Presented By Karan SachdevaInderdeep SinghManjot SinghJaswinder SinghKanav Thapar

Definition

• Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation .

• It is the degree of satisfaction provided by the goods or services of a company as measured by the number of repeat customers.

IMPORTANCE OF CUSTOMER SATISFACTION

• Impact on low-cost producers.

• Customer retention.

• Continued relationship.

• Power of Word of mouth.

• Reduction in price sensitivity.

• Competitive advantage

Customer expectations influence the evaluation of quality and forecast (from customers’ pre-purchase perspective) how well the product or service will perform.

Perceived quality refers to overall quality, reliability, and the extent to which a product or service meets the customer’s needs; this shows the greatest impact on customer satisfaction.

Perceived value is measured through overall price given quality and overall quality given price; it has somewhat less impact on satisfaction and repeat purchase.

Customer complaint activity is measured as the percentage of respondents who reported a problem with the measured companies’ product or service within a specified time frame.

Customer Loyalty is measured by likelihood to purchase a company’s products or services at various price points. Customer satisfaction has a positive effect on retention, but the magnitude of that effect varies greatly across companies and industries.

ACSI Components

(American Customer

Satisfaction Index)

Famous Quotes about Customer Satisfaction :-

• The goal as a company is to have customer service that is not just the best but legendary. -Sam Walton, Founder of Wal-Mart.

• Your most unhappy customers are your greatest source of learning. - Bill Gates

• It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages. - Henry Ford

• If you do build a great experience, customers tell each other about that. Word of mouth is very powerful - Jeff Bezos, CEO Amazon.com

Modern Organization Scenario

CustomerFrontline People

Middle Management

Management

On Top

Difference Between….

• Good Service

• Bad Service

• Excellent Service

Good Customer Service

Good service is when the customer gets treatment that meet his/her expectations.

Customer Expectation

Customer Received

Bad Customer Service

Bad Service is when customer gets treatment which is less than his/her expectation

Customer Expectation

Excellent Customer Service

When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service

+

SEVEN ELEMENTS OF A SUCCESSFUL CUSTOMER SATISFACTION PROGRAM

QUALITY PRODUCTS AND SERVICES

RELATIONSHIP MARKETING

LOYALTY PROMOTION PROGRAMS

A FOCUS ON THE BEST CUSTOMERS

EFFECTIVE COMPLAINT HANDLING

UNCONDITIONAL GUARANTEES

PAY-FOR-PERFORMANCE PACKAGES

QUALITY PRODUCTS AND SUPERIOR SERVICE

• Quality comes first before satisfaction.

• High customer service high customer satisfaction.

• Poor product or service not meet customer satisfaction.

RELATIONSHIP MARKETING

• Strong relationship between buyer and seller promote customer loyalty.

• Difference between relationship marketing and single transaction.

• Risks to relationship marketing

FOCUS ON THE BEST CUSTOMERS

• Target most valued customers.

• Too much focus on best customer discourage small or unprofitable buyers

LOYALTY PROMOTION PROGRAMS

• Loyalty promotion programs are used to build buyer seller relationships.

• Reward frequent users.

• Loyalty promotion programs in various industries.

EFFECTIVE COMPLAINT HANDLING

Customer Does Not Complain

Not Possible

Customer Defects

UNCONDITIONAL GUARANTEE

GOOD GUARANTEE MUST CONTAIN

• It must be unconditional.• It must be specific.• It must be realistic.• It must be in simple

language.• It must be easy to collect on.

PERFORMANCE-RELATED PAY

• Firstly installed in 1990s tied to customer satisfaction and quality measures.

• It provides incentive bonuses to employees who earn outstanding customer rating.

• Proportion of salaries based on the results of customer satisfaction surveys.

• It helps to increase service and build repeat business.

Measuring Customer Satisfaction

Mystery Shoppers

2-point Scale

4-point Scale

5-point Scale

10-point Scale

101-point Scale

Conceptual Model of Customer Satisfaction

Prior Expectation•Expectation are compared with Actual Product Performance

•

Confirmation•Performance Meets Expectation

•Positive Disconfirmation:•- Performance Exceed Expectation•Negative Disconfirmation:•- Performance falls below Expectation

Satisfaction•Satisfaction•- Confirmation•- Positive Disconfirmation•Disconfirmation:•- Negative Disconfirmation

Customer Loyalty•Satisfied and Loyal•No Increased Loyalty•Satisfied and Disloyal•Dissatisfied and Disloyal

Satisfaction Loyalty Relationship

LOYALTY

CUSTOMER SATISFACTION

Low

Low High

FailuresDissatisfied and not Loyal

Forced LoyalDissatisfied but tied to the firm by loyalty promotion program

High

DefectorsSatisfied but not Loyal

SuccessesSatisfied, loyal and most likely to engage in positive word of mouth

FEEDBACK

• Comment Card.• Customer Questionnaire.• Focus Groups.• Toll Free Telephone No.• Customer Visits.• Internet & Computer.• Employee Feedback.• Customer complaints

Conclusion

• Customer is the king

• Customer satisfaction with a company's products or services is often seen as the key to a company's success and long-term competitiveness.

• Customer satisfaction works as a central determinant of customer retention .

• Companies are becoming skilled in CRM

Thank You !!!