Will you still love me tomorrow? Here are five myths about customer satisfaction. Once you see these fables debunked, you can start to respond in more realistic ways to customer metrics.

• Author: Teodoru, Sheri
• Position: Customer Satisfaction

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There are a lot of myths about customer satisfaction and how to obtain it. One fable is that you should strive blindly to "satisfy" all of your customers' desires. WRONG. Some retail banks fall into the trap of indiscriminately investing so much to satisfy customers that their efforts actually turn out to be unprofitable.

Granted, banks need to satisfy customers, but they need to do it in a way that is both targeted and profitable. Loyalty, recommendation, share of wallet--all of these things matter, and all are critical elements of a comprehensive customer satisfaction measurement program. Banks often know the loan and mortgage rates being offered by their competitors, but they don't know much about the subtleties of improving customer satisfaction to:

* Secure new business.

* Create ongoing customer relationships.

* Benefit from word-of-mouth.

What impacts do interest rates, closing fees, banking relationships, convenience and agent personnel have on customer satisfaction, and ultimately on a bank's financial performance? Can a bank prioritize improvement initiatives in the most effective manner based on a laundry list of desired changes reported by the customer? Assessing customer satisfaction in the right way--in a precise, accurate and actionable manner--can answer these questions. Below are some common myths about customer satisfaction and an explanation as to why these fables are false. Debunking customer satisfaction myths and uncovering the realities can be a step toward improving the bottom line.

Myth #1:

Customer satisfaction always should be maximized and expectations exceeded.

Banks need to optimize customer satisfaction, not maximize it. Customer expectations should certainly be met--but not necessarily exceeded. It is commendable if a bank exceeds its customers' expectations, but too often, companies try to do so at a great cost to profitability--without even realizing it.

For many banks, one of the most frequent points of interaction between the company and the customer is through the branch office. The branch office experience can be both a point of frustration for the customer and point of opportunity for the bank, but the key to profitability is finding the sweet spot where customer expectations and service delivery converge. Minimizing teller wait time may require extensive investment in new facilities and additional staff, so it's crucial to determine before adding those significant costs to...