This is “Customer Satisfaction, Loyalty, and Empowerment”, chapter 14 from the book Marketing Principles (v. 1.0). For details on it (including licensing), click here.

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Chapter 14 Customer Satisfaction, Loyalty, and Empowerment

The marketing concept, described in Chapter 1 "What Is Marketing?", reminds us that the customer should be at the center of a firm’s activities and that the company that thrives is the one that serves customers’ needs better than the competition. Yet often it is the customer who is most adept at serving the customer’s needs. Consumers being able to take control of the marketing activities aimed at them is what customer empowermentProviding tools that enable customers to take control or influence marketing. is about. Today, technology is making it more possible for the customer to do exactly that. In a recent survey, the chief marketing officers of 250 top companies were asked about the key factors that influence the performance of their companies. The officers’ response? A company’s ability to interact and respond to its customers as well as empower them.Girish Ramani and V. Kumar, “Interaction Orientation and Firm Performance,” Journal of Marketing 72, no. 1 (2008): 27–41.

Research shows that customer empowerment is a function of three things: creating feedback channels that are easy and widely available, asking for and encouraging feedback about products, and enabling customers to participate in the design of products. In Chapter 5 "Market Segmenting, Targeting, and Positioning", we discussed how customers can participate in the design of products, or offerings. In this chapter, we focus on those ubiquitous feedback channels, as well as strategies to solicit and encourage feedback.

Take JCPenney, for example. You might think that a company as large as JCPenney would be unable to give customers the ability to create their own types of shopping experiences—that standardizing the products and services they receive would be necessary. But JCPenney is an excellent example of how a firm can use the Internet and other technology to engage its customers and provide them with more control over the products and marketing communications they receive.

Audio Clip

Interview with Laura Carros

Listen to an interview with Laura Carros, a JCPenney executive responsible for many of the company’s customer initiatives.