|




 

Presented to:
Prof. J. L. Piracha

Presented By:
Ch. Sajid Shafi (2008-MS-EM-02)
Kashif Islam (2008-MS-EM-26)
Muhammad Zahid (2008-MS-EM-29)
 2
  
 

2  
 

ã Introduction to Importance of Customer
ã
M and Customer Satisfaction
ã ypes of Customers
ã Customer Perception of
uality (06 parameters)
ã Customer Retention
ã eedback/Voice of the Customer

2 


 
ã ools for Collecting eedback
ã Mass Customization
ã Complaints Handling

2     

ã Service
uality
ã Customer Satisfaction (Kano Model)
ã Conclusion
   

Ë |

are the most important assets
Ë Ärganization¶s


depends on :
Ë How many customers it has
Ë How much they buy
Ë How often they buy
Ë ÷ 



pay their bills promptly
Ë 
 of ³Customer Satisfaction´:
Ë National competition
Ë Worldwide competition
Ë Increasingly both manufacturing and service
organizations are using ³Customer Satisfaction´ as


  .
   
 | 

Ë 
 or 
 customer satisfaction is

essential to winning new businesses and
keeping existing businesses

Ë Vn organization must give its customer:

Ë V quality product
Ë Vt reasonable price
Ë Ensures on time delivery
Ë Äutstanding service
 |

 



 V  |

Ë Customer Satisfaction standards are woven throughout ISÄ
9000:2000

Ë Major purposes of a
uality Management System is ³Customer

Satisfaction´

Ë he most successful
M programs begin by defining quality from

customer¶s perspective

Ë Dr. Deming stressed that
uality also means anticipating future

needs of the customers

Ë
uality system should be responsive to ever changing customer

requirements.
V 
 

|

 

 

Ë CS 
be measured easily
Ë Not an Ä
 ÷ 
 
Ë More like

    so its subjective in
nature
Ë ÷ 
  
of CS also results in error
Ë hough certain statistical patterns can be
developed to represent CS yet measurement is not


Ë Vs with most attitudes, there is variability among people,
often within same person at different time
Ë CS strategies are developed around clearly stated,
logical opinions and emotional issues are disregarded
 

|

 

 
 | 

Ë |



 
should not be viewed
in   

Ë Ö 
of the customers should also be

obtained about  
¶ product or
service
 *

|
!

Ë wo distinct types of Customers

Ë =
 Customers
Ë 

 Customers
 =  |


Ë ëenerally exists  
 the organization

Ë External customer can be defined as:

Ë Äne who

the product or service

Ë Äne who  

the product or service
Ë Äne who

 

the sale of a product or
service e.g. McDonald¶s determined child as their
customer when they introduced Happy Meals.
 =  |
| 
Ë Vcategories of External Customers:
Ë Current
Ë Prospective
Ë Lost Customers

Ë Each category provides   

  
about
customer satisfaction

Ë Performance must be continually improved in order

to 
current customers and 
new ones
   |

Ë Exists  
an organization

Ë =

 
in an organization has an internal
customer; Design, Ärder Processing, Production

Ë Each  
a product or service and in 


provides a product or service

Ë Each worker¶s   is to make sure that quality

meets the expectation of next person
Ë When that happens in all departments of an organization
satisfaction of External Customer is assured
|
" 
 |

   |
| 
Ë ormula for





|
÷  
relationship always includes three basic questions:

Ë What do you need from me?

Ë What do you do with my output?
Ë Vre there any gaps between what you need and what you
get?

Ë  
  
of each internal customers

expectation is necessary

Ë |   must be provided for measuring success

in meeting the expectations
 |
2
 


Ë Vmerican Society of
uality (VS
) survey
on end user perceptions of 



that

 
 

showed following
ranking:
1. Performance
2. eatures
3. Service
4. Warranty
5. Price
6. Reputation
 §2 
Ë ± 


for use i.e. product or service is ready for
use by the customer at the time of sale

Ë    , probability that a product will operate

when needed

Ë '  reedom from failure over time

Ë 

 , Ease of keeping the product

operable
 ˜#  

Ë ÷
  characteristics of the product or
service
Ë 

 features or attributes of a product
or service are:
Ë 2
  
Ë V  

Ë |
  
Ë =  
Ë V
  
 Õ

Ë Customer service is emerging as a method for
organizations to give the 
   

Ë Customer service is

 , made of many small

things, all geared up to changing customer¶s
perception

Ë 2 

 customer service is difficult than

achieving excellent product quality

Ë Ärganizations  
look for ways of improvement

in customer service even if customers are not
complaining.
 Ú*  
Ë Ärganization¶s public promise of a quality product
backed up by a guarantee of customer satisfaction

Ë Vlso represents a public commitment to guarantee a

level of service sufficient to satisfy the customer

Ë It generates feedback by providing information on the

product service and quality

Ë orces the organization to develop a corrective action

system

Ë Warranty builds  



 _2

Ë oady¶s customer is willing to pay a    to
obtain value

Ë Customer¶s constantly    one organization¶s

products and services against competitors to
determine who provides the greatest value

Ë Each customer¶s concept of value is 







Ë Ä




to identify, update, verify each

customer¶s perception of value
 ¢$  

Ë V 



 
is based upon the entire
experience with organization, not just the product

Ë ëood experiences are repeated to
 people while

bad experiences to


people

Ë Customers are often willing to pay a   for a

trusted or known brand and become customers for
life
 |
$ 

Ë Customer Retention is an important economic strategy

Ë It costs five times as much to win a new customer as it does to

keep an existing one

Ë Improved customer satisfaction is difficult to measure but it is very

easy to measure increase in customer retention

Ë Investment in customer retention is better than concentrating on

lowering operational costs

Ë eedback from information collecting tools is an effective

marketing retention strategy
 # %"&

|

Ë Customer feedback must be 


solicited and monitored:
Ë Customers continually 

Ë |
 their minds, their   

and their

 

Ë  
 

an ongoing and active

probing of customers¶ mind
 # %| 
Ë eedback enables organization to:
Ë Discover customer dissatisfaction
Ë Discover relative priorities of quality
Ë Compare performance with the competition
Ë Identify customers¶ needs
Ë Determine opportunities for improvement
Ë Drives new product development

Ë Listening to the voice of the customer can be

accomplished through different information
collecting tools:
   
 |
V

Ë Comment cards
Ë Customer
uestionnaires
Ë ocus ëroups
Ë oll free telephone Nos.
Ë Customer Visits
Ë Report cards
Ë Internet
Ë Employee eedback
 | | 
Ë V low cost method
Ë Can be attached to the warranty card
Ë Included with the product at the time of purchase
Ë Intent is to get simple information:
Ë Name address
Ë Vge
Ë Äccupation
Ë What influenced customer to buy the product
Ë Response of customers is not very good
Ë If very pleased
Ë If any problem
 |
 




Ë Popular tool but costly and time consuming

Ë Normally questions are graded on a one-to-five

scale or one-to-ten scale, highest number has
description like ³Highly Satisfied´

Ë Surveys may be administered by mail or

telephone
 %'
  
!
§ |
 
 

  

1. Clients: for whom survey we are doing the survey

2. Customers: Who use the product or service

˜  




  


1. Do not start survey questions if you do not
implement system
Õ  ( 

 


%


( 

 



1. Do you like Chinese ood?

2. How many time do you dine out?

Ú V


( 

 )


1. How would you improve the food?
 %'
  
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_ *       §_


1. Multiple choice questions

¢ V



  
 )




     

+ *


%



 
 


%
1. Past, Present and competitors customers

, -
  )

 %  
  


1. Identify: Problems, opportunities or plan before
starting the survey
 #
. 

Ë Carefully prepared questions are asked to a group of

Customers by a skilled moderator who probes into
participants ideas, thoughts perceptions & comments.

Ë Imprint analysis is an emerging technique used in the

focus groups to obtain real feeling about the
product/service

Ë eelings and Emotions of a customer are difficult to find

as customers used to hold back information in surveys.

Ë ocus groups are sometimes used within the

organization to address internal issues as it will be
expensive otherwise.
 V#2 /

Ë Ärganization can respond faster & cheaply to the

complaints
Ë More than 50% of organizations use it with sales of at
least 10Million Dollar
|
&




Ë Ärganization can proactively monitor it¶s product

performance
Ë Vccurate information obtained and people can see first
hand how the product is performing
Ë Managers with technical persons should involve in these
visits
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   7| 

Ë Discussion can be done on internet to find out the

customer feed back about the product

Ë Monitoring internet conversation is timely, the cost is

minimal and it can be the source of creative ideas

Ë Comparisons of a company product with its competitors

can be done on internet

Ë Websites are available that can get the complaints and

compliments and grade the organizations.

Ë Än internet the conversations can be unfocused

 =#- %

Ë Employees are untapped source of information &

provide deeper insight into conditions

Ë Customers research reveals what is happening &

Employees research reveals why it is happening.

Ë Employees groups can brainstorm ideas to come up

with solutions of the problems raised by customers.

Ë Employee suggestions or feedbacks must be checked

regularly rather than checking the wooden suggestion
box annually
 

|



Ë he ultimate customer satisfaction is giving customer
exactly what he wants.

Ë Mass customization is a way to provide variety at an

affordable cost.

Ë It is like a flexible manufacturing echnique such as Just

In ime.

Ë In Car industry customer determine what type of seats,

color and stereo system he wants.

Ë Dell assembled computers according to each customer

requirement by adding or subtracting components from
one of several base systems.
 |
|


Ë eedback is proactive but Customer complaint is

reactive but very important

Ë V Dissatisfied customer will become a lost customer

Ë No complaints is a good news, every single complaint

should be accepted, analyzed, and acted upon, as it
represents the V

.

Ë In Small Industries top management is directly

attached to the customers
 $

  

Ë More than half of dissatisfied customers will buy again

if their complaint has been heard and resolved

Ë 20% will buy again if their complaint is heard not

resolved

Ë ewer than 10% will buy again if the complaint is not

even heard

Ë hrough complaints the customer is providing a

second chance.
 0

 |


Ë  

 
 5
Ë Investigate customer's experiences by actively gathering
feed back. Both positive and negative
Ë 2 2 5
Ë Develop procedures for complaint resolution that include
empowering front line personnel.
Ë =

$|
5
Ë Work to identify process and material variations and then
eliminate the root cause.
Ë    
5
Ë When a survey response is received, a senior manager
should contact the customer.
Ë  

 
 

5
Ë Establish customer satisfaction measures and constantly
monitors them
Ë 

 0  

5
Ë Communicate complaint information and results of all the
investigation throughout the organization.
 
 


Ë Customer Service
It is the set of activities an organization uses to win
and retain customers¶ satisfaction.
Ë Elements of Customer Service
Ë Ärganization
Ë Customer Care
Ë Communication
Ë ront-Line People
Ë Leadership
 


Ë Service
uality Standards
Ë Ärganization must record and communicate the
quality standards to the employees.
Ë Communication of the
uality standards can be:
Ë ormal raining
Ë Videos
Ë Personal coaching
Ë Meetings
 

 | 
Ë Ärganize processes
Ë Vt times whole process can be changed by the
organization to improve customer service quality.
Ë Ärganize physical space
Ë Physical space must be reorganized to better
serve the customer.
 |
| 
Ë Meet the customer expectations
Ë Customers are key to any business, any customer
should be valued and treated good. Vll the
requirements should be fulfilled
Ë Dealing Customer Complaints
Ë Responses to the customer complaints should be
immediate and should be more than the customer
expected to receive.
 |
| | 
Ë Customer pays your Salary
Ë Employees must understand that it¶s the customer
who pays their salary while employer only handles
money.
Ë hey must please the customers not bosses
Ë Customer eedback
Ë Must consider the customer feedback ---
 |
 

Ë Deliver what is Vdvertised
Ë Vn organization¶s communication to its customers
must to consistent, a customer will be dissatisfied
if there is a difference between what has been
advertised and what has been received.
Ë Ärganization¶s website
Ë he first impression a customer has of an
organization is its website which should be user
friendly to the customer.
 # 61
2
Ë Hire the people who like people
Ë he front line people should
Ë Have good personality
Ë Need to care
Ë Posses pleasant smile
Ë Be thankful to the customer.
Ë raining
Ë Ensures development of these front-line people
by conveying the importance of customer
satisfaction.
 # 61
2| 
Ë Empowerment
Ë he front line people should be empowered to
make decisions, which efficiently resolve
customer complaints.
Ë Put customer before cost
Ë Customers understand when someone is trying to
help. he ideal is being overly fair with your
customers, putting customers before cost.
 1 

= 
Ë Management¶s involvement
Ë No quality improvement can succeed without
management's involvement and commitment.
Ë he customer is best understood when top level
management is actually using the same service.
|
 

 
 
 

Result of creative
ideas often excite
and delight the
customer
Explicit requirements,
easily identified met.

Unstated requirements of
customer with assumptions that
they will always be supplied.
 | 


Ë Voice of the customer should not be
suppressed by the voice of the organization

Ë ront Line people must be trained enough to

entertain the complaints of customers
V %*



!