Most organizations focusing on Quality Management Standards (ISO 9000) and / or Total Quality Management have declared Customer Satisfaction or Customer Focus as the centre piece of the Quality Policy.
However, most of the organizations do not yet have an objective method of measuring and monitoring customer satisfaction. More often it is, customer complaints as the only index of customer satisfaction. In fact, customer complaint is a reactive approach which measures customer dissatisfaction, as the error has already occurred.
In a highly competitive market in the USA, some of the well known organizations like AT & T, General Electric, Westinghouse and many others discovered to their surprise that even over 90% level of customer satisfaction is no surety of retaining the customer and the market share. Through years of research and cooperative effort they developed a proactive method of evaluating and managing Customer Value. This process helps the organization to be driven by market perceived value of its total offerings consisting of benefits, functions and performance in relation to the price, the cost and the profit.