Customer satisfaction
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The document discusses key concepts related to customer satisfaction and service. It defines customers as those who use, purchase, or influence a product or service. There are internal and external customers. Customer satisfaction is achieved when a company's offer matches customer needs. Key drivers of customer satisfaction are performance, features, service, warranty, price, and reputation. Poor service is the primary reason customers leave, followed by better prices and product dissatisfaction.
Customer satisfaction
- 2. Who is the customer? One who uses the product or service, the one who purchases the product or service or the one who influences the product or service. Two types of customers: Internal customers External customers
- 3. Customer satisfaction Model: (Teboul Model) Company offer Customer needs (product or service) Customer satisfaction Needs not fulfilled Total satisfaction is achieved when offer matches the need i.e. circle is superimposed on the square
- 4. Customer perception of quality: An American Society for quality (ASQ) survey on customer perception about quality of product or service shows the following ranking. 1. Performance 2. Features 3. Service 4. Warranty 5. Price 6. Reputation
- 5. Service organizations and customer satisfaction • Difficult but not impossible • Determine key performance indicators • Set Targets – SMART goals • Make teams • Analyze them on weekly basis • Standardize • Sustain
- 6. Why customers leave? Others, 9% Better prices elsewhere, 9% Product dissatisfaction, Poor service 69% 13%
- 7. Categories of customers: Angry customers Demanding customers Passive customers
- 8. Difference between ……… Good service Bad service Excellent service
- 9. Good Customer Service Good service is when the customer gets treatment that meets his/her expectations. Customer What Customer Expectation receives
- 10. Bad Customer Service Bad Service is when customer gets treatment which is less than his/her expectations Customer What Customer Expectation receives
- 11. Excellent Customer Service When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service + Customer What Customer Expectation receives
- 12. Kano Model: (Dr.Nariaki Kano) Kano model distinguishes between three types of product or service requirements which influence customer satisfaction in different ways when met. 1. Basic attributes 2. Performance attributes 3. Excitement attributes
- 13. Delighters 0% 100%
- 14. 1. Basic Needs – Dissatisfiers A dissatisfiers is a product or service characteristics that the customer takes for granted. Absence of basic attributes results in extreme customer dissatisfaction. Customer complaints are the primary source of information on existing dissatisfiers in our current product or service.
- 15. 2. Performance Needs – Satisfiers A satisfier is something that customer want in their product or service, and usually ask for it. Better the performance more will be the customer satisfaction. They are easy to measure and they become the benchmarks used for competitive analysis.
- 16. 3. Excitement Needs – Delighters A delighter is unspoken or unexpected requirement of a customer and can result into high level of customer satisfaction. Delighters are sometimes called exciting quality. Absence of delighter doesn’t result into customer dissatisfaction while its presence can help in enhancing customer satisfaction.
- 17. Customer Characteristics: 1. Innovators o Representing about 3 % of the market o They are the first to adopt an innovation o Young, high social status, good financial shape, broad social relationship o Rely on non personal sources of info. Such as advertisement.
- 18. 2. Early adopters: o Comprising about 13 % of the market o They purchase a new product or service after innovators but sooner than other consumers o High social status o Sales people are used as info. sources 3. Early Majority: o Comprising about 34 % of the market o This group is above average in social & economic measures o Rely on ads, sales person & contact with early adopters
- 19. 4. Late Majority : o Representing about 34 % of the market o Adopt an innovation to save money or in response to social pressure from their peers o Rely on members of the early & late majorities as source of info. 5. Laggards: o Comprising about 16 % of the market o Last to adopt an innovation o Older & usually are at the low end of the social & economic scales
Editor's Notes
- #2: Customer satisfaction is a part of qualitative pillar of TQM. It is dynamic in nature and is subjective concept because it varies from person to person. Customer satisfaction has become one of the most integral or essential part of any business. In today's market, companies look at it as their business strategies or as their business requirement. In this lecture we will study some basic concepts of customer satisfaction and different methodologies that have been evolved over a period of time.