Customer satisfaction

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Submitted To:
Sir. Riaz Ahmed
Mian

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Submitted by:
Rabia Anam

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ACKNOWLEDGEMENT
That Allah is the main source of knowledge and wisdom. No doubt, he is
omnipotent as well as omniscient. We are thankful to our Almighty
Allah for blessing us courage and strength to complete our report. We
are very thankful to our respected SIR RIAZ AHMAD MIAN whose
cooperation on every step of this demanding task is highly appreciable.
In the last but not least, we pay our deepest respect and gratitude to our
dear Parents whose love and affection made us able to perform this task
successfully.

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TABLE OF CONTENTS
INTRODUCTION……………………………………………………………..7
Why Organization focus on customer satisfaction?......................................7
DEFINITION OF CUSTOMERS…………………………………………...7
TYPES OF CUSTOMERS………………………………………………...7
CUSTOMER EXPECTATIONS……………………………………………...8
DEFINITION OF SATISFACTION………………………………………….9
DEFINITION OF CUSTOMER SATISFACTION…………………………..9
Meaning of customer satisfaction………………………………………….10
PURPOSE OF CUSTOMER SATISFACTION……………………………..11
HOW TO REDUCE CUSTOMER COMPLAINS…………………………..12
MODEL of customer satisfaction…………………………………………….14
AGENDA of customer satisfaction…………………………………………..15
Ways to measure customer satisfaction……………………………………...15
1. Survey Customers…………………………………………………….15
2. Understand Expectations……………………………………………..15
3. Find out Where You’re Failing……………………………………….16
4. Pinpoints Specifics…………………………………………………….16
5. Assess the Competitions………………………………………………16
Importance of Customer Satisfaction…………………………………………17
LEADING INDICATORS…………………………………………………....17
POINT OF DIFFERENTIATION…………………………………………18
CUSTOMER CHURN…………………………………………………….18
CUSTOMER LIFE TIME VALUE………………………………………19
REDUCE NEGITIVE WORD OF MOUTH…………………………....19
FACTORS AFFECTING CUSTOMER SATISFACTION…………………..19
Price…………………………………………………………………………..20

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Quality……………………………………………………………………..20
Attitude with customers…………………………………………………...21
Features…………………………………………………………………….21
Access………………………………………………………………………21
LEVELS OF CUSTOMER SATISFACTION……………………………...22
Exceed Customer expectations………………………………………….22
Delight your customers…………………………………………………..23
KANO MODEL………………………………………………………………24
Basic attributes………………………………………………………………24
Performance attributes………………………………………………………24
Excitement attributes………………………………………………………..24
Customer perception of quality………………………………………………26
Performance…………………………………………………………………26
Warranty…………………………………………………………………….26
Reputation………………………………………………………………….26
Principles of customer quality service………………………………………..26
Customer service costs real money…………………………………………...26
Good processand productdesign is important………………………………..27
Customer service must be consistent………………………………………….27
CUSTOMER SERVICE…………………………………………………………29
What is a good customer service........................................................................29
Intangibility…………………………………………………………………..29
Coexistence……………………………………………………………………30
Creativity………………………………………………………………………31
ADVANTAGES OF CUSTOMER SATISFACTION……………………………31
Up-to-date feedback…………………………………………………………….31

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Show that you care……………………………………………………………..32
Listening………………………………………………………………………..32
Retention………………………………………………………………………..32
DISADVANTAGES OF CUSTOMER SATISFACTION ………………………33
Privacy issues………………………………………………………………….34
Anonymity Issues……………………………………………………………...34
6 PROVEN METHODS FOR MEASURING CUSTOMER SATISFACTION…34
Customer Satisfaction Surveys ………………………………………………...35
Customer satisfaction Score……………………………………………………36
Customer Effort Scores……………………………………………………......37
Social Media Monitoring………………………………………………………38
6Things gone wrong…………………………………………………………...39
5 Reasons Customer Leave……………………………………………………….40
9 Ways to keep them……………………………………………………………...40
HOW TO IMPROVE CUSTOMR SATISFACTION……………………………41
Focus on measuring Customer satisfaction……………………………………...42
Set customer expectations early…………………………………………………43
Stats don’tlie, understand the importance of customer satisfaction…………….44
CONCLUSION…………………………………………………………………...45

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INTRODUCTION:
Why organizations focus on customer satisfaction?
Businesses monitor customer satisfaction in order to determine how to increase
their customer base, customer loyalty, revenue, profits, market share and survival.
Although greater profit is the primary driver, exemplary businesses focus on the
customer his / her experience with the organization. They work to make their
customers happy and see customer satisfaction as the key to survival and profit.
Customer satisfaction in turn hinges on the quality and effects of their experiences
and the goods or services they receive.
Definition of Customer:
A party that receives or consumes products (goods or services) and has the ability
to choose between different products and suppliers. One who uses the product and
services, the one who purchases the product or service or the one who influences
the product or services.
Types of customers:
 Internal customer
 External customer

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Internal customers:
Internal customers are usually stakeholders, employees, or shareholders, but
the definition also encompasses creditors and external regulators.
Example:
 Co-workers, everyone you depend upon, and people who use the output
from your work.
External customers:
External customers are said to be those people that actually buy your company's
products or services.
Example:
 Clients
 Guests
 Patients
The external customer is
someone who signs a check, pay
our employer, and ultimately
makes our paycheck possible.
“Internal 'customers' are said to be the people
in your company or perhaps a partner that
you provide your services too in order to
deliver your company's products or
services.”

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Customer’s expectations
Excellent customer service and high customer satisfaction must start with
understanding customer expectations. You need to know who your customers are
and what they want. When measuring customer satisfaction, companies
generally ask customers whether their product or service has met or exceeded
expectations. This is an important question to ask and is a key factor behind
satisfaction.
When customers have high expectations and the reality fall short, they will be
disappointed and will likely rate their experience as less than satisfying. For this
reason, luxury resort, for example, might receive a lower satisfaction rating than a
budget motel—even though its facilities and service would be deemed superior in
‘absolute’ terms.” – Marketing Metrics
Customer expectations set the bar for customer satisfaction which also affects
repurchase decisions and customer loyalty. If a customer feels like you did not
deliver a service that was expected, they won’t come back and buy from you again.
On the flip-side, if you deliver a service that exceeds customer expectations, you
can bet they will come back to buy again, and tell all their friends about the
experience. One of my favorite quotes about customer expectations is from Roy
Hollister Williams, a best-selling author and marketing consultant best known for
his Wizard of Ads trilogy.
“The first step in exceeding your customer’s expectations is to know those
expectations.” – Roy Hollister Williams.

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Definition of satisfaction
“A happy or pleased feeling because of something that you did or something that
happened to you.”
“The act of or voiding what is needed or desired: the act of satisfying a need or
desire.”
Examples:
 He gets great satisfaction from volunteering.
 The satisfaction of a job well done.
Meaning:
 It is a measure of how products and services supplied by a company meet or
surpass the customer’s expectations.
 Customer expectation is the needs, wants, and preconceived ideas of a
customer about a product or a service.
 If customer expectations are met then the customer is satisfied.
Customer satisfaction
“Getting what you want by giving others what they want.”
EXAMPLE:
According to the LIC Packaging Italian Company, part of an International Group,
that designs, Industrialises and manufacfures, the customer satisfaction is at the
center of our world is,
“Customer satisfaction is a marketing term that
measures how products or services supplied by
a company meet or surpass a customer’s
expectation.”

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Purpose of Customer satisfaction
 Customer is the boss of the market.
 Customer dictates market trends and direction.
 The organization is dependent on the customer and
not the other way round.
 Customer satisfaction means loyalty towards the organization.
 The satisfied customers will help in bringing the new customers by the
“word of mouth”.
One customer well taken care of could be more valuable than $10,000 worth of
advertising.

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Happy customers:
The easiest and most powerful way to increase customer loyalty is really
very simple. Make your customer happy. In the Internet age, anyone can broadcast
his opinions through blogs, websites and email.
Unhappy customers:
Be thankful for customers who complain. You still have the opportunity to
make them happy.
According to Bill Gates:
“Your most unhappy customers are your greatest source of learning.”
How to reduce customer complains
Customer complaints are a major issue for any business and must be effectively
handled in order to protect business reputation, ensure repeat custom and prevent
negative press coverage or word of mouth.
Fortunately there is a range of helpful tips that can implemented to reduce
complaints and ensure that customers complete transactions feeling happy,
satisfied and ready to return.

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1. Use advanced technology to keep on top of safety issues:
One of the most effective ways a business can reduce customer complaints is to
arm itself with high powered software that ensures safety standards and quality
control is kept up to date at all times. This eliminates any potential problems before
they emerge as grounds for customer dissatisfaction.
Implementing comprehensive management software such as QADEX offers a
simple dashboard on which to oversee all aspects of food safety, quality
management, compliance, customers and new product development.
The Customer Complaints module gives business owners and managers complete
control over the grievance process, allowing users to easily log complaints, track
outstanding complaints, manage the non-conformance process, customize letter
templates and automatically chasse up any outstanding or unresolved
investigations.
2. Provide exceptional customer service:
Happy customers are the key to ensuring the successfulcontinuation of
any business. Providing clients with an unparalleled level of customer service is a
highly effective way to make them feel valued and important. This is hugely
helpful in diffusing any complaints and ensuring customers leave with a positive
impression of the business.
3. Be sure to deliver on promised standards:
One of the simplest ways to minimize complaints is to ensure that
customers receive exactly what they have paid for. Anything less represents valid
ground for protests and objections.
There are two major ways that businesses can ensure they are delivering advertised
standards of service. The first is to make sure that the product or service
description is accurate and not overly exaggerated. The second is to
maintain meticulous level of quality control that is overseen by all staff members.
4. Ask for feedback:
Communicating with customers and actively asking for their opinions is a
great way to identify problems before they begin to escalate. Not only will
customers feel as though the business cares about their wants and needs but it also
represents an opportunity to identify issues that other customers may have
experienced but were not forthcoming enough to raise.

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5. Find the root of the problem:
No matter how small or seemingly insignificant the complaint, it is
essential for businesses to track down the root of the problem and actively address
any areas that are resulting in customer dissatisfaction. This will ensure that the
issue is 100% dealt with and will not snowball into something bigger and more
damaging at a later stage.
Implementing these simple tips into your business operations will ensure that the
level of customer complaints received is significantly reduced across all areas.
Model of Customer satisfaction:

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Agenda of customer satisfaction
To share simple ways of:
Ways to measure customer satisfaction
Ways of measuring customer satisfaction include:
 Survey customers:
Surveying customers is the only probable way of getting customer feedback unless
they contact you.
Most people are busy and have no time to pass redress.
You can provide survey through several ways such as emails and use of phone
calls.
To get credible feedback you need to allow customers to answer questions on
weighted scale.
You can conductrepeated surveys, over time, to measure changing comments from
customers.
 Understand expectations:
Understanding what customers expect from you will provide ground to satisfy their
expectations by giving them enjoyable service.
Making an effort to discover what customers expect from you in terms of service
and products is the way to satisfying their needs.
 Customer services
 Customer core
 Customer satisfaction
 Customer delight
 Using service quality to attract
and retain customers.

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 Find out where you are failing:
On situations where you are not fulfilling customer requirements, it is credible to
find out where you are failing. Incidences where products are less than advertised
should not arise. Find out if employees are making promises that cannot be met.
Take strides and attend seminars that will equip you with better managerial skills.
Know the chain of communication so as to know where communication faults are
and foster amendments.
 Pinpoint specifics:
Whether a customer is satisfied or not, you need to collect information to help you
assess the situation.
Collect information about what customers purchased, what they liked and they did
not like, their actual purchase expectation and their suggestions for improvement.
 Assess the competition:
Have the initiative to know why customers consider other brands above yours.
Through the survey, invite customers to come and compare and contrast your
services and products and make judgment on what you are not offering.
 Try to measure the emotional aspect:
Customer experiences after buying a given product are attributed to quality.
Feedback from customers in relation to quality, reliability and extent satisfaction
should be matched. Comments customers make are a measure of their satisfaction.
Customers showing dissatisfaction prompts change of strategy.
 Loyalty measurement:
Customer loyalty is the likelihood of repurchasing products or services. Customer
satisfaction is a major predictor for repurchasing and it is influenced by explicit
performance of the product, value and quality.
Loyalty is basically measured when a customer recommends to a friend, family
member about given product. Overall satisfaction, repurchasing and likelihood of
recommending to a friend are indicators of customer satisfaction.

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 A series of attribute satisfaction measurement:
This strategy takes into account the affective and cognitive pattern. Affective
behavior is intrigued to liking and disliking owing the benefits the product is
attached with. Customer satisfaction is influenced by perceived quality the product
is attached with and it is regulated by expectations of the product or service.
Customer attitude towards a product are as a result of product information through
advertisement and any experience with the product whether perceived or real.
Cognition is the judgment on whether the product is useful or not useful. Judgment
is always intended use of application and use of occasions for which the product is
purchased.
 Intentions to repurchase:
Future hypothetical behavior that indicates repurchasing the product is a measure
of satisfaction. Satisfaction can influence other post purchasing trend through use
of the word of mouth or social media play.
IMPORTANCE OF CUSTOMER SATISFACTION
Customer satisfaction is important because it provides marketers and business
owners with metric that they can use to manage and improve their businesses.
Following reasons why customer satisfaction is so important:
 It’s a leading indicator of customer repurchase intentions and loyalty.
 It’s a point of differentiation.
 It reduces customer churn
 It increases customer life time value.
 It reduces negative word of mouth.
 It’s cheaper to retain customers than acquire new ones.
LEADING INDICATOR:
Customer satisfaction is a best indicator of how likely a customer will make a
purchase in the future. Asking customers to rate their satisfaction on a scale of 1 to
10 is a good way to see if they will becomerepeat customers or even advocates.

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Any customer that give you a rating of 7 and above, can be considered satisfied,
you can safely expect them to come back and repeat purchase. Customers who give
you a rating 9 to 10 are your potential customeradvocates who you can leverage
to become evangelists for your company.
Scores of 6 and below are warning signs that a customer is unhappy and at risk
of leaving. These customers need to be put on a customer watch list and followed
up so you can determine why their satisfaction is low. That’s why it’s one of the
leading metrics businesses use to measure customer repurchase and customer
loyalty.
POINT OF DIFFERENTIATION:
In a competitive market place where businesses compete for customer, customer
satisfaction is seen as a key differentiator. Businesses who succeed in these cut-
throat environment are the ones that make customer satisfaction a key element of
their business strategy.
If you had a recommendation for one business would that sway your opinion?
So, how does that recommendation originally start? More than likely it’s on the
back of a good customer experience. Companies who offer amazing customer
experiences creates environments where satisfaction is high and customer
advocates are plenty.
This is an example of where customer satisfaction goes full circle. Not only can
customer satisfaction help you keep a finger on the pulse of your existing
customers, it can also act as a point of differentiation for new customers.
CUSTOMER CHURN:
An Accenture global customer satisfaction report (2008)found that price is not the
main reason for customer churn; it is actually due to overall poorquality of
customer services.
Customer satisfaction is the metric you can use to reduce customer churn. By
measuring and tracking customer satisfaction you can put new processes in place
to increase the overall quality of your customer service.
I recommend you put an emphasis customer expectations and wowing customer
satisfaction again. See whether your new initiatives have had a positive or negative
impact on satisfaction.

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CUSTOMER LIFE TIME VALUE:
A ‘totally satisfied customer’ contributes 2.6 times more revenue than a ‘somewhat
satisfied customer’. Furthermore, a ‘totally satisfied customer’ contributes 14 times
more revenue than a ‘somewhat dissatisfied customer’.
Satisfaction plays a significant role in how much revenue a customer generates for
your business. Successfulbusinesses understand the important of customer lifetime
value (CLV). If you increase CLV, you increase the returns on your marketing
dollar.
For example, you might have a costper acquisition of $500 dollars and a CLV of
$750. That’s 50% ROI from the marketing efforts. Now imagine if CLV was
$1,000. That’s a 100% of ROI.
Customer lifetime value is a beneficiary of high customer satisfaction and good
customerretention.
REDUCENEGETIVE WORD OF MOUTH:
McKinsey found that an unhappy customer tells between 9-15 people about their
experience. In fact, 13% of unhappy customers tell over 20 people about their
experience. That’s a lot of negative word of mouth.
To eliminate bad word of mouth you need to measure customer satisfaction on an
ongoing basis. Tracking changesin satisfaction will help you identify if
customers are actually happy with your productor service.
It’s cheaperto retain customers than acquire new ones
This is probably the most publicized customer satisfaction statistic out there. It
costs six to seven times more to acquire new customers than it does to retain
existing customers.
Factors affecting customer satisfaction:
Price
Quality
Attitude with Customers
Features
Access

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Price:
 Price perceptions directly influence customer satisfaction.
 What are price perceptions?
Perceived value is the worth that a product or service has in the mind of the
consumer. For the most part, consumers are unaware of the true cost of production
for the products they buy; instead, they simply have an internal feeling for how
much certain products are worth to them but nowadays customers are well aware
about it.
 So Price of the services should be determined by the perception of customer
about price.
Quality:

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In this study we categorized four perceived quality factors influencing customer
satisfaction:
 Service quality
 Food quality
 Atmospherics
 Customers are satisfied only if you provide them the quality which they
desired for.
 If perceived quality is not provided then it can badly affect customer
satisfaction.
 Attitude with customers.
 The main causes that affect customer satisfaction is your attitude with your
customer.
 If you are polite and give respect to your customer then it can increase your
customer satisfaction otherwise it can badly affect your company growth.
Features:
 The features of your product and services greatly affect customer
satisfaction
 If the features are according to perception of the customer then it can
increase customer satisfaction a lot.
Access:
 No website? No contact information? No search engine optimization? Then
how can you expect that your customer will be loyal with you?

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 Easy and convenient access to the product& services of your company at a
convenient place can increase customer satisfaction.
LEVELS OF CUSTOMER SATISFACTION
The ability to satisfy your customers to gain customer loyalty is the critical
determinant of your success in driving sales and growing your business.
There are four levels of customer satisfaction, all based on the degree to which you
meet customer expectations. The higher the level you achieve, the more you will
build customer loyalty and the greater your success.
Level One: Meet Customer Expectations
The minimum requirement to simply stay in business—to survive—is
to meet the expectations of your customers. At this level, your customers have no
complaints. They are satisfied for the moment, but at this point, customer loyalty
doesn’texist.
If a competitor demonstrates that it can and will do more than merely meet their
expectations, your customer will very quickly become an ex-customer.
Moreover, if you fail to meet their expectations, they will leave and give their
customer loyalty to someone who can. It can be helpful to observeyour local
merchants, the true entrepreneurs.
Level Two: Exceed CustomerExpectations
This higher level of customer satisfaction is reached by surprising your
customers. You must go beyond what they expect. Fast, friendly and good
customer service, followed up by a phone call to ensure customer satisfaction,
might put you into this category. The second level of customer satisfaction moves
you beyond mere survival.
Exceeding expectations builds a measure of customer loyalty and gives you an
edge over your competitors. It can also increase your profitability.

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Level Three: DelightYour Customer
Have you ever experienced a level of good customer service that not only
exceeded your expectations but actually brought a smile to your face? A customer
served at this level is truly delighted. Not only have the customer’s basic needs
been met or exceeded, but they have been touched emotionally.
Once customers have enjoyed this experience, you will gain customer loyalty. It
will be very difficult for a competitor to pry them away. When you delight your
customers, you are on the way to creating an exceptional and highly profitable
business.
There are countless cost-effective ways to delight your customers and build your
customer loyalty. It can be as simple as a follow-up phone call. To delight your
customer is to show that you care about them. No wonder it brings a smile to their
face! The greater your success in delighting your customers and providing good
customer service, the greater success you will enjoy in your business.
Level Four: Be up-to-datewith technology
infrastructure
For any outsourcing company desiring to be on top, it is important to pay
attention to the latest technology trends and be up-to-date with most recent in
technology infrastructure. Business users prefer to outsourcetheir core and non-
core activities to those who possessthe latest in technology infrastructure. This
level of customer satisfaction must not be overlooked becausehowever satisfied
the buyer is with you, they may have to optfor a competitor if you don'tpossess
the latest in technology infrastructure.
Level Five:Amaze YourCustomer
This fourth level of customer satisfaction is what will propel your
business above and beyond. It requires you to not only to meet and exceed your
customer’s expectations but delight and amaze them. When you are able to amaze
your customers regularly, you will be in a position to dominate the marketplace.
You will achieve remarkable rates of revenue growth and profitability.

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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

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Levels of customer satisfaction:
These are the levels of customer satisfaction:
 Basic needs
 Performance
 Excitement Needs
Basic Needs (Dissatisfiers):
 A service that the costumer takes for granted. He expects it to be present in
the product.
 Absence of this need will lead to dissatisfaction for the customer but the
presence of it will not lead to any satisfaction as such.
Performance needs (satisfiers):
 It is a need or want of the customer which he specifically asks for.
 Better the performance more will be the satisfaction of the customer.
 These factors become the benchmarks in the competitive market.
Excitement Needs (delighters):
 It is a need or want of the customer which he specifically asks for.
 It leads to very high level of satisfaction or customer delight.
 Absence of delighters does not result in customer dissatisfaction while its
presence will enhance customer satisfaction.

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Customer perception of quality
ASQ survey shows that important factors that influence purchasing are:
 Performance
 Features
 Service
 Warranty
 Price
 reputation
Principles of customer quality service
The quality of customer service is the key differentiator between good, bad and
indifferent companies. Good quality customer service keeps customers coming
back; bad customer service drives customers away, taking their friends, family and
workmates with them. All else being equal, good quality customer service gives
the edge over competitors. Regardless of industry, here are the 9 key principals of
good customer service that always make business sense.
1. Attracting new customers costs more than retaining
existing customers:
A satisfied customer stays with a company longer, spends more and may
depend the relationship.
For example a happy credit card customer may enlist the company’s financial
services and later take travel insurance. This is an easy “sell”, compared with
direct marketing campaigns, television advertisements and other sophisticated and
expensive approaches to attract new customers.
2. Customer service costs real money:
Real costs are associated with providing customer service and companies
spend in line with a customer’s value. If you are a high value customer or have the
potential of being high value, you will be serviced more carefully.

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Companies reduce the cost of customer service by using telephone voice response
systems, outsourcing call centers to cheaper locations, and self-servicing on the
internet. However, companies risk alienating customers through providing an
impersonal service.
Some internet banking companies are bucking the trend by charging customers to
contact them. In exchange, customers receive better interest rates due to reduced
overheads and are satisfied with that.
3. Understand your customers’ needs and meet them:
How can you meet your customers’ needs, if you don’tknow them? To
understand your customer’s needs, just listen to the “voice of the customer” and
take action accordingly. Customer listening can be done in many ways, for
example feedback forms, mystery shopping, and satisfaction surveys. Some
companies involve senior employees in customer listening to ensure decisions
benefit the customer as much as the company.
4. Good process and product design is important:
Good quality customer service is only one factor in meeting customer needs.
Well designed products and processeswill meet customers’ needs more often.
Quality movements, such as Six Sigma, consider the “costof quality” resulting
from broken processesorproducts. Is it better to service the customer well than to
eradicate the reason for them to contactyou in the first instance?
5. Customer service must be consistent:
Customers expect consistent quality of customer service; with a similar,
familiar look and feel whenever and however they contact the company.
Say you visit an expensive hairdressing salon and receive a friendly welcome, a
drink and a great haircut. You are out of town and visit the same hairdressing chain
and get no friendly welcome, no drink and a great hair-cut. Are you a satisfied
customer who will use that chain again? Probably not, as you did not receive the
same customer service – which is more than a good hair-cut.

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6. Employees are customers too:
The quality management movement brought the concept of internal and
external customers. Traditionally the focus was on external customers with little
thought given to how internal departments interacted. Improving relationships with
internal customers and suppliers assists delivery of better customer service to
external customers, through reduced lead-times, increased quality and better
communication.
The “Service-Profit Chain” model developed by Harvard University emphasizes
the circular relationship between employees, customers and shareholders. Under-
staffed, under-trained employees will not deliver good quality customer service,
driving customers away. Equal effort must be made in attracting, motivating and
retaining employees as is made for customers, ultimately delivering improved
shareholder returns. Better shareholder returns mean more money is available to
invest in employees and so the circle continues.
7. Open all communications channels:
The customer wants to contact you in many ways – face to face, by mail,
phone, fax, and email – and will expect all of these communication channels to be
open and easily inter-mingled. This presents a technical challenge, as it requires an
integrated, streamlined solution providing the employee with the information they
need to effectively service the customer.
8. Every customer contact is a chance to shine:
If a customer contact concerns a broken process, then empowered
employees will be able to resolve the complaint swiftly, possibly enhancing the
customer’s perception of the company. Feeding back this information allows
corrective action to be made, stopping further occurrences of the error.
If you inform customers about new products or services when they contact you,
you may make a valuable sale, turning your cost centre into a profit centre. This is
only possible when you have a good relationship with your customer, where you
understand their specific needs. A targeted sales pitch will have a good chance of
success, as the customer is pre-sold on the company’s reputation.

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9. People expect good customer service everywhere:
Think about an average day – you travel on a train, you buy coffee, you
work. You expect your train to be on time, clean and be a reasonable cost. You
expect your coffee to be hot and delivered quickly. You expect your work mates to
work with you, enabling you to get the job done.
People become frustrated when their expectations are not met, and increasingly
demand higher service quality in more areas of their lives.
CUSTOMER SERVICE:
What is good customer service?
Good customer service is seen as a desirable value. Good customer service is
created together with the customer in a service situation. Customer service is
something that is done for the customer.
The main features of customer service
There are at least five features that describe customer service. These are
Intangibility
Service is not something you can store, service happens with the customer each
time and each time it can be a bit different. You can’t return service like you can
return tangible products. Pricing a service can be difficult or maybe even
impossible. A service is made and delivered on spot and hence it cannot be
measured as easily as a tangible product.

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Coexistence
Producing a service often happens in an interactive process where both the user
and the service producer are in interaction. This interactive process might take just
few seconds or it might last decades.
New products and new distribution channels
Service can happen through many channels, for example, via phone or on the
internet.

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Heterogeneity and unique variation
Because service is intangible, unique and passing, product responsibility or
consumer protection is hard to apply on a service. Monitoring quality and pricing
is difficult.
Creativity
ADVANTAGES OF CUSTOMER SATISFACTION
These are the some advantages of customer satisfaction:
Up-to-date feedback:
Gather current customer feedback on various aspects of your company.
You can stay on top of customer trends through regularly scheduled online surveys
or email surveys, and receive instant customer feedback. It is always useful to
acquire insight into how your customers are currently reacting to all aspects of
your business.
Benchmark results:
You can administer the same survey every so often to customers to gain
continued insight into your customers. Surveys can have the same questions, which
will allow you to compare data over time and benchmark survey data across
previous years to determine if any changes need to be made.
Each service situation is unique
and it gives the service provider
space for being creative.

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Show that you care:
Customers like to be asked for their feedback. It gives the customer
the perception that your company values them; is committed to keeping them as a
long-term customer; and bases business decisions on their feedback.
Listening:
A satisfaction survey provides a channel for customers to express their views.
This is important in an environment where increasing numbers of consumers share
their views and opinions on social networking sites that are outside your control.
Asking your customers for their views on your company’s products and
performance indicates that you’re prepared to listen to customers and take account
of their views.
Understanding:
By sharing the results of a customer satisfaction survey with your employees,
you can build an understanding of company operations from the customers’
perspective. Employees in departments such as accounts or order processingmay
not feel that their work is relevant to customer satisfaction.
By including questions in the survey such as “how satisfied are you with the
accuracy of invoices” or “how satisfied are you with the length of time taken to
process orders,”you can highlight the importance of the work of those departments
and build a customer-focused attitude.
Priorities:
Analyzing the responses to a satisfaction survey highlights your company’s
strengths and weaknesses from your customers’ perspective. Focus on areas of
your business that achieve very low satisfaction scores and prioritize improvement
programs so that you can remedy any serious problems in those areas.
The improvement programs can take the form of changes to business processes
or employee training. If the survey indicates poor performance in areas such as
order processing or telephone response, you may be able to improve performance
by automating the processes using information technology.
Responses that highlight problems with employee attitudes or knowledge
indicate a need for training.

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Retention:
Customer satisfaction levels have an impact on your ability to retain
customers. If the survey indicates low levels of satisfaction across a large number
of questions, you face the risk of customers defecting to competitors. Research
firm B2B International points out those customers’ attitudes can fall into three
distinct zones: zone of defection, zone of indifference and zone of loyalty.
The zones correspond to different levels of customer satisfaction. The higher
the level of satisfaction you can achieve, the more likely you are to retain loyal
customers, something that is extremely important for a small business, which likely
has a smaller customer pool.
Progress:
A single satisfaction survey gives you a snapshot of customers’ views at a
given point of time. By conducting a number of surveys over a period of time, you
can measure the results of any improvement programs you have undertaken. Ask
customers the same set of questions in each survey and analyze the results to assess
progress.
Shows Commitment to the Customer:
Often customers like the idea that a company is soliciting their feedback,
because it shows that the company is committed to keeping them as a business. Far
too many companies take their clients for granted. Customer satisfaction surveys
serve as a reminder that your company cares enough to make business decisions
based on your feedback.
Disadvantages of Customer Satisfaction
Too many surveys, so little time:
Your customers are bombarded with online surveys. Surveys may be
simple to complete, however, some people simply don’t like to complete them.
Sending surveys too often can irritate customers and lead to customer burnout.
Customer burnout can result in low response rates or result in lower satisfaction
scores, despite your reputation for providing excellent products or services.

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Privacy Issues:
We live in a high-tech environment filled with daily doses of
unwanted junk email, email solicitations, and sales calls. When taking an online
survey or a phone survey (or any type of survey), it is hard for your customers to
believe that they aren’t being tracked. Because of insecurities of releasing private
information, customers today are hesitant in giving out information that may lead
to more junk email and unwanted calls. Make certain to assure customers that the
information they provide in response to your customer satisfaction surveys will not
be used. Without this disclaimer, it may be difficult to receive a good response
rate.
Customer Burnout:
As easy as surveys are to fill out, many people simply don’tlike
completing them. Sending surveys too often can lead to customer burnout, and that
burnout may result in lower satisfaction scores despite your excellent business
model.
Anonymity Issues:
These days there is so much unwanted spam and excessive sales
strategies that customers are often hesitant to give information that may lead to
more sales calls in the future. Without ample assurance that the survey will not be
used to target them directly, it may be hard to get the responses you want.
6 Proven Methods for Measuring Customer Satisfaction
91% of unhappy customers will never buy from you again .The number one
objective of any business should therefore be to create happy customers.
Businesses that do grow and flourish; those that don't, stagnate and perish. But for
the #1 objective it's poorly presented in companies' metrics to track. This is partly
because measuring customer satisfaction is not as straightforward as e.g.
measuring revenue streams or website visitors, making it hard to set up clear goals.
There are, however, some great methods and metrics out there designed for exactly
this purpose. Let's go through some that you can apply in your business today.

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1.Customer Satisfaction Surveys
The customer satisfaction survey is the standard approach for collecting data on
customer happiness. It consists of asking your customers how satisfied they are,
with or without follow up questions. Three useful variations:
Email: In-App Surveys. With this you integrate a subtle feedback bar inside your
website, with generally not more than one or two questions. It’s one of the methods
with the highest responserates, thanks to the fact that the customer is asked for her
opinion while she’s engaged with your company. In-app surveys are especially
handy to measure some of the standard customer satisfaction metrics, like NPS or
CES covered below.
PostService Surveys: This type of survey focuses on the customer’s satisfaction
with a specific service she’s just received. You ask it right after the delivery, when
it's still fresh in the mind. This can be done in email supportwith a rating link in
the mail, or in live chat with a rating view that appears after the chat. It can also be
done over the phone, but it's somewhat problematic because it takes more time
from the customer, and she might not feel comfortable sharing an unfiltered
opinion. Post-service satisfaction surveys are a built-in feature of most live chat
solutions.

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Email Surveys: The above survey methods aren't suitable for in-depth insights
about your customer happiness. Why are they happy or unhappy? Email surveys,
on the other hand, are a good tool for this. Although they have a downside of low
response rates (10% - 15%, according to SurveyGizmo), they do allow your
customer to take their time in answering multiple questions. Google Forms is an
excellent free tool for this purpose. Find an email survey template here.
Google Forms allows you to create powerful surveys, fast.
2. Customer Satisfaction Score (CSAT):
This is the most standard customer satisfaction metric, asking your
customer to rate her satisfaction with your business, product, orservice. Your
CSAT scoreis then the average rating of your customer responses.
The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger range is not
always better, due to cultural differences in how people rate their satisfaction. An
article in Psychological Science, for example, showed that people in individualistic
countries choosethe more extreme sides more frequently than those in
collectivistic.
3. Net Promoter Score (NPS)
The Net Promoter Score(NPS) measures the likeliness of a customer
referring you to someone, and it’s probably the most popular way of measuring
customer loyalty. Customer are asked how likely they are to recommend you on a

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scale from 1 to 10.
The strength from this metric is that its question isn’t about an emotion (“How
satisfied am I?”), but about an intention (“How likely am I to refer?”), which is
easier to answer. It cuts down to the question of whether the productis good
enough to refer it and put your own reputation on the line. Calculating your NPS
scoreis quite easy. Take the percentage of respondents who fall within the
‘promoter’ category (10 - 9) and subtract the percentage of ‘detractors’ (0 - 6).
Some tools for measuring NPS work with email questionnaires. Examples are
Trustfuel NPS (free) and Promoter.io (paid). Others work with in-app surveys, like
Wootric (freemium). The Net Promoter Network offers a benchmark report to give
you insight about how you compare in your industry.
One added benefit of NPS is that it directs your customers’ attention towards
referring, an option they might not have thought about before.
4. Customer Effort Score (CES)
With this method, customers aren’t asked for their satisfaction or likeliness of

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referring, but for the effort it took them to have their issue solved — generally on a
scale from 1 (very low effort) to 7 (very high effort). Your aim is, of course, to
lower this average score. According to CEB, 96% of customers with a high effort
scoreshowed reduced loyalty in the future, while that was the case with only 9%
of those who reported low effort scores.
This idea for a customer satisfaction metric was introduced in the HBR article Stop
Trying to Delight Your Customers. It challenges the accepted idea that excellent
customer service equals exceeding customer expectations. Through their analysis,
the authors found that customers are much more likely to punish bad service than
to reward good service. They showed that the costs ofexceeded customer
expectations are high, while the payoffs are minimal. Instead of putting all that
effort into delighting the customer, the authors argue it should be invested in
making the customer experience and problem resolution as easy as possible. The
authors found that the the ease of having your problems resolved was a much
better predictor for satisfaction than the exceeding of expectations. Improve the
customer experience by easifying your customer’s journey.
This new service philosophy requires different measurements, which is why the
CES was developed. They showed that CES is superior to CSAT and NPS in
predicting consumer behavior. Don’t ask, “How satisfied are you with this
service?”; ask, “How easy was it to get in contact/make a purchase/have your issue
resolved?”
Check Market offers a free template to create your own CES survey. With some
tweaking, many customer service tools are suited for this purpose. Read more in
our poston how to get to the right customer effort scorequestion.
5. Social Media Monitoring
Social media has had an immense impact on the relationship between business and
customer. Where before, a great or poorservice experience would maybe be shared
with the closest family and friends, social media offered an outlet and reach to

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potentially millions of people.
Because of that, it’s the perfect place to hear what your customers are really
thinking about you. If you have the right tools to track this, that is. Facebookand
Twitter are of course relevant platforms to track, but also platforms like Quora,
Yelp, TripAdvisor, etc. Some helpful tools:
Google Alerts:This Google service notifies you when your brand appears in a
prominent position.
Mention: A powerful freemium tool that gives you a heads up whenever your
brand is mentioned on the web. It’s especially handy for social media tracking, for
which Google Alerts is not suitable.
Socialmention:A free tool that analyzes social mentions of your brand on the
web. Among others, it shows the likeliness of your brand being discussed onthe
web, the ratio of positive to negative mentions, the likelihood of people mentioning
your brand repeatedly, and the range of influence.
6Things Gone Wrong:
This metric originates from the Lean Six Sigma approach, and measures the
number of complaints, or "Things Gone Wrong", per 100, 1000, or up to a
1,000,000 units of survey responses, units sold, or other.
The standard approachto measure TGW is through complaint sections in customer
surveys, but you could also maintain internal metrics. In the worst case scenario
your scoreis 1 or higher, meaning that you get at least 1 complaint per chosen unit.
Nobodylikes things going wrong, which is exactly why we should focus on it.

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Once you start measuring, you can start optimizing. And optimizing your customer
satisfaction is the best investment you can make.
5 ReasonsCustomers Leave:
1% pass away
3% move
14% are lured by a competitor
14% are turned away by productor service dissatisfaction
68% leave because of poorattitude or indifference on the part of the service
provider
Control what you can
The survey points out that salespeople have little control over the first four
reasons why customers leave, which account for 32% of those that depart. But
salespeople and business owners have complete control over at least 68% of the
customers who leave.
As such, it's in your best in your bestinterest to empower your employees to be
engaged and encouraged to provide an outstanding customer experience.
9 Ways to Keep Them:
Here are nine critical skills that will help you, and your reps, establish and
maintain the right attitude with your customers — and keep them from jumping
ship:
Exceed expectations.
Personalize your service. Instead of promising more than you can give, give
more than you promise -- under promise, over deliver. Deliver a "wow" customer
experience.
Always be available.
Be there to serve customers whenever they need you to be there. The Internet
has enabled companies to have a constant presence with their customers, “24/7.”
Reliability and availability are vital. Make sure your customers know you are
available on demand. Be involved in the same social media channels as your
customers.
Customize how you serve.
Find or develop solutions that fulfill your individual customers’ specific
needs. Successfulsalespeople customize their business relationships with
customers. They pride themselves on their one-on-one interactions. These

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salespeople value the differences in customer needs and respond with customized
solutions.
Be easy to deal with.
Make doing business with you easy and pleasurable. Assume the burden of
relieving inevitable aggravations for your customers. Salespeople who exceed their
customers’ expectations do so by creating hassle-free experiences.
Put the customer first.
Don’t wait for opportunities to present themselves. Seek them out. Give
customers more than they expect.
Resolve conflicts and solve problems.
When conflicts arise, some salespeople have a tendency to deny them, debate
them, shift responsibility for them, place blame for them, or hold their breath
hoping they’ll go away. Top salespeople acceptownership of the problem,
collaborate on a solution, and take on the burden of finding a resolution regardless
of fault.
Handle complaints.
Complaints usually have some validity and can be an “early warning system”
of conflict on the horizon. When you view complaints this way, they can become
your ally, helping you resolve problems and minimize their impact. Complaints
that go unattended may evolve into conflicts that could have been avoided.
Communicate constantly.
Ask questions that result in a dialogue. The more the customer talks, the more
you’ll learn. Continue questioning until you understand and have uncovered all the
information required to proceed. Try to avoid jumping to conclusions with
customers.
Remember nonverbal communication.
When communicating with customers, observe their non-verbal signals. Take
note of their bodylanguage, appearance and posture. Look for signs of distraction.
Pay attention to their facial expressions and eye contact. Listen to the tone of their
voice as a means for understanding what they may be feeling.
HOW TO IMPROVE CUSTOMER SATISFACTION
1. Treat your customers like they are your boss
Jeffery Gitomer speaks about how your customer is your paycheck. With no
customers, there’s nobody to pay you! By taking this approach to every customer
interaction you can naturally flip the angle on customer service.

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Picture yourself as the boss… if your employee treated every customer the way
they treated you, how good would the service be! Here are some of the approaches.
I recommend businesses use: Thank all your customers for their business
Go out your way to help customers Try to impress your customers as if you want a
pay raise Think about your paycheck every time you talk to a customer.
2. Focus on measuring customer satisfaction
Did you know that 91% of your unhappy customers will never purchase
services from you again? Measuring customer satisfaction can help you reduce the
number of unhappy customers. So how do you measure customer satisfaction? Use
one of these four Online Survey Tools Focus on these Customer Satisfaction
Metrics Use customer support tools with ticket systems (Zendesk, Desk.com or
Helpscout)
3. Build customer loyalty to increase customer satisfaction
Customer satisfaction is worthless. Customer loyalty is priceless.
– Jeffrey Gitomer Jeffery talks strongly about customer loyalty and it’s relationship
with customer satisfaction in his book, Customer Satisfaction is Worthless,
Customer Loyalty is Priceless. He believes that businesses should be focuses their
efforts on creating loyal customers, that sticky and not easily influenced by
competitors. I agree with Jeffery and have included my five favorite ways to build
customer loyalty to increase customer satisfaction: Remember special occasions
like birthdays Strive to empower and educate customers Invest in a self-service
support channel Top level managers must lead from the front with customer
service Talk to your customers, tap into what they want and deliver
4. Avoid making these customer retention mistakes
No business is immune to unhappy customers. In fact, even companies with the
best customer service in the world will still lose up to 9% of their customers to
competitors. The good news is you can do something to stop customers defecting.
Here are three common customer retention mistakes that are killing your customer
satisfaction: You are ignoring customer feedback. You are taking customer
feedback to personally. You are using long, boring customer feedback surveys.

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5. Set customer expectations early
Setting expectations too high is a common mistake a lot of businesses (and
salespeople) make when bringing on new business. How many times has your sales
guy made ridiculous promises to push a deal over the line? If you’re like most
businesses, you’ve probably had the odd wild over promising salesperson. For
those who still have these wild ones, my advice – get them in line! They are killing
your customer satisfaction by setting expectations too high! Gordon Tan, Director
of Client Heartbeat, recommends under promising and over delivering. There’s no
better feeling than as a customer to have your expectations exceeded.
6. Learn how to survey your customers the right way
A customer feedback survey is the best way to find out how satisfied your
customers are, find ways to improve your product or service, and identify customer
advocates who really love your product. Gregory Ciotti, Marketing Strategist at
Help Scoutrecommends using a customer feedback survey that asks participants to
rank (1-10) how likely they are to recommend you. I agree with Gregory and also
recommend keeping your survey to under 10 questions.
A quick and relevant survey will help increase survey response rates.
7. Email is the best channel to increase customer satisfaction
59% of B2B marketers believe email marketing is still the most effective
channel in generating revenue. If it’s so good for marketers, why don’twe use it
more to increase customer satisfaction? That’s a good question, and I want to touch
on three quick practical examples of companies who are using email to increase
customer satisfaction. Mixpanel uses email to stay in contactwith customers by
sending through follow up emails with links to resources, webinars and support
sites. Proflowers uses email to send personalized special offers to specific groups
of customers. R&G Technologies uses email to send customer feedback surveys
and track customer satisfaction.
8. Tap into social media to track and monitor customer
satisfaction so you can keep your customers happy
It costs a company $234 every time they lose a customer. Can you afford

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to not be monitoring and tracking customer satisfaction? With your customers now
using their mobile phones up to 150 times per day, it’s important to recognize that
they will turn to social media to leave their customer complaints. Your job is to
make sure you use social media monitoring tools to keep track of positive and
negative feedback, and resolve them accordingly. In fact, social media provides a
great opportunity to actually increase customer satisfaction. Here’s how you can do
just that:
 Use social media to monitor brand mentions and sentiment.
 Use social media as a customer supportchannel
 Use social media to hold Q&A sessions with customers
9. Stats don’t lie, understand the importance of customer
satisfaction
If my first eight ideas weren’t already enough, it’s worth reading about why I think
customer service is the new marketing. Here are three mind-blowing facts that
should motivate you to start focusing on increasing customer satisfaction.
According to Bain and Co., a 5% increase in customer retention can increase a
company’s profitability by 75%. Gartner Group statistics tell us that 80% of your
company’s future revenue will come from just 20% of your existing customers.
Lee ResourceInc. found that attracting new customers will costyour company five
times more than keeping an existing customer.

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CONCLUSION
When it comes to analyzing business success in today’s consumer
market, it is evident that sales, profits, and shares prices form only part
of the picture. As customers are the backbone of a sector, profits can
only be generated if its customer satisfied with the benefits and services
provided to it. Over the years, customer satisfaction has become a much
more important indicator. Similarly, the way in which customers
‘concerns and expectations are subsequently handled speak volumes
about a company’s ability to attract and retain consumers.
And when we talk about banking sector then banks are dealing with
customers directly as providing services to them so it’s more important
for banks. So, customer satisfaction is necessary for every bank to know
about customer’s loyalty with the bank because competitors are
increasing day by day and people now have more options to switch to
other bank if not satisfied with the bank they are dealing in present.

Customer satisfaction

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