Customer satisfaction final

CUSTOMER SATISFACTION ANALYSIS

Submitted byHareesh.M

I.D.2014600120

TERM PAPER ON CUSTOMER SATISFACTION ANALYSIS

Customer Satisfaction: Customer satisfaction is a post-purchase evaluation of a service offering

Anton (1996) gave a more current approach. He defined customer satisfaction as a state of mind in which the customer’s needs, wants, and expectations throughout the product of service life haven been met or exceeded, resulting in future repurchase and loyalty

customer satisfaction (CSAT) is a measure of the degree to which a product or service meets the customer's expectations

Customer Loyalty

Customer loyalty is both an attitudinal and behavioral tendency to favor one brand over all others, whether due to satisfaction with the product or service, its convenience or performance, or simply familiarity and comfort with the brand.  Customer loyalty encourages consumers to shop more consistently, spend a greater share of wallet, and feel positive about a shopping experience, helping attract consumers to familiar brands in the face of a competitive environment.

CUSTOMERS’ REQUIREMENTS

• NORMAL REQUIREMENTS: Are typically what one gets by just asking customers what they want.

• EXPECTED REQUIREMENTS: Are the obvious / compulsory requirements. For example, if meal is served hot, customers barely notice it. If it's cold or too hot, dissatisfaction occurs. Expected requirements must be fulfilled.

• EXCITING REQUIREMENTS: Beyond the customer's expectations. If provided, customer would be excited.If not ,they would hardly complain

IN OTHER WORDS

• Normal requirements-more is better

• Expected requirements-must be

• Exciting requirements-delightening, exciting, wow factor

MANAGERIAL CONCERN WITH SATISFACTION

Customer is King, satisfying customer needs and wants.

Product/Service Quality leads to Customer Satisfaction, Loyalty which achieves Organizational Objectives (e.g. profit, market share, shareholder value)

CUSTOMER PERCEPTION OF QUALITY

An American Society for quality (ASQ) survey on customer perception about quality of product or service shows the following ranking.

1. Performance

2. Features

3. Service

4. Warranty

5. Price

6. Reputation

Why customers leave?

Poor service 69%

Product dissatisfac-

tion; 13%

Better prices elsewhere;

9%

Others; 9%

Customer Satisfaction Surveys

Surveys and questionnaires are the most common marketing research methods. Typically,they are used to:

o assess the level of customer satisfaction with a particular product,service or experience;o identify factors that contribute to customer satisfaction and dissatisfaction;o determine the current status or situation of a product or service;o compare and rank providers;o estimate the distribution of characteristics in a potential customer population; or

o help establish customer service standards.

Customer Characteristics:

1. Innovators

o Representing about 3 % of the market

o They are the first to adopt an innovation

o Young, high social status, good financial shape, broad social relationship

o Rely on non personal sources of info. Such as advertisement.

2. Early adopters:

o Comprising about 13 % of the market

o They purchase a new product or service after innovators but sooner than other consumers

o High social status

o Sales people are used as info. sources

3. Early Majority:

o Comprising about 34 % of the market

o This group is above average in social & economic measures

o Rely on ads, sales person & contact with early adopters

4. Late Majority :

o Representing about 34 % of the market

o Adopt an innovation to save money or in response to social pressure from their peers

o Rely on members of the early & late majorities as source of info.

5. Laggards:

o Comprising about 16 % of the market

o Last to adopt an innovation

o Older & usually are at the low end of the social & economic scales

CUSTOMER SATISFACTION SURVEY

Process of discovering whether or not a company’s customers are happy or satisfied with the products or services received from the company. May be conducted face to face, over the phone,via email or internet or on handwritten forms. Customer answers to questions are then used to analyze whether or not changes need to be made in business operations to increase overall satisfaction of customers.

FEEDBACK

• Comment Card.

• Customer Questionnaire.

• Focus Groups.

• Toll Free Telephone No. Telephone survey

• Customer Visits.

• Report Card.

• Internet & Computer.

• Employee Feedback.

• Customer complaints

COMMENT CARD

• Comment card can be attached to the warranty card & included with the product at the time of the purchase

• Intent of this card is to get simple information such as name , age, address, occupation & what made the customer buy that product

• For customer there is little or no incentive to comment

• Customers do respond when there is something very good or very bad

• Used in hospitality industry(hotels, restaurants)

CUSTOMER QUESTIONNAIRE

• Popular tool for obtaining opinion & perceptions about an org./product/svs

• Costly & time consuming

• Most surveys ask the customer to grade the question on a 1-5 or 1-10 likert scale

• Does not tell about the importance of individual question relative to others

• Nor does it tell what customers expect from organization

• Results are not representative of the normal population

• Those who feel very good or very bad respond only

TO MAKE SURVEY MORE USEFUL REMEMBER

1. Clients & customers are not same

2. Survey raise customer expectation

3. How u ask a question will determine how the quaestion is answered

4. The more specific the question, the better the answer

5. U have only one chance & 15 min.( max. Time a customer will give to respond a survey)

6. More time u spend in survey development, less time u get in data analysis & interpretation

7. Whome u ask is as important as what u ask

8. Before data are collected , u should know how u want to analyse & use the data

FOCUS GROUPS

• Popular way to obtain feedback

• Surveying a focus group is a research method used to find out what customers are really expecting

• Group of customers is asssembled in the meeting room to collect information

• Carefully prepared answers r asked by skilled modeartor

• Who probes into participants ideas, thoughts perceptions & comments

• People selected have the same profile as the expected customer

• Focus groups r sometimes used within te organization to address internal issues

TOLL FREE PHONE NO.

• Effective technique for complaint feedback

• Organization can respond faster & cheaply to the complaints

Telephone Survey

Introductory letter to customers

– Explain the purpose of the survey

• We need your feedback

• We want to make you as satisfied as possible

– 15 minute telephone interview

• At a time convenient to you

• Only once a year

Sample of 200 customers

Representative

Based on customer value Range of decision making roles covered

CUSTOMER VISITS

• Visit to a customers place of business is an effective way to gather information

• Accurate information obtained –people can see first hand how the product is performing

REPORT CARD

THE INTERNET & THE COMPUTER

EMPLOYEES FEEDBACK

• Employees r untapped source of informations

• Conventionally companies listen more to the external customers & less to the internal customer

• Employees usually provide deeper insight into conditioins

USING CUSTOMER COMPLAINTS

• The feedback obtained in all above cases is proactive

• Customer complaint is reactive but very useful

ASQ SURVEY REVEALS THAT ABOUT

1. 1.5% complaints reach top management

2. 20% to front line personnel

3. 80% don’t report

4. It indicates that it is easy for the top mangmnt to perceive that every thing is ok

5. When satisfied customers r included in the data, no. Of complaints to mangmnt is lower than 1.5%

6. Frequently dissatisfied customers don’t say anything & quietly switch over to competitor

7. Those who dont complain r the one who should worry the organization most

8. By taking the positive approach to the complaints it is possible to improve the products/services

9. In fact complaints give the organization a second chance

10. Once u have identified the complaints/ problems

now turn to elimination.

incorporate customer voice into product/ service

CHOICE OF SURVEY

Personal interviews

Too expensive

Postal survey

Lowest cost

Likely to be a low response rate (20%)

Makes the sample unrepresentative

May not be able to trust the result

Telephone survey

Good response rate – reliable result

Low satisfaction probed – understand reasons

On balance the most cost-effective