4. Customer
Customer can be anyone –
An individual
An entity
A group
Supplier, Manufacturer, Employee, Industry, or
Government
“Customer is the King of Market”
5. Why companies need to
understand their customers?
Revenue Generation
Strategy and Policy formulation
Creating Brand Image
Maintain long term sustainability
Beat the competition
Better innovations
Identify potential customers
Forecast future opportunities.
6. What steps could be taken to
understand Customer’s needs?
Market Research
Know Your Customers (KYC)
Customer Relationship Management
Better Employee Relationship
7. Employee
“Our assets walk out of the door each evening.
We have to make sure that they come back the
next morning. – Narayana Murthy”
A crucial asset,
A person working for organization in return of
monetary benefits,
Can be permanent or temporary,
8. How motivated employees are
more beneficial?
“Poorly motivated people can nullify the soundest
organization. – Allen”
Increased Productivity
Better outcomes
Long term commitments
Less effort on monitoring
Innovative ideas
Dedicated workforce
Time effective results.
9. How to motivate them?
Better communication
Recognition & Reward
Quality of Work life
Leaders/ Managers Role
12. Satisfaction?
3 Equations:
If P < E = dissatisfied
If P = E = satisfied
If P > E = highly satisfied/ delighted,
where, P = Perceived value, E = Expected value,
Case I: The expectations were higher and not meet, in
such case the level of satisfaction is very low and the
person remains dissatisfied.
Case II: The actual value received meets the expectations
and the person reaches to the stage of satisfaction.
Case III: The outcome perceived was way too larger than
the individual’s expectations, in such case they feel
delighted and more than satisfied.
14. Components of Customer
Satisfaction
Quality,
Value,
Timeliness,
Ease of Access,
Environment,
Interdepartmental Teamwork,
Front Line Service Behaviors,
Commitment to the Customers, and
Innovation.
16. Components of Employee
Satisfaction
Compensation,
Challenge & Opportunity,
Sense of Accomplishment,
Belongingness,
Work/life Balance,
Safety & welfare at workplace,
Career Growth,
Recognition.
17. Employee & Customer
Satisfaction: Interlinked
Employee plays vital role in customer
satisfaction
Heskett’s model of “Service Profit
Chain”
18. Service profit Chain
A pictorial presentation:
(Source: http://www.1000ventures.com/business_guide/im_s-p_chain.html)
19. Facts & Figures:
1. Companies with highly engaged employees outperform
their competitors by 147%.
2. Companies that excel at customer experience have 1.5
times more engaged employees than companies with poor
customer experience.
3. Companies that invest in employee experience are 4 times
more profitable than those who don’t.
(Source 1: www.gallup.com/services/190118/engagedworkplace)
(Source 2: www.experiencematters.blog/2016/02/16/report-employee-engagement-benchmark-study-2016)
(Source 3: www.blog.wellable.co/2017/04/19/employee-experience-delivers-roi)
20. Example :
GOOGLE
Google is a internet
search Engine.
It has scored 83.6 in
American Customer
Satisfaction Index
(ACSI) Score of year
2018.
It has been highly
ranked on Glassdoor’s
best place to work
Survey.
Chick-Fil-A
It is a Limited
Service Restaurant.
It has scored 83.6 in
American Customer
Satisfaction Index
(ACSI) Score of year
2018.
Its employees were
rated “the most polite
in their industry
category”.
(Source: https://www.forbes.com/sites/christopherelliott/2018/07/11/these-
companies-have- the-best-customer-services-here-why/amp/ )
21. Findings:
Employee’s major contributions in
Customer Satisfaction
Quality delivery
Problem solving
Ethical response
Psychological &Emotional understanding
Customer experience
22. Does employees satisfaction actually
impact customer’s satisfaction??
Favor
Surveys and data
supported.
The service
industry is highly
influenced with
employees work
and behavior.
Against
Job Insecurity
There are few manufacturing units
which totally depends upon technology
and production, and thus is
comparatively very less affected by
employee’s on productivity.
Emergence of AI
James A Harrington showed in his
research that Employee satisfaction was
not a major factor for customer
satisfaction.
A Northwestern University study found
a weak relationship between the two for
100 companies in media industry.
(source: http://customerstrategy.net/employee-customer-satisfaction)
23. Conclusion:
Companies nowadays are customer-oriented.
Customer retention, satisfaction and loyalty is
important for long run.
The employee and customer relation are highly
interlinked.
Satisfied employees influence and contribute
towards customers satisfaction.
A focus should be on employee engagement.
Organizations need to balance between its
resources for ultimate goal of growth &
sustainability.