LESSON 3

Understanding what is customer Service quality and customer

satisfaction satisfaction

Identifying the customer: internal Role of leader and frontline

and external people

Factors which influence customer Understanding the Kano model

satisfaction

Measurement of customer
satisfaction and dissatisfaction

LESSON 3 | CUSTOMER SATISFACTION

The most important asset of any
organization is its customers. An
organization’s success depends on how
many customers it has, how much they buy,
and how often they buy.

Increasingly, manufacturing and service

organizations are using customer
satisfaction as the measure of quality. The
importance of customer satisfaction is not
only due to national competition but also
due to worldwide competition.

LESSON 3 | CUSTOMER SATISFACTION

CUSTOMER
SATISFACTION ORGANIZATIONAL
DIAGRAM

LESSON 3 | CUSTOMER SATISFACTION

WHO IS THE CUSTOMER?
An EXTERNAL CUSTOMER exists outside the
organization and generally falls into three categories:
current, prospective, and lost customers. Each category
provides valuable customer satisfaction information for
the organization.

An INTERNAL CUSTOMER is just as important. Every

function, whether it be engineering, order processing, or
production, has an internal customer—each receives a
product or service and, in exchange, provides a product
or service.

LESSON 3 | CUSTOMER SATISFACTION

One of the basic concepts of the 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.

LESSON 3 | CUSTOMER SATISFACTION

ONE OF THE BASIC CONCEPTS OF THE 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.

PERFORMANCE FEATURES SERVICE

Performance
involves “fitness for Identifiable Organizations that
features or emphasize service
use”—a phrase attributes of a never stop looking
that indicates that product or service for and finding
the product and are psychological, ways to serve their
ser-vice is ready for time-oriented, customers better,
the customer’s use contractual, even if their
at the time of sale. ethical, and customers are not
technological. complaining.

LESSON 3 | CUSTOMER SATISFACTION

The product warranty represents an
organization’s public promise of a quality
product backed up by a guarantee of
customer satisfaction

Today’s customer is willing to pay a higher price to

obtain value. Customers are constantly evaluating one
organization’s products and services against those of its
competitors to determine who provides the greatest
value.

Customers are willing to pay a premium for a known or

trusted brand name and often become customers for life.

LESSON 3 | CUSTOMER SATISFACTION

SERVICE QUALITY
Strategies that have produced significant
results in production are often harder to
implement in a service environment.

Customer service is the set of activities an

organization uses to win and retain customers’
satisfaction. It can be provided before, during,
or after the sale of the product or exist on its
own. Elements of customer service are:

LESSON 3 | CUSTOMER SATISFACTION

 1. Identify each market segment.
2. Write down the requirements.
3. Communicate the
requirements.
4. Organize processes.
5. Organize physical spaces.

LESSON 3 | CUSTOMER SATISFACTION

1. Meet the customer’s
expectations.
2. Get the customer’s point of view.
3. Deliver what is promised.
4. Make the customer feel valued.
5. Respond to all complaints.
6. Over-respond to the customer.
7. Provide a clean and comfortable
customer reception area.

LESSON 3 | CUSTOMER SATISFACTION

1. Optimize the trade-off between time and
personal attention.
2. Minimize the number of contact points.
3. Provide pleasant, knowledgeable, and
enthusiastic employees.
4. Write documents in customer-friendly
language.

LESSON 3 | CUSTOMER SATISFACTION

1. Hire people who like people.
2. Challenge them to develop better methods.
3. Give them the authority to solve problems.
4. Serve them as internal customers.
5. Be sure they are adequately trained.
6. Recognize and reward performance.

LESSON 3 | CUSTOMER SATISFACTION

1. Lead by example.
2. Listen to the front-line people.
3. Strive for continuous process
improvement.

LESSON 3 | CUSTOMER SATISFACTION

Gaining new customers can be a lengthy
process involving research, targeting,
advertising, promotion, and networking.
Current customers provide organizations
with established business relationships,
knowledge and predictability in buying
behaviors, and short-term opportunities for
expanded sales.

LESSON 3 | CUSTOMER SATISFACTION

CHARACTERISTICS
AND
EXPECTATIONS
TRANSLATING
NEEDS INTO
REQUIREMENTS
Customer retention is more powerful and effective than
customer satisfaction. Customer retention represents the
activities that produce the necessary customer satisfaction
that creates customer loyalty, which actually improves the
bottom line.

Customer retention moves customer satisfaction to the

next level by determining what is truly important to the
customers and making sure that the customer satisfaction
system focuses valuable resources on things that really
matter to the customer.

LESSON 3 | CUSTOMER SATISFACTION

LESSON 3 | CUSTOMER SATISFACTION