Why Customer Satisfaction is the Most Important Metrics in Project Management?

Here are 20 reasons why customer satisfaction is the most important metric in project management:

  1. Knowledge TrainCustomer Perception of Project Success or Failure Dictates Future Work Opportunities
  2. Closely-Tied to Economic, Financial and Regulatory Fortunes of your Company
  3. It is More Important Than Other Metrics such as Cost, Schedule and Scope because it Reflects a Unique Perspective from Client’s Customers, Partners and Owners
  4. Because a Large Portion of PMOs Budget Expenditures on Surveys that Measure Customer Satisfaction but Are Not Directly Linked to Financial Performance Indicators (KPIs) such as Leads generation, Sales Assignments and Contract Changes
  5. Because Companies Spend Millions on Efforts to Improve their Customer Satisfaction Performance but Do Not Have Single Standard Method of Measuring it
  6. Because Customer Satisfaction is a Precursor Measure Which Predicts the Success or Failure of the Company’s Business Units, All Projects, Programs and Portfolios Managed by That PMO
  7. Because No Project Manager Can Override His/Her Organization Overall Perception about his/her Project based on the Data Collected about Level of Customer Satisfaction Those Customers Have With Projects in that Organization
  8. Because Having Clear Understanding of Your Customer’s Needs Adds Up to 50% to Your Revenues from New Contracts Compared to Projects Where there was No such Work
  9. Because High Levels of Satisfaction Are Associated with Shift From Cost to Fixed Fee Pricing
  10. Because High Levels of Customer Satisfaction are Associated with Increased Number of Projects, Programs and Portfolios Managed by That PMO, Which In Turn Increases the Size of Contracts and Number of Customers Serviced by that PMO
  11. Because there is No Project Manager Who Can Override Data Regarding Degree of Customer Satisfaction Provided by His/Her Own Customers
  12. Because High Levels of Customer Satisfaction Are Linked to Lower Cost Per Project, Program or Portfolio Work Performed for a Specific Client
  13. Because Close Ties With Clients Increase Your Revenues Due to Stronger Competitive Positioning as well as from Additional Multi-Year Contract Extensions that Provide for Start-Up Funds on New Projects
  14. Because More and Better Projects Are Awarded to Companies with High Levels of Customer Satisfaction
  15. Because Greater Degree of Customer Satisfaction is Associated with Higher Project Budget Compared to Projects Where there was Lesser Degree of Satisfaction
  16. Because When Completed on Time, On Budget and With High Quality, High Degree of Customer Satisfaction Should Be the Result in Most Cases So It Was Properly Executed (Otherwise it should be Prioritized as an Exception)
  17. Because Close Ties With Clients Generate New Sales Opportunities Which Overcome Lost Revenue from Cancelled Contracts Which were Previously Supported by On-Going Activities
  18. Because Close Ties With Clients Increase Your Company’s Market Share Leading to Avoidance of Competitors’ Fees
  19. Because Long Term High Levels of Customer Satisfaction May Overcome a Company’s Historically Abnormal Performance in Other Budget Expenditures or Projects Failures
  20. Because High Degree of Customer Satisfaction Is Associated with Greater Opportunities for Growth in Revenue and Market Share Thanks to the Favorable Perception about Your Company

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