Measuring

Customer Satisfaction
(A Brief Presentation)

HENRY JOHN N. NUEVA

Management Engineering
Customer Satisfaction

A measure of how products and/or services supplied by a

company meet or surpass customer expectation.

It is also a key performance indicator (measure) within

business and is often part of the Balanced Scorecard.
 Customer Satisfaction?

• Delighted customers or clients are profitable on every

company business.

• It can be use as a basis of monitoring, evaluating and

developing new products and process that contribute to
company’s performance management.

• Provides an indication of how successful the organization is at

providing products and/or services to the marketplace.

The collection, analysis and
dissemination of CS data send a
message about the importance of
tending to customers and ensuring
that they have a positive
experience with the company’s
goods and services.
Customer Satisfaction?
Satisfaction is perhaps the best indicator
of how likely it is that the organizations’
customers will make further
purchases in the future. Since current
research has now focusing on the
relationship between customer
satisfaction and retention.
Customer Satisfaction
Direct Methods: Directly contacting customers and getting their valuable
feedback is very important. Following are some of the ways by which
customers could be directly tabbed:

1. Getting customer feedback through third party agencies.

2.Direct marketing, in-house call centers, complaint handling department

could be treated as first point of contact for getting customer feedback.
(these feedbacks are compiled to analyze customers’ perception)

3. Getting customer feedback through face to face conversation or meeting.

4. Feedback through appreciation letter.

5. Direct customer feedback through surveys and questionnaires.

Indirect Methods: The following are indirect methods of getting feedback
regarding customer satisfaction:

A. Customer Complaints: Customer’s complaints are the issues and

problems reported by the customer to supplier with regards to any specific
product or related service. These complaints can be classified under
different segments according to the severity and department. If the
complaints under a particular segment go high in a specific period of time then the
performance of the organization is degrading in that specific area or segment. But if
the complaints diminish in a specific period of time then that means the organization
is performing well and customer satisfaction level is also higher.

B. Customer Loyalty: A customer is said to be loyal if he revisits supplier on

regular basis for purchases. These loyal customers are the satisfied ones and hence
they are bounded with a relationship with the supplier. Hence by obtaining the
customer loyalty index, suppliers can indirectly measure customer satisfaction.
Quality Measures & Data
1. cognitive (thinking/evaluation)
2. affective (emotional-feeling/like-dislike)
3. behavioral (current/future actions)
 1. cognitive (thinking/evaluation)

How satisfied are you with the "taste" of Yoni fresh

yogurt?

How important is "taste" to you in selecting Yoni fresh

yogurt?
 2. affective (emotional-feeling/like-dislike)

Would you recommend "Yoni" to your family

and friends?

Overall, how satisfied are you with

"Yoni fresh yogurt"?
3. behavioral (current/future actions)

Would you recommend "Yoni"

to your family and friends?
 Customer Satisfaction

Survey Customers
This is probably the only way to get customer feedback unless they
use a direct contact to your organization, which most people are too busy
to bother with unless they are extremely upset for some reason.
We can provide surveys in several ways (through mail, email, over
the phone or websites) and in order to get the best information, we should
allow customers to answer questions on a weighted scale like:

(“Rate your experience on a scale of 1 to 5 with 1 indicating complete

dissatisfaction and 5 indicating complete satisfaction”).
 Customer Satisfaction

Understand Expectations
If we know what our customers expect from us, it logically follows
that we will be better able to offer them an enjoyable experience.

Therefore, make an effort to discover the expectations of your

customers in terms of both service and products in order to ensure that
you’re meeting their needs.
 Customer Satisfaction

Find Out Where You’re Failing

If you’re not meeting customer requirements, you need to find out
where the failure is occurring. Examples of general questions that would
behave the company to know where the lines of communication are
breaking down so that relationship with customers can be mended are as
follows:

1.Are the products less than what is advertised?

2.Are employees making promises that cannot be met?
3.Are customer service representatives dropping the call on customer
concerns and managing their complaints?
 Customer Satisfaction

Pinpoint Specifics
Whether a customer is satisfied or not, the data we collect will
need to accurately assess what is working and what isn’t. So inquiries into
level of satisfaction should include more than just the overall experience.

We need to determine the products and/or services they

purchased, what they liked or disliked about their sales interaction, how
the actual purchase compared to their expectations, and any suggestions
they have for improvement.
 Customer Satisfaction

Assess the Competition

If we don’t know why customers prefer another brand over
ours, we cannot hope to keep them from flocking to the competition.

So as part of the survey process, we may want to consider inviting

customers to compare and contrast similar products or companies to find
out what they are offering that you are not.
 Expectancy Value Measures of Behavioral Intention (BI),
Attitude (A) and Satisfaction (SAT)

Expectancy value models have been found to perform well in predicting both
satisfaction/dissatisfaction and behavioral intention (intention to
try, purchase, recommend, or re-purchase a product or service).

The Expectancy value model using attitudes and beliefs reads:

where:
•w1, w2 = weights that indicate the relative influence of the overall attitude toward the
object and the normative influence to purchase the product
•Ao = Attitude toward the object (brand, product, service or company)

• = the overall attitude toward the object. The overall attitude is formed by the
multiplicative product of ai (the person's affective evaluation of attribute i),
and bi (here defined as the importance of attribute i in the purchase decision). The
sum is taken over the k attributes that are defined as salient in the purchase
decision.
• = The overall normative component of the decision process. This is
computed as the multiplicative product of nbi (the norms governing attitude i),
andmci (the motivation of the respondent to comply with those norms).
Behavioral Intention (BI)
Behavioral intention is measured using a question such as "Indicate the
likelihood of you buying sometime during the next year" with a five or seven-
point Likert or semantic differential scale labeled "definitely will purchase"
and "definitely will not purchase" at the endpoints.

Satisfaction
Overall satisfaction or dissatisfaction with an object is often measured using a
five-point satisfaction scale. As an example, "Overall, how satisfied are you
with Sparkle toothpaste?" could be measured with a "Very
Satisfied, Somewhat Satisfied, Neither Satisfied Nor Dissatisfied, Somewhat
Dissatisfied, Very Dissatisfied" scale.
Attitude (ai*bi)

bi - the probability that attribute i is associated with performing behavior B. The

concept "Crest toothpaste prevents decay" could be rated on a seven point scale
with endpoints labeled "Very Likely" and "Very Unlikely".

ai - the evaluation of belief i. A representative measure of ai would be "In terms of

buying Crest toothpaste, decay prevention is …" with a five or seven point scale
with "good" and "bad"; or "Excellent" and "Poor" at the endpoints
Customer Satisfaction Survey
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