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Customer satisfaction & Evaluation

Jitin Kollamkudy

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• Satisfaction represents a veritable key of modeling the acquisition behavior of the customer, being supported by two groups of variables:

1. Cognitive variables, based on the qualitative superiority of the products given by the performance.

2. Affective variables, based on the emotions produced to the customers.

Customer satisfaction is an overall customer attitude towards a

service provider, or an emotional reaction to the difference between

what customers anticipate and what they receive, regarding the

fulfillment of some need, goal or desire.

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Why Customer Satisfaction • Many studies suggested that enhancing customer satisfaction is the

bottom line of business success: – Ever-increasing market competition– Only way to retain the Customers – To expand market share– To gain more profit– To enhance/ improve product satisfaction level

• eg. 90% to 95%

• Studies show that it is five times more costly to recruit a new customer than it is to keep an old customer: – It is fact that dissatisfied customers tell

• 7 to 20 people about their experiences

– While satisfied customers tell

• Only 3 to 5 people

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General Characteristics of Customer Satisfaction.

• General characteristics involve features or qualities related to customer satisfaction serving to identify this phenomenon among other customer relationship management propositions.

1. Customer satisfaction is a highly variable personal assessment that is greatly influenced by individual expectations based on his/her own information, expectations, direct contact and interaction, and circumstances (time, location and environment).

2. Customer satisfaction involves the sum of personal (product and service) experiences driven by its antecedents.

3. Customer satisfaction is most often related to purchase, loyalty and retention behavior with a effect on an organizations profitability.

4. Customer satisfaction characterizes itself by a high degree of word-of-mouth where satisfied customers are most likely to share their experiences with other people to the order of perhaps five or six people. Equally well, dissatisfied customers are more likely to tell another ten people of their unfortunate experience.

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General Criterion of Customer Satisfaction– A criterion for this purpose is seen as dimensions for the customers’

satisfaction assessment. I have drawn 23 criteria from the theory as studied. – The criteria can be classified in multiple groups which could fulfill a

significant antecedent function in causal models towards customer satisfaction.

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Evaluation of Customer Satisfaction

Surveys

– TQM, more and more companies are conducting surveys to measure their customers' satisfaction.

– We will discuss customer satisfaction surveys and the analysis of survey data.

– As an example, we describe an analysis of the relationship between overall customer satisfaction and satisfaction with specific attributes for a software product.

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There are three common methods to gather survey data: – Face-to-face interviews (Personal)– Telephone interviews – Mailed questionnaires

• Toll free phone no– Effective technique for complaint feedback– Organization can respond faster & cheaply to the complaints

• Customer visits– Visit to a customers place of business is an effective way to

gather information– Accurate information obtained –people can see first hand how

the product is performing

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• Report card

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Thank You…