CUSTOMER SATISFACTION

“ONE CUSTOMER WELL TAKEN CARE OF COULD BE MORE

VALUABLE THAN $10,000 WORTH OF ADVERTISING”
They are the greatest need of any
organization.
Someone who buys goods and services
from a business.
They are the person who has a particular
quality.
Every organization needs a PDCA
Plan for satisfying customers
Implement the identified measures to satisfy them
Check whether they are really satisfied
If not take corrective action
If so take preventive action
Revisit the plan
Service Quality
The definition of service as per the
international standard ISO 9000 follows
“The result generated by the activities at the
interface between the organization and the
customer and by the organization’s internal
activities, to meet the customer needs”.
The result generated in the case
is product. However in the case of
the service, it maybe a product or
may not be the product. The
definition of product could be
understood by visualizing a few
common service.
Importance of Service
According to Deming, in the USA, 75% of the
people are employed in service organizations. In
addition, even in the manufacturing industries,
some people are engaged in providing service. If
this is also taken into account, 86% of person are
engaged in providing service.
 Services
Features of
 Speed
 Delivery Schedule
 Care in Handling
 Each service Offering is
Different
 Customer Requirements are
Difficult to Comprehend
 Difficulty in Estimating Cost
 Services
Features of
Difficulty in Measuring
Performance of service
Difficulty in Marketing
Service
Difficulty in Measuring
Customer Satisfaction
Psychology of Customer
Customer Delight
Business thrives to customers
•the customer is the very reason for
being in business. Profits can be reaped
only if n organization has customers
who will pay for the product or service
on a continuing basis.
 Customer Attrition
•Some organization may be able to attract new
customer, but existing customer may leave.

“if the product is good then customer will come

back (again),
if not the product will come back (return)”
Tom peters
15% because of quality problems
15% because of higher price
70% did not enjoy doing business
with the organization.
  50% of Problems are Due to
Misunderstood requirements.
One of the major problems in the industry is identifying
the real requirements of the customers. This statistic may
also apply equally to any other service industries.
Therefore, every effort made by the Customer Contact
Personnel is to identifying not only the needs but also the
implied customer requirements.
Quality service/ product characteristics

requirements
Contractual
Time schedule for delivery
Price
Services such as responsibility for
installation service during warranty and
post warranty, etc.
Training support
 requirement
Non Contractual
Quality (not documented)
Implied requirements
Value for money spent
Environment of conducting
business and the friendliness of the
customer service personnel of the
organization, etc.
 Delighting customer
The organization should be familiar with the
general human nature and try to understand the
hidden requirements of the customer. It may be
helpful to carry out a market survey and find out
the additional small things that are delivered by
the competitors.
Customer Contact Personnel
The customer orientation dictates that customer contact
personnel should be specifically chosen. There should be
always be a separate set of people to talk and accept
orders from the customers.
The customer contact personnel should have pleasant
and persuasive skills.
C – Caring

COMFORT
O – Observant
M – Mindful
F – Friendly
O – Obliging
R – Responsible
T – Tactful
 The KANO Model
In the late 1970’s, Dr. Nariaki Kang of Tokyo Rika
University came out with the interesting and
practical model for understanding customer
satisfaction, known as the Kano Model. He
developed the model from Hertzberg’s Motivator –
Hygiene Theory.
 performance

Bad Good

Customer Satisfaction

Bad Good

One dimensional Models for Quality

 Satisfaction

Good

Performance

Two Dimensional
Quality Model
 KANO MODEL

Customer Satisfaction Excitement Quality

Absent Product function Fully Implemented

Performance Quality

Threshold (Basic) Quality

Basic Quality – also called threshold quality. If the function
are not implemented as agreed, then t result in lower
customer satisfaction
Customer Complaints
Warranty Data
Product Retails
Number of Lawsuit
Things Gone Wrong
Other failure report
 Performance Quality
This measures satisfaction proportionate to the
performance of the product. It attributes cause linear
response. Increased levels of achievements cause
increased levels of satisfaction.

“the rule is, better the performance, the greater the

satisfaction”
 Excitement Quality
Excitement is generated because the customer
received some feature of attribute that they
didn’t expect or think of. Customer generally do
not articulate excitement attributes in customer
survey because they do not know that they
want them.
Therefore, organization have to identify the ff:
Basic features, which must be provided, which if not
provided, will dissatisfy the customer.
The features, which give linearly proportional
customer satisfaction.
The features that will excite the customers and give
exponential increase in customer satisfaction.
Agreed customer requirements
Invest Time for Understanding Customers’ Satisfaction
Find out the Right Requirements First
• Customer may not be available till the delivery time
• Ego interfering with communication
• Too busy with other jobs in hands
• Belief that communication may lead to more work without additional
payments
• Due to fear of creating bad reputation for the organization
• Fear of senior management coming to know about the “problem”
 Find out the Right Requirements First
•Belief that communication may lead to more
work without additional payments
•Due to fear of creating bad reputation for the
organization
•Fear of senior management coming to know
about the “problem”
Checklist for Eliminating
Communication Gap
Review the Contract/Requirements
Foresee and Provide for Amendments
Document Policy
Code of Good Customer Handling
Practices
 Customer Perceived Quality
Importance of Measuring Customer Satisfaction
No Hard and Fast Rule for Identifying Measures
Identify Vital Few Measures
Arrive at Quantitative Indices
Some Measures for Customer Satisfaction
  Customer Perceived Quality
◦Defects in product in delivery
◦Number of requirements fulfilled
◦Numbers of misunderstood requirements
◦Frequency of defects (mean time between
failures)
◦Time taken for repair (mean time to repair)
  Response Time
Some of the parameters pertaining to response
time.
•Delay in delivery
•Delay in installation
•Promptness in service
•Time taken for attending service calls
•Number of reminders the customer made to
his service provider
•Response in time of the organization for the
customer’ additional requirement after
delivery

Errors in Documentation
Errors in Delivery
Delay in Execution
1. Postpone the RDC
2. Compromise on the Quality
Delay in Delivery
Measures Everyone’s
Satisfaction
How to overcome difficulties in
measuring customer satisfaction?
A brainstorming session with as
many employees as possible
should be held to find out the
factors which are important for
customer satisfaction.
Case study 1
Customer Satisfaction Survey of ETDC, Chennai
Electronics Test and Development Center (ETDC)
Chennai, India is engaged in testing and calibration
of electronics products. As a part of their TQM
initiative decided to measure customer satisfaction
index (CSI) in the year 1996.
After brainstorming with senior executive, the
following 4 parameters were identified to measure CSI
1.Promptness of service (P1)
2.Quality of Customer Service (P2)
3.Quality of Testing and Calibration (P3)
4.Quality of Test and Calibration Reports (P3)
Assume that ranking of 10 customers with
report to promptness of service
Rank No of respondents
5 (excellent) 7
4 1
3 1
2 1
1 (poor) 0

CSI for Promptness = 5 x 7 + 4 x 1 + 3 x 1 + 2 x1 =44/10 = 4.4

10
 In this manner, the CSI was expressed in terms of the 4 parameters.
This exercise was repeated year thereafter and the result and the result
every three years are summarized.
Year P1 P2 P3 P4

2000-2001 3.55 3.76 3.96 3.83

2001-2002 4.27 4.11 4.19 4.04

2002-2003 4.36 4.2 4.33 4.3

Case Study 2
Customer Satisfaction Survey Of Mercedes Benz
Mercedes Benz has published their CSI for month of April 2003 on the internet as given below.

MBCV Dealer Sales Service Overall

Cape Town 85.19 88.3 86.745

Centurion 81.57 84.82 83.25

Roodepoort 96.36 86.28 91.32

Customer Feedback And Complaints
Resolution
Customer Feedback
Feedback Forms
•Confidentiality
•Display Result
Complaints Resolution
Analyze Independently
Give Benefit of Doubt to Customer
Satisfying Annoying Customer

Complaint Recovery
Process