1. SERVICE QUALITY
&
CUSTOMER SATISFACTION
Rik Bhattacharjee
MBA (Indian Institute of Tourism & Travel Management – International Business)
Presently placed at Tata Consultancy Services, Kolkata, India
Formerly working with GPW, Houston, USA and Concentrix IBM, Gurgaon, India

2. WHAT IS SERVICE QUALITY?
“ A service is any activity or benefit that one party can offer to
another which is essentially intangible and does not result in
the ownership of anything.”
By Kotler, Armstrong, Saunders and Wong
“Services are economic activities that create value and provide
benefits for customers at specific times and places as a result
of bringing about a desired change in or on behalf of the
recipient of the service.”
By Christopher Lovelock

3. CUSTOMER EXPECTATION VS.
CUSTOMER PERCEPTION
Customer Expectation represents the actual expected service
& Customer Perception revels the actual received service.
Customer
Expectation
(Expected Service)
Customer
Perception
(Actually Received
Service)
Service
GAP

4. GAP MODEL
Consumer
Marketer
Word of Mouth Personal Needs Past Experiences
Expected Service
Perceived Service
Gap 5
Service Delivery
Translation of Perceptions into
Service Quality Specifications
Management Perceptions of
Consumer Expectations
External
Communications
Gap 1
Gap 3
Gap 2
Gap 4

5. GAP MODEL
GAP 1 GAP 2 GAP 3 GAP 4 GAP 5
Customers’
expectations
versus
management
perceptions
Management
perceptions
versus service
spécifications
Service
specifications
versus service
delivery
Service
delivery versus
external
communication
Customers’
expectations
versus service
perceived

6. SERVICE QUALITY
As per Parasuraman, Zeithaml & Berry the service quality is defined as :
Service Quality = Customer Perception – Customer Expectation

7. FIVE DIMENSIONS OF SERVICE
QUALITY
Service
Quality
Reliability
Assurance
TangiblesEmpathy
Responsiv
eness
Perform the
promised service
accurately
Knowledge of
employees and
ability to convey
trust & confidence
Physical facilities,
equipment,
personnel and
communication
materials
Provision of caring
& individualized
attention to
customer
Willingness to
help customers
and to provide
prompt service

8. SERVQUAL INSTRUMENT
SERVQUAL is a multidimensional instrument (i.e. questionnaire or
measurement scale) designed to measure service quality by capturing
respondents’ expectations and perceptions along the five dimensions of
service quality. The questionnaire consists of matched pairs of items; 22
expectation items and 22 perceptions items, organized into five
dimensions which are believed to align with the consumer’s mental map
of service quality dimensions.

9. SERVQUAL INSTRUMENT
EXPECTATIONS (E) PERCEPTIONS (P)
This survey deals with your opinions of
electricity and gas company. Please show the
extent to which you think banks should
posses the following features. What we are
interested in here is a number that best shows
your expectations about institutions offering
bank services
The following statements relate to your
feelings about the particular electricity and gas
company you chose. Please show the extent to
which you believe electricity and gas company
has the feature described in the statement.
Here, we are interested in a number that shows
your perceptions about electricity and gas
company.
Strongly
Disagree
Strongly
Agree
Strongly
Disagree
Strongly
Agree
1 2 3 4 5 6 7 1 2 3 4 5 6 7

10. SERVQUAL INSTRUMENT
Reliability
Expected (E) Perceived (P) GAP Score = P - E
When excellent utility company
promise to do something by a certain
time, they do.
When utility company promises to
do something by a certain time, it
does so.
When a customer has a problem,
excellent utility company will show a
sincere interest in solving it.
When you have a problem, utility
company shows a sincere interest in
solving it.
Excellent utility company will
perform the service right the first
time.
Utility company performs the
service right the first time.
Excellent utility company will
provide the service at the time they
promise to do so.
Utility company provides its
service at the time it promises to do
so.
Excellent utility company will insist
on error free records.
Utility company insists on error
free records.
Mean Reliability Score

11. SERVQUAL INSTRUMENT
Assurance
Expected (E) Perceived (P) GAP Score = P - E
The behavior of employees in
excellent utility company will instill
confidence in customers.
The behavior of employees in
utility company instills confidence
in you.
Customers of excellent utility
company will feel safe in
transactions.
You feel safe in your transactions
with utility company.
Employees of excellent utility
company will be consistently
courteous with customers.
Employees in utility company area
consistently courteous with you.
Employees of excellent utility
company will have the knowledge to
answer customers’ questions.
Employees in utility company have
the knowledge to answer your
questions.
Mean Assurance Score

12. SERVQUAL INSTRUMENT
Tangibles
Expected (E) Perceived (P) GAP Score = P - E
Excellent utility company will have
modern looking equipment.
Utility company has modern
looking equipment.
The physical facilities at excellent
utility company will be visually
appealing.
Utility company’s physical
facilities are visually appealing.
Employees at excellent utility
company will be neat appearing.
Utility company’s reception desk
employees are neat appearing.
Materials associated with the service
(such as pamphlets or statements)
will be visually appealing at an
excellent utility company.
Materials associated with the
service (such as pamphlets or
statements) are visually appealing
at the utility company.
Mean Tangibles Score

13. SERVQUAL INSTRUMENT
Empathy
Expected (E) Perceived (P) GAP Score = P - E
Excellent utility company will give
customers individual attention.
Utility company gives you
individual attention.
Excellent utility company will have
operating hours convenient to all
their customers.
Utility company has operating
hours convenient to all its
customers.
Excellent utility company will have
employees who give customers
personal attention.
Utility company has employees
who give you personal attention.
Excellent utility company will have
their customer’s best interests at
heart.
Utility company has your best
interest at heart.
The employees of excellent utility
company will understand the specific
needs of their customers.
The employees of the utility
company understand your specific
needs.
Mean Empathy Score

14. SERVQUAL INSTRUMENT
Responsiveness
Expected (E) Perceived (P) GAP Score = P - E
Employees of excellent utility
company will tell customers exactly
when services will be performed.
Employees in utility company tell
you exactly when services will be
performed.
Employees of excellent utility
company will give prompt service to
customers.
Employees in utility company give
you prompt service.
Employees of excellent utility
company will always be willing to
help customers.
Employees in utility company are
always willing to help you.
Employees of excellent utility
company will never be too busy to
respond to customers’ requests.
Employees in utility company are
never too busy to respond to your
request.
Mean Responsiveness Score

15. DIMENSION SERVQUAL SCORE (T1)
Mean Reliability Score
Mean Assurance Score
Mean Tangibles Score
Mean Empathy Score
Mean Responsiveness Score
Total
Mean Unweight SERVQUAL Score

16. IMPORTANCE SERVQUAL SCORE (T2)
Listed below are five features pertaining to utility companies and the services they offer. We would like
to know how much each of these features is important to the customer. Please allocate 100 points
among the five features according to how important it is to you. Make sure the points add up to 100.
The appearance of the utility companies
physical facilities, equipment, personnel, and
communication materials.
The utility companies ability to perform the
promised service dependably and accurately.
The utility company’s willingness to help
customers and provide prompt service.
The knowledge and courtesy of the utility
company’s employees and their ability to
convey trust and confidence.
The caring, individual attention the utility
company provides its customers.
Total 100

17. SERVQUAL SCORE
SERVQUAL
Dimension
Score from Table 1 (T1) Score from Table 2 (T2) T1 X T2
Mean Reliability
Mean Assurance
Mean Tangibles
Mean Empathy
Mean Responsiveness
Total
SERVQUAL Score

18. 7 TOOLS OF QUALITY
Fish Bone
Check Sheet
Control Chart
Histogram
Pareto Chart
Scatter Diagram
Design of Experiment

19. FISH BONE
Level 1
• Agree on the problem statement
Level 2
• Agree on the major categories of problem
Level 3
• Brainstorm all possible causes
Level 4
• Ask, “Why does this happen?”
Level 5
• Continue to ask “Why?” to generate deeper levels of causes.

20. FISH BONE

21. FISH BONE

22. CHECK SHEET
The check sheet is a form (document) used to collect data in
real time at the location where the data is generated. The data
it captures can be quantitative or qualitative.
•To check the shape of the probability distribution of a process
•To quantify defects by type
•To quantify defects by location
•To quantify defects by cause (machine, worker)
•To keep track of the completion of steps in a multistep
procedure (in other words, as a checklist)

23. CONTROL CHART
Control charts or process-behavior charts, are a statistical
process control tool used to determine if
a manufacturing or business process is in a state of control.
A control chart consists of:
•Points representing a statistic of measurements of a quality characteristic in samples
taken from the process at different times
•The mean of this statistic using all the samples is calculated
•A center line is drawn at the value of the mean of the statistic
•The standard deviation of the statistic is also calculated
•Upper and lower control limits that indicate the threshold at which the process output
is considered statistically 'unlikely' and are drawn typically at 3 standard deviations
from the center line

24. HISTOGRAM
A histogram is a graphical representation of the distribution of
numerical data. It is an estimate of the probability
distribution of a continuous variable (quantitative variable)
and was first introduced by Karl Pearson. To construct a
histogram, the first step is to "bin" the range of values—that is,
divide the entire range of values into a series of intervals—and
then count how many values fall into each interval. The bins
are usually specified as consecutive, non-
overlapping intervals of a variable.

25. PARETO CHART
A Pareto chart is a type of chart that contains both bars and a line graph, where
individual values are represented in descending order by bars, and the cumulative total
is represented by the line.
The purpose of the Pareto chart is to highlight the most important among a (typically
large) set of factors. In quality control, it often represents the most common sources of
defects, the highest occurring type of defect, or the most frequent reasons for customer
complaints, and so on.
The left vertical axis is the frequency of occurrence, but it can alternatively represent
cost or another important unit of measure. The right vertical axis is the cumulative
percentage of the total number of occurrences, total cost, or total of the particular unit of
measure.

26. SCATTER PLOT
A scatter plot is a type of plot or mathematical diagram using Cartesian
coordinates to display values for typically two variables for a set of data.
A line of best fit can be drawn in order to study the relationship between
the variables. An equation for the correlation between the variables can
be determined by established best-fit procedures.
A scatter plot is also very useful when we wish to see how two
comparable data sets agree with each other.

27. DESIGN OF EXPERIMENTS
The design of experiments is the design of any task that aims to describe
or explain the variation of information under conditions that are
hypothesized to reflect the variation.

28. FIRST CONTACT RESOLUTION
VS. CUSTOMER SATISFACTION

29. FIRST CONTACT RESOLUTION
DRIVES CUSTOMER SATISFACTION

30. 7 MOST IMPORTANT METRICS
Cost Per Contact
Customer Satisfaction
Agent Utilization
First Contact Resolution Rate
First Level Resolution Rate
Agent Satisfaction
Aggregate Service Desk Performance

31. COMMON METRICS
COST QUALITY PRODUCTIVITY
• Cost per inbound contact
• Cost per minute of handling
time
• First level resolution rate
• Customer satisfaction
• First contact resolution rate
• Call / Email quality
• Inbound contact per agent
per month
• Agent utilization
• Agent as % of total
headcount
AGENT SERVICE LEVEL HANDLING
• New agent training hours
• Annual agent training hours
• Annual agent turnover
• Daily agent shrinkage
• Adherence
• Agent occupancy
• Agent tenure
• Agent job satisfaction
• Average speed of answer
(ASA)
• Skip rate
• % answered in 30 seconds
• Inbound contact handle time
• Outbound contact handle
time
• Inbound contact as % of all
contacts
• Self service completion rate

32. AGENT UTILIZATION VS.
COST PER CONTACT

33. AGENT UTILIZATION
Agent
Utilization
(Number of calls handled by agent) X (Average call handling time in minutes) X 100
(Number days working in a month) X (Number of work hours in a day) X 60
Let us assume an agent is taking 40 calls per day and the average handling time is 12 minutes.
The agent is working 22 days a month and 9 hours daily after adjusting the break timings.
Therefore,
Agent
Utilization
(40 calls X 22) X (12 minutes) X 100
(22 days working in a month) X (9 work hours) X 60
88.89%

34. PROVEN METHODS OF MEASURING
CUSTOMER SATISFACTION
CSAT
Surveys
In App
Post Service
Long Email
Net Promoter
Score (NPS)
Promoter (9 &
10)
Detractor (0 to
6)
Customer Effort
Score (CES)
Low Effort (1)
High Effort (7)

35. I appreciate your effort and the time you have taken to go through the
slides. I request you to share your feedback with me at
rik.iittm@gmail.com.