2.  Customer service
Is the service or care that a
consumer receives before, during
and after a purchase. It's one of
the factors that come in to play
when a consumer is determining
buying value, the other is the
quality of the product or service
that is being offered.

3.  Determine the most important service attributes for
meeting and exceeding customers’ expectations.
 Determine the most important service attributes on
which competitors are most vulnerable.
 Determine existing and potential service capabilities of
the company
 Develop a service strategy that addresses important,
enduring customer needs, exploits competitor
vulnerabilities and fits the company’s capabilities and
potential.

4. Differentiation strategy
Is an integrated set
of action designed to
produce or deliver goods
or services that customers
perceive as being different
in ways that are important
to them.

5. Strategic
Customer
Satisfaction
Management
Internal External
Customer Customer
Exhibit 5-1: Customer satisfaction Framework
 Customer Satisfaction need not to be limited to the
external customers or those final buyers of the company’s
products or services. Top Management must consider the
bigger picture –that the customer is the benefactor of one’s
product or service.

6. 1. Market Segmentation
> Different groups of customers have different expectations,
marketers must apply , must apply market segmentation to choose
the specific type of customers or groups of customers that they can
serve competently.
2. Leadership
> Leadership is critical as decides on
what kind of corporate vision and culture it
wants.
3. Feedback and Reward system
> Customers Satisfaction measurement can be
qualified.

7. 3 Groups of constituents to satisfy in order to qualify as
having superior service quality. These are External Group,
Customers & Internal Staff
1. External Groups
> Corporate image
studies are conducted not
only to determine the
perception of specific
community groups such as
Stockholders, Financial
Institutions, and Option
Leaders towards the
Company.

8. Exhibit 5-2: Awareness-Image Relationship
% Awareness 100 Leadership
Image Deficit
50
Awareness Deficit
0
Image
50 100
Rating
Competitive
Weakness
>A high awareness level and a high image rating are best as they
connote leadership position in the mind of consumer. On the other extreme,
a low awareness level and a low image rating need correction. When an
imbalance occurs, such as when awareness is a lot higher than image (or
vice versa), improvement is needed.

9. Exhibit 5-3: Relative Importance Criteria Affecting Image
High Importance
FOCUS MAINTAIN
Low High
Rating Rating
LOW OVERKILL?
PRIORITY
Low Importance
>Efforts in improving the company’s image as well as
any sift in perceptions about competitors are tracked to
evaluate improvement and assess the relative standing of
the company in the marketplace using the same grid as in
exhibit 5-2.

10. > Critical issues are specific, highly
annoying incidents, which create customer
dissatisfaction.
> The improvement in customer
satisfaction will increase customer
retention and improve company’s
profitability year after year.

11. DAMAGE IMPACT
Low High
POSIBLE COST
SAVINGS LEVERAGE
OPPORTUNITY OPPORTUNITY
High X X
Investment Consolidated
Information Statements
X Staff Responsiveness X
Appearance
Low CRITICAL
MONITOR X Self- IMPROVEMENT
SITUATION esteem REQUIRED
Exhibit 5-4: MBL Priority Action Indicator
> The critical issue to improved are those with high damage
impact to the company with low existing delivery
performance versus customer expectation.

12. Exhibit 5-5: Critical Elements Monitor
Example: Office Automation Supplier
350
Critical a. Insufficient
Element 300 customer
Incidence contact
250
b. Difficulty to
200
contact service
150 department
100 c. Frequent
maintenance
50
required
0 QUALITY IMPROVEMENT IMPLEMENTED
1 2 3 4 1
Quarter Time
> As quality improvement programs are implemented, the
arrows point to a downward trend indicating service
improvement due to decreasing critical element incidence

13. Degree of Satisfaction
> Their satisfaction
and motivation are Low High
determined and the
elements with highest
impact on productivity High Indirect Primary
Mention Motivators Motivators
and customer services
are measured against Employee
the company’s Needs
performance. Secondary Selective
Low
Mention Motivators Motivators
Exhibit 5-6: Staff Motivation Impact
> The Primary Motivators for
employees are those they frequently
mention as their needs with
expressed hope for a high degree of
satisfaction.

14. > Secondary Motivators have lower degree of
satisfaction and are frequently mentioned as a need.
Degree of Satisfaction
Low High
High X Casual X Staff
Wear on Provident
Mention Weak ends Fund
Employee
Needs X Performance
X Reward Schemes
Low
Alternate X
Mention
5-1/2 day week Modern Uniform
Exhibit 5-7: Example of staff Motivation Impact
> The expectations for service Quality attributes such as politeness,
and initiative which are rated as important by the customers must be
known and monitored with gasps signaling a possible need for staff
training or re-orientation.

15. > An internal customer can be a co-
worker, another department, or a
distributor who depends upon us to
provide products or services which in
turn are utilized to create a deliverable
for the external customer.

16. Buyer Process Seller Process
A. Pre-Transaction
1. Information Search 1. Marketing
2. And Sales
2. Evaluate
B. Transaction
3. Purchase 3. Order processing
4. Take Possession 4. Delivery
5. Payment 5. Billing & Collection
C. Post-Transaction
6. Usage 6. After Sales Service
Exhibit 5-8: Customer Satisfaction Guide Matching Buyer And Seller Process
> Customer service can be expanded into three parts to comprise a full
cycle instead of limiting it to the usual customer complaint, inquiry or
claim. The 3 parts are: Pre-Transaction, Transaction and Post
Transaction.

17. Exhibit 5-9: Expanded Customer Service Activities
Pre- Transaction Training Post- Transaction
@ (b)
MAKETING AND SALES ORDER PROCESSING AFTER SALES SERVICE
Organization Warranties
Order entry
Forecasting Parts & Services
In stocks
Inventory Management Customer Inquiries/
Quality Assurance
Distribution points Complaints, Claims
DELIVERY
@
On Time
Product condition upon approval
Product Installation/ Manual
Understanding Manual
BILLING & COLLECTION
Accuracy, Promptness,
Courteous
(b)

18. Marketing & Sales
> Structure must come after strategy and not the other
way around as practiced by most companies. The firm’s
policies must be marketing oriented and not self-
oriented.
Order Processing
> The entry of an order must be accurate and prompt
considering the firm’s many internal needs for data
gathering and analysis.
Delivery
> The now famous free delivery of food from fast
food stalls and restaurants are changing consumer
dining habits.

19. A Note on Product Manuals
> Most product manuals of technical products are not user friendly.
Billing & Collection
> A sale is not a sale until collected.
After Sales Service
> Customer service is most often limited to after-sales service.

20. Exhibit 5-10: Customer Service Improvement Cycle
1. Identify room for improvement
2. Describe the Customer’s need
3. Prepare Service standards
4. Test Standard if realistic
5. Modify and adopt
6. Monitor and improve

21. Exhibit 5-10: Customer Service Improvement Cycle
1. Identify room for improvement
> Nobody would make an effort to improve unless they
realize that something is wrong.
2. Describe the customer’s need
> The hospital could make a simple telephone survey to ask
the main companion of their patients how many minutes they
be willing to spend in the casher’s office without feeling
offended.
3. Prepare service standards
> Having defined customer’s need for quick processing of
payment, systems must be reviewed and bottlenecks
identified.

22. Exhibit 5-10: Customer Service Improvement Cycle
4. Test Standards if realistic
> The supervisor of the cashier can then test whether the 2
minutes waiting time as expected by customers can be done.
5. Modify and Adopt
> less ambitious goal such as 4-minutes be used as a transition
goal to the final 2-minutes waiting time goal.
6. Monitor and Improve
> Periodic audit of standards must be done.

23. >The marketing
training specialist,
Mansmith and fielders,
instituted a unconditional
money back warranty for
their public seminars since
1990, the only company to
do so.

24. >Customers may be
disappoint once and they may
not give the company another
opportunity to fail. Marketers
must, therefore, be happy that
customers are complaining
about their shortcomings , as
this will allow them the
opportunity to rectify their
error instead of not patronizing
them again.

26. >Customers Satisfaction
Surveys- The survey is known for its
flexibility and wide variety of uses.
Ranging from identifying quality
strengths and weakness to tracking
customers perceptions.
>Quality Improvement
Experiments- Unlike the survey, it
is possible to make fairly strong
casual inference if the experiment is
properly conducted.

27. Critical Incidents- Respondents are asked
to describe in story like fashion memorable
events, which would have affected their
satisfaction or dissatisfaction .
Problem Analysis- In general, such analysis
involves effort to develop a list of problems and to
evaluate the impact of problem on customers
satisfaction.
Conjoint Measurement- This can be use
to align performance standards with
customer expectations and to evaluate quality
before they are introduced.

28. >Customer service must
not be superficial. A smile
campaign teaching
salesladies to always smile is
good but what is more
important is whether or not
behind those smiles, the
salesladies are capable of
answering customer’s
questions.

29. 1. Companies with parking space,
instead of serving the space closest the
company’s gate for the president of the
company, why not reserve it for the
customer.
2. For hotels, they can offer a money-
back warranty if a cockroach is found in
the hotel room of the customer.

30. 3. For school, customer-oriented
administrators can open more booths that
will shorten lines during enrolment. They
can also ensure that the education they
provide students are relevant to the
industry by regularly consulting on school
programs.
4. For auto repair shops,
automatically checking brake fluid, oil,
water, batteries, clocks, ensuring a
clean car even if customers didn’t ask
for it may do wonders.

31. 5. For airlines, installing a video station in
airports to record customer’s complaints
and suggestion may immediately help them
correct the indifferent attitude of some of
their staff.
6.For photocopiers, why not print a
few dozen resume for job applicants.

32. 7. For business law firms,
distributing a booklet on how to get
started in business outlining how to
register, how to name your company
properly and tips on how your
business can survive can be given for
free.
8. For telecommunication
companies like PLDT,
offering free telemarketing
seminars year round may
improve their customer
relations.

33. Customer service is a requirement in any
competitive business. By developing a strategy to make
customer service a differentiator, it can become a
competitive advantage in business. Using customer
satisfaction surveys and focusing top customer
complaints and what causes biggest damage to
customers, improvement projects or training can be
developed to reduce complaints and increase customer
satisfaction. Looking at every step of customer
engagement, from pre-transaction, to transaction and
post-transaction steps, careful attention to service and
quality will help retain customers