"Measuring Customer Satisfaction and Focus Groups" Please respond to the following:
From the scenario, propose two (2) methods that Golds Reling, Inc. could use in order to effectively measure customer satisfaction for the new product launch. Choose the most effective method, and suggest one (1) process that the organization could follow in order to implement your chosen method. Justify your response.
Customer evaluations come in many forms such as customer satisfaction, perceptions of quality, customer intentions to repurchase the same brand or from the same provider, and the likelihood that a customer would generate word-of-mouth and speak favorably to friends, family, and coworkers. There are three possible outcomes of how consumers evaluate products: if customers’ experiences surpass their expectations-customers are delighted, if customer’ experiences meet their expectations-they are satisfied, and if customers’ experiences fall short of expectations-they are dissatisfied (Iacobucci, 2014). Sources of these expectations can come from ones personal experience, friends’ advice, marketing information, or a third party such as ratings (Iacobucci, 2014). It isn’t possible for marketers to precisely measure customer’s perception of quality and satisfaction. There are occasionally objective measures of quality, however, marketers can rarely set precise measures of quality standards and expect consumers to conform. RFM, or Recency, Frequency, and Monetary Value, is a great tool in marketing to measure customers satisfaction. RFM models emphasize customer behaviors and allow us to extrapolate these into future earnings of customer segments. The best customer relationship management programs, or CRM’s, begin with the RFM behaviors but go beyond the data to learn more about the customer. With better customer knowledge, companies can provide specifically tailored offers through cross-selling efforts. CLV, or Customer Lifetime Value, involves three kinds of components: numbers about money, numbers about time, and a financing finesse (Iacobucci, 2014). In order to calculate CLV you need to know information about the customer and information about the product. You must know your average revenue, average costs of good sold, average variable costs, clients repurchase rate, and client referral rate. This will allow us