Customer satisfaction is a part of qualitative pillar of TQM. It is dynamic in nature and is subjective concept because it varies from person to person. Customer satisfaction has become one of the most integral or essential part of any business. In today's market, companies look at it as their business strategies or as their business requirement. In this lecture we will study some basic concepts of customer satisfaction and different methodologies that have been evolved over a period of time.
Who is the customer? One who uses the product or service, the one who purchases the product or service or the one who influences the product or service. Two types of customers: Internal customers External customers
Customer satisfaction Model: (Teboul Model) Company offer Customer needs (product or service) Customer satisfactionNeeds not fulfilled Total satisfaction is achieved when offer matches the need i.e. circle is superimposed on the square
Customer perception of quality: An American Society for quality (ASQ) survey on customer perception about quality of product or service shows the following ranking.1. Performance2. Features3. Service4. Warranty5. Price6. Reputation
Service organizations and customer satisfaction• Difficult but not impossible• Determine key performance indicators• Set Targets – SMART goals• Make teams• Analyze them on weekly basis• Standardize• Sustain
Categories of customers:Angry customersDemanding customersPassive customers
Difference between ……… Good service Bad service Excellent service
Good Customer Service Good service is when the customer getstreatment that meets his/her expectations. Customer What Customer Expectation receives
Bad Customer ServiceBad Service is when customer gets treatment which is less than his/her expectations Customer What Customer Expectation receives
Excellent Customer ServiceWhen the customer gets a little more than what he/she expected, Good Service becomes Excellent Service + Customer What Customer Expectation receives
Kano Model: (Dr.Nariaki Kano) Kano model distinguishes between three types of product or service requirements which influence customer satisfaction in different ways when met.1. Basic attributes2. Performance attributes3. Excitement attributes
1. Basic Needs – Dissatisfiers A dissatisfiers is a product or service characteristics that the customer takes for granted. Absence of basic attributes results in extreme customer dissatisfaction. Customer complaints are the primary source of information on existing dissatisfiers in our current product or service.
2. Performance Needs – Satisfiers A satisfier is something that customer want in their product or service, and usually ask for it. Better the performance more will be the customer satisfaction. They are easy to measure and they become the benchmarks used for competitive analysis.
3. Excitement Needs – Delighters A delighter is unspoken or unexpected requirement of a customer and can result into high level of customer satisfaction. Delighters are sometimes called exciting quality. Absence of delighter doesn’t result into customer dissatisfaction while its presence can help in enhancing customer satisfaction.
Customer Characteristics:1. Innovatorso Representing about 3 % of the marketo They are the first to adopt an innovationo Young, high social status, good financial shape, broad social relationshipo Rely on non personal sources of info. Such as advertisement.
2. Early adopters:o Comprising about 13 % of the marketo They purchase a new product or service after innovators but sooner than other consumerso High social statuso Sales people are used as info. sources3. Early Majority:o Comprising about 34 % of the marketo This group is above average in social & economic measureso Rely on ads, sales person & contact with early adopters
4. Late Majority :o Representing about 34 % of the marketo Adopt an innovation to save money or in response to social pressure from their peerso Rely on members of the early & late majorities as source of info.5. Laggards:o Comprising about 16 % of the marketo Last to adopt an innovationo Older & usually are at the low end of the social & economic scales