• It is a measure of how products and services supplied by a
company meet or surpass the customer’s expectations.
• Customer expectation is the needs, wants, and
preconceived ideas of a customer about a product or a
• If customer expectations are met then the customer is
WHO ARE CUSTOMERS
• Internal Customer : are people, departments, units and
groups within an organization served by what we do.
• External Customer : are end users of the organization's
product or services depositors, borrowers, investors, etc.
Why customer satisfaction
• Customer is the boss of the market.
• Customer dictates market trends and direction.
• The organization is dependent on the customer and not the
other way round.
• Customer satisfaction means loyalty towards the organization.
• The satisfied customers will help in bringing the new customers
by the “word of mouth”.
Factors affecting customer
• PRICE - micromax
• QUALITY - rolls royce
• SERVICE - dell
• BRAND NAME - apple
• REPUTATION - nokia
• FEATURES - samsung
LEVELS OF CUSTOMER
1.Basic Needs (Dissatisfiers)
• A service that the costumer takes for granted. He expects it to be present in the
• Absence of this need will lead to dissatisfaction for the customer but the presence
of it will not lead to any satisfaction as such.
•Performance needs (satisfiers)
• It is a need or want of the customer which he specifically
• Better the performance more will be the satisfaction of the
• These factors becomes the benchmarks in the competitive
•Excitement Needs (delighters)
• A delighter is an unspoken or unexpected requirement of a
• It leads to very high level of satisfaction or customer delight.
• Absence of delighters does not result in customer
dissatisfaction while its presence will enhance customer
CUSTOMER SATISFACTION FACTS
• 5% increase in loyalty can increase profits by 25% to 85%.
• Only 4% of unsatisfied customers will complain.
• An unhappy customer tells 9 other people.
• A happy customers tells to about 5 other people.
CUSTOMER SATISFACTION PROCESS
• Step 1: Understanding customer expectations
• Step 2: Promises to customers
• Step 3: Execution
• Step 4: Ongoing dialog with a customer
• Step 5: Customer satisfaction surveys
• Customer satisfaction should lead to customer loyalty and customer
• This is the real test and bottom line- when the customer repeatedly comes
back to you for repeat orders and to purchase new products manufactured
by you. (In spite of stiff competition and multiple Suppliers/Sources! )
• Firm orders received or cash payments registered , market share, customer
referrals and customer retention are an indication of your customer success
and penetration in the market.
• Customer feedback must be continually done and
It enables an organization to:
• Discover customer’s dissatisfaction
• Discover relative priorities of quality
• Identify customer need
• Determine opportunities for improvement
How to ensure customer
• Customer feedback
• Comparison with alternatives
• Employee feedback
• Toll free numbers
• Quality is defined as excellence in the product or service that fulfil
or exceeds the expectations of the customer.
• There are 9 dimensions of quality that may be found in products
that produce customer satisfaction.
• Though quality is an abstract perception, it has a quantitative
measure Q= (P / E ) , where Q=quality,
P= performance(as measured by the manufacturer.),
and E = expectations( of the customer).
Quality and customer