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CUSTOMER SATISFACTION

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Naeem Tahir
Naeem Tahir

The document discusses various methods for measuring customer satisfaction. It states that customer satisfaction is multifaceted and should be measured individually to get an accurate picture. It identifies different types of customers, both internal and external. Several common methods for collecting customer feedback are described, such as comment cards, surveys, focus groups, and complaint collection. Key factors that influence customer purchasing decisions are identified as performance, features, service, warranty, price, and reputation. The document emphasizes that customer complaints should be viewed positively as an opportunity for improvement rather than a negative.

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CUSTOMER SATISFACTION
CUSTOMER SATISFACTION
The most important asset of any organization is its customers Satisfied customers pay their bills promptly which greatly improves cash flow the lifeblood of any organization
CUSTOMERS EXPERIENCE OF A PRODUCT OR A SERVICE IS MULTIFACETED SO HARD TO DETERMINE IT NEEDS TO BE MEASURED INDIVIDUALLY TO GET AN ACCURATE TOTAL PICTURE OF CUSTOMER SATISFACTION
Customer satisfaction should not be viewed in a vacuum. For example, a customer may be satisfied with a product or service and therefore rate the product or service highly in a survey and yet same customer may buy another product.
Similarly customers view about a product or service are useless if customers view about competitors products are not understood.
The value customers places on the product compared to another may be a better indication of customer loyalty.
External Customer Internal Customer TYPES OF CUSTOMER
ASQ SURVEY SHOWS THAT IMPORTANT FACTORS THAT INFLUENCE PURCHASING ARE 1. PERFORMANCE 2. FEATURES 3. SERVICE 4. WARRANTY 5. PRICE 6. REPUTATION
Comment Card. Customer Questionnaire. Focus Groups. Toll Free Telephone No. Customer Visits. Report Card. Internet & Computer. Employee Feedback. Customer complaints
COMMENT CARD CAN BE ATTACHED TO THE WARRANTY CARD & INCLUDED WITH THE PRODUCT AT THE TIME OF THE PURCHASE INTENT OF THIS CARD IS TO GET SIMPLE INFORMATION SUCH AS NAME , AGE, ADDRESS, OCCUPATION & WHAT MADE THE CUSTOMER BUY THAT PRODUCT
FOR CUSTOMER THERE IS LITTLE OR NO INCENTIVE TO COMMENT CUSTOMERS DO RESPOND WHEN THERE IS SOMETHING VERY GOOD OR VERY BAD USED IN HOSPITALITY INDUSTRY(HOTELS, RESTAURANTS)
POPULAR TOOL FOR OBTAINING OPINION & PERCEPTIONS ABOUT AN ORG./PRODUCT/SVS COSTLY & TIME CONSUMING MOST SURVEYS ASK THE CUSTOMER TO GRADE THE QUESTION ON A 1-5 OR 1-10 LIKERT SCALE
COMMUNICATION SKILLS 5 4 3 2 1 GRIP ON THE SUBJECT 5 4 3 2 1 ANSWER TO THE QUESTIONS 5 4 3 2 1 WHOLE CLASS PARTICIPATION 5 4 3 2 1 DO U FEEL ANY VALUE ADDITION 5 4 3 2 1 AFTER HIS CLASS DO U GO HOME SATISFIED AFTER 5 4 3 2 1 ATTENDING HIS LECTURE PARAMETER HIGHLY SATISFIED NEUTRAL HIGHLY DISSATIS TEACHING METHODOLOGY OF MUHAMAD ASIF
DOES NOT TELL ABOUT THE IMPORTANCE OF INDIVIDUAL QUESTION RELATIVE TO OTHERS NOR DOES IT TELL WHAT CUSTOMERS EXPECT FROM ORGANIZATION RESULTS ARE NOT REPRESENTATIVE OF THE NORMAL POPULATION THOSE WHO FEEL VERY GOOD OR VERY BAD RESPOND ONLY
1. CLIENTS & CUSTOMERS ARE NOT SAME 2. SURVEY RAISE CUSTOMER EXPECTATION 3. HOW U ASK A QUESTION WILL DETERMINE HOW THE QUAESTION IS ANSWERED 4. THE MORE SPECIFIC THE QUESTION, THE BETTER THE ANSWER
5. U HAVE ONLY ONE CHANCE & 15 MIN. ( max. time a customer will give to respond a survey) 6. MORE TIME U SPEND IN SURVEY DEVELOPMENT, LESS TIME U GET IN DATA ANALYSIS & INTERPRETATION 7. WHOME U ASK IS AS IMPORTANT AS WHAT U ASK 8. BEFORE DATA ARE COLLECTED , U SHOULD KNOW HOW U WANT TO ANALYSE & USE THE DATA
POPULAR WAY TO OBTAIN FEEDBACK SURVEYING A FOCUS GROUP IS A RESEARCH METHOD USED TO FIND OUT WHAT CUSTOMERS ARE REALLY EXPECTING GROUP OF CUSTOMERS IS ASSSEMBLED IN THE MEETING ROOM TO COLLECT INFORMATION CAREFULLY PREPARED ANSWERS R ASKED BY SKILLED MODEARTOR WHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTS PERCEPTIONS & COMMENTS PEOPLE SELECTED HAVE THE SAME PROFILE AS THE EXPECTED CUSTOMER FOCUS GROUPS R SOMETIMES USED WITHIN TE ORGANIZATION TO ADDRESS INTERNAL ISSUES
IMPRINT ANALYSIS IS AN EMERGING TECHNIQUE USED IN THE FOCUS GROUPS GOOD WAY TO OBTAIN INTRINSIC FEELING ABOUT THE PRODUCT/SERVICE FEELING R NOT EASILY OBTAINED FROM THE CUSTOMERS CUSTOMERS OFTEN HOLDBACK INFORMATIONS ON SURVEY
WORD ASSOCIATION, DISCUSSIONS & RELAXATION TECHNIQUES CAN IDENTIFY A CUSTOMERS EMERGING NEEDS IMPRINT ANALYSIS HELPS TO UNDERSTAND THE HUMAN EMOTIONS INVOLVED IN THE PURCHASE DECISION
EFFECTIVE TECHNIQUE FOR COMPLAINT FEEDBACK ORGANIZATION CAN RESPOND FASTER & CHEAPLY TO THE COMPLAINTS
VISIT TO A CUSTOMERS PLACE OF BUSINESS IS AN EFFECTIVE WAY TO GATHER INFORMATION ACCURATE INFORMATION OBTAINED PEOPLE CAN SEE FIRST HAND HOW THE PRODUCT IS PERFORMING
REPORT CARD THE INTERNET & THE COMPUTER
CUSTOMER SATISFACTION
EMPLOYEES ARE UNTAPPED SOURCE OF INFORMATIONS CONVENTIONALLY COMPANIES LISTEN MORE TO THE EXTERNAL CUSTOMERS & LESS TO THE INTERNAL CUSTOMER EMPLOYEES USUALLY PROVIDE DEEPER INSIGHT INTO CONDITIOINS
CUSTOMERS RESAERCH REVEALS WHAT IS HAPPENING EMLOYEES REASEARCH REVEALS WHY IT IS HAPPENING IT SHOULD BE REGULARLY SOLICITED RATHER THAN CHECKING THE WOODEN BOX ANNUALLY
THE FEEDBACK OBTAINED IN ALL ABOVE CASES IS PROACTIVE CUSTOMER COMPLAINT IS REACTIVE BUT VERY USEFUL ASQ SURVEY REVEALS THAT ABOUT 1. 1.5% COMPLAINTS REACH TOP MANAGEMENT 2. 20% TO FRONT LINE PERSONNEL 3. 80% DONT REPORT
IT INDICATES THAT IT IS EASY FOR THE TOP MANGMNT TO PERCEIVE THAT EVERY THING IS OK WHEN SATISFIED CUSTOMERS R INCLUDED IN THE DATA, NO. OF COMPLAINTS TO MANGMNT IS LOWER THAN 1.5% FREQUENTLY DISSATISFIED CUSTOMERS DONT SAY ANYTHING & QUIETLY SWITCH OVER TO COMPETITOR
THOSE WHO DONT COMPLAIN R THE ONE WHO SHOULD WORRY THE ORGANIZATION MOST BY TAKING THE POSITIVE APPROACH TO THE COMPLAINTS IT IS POSSIBLE TO IMPROVE THE PRODUCTS/SERVICES IN FACT COMPLAINTS GIVE THE ORGANIZATION A SECOND CHANCE
ONCE YOU HAVE IDENTIFIED THE COMPLAINTS/ PROBLEMS NOW TURN TO ELIMINATION. INCORPORATE CUSTOMER VOICE INTO PRODUCT/ SERVICE
GIVE CUSTOMER EXACTLY WHAT CUSTOMER WANTS
IN THE OUTSET, PRICE TAG ON SUCH PRODUCTS WAS PROHIBITIVE, BUT M.C PROVIDES THIS AT AFFORDABLE PRICE M.C IS RESULT OF FLEXIBLE MANUFACTURING SYSTEM(FMS),JIT,& CYCLE TIME REDUCTION
IN AUTOMOBILES IT IS SINCE MANY YEARS CUSTOMER MAY DETERMINE WHAT TYPE OF SEAT COVERINGS, COLOUR & STEREO SYSYTEM THEY WANT COMPUTER MFRs & ASSEMBLERS DO IT
Modular design Delayed differentiation
Is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: Easier diagnosis and remedy of failures Easier repair and replacement Simplification of manufacturing and assembly DISADVANTAGE: Variety Decreases
Delayed differentiation is a postponement tactic Producing but not quite completing a product or service until customer preferences or specifications are known
CUSTOMER SATISFACTION
Desig n Mf g New Product
Concurrent engineering is bringing together marketing, engineering, manufacturing, purchasing, service, packaging, etc. people early in the design phase.
Design that results in products or services that can function over a broad range of conditions ROBUST DESIGN
NORMAL REQUIREMENTS Are typically what one gets by just asking customers what they want. EXPECTED REQUIREMENTS Are the obvious / compulsory requirements. For example, if meal is served hot, customers barely notice it. If it's cold or too hot, dissatisfaction occurs. Expected requirements must be fulfilled. EXCITING REQUIREMENTS Beyond the customer's expectations. If provided , customer would be excited If not ,they would hardly complain
NORMAL REQUIREMENTS MORE IS BETTER EXPECTED REQUIREMENTS MUST BE EXCITING REQUIREMENTS DELIGHTENING,EXCITING, WOW FACTOR
+ +- - Satisfaction Dissatisfaction Service Dysfunctions Service Fully Functions EXCITERS Must Be MORE IS BETTER Less satisfied when the product or service is less functional, but cannot increase satisfaction substantially if operational - "up-time" If the requirement is absent it does not cause dissatisfaction, but it will delight clients if present - "camera options" The more requirements are met the more one is satisfied KANOS MODEL
QUESTIONS?
THANK YOU FORTHANK YOU FOR YOURYOUR ATTENTION!ATTENTION!

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CUSTOMER SATISFACTION

  • 3. The most important asset of any organization is its customers Satisfied customers pay their bills promptly which greatly improves cash flow the lifeblood of any organization
  • 4.
  • 5. CUSTOMERS EXPERIENCE OF A PRODUCT OR A SERVICE IS MULTIFACETED SO HARD TO DETERMINE IT NEEDS TO BE MEASURED INDIVIDUALLY TO GET AN ACCURATE TOTAL PICTURE OF CUSTOMER SATISFACTION
  • 6. Customer satisfaction should not be viewed in a vacuum. For example, a customer may be satisfied with a product or service and therefore rate the product or service highly in a survey and yet same customer may buy another product.
  • 7. Similarly customers view about a product or service are useless if customers view about competitors products are not understood.
  • 8. The value customers places on the product compared to another may be a better indication of customer loyalty.
  • 10. ASQ SURVEY SHOWS THAT IMPORTANT FACTORS THAT INFLUENCE PURCHASING ARE 1. PERFORMANCE 2. FEATURES 3. SERVICE 4. WARRANTY 5. PRICE 6. REPUTATION
  • 11. Comment Card. Customer Questionnaire. Focus Groups. Toll Free Telephone No. Customer Visits. Report Card. Internet & Computer. Employee Feedback. Customer complaints
  • 12. COMMENT CARD CAN BE ATTACHED TO THE WARRANTY CARD & INCLUDED WITH THE PRODUCT AT THE TIME OF THE PURCHASE INTENT OF THIS CARD IS TO GET SIMPLE INFORMATION SUCH AS NAME , AGE, ADDRESS, OCCUPATION & WHAT MADE THE CUSTOMER BUY THAT PRODUCT
  • 13. FOR CUSTOMER THERE IS LITTLE OR NO INCENTIVE TO COMMENT CUSTOMERS DO RESPOND WHEN THERE IS SOMETHING VERY GOOD OR VERY BAD USED IN HOSPITALITY INDUSTRY(HOTELS, RESTAURANTS)
  • 14. POPULAR TOOL FOR OBTAINING OPINION & PERCEPTIONS ABOUT AN ORG./PRODUCT/SVS COSTLY & TIME CONSUMING MOST SURVEYS ASK THE CUSTOMER TO GRADE THE QUESTION ON A 1-5 OR 1-10 LIKERT SCALE
  • 15. COMMUNICATION SKILLS 5 4 3 2 1 GRIP ON THE SUBJECT 5 4 3 2 1 ANSWER TO THE QUESTIONS 5 4 3 2 1 WHOLE CLASS PARTICIPATION 5 4 3 2 1 DO U FEEL ANY VALUE ADDITION 5 4 3 2 1 AFTER HIS CLASS DO U GO HOME SATISFIED AFTER 5 4 3 2 1 ATTENDING HIS LECTURE PARAMETER HIGHLY SATISFIED NEUTRAL HIGHLY DISSATIS TEACHING METHODOLOGY OF MUHAMAD ASIF
  • 16. DOES NOT TELL ABOUT THE IMPORTANCE OF INDIVIDUAL QUESTION RELATIVE TO OTHERS NOR DOES IT TELL WHAT CUSTOMERS EXPECT FROM ORGANIZATION RESULTS ARE NOT REPRESENTATIVE OF THE NORMAL POPULATION THOSE WHO FEEL VERY GOOD OR VERY BAD RESPOND ONLY
  • 17. 1. CLIENTS & CUSTOMERS ARE NOT SAME 2. SURVEY RAISE CUSTOMER EXPECTATION 3. HOW U ASK A QUESTION WILL DETERMINE HOW THE QUAESTION IS ANSWERED 4. THE MORE SPECIFIC THE QUESTION, THE BETTER THE ANSWER
  • 18. 5. U HAVE ONLY ONE CHANCE & 15 MIN. ( max. time a customer will give to respond a survey) 6. MORE TIME U SPEND IN SURVEY DEVELOPMENT, LESS TIME U GET IN DATA ANALYSIS & INTERPRETATION 7. WHOME U ASK IS AS IMPORTANT AS WHAT U ASK 8. BEFORE DATA ARE COLLECTED , U SHOULD KNOW HOW U WANT TO ANALYSE & USE THE DATA
  • 19. POPULAR WAY TO OBTAIN FEEDBACK SURVEYING A FOCUS GROUP IS A RESEARCH METHOD USED TO FIND OUT WHAT CUSTOMERS ARE REALLY EXPECTING GROUP OF CUSTOMERS IS ASSSEMBLED IN THE MEETING ROOM TO COLLECT INFORMATION CAREFULLY PREPARED ANSWERS R ASKED BY SKILLED MODEARTOR WHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTS PERCEPTIONS & COMMENTS PEOPLE SELECTED HAVE THE SAME PROFILE AS THE EXPECTED CUSTOMER FOCUS GROUPS R SOMETIMES USED WITHIN TE ORGANIZATION TO ADDRESS INTERNAL ISSUES
  • 20. IMPRINT ANALYSIS IS AN EMERGING TECHNIQUE USED IN THE FOCUS GROUPS GOOD WAY TO OBTAIN INTRINSIC FEELING ABOUT THE PRODUCT/SERVICE FEELING R NOT EASILY OBTAINED FROM THE CUSTOMERS CUSTOMERS OFTEN HOLDBACK INFORMATIONS ON SURVEY
  • 21. WORD ASSOCIATION, DISCUSSIONS & RELAXATION TECHNIQUES CAN IDENTIFY A CUSTOMERS EMERGING NEEDS IMPRINT ANALYSIS HELPS TO UNDERSTAND THE HUMAN EMOTIONS INVOLVED IN THE PURCHASE DECISION
  • 22. EFFECTIVE TECHNIQUE FOR COMPLAINT FEEDBACK ORGANIZATION CAN RESPOND FASTER & CHEAPLY TO THE COMPLAINTS
  • 23. VISIT TO A CUSTOMERS PLACE OF BUSINESS IS AN EFFECTIVE WAY TO GATHER INFORMATION ACCURATE INFORMATION OBTAINED PEOPLE CAN SEE FIRST HAND HOW THE PRODUCT IS PERFORMING
  • 24. REPORT CARD THE INTERNET & THE COMPUTER
  • 26. EMPLOYEES ARE UNTAPPED SOURCE OF INFORMATIONS CONVENTIONALLY COMPANIES LISTEN MORE TO THE EXTERNAL CUSTOMERS & LESS TO THE INTERNAL CUSTOMER EMPLOYEES USUALLY PROVIDE DEEPER INSIGHT INTO CONDITIOINS
  • 27. CUSTOMERS RESAERCH REVEALS WHAT IS HAPPENING EMLOYEES REASEARCH REVEALS WHY IT IS HAPPENING IT SHOULD BE REGULARLY SOLICITED RATHER THAN CHECKING THE WOODEN BOX ANNUALLY
  • 28. THE FEEDBACK OBTAINED IN ALL ABOVE CASES IS PROACTIVE CUSTOMER COMPLAINT IS REACTIVE BUT VERY USEFUL ASQ SURVEY REVEALS THAT ABOUT 1. 1.5% COMPLAINTS REACH TOP MANAGEMENT 2. 20% TO FRONT LINE PERSONNEL 3. 80% DONT REPORT
  • 29. IT INDICATES THAT IT IS EASY FOR THE TOP MANGMNT TO PERCEIVE THAT EVERY THING IS OK WHEN SATISFIED CUSTOMERS R INCLUDED IN THE DATA, NO. OF COMPLAINTS TO MANGMNT IS LOWER THAN 1.5% FREQUENTLY DISSATISFIED CUSTOMERS DONT SAY ANYTHING & QUIETLY SWITCH OVER TO COMPETITOR
  • 30. THOSE WHO DONT COMPLAIN R THE ONE WHO SHOULD WORRY THE ORGANIZATION MOST BY TAKING THE POSITIVE APPROACH TO THE COMPLAINTS IT IS POSSIBLE TO IMPROVE THE PRODUCTS/SERVICES IN FACT COMPLAINTS GIVE THE ORGANIZATION A SECOND CHANCE
  • 31. ONCE YOU HAVE IDENTIFIED THE COMPLAINTS/ PROBLEMS NOW TURN TO ELIMINATION. INCORPORATE CUSTOMER VOICE INTO PRODUCT/ SERVICE
  • 32. GIVE CUSTOMER EXACTLY WHAT CUSTOMER WANTS
  • 33. IN THE OUTSET, PRICE TAG ON SUCH PRODUCTS WAS PROHIBITIVE, BUT M.C PROVIDES THIS AT AFFORDABLE PRICE M.C IS RESULT OF FLEXIBLE MANUFACTURING SYSTEM(FMS),JIT,& CYCLE TIME REDUCTION
  • 34. IN AUTOMOBILES IT IS SINCE MANY YEARS CUSTOMER MAY DETERMINE WHAT TYPE OF SEAT COVERINGS, COLOUR & STEREO SYSYTEM THEY WANT COMPUTER MFRs & ASSEMBLERS DO IT
  • 36. Is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows: Easier diagnosis and remedy of failures Easier repair and replacement Simplification of manufacturing and assembly DISADVANTAGE: Variety Decreases
  • 37. Delayed differentiation is a postponement tactic Producing but not quite completing a product or service until customer preferences or specifications are known
  • 40. Concurrent engineering is bringing together marketing, engineering, manufacturing, purchasing, service, packaging, etc. people early in the design phase.
  • 41. Design that results in products or services that can function over a broad range of conditions ROBUST DESIGN
  • 42. NORMAL REQUIREMENTS Are typically what one gets by just asking customers what they want. EXPECTED REQUIREMENTS Are the obvious / compulsory requirements. For example, if meal is served hot, customers barely notice it. If it's cold or too hot, dissatisfaction occurs. Expected requirements must be fulfilled. EXCITING REQUIREMENTS Beyond the customer's expectations. If provided , customer would be excited If not ,they would hardly complain
  • 43. NORMAL REQUIREMENTS MORE IS BETTER EXPECTED REQUIREMENTS MUST BE EXCITING REQUIREMENTS DELIGHTENING,EXCITING, WOW FACTOR
  • 44. + +- - Satisfaction Dissatisfaction Service Dysfunctions Service Fully Functions EXCITERS Must Be MORE IS BETTER Less satisfied when the product or service is less functional, but cannot increase satisfaction substantially if operational - "up-time" If the requirement is absent it does not cause dissatisfaction, but it will delight clients if present - "camera options" The more requirements are met the more one is satisfied KANOS MODEL
  • 46. THANK YOU FORTHANK YOU FOR YOURYOUR ATTENTION!ATTENTION!