TOPIC:

Customer
Satisfaction

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What is total quality management ?
 Total quality management is the art of
managing the whole to achieve excellence.

TQM is defined as both a philosophy

and a set of guiding principles that
represent the foundation of a
continuously improving organization.
It is the application of quantities
methods and human resources to
improve all the process within the
organization and exceed customer
needs .
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 Customer satisfaction GURU:
ARMAND V. FEIGENBAUM:

he argues that total quality control is

necessary to achieve productivity, market
penetration, and competitive advantage.

Quality begins by identifying the

customer’s requirements and ends with a
product or service in the hands of a
satisfied customer.
 in addition to customer satisfaction ,some
of Feigenbaum’s quality principles 3
 Genuine management involvement
 Employee involvement

 First-line-supervision leadership

 Company wide quality control

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 Customer Satisfaction
Customer satisfaction seems simple
enough, and yet it is far from simple.
Customer satisfaction is not an objective
but more of a feeling or attitude.
Because customer satisfaction is
subjective, it is hard to measure.
Although there are certain statistical
patterns can be developed to represent
customer satisfaction, it is best to
remember that people’s opinions and
attitudes are subjective by nature.
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 Customer loyalty can be sustained only
by maintaining a favourable comparison
when compared with competitors.

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 Who is the customer ?

 The customer is the end user or the

person who consumes the product or
gets benefit from the services.

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 Types of customers:
 There are two distinct types of
customers:

External Customers
Internal Customers

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 External Customers:
 An external customer can be defined
in many ways, such as
The one who uses the product or services
The one who purchases the product ore
services
The one who influences the sale of the
product or service.

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 An external customers exists outside
the organization and generally falls
into three categories:

Current customers
Prospective customers
Lost customers

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 Internal customers:
 An internal customer is just as important.
Every function, whether it be engineering,
order processing, or production, has an
internal customer.

 Each receives a products or services and in exchange

provide a product or service. Each person in a
process considered a preceding operations.

 Each workers goal is to make sure that the quality

meets the expectation of the next person, and should
satisfy the external customer.

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 Outputs
Inputs from To
External Internal External
Customers Customer
Customers

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Customer Perception of quality:
 One of the basic concept of TQM
philosophy is continuous process
improvement.
This concept implies that there is no
acceptable Quality level because the
customer’s needs, values, and
expectations are constantly changing
and becoming more demanding.

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 (ASQ) survey on end USERS:
 An American Society for Quality (ASQ)
surveys on end users perceptions of
important factors that influenced
purchases showed the following ranking:
Performance
Features
Service
Warranty
Price
Reputation
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 The factors of performance, features,
service, and warranty are part of the
product or service quality; therefore

it is evident that product quality and

service are more important than
price. Although the information is
based on the retail customer, it
appears, to some extent, to be true
for the commercial customer also.

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 Performance:

a performance can be well defined

by a phrase
‘’ FITNESS FOR USE ‘’
this phrase indicates that the
prodssuct and services is ready for
customers use at the time of sale.

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 Features:
 Identifiable features or attributes of
a product or service a product or
service are:
 Psychological
 Time oriented

 Contractual

 Ethical

 Technological

• Features are secondary

characteristics of the P&S.
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 Services:
 This is the customer-value added
technique,
 However it is intangible but the
companies that focus more on their
services always satisfy their
customers and don't give them
chance to complaint them for their
product.

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 Warranty:
 The product warranty represents an
organization’s public promise of a
quality product backed up by a
guarantee of a customer satisfaction.
 The warranty encourages customers
to buy a service by reducing the risk
of the purchase decision, and it
generates more sales from existing
customers by enhancing loyalty.
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 Price:
 Today's customer is willing to pay a
higher price to obtain the valuable
product.

 In this highly competitive world the

definition of the customer is
continuously changing that they can
even pay high rice for high quality
product.
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 Reputation:

 Total customer satisfaction is based

on the entire experience with the
organization, not just the product.

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 Feedback:
 Customer feedback must be
continually solicited and monitored.
 It is not a one time effort,it is an
ongoing and active probing of the
customers mind.

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 It Enables:
FEEDBACK enable organizations to:
Discover customers dissatisfaction
Discover relative priorities of quality
Compare performance with the
competition
Identify customers need
Determine opportunities for
improvement
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 Ways of collecting Feedback:
There are the following ways through which
feedback can be collected:
a) Comment Card
b) Customer Questionnaire
c) Focus Groups
d) Toll-Free Telephone Numbers
e) Customer Visits
f) Report Card
g) The Internet
h) Employee Feedback
i) Mass Communication
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 Comment card
 A low cost method of obtaining feed
back from customers involves a
comment card which can be attached
to the warranty car and included wit
the product at the time of purchase.

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 Customer Questionnaire:
 A Customer Questionnaire is a
popular tool for obtaining opinions
and perceptions about an
organization and its product and
services.
 Survey may administered by mail or
telephone.
 This survey may ask the customer to
GRADE the organization.
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 Focus Groups:
 Surveying a focus group is a
research method used to find out
what customers are really thinking.

 This a very popular method of

feedback and can be too expensive.

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 Toll-Free telephone Numbers:
 Toll free telephone numbers are an
effective technique for receiving
complaints feedback.
 Organization can respond more
faster and cheaply to the complaint.

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 Customers Visits:
 Visits to a customer’s place of a
business provides another ay to
gather information.
 Through which you can get directly
feedback.

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 Report Card:
 Another very effective information
gathering tool is report card.
 It is usually sent to each customer
on a quarterly basis. In which
customer has to grade the
company's performance etc…

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 The Internet and Computers:
 Some managers are beginning to
monitor discussions that take place
on the internet to find out what
customers are saying about their
product.

 There re even internet sites which

takes customers complaint about
product and gives grades on the
basis.
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 Employee Feedback:
 Employees are often an untapped
source of information.

 Although customer research reveals

what is happening, employee
research reveals why it is happening.

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 Mass Customization:
 The ultimate in customer satisfaction
is giving customers exactly what
they want.

 Mass customization is a direct result

of advances made in manufacturing
such as flexible manufacturing
technologies.
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 The American Customer
Satisfaction Index:
 It is established in 1994.

 This index measures eight sectors that are:

 Manufacturing (nondurable)
 Manufacturing (durable)
 Retail
 Transportation etc…
 Finance and insurance
 Services
 Pblc administation and govt.
 E-cmmerce
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 Service Quality:
 Elements of customer services are:

 Organization
 Customer Care

 Communication

 Front-line people

 Leadership

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 Customer Retention:
 Customer Retention is most powerful
and effective than customer
satisfaction.

 Customer Retention represents the

activities that produce the necessary
customer satisfaction, that creates
customers loyalty, which actually
improves the bottom line.
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