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Meaning

Customer satisfaction, a term frequently used in


marketing, is a measure of how products and
services supplied by a company meet or surpass
customer expectation.
Its seen as a key performance indicator within
business as a BALACED SCORECARD.
It warns about Sales and Profitability.
When a brand have loyal customers, it gains
positive word-of-mouth marketing.
Customer satisfaction differs depending on the
situation and the product or service.



Definition
Customer Satisfaction: Improving quality and
access to services and support in vulnerable
neighborhoods.
Some researchers define a satisfied customer
within the private sector as one who receives
significant added value to his/her bottom line.
Customer satisfaction is defined as the number
of customers, or percentage of total
customers, whose reported experience with a
firm, its products, or its services exceeds
specified satisfaction goals.
When a product or service meets or exceeds
a customers exceptions, the customer is
usually satisfied.


In short customer satisfaction is "The provision of
goods or services which fulfill the customer
expectation in terms of quality and service, in
relation to price paid.
Conceptualized as a feeling developed from an
evaluation of the experience.
Fix it,
Improve it,
make
changes
Sell the
improved
product
Assess
progress (is
it selling?)
Ask the
customers
if they like
the new
product
Step 1 Understanding Customer
Expectations
Step 2 Promises to Customers
Step 3 Execution
Step 4 Ongoing Dialog with a
Customer
Step 5 Customer Satisfaction
Surveys
We must know what our customers expect
from us. We work with our customers to
precisely learn their expectations
Customer expectation differ by region by
country.

Sample Question
How customers wants and needs, customer
standards and expectations, are incorporated into
our promises to customers to not only make a
sale, but achieve high Customer
Satisfaction(repetitive business)
Set promises that can be kept
Aim to exceed expectations rather
than to meet them
Delight Customers by surprising them
(Surprise is something not promised,
yet delivered).
Products and services are provided to customers
Customers had certain expectations before
products/services were delivered
Occasionally there are problems with
products/services provided
Customer problems are eventually solved
Sample Question
How ongoing work towards better Customer
Satisfaction is communicated to organization
(development, sales, etc.)?
Executive meetings
User Group meetings
Other meetings
Sample Question
How feedback received from a customer
(current Customer Satisfaction) is
communicated?
CS Surveys
Event Driven Surveys
Internal Indicators of Customer Satisfaction
Tickets resolved within objectives
Ticket overdue
Resolve time
Response time
Sample Question
How survey results are communicated to
organization?
Corrective actions?
Pro-active actions?
A business can be successful only if the end
customers are satisfied. Customers are the real kings
of business so it is very important to keep them
happy.
The level of satisfaction customer with a company
has profound effects.
A totally satisfied customer contributes 2.6 times as
much revenue to a company.
Customer Satisfaction doesnt guarantee the
repurchases from a company but it does play a vital
role in achieving customers loyalty.
CS research needs to make informed decisions in
order to retain and increase your customer base and
improve customer relationships.


IT costs at least 7 times more to source a new
customer than it does to retain existing one
A 'satisfied' customer tells 5-7 people in a year whilst
a 'dissatisfied' customer will tell 14-15 people
Companies can boost profits anywhere from 25% to
125% by retaining a mere 5% more of their exciting
customers
Totally satisfied customers were 6 times more likely
to use that services and commend it than ' satisfied'
customers
Customers who have a bad experience with you and
do not complain are only 37% likely to still do
business with you
Customers who have an opportunity to complain and
the complaint is achieved are 95% likely to still do
business with you
You provide value when you deliver the four
components that reliably create customer satisfaction.
A perfect product or service
Delivered in a caring, friendly manner
On time (as defined by customer)
With the backing of an effective
problem-resolution process


Service of quality
Reliability of service
Knowledge of the staff
Being kept informed of progress
The way service kept its promises
The way the service handled any problem
Friendliness of staff
How sympathetic staff were to your needs
Speed of enquiries
Number of time had to contact the service.








Figure 1: Traditional Macro-Model of customer satisfaction
(adapted from Woodruff & Gardial, 1996)
* includes intent to purchase, word-of-mouth, loyalty, and
complaints.

Perceived
performance
Comparison
standard(s)
Perceived
disconfirm.
Satisfaction
feelings
Outcomes *
It improves business repo.
It helps to increase total revenue.
It helps to find out what customers are thinking
and feeling about product and services.



Customer satisfaction measurement has a critical role in informing service
improvement. It allows an agency to understand what its customers value,
how values vary between different types of customers, and where the
agency can take action to improve service delivery.
It requires a set of activities such as preparation of questionnaire, conducting
surveys and analyzing the result.
Questions and scales:
1 2 3 4 5
Highly Moderately Neutral Moderately Highly
dissatisfied dissatisfied satisfied
satisfied

1 2 3 4 5
Strongly Moderately Neutral Moderately Strongly
disagree disagree agree agree
Open ended questions: Good measurement involves
asking open-ended questions about
1) what the customer feels the way he/she does,
2) the ways the programme can be changed to improve
his/her level of satisfaction,
3) what he/she liked best about the programme, and
4) what he/she disliked most about it.
Although there are no hard and fast rules about which
programs and services should be assessed first, the
following are some recommended criteria to consider (not
in ranked order):
Largest number of people served
Largest program, in terms of budget or staff
Clear opportunities are available to improve (programs
with known complaints/issues)
Highest strategic priority
High profile programs or programs with known
controversy
The ultimate goal for all customer service should be service
excellence.
A good way to find out what your customers care about and what
their experiences are is to ask them.
Customer satisfaction results are important to understand service
delivery, will be used by management and employees to improve
services, and will be reported to the public along with changes made
based on the results.
Differences in programs, services, and customer populations may
require differences in data collection procedures, measures, and
strategies for improvement.
Customer satisfaction measurement should focus on the entire
customer experience, not just the final result or decision.
Customer satisfaction data collection efforts should be adapted to
and modified for diverse customer populations.
Customer satisfaction measurement should be proximal, or close in
time, to the time of service or interaction. Assess customer
satisfaction when a customers experience is fresh.
Measurement should reflect the various ways (channels or methods)
customers access the service.

Use a scientific questionnaire design
Define the goal
Keep surveys short & sweet
Measure what matters
Use the right scale
Dont strive for a benchmark- find the
rightmark
Coordinate with IT
Dont use surveys results to individuals
Report often and make results accessible
If youve invested, make it work

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