CUSTOMER SATISFACTION

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.

WHO ARE CUSTOMERS

• Internal Customer : are people, departments, units and groups within an organization served by what we do.

• External Customer : are end users of the organization's product or services depositors, borrowers, investors, etc.

Why 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”.

Factors affecting customer satisfaction

• PRICE - micromax

• QUALITY - rolls royce

• SERVICE - dell

• BRAND NAME - apple

• REPUTATION - nokia

• FEATURES - samsung

LEVELS OF CUSTOMER SATISFACTION

1. 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 becomes the benchmarks in the competitive market.

•Excitement Needs (delighters)

• A delighter is an unspoken or unexpected requirement of a customer.

• 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.

CUSTOMER SATISFACTION FACTS

• 5% increase in loyalty can increase profits by 25% to 85%.

• Only 4% of unsatisfied customers will complain.

• An unhappy customer tells 9 other people.

• A happy customers tells to about 5 other people.

CUSTOMER SATISFACTION PROCESS

• Step 1: Understanding customer expectations

• Step 2: Promises to customers

• Step 3: Execution

• Step 4: Ongoing dialog with a customer

• Step 5: Customer satisfaction surveys

CUSTOMER RETENTION

• Customer satisfaction should lead to customer loyalty and customer retention.

• This is the real test and bottom line- when the customer repeatedly comes back to you for repeat orders and to purchase new products manufactured by you. (In spite of stiff competition and multiple Suppliers/Sources! )

• Firm orders received or cash payments registered , market share, customer referrals and customer retention are an indication of your customer success and penetration in the market.

CUSTOMER FEEDBACK

• Customer feedback must be continually done and monitored.

It enables an organization to:

• Discover customer’s dissatisfaction

• Discover relative priorities of quality

• Identify customer need

• Determine opportunities for improvement

How to ensure customer satisfaction

• Surveys

• Customer feedback

• Comparison with alternatives

• Employee feedback

• Internet/blogs

• Toll free numbers

• Quality is defined as excellence in the product or service that fulfills or exceeds the expectations of the customer.

• There are 9 dimensions of quality that may be found in products that produce customer satisfaction.

• Though quality is an abstract perception, it has a quantitative measure Q= (P / E ) , where Q=quality,P= performance(as measured by the manufacturer.), and E = expectations( of the customer).

Quality and customer expectations

9 Dimensions Of Quality