 Customer is considered as one of asset for an organization &

treat as Boss or ’King’

 Customer dictates the market trends and direction
 Customer not only has needs to be supplied (basic
performance functions)
 Also he ‘wants what he wants!’(additional features satisfy him
and influence his
purchase decision)
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  Manufacturing and service organizations are using customer
satisfaction to measure quality.
 Hence the Suppliers and Manufacturers have to closely follow
at the heel of the customer.
• The pyramid is used to determine the Customers customer satisfaction as
importance & customer is at top & CEO is at the bottom.
• It depicted strong relationship between Front-Line customer and CEO. A
company never Representatives makes a product for its top management people,
rather it is meant for the customer. Functional
• If we talk about front line employees are in Operational direct contact with
customer so they are in a Areas
better position to understand a customer’s
problems & Queries. Senior
• There is case of empowerment it is front line Managers employee who should be
having more empowerment which will enable him to solve

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customer problem directly on the spot. CEO

• There is always comparison going on between company’s offering &

customer demand.

• You can’t predict what customer required because it depends upon the
feelings, customer satisfaction etc.

• The red area shows the common company’s offerings and customer’s
needs.

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• Any product or service falling in this zone will be a surefire recipe for
organization’s success.

• Finally, we conclude that customer satisfaction is not simple formula to

understand or measure.

 External and Internal customers

 External – Current, Prospective and Lost Customers

 Internal – Every person in a process is a customer of the previous

operation.(Applies to
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 design, manufacturing, sales, supplies etc.) [Each worker should
see that the quality meets expectations of the next person in the
supplier-to-customer chain ]

 TQM is commitment to customer-focus - internal and external

customers.

 Questions asked by people to their internal customers What do

you need from me?

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 What do you do with my output?
 Are there any gaps between what you need and what you get?
 Good team-work and inter-Departmental harmony is
required. Also the leaders role in supervising the
internal customer-supplier chain.

Output to
Input from External
Internal Customers
External
Customers
Customers

➢ TQM is quality
management and
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 management of quality – there is no full stop and no break in the chain!
Continuous process (quality) improvement is all its about.

➢ Why? One important reason is the customer quality level is not static
and his expectations keep changing and his demands too!

➢ Also plant process dynamics- how to achieve maximum efficiency ,

optimizing cost and performance in the process operations,
minimizing waste etc.

➢ Factors Influencing Customer Perception (American Society for

Quality)Performance,

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 Features, Service, Warranty, Price, Reputation

 Performance: It involves “fitness for use” determine product feature

ready for customer usage.
 Features: It involves attributes of product/services for primary &
secondary nature depend upon psychological, time-oriented,
contractual, technological etc.
 Services: It related customer services part to give customer added
value considered as intangible features. Although there is difference
between better customer services then better quality of product.
 Warranty: It is considered as public promise backed by guarantee for
customer satisfaction. It
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 gives customer for commitment. It generates feedback about product’s
features & services. It encourage to purchase product & reduce risk
level.

 Price: The perception of customer changed about pricing, they

can pay higher price to obtain value. The customers have trend to
compare multiple company’s product / services. If the company
wants to retain the customer they have to increase ongoing effort
in terms of identification, verification & update according to
customer requirement.

 Reputation: It sometimes relates to the goodwill for an

organization. Total customer satisfaction gives an organization
reputation . Customer
perception relates to
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 purchase trusted brand name which gives cost increase 5 times
related to product. The strategy maker of an organization
consider the economical condition under consideration.

 Customer feedback has to be continuously sought and monitored

- not one-time only!( Pro-active! Complaints are a reactive
method of finding out there is a problem)

 Customer feedback can be relayed to one time effort And ongoing

and active probing for the customer.

 Performance comparison with competitors can be known for

new product development

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 Customers needs can be identified

 Relative priorities of quality can be obtained from the horses’

mouth!

 Areas for improvement can be noted.

 Comment cards enclosed with warranty card when product

is purchased.
 Customer survey with some general information
and questionnaire
 Customer visits also determine in shaping about product.

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 Customer focus groups plays an important role that gives
direction to the product.
 Quarterly reports also help customer as figure speaks itself.
 Toll-free phones E-mail, Internet, Newsgroups, Discussion
forums
 Employee feedback
 Mass customization.

 It is considered as one of the most popular tool where multiple

Questions asked by people regarding multiple opinion & perception
related to product / services.

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 The basic purpose of customer questionnaire that what do you need
from me & what you do with output?
 There are multiple grading systems that helps an organization
quantitative data.
 Good team-work and inter-Departmental harmony is required. Also the
leaders role in supervising the internal customer-supplier chain are
basic role of these methods.
 These sort of survey helps an organization’s management to intact with
customers also it would help to meet customer expectation.
 There are multiple form of questionnaire apply according to the
requirement of an organization such as open ended or close ended.

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 A carefully planned discussion to obtain perceptions of a defined
interest area Where there is a permissive, non-threatening environment
 It is conducted by a trained interviewer (moderator, facilitator)
 It would help in developing communications strategy
 There is use of an appropriate reporting style that the client finds
helpful and meets expectations
 There is need to strive for enlightenment

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 It would be more beneficial if consideration points memorable
 Use narrative or bulleted format
 Give thought to the oral report
 It sometimes use to determine / examine internal issues of an
organization.

 It is a technique that is used to determine customer

complaint/feedback.
 The organization needs to respond quickly because it’s
the matter of customer’s retention.

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 It gives an idea to the customer that whether to
purchase product or not or information about
competitor’s product.
 According to statistics it is considered as 50%
organizations have toll free numbers & this trend is
increasing day by day.

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 Visit to a customer place of business is an effective way
of collection of an information.

 There is need of accurate information is required–

People can see first hand how the product is
performing.

 The reportcard is effective way for gathering

information which sent each customer on quarterly
basis. The report card is analysis tool for area which
needs to improve.

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 It is considered as one of the important tool for
analysis for an organization with source of
information

 Customers research reveals what is happening &

employees research reveals why it is happening

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It should be regularly solicited rather than
checking the wooden box annually

 It gives importance to the customer & provide exactly what

customer demand from company

 In the outset there is a price tag on such products was prohibitive, but
mass customization provides this at affordable price

 Mass Customization is result of flexible manufacturing system, JIT ,&

cycle time reduction. For Example: In Automobile industry customer
determine what type of seat
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 covers, color, stereo system require so that it provide its process of
assembly.

 In short, it is considered as customer satisfaction achieved from mass

customization to provide more standard product for a company. It also
helps in evaluating for purchasing customer & have no room for
nonpurchasing customer.

 The company named ACSI established in 1994 responsible for

determining Quality standard to meet customer satisfaction. The
company conduct a survey in which participants are selected who
are user of company’s product.

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 There are multiple sectors involved in the survey related to
manufacturing & E-Commerce.

 There is comparison between the firms, industry provided in the

specified time frame.

 Its just the forecasting not exact values & score might be differ as
compare private and government firms.

 It is considered as proactive method relation to customer requirement

& failure to its implement eventually lost customer.
 There is requirement of consideration that complaint should be
accepted, analyzed & acted.
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 Multiple organizations are achieving benefits in its own perspective & it
may vary from organization to organization in terms of approach.
 Some of complaint management actions are as follows: ❑ Investigate
customer
❑ Analyze Complaints through front-line personal
❑ Identification for root cause of complaint
❑ Responding of survey by Sr. Managers
❑ Measurement of customer satisfaction
❑ Communicate regarding complaint with relevant departments
❑ Provide monthly report & designate the tasks to multiple teams

It is considered as level for an organization to achieve, so that strategies

are designed that work for
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the betterment for production in a company. It is group of activities in
an organization for customer satisfaction by quality consideration
during sale & after sales services.

There are five main pillars through which service quality is considered:
❑ Organization
❑ Customer Care
❑ Communication
❑ Front-Line People
❑ Leadership

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25
• Identify each market • Meet the customer’s
segment expectations
• Write down req. • Get the customer’s point
• Communicate req. of view
• Organize processes • Deliver what is promised
• Organize physical • Make the customer feel
spaces valued
• Respond to all complaints
• Over-respond to the
customer
• Provide a clean and
comfortable customer
reception area.
• Optimize the trade-off
between time and
personal attention
• Minimize the number
of contact points
• Provide pleasant,
knowledgeable and
enthusiastic
employees
• Write documents in
customer-friendly
language
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• Hire people who like people • Lead by example
• Challenge them to develop better • Listen to the front-line people
methods • Strive for continuous process
• Give them the authority to solve improvement
problems
• Serve them as internal
customers
• Be sure they are adequately
trained
• Recognize and reward
performance

 Its the model to

illustrate how customers
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 perceive quality is based around the level of achievement compared to
the level of customer satisfaction. Product features are divided into
three distinct categories:
❑ Must be attributes (Basic): Customers take them for granted
when they are fulfilled; if they are not fulfilled they may become
very dissatisfied.
❑ One dimensional attributes (Performance): Result in customer
satisfaction when fulfilled and dissatisfaction when not
fulfilled.
❑ Attractive attributes (Excitement): Absence does not cause
dissatisfaction, but achievement can lead to customer delight.

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29
 Customer satisfaction should lead to customer loyalty and
customer retention.

 This is the acid test and bottom line- when the customer
repeatedly comes back to you for repeat orders and to
purchase new products manufactured by you. (Stiff
competition and multiple Suppliers )

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 Firm orders received or cash payments registered , market
share, customer referrals and customer retention are an
indication of your customer success and penetration .

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