Customer satisfaction is essential for business success. It is measured by the number of satisfied customers, how much and how often they buy. Total quality management uses customer satisfaction as a measure of quality. A successful TQM program defines quality from the customer's perspective in terms of meeting their expectations for a quality product, reasonable price, on-time delivery, and outstanding service. Customer feedback enables organizations to discover satisfaction levels and priorities for quality improvements.

1. Customer SatisfactionTanetra Austin 2010

2. Customer Satisfaction Business gain majority of their customers through Customer Satisfaction.Total Quality ManagementAn organizations success depends on:

3. How many satisfied customers it has

4. How much they buy

5. How often they buy

6. Customers that are satisfied will increase in number.

7. Buy more and buy more frequentlyTotal Quality Management Manufactures and service organizations use customer satisfaction as the measure of quality.Total Quality Management (TQM)A successful TQM program begins by:Defining quality from the customers perspective.Customers seek for:

8. A quality product

9. A reasonable price

10. On time delivery

11. Outstanding serviceWhat is QualityQuality- meeting or exceeding the customer’s expectations.Quality can be quantified as: Q=P/EQ=QualityP=PerformanceE=Expectations

12. Who is the Customer There are two types of customers:External:-One who uses the product or service-One who purchases the product or service-One who influences the sale of the product or service.

13. Who is the Customer contd.Internal:-Receives a product or service-Exchanges a product or service-Provides a product or serviceInputs from External CustomersOutputs To External CustomersInternal CustomerCustomer/Supplier Chain

14. Customer Perception of QualityThere is no acceptable quality level because the customer’s:Needs ValuesExpectations are constantly changing and becoming more demanding.

15. Customer Perception of Quality contd.Before customer’s purchase a major product they check the ratings quality about the product. Customer’s check for:Performance (fitness for use)Features(primary function)Service(customer -added value)Warranty(promise and guarantee of product)Price(higher price to obtain value)Reputation(overall experience)

16. Customer FeedbackFeedback is an ongoing and active probing of the customers’ mind. Feedback enables the organization to:Discover customer satisfactionDiscover relative priorities of qualityCompare performance with the competitionIdentify customers’ needsDetermine opportunities for improvement

17. Service QualityCustomer service is the set of activities an organization uses to win and retain customers’ satisfaction.Service Quality: OrganizationTo ensure the same level of quality for all customers, the organization must:

18. Identify each market segment

19. Write down the requirements