The European Center for Customer Strategies conducted some customer satisfaction management research a while back. The results of the study, which have been published in a report titled 'Sharing the Pleasure, Sharing the Pain,' indicate that there are seven qualities that distinguish exemplary customer-focused companies. David Harvey, the ECCS director, believes that companies would be wise to start linking customer satisfaction more closely with executive compensation.

He summarizes the findings of the research in a September 9 white paper:

'In the current climate of concern about the disconnect between executive pay and corporate performance,' writes Harvey, 'there is an obvious plus point in linking board [member] rewards to customer satisfaction. Not least, shareholders should like the idea.' The research demonstrates that a board pay policy goes hand-in-hand with a customer-focused culture. Yet he notes that, while this would seem to be a prudent business strategy, a little more than a fifth of companies surveyed actually follow this practice. Harvey points out that there are significant differences between companies that link pay to customer satisfaction and those that do not.

He cites the seven practices that mark the superior customer focus of 'linked' companies:

1. Customer satisfaction incentives for all.

Linked companies are much more likely to reward everyone from the boardroom on down for high customer satisfaction levels. Half of these companies apply the principle to the pay, incentives, or bonus of everyone in the company, compared to just a few 'unlinked' companies that do.

2. Corporate-wide responsibility for customer satisfaction.

Linked companies are more likely to require that all staff, not just those in the front lines, bear responsibility for customer satisfaction. They are also more likely to place importance on after-sales service and product development. Unlinked companies tend to see service, sales, and marketing as the only departments responsible.

3. Comprehensive measurement of customer satisfaction.

Linked companies place importance on customer survey data and measure satisfaction in far greater depth, more often, and across more dimensions than unlinked companies. Nearly a third of companies measure customer satisfaction indicators continuously and they are more resourceful in using technology to assess satisfaction levels, including the use of Web-based surveys.

4. Bottom-line evaluation of customer satisfaction.

Linked companies analyze the impact of customer satisfaction on product development, profitability, and other drivers of business success more rigorously than their counterparts. They are more sophisticated in making the connection with new customer recruitment.

5. Constant customer focus.

Linked companies are more diligent in developing customer strategies, including the use of regular meetings at all levels of the business. They regularly discuss customer satisfaction at board and operational levels of the business.

6. After-sales service.

Linked companies closely manage the experience of customers throughout the lifecycle of their involvement with the business, not just at the time of purchase. This is reflected in the higher priority given to after-sales service.

7. Regular customer interaction.

Linked companies communicate with their customers more often. They use varied formats, including focus groups, Web surveys, and informal discussions to keep in regular touch with their customers.