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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 satisfaction
Needs 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.   Performance
2.   Features
3.   Service
4.   Warranty
5.   Price
6.   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
Why customers leave?

                       Others, 9%
 Better prices
elsewhere, 9%




    Product
dissatisfaction,                          Poor service 69%
      13%
Categories of customers:



Angry customers




Demanding customers




Passive customers
Difference between ………

   Good service


   Bad service



   Excellent service
Good Customer Service

 Good service is when the customer gets
treatment that meets his/her expectations.




    Customer            What Customer
   Expectation            receives
Bad Customer Service

Bad Service is when customer gets treatment
   which is less than his/her expectations




    Customer             What Customer
   Expectation             receives
Excellent Customer Service

When 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 attributes
2.   Performance attributes
3.   Excitement attributes
Delighters




0%
                  100%
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.   Innovators
o    Representing about 3 % of the market
o    They are the first to adopt an innovation
o    Young, high social status, good financial
     shape, broad social relationship
o    Rely on non personal sources of info. Such as
     advertisement.
2. Early adopters:
o Comprising about 13 % of the market
o They purchase a new product or service after
   innovators but sooner than other consumers
o High social status
o Sales people are used as info. sources
3. Early Majority:
o Comprising about 34 % of the market
o This group is above average in social &
   economic measures
o Rely on ads, sales person & contact with early
   adopters
4. Late Majority :
o Representing about 34 % of the market
o Adopt an innovation to save money or in
   response to social pressure from their peers
o Rely on members of the early & late majorities
   as source of info.
5. Laggards:
o Comprising about 16 % of the market
o Last to adopt an innovation
o Older & usually are at the low end of the social
   & economic scales

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Understanding Customers

  • 1.
  • 2. 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
  • 3. Customer satisfaction Model: (Teboul Model) Company offer Customer needs (product or service) Customer satisfaction Needs not fulfilled Total satisfaction is achieved when offer matches the need i.e. circle is superimposed on the square
  • 4. 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. Performance 2. Features 3. Service 4. Warranty 5. Price 6. Reputation
  • 5. 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
  • 6. Why customers leave? Others, 9% Better prices elsewhere, 9% Product dissatisfaction, Poor service 69% 13%
  • 7. Categories of customers: Angry customers Demanding customers Passive customers
  • 8. Difference between ……… Good service Bad service Excellent service
  • 9. Good Customer Service Good service is when the customer gets treatment that meets his/her expectations. Customer What Customer Expectation receives
  • 10. Bad Customer Service Bad Service is when customer gets treatment which is less than his/her expectations Customer What Customer Expectation receives
  • 11. Excellent Customer Service When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service + Customer What Customer Expectation receives
  • 12. 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 attributes 2. Performance attributes 3. Excitement attributes
  • 14. 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.
  • 15. 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.
  • 16. 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.
  • 17. Customer Characteristics: 1. Innovators o Representing about 3 % of the market o They are the first to adopt an innovation o Young, high social status, good financial shape, broad social relationship o Rely on non personal sources of info. Such as advertisement.
  • 18. 2. Early adopters: o Comprising about 13 % of the market o They purchase a new product or service after innovators but sooner than other consumers o High social status o Sales people are used as info. sources 3. Early Majority: o Comprising about 34 % of the market o This group is above average in social & economic measures o Rely on ads, sales person & contact with early adopters
  • 19. 4. Late Majority : o Representing about 34 % of the market o Adopt an innovation to save money or in response to social pressure from their peers o Rely on members of the early & late majorities as source of info. 5. Laggards: o Comprising about 16 % of the market o Last to adopt an innovation o Older & usually are at the low end of the social & economic scales

Editor's Notes

  1. 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.