Hearing feedback from your customers allows Costco to improve their business and ensure they are serving their customers at the highest level. c. Customer loyalty ( or net promoter or another similar metric) Net Promoter Score (NPS) is a management tool that can be used to gauge the satisfaction of a firm's customer relationships. NPS has been widely adopted as a key metric often linked to the revenue potential of a company’s product or service. The metric is based on customer responses to the question: "On a scale of 0 to 10, how likely are you to recommend the product to a friend?" ( Costco Brand , n.d.). Customers have given Costco a significant grade due to its customer driven strategy. With NPS, Costco can measure how often customers are referring their market to other consumers. d. Customer behavior (may be customer acquisition, customer retention, page visits, or other meaningful metric related to customer behavior)
Treadwell 2 Costco customer retention is measured through their membership strategy. As a Costco member, there are special rewards and loyalty points offered. Memberships also give customers “the best bang for your buck.” “The most obvious benefit to customers: through discounts, redeemable points, and VIP perks, loyalty programs help shoppers to save money” (Charlie, 2023). Through tracking the number of memberships, Costco can track customer retention. e. Customer lifetime value Costco customer lifetime value in addition to customer behavior can be tracked by the membership. Customers signing up for a membership plan to be with the company for quite some time. With specific Costco brands, loyalty rates, and rewards, customers tend to stay with these supermarkets for years. f. Firm Performance (profitability, value, or another meaningful metric). Costco measures profitability all year long and will be reported during their earnings call. Accountants begin the fiscal year by budgeting yearly expenses and in conclusion see the actual revenue. Calculations are based on consumer purchases, Costco purchases from distributors, marketing strategies, operation expenses, and many other factors. Nonetheless because of customer satisfaction, Costco’s performance continues to increase. 2. GENERALIZATION 1. Improvement in customer satisfaction has a significant and positive impact on firms' financial performance Starbucks is one of the leading coffee shops in the world. This is because of the long history of customer satisfaction and great coffee. By creating a welcoming atmosphere, hiring polite greeters, and creating membership and loyalty points, Starbucks created an experience for their customers. Thus, making it easier for them to come back each day. Doing this boosts profits and has a significant impact on the company's financial performance. For example, within the last 5 years, Starbucks created a digital strategy implementing an app that provides “tailored made” order suggestions. Customers are now able to receive recommendations on the app before stepping in the door to order. “Just like their relationship with
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help