Presented byShobhit Chandak

Customer Satisfaction

Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome ) with the performance he expects of it. Complete customer satisfaction is achieved by understanding customer requirements And delivering superior quality goods and services.

Determinants of Customer Satisfaction

Buying decisions based on judgments formed about the value of marketing offers Customer expectations based on past buying experiences Todays most successful companies raising expectations and delivering performance to match

Total Customer Satisfaction

Satisfaction is a function of product perceived Performance & expectation

If P is less than E than c is dissatisfied If P is equal to E than C is Satisfied If P is greater than E than C is delighted
XEROX We shall never be 100% satisfied until you are too A very satisfied customer is worth 10 times as much as a satisfied customer

Highly Satisfied Customers

Stays Buyer Longer Buys More Talks Favorably about Products Offers Ideas Costs Less than New Customer

High Performance Business

Stakeholders

Stakeholders Processes Resources

Processes
Resources
Organisation

Organisation & Corporate Culture

Customer oriented Organizational chart

CUSTOMERS TOPMANA GEMENT MIDDLE MANAGEMENT FRONTLINE PEOPLE CUSTOMERS FRONTLINE PEOPLE MIDDLE MANAGEMENT
TOP- MAN AGEM ENT

ORGANIZATIONS TO BE DELAYERED TO BE MORE CLOSELY ALIGNED TO CUSTOMER NEEDS

Tools for measuring Customers satisfaction

Complaints and suggestions systems Customers satisfaction surveys Ghost shopping Lost customers analysis

Customer Delivered Value

Customer-delivered value is the difference between total customer value and total customer cost of a marketing offer Customer satisfaction depends on the products performance relative to a buyers expectations Companies must be customer centered and deliver superior value to target customers

Total Customer value Product value Service Value Personal value Image value

Customer Delivered Value

Total Customer Cost Monetary cost Time cost Energy cost Psychic cost

Delivering customer value And satisfaction

Value chain - The chain of activities

from raw material to the after sale service is called the value chain.

Customer Relationship ManagementManaging detailed information about individual customers and carefully managing all customers touch point to maximize customer loyality.toolsdatawarehousing & datamining.

Activities in Value chain

A firm perform certain activities like design, produce, market, deliver and support product through which it develops a competitive advantage and creates shareholder value. it is useful to separate the business system into a series of value-generating activities referred to as the value chain. The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin.

The primary value chain activities are:

Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing, scheduling and distribution of finished goods.

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Marketing & Sales: the identification of customer needs and the generation of sales including advertisement and promotion. Service: the support of customers after the products and services are sold to them,like installation and training.

1985 Michael Porter generic value chain model

Firm infrastructure Human resource management Technology development procurement Value chain

Inbound operations logistics

Outbound Markg logistics And sales

service

Primary activities

Cost Advantage and the Value Chain

Porter identified cost drivers related to value chain activities: Economies of scale-Decreased per unit cost as output increases. Learning Capacity utilization Linkages among activities Interrelationships among business units

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Timing of market entry Firm's policy of cost or differentiation Geographic location Institutional factors (regulation, union activity, taxes, etc.)

Profitability & Total Quality Management

TQM is an organisational approach to continuously improving the
quality Of all the processes, products and services Higher level of quality result in higher level of customer satisfaction. A profitable customer is a person,household or company that over time yields a revenue stream that exceeds by an acceptable amount the companys cost stream of attracting, selling and servicing that customer

Positive Expectations of Customers from firm

You have what they need You will solve their problem You will care You will be professional Your products & services are reliable You are trustworthy Business is valuable to you Expect you to be cheerful Your prices fair You stand behind your products/services

Negative Expectations

You will be unskilled You dont care You have no authority to handle situation Your product is poor in quality

Your product is over priced Your interest is to earn sale You are grouchy Their business is not important to you

THANKS