The document discusses key concepts related to customer satisfaction and service. It defines customers as those who use, purchase, or influence a product or service. There are internal and external customers. Customer satisfaction is achieved when a company's offer matches customer needs. Key drivers of customer satisfaction are performance, features, service, warranty, price, and reputation. Poor service is the primary reason customers leave, followed by better prices and product dissatisfaction.
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
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
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.