Nestle is a multinational company whose headquarter are based in Vevey, Switzerland. The company operates in more than eighty companies globally. The company operates in the food segment are which is quite a competitive industry. Consumer satisfaction means satisfying the customer by making the best product for the customer. The product and services of the company must meet consumer expectations (Smith, 2018). Nestle uses the Net Promoter Score methodology to calculate its consumer satisfaction in the market. NPS serves as a customer loyalty metric which measures how willing a customer is to purchase the product or service of the given brand or to recommend the same product or service to a friend, relative or colleague. Nestle uses the method to measure the company’s growth by an accessible collection of data which is then interpreted. When you visit the Nestle website, you also get to survey their products and how satisfied you are with them. A net promoter score is a number from -100 from 100. If the customer rates the company above 0, then the company products and services are good, but if it is ranked above 50, then the services and merchandise from the company are excellent. The NPS methodology is also used to measure the service quality by the employees to the consumer. The consumers are given a survey on the services rendered to them by the employees from various departments. The company will get to know what to improve depending on the outcome of the study (Nestle, 2019).
Nestle uses agile research to measure consumer behavior towards a specific product in the market. Through this research, they incorporate the consumer feedback early enough to know what to change in their product. The input is always in the consumer language which helps them to connect more with their consumers, and through this, they can retain their consumers. The research has four faces, and in all of them, nestle aims at getting feedback from the consumer which they use to develop the given product to improve the customers’ behavior towards their products. Various digital platforms such as social media are used for the research.
Nestle uses the predictive method to predict customer lifestyle value in the future as well as plan for the future of the company. It handles the current transactions which are then mixed with the customer behavioral metrics that it had established before. Nestle uses every new purchase with the behavioral data to predict the customer lifetime value. When numbers change then the company has to change the figure as well to come up with an accurate picture. The more the data, the more the benefits to the company.
Nestle uses eye tracking as a way to track the firm’s performance in the market against its competitors. Through this method, they understand live shopper behaviors. The eye tracking technology enables nestle to set its objectives right and increase its consumer base. Nestle also uses customer metrics to measure the firm’s performance.
Provide an example of each of the following below:
Consumer behavioral measures explain the reason why a consumer may prefer to purchase a specific product at a given time. A company like Amazon focuses all its effort towards satisfying the consumer who has been one of the reasons for its success as a firm. Amazon has used both observable and non-observable measures to ensure customer satisfaction. In using observable measures, Sellers are required to meet the high standards which Amazon has set which are for the benefit of the consumer. This means that the products the customer gets are of high quality. The company always updates its website with different products to suit the needs of the customer. Two people cannot see the same page when they view the Amazon website as it will have already been updated with a different product. To satisfy their customers, Amazon has used also used non-observable measures such as offering low prices to consumers, convenience such that their products can be delivered to their location within a given time, and offering a wide selection of merchandise to their consumers. The company also has an excellent customer service which is another strategy they use to satisfy their customers. Jeff Bezos, who is the CEO and founder of Amazon has ensured that the customer is always listened to and there is constant innovation all for the sake of satisfying the client. Amazon tends to understand the buying habits of its consumers and provide them with a good that is by their taste and preferences. This has ensured that the firm becomes the most significant e-commerce market place (Solomon, 2018).
Example of an organization that successfully implemented the service-profit chain
Nestle company has successfully implemented the links in the profit chain which has led to the growth of the organization as a whole. Good leadership in Nestle is one of the reasons why the company is one of the leading food and Beverages Company. The management uses a democratic type of leadership. Nestle has a very organized hierarchical management. Leaders know how to offer their service to their consumers and their fellow employees to come up with a company whose products are in demand in the market. Peter Brabeck-Letmathe has been the CEO of Nestle for more than 50 years, and his excellent leadership in Nestle cannot be disputed due to the success the company has experienced since it began (Nestle, 2019). The superb management has contributed to employee satisfaction that in turn becomes loyal to the company thereby enhancing their productivity. By using a democratic type of leadership and involving the employees in the decisions and other activities of the company, then the employees feel valued and become more productive. Employees need morale and motivation to produce quality results. Nestle ensures that the employees grow career wise by offering them trainings and talent assessments. The company also enhances personal growth of employees by encouraging them to collaborate with other colleagues through culture and ways of thinking. When employees produce products of value in different departments of nestle company, then the consumer is satisfied and becomes loyal to the company. Nestle products are always in demand in the food and beverage industry due to their quality (Robert, 2019). The company, through its employees, has made an effort to provide quality products to its customers. Customers have become so loyal that they tend to buy the brand, not the product. Nestle company has experienced customer loyalty which has led to the growth of the company since its inception (Nestle, 2007).
(2019). Retrieved from Nestle: https://www.nestle.com/stories/home#/category/featured-stories/1
Robert, F. (2019, January 3). Nestle. Retrieved from Food: https://www.newfoodmagazine.com/organisations/nestle/
Smith, G. (2018, July 2). Nestle. Retrieved from Food: https://www.newfoodmagazine.com/organisations/nestle/
Solomon, M. (2018, June 10). The Four Secrets Of Achieving Customer Satisfaction. Retrieved from Forbes: https://www.forbes.com/sites/micahsolomon/2018/06/10/the-four-elements-of-customer-satisfaction-how-to-achieve-it-over-and-over-again/#63edc93528c2