CUSTOMER CUSTOMER SATISFACTIONSATISFACTION

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

• The most important asset of any The most important asset of any organization is its customersorganization is its customers

• Satisfied customers pay their bills Satisfied customers pay their bills promptly which greatly improves promptly which greatly improves cash flow – the lifeblood of any cash flow – the lifeblood of any organization organization

ORGANIZATIONAL ORGANIZATIONAL HIERARCHIAL DIAGRAMHIERARCHIAL DIAGRAM

•

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION• CUSTOMERS EXPERIENCE OF A CUSTOMERS EXPERIENCE OF A

PRODUCT OR A SERVICE IS PRODUCT OR A SERVICE IS MULTIFACETED SO HARD TO MULTIFACETED SO HARD TO DETERMINEDETERMINE

• IT NEEDS TO BE MEASURED IT NEEDS TO BE MEASURED INDIVIDUALLY TO GET AN INDIVIDUALLY TO GET AN ACCURATE TOTAL PICTURE OF ACCURATE TOTAL PICTURE OF CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

• Customer satisfaction should not be Customer satisfaction should not be viewed in a vacuum. viewed in a vacuum.

• For example, a customer may be For example, a customer may be satisfied with a product or service satisfied with a product or service and therefore rate the product or and therefore rate the product or service highly in a survey and yet service highly in a survey and yet same customer may buy another same customer may buy another productproduct..

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

• Similarly customer’s view about a Similarly customer’s view about a product or service are useless if product or service are useless if customer’s view about competitors customer’s view about competitors products are not understoodproducts are not understood. .

CUSTOMER SATISFACTIONCUSTOMER SATISFACTION

• The value customers places on the The value customers places on the product compared to another may be product compared to another may be a better indication of customer a better indication of customer loyalty.loyalty.

External CustomerExternal Customer

Internal CustomerInternal Customer

TYPES OF CUSTOMER

CUSTOMER PERCEPTION OF CUSTOMER PERCEPTION OF QUALITYQUALITY

ASQ SURVEY SHOWS THAT IMPORTANT ASQ SURVEY SHOWS THAT IMPORTANT FACTORS THAT INFLUENCE PURCHASING FACTORS THAT INFLUENCE PURCHASING AREARE

1.1. PERFORMANCEPERFORMANCE

2.2. FEATURESFEATURES

3.3. SERVICESERVICE

4.4. WARRANTYWARRANTY

5.5. PRICEPRICE

6.6. REPUTATIONREPUTATION

FEEDBACKFEEDBACK

• Comment Card.Comment Card.• Customer Questionnaire.Customer Questionnaire.• Focus Groups.Focus Groups.• Toll Free Telephone No.Toll Free Telephone No.• Customer Visits.Customer Visits.• Report Card.Report Card.• Internet & Computer.Internet & Computer.• Employee Feedback.Employee Feedback.• Customer complaintsCustomer complaints

COMMENT CARDCOMMENT CARD

• COMMENT CARD CAN BE ATTACHED COMMENT CARD CAN BE ATTACHED TO THE WARRANTY CARD & TO THE WARRANTY CARD & INCLUDED WITH THE PRODUCT AT INCLUDED WITH THE PRODUCT AT THE TIME OF THE PURCHASETHE TIME OF THE PURCHASE

• INTENT OF THIS CARD IS TO GET INTENT OF THIS CARD IS TO GET SIMPLE INFORMATION SUCH AS SIMPLE INFORMATION SUCH AS NAME , AGE, ADDRESS, OCCUPATION NAME , AGE, ADDRESS, OCCUPATION & WHAT MADE THE CUSTOMER BUY & WHAT MADE THE CUSTOMER BUY THAT PRODUCTTHAT PRODUCT

COMMENT CARDCOMMENT CARD

• FOR CUSTOMER THERE IS LITTLE OR FOR CUSTOMER THERE IS LITTLE OR NO INCENTIVE TO COMMENTNO INCENTIVE TO COMMENT

• CUSTOMERS DO RESPOND WHEN CUSTOMERS DO RESPOND WHEN THERE IS SOMETHING VERY GOOD THERE IS SOMETHING VERY GOOD OR VERY BADOR VERY BAD

• USED IN HOSPITALITY USED IN HOSPITALITY INDUSTRY(HOTELS, RESTAURANTS)INDUSTRY(HOTELS, RESTAURANTS)

CUSTOMER QUESTIONNAIRECUSTOMER QUESTIONNAIRE

• POPULAR TOOL FOR OBTAINING POPULAR TOOL FOR OBTAINING OPINION & PERCEPTIONS ABOUT AN OPINION & PERCEPTIONS ABOUT AN ORG./PRODUCT/SVSORG./PRODUCT/SVS

• COSTLY & TIME CONSUMINGCOSTLY & TIME CONSUMING• MOST SURVEYS ASK THE CUSTOMER MOST SURVEYS ASK THE CUSTOMER

TO GRADE THE QUESTION ON A 1-5 TO GRADE THE QUESTION ON A 1-5 OR 1-10 OR 1-10 LIKERT SCALELIKERT SCALE

• COMMUNICATION SKILLS 5 4 3 COMMUNICATION SKILLS 5 4 3 2 1 2 1

• GRIP ON THE SUBJECT 5 4 3 GRIP ON THE SUBJECT 5 4 3 2 1 2 1

• ANSWER TO THE QUESTIONS 5 4 3 ANSWER TO THE QUESTIONS 5 4 3 2 1 2 1

• WHOLE CLASS PARTICIPATION 5 4 3 WHOLE CLASS PARTICIPATION 5 4 3 2 1 2 1

• DO U FEEL ANY VALUE ADDITION 5 4 3 DO U FEEL ANY VALUE ADDITION 5 4 3 2 12 1AFTER HIS CLASSAFTER HIS CLASS

• DO U GO HOME SATISFIED AFTER 5 4 3 DO U GO HOME SATISFIED AFTER 5 4 3 2 12 1ATTENDING HIS LECTUREATTENDING HIS LECTURE

PARAMETER HIGHLY SATISFIED

NEUTRAL HIGHLY DISSATIS

TEACHING METHODOLOGY OF MUHAMAD ASIF

CUSTOMER QUESTIONNAIRECUSTOMER QUESTIONNAIRE

• DOES NOT TELL ABOUT THE IMPORTANCE DOES NOT TELL ABOUT THE IMPORTANCE OF INDIVIDUAL QUESTION RELATIVE TO OF INDIVIDUAL QUESTION RELATIVE TO OTHERSOTHERS

• NOR DOES IT TELL WHAT CUSTOMERS NOR DOES IT TELL WHAT CUSTOMERS EXPECT FROM ORGANIZATIONEXPECT FROM ORGANIZATION

• RESULTS ARE NOT REPRESENTATIVE OF RESULTS ARE NOT REPRESENTATIVE OF THE NORMAL POPULATIONTHE NORMAL POPULATION

• THOSE WHO FEEL VERY GOOD OR VERY THOSE WHO FEEL VERY GOOD OR VERY BAD RESPOND ONLYBAD RESPOND ONLY

TO MAKE SURVEY MORE TO MAKE SURVEY MORE USEFUL REMEMBERUSEFUL REMEMBER

1.1. CLIENTS & CUSTOMERS ARE NOT SAMECLIENTS & CUSTOMERS ARE NOT SAME

2.2. SURVEY RAISE CUSTOMER EXPECTATIONSURVEY RAISE CUSTOMER EXPECTATION

3.3. HOW U ASK A QUESTION WILL HOW U ASK A QUESTION WILL DETERMINE HOW THE QUAESTION IS DETERMINE HOW THE QUAESTION IS ANSWEREDANSWERED

4.4. THE MORE SPECIFIC THE QUESTION, THE THE MORE SPECIFIC THE QUESTION, THE BETTER THE ANSWERBETTER THE ANSWER

TO MAKE SURVEY MORE USEFUL TO MAKE SURVEY MORE USEFUL REMEMBERREMEMBER

5.5. U HAVE ONLY ONE CHANCE & 15 MIN.U HAVE ONLY ONE CHANCE & 15 MIN.( max. time a customer will give to ( max. time a customer will give to respond a survey)respond a survey)

6.6. MORE TIME U SPEND IN SURVEY MORE TIME U SPEND IN SURVEY DEVELOPMENT, LESS TIME U GET IN DEVELOPMENT, LESS TIME U GET IN DATA ANALYSIS & INTERPRETATIONDATA ANALYSIS & INTERPRETATION

7.7. WHOME U ASK IS AS IMPORTANT AS WHOME U ASK IS AS IMPORTANT AS WHAT U ASKWHAT U ASK

8.8. BEFORE DATA ARE COLLECTED , U BEFORE DATA ARE COLLECTED , U SHOULD KNOW HOW U WANT TO SHOULD KNOW HOW U WANT TO ANALYSE & USE THE DATAANALYSE & USE THE DATA

FOCUS GROUPSFOCUS GROUPS

• POPULAR WAY TO OBTAIN FEEDBACKPOPULAR WAY TO OBTAIN FEEDBACK• SURVEYING A FOCUS GROUP IS A RESEARCH METHOD SURVEYING A FOCUS GROUP IS A RESEARCH METHOD

USED TO FIND OUT WHAT CUSTOMERS ARE REALLY USED TO FIND OUT WHAT CUSTOMERS ARE REALLY EXPECTINGEXPECTING

• GROUP OF CUSTOMERS IS ASSSEMBLED IN THE GROUP OF CUSTOMERS IS ASSSEMBLED IN THE MEETING ROOM TO COLLECT INFORMATIONMEETING ROOM TO COLLECT INFORMATION

• CAREFULLY PREPARED ANSWERS R ASKED BY SKILLED CAREFULLY PREPARED ANSWERS R ASKED BY SKILLED MODEARTORMODEARTOR

• WHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTS WHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTS PERCEPTIONS & COMMENTSPERCEPTIONS & COMMENTS

• PEOPLE SELECTED HAVE THE SAME PROFILE AS THE PEOPLE SELECTED HAVE THE SAME PROFILE AS THE EXPECTED CUSTOMEREXPECTED CUSTOMER

• FOCUS GROUPS R SOMETIMES USED WITHIN TE FOCUS GROUPS R SOMETIMES USED WITHIN TE ORGANIZATION TO ADDRESS INTERNAL ISSUES ORGANIZATION TO ADDRESS INTERNAL ISSUES

FOCUS GROUPS( IMPRINT ANALYSIS)FOCUS GROUPS( IMPRINT ANALYSIS)

• IMPRINT ANALYSIS IS AN EMERGING IMPRINT ANALYSIS IS AN EMERGING TECHNIQUE USED IN THE FOCUS GROUPSTECHNIQUE USED IN THE FOCUS GROUPS

• GOOD WAY TO OBTAIN INTRINSIC FEELING GOOD WAY TO OBTAIN INTRINSIC FEELING ABOUT THE PRODUCT/SERVICEABOUT THE PRODUCT/SERVICE

• FEELING R NOT EASILY OBTAINED FROM FEELING R NOT EASILY OBTAINED FROM THE CUSTOMERSTHE CUSTOMERS

• CUSTOMERS OFTEN HOLDBACK CUSTOMERS OFTEN HOLDBACK INFORMATIONS ON SURVEYINFORMATIONS ON SURVEY

FOCUS GROUPS (IMPRINT FOCUS GROUPS (IMPRINT ANALYSIS)ANALYSIS)

• WORD ASSOCIATION, DISCUSSIONS WORD ASSOCIATION, DISCUSSIONS & RELAXATION TECHNIQUES CAN & RELAXATION TECHNIQUES CAN IDENTIFY A CUSTOMERS EMERGING IDENTIFY A CUSTOMERS EMERGING NEEDSNEEDS

• IMPRINT ANALYSIS HELPS TO IMPRINT ANALYSIS HELPS TO UNDERSTAND THE HUMAN UNDERSTAND THE HUMAN EMOTIONS INVOLVED IN THE EMOTIONS INVOLVED IN THE PURCHASE DECISIONPURCHASE DECISION

TOLL FREE PHONE NO.TOLL FREE PHONE NO.

• EFFECTIVE TECHNIQUE FOR EFFECTIVE TECHNIQUE FOR COMPLAINT FEEDBACKCOMPLAINT FEEDBACK

• ORGANIZATION CAN RESPOND ORGANIZATION CAN RESPOND FASTER & CHEAPLY TO THE FASTER & CHEAPLY TO THE COMPLAINTSCOMPLAINTS

CUSTOMER VISITSCUSTOMER VISITS

• VISIT TO A CUSTOMERS PLACE OF VISIT TO A CUSTOMERS PLACE OF BUSINESS IS AN EFFECTIVE WAY TO BUSINESS IS AN EFFECTIVE WAY TO GATHER INFORMATIONGATHER INFORMATION

• ACCURATE INFORMATION OBTAINED ACCURATE INFORMATION OBTAINED –PEOPLE CAN SEE FIRST HAND HOW –PEOPLE CAN SEE FIRST HAND HOW THE PRODUCT IS PERFORMINGTHE PRODUCT IS PERFORMING

•REPORT CARDREPORT CARD

•THE INTERNET & THE THE INTERNET & THE COMPUTERCOMPUTER

• EMPLOYEES R UNTAPPED SOURCE OF EMPLOYEES R UNTAPPED SOURCE OF INFORMATIONSINFORMATIONS

• CONVENTIONALLY COMPANIES CONVENTIONALLY COMPANIES LISTEN MORE TO THE EXTERNAL LISTEN MORE TO THE EXTERNAL CUSTOMERS & LESS TO THE CUSTOMERS & LESS TO THE INTERNAL CUSTOMERINTERNAL CUSTOMER

• EMPLOYEES USUALLY PROVIDE EMPLOYEES USUALLY PROVIDE DEEPER INSIGHT INTO CONDITIOINSDEEPER INSIGHT INTO CONDITIOINS

EMPLOYEES FEEDBACKEMPLOYEES FEEDBACK

EMPLOYEES FEEDBACKEMPLOYEES FEEDBACK

• CUSTOMERS RESAERCH REVEALS CUSTOMERS RESAERCH REVEALS WHAT IS HAPPENINGWHAT IS HAPPENING

• EMLOYEES REASEARCH REVEALS EMLOYEES REASEARCH REVEALS WHY IT IS HAPPENINGWHY IT IS HAPPENING

• IT SHOULD BE REGULARLY IT SHOULD BE REGULARLY SOLICITED RATHER THAN CHECKING SOLICITED RATHER THAN CHECKING THE WOODEN BOX ANNUALLYTHE WOODEN BOX ANNUALLY

USING CUSTOMER USING CUSTOMER COMPLAINTSCOMPLAINTS

• THE FEEDBACK OBTAINED IN ALL ABOVE THE FEEDBACK OBTAINED IN ALL ABOVE CASES IS PROACTIVECASES IS PROACTIVE

• CUSTOMER COMPLAINT IS REACTIVE BUT CUSTOMER COMPLAINT IS REACTIVE BUT VERY USEFULVERY USEFUL

• ASQ SURVEYASQ SURVEY REVEALS THAT ABOUTREVEALS THAT ABOUT

1.1. 1.5%1.5% COMPLAINTS REACH TOP COMPLAINTS REACH TOP MANAGEMENTMANAGEMENT

2.2. 20%20% TO FRONT LINE PERSONNEL TO FRONT LINE PERSONNEL

3.3. 80%80% DON’T REPORT DON’T REPORT

• IT INDICATES THAT IT IS EASY FOR IT INDICATES THAT IT IS EASY FOR THE TOP MANGMNT TO THE TOP MANGMNT TO PERCEIVE PERCEIVE THAT EVERY THING IS OKTHAT EVERY THING IS OK

• WHEN SATISFIED CUSTOMERS R WHEN SATISFIED CUSTOMERS R INCLUDED IN THE DATA, NO. OF INCLUDED IN THE DATA, NO. OF COMPLAINTS TO MANGMNT IS COMPLAINTS TO MANGMNT IS LOWER THAN 1.5%LOWER THAN 1.5%

• FREQUENTLY DISSATISFIED FREQUENTLY DISSATISFIED CUSTOMERS DON’T SAY ANYTHING CUSTOMERS DON’T SAY ANYTHING & QUIETLY SWITCH OVER TO & QUIETLY SWITCH OVER TO COMPETITORCOMPETITOR

• THOSE WHO DONT COMPLAIN R THOSE WHO DONT COMPLAIN R THE ONE WHO SHOULD WORRY THE ONE WHO SHOULD WORRY THE ORGANIZATION MOSTTHE ORGANIZATION MOST

• BY TAKING THE POSITIVE BY TAKING THE POSITIVE APPROACH TO THE COMPLAINTS IT APPROACH TO THE COMPLAINTS IT IS POSSIBLE TO IMPROVE THE IS POSSIBLE TO IMPROVE THE PRODUCTS/SERVICESPRODUCTS/SERVICES

• IN FACT COMPLAINTS GIVE THE IN FACT COMPLAINTS GIVE THE ORGANIZATION A SECOND ORGANIZATION A SECOND CHANCECHANCE

• ONCE U HAVE IDENTIFIED THE ONCE U HAVE IDENTIFIED THE COMPLAINTS/ PROBLEMSCOMPLAINTS/ PROBLEMS

NOW TURN TO ELIMINATION.NOW TURN TO ELIMINATION.

INCORPORATE CUSTOMER VOICE INCORPORATE CUSTOMER VOICE INTO PRODUCT/ SERVICEINTO PRODUCT/ SERVICE

• GIVE CUSTOMER EXACTLY WHAT GIVE CUSTOMER EXACTLY WHAT CUSTOMER WANTSCUSTOMER WANTS

Mass CustomizationMass Customization

Mass customizationMass customization

• IN THE OUTSET, PRICE TAG ON SUCH IN THE OUTSET, PRICE TAG ON SUCH PRODUCTS WAS PROHIBITIVE, BUT PRODUCTS WAS PROHIBITIVE, BUT M.C PROVIDES THIS AT AFFORDABLE M.C PROVIDES THIS AT AFFORDABLE PRICEPRICE

• M.C IS RESULT OF FLEXIBLE M.C IS RESULT OF FLEXIBLE MANUFACTURING SYSTEM(FMS),JIT,& MANUFACTURING SYSTEM(FMS),JIT,& CYCLE TIME REDUCTIONCYCLE TIME REDUCTION

Mass customizationMass customization

• IN AUTOMOBILES IT IS SINCE MANY IN AUTOMOBILES IT IS SINCE MANY YEARSYEARS

• CUSTOMER MAY DETERMINE WHAT CUSTOMER MAY DETERMINE WHAT TYPE OF SEAT COVERINGS, COLOUR TYPE OF SEAT COVERINGS, COLOUR & STEREO SYSYTEM THEY WANT& STEREO SYSYTEM THEY WANT

• COMPUTER MFRs & ASSEMBLERS DO COMPUTER MFRs & ASSEMBLERS DO ITIT

–Modular designModular design

–Delayed differentiationDelayed differentiation

Mass customizationMass customization

MODULAR DESIGNMODULAR DESIGNIs a form of standardization in which Is a form of standardization in which component parts are subdivided into component parts are subdivided into modules that are easily replaced or modules that are easily replaced or interchanged. It allows:interchanged. It allows:

•Easier diagnosis and remedy of failuresEasier diagnosis and remedy of failures•Easier repair and replacement Easier repair and replacement •Simplification of manufacturing and Simplification of manufacturing and assemblyassembly DISADVANTAGEDISADVANTAGE:: Variety DecreasesVariety Decreases

Delayed differentiation is a Delayed differentiation is a postponement tacticpostponement tactic

• Producing but not quite completing Producing but not quite completing a product or service until customer a product or service until customer preferences or specifications are preferences or specifications are knownknown

DELAYED DIFFERENTIATIONDELAYED DIFFERENTIATION

DELAYED DIFFERENTIATIONDELAYED DIFFERENTIATION

““Over the Wall” ApproachOver the Wall” Approach

DesignMfg

New Product

CONCURRENT ENGINEERINGCONCURRENT ENGINEERING

Concurrent engineering Concurrent engineering is bringing together is bringing together marketing, engineering, marketing, engineering, manufacturing, purchasing, manufacturing, purchasing, service, packaging, etc. service, packaging, etc. people early in the design people early in the design phase.phase.

Design that results in products or Design that results in products or services that can function over a services that can function over a broad range of conditionsbroad range of conditions

ROBUST DESIGN

CUSTOMERS’ REQUIREMENTSCUSTOMERS’ REQUIREMENTS

• NORMAL REQUIREMENTSNORMAL REQUIREMENTS Are typically what Are typically what one gets by just asking customers what they one gets by just asking customers what they want.want.

• EXPECTED REQUIREMENTSEXPECTED REQUIREMENTS Are the obvious Are the obvious / compulsory requirements. For example, if / compulsory requirements. For example, if meal is served hot, customers barely notice it. meal is served hot, customers barely notice it. If it's cold or too hot, dissatisfaction occurs. If it's cold or too hot, dissatisfaction occurs. Expected requirements must be fulfilled.Expected requirements must be fulfilled.

• EXCITING REQUIREMENTSEXCITING REQUIREMENTSBeyond the customer's expectations. Beyond the customer's expectations. If provided , customer would be excitedIf provided , customer would be excitedIf not ,they would hardly complainIf not ,they would hardly complain

IN OTHER WORDSIN OTHER WORDS

• NORMAL REQUIREMENTSNORMAL REQUIREMENTS• MORE IS BETTERMORE IS BETTER

• EXPECTED REQUIREMENTSEXPECTED REQUIREMENTS• MUST BEMUST BE

• EXCITING REQUIREMENTSEXCITING REQUIREMENTS

DELIGHTENING,EXCITING, WOW FACTORDELIGHTENING,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?QUESTIONS?