Customer Satisfaction

Golden Rules

rule 1 : the customer is always right

rule 2 : if the customer is wrong, refer to rule one

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 Customer Satisfaction and
Loyalty

 60% of future revenue comes from existing customers

 Costs 5 times more to attract new customer than to retain an old one
 Average wronged customer tells to more than 10 people about bad
experiences
 90% unhappy customers will never purchase goods again

Problem mushroom
•100 problems
•10 reported to seller
•1000 others know
 Key Dimensions of Quality
Performance , Special Features ,Reliability
,Reliability ,Conformance
,Conformance ,Durability,Serviceability,Aesthetics
,Durability,Serviceability,Aesthetics

Service Quality

Reliability , Assurance , Tangibles , Empathy , Responsiveness

 Kano’s Model
Noriaki Kano ,1984

© Oxford University Press 2008. All rights reserved.

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 Kano Model of Customer
Needs
(three classes of customer requirements)

 Dissatisfiers : expected requirements (must be attributes)

(Package leak, S -Hyper band, Hot coffee, clean hospital floor etc)

 Satisfiers: expressed requirements ( one dimensional attributes)

(power windows,sunproof ,1200 W sound vs. 400 W )

 Exciters/delighters: unexpected features/innovative (attractive

attributes)
( weather channel button on radio, LG Goldeneye)

•Meeting customer expectations(providing satisfiers) is

minimum
•Exciter might have become satisfier / disatisfier gradually
http://www.kanomodel.com
 Customer Listening
Posts
 Focus groups
 Direct customer contact(personal/telephonic)
 Mail Questionnaire
 Field intelligence
 Complaint analysis

Determining the Voice of Customers(VoC)

dentify the target market – customers, profiles & geographical distributions

eg – designing a new Mgmt subject like Business Statistics

customers will be
• Students of the MBA programme
• Teachers who teach courses in subsequent semesters that need stats ,viz,POM,FM
(Int Customers)
• Companies that give jobs to students after their MBA ( Ext Customers)
 Quality Function Deployment (QFD)
Technique to know the customer requirements & accordingly design new
products & services

Also useful to modify the designs/features of existing products with

changed requirements of customers

QFD helps to convert customer expectations called “voices of

customers”(VOCs) into design / technical requirements

QFD also helps designers to know where their products exist when
compared with the competitors products

QFD : structured method for translating customer requirements into

appropriate technical requirements for each stage of product development
& production
House of Quality

Interrelationship
between
technical
descriptors

Technical descriptors
(Voice of the Organization)

Relationship between
requirements &
descriptors

Prioritized technical
descriptors
 Moments of Truth ( Jan Carlzon,CEO,Scandinavian Airlines)
Every instance in which a customer comes in contact with an employee of the
company

 eg. (airline)
– Making a reservation
– Purchasing tickets
– Checking baggage
– Boarding a flight
– Ordering a beverage
– Requests for a magazine
– Picking up baggage

SWA – presonalised reply within 4 weeks /birthday cards to frequent flyers,Sep 11

 Performance-Importance
Analysis

Performance
Low High

Low Neglect Overkill

Importance

High Vulnerable Strengths

 Customer Relationship
Management

 Accessibility and commitments (P&G toll free 1974,FedEx-refunds, )

 Selecting and developing customer contact employees

(P&G – VoC , Ritz Carlton-whatever it takes-$2000,)

 Relevant customer contact requirements

(Walt Disney-eye contact,SWA-internal customers)

 Effective complaint management

( Wal Mart – Columbia, Nissan - clearing dissatisfaction within 24 hrs)

 Exploiting CRM technology

 Measuring & Improving Customer Satisfaction

 Discover customer perceptions of business effectiveness

 Compare company’s performance relative to competitors

 Identify areas for improvement

 Track trends to determine if changes result in improvements

 The Ritz-Carlton Hotel
the first and only hotel company twice honored with the MBNQA
award

Gold Standards

Our Gold Standards are the foundation of The

Ritz-Carlton Hotel Company, L.L.C. They
encompass the values and philosophy by
which we operate and include:

The Credo
The Motto
The Three Steps of Service
Service Values
The 6th Diamond
The Employee Promise
 Motto

Three Steps Of Service

•A warm and sincere greeting. Use the guest's name.
•Anticipation and fulfillment of each guest's needs.
•Fond farewell. Give a warm good-bye and use the guest's
name.
The Employee Promise

•At The Ritz-Carlton, our Ladies and Gentlemen are the most
important resource in our service commitment to our guests.

•By applying the principles of trust, honesty, respect, integrity and

commitment, we nurture and maximize talent to the benefit of each
individual and the company.

•The Ritz-Carlton fosters a work environment where diversity is

valued, quality of life is enhanced, individual aspirations are
fulfilled, and The Ritz-Carlton Mystique is strengthened.