Why is customer satisfaction so important? How much attention is paid to this notion in Georgia? How is customer satisfaction measured? In the modern world, all successful companies attach special attention to the differentiation of customer satisfaction. In addition, inquiries of different purposes are created in order to obtain the feedback from consumers, direct and indirect methods are processed.

In order to ascertain the exact information about customers’ viewpoints on a certain company, special plans are produced. The accuracy of the given information is so important to the companies that new strategies and methods are designed every day in order to get a more certain and stable feedback. Thus, often such tactics and strategies are utilized that the clients are not aware of the fact that they are taking part in inquiries. Moreover, they don’t even realize that questions are asked about the purchased products or services.

The aforementioned approach, in turn, guarantees a higher degree of accuracy. Yet, why is customer satisfaction evaluation so important? What positive outcomes can be reached by measuring customer satisfaction? First, one of the key factors in marketing is to understand what your consumers want and how to target them. The reason is obvious and simple: if you clearly understand what customers want and what they are ready to pay for their needs, it is easier to create an appropriate product. As a result of the aforementioned, you will have satisfied clients which will result in commercial gain.

Today, gaining profit is the main goal for almost all companies. As for satisfied customers, it is a double gain – an unwritten law in modern business world and commerce. Correctly ‘measured’ customer satisfaction is one of the best indicators of a consumer’s loyalty and how likely a customer will make a purchase in the future. Rating customer satisfaction on a scale of 1-10 is already a trustworthy method: a customer that gives a rating of 7 and above can be considered as satisfied, and you can expect him/her to utilize your services again.

If a customer gives you a rating of 9 or 10 it is an obvious sign that he/she will give advice to other customers to purchase your products. Scores of 6 and below are warning signs that a consumer is unsatisfied and at risk of leaving. In such case, actions are required. For example: these customers need to be put on a consumer watch list and observed in order to ascertain why their satisfaction is so low. Today, it is hard to name a business which is not present at market.

In the competitive market, where the same marketing activities are used (for instance, the same advertising campaigns, the same expenses on marketing and PR strategies), what will make a consumer to choose one company over the other? Of course, in this case, customer satisfaction plays the key role in making choice. Positive customer experiences lead to such decisions. ‘Measurement’ of customer satisfaction will protect our product from denial.

According to the Global Customer Satisfaction Report (2008), service quality (not the price) is the main reason why consumers leave a company. Therefore, in order to create a balanced strategy of both quality and price, it is extremely important to identify the aforementioned indicator. Last but not least, it is a fact that the detainment of old consumers requires less expense than attracting new ones. When you clearly understand consumer needs, it is not difficult to retain them.

Of course, it is true that different types of companies, providing various products and services, are present at market. All the same, there are some mutual factors for all businesses that create an overall picture from that viewpoint:

  • Clients’ general satisfaction with product;
  • Satisfaction with costs; Satisfaction with quality;
  • Satisfaction with services provided by a company.

At a glance, it may seem pretty easy to fulfill all the above-mentioned requirements. However, even gigantic companies find difficult the following factors: customer psychology, daily monitoring of customer satisfaction and needs, further measures for increasing customer satisfaction, and detainment of positive customer experiences. It is a rather complex intellectual work, which, in turn, requires both mental and material costs. Expenses must be accurately calculated.

Accordingly, the company that works on service quality and customer satisfaction and achieves success in that direction should be proud of its achievements. However, it is noteworthy that customer satisfaction is only one of many criteria according to which an organization’s successful operation is measured.


IFC-s Georgian Plans and Expectations

Georgia is an example of IFC’s successful work. The organization works in the country from 1995 and since then, we have provided about $1.2 billion in long-term financing, of which $373 million was mobilized from partners, in 55 projects in financial services, agribusiness, manufacturing, and infrastructure. In addition, IFC has supported around $315 million in trade through its trade finance program, and implemented a number of advisory projects
focused on developing the private sector.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. The private sector is the main driving force of economic growth.  Clients of the organization are private companies and banks. Majority of jobs are in the private sector, not only in Georgia, but in many countries, and IFC supports its development in order to contribute to economic growth.

The article in Business Georgia new magazine provides even more informaion about investment and advisory activities of IFC.

European Bank Supports with 50 Million USD to Enterprise Development in Georgia

Within the frame of the EU financial and technical assistance, the European Bank for Reconstruction and Development (EBRD) will allocate 50 million USD to support enterprise development in Georgia. The EBRD and the Bank of Georgia signed the relevant Agreement on 27 May, at the Ministry of Economy and Sustainable Development of Georgia. The Bank of Georgia Deputy Director General, Levan Kulijanashvili and Bruno Balvanera, the EBRD Director for Caucasus, Moldova and Belarus signed the Agreement.
The Agreement was signed within the European Commission DCFTA supporting program (DCFTA Facility), which aims to strengthen support for small and medium businesses in Georgia, Ukraine and Moldova in terms of adaptation with the DCFTA-requirements. European Union and the European Bank for Reconstruction and Development signed an agreement on allocating the 380 million euros by the EBRD to the local partner banks of the three states that will further issue loans for local businesses.
The EU, on its turn, will provide additional 19 million Euros for technical assistance, investment promotion and risk sharing.

The EU and the EBRD joint decision will allow the local SMEs to meet the EU standards and fully enjoy the opportunities that the DCFTA offers to business.
Source: Ministry of Economy and Sustainable Development of Georgia