Who is the customer?

One who uses the product or service, the one who

purchases the product or service or the one who
influences the product or service.

Two types of customers:

 Internal customers
 External customers
 Customer satisfaction Model: (Teboul Model)

Company offer Customer

(product or service) needs

Customer satisfaction
Needs not fulfilled

Total satisfaction is achieved when offer matches the

need i.e. circle is superimposed on the square
 Customer perception of quality:
An American Society for quality (ASQ) survey on
customer perception about quality of product or service
shows the following ranking.

1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
 Service organizations and customer satisfaction

• Difficult but not impossible

• Determine key performance indicators

• Set Targets – SMART goals
• Make teams
• Analyze them on weekly basis
• Standardize
• Sustain
 Why customers leave?

Others, 9%
Better prices
elsewhere, 9%

Product
dissatisfaction, Poor service 69%
13%
 Categories of customers:

Angry customers

Demanding customers

Passive customers
Difference between ………

Good service

Bad service

Excellent service
 Good Customer Service

Good service is when the customer gets

treatment that meets his/her expectations.

Customer What Customer

Expectation receives
 Bad Customer Service

Bad Service is when customer gets treatment

which is less than his/her expectations

Customer What Customer

Expectation receives
 Excellent Customer Service

When the customer gets a little more than what

he/she expected, Good Service becomes
Excellent Service

Customer What Customer

Expectation receives
 Kano Model: (Dr.Nariaki Kano)
Kano model distinguishes between three types of
product or service requirements which influence
customer satisfaction in different ways when met.

1. Basic attributes
2. Performance attributes
3. Excitement attributes
 Delighters

0%
100%
1. Basic Needs – Dissatisfiers

 A dissatisfiers is a product or service characteristics

that the customer takes for granted.

 Absence of basic attributes results in extreme

customer dissatisfaction.

 Customer complaints are the primary source of

information on existing dissatisfiers in our current
product or service.
2. Performance Needs – Satisfiers

 A satisfier is something that customer want in their

product or service, and usually ask for it.

 Better the performance more will be the customer

satisfaction.

 They are easy to measure and they become the

benchmarks used for competitive analysis.
3. Excitement Needs – Delighters

 A delighter is unspoken or unexpected requirement of

a customer and can result into high level of customer
satisfaction.

 Delighters are sometimes called exciting quality.

 Absence of delighter doesn’t result into customer

dissatisfaction while its presence can help in
enhancing customer satisfaction.
Customer Characteristics:

1. Innovators
o Representing about 3 % of the market
o They are the first to adopt an innovation
o Young, high social status, good financial
shape, broad social relationship
o Rely on non personal sources of info. Such as
advertisement.
2. Early adopters:
o Comprising about 13 % of the market
o They purchase a new product or service after
innovators but sooner than other consumers
o High social status
o Sales people are used as info. sources
3. Early Majority:
o Comprising about 34 % of the market
o This group is above average in social &
economic measures
o Rely on ads, sales person & contact with early
adopters
4. Late Majority :
o Representing about 34 % of the market
o Adopt an innovation to save money or in
response to social pressure from their peers
o Rely on members of the early & late majorities
as source of info.
5. Laggards:
o Comprising about 16 % of the market
o Last to adopt an innovation
o Older & usually are at the low end of the social
& economic scales