Satisfaction -- The Basis of Client Loyalty.

Satisfaction is a concept we all value. We are all pleased with a positive outcome, a wish fulfilled, a job well done. A satisfying experience is one that we remember fondly, that we wish to repeat, that we hope to share with others. Providers promise it, participants seek it, and academics debate it but what is it? How is it created? What does it mean for leisure providers and for their participants? Why is it absolutely critical for the success of any leisure program? These are a few of the questions that will be addressed in this update. I want to offer a proviso before we explore the notion of client satisfaction however. Though I draw on the leisure literature in this review, my sources for this update emerge primarily from the business literature. While preparing the update I was concerned less with the source of the research and more with the value of the insight it offered. My apologies to those who were looking for an update based solely upon leisure sources. Also, I have included a few older but classic references to help round out the update.

Defining Satisfaction

Like any complicated term, there has been considerable debate over what a term like satisfaction actually means. When are our clients satisfied? It seems that it's a function of expectation. Expectations we bring to a service encounter create a reference point or baseline around which judgements are made. Satisfaction results occur when positive expectations are fulfilled or exceeded (Oliver, 1993). These expectations are generally created from (1) price information, (2) external communication like advertising and word of mouth, and (3) previous personal experience (Berry & Parasuraman, 1991). The importance of expectations to satisfaction also suggests that satisfaction actually represents a moving target. A service level that might meet the expectations and therefore satisfy one client may fail to meet the higher expectations of another client.

Further, expectations levels may change within the same person over time. An individual may be satisfied with service at one point in time but as more information becomes available expectations may become elevated. For example, clients were once satisfied with payment for programs through the mail or in person. At one time this had been acceptable operating procedure. However, our clients have learned that any number of service providers permit payment and registration over the phone, internet and so on. As they become aware of such options, clients may come to expect leisure providers to offer the same opportunities. Payment through only mail or in person is simply no longer acceptable. This process, which was once a very satisfying option, no longer meets expectations so it has been rendered unacceptable to some.

Service providers combat this trend in two ways. First, they strive to improve their service offerings. As I suggest below, they attempt to develop relationships with clients so that they can learn more of the clients' requirements and desires. These relationships help them come to grips with new and better ways to serve their clientele. Second, they take an active part in establishing expectation levels. They do this with information. That is why the best service providers now "under promise" and "over deliver". Where once, in order to lure clients, providers would promise service levels they knew they couldn't achieve, they now promise service they know they can exceed. They tell clients to expect the package in 10 to 15 working days when they know they can deliver the package in about 8 working days. In this way, they are able to exceed the expectations they set and hopefully satisfy as a result.

Improving Upon Satisfaction -- Creating Delight

Recent research in service provision has focused on efforts that exceed, rather than simply meet, expectation levels. Unexpected high levels of satisfaction can lead to pleasure and even delight (Oliver, Rust & Varki, 1997). As one author suggests, "Customer delight is the reaction of customers when they receive a service or product that not only satisfies, but provides unexpected value or unanticipated satisfaction." (Chandler in Oliver et al. 1997, p. 313)

This notion of delight has also been called the "WOW" factor in services marketing. Leaders in the service industry spend a great deal of time trying to exceed their clients' expectations, in everything from architecture to customer service, hoping to create that WOW sensation. These expectations fall into several broad categories. As many of you are probably aware, a decade ago three researchers from Texas A&M University explored the various expectations that clients bring to a service encounter. Generally these expectations relate to tangibles (the appearance of physical facilities, equipment and personnel), reliability (the ability to perform the promised service consistently), empathy (caring individualized attention), assurance (knowledgeable and courteous staff) and responsiveness (willingness to provide prompt attention)(Berry, 1995). Though there has been considerable discussion over whether or not these categories apply in all leisure settings, they do suggest the types of concerns that clients bring with them to any leisure encounter.

The difficulty in all this arises from the challenge of WOW'ing clients every time they take part in a leisure program. As suggested above, expectations tend to rise with performance levels. As the service improves, expectations become even more elevated. More elevated expectations make it more difficult to exceed those same expectations. In other words, excellence becomes mundane as expectations rise. Client satisfaction is a task that literally never ends. It is a goal well worth pursuing however because satisfaction has been linked directly to loyalty and repeat behavior.

Linking Satisfaction and Loyalty

As providers exceed clients' positive expectations, these clients tend to advance along what is called the commitment ladder (White & Schneider, 1999). Those who may begin as customers (one-time users) may eventually be transformed into advocates (those who actively promote the organization). The positive word-of-mouth communication they spread enhances the credibility and reputation of the leisure program and provider. Reichheld (1996) suggests that this is some of the many advantages to be gained by satisfying clients. Loyal clients costs reduce acquisition costs because fewer clients need to be enticed into programs, Further, loyalty increases base profits because loyal clients tend to increase involvement over time (Howat, Murray & Crilley, 1999). Like White and Schneider, Reichheld found that positive word of mouth communications seem to increase with loyalty. Consequently, loyal clients are more likely to attract fledgling program participants to the benefit of all. Loyalty really is the gift that keeps on giving (Backman & Crompton, 1989).

Loyalty certainly beats the alternative. Without loyalty, clients abandon leisure programs. For the private sector, lost clients represent lost profit. Reichheld (1996) estimates that such loss (that which he calls disloyalty) stunts corporate performance by 25% to 50%. For the public sector, client loss represents failure; failure to provide for the wants expressed by user groups. Both sectors seek retention because it ensures that participants will continue to benefit from their involvement in leisure activities. Clearly, all service providers prefer loyal clients.

Creating Loyalty and Satisfaction Through Relationships

Recent research is offering some rather important insights regarding how satisfaction might be created and loyalty developed. In their book, The Discipline of Market Leaders Treacy and Wiersema (1995) speculate that clients generally seek one or more of these three sources of value: (1) operational excellence (activities that create low price levels, reliable service and user friendly programs and procedures), (2) product leadership (innovative, safe and good quality program offerings) and (3) customer intimacy (a focus on solutions rather than programs). I mention all three here because they form a potent package to any service provider. However, the focus here is on the third source of value, that of customer intimacy. Treacy and Wiersema may be on to something. It seems that many clients build their loyalty, not to a program or agency but to individual staff members (Gwinner, Gremier & Bitner, 1998).

The service literature is beginning to explore the importance of relationships between staff and clients in creating satisfaction. Where previously, programmers had focussed on simply managing programs, they are now beginning to focus on developing relationships (Gwinner et al., 1998). Otherwise, clients will consume programs like fast food. They become opportunistic looking for the most convenient program or the least expensive alternative. Neither are particularly satisfying for either the provider or the consumer so we all lose when this becomes the case.

There are many benefits that arise from developing strong client relationships (Gwinner et al., 1998). One of the first relates to knowledge. As the provider learns more of the client, staff are better able to develop solutions for that client. The second benefit is very human in nature. Relationships with staff members help clients evaluate program quality. Leisure services are intangible. They represent an act or a deed and this act is often difficult to assess before, during or after the actual leisure encounter (Parasuraman & Berry, 1991). As a result, clients typically use the relationship they have developed with staff members as a measure of program quality. If staff were pleasant, attentive and knowledgeable, it is likely the program will be considered as satisfactory.

Relationship development has become so important that Berry and Parasuraman (1991) liken marketing to a two act play. The first act is that of attracting the client. The second act is that of developing a relationship with that individual. Unfortunately, or fortunately as the case may be, these relationships require a great deal from leisure agency staff. Staff are expected to be pleasant, attentive and knowledgeable in situation after situation with client after client over the days, weeks and months and it becomes pretty demanding. Staff must be willing to go above and beyond the call of duty so that positive relationships can be developed. The literature calls this willingness to help out "organizational citizenship behavior" (Penner, Midili & Kegelmeyer, 1997).

The management literature makes it clear that organizational citizenship behavior is very much a function of supervisory style. In other words, staff will treat clients as they themselves are treated by supervisors. Staff groups characterized by team cohesion (Wayne, Shore & Liden, 1997), staff satisfaction (resulting from leader fairness and supportiveness) (Organ & Ryan, 1995), and mutual trust (between staff and managers) (Mishra & Mishra, 1994) tend to be more willing to undertake organizational citizenship behavior than do those lacking these characteristics. This suggests a link between satisfied staff members and satisfied clients.

Concluding Comments

What does all this tell the leisure provider? First, it suggests the importance of expectations in creating satisfaction. Though these expectations ebb and flow with the experience and requirements of your clients, they can be influenced by your own communication efforts. Second, it seems that it is not enough to simply meet expectations. The service industry now seeks to "WOW" clients by exceeding the expectations of those they hope to serve. The reward for this effort may be loyalty and all the good things that come from it. Third, the key to ongoing satisfaction seems to hinge on relationships between agency staff and the client. Finally, such relationships are best developed through the ongoing efforts of staff. Staff members must be willing to respond to the requirements of their many clients. Such willingness arises, not from staff alone, but from the atmosphere established by supervisors and managers. If you hope to satisfy your clients, you should begin by improving relations among your own staff. Managers who wonder how best to encourage organizational citizenship behavior should begin with their own efforts. Satisfied clients are created by satisfied staff.

References

Backman, S., & Crompton, J. (1989). Discriminating between continuers and discontinuers of two public leisure services. Journal of Park and Recreation Administration, 7(4), 56-71.

Berry, L. (1995). On great service. New York: The Free Press.

Berry, L & Parasuraman, A. (1991). Marketing services: Competing through quality. New York: The Free Press.

Gwinner, K., Gremier, D. & Bitner, M. (1998). Relational benefits in services industries: The customer's perspective. Journal of the Academy of Marketing Science, 26(2): 101-114.

Howat, G., Murray, D. & Crilley, G. (1999). The relationship between service problems and perseptions of service quality, satisfaction and behavioral intentions of Australian public sports and leisure center customers. Journal of Park & Recreation Administration, 17(2): 42-64.

Oliver, R. (1993). Cognitive, affective and attribute bases of the satisfaction response. Journal of Consumer Research, 20:418-430.

Oliver, R., Rust, R. & Varki, S.(1997). Customer delight: foundations, findings, and managerial insight. Journal of Retailing, 73(3), 311-336.

Organ, D, & Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior. Personnel Psychology, 48: 775-802.

Penner, L. A., Midili, A. R., & Kegelmeyer, J. (1997). Beyond job attitudes: A personality and social psychology perspective on the causes of organizational citizenship behaviour. Human Performance, 10(2), 111131.

Reichheld, F. (1996). The loyalty effect: The hidden force behind growth, profits, and lasting value. Boston: Harvard Business School Press.

Treacy, M. & Wiersema, E (1995). The discipline of market leaders. Reading, Massachusetts: Addison-Wesley Publishing Company.

Wayne, S. J., Shore, L. M., & Liden, R. C. (1997). Perceived organizational support and leadermember exchange: A social exchange perspective. Academy of Management Journal, 40(1), 82111.

White, S. & Schneider, B. (2000). Climbing the commitment ladder: The role of expectations disconfirmation. Journal of Service Research, 2(3): 240-253.

Dr. Ron McCarville teaches management, marketing and quality assurance in the Department of Recreation & Leisure Studies at the University of Waterloo, Waterloo Ontario, Canada. His research interests include pricing, sponsorship and customer service.

Research Update is edited by Dr. Irma O'Dell of Southern Illinois University at Carbondale and Kim L. Siegenthaler, Ph.D. of Appalachian State University.