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Measuring Customer Satisfaction

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I. …

I.
Be able to measure customer satisfaction.
i.
Understand the importance of measuring customer satisfaction.
ii.
Evaluate techniques of assessing customer response.
iii.
Design a customer satisfaction survey.
iv.
Review the success of a completed survey.

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  • 1. CUSTOMERSATISFACTIONMEASURING CUSTOMER SATISFACTION
  • 2. Learning ObjectivesI. Be able to measure customer satisfaction. i. Understand the importance of measuring customer satisfaction. ii. Evaluate techniques of assessing customer response. iii. Design a customer satisfaction survey. iv. Review the success of a completed survey. © 2013 Berlin Asong. All rights reserved. 2
  • 3. Learning ObjectivesI. Be able to measure customer satisfaction. i. Understand the importance of measuring customer satisfaction. ii. Evaluate techniques of assessing customer response. iii. Design a customer satisfaction survey. iv. Review the success of a completed survey. © 2013 Berlin Asong. All rights reserved. 3
  • 4. © 2013 Berlin Asong. All rights reserved. 4
  • 5. Learning ObjectivesI. Be able to measure customer satisfaction. i. Understand the importance of measuring customer satisfaction. ii. Evaluate techniques of assessing customer response. iii. Design a customer satisfaction survey. iv. Review the success of a completed survey. © 2013 Berlin Asong. All rights reserved. 5
  • 6. Think of a product or service you weren’t satisfied with. Assuming you have ceased your relationship withthe product or service. How much has that company lost in terms of sales? Let’s say the monthly service charge is £30. You ceased your relationship with the company in January 2010. How much has the company lost since then? © 2013 Berlin Asong. All rights reserved. 6
  • 7. BT provides fixed phone, broadband, TV and network IT services. The company tracks customer response to its services, service bundles and prices on a monthly basis. Why does BT track theattitude, satisfaction, engagement & buying patterns of customers?© 2013 Berlin Asong. All rights reserved. 7
  • 8. 1 It is important because… …customers drive the performance of a successful business. © 2013 Berlin Asong. All rights reserved. 8
  • 9. Theconsequencesofnotmeasuringcustomersatisfaction areimmeasurableespeciallyasonlinesocialmedialike YouTube,Facebook,Twitter,etc.giveusersthepowerto spreadgoodorbadpublicityaboutbrandsquickly.© 2013 Berlin Asong. All rights reserved. 9
  • 10. In 2010, Gap rebranded itself with a new logo. Customerresponded angrily to the new logo on Twitter, FB, YouTube, etc. Within 7 days the company reverted to the old logo. © 2013 Berlin Asong. All rights reserved. 10
  • 11. Lessonstobelearnt fromtheGaplogodebacle. Source: BBC (October 2010)© 2013 Berlin Asong. All rights reserved. 11
  • 12. 2 Measuring customer satisfaction is a… …means to determine how well a firm is meeting the needs of customers. …especially, against the competition. © 2013 Berlin Asong. All rights reserved. 12
  • 13. M&S (2012), “Annual Report and Financial Statements”. [Report] Retrieved 17 Dec. 2012, fromhttp://annualreport.marksandspencer.com/_assets/downloads/Marks-and-Spencer-Annual-report-and-financial-statements-2012.pdf © 2013 Berlin Asong. All rights reserved. 13
  • 14. 3 Measuring customer satisfaction can… …provide answers to marketing problems faced by a firm. © 2013 Berlin Asong. All rights reserved. 14
  • 15. 4 Measuring customer satisfaction helps to… …create a customer -centred culture. © 2013 Berlin Asong. All rights reserved. 15
  • 16. 5 Insights from customer satisfaction measurements… …can enable the firm build strong relationships with customers.Source: planpersonnel.co.uk © 2013 Berlin Asong. All rights reserved. 16
  • 17. 6 Measuring customer satisfaction… …shows marketing decisions are guided by analytics.Source: successfulworkplace.com © 2013 Berlin Asong. All rights reserved. 17
  • 18. Learning ObjectivesI. Be able to measure customer satisfaction. i. Understand the importance of measuring customer satisfaction. ii. Evaluate techniques of assessing customer response. iii. Design a customer satisfaction survey. iv. Review the success of a completed survey. © 2013 Berlin Asong. All rights reserved. 18
  • 19. WHAT? Customer Response to© 2013 Berlin Asong. All rights reserved. 19
  • 20. Customer response to… …product & service offerings.© 2013 Berlin Asong. All rights reserved. 20
  • 21. BT provides fixed phone, broadband, TV and network IT services. In what ways can BT assess customer response to its fixed phone services?© 2013 Berlin Asong. All rights reserved. 21
  • 22. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Mysteryshopping. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 22
  • 23. Techniques of Assessing Customer Response Advantages Sales Level Customer Follow-up Customer Complaint Satisfaction Survey© 2013 Berlin Asong. All rights reserved. 23
  • 24. Techniques of Assessing Customer Response Disadvantages Sales Level Customer Follow-up Customer Complaint Satisfaction Survey© 2013 Berlin Asong. All rights reserved. 24
  • 25. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 25
  • 26. Customer response ismeasured using sales figures. © 2013 Berlin Asong. All rights reserved. 26
  • 27. Using daily, weekly or monthly demand trends for a product or service to gauge customer response.Source: eniram.fi © 2013 Berlin Asong. All rights reserved. 27
  • 28. Merits of using… …sales level to assess customer response.© 2013 Berlin Asong. All rights reserved. 28
  • 29. 1 Because sales level denotes the actual intentions of buyers, it could indicate how well or bad a product or service is received.Source: eniram.fi © 2013 Berlin Asong. All rights reserved. 29
  • 30. Weak sales could indicate negative customer response, & vice-versa.© 2013 Berlin Asong. All rights reserved. 30
  • 31. Demerits of using… …sales level to assess customer response.© 2013 Berlin Asong. All rights reserved. 31
  • 32. 1 Strong sales doesn’t mean satisfied customers. © 2013 Berlin Asong. All rights reserved. 32
  • 33. 2 Sales level… …doesn’t tell which aspects of the service or product appeal to customers. © 2013 Berlin Asong. All rights reserved. 33
  • 34. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Mysteryshopping. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 34
  • 35. Chelsea fans wasted no time to vent their opposition to newly appointed Manager RafaBenitez replacing Di Mateo sacked in Nov. 2012 Source: staging.mg.co.za © 2013 Berlin Asong. All rights reserved. 35
  • 36. Source: kellaway.co.uk Returned goods © 2013 Berlin Asong. All rights reserved. 36
  • 37. Source: gresswell.co.uk© 2013 Berlin Asong. All rights reserved. 37
  • 38. Organisations that treasure the value of customer complaints… …provide customers the opportunities to do so.© 2013 Berlin Asong. All rights reserved. 38
  • 39. Online social media platforms like YouTube, Twitter, & Facebook empower customers to share & spread complaints far quickly. These platforms offer the opportunity to gather & monitor customers’ comments on products, services, brands, etc.© 2013 Berlin Asong. All rights reserved. 39
  • 40. Merits of using……customer complaints to assess customer response. © 2013 Berlin Asong. All rights reserved. 40
  • 41. 1 Customers volunteer to submit ideas. Firm obtains many ideas atSource: i.zdnet.com "little or no cost". © 2013 Berlin Asong. All rights reserved. 41
  • 42. 2 Customers complaints can specify aspects of the product or service that need improvement. Source: inc.com © 2013 Berlin Asong. All rights reserved. 42
  • 43. 3 Customers complaints can serve as a platform for constructive dialogue between customers and the firm.Source: blog.acteva.com Relationship building. © 2013 Berlin Asong. All rights reserved. 43
  • 44. 4 Complaints are effective in monitoring customer satisfaction on an on-going basis. Source: gresswell.co.uk © 2013 Berlin Asong. All rights reserved. 44
  • 45. Demerits of using……customer complaints to assess customer response. © 2013 Berlin Asong. All rights reserved. 45
  • 46. 1 I get fewer complaints from my customers. Is it an indicator of high customer satisfaction? © 2013 Berlin Asong. All rights reserved. 46
  • 47. NO. Why? I get fewer complaints from my customers. Is it an indicator of high customer satisfaction?© 2013 Berlin Asong. All rights reserved. 47
  • 48. 2 Excessive customer complaints… …require investment in complaint management systems (e.g. people, equipment, procedures & analytics). © 2013 Berlin Asong. All rights reserved. 48
  • 49. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Mysteryshopping. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 49
  • 50. After sales E.g. follow-up and customer query follow-up. Source: zoho.com© 2013 Berlin Asong. All rights reserved. 50
  • 51. The goal is to extract satisfaction from customers.Source: businessfinancestore.com © 2013 Berlin Asong. All rights reserved. 51
  • 52. Merits of using……customer follow-up to assess customer response.© 2013 Berlin Asong. All rights reserved. 52
  • 53. 1 Source: depts.ttu.edu It provides a personalisedapproach to customer care. …hence, the customer feels valued. © 2013 Berlin Asong. All rights reserved. 53
  • 54. 2 It offers the opportunity to learn more about the needs of customers. © 2013 Berlin Asong. All rights reserved. 54
  • 55. 3 It could offer new leads to products or services the customer may like or dislike.Source: jcostaphotos.com © 2013 Berlin Asong. All rights reserved. 55
  • 56. 4 It could serve as a platform for the firm to build "lasting" relationships with customers; hence retaining customers. © 2013 Berlin Asong. All rights reserved. 56
  • 57. Demerits of using……customer follow-up to assess customer response.© 2013 Berlin Asong. All rights reserved. 57
  • 58. 1 It requires investment in customer relationship management systems (e.g. people, equipment, procedures, database & analytics). © 2013 Berlin Asong. All rights reserved. 58
  • 59. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Mysteryshopping. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 59
  • 60. Customer satisfaction surveySource: profitabletotrain.com © 2013 Berlin Asong. All rights reserved. 60
  • 61. Merits of using… …survey to assess customer response.© 2013 Berlin Asong. All rights reserved. 61
  • 62. 1 Survey… …offers the flexibility to measure customer satisfaction on a range of product or service issues. © 2013 Berlin Asong. All rights reserved. 62
  • 63. The duration of customer satisfaction surveys can last between 60seconds to 60minutes.© 2013 Berlin Asong. All rights reserved. 63
  • 64. 2 It offers a snapshot understanding of customer satisfaction of a product or service. Source: ucsc-extension.edu © 2013 Berlin Asong. All rights reserved. 64
  • 65. M&S (2012), “Annual Report and Financial Statements”. [Report] Retrieved 17 Dec. 2012, fromhttp://annualreport.marksandspencer.com/_assets/downloads/Marks-and-Spencer-Annual-report-and-financial-statements-2012.pdf © 2013 Berlin Asong. All rights reserved. 65
  • 66. Demerits of using… …survey to assess customer response.© 2013 Berlin Asong. All rights reserved. 66
  • 67. 1 Surveys… …provide superficial answers to questions like "how & why are they satisfied". © 2013 Berlin Asong. All rights reserved. 67
  • 68. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Mysteryshopping. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 68
  • 69. Effective in monitoring services provided to customers. Source: conferoinc.com© 2013 Berlin Asong. All rights reserved. 69
  • 70. Effective in monitoring staff performance.© 2013 Berlin Asong. All rights reserved. 70
  • 71. Techniques of Assessing Customer Response Sales level. Customercomplaints. Customerfollow-up. Customersatisfactionsurveys. Mysteryshopping. Loyaltycard. Etc.© 2013 Berlin Asong. All rights reserved. 71
  • 72. Loyalty cards© 2013 Berlin Asong. All rights reserved. 72
  • 73. Merits of using… …loyalty card to assess customer response.© 2013 Berlin Asong. All rights reserved. 73
  • 74. Demerits of using… …loyalty card to assess customer response.© 2013 Berlin Asong. All rights reserved. 74
  • 75. Learning ObjectivesI. Be able to measure customer satisfaction. i. Understand the importance of measuring customer satisfaction. ii. Evaluate techniques of assessing customer response. iii. Design a customer satisfaction survey. iv. Review the success of a completed survey. © 2013 Berlin Asong. All rights reserved. 75
  • 76. How to design a customer satisfaction survey (questionnaire).Source: profitabletotrain.com © 2013 Berlin Asong. All rights reserved. 76
  • 77. Step One Decide the objectives of the customer satisfaction survey.© 2013 Berlin Asong. All rights reserved. 77
  • 78. What specifically do I want to measure?© 2013 Berlin Asong. All rights reserved. 78
  • 79. All or most customer satisfaction surveys seek to…1 …determinethe state of customersatisfactionordissatisfaction.2 …determineserviceorproductfeatures thataffectsatisfactionordissatisfaction.3 …determinelinks betweencustomercharacteristics& satisfactionlevels.4 …determinelinks betweencustomercharacteristics& satisfactionlevelstospecific productorservicefeatures. © 2013 Berlin Asong. All rights reserved. 79
  • 80. Having specific objectives is so important as they … …determine the type of questions to include in your questionnaire.© 2013 Berlin Asong. All rights reserved. 80
  • 81. Step Two Write down the questions to ask your respondents.© 2013 Berlin Asong. All rights reserved. 81
  • 82. What type of questions to ask?© 2013 Berlin Asong. All rights reserved. 82
  • 83. Open-ended Questions Close-ended Questions Rating scales questions. Multiple-choice questions. Dichotomous questions. © 2013 Berlin Asong. All rights reserved. 83
  • 84. Close-ended Question: Rating scale How would you rate the attention your lecturers provide to you? Excellent Very good Good Poor Very poor© 2013 Berlin Asong. All rights reserved. 84
  • 85. Close-ended Question: Rating scale How satisfied are you with Rim’s lectures? Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied© 2013 Berlin Asong. All rights reserved. 85
  • 86. Close-ended Question: Rating scale How satisfied are you with Rim’s lectures? Very unsatisfied Very satisfied 1 2 3 4 5 5-point scale© 2013 Berlin Asong. All rights reserved. 86
  • 87. Close-ended Question: Rating scale How important that you can choose the date and time to attend lectures?Not very important Very important 1 2 3 4 5 6 7 8 9 10 10-point scale © 2013 Berlin Asong. All rights reserved. 87
  • 88. Close-ended Question: Multiple-choice Which of the following features of Rim’s lectures do you most like? Choose up to three. She’s very knowledgeable She refers to students by their names She provides assignment feedbacks quickly She explains concepts clearly in ways that is easy to understand She is very approachable (other)________________________© 2013 Berlin Asong. All rights reserved. 88
  • 89. © 2013 Berlin Asong. All rights reserved. 89
  • 90. Close-ended Questions: Dichotomous Did you attend all the 10 lessons for Marketing Intelligence held between Oct. 2012 and Dec. 2012? Yes No Would you recommend our product or service to friends? Yes No Please enter your gender: Female Male© 2013 Berlin Asong. All rights reserved. 90
  • 91. Open-ended Question Why are you "very unsatisfied" with Rims lectures?© 2013 Berlin Asong. All rights reserved. 91
  • 92. Ensure questions are properly worded. your Use simple and concise words that respondents can understand. Testingquestionnaire with respondents could eliminate question-errors and bias questions. © 2013 Berlin Asong. All rights reserved. 92
  • 93. Step Three Arrange the order of questions in a logical & transitional manner.© 2013 Berlin Asong. All rights reserved. 93
  • 94. Group questions of the same topic in one section like so…© 2013 Berlin Asong. All rights reserved. 94
  • 95. Use suitable headingsUse suitable headings Source: sn.curtin.edu.au © 2013 Berlin Asong. All rights reserved. 95
  • 96. Overall Layout Survey Title A statement explaining the purpose of the survey to respondents. State survey duration. Thank respondent for agreeing to participate in the survey. Questions Demographic questions A closing statement reassuring the respondents of the survey purpose. Thank respondent for participating in the survey.© 2013 Berlin Asong. All rights reserved. 96
  • 97. © 2013 Berlin Asong. All rights reserved. 97
  • 98. © 2013 Berlin Asong. All rights reserved. 98
  • 99. © 2013 Berlin Asong. All rights reserved. 99
  • 100. You can also use tools or platforms like… …surveymonkey.com and Adobe Forms to design surveys.© 2013 Berlin Asong. All rights reserved. 100
  • 101. © 2013 Berlin Asong. All rights reserved. 101
  • 102. © 2013 Berlin Asong. All rights reserved. 102
  • 103. Learning ObjectivesI. Be able to measure customer satisfaction. i. Understand the importance of measuring customer satisfaction. ii. Evaluate techniques of assessing customer response. iii. Design a customer satisfaction survey. iv. Review the success of a completed survey. © 2013 Berlin Asong. All rights reserved. 103
  • 104. What makes a successful survey?© 2013 Berlin Asong. All rights reserved. 104
  • 105. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 105
  • 106. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 106
  • 107. Was the survey completed within the set time-frame? If not; why?Source: isitthattime.com © 2013 Berlin Asong. All rights reserved. 107
  • 108. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 108
  • 109. Was it completed within budget? Wasthe survey impacted by limited funding? © 2013 Berlin Asong. All rights reserved. 109
  • 110. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 110
  • 111. Measured in terms of number of filled questionnaires. Source: blog.shareaholic.com© 2013 Berlin Asong. All rights reserved. 111
  • 112. 1000 questionnaires were sent out, but only 890 filled questionnaires were returned. What is the response rate?© 2013 Berlin Asong. All rights reserved. 112
  • 113. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 113
  • 114. The number of questions that ought to have been answered.Source: profitabletotrain.com © 2013 Berlin Asong. All rights reserved. 114
  • 115. © 2013 Berlin Asong. All rights reserved. 115
  • 116. © 2013 Berlin Asong. All rights reserved. 116
  • 117. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 117
  • 118. Regardless whether a survey is completed on time, within budget or has a high response rate, success is ultimately judged by… …reliable & valid findings. Reliability Internal validity External validity Construct validity© 2013 Berlin Asong. All rights reserved. 118
  • 119. Criteria for Reviewing the Success of A Completed Survey Time. Cost. Response rate. Questioncompletionrate. Reliability andvalidity offindings. Degree towhichsurveyfindings solve“the problem”.© 2013 Berlin Asong. All rights reserved. 119
  • 120. One conducts a survey for a purpose; to understand a problem; to seek solution to a problem; to improve existing services or product; etc.© 2013 Berlin Asong. All rights reserved. 120
  • 121. © 2013 Berlin Asong. All rights reserved. 121