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Customer satisfaction and service quality


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The purpose of this presentation is to obtain a better understanding of the extent to which service quality is delivered within the service sector service by drawing on front-line employees (FLE) and customer perceptions of service quality. The PPT shown how closely customer expectations of service and FLE perceptions of customer expectations match. SERVQUAL is used to measure service quality amongst FLE and customers in a major service sector department.

Published in: Services
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Customer satisfaction and service quality

  1. 1. Customer satisfaction and service quality Md.Badruzzaman 1Md.Badruzzaman
  2. 2. Definition of Customer Service • You never want to hear this when you own a business: "Our customers are revolting! They are demanding more for less and want world class products and services and they want it now. If we can't provide what they want, they will find some one who can. We must provide great customer service." One of the best customer service definitions I have come across is: excellent customer service (is) the ability of an organization to constantly and consistently exceed the customer's expectations 2Md.Badruzzaman
  3. 3. Customer Customer Quality of Service Expectation-Perception Customer Satisfaction Mission or Goals of Company??? Customer is the most important person He is not depend on us , rather we depend him He is never an interruption to work rather he is the purpose In serving him the company does no favor to him rather he obliges by providing an opportunity to serve him/her. He is not someone to argue bcz no one can win argument to him 3Md.Badruzzaman
  4. 4. Customer satisfaction Definition: what customer expects and how he perceives that service received lived up to those expectations. Service satisfaction=(customer) expectation-perception (of customer) Objective satisfaction is reduction of the discrepancy between the current situation and the desired situation Depend more on customer & his style than technology or system 4Md.Badruzzaman
  5. 5. Md.Badruzzaman 5 ◊ Overall post purchase evaluation lead to satisfaction/dissatisfaction ◊ A state of experience: intellectual & emotional patron-centered personal reaction/response depend on (1) perception (2) view point (3) experience (4) expertise ◊ Satisfying a person differs from satisfying a need : long term customer satisfaction is the aim. Customer satisfaction cont....
  6. 6. Md.Badruzzaman 6 Customer satisfaction cont....  Customer’s exceptions tell what to sell and serve (user requirement)  Customers perceptions of service tell how to sell, serve and satisfy users behaviors, attitude, preference, e.t.c) as they vary over time and from person it has to be on continuous basis  Perception is a conscious thought process, it consist of sensory perception, association, evaluation & decision  Individual perception is all encompassing (hopes, fear, upper limits) and all powerful.  User perception goes deep and when it comes to perception feelings are facts
  7. 7. Customer satisfaction cont....  People like to hold on old ideas and beliefs as though they were valued personal possessions. It requires original thinking which hurts because of considerable effort, self-analysis and risk to adopt new idea.  People who do not rethink their past have habitual behavior. The only people who can change their mind are those who use it  Satisfaction has a linear relation to loyalty and repeat purchase.  Measuring satisfaction is part of research method. Psychometric factors, practical considerations, choice of scales, administration of questionnaire, etc are used. 7Md.Badruzzaman
  8. 8. Customer satisfaction in Orgz. • 1. Expectation  Image of symphony helps to determine exception  Advertisement & casual conversations affect image  Image is redefined based on immediate impact when service is approached  Previous experience has powerful influence  Regular customers have more realistic expectations 8Md.Badruzzaman
  9. 9. Md.Badruzzaman 9 2. Perception  Single incident can changes in other interactions  To improve: involve customers genuinely  Strives for a service wide image of consistency and efficiency 3. Demand  Satisfaction and demand are closely linked  Good service generate greater use from limitless pool of latency demand  Satisfaction is adaptive: good service over stretched causes drop in satisfaction ;poor service retain some customers who are persistent, rarely satisfied and having low expectations.  The rating further go down as service improves because of attracting more customers, who are more critical, want even higher level of service, & more knowledgeable Customer satisfaction in Orgz…
  10. 10. Types of customers & reasons for dissatisfaction 10Md.Badruzzaman Major reason for customer dissatisfaction -service provided in a careless & unprofessional manner -treated like an object rather than individual -service not performed correctly for the first time Service performed incompletely with harmful results -things were worse after service than before -treated with extreme rudeness Customer behavior in response to unsatisfactory service experience -decided to quit -warned family and friends -contacted the company to complain Types of customers -Happy-go-lucky -Know-it-all -Proud and in a hurry -angry and anxious -Nervous Why customers quit??? -Die Move away -From other friendship -Product service dissatisfaction Indifferent attitude of service personnel/employee
  11. 11. • What do complaining customers want??? To be taken seriously and to be treated with respect Immediate action feeling or words from your heart Compensation apology Clear up the problem To be listened to • Expectation of your customers (96%) are reasonable Listen to them You will “Fight” for them You will “Feel” for them • Customer service Customer service-your best sale tool Customers must be given the best possible service Customer satisfaction requires a professional work culture Advertise makes promises, but only people can keep them. 11Md.Badruzzaman
  12. 12. How to make Customer Happy?? (How to sell, serve, & satisfy customers) • Selling Have empathy Customer is boss Customer is profit not overhead Give importance to people (service employees & customers) Create customers Communicate continuously • Serving Focus on Be customer oriented Develop customer oriented policies Give best possible service Customer wants answers & solutions to their problems Fight for your customer • Satisfying Listen Visit customer Check employee’s attitude towards customers Solve the problems Learn from dissatisfied customers. 12Md.Badruzzaman
  13. 13. What is Service Quality ? Product-based: User-based: Manufacturing-based: Transcendent: Quality = Excellence. Recognized only through experience Quality is precise and measurable Quality lies in the eyes of the beholder Quality is in conformance to the firm’s developed specifications 13Md.Badruzzaman
  14. 14. • COMPONENTS OF SERVICE QUALITY Service Quality Reliability Assurance Empathy Tangibles Responsiveness 14Md.Badruzzaman
  15. 15. The 5 Dimensions Defined After extensive research, Zeithaml, Parasuraman and Berry found five dimensions customers use when evaluating service quality. They named their survey instrument SERVQUAL. In other words, if providers get these dimensions right, customers will hand over the keys to their loyalty. Because they’ll have received service excellence. According to what’s important to them. The five SERVQUAL dimensions are: • TANGIBLES-Appearance of physical facilities, equipment, personnel, and communication materials • RELIABILITY-Ability to perform the promised service dependably and accurately • RESPONSIVENESS-Willingness to help customers and provide prompt service • ASSURANCE-Knowledge and courtesy of employees and their ability to convey trust and confidence • EMPATHY-Caring, individualized attention the firm provides its customers 15Md.Badruzzaman
  16. 16. What’s this mean for service providers? • #1 Just Do It RELIABILITY: Do what you say you’re going to do when you said you were going to do it. Customers want to count on their providers. They value that reliability. Don’t providers yearn to find out what customers value? This is it.It’s three times more important to be reliable than have shiny new equipment or flashy uniforms. Doesn’t mean you can have ragged uniforms and only be reliable. Service providers have to do both. But providers first and best efforts are better spent making service reliable. Whether it’s periodic on schedule, on-site response within Service Level Agreements (SLAs), or Work Orders completed on time. 16Md.Badruzzaman
  17. 17. #2 Do It Now RESPONSIVENESS: Respond quickly, promptly, rapidly, immediately, instantly. Waiting a day to return a call or email doesn’t make it. Even if customers are chronically slow in getting back to providers, responsiveness is more than 1/5th of their service quality assessment. Service providers benefit by establishing internal SLAs for things like returning phone calls, emails and responding on-site. Whether it’s 30 minutes, 4 hours, or 24 hours, it’s important customers feel providers are responsive to their requests. Not just emergencies, but everyday responses too. 17Md.Badruzzaman
  18. 18. #3 Know What Your Doing • ASSURANCE: Service providers are expected to be the experts of the service they’re delivering. It’s a given. SERVQUAL research showed it’s important to communicate that expertise to customers. If a service provider is highly skilled, but customers don’t see that, their confidence in that provider will be lower. And their assessment of that provider’s service quality will be lower. • RAISE CUSTOMER AWARENESS OF YOUR COMPETENCIES Service providers must communicate their expertise and competencies – before they do the work. This can be done in many ways that are repeatedly seen by customers. By communicating competencies, providers can help manage customer expectations. And influence their service quality assessment in advance. 18Md.Badruzzaman
  19. 19. #4 Care about Customers as much as the Service • EMPATHY: Services can be performed completely to specifications. Yet customers may not feel provider employees care about them during delivery. And this hurts customers’ assessments of providers’ service quality. • SERVICE DELIVERY MATTERS Providers’ service delivery can be as important as how it was done. Provider employees should be trained how to interact with customers and their end- users. Even a brief session during initial orientation helps. Anything to help them understand their impact on customers’ assessment of service quality. 19Md.Badruzzaman
  20. 20. #5 Look Sharp TANGIBLES: Even though this is the least important dimension, appearance matters. Just not as much as the other dimensions. Service providers will still want to make certain their employees appearance, uniforms, equipment, and work areas on-site (closets, service offices, etc.) look good. The danger is for providers to make everything look sharp, and then fall short on RELIABILITY or RESPONSIVENESS. 20Md.Badruzzaman
  21. 21. • The 5 Service Dimensions Customers Care About 21Md.Badruzzaman
  22. 22. The gaps model of service quality Consumer Past experience Expected service Perceived service Service delivery (including pre- and post- contacts) External communications to consumers Translations of perceptions into service quality specifications Management perceptions of consumer expectations GAP 5 GAP 3 GAP 2 GAP 1 GAP 4 Personal needs Word-of-mouth communications 22Md.Badruzzaman
  23. 23. • Gap-1 Customer’s expectations Company’s perceptions of customer expectations • Inadequate marketing research orientation • Lack of upward communication • Insufficient relationship focus • Inadequate service recovery Reasons for provider gap I 23Md.Badruzzaman
  24. 24. • Gap-2 Translation of perceptions into service quality specifications Management perceptions of customer expectations • Poor service design • Absence of customer-defined service standards • Inappropriate physical evidence and servicescape Reasons for provider gap 2 24Md.Badruzzaman
  25. 25. Service delivery Customer-driven service designs and standards Reasons for provider gap 3 • Poor human resource policies • Failure to match supply and demand • Customer not fulfilling their roles • Problems with service intermediaries Gap-3 25Md.Badruzzaman
  26. 26. • Gap-4 External communications to consumers Service delivery • Lack of integration of marketing communications • Inadequate management of customer expectations • Overpromising • Inadequate horizontal communications Reasons for provider gap 4 26Md.Badruzzaman
  27. 27. • Gap-5 • Not knowing what customers expect • Not selecting the right service standards and designs • Not delivering to service standards • Not matching performance to promised Customer expectations Customer perceptions Reasons for Customer Gap 5 27Md.Badruzzaman
  28. 28. Closing the gaps • Gap 1: Learn what customers expect • Gap 2: Establish the right service quality standards • Gap 3: Ensure that service performance meets standards • Gap 4: Ensure that delivery matches promises 28Md.Badruzzaman
  29. 29. 1. : Learn what customers expect • Understand customer expectations • Improve communication between frontline staff and management • Turn information and insights into action 2.Establish the right service quality standards • Set, communicate, and reinforce customer-oriented service standards for all work units • Measure performance and provide regular feedback • Reward managers and employees 29Md.Badruzzaman
  30. 30. 3.Ensure that service performance meets standards • Clarify employee roles • Train employees in priority setting and time management • Eliminate role conflict among employees • Develop good reward system 4.Ensure that service delivery matches promises • Seek input from operations personnel on what can be done • ‘Reality’ advertising • real employees, real customers, real situations • Seek input from employees on advertising • Gain communications between sales, operations and customers • Internal marketing programs • Ensure consistent standards in multi-site operations Can I take your order? 30Md.Badruzzaman
  31. 31. Thanks For Your Time 31Md.Badruzzaman