What is Customer satisfaction index?

Does high customer satisfaction always result in improved customer loyalty?

• Is it true that high levels of customer satisfaction result in increase in the loyalty a customer feels toward a particular product or service. Are there contradictions to this no-brainer?

• Answer:

  No! Not always. It seems logical to keep customers happy and earn long term loyalty. And according to industrial experts it is a huge leap of faith. Based on a study by Cornell University’s Center for Hospitality: 36% of business and leisure travelers were “satisfied” with their hotel—and admitted loyalty. But they were not sure of staying at the same place on a subsequent visit. In a recent Harvard Business Review article, it was found that between 65% and 85% of customers who defect said they were “satisfied or very satisfied” with their former supplier. While satisfaction scores in the automobile industry average 85% to 95%, only 40% of these customers purchase their next vehicle from the same supplier. And you can find more cases similarly. Source: http://www.surveymethods.com/glossary/article_satis_loyalty_l.aspx