Who is the customer?

One who uses the product or service, the one who purchases the product or service or the one who

influences the product or service.

Two types of customers: Internal customers External customers

Customer satisfaction Model: (Teboul Model)

Company offer

(product or service)

Customer needs

Customer satisfactionNeeds not fulfilled

Total satisfaction is achieved when offer matches the need i.e. circle is superimposed on the square

Customer perception of quality:

An American Society for quality (ASQ) survey on customer perception about quality of product or service shows the following ranking.

1. Performance

2. Features

3. Service

4. Warranty

5. Price

6. Reputation

Service organizations and customer satisfaction

• Difficult but not impossible

• Determine key performance indicators• Set Targets – SMART goals• Make teams • Analyze them on weekly basis• Standardize • Sustain

Why customers leave?

Poor service 69%

Others, 9%Better prices

elsewhere, 9%

Product dissatisfaction,

13%

Categories of customers:

Angry customers

Passive customers

Demanding customers

Difference between ………

Good service

Bad service

Excellent service

Good Customer Service

Good service is when the customer gets

treatment that meets his/her expectations.

Customer Expectation

What Customer receives

Bad Customer Service

Bad Service is when customer gets treatment

which is less than his/her expectations

Customer Expectation

What Customer receives

Excellent Customer Service

When the customer gets a little more than what

he/she expected, Good Service becomes Excellent Service

Customer Expectation

What Customer receives

+

Kano Model: (Dr.Nariaki Kano)

Kano model distinguishes between three types of product or service requirements which influence customer satisfaction in different ways when met.

1. Basic attributes

2. Performance attributes

3. Excitement attributes

0% 100%

Delighters

1. Basic Needs – Dissatisfiers

A dissatisfiers is a product or service characteristics that the customer takes for granted.

Absence of basic attributes results in extreme customer dissatisfaction.

Customer complaints are the primary source of information on existing dissatisfiers in our current product or service.

2. Performance Needs – Satisfiers

A satisfier is something that customer want in their product or service, and usually ask for it.

Better the performance more will be the customer satisfaction.

They are easy to measure and they become the benchmarks used for competitive analysis.

3. Excitement Needs – Delighters

A delighter is unspoken or unexpected requirement of a customer and can result into high level of customer satisfaction.

Delighters are sometimes called exciting quality.

Absence of delighter doesn’t result into customer dissatisfaction while its presence can help in enhancing customer satisfaction.

Customer Characteristics:

1. Innovators o Representing about 3 % of the market o They are the first to adopt an innovationo Young, high social status, good financial

shape, broad social relationshipo Rely on non personal sources of info. Such as

advertisement.

2. Early adopters:o Comprising about 13 % of the marketo They purchase a new product or service after

innovators but sooner than other consumerso High social statuso Sales people are used as info. sources3. Early Majority:o Comprising about 34 % of the marketo This group is above average in social &

economic measureso Rely on ads, sales person & contact with early

adopters

4. Late Majority :o Representing about 34 % of the marketo Adopt an innovation to save money or in

response to social pressure from their peerso Rely on members of the early & late majorities

as source of info.

5. Laggards:o Comprising about 16 % of the marketo Last to adopt an innovationo Older & usually are at the low end of the social

& economic scales