Escolar Documentos
Profissional Documentos
Cultura Documentos
“CUSTOMER SATISFACTION”
Submitted By
PRIYANKA VERMA
(0052101707)
1
PREFACE
Initial in the one module of the project, which is allotted to me,
“CUSTOMER SATISFACTION” is covered in this project report.
The report contains very nice and well arranged topics related to the
subject “CUSTOMER SATISFACTION”. The main contents of this project
describes that ‘How to handle Complaint from the customer’, ’customer
loyalty’, ‘measurement of customer satisfaction’ and many other topics
which is countable in the “CUSTOMER SATISFACTION”.
Overall this report may work like a guide for the subject
“CUSTOMER SATISFACTION”.
Priyanka Verma
2
ACKNOWLEDGEMENT
3
CUSTOMER SATISFACTION
"Working with Wipro across service lines we have optimized our in-house
resources. This helped us focus on strategy, commercial sourcing and
contract management."
Carole A. Connolly
IS Programme Director
National Grid
4
INDEX
1. CUSTOMER SATISFACTION
2. BASICS
d. Customer Expectations
4. CUSTOMER LOYALTY
5. Customer Complains
i. Individual Employees
iv. Summary
5
7. METHODOLOGIES
f. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them
Out
h. Conclusion
6
11. CUSTOMER SATISFACTION IN THE CHANGING GLOBAL ECONOMY
b. Executive Summary
i. Summary
d. About Accenture
7
CUSTOMER SATISFACTION
8
BASICS
Basically, you might look at marketing as the wide range of activities involved in
making sure that you're continuing to meet the needs of your customers and are getting
value in return. Marketing analysis includes finding out what groups of potential
customers (or markets) exist, what groups of customers you prefer to serve (target
markets), what their needs are, what products or services you might develop to meet their
needs, how the customers might prefer to use the products and services, what your
competitors are doing, what pricing you should use and how you should distribute
products and services to your target markets. Various methods of market research are
used to find out information about markets, target markets and their needs, competitors,
etc. Marketing also includes ongoing promotions, which can include advertising, public
relations, sales and customer service.
9
WHAT IS THE CUSTOMER SATISFACTION MODEL?
DESCRIPTION
1. Basic Factors. (Dissatisfiers. Must have.) - The minimum requirements which will
cause dissatisfaction if they are not fulfilled, but do not cause customer satisfaction
if they are fulfilled (or are exceeded). The customer regards these as prerequisites
and takes these for granted. Basic factors establish a market entry 'threshold'.
4. Indifferent attributes. The customer does not care about this feature.
6. Reverse attributes. The reverse of this product feature was expected by the
customer.
10
Origin of the customer satisfaction model. History
Besides the obvious quality management and marketing usage, Kurt Matzler,
Matthias Fuchs and Astrid Schubert wonder in their article "Employee Satisfaction:
Does Kano's Model Apply?" (Total Quality Management & Business Excellence,
November-December 2004) whether Kano's model on customer satisfaction factors is
also relevant to describe employee satisfaction. Since employees can be perceived as
internal customers. They reach the conclusion that Kano's theory is indeed useable for
internal customers analysis as well.
1. For each product feature a pair of questions is formulated to which the customer
can answer in one of five different ways.
2. The first question concerns the reaction of the customer if the product shows that
feature (functional question);
3. The second question concerns the reaction of the customer if the product does
NOT show this feature (dysfunctional question).
4. By combining the answers all attributes can be classified into the six factors.
11
Customer Expectations
Customer is defined as anyone who receives that which is produced by the
individual or organization that has value. Customer expectations are continuously
increasing. Brand loyalty is a thing of the past. Customers seek out products and
producers that are best able to satisfy their requirements. A product does not need to be
rated highest by customers on all dimensions, only on those they think are important.
• Customer-driven strategy for improvement – any management activity should
eventually lead to increased customer satisfaction...
12
CUSTOMER LOYALTY
"It takes a lot less money to increase your retention of current customers than to
find new ones-but I know I don't give it as much effort as I should because it does take a
lot of energy and effort!"
13
4. Multiple products for the same customer.
14
Reach Out To Your Customers!
Contact . . . contact . . . contact with current customers is a good way to build their
loyalty. The more the customer sees someone from your firm, the more likely you'll get
the next order. Send Christmas cards, see them at trade shows, stop by to make sure
everything's okay.
Send a simple newsletter to your customers-tell them about the great things that
are happening at your firm and include some useful information for them. Send them
copies of any media clippings about your firm. Invite them to free seminars. The more
they know about you, the more they see you as someone out to help them, the more they
know about your accomplishments-the more loyal a customer they will be.
15
CUSTOMER COMPLAINS
Why Tackle Customer Complaints?
Companies find that effectively handling customers with problems is critical to
their reputations as well as their bottom lines. When customers complain and they are
satisfied with the way their complaint is handled, they are more likely to purchase
another product or service from the same company. Companies that resolve complaints
on the first contact increase customer satisfaction and product loyalty, improve employee
satisfaction, and reduce costs. Companies even encourage complaints. Most dissatisfied
customers do not complain. By making it easy for customers to complain, more
customers will come to you with their problems, giving you greater opportunity to correct
your service delivery or production processes. Customers who get their problems
satisfactorily and quickly solved tell their friends and neighbors, and they are not easily
won over by the competition.
There is a bottom-line concern for government as well. As noted above,
complaints can be costly. Repeated hand-offs increase costs and waste precious resources.
When complaints are not promptly resolved, frustrated customers seek redress in
different agencies or at different parts or levels of the same agency, resulting in duplicate
effort and compounding costs.
Just as costs compound when there is a poor complaint system, trust also erodes
as citizens become frustrated with a non-responsive bureaucracy. Indeed, there has been a
cumulative erosion of public confidence in government. Thirty years ago, 70 percent of
Americans trusted the federal government to do the right thing most of the time. In 1993,
only 17 percent of Americans said that they trusted the government.(2) There are many
factors contributing to this decline in trust and confidence, particularly the huge volume
of regulations that did not make sense to the public and the high cost of government.
However, we learned from our benchmarking partners that an effective approach to
resolving complaints is invaluable in winning the trust and loyalty of our customers--the
public.
There are costs associated with a poor complaint system and there are benefits
associated with a good one. Studies have shown that handling customer complaints well
16
can be a critical part of a turnaround strategy. If a complaint is handled well, it sustains
and strengthens customer loyalty and the company's image as a leader. It also tells the
customer that the company cares and can improve because of their contact. In
government agencies, it promotes public confidence in government services.
Customer complaints also represent valuable information about recurrent
problems. They can point the way to understanding the root causes of customer problems
and help an organization target core processes that need improvement. If acted upon to
improve core processes, customer complaints can be a source of information that can
reduce costs as well as improve services.
17
Customer Complaints Create Profit
Customer complaints are like medicine. Nobody likes them, but they make us
better. Actually, they are probably more like preventative medicine because they
provide advanced warning about problems. Financial statements, in contrast, provide
a historical perspective. By the time problems manifest in the financial statements,
forget the medicine. It’s time for emergency surgery.
Individual Employees
18
The Company
More often, the culprit is the actual product or service we provide. There may
be an inherent flaw in the design. There could be a glitch in the distribution channel
that causes dissatisfaction. Even if everything is perfect, marketing pieces, advertising
campaigns, and salespeople could inflate value and create customer expectations that
are impossible to satisfy.
The Customer
19
responses into a form on the web page that appears, and hit a submit button. This
approach is much simpler and more impressive. I do this with all of my customers
now and advertise it in my marketing.
Summary
Customer complaints are never easy to hear. If we shift from being defensive to
opportunistic, complaints can be our best friend. If we do not listen, rest assured, the
financial statement will communicate the news eventually.
20
MEASURING CUSTOMER SATISFACTION
21
expectation. According to Garbrand, customer satisfaction equals perception of
performance divided by expectation of performance.
[4]
The usual measures of customer satisfaction involve a survey with a set of
statements using a Likert Technique or scale. The customer is asked to evaluate each
statement and in term of their perception and expectation of performance of the
organization being measured.
22
METHODOLOGIES
The Net PromoterR score is a management tool that can be used to gauge the
loyalty of a firm's customer relationships. It serves as an alternative to traditional
customer satisfaction research. Companies obtain their Net Promoter Score by asking
customers a single question (usually, "How likely is it that you would recommend us
to a friend or colleague?"). Based on their responses, customers can be categorized
into one of three groups: Promoters, Passives, and Detractors. In the net promoter
framework, Promoters are viewed as valuable assets that drive profitable growth
because of their repeat/increased purchases, longevity and referrals, while Detractors
are seen as liabilities that destroy profitable growth because of their complaints,
reduced purchases/defection and negative word-of-mouth. Companies calculate their
Net Promote Score by subtracting their % Detractors from their % Promoters.
23
perceived to be important to customers. Kano also produced a methodology for
mapping consumer responses to questionnaires onto his model.
Other research and consulting firms have customer satisfaction solutions as well.
These include A.T. Kearney's Customer Satisfaction Audit process, which incorporates
the Stages of Excellence framework and which helps define a company’s status
against eight critically identified dimensions.
24
PRODUCT AND SERVICE MANAGEMENT
(recurring activities to manage a product or service)
Product (or service) management includes a wide range of management activities,
ranging from the time that there's a new idea for a product to eventually providing
ongoing support to customers who have purchased the new product. Every organization
conducts product management, whether it's done intentionally or unintentionally.
This module provides a wide overview of considerations in developing and
managing a product. How a product is developed or managed is depends very much on
the nature of the organization and its products, for example, retail, manufacturing,
wholesale, etc. Note that different people might even have different categorizations for
the activities described below.
NOTE: Nonprofit organizations often provide services in the form of "programs", rather
than "products" -- although the services from the programs are certainly "products" to
groups of clients.
25
• Broaden Your Perspective Even More?( Or If You Need an Investor or Funder)
Sources of Ideas
At this stage, someone has an idea for a new product or service. Ideas can come
from many sources, for example:
It's likely that someone else will think your idea is a good one, too! Therefore, it's
important to protect your idea as much as possible, for example, by getting copyrights,
trademarks or patents.
26
CUSTOMER SATISFACTION IN 7 STEPS
It's a well known fact that no business can exist without customers. In the
business of Website design, it's important to work closely with your
customers to make sure the site or system you create for them is as close to
their requirements as you can manage. Because it's critical that you form a
close working relationship with your client, customer service is of vital
importance. What follows are a selection of tips that will make your clients
feel valued, wanted and loved.
This is the most daunting and downright scary part of interacting with a customer.
If you're not used to this sort of thing it can be a pretty nerve-wracking
experience. Rest assured, though, it does get easier over time. It's important to
meet your customers face to face at least once or even twice during the course of
a project.
My experience has shown that a client finds it easier to relate to and work with
someone they've actually met in person, rather than a voice on the phone or
someone typing into an email or messenger program. When you do meet them, be
calm, confident and above all, take time to ask them what they need. I believe that
if a potential client spends over half the meeting doing the talking, you're well on
your way to a sale.
This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with
all customers' queries within the space of a few hours, but at least email or call
them back and let them know you've received their message and you'll contact
27
them about it as soon as possible. Even if you're not able to solve a problem right
away, let the customer know you're working on it.
A fellow SitePointer once told me that you can hear a smile through the phone.
This is very true. It's very important to be friendly, courteous and to make your
clients feel like you're their friend and you're there to help them out. There will be
times when you want to beat your clients over the head repeatedly with a blunt
object - it happens to all of us. It's vital that you keep a clear head, respond to
your clients' wishes as best you can, and at all times remain polite and courteous.
This may not be too important when you're just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long
run. If a customer has a problem, what should they do? If the first option doesn't
work, then what? Should they contact different people for billing and technical
enquiries? If they're not satisfied with any aspect of your customer service, who
should they tell?
There's nothing more annoying for a client than being passed from person to
person, or not knowing who to turn to. Making sure they know exactly what to do
at each stage of their enquiry should be of utmost importance. So make sure your
customer service policy is present on your site -- and anywhere else it may be
useful.
Have you ever received a Happy Birthday email or card from a company you
were a client of? Have you ever had a personalised sign-up confirmation email for
a service that you could tell was typed from scratch? These little niceties can be
time consuming and aren't always cost effective, but remember to do them.
28
Even if it's as small as sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on the other end of
that screen or telephone; and most importantly, it makes the customer feel
welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them
Out
Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.
Take this as an example: you're working on the front-end for your client's exciting
new ecommerce Endeavour. You have all the images, originals and files backed
up on your desktop computer and the site is going really well. During a meeting
with your client he/she happens to mention a hard-copy brochure their internal
marketing people are developing. As if by magic, a couple of weeks later a CD-
ROM arrives on their doorstep complete with high resolution versions of all the
images you've used on the site. A note accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide
you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able
to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends how
very helpful and considerate his Web designers are. Meanwhile, in your office,
you lay back in your chair drinking your 7th cup of coffee that morning, safe in
the knowledge this happy customer will send several referrals your way.
It's possible this is the most important point in this article. The simple message:
when you promise something, deliver. The most common example here is project
delivery dates.
29
Clients don't like to be disappointed. Sometimes, something may not get done, or
you might miss a deadline through no fault of your own. Projects can be late,
technology can fail and sub-contractors don't always deliver on time. In this case
a quick apology and assurance it'll be ready ASAP wouldn't go amiss.
Conclusion
Customer service, like any aspect of business, is a practiced art that takes time
and effort to master. All you need to do to achieve this is to stop and switch roles
with the customer. What would you want from your business if you were the
client? How would you want to be treated? Treat your customers like your friends
and they'll always come back.
30
CASE STUDY:
The Challenge:
In the auto industry, a dealership's customer service index (CSI) determines their
delivery quota and manufacturer incentives. The CSI is based on satisfaction surveys
that customers complete after purchasing a vehicle or receiving service. The higher the
index, the better incentives the dealer receives which translates into better values for
the consumers and higher sales and profits for the auto dealership. Since quality
customer service is directly related to the caliber of the employees, dealerships strive
to retain the best people in every part of their business: sales, service and financing. In
an industry in which turnover is normally over 150%, the significance of this
challenge can't be overstated.
The Process:
31
Earnhardt found a tool that provided the behavioral insight they were looking for. That
tool was the Predictive Index (PI).
Earnhardt applies the sales team selection process to their service and finance
teams. Earnhardt has everyone in the service department, from the mechanic teams to
lateral support groups (team leaders and dispatchers) complete the Predictive Index
survey. The operations team lays all the PI profiles on the table and puts together
people they know will work well together based on their PI. The same process is
applied to the Finance department. The Predictive Index allows Earnhardt to form a
cohesive team at each dealership that works well together, and is focused on the needs
of that specific consumer.
The Results:
The process works! Hiring and retaining the right employees has allowed
Earnhardt Auto Centers to achieve a consistently high level of customer satisfaction
resulting in increased volume and profits. Earnhardt has achieved Daimler Chrysler's
Five Star Dealer certification since its inception. Both of Earnhardt's Ford dealerships
Retaining the Right Employees Results in Higher Customer Satisfaction Ratings Case
32
Study: Earnhardt Auto Centers Arizona "PI provides us the tools we need to match the
right person to a position. When we do that, we keep those people longer and we treat
our customers better. When you have happier customers, you are selling more and
making more." Dave O'Brien Corporate Performance Coach continue to rank in the
top five percent in the nation for their high customer satisfaction scores. The Honda
dealership leads their rankings as well.
According to Mr. O'Brien, "We've used PI as our tool to put those service teams
together and those teams work better together; they finish cars faster. Our customer
satisfaction scores at those dealerships have gone up AND stabilized." He continues
that the Predictive Index has been very effective in the area of retention. "If you go
back some years, our retention of employees for more than one year was in the 20%
range. Currently about 62% of our sales department has been with us longer than one
year."
33
CUSTOMER SATISFACTION IN THE CHANGING GLOBAL
ECONOMY
Summary
Our survey of more than 3,500 consumers in the United States, United
Kingdom, Australia, Brazil, Canada, China and France finds that, although customer
service has more influence on customer behavior than ever, few companies are
distinguishing themselves for service quality. In emerging markets—such as Brazil
and China, which place even greater importance on service quality— this finding has
profound implications for companies planning to expand into these geographies.
High Performance and the Customer Experience In a world where feature and
price advantages can be quickly matched if not bettered, a company’s one remaining
source of sustainable competitive advantage may be the quality of the customer
experience it delivers. Accenture’s ongoing research on High Performance Business
has shown, in fact, that a consistent, differentiated customer experience has a greater
impact on customer loyalty—and, by extension, on growth, profitability and
shareholder value—than any other factor related to managing customer relationships.
Now, Accenture’s third annual Customer Satisfaction Survey further illuminates the
relationship between the customer experience and business performance. Our research
34
finds that, around the world, consumers expect better service quality. It confirms that
consumers are more likely to leave a provider because of poor service than for any
other reason. It also reveals that service quality is the most powerful factor—more
influential than price—in choosing providers or choosing to do more business with
them.
Our survey—which sampled more than 3,500 consumers in the United States, United
Kingdom, Australia, Brazil, Canada, China and France—also found that while
consumers everywhere value customer service—and in some countries, such as Brazil
and China, they value it very highly—the factors that determine whether they find a
service experience satisfying or frustrating vary significantly by country—a finding
with profound implications for companies seeking to drive growth by expanding into
new geographies.
Buyers are exposed to more of the world than ever before—through cable and
satellite television, the Internet and increased travel—and as a result, their tastes and
interests have broadened dramatically. Moreover, the long economic dominance of the
United States, Europe and Japan is giving way, and economic power is increasingly
shared with developing economies. This new “multi-polar” environment— comprising
multiple centers of economic power and activity—is rewriting the rules of
competition. Competition can now come anywhere in the world and more competition
means more product options and, often, lower prices for customers, undermining
traditional growth strategies based on innovation and pricing. The multi-polar world
presents opportunities, however, as well as challenges. Unprecedented growth
opportunities await companies in emerging economies such as India and China.
Consumers in these markets, however, can be vastly different from those in more
35
developed markets—and their needs, values and behaviors as customers can vary
dramatically from region to region. To capitalize on these opportunities, companies
will need deep insight into what’s relevant to local consumers—and the ability to
operationalize these insights through their marketing, sales, distribution and product
development efforts. Companies must also find new ways to attract and retain
customers that cannot be easily duplicated or offered at a lower price by more efficient
competitors. In short: organizations will not succeed in today’s economy if they do not
react to the changing marketplace around them.
Service quality is the leading reason why consumers leave a provider or choose
a new one For the third straight year, service quality is the leading reason why
consumers decide to leave a provider— not only in developed economies such as the
United States and United Kingdom but globally. Overall, service outweighs price by
20 percent as a reason for switching. In some countries—Australia, Brazil, China, for
example—it has even more influence. In addition, more than three-quarters (77
percent) say they are much more inclined to continue doing business with a company
that delivers a positive service experience. Consumers also expect more when it comes
to service. One-third (33 percent) of the consumers in our global sample have higher
expectations for customer service today compared to one year ago. Slightly more than
one-half (52 percent) say their expectations are higher today than they were five years
ago. Many respondents also believe the amount of business they do with a company
should determine the quality of the service they receive. In fact, 45 percent say they
expect much better service when they purchase more from the company; about one-
fourth say they expect somewhat better service. For most, “better” means a
representative taking more time to answer their questions and a faster response to their
inquiries, followed closely by live access to a service representative. Bottom line: any
company not working to tailor the customer experience to customer preferences—or
any company that still serves customers the same way it did five years ago—is
extremely vulnerable to competition. Service expectations are rising, but service
36
quality is not Our findings also show a gap between customers’ expectations and what
they actually experience. Generally, companies are failing to differentiate themselves
based on service—or to satisfy the rising expectations of consumers. Few respondents
consider themselves “very satisfied” or rate their experiences as “excellent”—and
excellence is what’s called for in this time of heightened global competition. In fact,
41 percent of our global respondents describe service quality as fair, poor or terrible
and only 5 percent describe it as excellent. In Brazil, for example, more than half (54
percent) describe customer service as fair, poor or terrible—in China, 56 percent feel
the same. What’s more, although customer expectations have risen over the last few
years, the percentage of “very satisfied” customers has remained flat for every service
channel over the three years we have conducted this survey.
The shortfall in service quality is more than a mere annoyance—it has genuine
business impact: lost customers as well as missed opportunities to gain new business.
Most respondents (59 percent) report having switched at least one provider in the past
year due to poor service. Switching occurs across industries, with geographic
variations. In Brazil, for example, wireless/cell phone companies suffered the greatest
frequency of witching (41 percent); in France that distinction belongs to Internet
service providers. In countries we have surveyed previously—the United States and
the United Kingdom—the percentage of consumers leaving due to poor service has
increased over time. The United Kingdom, for instance, has risen 8 points from 50
percent to 58 percent during the last three years. Poor service may also be preventing
companies from attracting new customers: nearly 60 percent of our respondents say
customer service is the key differentiating factor when choosing a new provider—even
ahead of price (55 percent), product (34 percent) and convenience (34 percent). This
finding offers the clearest evidence yet that companies known for delivering a
substandard service experience have a steep challenge ahead when it comes to growth.
37
Our Perspective
About Accenture
38
worldwide leader, serving thousands of clients every year, including most Fortune 100
companies, across virtually all industries.
39
40