CUSTOMER SATISFACTION

Customer Satisfaction defined:

 The degree of satisfaction provided by goods or services of a

company/business as measured by the number of repeat
customers.

 A measurement of how products or services supplied by a

company meet or surpass a customers expectation.
“ Quality means anticipating the future needs of the
customer. Customer satisfaction, not increasingly profits,
must be the primary goal of the organization. It is the
most important consideration, because satisfied
customers will lead to increase profits.”

- Dr. W. Edwards Deming

Teboul Model
 WHO IS THE CUSTOMER?

CUSTOMER

 one who purchases or patronizes for the purpose

of receiving products or services.

 someone who buys goods or services from a

business.
 TYPES OF CUSTOMERS:
1. External Customers
- exists outside the organization and buys its
products or services.

2. Internal Customers
- everyone that is involved in the process of
making the product or service. They are the ones
who assure that the quality meets the expectations of
the next person.
 THREE BASIC QUESTIONS by Labovitz:

1. What do you need from me?

2. What do you do with my output?

3. Are there any gaps between what you need and

what you get?
CUSTOMER PERCEPTION
of
TQM
IMPORTANT FACTORS THAT INFLUENCE
CUSTOMER PURCHASE

1. PERFORMANCE
2. FEATURES
3. SERVICE
4. WARRANTY
5. PRICE
6. REPUTATION
1. PERFORMANCE

0 involves the products “fitness for use”.

- Availability
- Reliability
- Maintainability
2. FEATURES
0 it is the secondary characteristic of the product or
service.

* identifiable features or attributes of a

product or service:
- psychological
- time-oriented
- contractual
- ethical
- technological
3. SERVICE

0 intangible things that is all directed

to change/improve the customers
perception.
4. WARRANTY

0 a business’ public promise of a quality

product supported by a guarantee of
customer satisfaction.
5. PRICE

0 the monetary amount that a costumer

pays for a certain product or service.
6. REPUTATION

0 overall quality or character of a product

or service as seen or judged by
people/consumers.
 CUSTOMER FEEDBACKS

Helpful information or criticisms that

customers give to the organization/business to
say what can be done to improve their
performance, products, etc.
FEEDBACK ENABLES BUSINESS
ORGANIZATIONS TO:
1. Discover customer dissatisfaction.
2. Discover relative priorities of quality.
3. Compare performance with the competition.
4. Identify customer’s needs.
5. Determine opportunities for improvement.
COMMON TYPES OF CUSTOMER FEEDBACK:
1. COMMENT CARDS
- Usually attached to the warranty card and is
included with the product at the time of purchase.
2. SURVEY

- a technique or tool for gathering opinions about a

business organization and it’s products and services.
Thus done through letting customers answer
questionnaires.
3. FOCUS GROUPS

- A research method used to determine what the

customers are thinking by gathering a group of
customers in a meeting room to answer several
questions.
4. TOLL-FREE TELEPHONE NUMBERS

- the fastest and cheapest way to get a customers

feedback. This is done thru a phone/mobile call.

5. CUSTOMER VISITS
-the manager with other employees will
personally visit the customers for evaluation of the
products.
6. REPORT CARD
- a written evaluation sheet sent to
customers usually on a quarterly basis to
analyze the data to determine the areas of
improvement of the company.
USING CUSTOMER
COMPLAINTS
 ACTIVITIES TO BE UNDERTAKEN WHEN THERE’S A
CUSTOMER COMPLAINT:
1. Investigate customers experiences by actively
soliciting feedback, both positive and negative,
and then acting on promptly.
2. Develop procedures for complaint regulation
that include empowerment of front-line
personnel.
3. Analyze complaints, but understand do not
always fit into neat categories.
4. Work to identify process and/or material
variations and then eliminate the root cause.
5. When a survey response is reviewed, a senior
manager should contract the customer and strive to
resolve the concern.
6. Establish customer satisfaction measures and
constantly measure them.
7. Communicate compliant information, as well as the
results of all investigations and solutions, to all
people in the organization.
8. Provide a monthly complaint report to the
quality council for their evaluation and if
needed, the assignment of process
improvement analysis.
9. Identify customers expectations beforehand
rather than afterward through complaint
analysis.
 CUSTOMER SERVICE

- is the set of activities that a

business organization uses to win
and retain customers’ satisfaction.
ELEMENTS OF CUSTOMER SERVICE:

1. Organization
2. Customer
3. Communication
4. Front-line People
5. Leadership
Characteristics Expectation
Delivery Delivered on schedule in
undamaged condition.
Installation Proper instructions on set up, or
technicians supplied for
complicated products.
Use Clearly written training manuals or
instructions provided proper use.
Failed repair Properly trained technicians to
promptly make quality repairs
Customer Service Friendly service representatives to
answer questions
Warranty Clearly stated with prompt service
on chains.
 TRANSLATING
NEEDS INTO
REQUIREMENTS
KANO MODEL
 6 REASONS WHY
CUSTOMER SERVICE IS
IMPORTANT
1. It’sa leading indicator of consumer
repurchase intentions and loyalty.
2. It’s a point of differentiation.
3. It reduces customer churn.
4. It increases customer lifetime value.
5. It reduces negative word of mouth.
6. It’s cheaper to retain customers
than acquire new ones