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A five-step process can be used to make these longer-term improvements.

Step 1: Spot the gap

• Look at the customer satisfaction data to see where there are low absolute scores and low scores relative to the competition
• Pay particular attention to those issues that are important to customers
• Assume the scores are correct unless there is irrefutable evidence to the contrary – and remember, perceptions are reality

Step 2: Challenge and redefine the segmentation

• How do satisfaction scores vary across different types of customer?
• Are segments correctly defined in the light of the customer satisfaction findings?
• How could a change in segmentation direct the offer more effectively and so achieve higher levels of satisfaction?

Step 3: Challenge and redefine the customer value propositions

• Are customer satisfaction scores low because the customer value proposition (CVP) is not being communicated effectively to the market?
• Are customer satisfaction scores low because the CVP is not being effectively implemented?
• Is the CVP right for the segment? How could a change in CVP achieve a higher customer satisfaction index (CSI)?

Step 4: Create an action plan

• Describe the problem
• Think through the issues that need to be addressed and list them out
• Identify the root cause of the problems
• Identify any barriers that could stop the improvement taking place
  Set measurable targets
• Allocated resources (usually money and people)
• Assign people and time scales to the tasks
• Measure and review progress

Step 5: Measure and review

• How has the customer satisfaction index (CSI) moved?
• Is the movement significant/real?
• Has the action recommended in the plan, taken place? Has it been enough? Has it had enough time to work?
• Revisit the steps – spot the gap, challenge the segmentation and CVP, more action

Many of the issues that affect customer satisfaction span functional boundaries and so organisations must establish cross-functional teams to develop and implement action plans. One of the best ways of achieving this involvement by different groups of employees is to involve them in the whole process.