Customer Satisfaction

and Problem
Resolution
Service Culture (Week 16-17)
 Learning Outcomes
● Understand the needs and expectations of
customers
● Analyze methods used by companies famous for
quality customer relations
● Define and demonstrate service recovery
● Explain the concept of dealing with negative
customer reactions and problem resolution.
 What is
Customer
Satisfaction?
 What is Customer Satisfaction?
 It is a measure of how products and services
supplied by a company meet or surpass the
customer’s expectations.
 Customer expectation is the needs, wants, and
preconceived ideas of a customer about a product
or a service.
 If customer expectations are met then the
customer is satisfied.
 Types of Customers
● External – are end users of the
organization’s product or services
depositors, borrowers, investors, etc.
● Internal – are people, departments,
units and groups within an
organization served by what we do.
Why Customer
Satisfaction?
 Why Customer Satisfaction?
 Customer is the boss of the market
 Customer dictates market trends and direction
 The organization is dependent on the customer and
not the other way around
 Customer satisfaction means loyalty towards the
organization
 The satisfied customers will help in bringing the new
customers by the “word of mouth”.
Factors Affecting
Customer
Satisfaction
 Factors Affecting Customer Satisfaction
 Price
 Quality
 Service
 Brand Name
 Reputation
 Features
“ A product should never be
sold unless it has been
carefully manufactured and
has been tested thoroughly
and satisfactorily…”

“Customer First”
Mr. Sakichi Toyoda,
Toyota Group Founder
 LEVELS OF
CUSTOMER
SATISFACTION
 Levels of Customer Satisfaction
Basic Needs (Dissatisfiers)
 A service that the customer takes for granted. He
expects it to be present in the product
 Absence of this need will lead to dissatisfaction
for the customer but the presence of it will not
lead to any satisfaction as such
 Levels of Customer Satisfaction
Performance Needs ( Satisfiers)
 It is a need or want of the customer which he
specifically asks for
 Better the performance more will be the
satisfaction of the customer
 These factors becomes the benchmarks in the
competitive market
 Levels of Customer Satisfaction
Excitement Needs ( Delighters)
 A delighters is an unspoken or unexpected
requirement of a customer
 It leads to very high level of satisfaction or
customer delight
 Absence of delighters does not result in customer
dissatisfaction while its presence will enhance
customer satisfaction
 Customer Retention
 Customer satisfaction should lead to customer loyalty
and customer retention
 This is the real test and bottom line – when the
customer repeatedly comes back to you for repeat
orders and to purchase ne products manufactured by
you
 Firm orders received or cash payments registered,
market share, customer referrals and customer retention
are an indication of your customer success and
penetration in the market
 Customer Feedback
 Customer feedback must be continually done and
monitored
It enables an organization to:
 Discover customer’s dissatisfaction
 Discover relative priorities of quality
 Identify customer needs
 Determine opportunities for improvement
HOW TO ENSURE
CUSTOMER
SATISFACTION?
How to ensure customer satisfaction?

 Surveys
 Customer Feedback
 Comparison with alternatives
 Employee feedback
 Internet blogs
 Toll free numbers
 Quality and Customer Expectations
 Quality is defined as excellence in the product or
service that fulfil or exceeds the expectations of
the customer
 There are 9 dimensions of quality that may be
found in products that produce customer
satisfaction
UNDERSTANDI
NG CUSTOMER
NEEDS
 Understanding Customer Needs
We need to ensure that we always deliver on our
promise to the customer, as well as to our employees. It’s
always better to under-promise with timescales and
services, and over-deliver by giving an earlier response or
added value service.
The more you know about your customers, the more
you are likely to understand customer needs and
expectations and find right ways to achieve outstanding
customer service.
 Understanding Customer Needs
Here are some practical tips for understanding customer
needs:
1. Ask yourself and your team members these simple
questions:
 Who are our main customers?
 What market are they from?
 How does our product or service meet their needs?
 What would further help our customers?
2. Then step into one of your key customer shoes’ and ask
yourself
 Understanding Customer Needs
3. Utilize external surveys to gauge customer satisfaction
4. Analyze your customer feedback
5. Get personal feedback from your customers
6. Facilitate customer focus groups and special events
 WHAT IS
CUSTOMER
RELATIONS?
 Customer Relation

Customer relation refers to the methods a

company uses to engage with its customers and
improve the customer experience. This includes
providing answers to short-term roadblocks as well
as proactively creating long-term solutions that are
geared towards customer success.
What functions does customer relations
include?
Customer relations include both the reactive
and proactive functions performed by your
customer service teams.
Reactive function are the efforts made by your
team to solve issues that are reported by customers.
This includes tasks like responding to customer
complaints and solving problems with the support
team. Being able to solve unexpected customer
roadblocks is essential for brands that are looking
to build strong customer relationship.
Proactive function are the measures taken to ensure a
long-term relationship with customers. These efforts are
aimed towards fostering customer success by consistently
satisfying evolving customer needs. Customer success
teams do this by providing information about products and
updates, as well as by promoting discounts and exclusive
efforts. This type of long-term customer relationship
management helps companies create lasting impression on
customers who eventually become loyal to the brand.
What are positive customer relations?
Positive customer relations are long-
term, mutually beneficial relationships between
a customer and a company. These relationships
are built by creating a stable environment of
trust that results in the continued growth of
both the customer and the organization.
Benefits of Positive Customer Relations
Positive customer relations can result in
an array of benefits for your company,
including more potential leads and higher
customer retention rates.
To narrow it down, here are several top benefits that
positive customer relations can provide for your company.
 Increased customer retention
 Increased customer loyalty
 Increased customer satisfaction
 Increased customer feedback
WHAT IS
SERVICE
RECOVER
Y?
 Service Recovery
Service recovery is all about righting your
wrongs. It’s the process of recovering from poor
customer service experience and regaining
customer loyalty. Successful service recovery
should restore the customer’s trust, increase
customer attention, and drive brand awareness.
 TWO APPROACHES
TO SERVICE
RECOVERY
When service recovery is part of your business plan there are two ways to look at it.
Here are the main approaches to the profitable art of service recovery.

 Identify the problem before it reaches the

contact centre
 Use service recovery to retain customers
 Importance of Service Recovery
Here’s a look at all of the ways service recovery is important for businesses:
Reduces Negative Reputation
As a business, particularly a customer-facing one, your reputation is
incredibly important. You want to be able to entice new customers with
your excellent customer experience reputation, as well as retain
existing ones.
Increases customer retention
Service recovery is important for customer retention. As a brand,
building a solid customer relationship is one of the best things you can
do. This way, customers feel as though they have an emotional
connection to your business, and are more likely to stay loyal.
HOW TO HANDLE
NEGATIVE
CUSTOMER
FEEDBACK?
Here are 8 powerful ways you can turn negative
feedback into positive engagement.
1. Listen Carefully
2. Distancing your emotional self
3. Don’t try to prove someone is wrong
4. Ask questions
5. Putting yourself in the shoes of a customer
6. Ask for time
7. Apologize
8. Resolve the issue quickly and fix the process