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CUSTOMERCUSTOMER
SATISFACTIONSATISFACTION
CUSTOMER SATISFACTIONCUSTOMER SATISFACTION
• The most important asset of anyThe most important asset of any
organization is its customersorganization is its customers
• Satisfied customers pay their billsSatisfied customers pay their bills
promptly which greatly improvespromptly which greatly improves
cash flow – the lifeblood of anycash flow – the lifeblood of any
organizationorganization
ORGANIZATIONALORGANIZATIONAL
HIERARCHIAL DIAGRAMHIERARCHIAL DIAGRAM
•
CUSTOMERCUSTOMER
SATISFACTIONSATISFACTION
• CUSTOMERS EXPERIENCE OF ACUSTOMERS EXPERIENCE OF A
PRODUCT OR A SERVICE ISPRODUCT OR A SERVICE IS
MULTIFACETED SO HARD TOMULTIFACETED SO HARD TO
DETERMINEDETERMINE
• IT NEEDS TO BE MEASUREDIT NEEDS TO BE MEASURED
INDIVIDUALLY TO GET ANINDIVIDUALLY TO GET AN
ACCURATE TOTAL PICTURE OFACCURATE TOTAL PICTURE OF
CUSTOMER SATISFACTIONCUSTOMER SATISFACTION
CUSTOMER SATISFACTIONCUSTOMER SATISFACTION
• Customer satisfaction should not beCustomer satisfaction should not be
viewed in a vacuum.viewed in a vacuum.
• For example, a customer may beFor example, a customer may be
satisfied with a product or servicesatisfied with a product or service
and therefore rate the product orand therefore rate the product or
service highly in a survey and yetservice highly in a survey and yet
same customer may buy anothersame customer may buy another
productproduct..
CUSTOMER SATISFACTIONCUSTOMER SATISFACTION
• Similarly customer’s view about aSimilarly customer’s view about a
product or service are useless ifproduct or service are useless if
customer’s view about competitorscustomer’s view about competitors
products are not understoodproducts are not understood..
CUSTOMER SATISFACTIONCUSTOMER SATISFACTION
• The value customers places on theThe value customers places on the
product compared to another may beproduct compared to another may be
a better indication of customera better indication of customer
loyalty.loyalty.
External CustomerExternal Customer
Internal CustomerInternal Customer
TYPES OF CUSTOMER
CUSTOMER PERCEPTION OFCUSTOMER PERCEPTION OF
QUALITYQUALITY
ASQ SURVEY SHOWS THAT IMPORTANTASQ SURVEY SHOWS THAT IMPORTANT
FACTORS THAT INFLUENCEFACTORS THAT INFLUENCE
PURCHASING AREPURCHASING ARE
1.1. PERFORMANCEPERFORMANCE
2.2. FEATURESFEATURES
3.3. SERVICESERVICE
4.4. WARRANTYWARRANTY
5.5. PRICEPRICE
6.6. REPUTATIONREPUTATION
FEEDBACKFEEDBACK
• Comment Card.Comment Card.
• Customer Questionnaire.Customer Questionnaire.
• Focus Groups.Focus Groups.
• Toll Free Telephone No.Toll Free Telephone No.
• Customer Visits.Customer Visits.
• Report Card.Report Card.
• Internet & Computer.Internet & Computer.
• Employee Feedback.Employee Feedback.
• Customer complaintsCustomer complaints
COMMENT CARDCOMMENT CARD
• COMMENT CARD CAN BE ATTACHEDCOMMENT CARD CAN BE ATTACHED
TO THE WARRANTY CARD &TO THE WARRANTY CARD &
INCLUDED WITH THE PRODUCT ATINCLUDED WITH THE PRODUCT AT
THE TIME OF THE PURCHASETHE TIME OF THE PURCHASE
• INTENT OF THIS CARD IS TO GETINTENT OF THIS CARD IS TO GET
SIMPLE INFORMATION SUCH ASSIMPLE INFORMATION SUCH AS
NAME , AGE, ADDRESS,NAME , AGE, ADDRESS,
OCCUPATION & WHAT MADE THEOCCUPATION & WHAT MADE THE
CUSTOMER BUY THAT PRODUCTCUSTOMER BUY THAT PRODUCT
COMMENT CARDCOMMENT CARD
• FOR CUSTOMER THERE IS LITTLE ORFOR CUSTOMER THERE IS LITTLE OR
NO INCENTIVE TO COMMENTNO INCENTIVE TO COMMENT
• CUSTOMERS DO RESPOND WHENCUSTOMERS DO RESPOND WHEN
THERE IS SOMETHING VERY GOODTHERE IS SOMETHING VERY GOOD
OR VERY BADOR VERY BAD
• USED IN HOSPITALITYUSED IN HOSPITALITY
INDUSTRY(HOTELS, RESTAURANTS)INDUSTRY(HOTELS, RESTAURANTS)
CUSTOMERCUSTOMER
QUESTIONNAIREQUESTIONNAIRE
• POPULAR TOOL FOR OBTAININGPOPULAR TOOL FOR OBTAINING
OPINION & PERCEPTIONS ABOUTOPINION & PERCEPTIONS ABOUT
AN ORG./PRODUCT/SVSAN ORG./PRODUCT/SVS
• COSTLY & TIME CONSUMINGCOSTLY & TIME CONSUMING
• MOST SURVEYS ASK THE CUSTOMERMOST SURVEYS ASK THE CUSTOMER
TO GRADE THE QUESTION ON A 1-5TO GRADE THE QUESTION ON A 1-5
OR 1-10OR 1-10 LIKERT SCALELIKERT SCALE
• COMMUNICATION SKILLS 5 4 3 2 1COMMUNICATION SKILLS 5 4 3 2 1
• GRIP ON THE SUBJECT 5 4 3 2 1GRIP ON THE SUBJECT 5 4 3 2 1
• ANSWER TO THE QUESTIONS 5 4 3 2 1ANSWER TO THE QUESTIONS 5 4 3 2 1
• WHOLE CLASS PARTICIPATION 5 4 3 2 1WHOLE CLASS PARTICIPATION 5 4 3 2 1
• DO U FEEL ANY VALUE ADDITION 5 4 3 2 1DO U FEEL ANY VALUE ADDITION 5 4 3 2 1
AFTER HIS CLASSAFTER HIS CLASS
• DO U GO HOME SATISFIED AFTER 5 4 3 2 1DO U GO HOME SATISFIED AFTER 5 4 3 2 1
ATTENDING HIS LECTUREATTENDING HIS LECTURE
PARAMETER HIGHLY
SATISFIED
NEUTRAL HIGHLY
DISSATIS
TEACHING METHODOLOGY OF MUHAMAD ASIF
CUSTOMERCUSTOMER
QUESTIONNAIREQUESTIONNAIRE
• DOES NOT TELL ABOUT THE IMPORTANCEDOES NOT TELL ABOUT THE IMPORTANCE
OF INDIVIDUAL QUESTION RELATIVE TOOF INDIVIDUAL QUESTION RELATIVE TO
OTHERSOTHERS
• NOR DOES IT TELL WHAT CUSTOMERSNOR DOES IT TELL WHAT CUSTOMERS
EXPECT FROM ORGANIZATIONEXPECT FROM ORGANIZATION
• RESULTS ARE NOT REPRESENTATIVE OFRESULTS ARE NOT REPRESENTATIVE OF
THE NORMAL POPULATIONTHE NORMAL POPULATION
• THOSE WHO FEEL VERY GOOD OR VERYTHOSE WHO FEEL VERY GOOD OR VERY
BAD RESPOND ONLYBAD RESPOND ONLY
TO MAKE SURVEY MORETO MAKE SURVEY MORE
USEFUL REMEMBERUSEFUL REMEMBER
1.1. CLIENTS & CUSTOMERS ARE NOT SAMECLIENTS & CUSTOMERS ARE NOT SAME
2.2. SURVEY RAISE CUSTOMERSURVEY RAISE CUSTOMER
EXPECTATIONEXPECTATION
3.3. HOW U ASK A QUESTION WILLHOW U ASK A QUESTION WILL
DETERMINE HOW THE QUAESTION ISDETERMINE HOW THE QUAESTION IS
ANSWEREDANSWERED
4.4. THE MORE SPECIFIC THE QUESTION,THE MORE SPECIFIC THE QUESTION,
THE BETTER THE ANSWERTHE BETTER THE ANSWER
TO MAKE SURVEY MORE USEFULTO MAKE SURVEY MORE USEFUL
REMEMBERREMEMBER
5.5. U HAVE ONLY ONE CHANCE & 15 MIN.U HAVE ONLY ONE CHANCE & 15 MIN.
( max. time a customer will give to( max. time a customer will give to
respond a survey)respond a survey)
6.6. MORE TIME U SPEND IN SURVEYMORE TIME U SPEND IN SURVEY
DEVELOPMENT, LESS TIME U GET INDEVELOPMENT, LESS TIME U GET IN
DATA ANALYSIS & INTERPRETATIONDATA ANALYSIS & INTERPRETATION
7.7. WHOME U ASK IS AS IMPORTANT ASWHOME U ASK IS AS IMPORTANT AS
WHAT U ASKWHAT U ASK
8.8. BEFORE DATA ARE COLLECTED , UBEFORE DATA ARE COLLECTED , U
SHOULD KNOW HOW U WANT TOSHOULD KNOW HOW U WANT TO
ANALYSE & USE THE DATAANALYSE & USE THE DATA
FOCUS GROUPSFOCUS GROUPS
• POPULAR WAY TO OBTAIN FEEDBACKPOPULAR WAY TO OBTAIN FEEDBACK
• SURVEYING A FOCUS GROUP IS A RESEARCH METHODSURVEYING A FOCUS GROUP IS A RESEARCH METHOD
USED TO FIND OUT WHAT CUSTOMERS ARE REALLYUSED TO FIND OUT WHAT CUSTOMERS ARE REALLY
EXPECTINGEXPECTING
• GROUP OF CUSTOMERS IS ASSSEMBLED IN THEGROUP OF CUSTOMERS IS ASSSEMBLED IN THE
MEETING ROOM TO COLLECT INFORMATIONMEETING ROOM TO COLLECT INFORMATION
• CAREFULLY PREPARED ANSWERS R ASKED BY SKILLEDCAREFULLY PREPARED ANSWERS R ASKED BY SKILLED
MODEARTORMODEARTOR
• WHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTSWHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTS
PERCEPTIONS & COMMENTSPERCEPTIONS & COMMENTS
• PEOPLE SELECTED HAVE THE SAME PROFILE AS THEPEOPLE SELECTED HAVE THE SAME PROFILE AS THE
EXPECTED CUSTOMEREXPECTED CUSTOMER
• FOCUS GROUPS R SOMETIMES USED WITHIN TEFOCUS GROUPS R SOMETIMES USED WITHIN TE
ORGANIZATION TO ADDRESS INTERNAL ISSUESORGANIZATION TO ADDRESS INTERNAL ISSUES
FOCUS GROUPS( IMPRINT ANALYSIS)FOCUS GROUPS( IMPRINT ANALYSIS)
• IMPRINT ANALYSIS IS AN EMERGINGIMPRINT ANALYSIS IS AN EMERGING
TECHNIQUE USED IN THE FOCUS GROUPSTECHNIQUE USED IN THE FOCUS GROUPS
• GOOD WAY TO OBTAIN INTRINSICGOOD WAY TO OBTAIN INTRINSIC
FEELING ABOUT THE PRODUCT/SERVICEFEELING ABOUT THE PRODUCT/SERVICE
• FEELING R NOT EASILY OBTAINED FROMFEELING R NOT EASILY OBTAINED FROM
THE CUSTOMERSTHE CUSTOMERS
• CUSTOMERS OFTEN HOLDBACKCUSTOMERS OFTEN HOLDBACK
INFORMATIONS ON SURVEYINFORMATIONS ON SURVEY
FOCUS GROUPS (IMPRINTFOCUS GROUPS (IMPRINT
ANALYSIS)ANALYSIS)
• WORD ASSOCIATION, DISCUSSIONSWORD ASSOCIATION, DISCUSSIONS
& RELAXATION TECHNIQUES CAN& RELAXATION TECHNIQUES CAN
IDENTIFY A CUSTOMERS EMERGINGIDENTIFY A CUSTOMERS EMERGING
NEEDSNEEDS
• IMPRINT ANALYSIS HELPS TOIMPRINT ANALYSIS HELPS TO
UNDERSTAND THE HUMANUNDERSTAND THE HUMAN
EMOTIONS INVOLVED IN THEEMOTIONS INVOLVED IN THE
PURCHASE DECISIONPURCHASE DECISION
TOLL FREE PHONE NO.TOLL FREE PHONE NO.
• EFFECTIVE TECHNIQUE FOREFFECTIVE TECHNIQUE FOR
COMPLAINT FEEDBACKCOMPLAINT FEEDBACK
• ORGANIZATION CAN RESPONDORGANIZATION CAN RESPOND
FASTER & CHEAPLY TO THEFASTER & CHEAPLY TO THE
COMPLAINTSCOMPLAINTS
CUSTOMER VISITSCUSTOMER VISITS
• VISIT TO A CUSTOMERS PLACE OFVISIT TO A CUSTOMERS PLACE OF
BUSINESS IS AN EFFECTIVE WAY TOBUSINESS IS AN EFFECTIVE WAY TO
GATHER INFORMATIONGATHER INFORMATION
• ACCURATE INFORMATION OBTAINEDACCURATE INFORMATION OBTAINED
–PEOPLE CAN SEE FIRST HAND HOW–PEOPLE CAN SEE FIRST HAND HOW
THE PRODUCT IS PERFORMINGTHE PRODUCT IS PERFORMING
• REPORT CARDREPORT CARD
• THE INTERNET & THETHE INTERNET & THE
COMPUTERCOMPUTER
• EMPLOYEES R UNTAPPED SOURCEEMPLOYEES R UNTAPPED SOURCE
OF INFORMATIONSOF INFORMATIONS
• CONVENTIONALLY COMPANIESCONVENTIONALLY COMPANIES
LISTEN MORE TO THE EXTERNALLISTEN MORE TO THE EXTERNAL
CUSTOMERS & LESS TO THECUSTOMERS & LESS TO THE
INTERNAL CUSTOMERINTERNAL CUSTOMER
• EMPLOYEES USUALLY PROVIDEEMPLOYEES USUALLY PROVIDE
DEEPER INSIGHT INTODEEPER INSIGHT INTO
CONDITIOINSCONDITIOINS
EMPLOYEES FEEDBACKEMPLOYEES FEEDBACK
EMPLOYEES FEEDBACKEMPLOYEES FEEDBACK
• CUSTOMERS RESAERCH REVEALSCUSTOMERS RESAERCH REVEALS
WHAT IS HAPPENINGWHAT IS HAPPENING
• EMLOYEES REASEARCH REVEALSEMLOYEES REASEARCH REVEALS
WHY IT IS HAPPENINGWHY IT IS HAPPENING
• IT SHOULD BE REGULARLYIT SHOULD BE REGULARLY
SOLICITED RATHER THANSOLICITED RATHER THAN
CHECKING THE WOODEN BOXCHECKING THE WOODEN BOX
ANNUALLYANNUALLY
USING CUSTOMERUSING CUSTOMER
COMPLAINTSCOMPLAINTS
• THE FEEDBACK OBTAINED IN ALL ABOVETHE FEEDBACK OBTAINED IN ALL ABOVE
CASES IS PROACTIVECASES IS PROACTIVE
• CUSTOMER COMPLAINT IS REACTIVECUSTOMER COMPLAINT IS REACTIVE
BUT VERY USEFULBUT VERY USEFUL
• ASQ SURVEYASQ SURVEY REVEALS THAT ABOUTREVEALS THAT ABOUT
1.1. 1.5%1.5% COMPLAINTS REACH TOPCOMPLAINTS REACH TOP
MANAGEMENTMANAGEMENT
2.2. 20%20% TO FRONT LINE PERSONNELTO FRONT LINE PERSONNEL
3.3. 80%80% DON’T REPORTDON’T REPORT
• IT INDICATES THAT IT IS EASYIT INDICATES THAT IT IS EASY
FOR THE TOP MANGMNT TOFOR THE TOP MANGMNT TO
PERCEIVE THAT EVERY THING ISPERCEIVE THAT EVERY THING IS
OKOK
• WHEN SATISFIED CUSTOMERS RWHEN SATISFIED CUSTOMERS R
INCLUDED IN THE DATA, NO. OFINCLUDED IN THE DATA, NO. OF
COMPLAINTS TO MANGMNT ISCOMPLAINTS TO MANGMNT IS
LOWER THAN 1.5%LOWER THAN 1.5%
• FREQUENTLY DISSATISFIEDFREQUENTLY DISSATISFIED
CUSTOMERS DON’T SAYCUSTOMERS DON’T SAY
ANYTHING & QUIETLY SWITCHANYTHING & QUIETLY SWITCH
OVER TO COMPETITOROVER TO COMPETITOR
• THOSE WHO DONT COMPLAIN RTHOSE WHO DONT COMPLAIN R
THE ONE WHO SHOULD WORRYTHE ONE WHO SHOULD WORRY
THE ORGANIZATION MOSTTHE ORGANIZATION MOST
• BY TAKING THE POSITIVEBY TAKING THE POSITIVE
APPROACH TO THE COMPLAINTSAPPROACH TO THE COMPLAINTS
IT IS POSSIBLE TO IMPROVE THEIT IS POSSIBLE TO IMPROVE THE
PRODUCTS/SERVICESPRODUCTS/SERVICES
• IN FACT COMPLAINTS GIVE THEIN FACT COMPLAINTS GIVE THE
ORGANIZATION A SECONDORGANIZATION A SECOND
CHANCECHANCE
• ONCE U HAVE IDENTIFIED THEONCE U HAVE IDENTIFIED THE
COMPLAINTS/ PROBLEMSCOMPLAINTS/ PROBLEMS
NOW TURN TO ELIMINATION.NOW TURN TO ELIMINATION.
INCORPORATE CUSTOMER VOICEINCORPORATE CUSTOMER VOICE
INTO PRODUCT/ SERVICEINTO PRODUCT/ SERVICE
• GIVE CUSTOMER EXACTLY WHATGIVE CUSTOMER EXACTLY WHAT
CUSTOMER WANTSCUSTOMER WANTS
Mass CustomizationMass Customization
Mass customizationMass customization
• IN THE OUTSET, PRICE TAG ONIN THE OUTSET, PRICE TAG ON
SUCH PRODUCTS WASSUCH PRODUCTS WAS
PROHIBITIVE, BUT M.C PROVIDESPROHIBITIVE, BUT M.C PROVIDES
THIS AT AFFORDABLE PRICETHIS AT AFFORDABLE PRICE
• M.C IS RESULT OF FLEXIBLEM.C IS RESULT OF FLEXIBLE
MANUFACTURINGMANUFACTURING
SYSTEM(FMS),JIT,& CYCLE TIMESYSTEM(FMS),JIT,& CYCLE TIME
REDUCTIONREDUCTION
Mass customizationMass customization
• IN AUTOMOBILES IT IS SINCE MANYIN AUTOMOBILES IT IS SINCE MANY
YEARSYEARS
• CUSTOMER MAY DETERMINE WHATCUSTOMER MAY DETERMINE WHAT
TYPE OF SEAT COVERINGS, COLOURTYPE OF SEAT COVERINGS, COLOUR
& STEREO SYSYTEM THEY WANT& STEREO SYSYTEM THEY WANT
• COMPUTER MFRs & ASSEMBLERS DOCOMPUTER MFRs & ASSEMBLERS DO
ITIT
–Modular designModular design
–Delayed differentiationDelayed differentiation
Mass customizationMass customization
MODULAR DESIGNMODULAR DESIGN
Is a form of standardization in whichIs a form of standardization in which
component parts are subdivided intocomponent parts are subdivided into
modules that are easily replaced ormodules that are easily replaced or
interchanged. It allows:interchanged. It allows:
•Easier diagnosis and remedy of failuresEasier diagnosis and remedy of failures
•Easier repair and replacementEasier repair and replacement
•Simplification of manufacturing andSimplification of manufacturing and
assemblyassembly
DISADVANTAGEDISADVANTAGE::
Variety DecreasesVariety Decreases
Delayed differentiation is aDelayed differentiation is a
postponement tacticpostponement tactic
• Producing but not quite completingProducing but not quite completing
a product or service until customera product or service until customer
preferences or specifications arepreferences or specifications are
knownknown
DELAYED DIFFERENTIATIONDELAYED DIFFERENTIATION
DELAYED DIFFERENTIATIONDELAYED DIFFERENTIATION
““Over the Wall” ApproachOver the Wall” Approach
Desig
n
Mf
g
New
Product
CONCURRENTCONCURRENT
ENGINEERINGENGINEERING
Concurrent engineeringConcurrent engineering
is bringing togetheris bringing together
marketing, engineering,marketing, engineering,
manufacturing, purchasing,manufacturing, purchasing,
service, packaging, etc.service, packaging, etc.
people early in the designpeople early in the design
phase.phase.
Design that results in products orDesign that results in products or
services that can function over aservices that can function over a
broad range of conditionsbroad range of conditions
ROBUST DESIGN
CUSTOMERS’ REQUIREMENTSCUSTOMERS’ REQUIREMENTS
• NORMAL REQUIREMENTSNORMAL REQUIREMENTS Are typicallyAre typically
what one gets by just asking customers whatwhat one gets by just asking customers what
they want.they want.
• EXPECTED REQUIREMENTSEXPECTED REQUIREMENTS Are theAre the
obvious / compulsory requirements. Forobvious / compulsory requirements. For
example, if meal is served hot, customersexample, if meal is served hot, customers
barely notice it. If it's cold or too hot,barely notice it. If it's cold or too hot,
dissatisfaction occurs. Expected requirementsdissatisfaction occurs. Expected requirements
must be fulfilled.must be fulfilled.
• EXCITING REQUIREMENTSEXCITING REQUIREMENTS
Beyond the customer's expectations.Beyond the customer's expectations.
If provided , customer would be excitedIf provided , customer would be excited
If not ,they would hardly complainIf not ,they would hardly complain
IN OTHER WORDSIN OTHER WORDS
• NORMAL REQUIREMENTSNORMAL REQUIREMENTS
• MORE IS BETTERMORE IS BETTER
• EXPECTED REQUIREMENTSEXPECTED REQUIREMENTS
• MUST BEMUST BE
• EXCITING REQUIREMENTSEXCITING REQUIREMENTS
DELIGHTENING,EXCITING, WOW FACTORDELIGHTENING,EXCITING, WOW FACTOR
+
+-
-
Satisfaction
Dissatisfaction
Service
Dysfunctions
Service
Fully
Functions
EXCITERS
Must Be
MORE IS
BETTER
Less satisfied when the
product or service is less
functional, but cannot
increase satisfaction
substantially if operational
- "up-time"
If the requirement is absent
it does not cause
dissatisfaction, but it will
delight clients if present -
"camera options"
The more requirements
are met the more one is
satisfied
KANOS MODEL
QUESTIONS?QUESTIONS?

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Customer satisfaction

  • 2. CUSTOMER SATISFACTIONCUSTOMER SATISFACTION • The most important asset of anyThe most important asset of any organization is its customersorganization is its customers • Satisfied customers pay their billsSatisfied customers pay their bills promptly which greatly improvespromptly which greatly improves cash flow – the lifeblood of anycash flow – the lifeblood of any organizationorganization
  • 4. CUSTOMERCUSTOMER SATISFACTIONSATISFACTION • CUSTOMERS EXPERIENCE OF ACUSTOMERS EXPERIENCE OF A PRODUCT OR A SERVICE ISPRODUCT OR A SERVICE IS MULTIFACETED SO HARD TOMULTIFACETED SO HARD TO DETERMINEDETERMINE • IT NEEDS TO BE MEASUREDIT NEEDS TO BE MEASURED INDIVIDUALLY TO GET ANINDIVIDUALLY TO GET AN ACCURATE TOTAL PICTURE OFACCURATE TOTAL PICTURE OF CUSTOMER SATISFACTIONCUSTOMER SATISFACTION
  • 5. CUSTOMER SATISFACTIONCUSTOMER SATISFACTION • Customer satisfaction should not beCustomer satisfaction should not be viewed in a vacuum.viewed in a vacuum. • For example, a customer may beFor example, a customer may be satisfied with a product or servicesatisfied with a product or service and therefore rate the product orand therefore rate the product or service highly in a survey and yetservice highly in a survey and yet same customer may buy anothersame customer may buy another productproduct..
  • 6. CUSTOMER SATISFACTIONCUSTOMER SATISFACTION • Similarly customer’s view about aSimilarly customer’s view about a product or service are useless ifproduct or service are useless if customer’s view about competitorscustomer’s view about competitors products are not understoodproducts are not understood..
  • 7. CUSTOMER SATISFACTIONCUSTOMER SATISFACTION • The value customers places on theThe value customers places on the product compared to another may beproduct compared to another may be a better indication of customera better indication of customer loyalty.loyalty.
  • 8. External CustomerExternal Customer Internal CustomerInternal Customer TYPES OF CUSTOMER
  • 9. CUSTOMER PERCEPTION OFCUSTOMER PERCEPTION OF QUALITYQUALITY ASQ SURVEY SHOWS THAT IMPORTANTASQ SURVEY SHOWS THAT IMPORTANT FACTORS THAT INFLUENCEFACTORS THAT INFLUENCE PURCHASING AREPURCHASING ARE 1.1. PERFORMANCEPERFORMANCE 2.2. FEATURESFEATURES 3.3. SERVICESERVICE 4.4. WARRANTYWARRANTY 5.5. PRICEPRICE 6.6. REPUTATIONREPUTATION
  • 10. FEEDBACKFEEDBACK • Comment Card.Comment Card. • Customer Questionnaire.Customer Questionnaire. • Focus Groups.Focus Groups. • Toll Free Telephone No.Toll Free Telephone No. • Customer Visits.Customer Visits. • Report Card.Report Card. • Internet & Computer.Internet & Computer. • Employee Feedback.Employee Feedback. • Customer complaintsCustomer complaints
  • 11. COMMENT CARDCOMMENT CARD • COMMENT CARD CAN BE ATTACHEDCOMMENT CARD CAN BE ATTACHED TO THE WARRANTY CARD &TO THE WARRANTY CARD & INCLUDED WITH THE PRODUCT ATINCLUDED WITH THE PRODUCT AT THE TIME OF THE PURCHASETHE TIME OF THE PURCHASE • INTENT OF THIS CARD IS TO GETINTENT OF THIS CARD IS TO GET SIMPLE INFORMATION SUCH ASSIMPLE INFORMATION SUCH AS NAME , AGE, ADDRESS,NAME , AGE, ADDRESS, OCCUPATION & WHAT MADE THEOCCUPATION & WHAT MADE THE CUSTOMER BUY THAT PRODUCTCUSTOMER BUY THAT PRODUCT
  • 12. COMMENT CARDCOMMENT CARD • FOR CUSTOMER THERE IS LITTLE ORFOR CUSTOMER THERE IS LITTLE OR NO INCENTIVE TO COMMENTNO INCENTIVE TO COMMENT • CUSTOMERS DO RESPOND WHENCUSTOMERS DO RESPOND WHEN THERE IS SOMETHING VERY GOODTHERE IS SOMETHING VERY GOOD OR VERY BADOR VERY BAD • USED IN HOSPITALITYUSED IN HOSPITALITY INDUSTRY(HOTELS, RESTAURANTS)INDUSTRY(HOTELS, RESTAURANTS)
  • 13. CUSTOMERCUSTOMER QUESTIONNAIREQUESTIONNAIRE • POPULAR TOOL FOR OBTAININGPOPULAR TOOL FOR OBTAINING OPINION & PERCEPTIONS ABOUTOPINION & PERCEPTIONS ABOUT AN ORG./PRODUCT/SVSAN ORG./PRODUCT/SVS • COSTLY & TIME CONSUMINGCOSTLY & TIME CONSUMING • MOST SURVEYS ASK THE CUSTOMERMOST SURVEYS ASK THE CUSTOMER TO GRADE THE QUESTION ON A 1-5TO GRADE THE QUESTION ON A 1-5 OR 1-10OR 1-10 LIKERT SCALELIKERT SCALE
  • 14. • COMMUNICATION SKILLS 5 4 3 2 1COMMUNICATION SKILLS 5 4 3 2 1 • GRIP ON THE SUBJECT 5 4 3 2 1GRIP ON THE SUBJECT 5 4 3 2 1 • ANSWER TO THE QUESTIONS 5 4 3 2 1ANSWER TO THE QUESTIONS 5 4 3 2 1 • WHOLE CLASS PARTICIPATION 5 4 3 2 1WHOLE CLASS PARTICIPATION 5 4 3 2 1 • DO U FEEL ANY VALUE ADDITION 5 4 3 2 1DO U FEEL ANY VALUE ADDITION 5 4 3 2 1 AFTER HIS CLASSAFTER HIS CLASS • DO U GO HOME SATISFIED AFTER 5 4 3 2 1DO U GO HOME SATISFIED AFTER 5 4 3 2 1 ATTENDING HIS LECTUREATTENDING HIS LECTURE PARAMETER HIGHLY SATISFIED NEUTRAL HIGHLY DISSATIS TEACHING METHODOLOGY OF MUHAMAD ASIF
  • 15. CUSTOMERCUSTOMER QUESTIONNAIREQUESTIONNAIRE • DOES NOT TELL ABOUT THE IMPORTANCEDOES NOT TELL ABOUT THE IMPORTANCE OF INDIVIDUAL QUESTION RELATIVE TOOF INDIVIDUAL QUESTION RELATIVE TO OTHERSOTHERS • NOR DOES IT TELL WHAT CUSTOMERSNOR DOES IT TELL WHAT CUSTOMERS EXPECT FROM ORGANIZATIONEXPECT FROM ORGANIZATION • RESULTS ARE NOT REPRESENTATIVE OFRESULTS ARE NOT REPRESENTATIVE OF THE NORMAL POPULATIONTHE NORMAL POPULATION • THOSE WHO FEEL VERY GOOD OR VERYTHOSE WHO FEEL VERY GOOD OR VERY BAD RESPOND ONLYBAD RESPOND ONLY
  • 16. TO MAKE SURVEY MORETO MAKE SURVEY MORE USEFUL REMEMBERUSEFUL REMEMBER 1.1. CLIENTS & CUSTOMERS ARE NOT SAMECLIENTS & CUSTOMERS ARE NOT SAME 2.2. SURVEY RAISE CUSTOMERSURVEY RAISE CUSTOMER EXPECTATIONEXPECTATION 3.3. HOW U ASK A QUESTION WILLHOW U ASK A QUESTION WILL DETERMINE HOW THE QUAESTION ISDETERMINE HOW THE QUAESTION IS ANSWEREDANSWERED 4.4. THE MORE SPECIFIC THE QUESTION,THE MORE SPECIFIC THE QUESTION, THE BETTER THE ANSWERTHE BETTER THE ANSWER
  • 17. TO MAKE SURVEY MORE USEFULTO MAKE SURVEY MORE USEFUL REMEMBERREMEMBER 5.5. U HAVE ONLY ONE CHANCE & 15 MIN.U HAVE ONLY ONE CHANCE & 15 MIN. ( max. time a customer will give to( max. time a customer will give to respond a survey)respond a survey) 6.6. MORE TIME U SPEND IN SURVEYMORE TIME U SPEND IN SURVEY DEVELOPMENT, LESS TIME U GET INDEVELOPMENT, LESS TIME U GET IN DATA ANALYSIS & INTERPRETATIONDATA ANALYSIS & INTERPRETATION 7.7. WHOME U ASK IS AS IMPORTANT ASWHOME U ASK IS AS IMPORTANT AS WHAT U ASKWHAT U ASK 8.8. BEFORE DATA ARE COLLECTED , UBEFORE DATA ARE COLLECTED , U SHOULD KNOW HOW U WANT TOSHOULD KNOW HOW U WANT TO ANALYSE & USE THE DATAANALYSE & USE THE DATA
  • 18. FOCUS GROUPSFOCUS GROUPS • POPULAR WAY TO OBTAIN FEEDBACKPOPULAR WAY TO OBTAIN FEEDBACK • SURVEYING A FOCUS GROUP IS A RESEARCH METHODSURVEYING A FOCUS GROUP IS A RESEARCH METHOD USED TO FIND OUT WHAT CUSTOMERS ARE REALLYUSED TO FIND OUT WHAT CUSTOMERS ARE REALLY EXPECTINGEXPECTING • GROUP OF CUSTOMERS IS ASSSEMBLED IN THEGROUP OF CUSTOMERS IS ASSSEMBLED IN THE MEETING ROOM TO COLLECT INFORMATIONMEETING ROOM TO COLLECT INFORMATION • CAREFULLY PREPARED ANSWERS R ASKED BY SKILLEDCAREFULLY PREPARED ANSWERS R ASKED BY SKILLED MODEARTORMODEARTOR • WHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTSWHO PROBES INTO PARTICIPANTS IDEAS, THOUGHTS PERCEPTIONS & COMMENTSPERCEPTIONS & COMMENTS • PEOPLE SELECTED HAVE THE SAME PROFILE AS THEPEOPLE SELECTED HAVE THE SAME PROFILE AS THE EXPECTED CUSTOMEREXPECTED CUSTOMER • FOCUS GROUPS R SOMETIMES USED WITHIN TEFOCUS GROUPS R SOMETIMES USED WITHIN TE ORGANIZATION TO ADDRESS INTERNAL ISSUESORGANIZATION TO ADDRESS INTERNAL ISSUES
  • 19. FOCUS GROUPS( IMPRINT ANALYSIS)FOCUS GROUPS( IMPRINT ANALYSIS) • IMPRINT ANALYSIS IS AN EMERGINGIMPRINT ANALYSIS IS AN EMERGING TECHNIQUE USED IN THE FOCUS GROUPSTECHNIQUE USED IN THE FOCUS GROUPS • GOOD WAY TO OBTAIN INTRINSICGOOD WAY TO OBTAIN INTRINSIC FEELING ABOUT THE PRODUCT/SERVICEFEELING ABOUT THE PRODUCT/SERVICE • FEELING R NOT EASILY OBTAINED FROMFEELING R NOT EASILY OBTAINED FROM THE CUSTOMERSTHE CUSTOMERS • CUSTOMERS OFTEN HOLDBACKCUSTOMERS OFTEN HOLDBACK INFORMATIONS ON SURVEYINFORMATIONS ON SURVEY
  • 20. FOCUS GROUPS (IMPRINTFOCUS GROUPS (IMPRINT ANALYSIS)ANALYSIS) • WORD ASSOCIATION, DISCUSSIONSWORD ASSOCIATION, DISCUSSIONS & RELAXATION TECHNIQUES CAN& RELAXATION TECHNIQUES CAN IDENTIFY A CUSTOMERS EMERGINGIDENTIFY A CUSTOMERS EMERGING NEEDSNEEDS • IMPRINT ANALYSIS HELPS TOIMPRINT ANALYSIS HELPS TO UNDERSTAND THE HUMANUNDERSTAND THE HUMAN EMOTIONS INVOLVED IN THEEMOTIONS INVOLVED IN THE PURCHASE DECISIONPURCHASE DECISION
  • 21. TOLL FREE PHONE NO.TOLL FREE PHONE NO. • EFFECTIVE TECHNIQUE FOREFFECTIVE TECHNIQUE FOR COMPLAINT FEEDBACKCOMPLAINT FEEDBACK • ORGANIZATION CAN RESPONDORGANIZATION CAN RESPOND FASTER & CHEAPLY TO THEFASTER & CHEAPLY TO THE COMPLAINTSCOMPLAINTS
  • 22. CUSTOMER VISITSCUSTOMER VISITS • VISIT TO A CUSTOMERS PLACE OFVISIT TO A CUSTOMERS PLACE OF BUSINESS IS AN EFFECTIVE WAY TOBUSINESS IS AN EFFECTIVE WAY TO GATHER INFORMATIONGATHER INFORMATION • ACCURATE INFORMATION OBTAINEDACCURATE INFORMATION OBTAINED –PEOPLE CAN SEE FIRST HAND HOW–PEOPLE CAN SEE FIRST HAND HOW THE PRODUCT IS PERFORMINGTHE PRODUCT IS PERFORMING
  • 23. • REPORT CARDREPORT CARD • THE INTERNET & THETHE INTERNET & THE COMPUTERCOMPUTER
  • 24.
  • 25. • EMPLOYEES R UNTAPPED SOURCEEMPLOYEES R UNTAPPED SOURCE OF INFORMATIONSOF INFORMATIONS • CONVENTIONALLY COMPANIESCONVENTIONALLY COMPANIES LISTEN MORE TO THE EXTERNALLISTEN MORE TO THE EXTERNAL CUSTOMERS & LESS TO THECUSTOMERS & LESS TO THE INTERNAL CUSTOMERINTERNAL CUSTOMER • EMPLOYEES USUALLY PROVIDEEMPLOYEES USUALLY PROVIDE DEEPER INSIGHT INTODEEPER INSIGHT INTO CONDITIOINSCONDITIOINS EMPLOYEES FEEDBACKEMPLOYEES FEEDBACK
  • 26. EMPLOYEES FEEDBACKEMPLOYEES FEEDBACK • CUSTOMERS RESAERCH REVEALSCUSTOMERS RESAERCH REVEALS WHAT IS HAPPENINGWHAT IS HAPPENING • EMLOYEES REASEARCH REVEALSEMLOYEES REASEARCH REVEALS WHY IT IS HAPPENINGWHY IT IS HAPPENING • IT SHOULD BE REGULARLYIT SHOULD BE REGULARLY SOLICITED RATHER THANSOLICITED RATHER THAN CHECKING THE WOODEN BOXCHECKING THE WOODEN BOX ANNUALLYANNUALLY
  • 27. USING CUSTOMERUSING CUSTOMER COMPLAINTSCOMPLAINTS • THE FEEDBACK OBTAINED IN ALL ABOVETHE FEEDBACK OBTAINED IN ALL ABOVE CASES IS PROACTIVECASES IS PROACTIVE • CUSTOMER COMPLAINT IS REACTIVECUSTOMER COMPLAINT IS REACTIVE BUT VERY USEFULBUT VERY USEFUL • ASQ SURVEYASQ SURVEY REVEALS THAT ABOUTREVEALS THAT ABOUT 1.1. 1.5%1.5% COMPLAINTS REACH TOPCOMPLAINTS REACH TOP MANAGEMENTMANAGEMENT 2.2. 20%20% TO FRONT LINE PERSONNELTO FRONT LINE PERSONNEL 3.3. 80%80% DON’T REPORTDON’T REPORT
  • 28. • IT INDICATES THAT IT IS EASYIT INDICATES THAT IT IS EASY FOR THE TOP MANGMNT TOFOR THE TOP MANGMNT TO PERCEIVE THAT EVERY THING ISPERCEIVE THAT EVERY THING IS OKOK • WHEN SATISFIED CUSTOMERS RWHEN SATISFIED CUSTOMERS R INCLUDED IN THE DATA, NO. OFINCLUDED IN THE DATA, NO. OF COMPLAINTS TO MANGMNT ISCOMPLAINTS TO MANGMNT IS LOWER THAN 1.5%LOWER THAN 1.5% • FREQUENTLY DISSATISFIEDFREQUENTLY DISSATISFIED CUSTOMERS DON’T SAYCUSTOMERS DON’T SAY ANYTHING & QUIETLY SWITCHANYTHING & QUIETLY SWITCH OVER TO COMPETITOROVER TO COMPETITOR
  • 29. • THOSE WHO DONT COMPLAIN RTHOSE WHO DONT COMPLAIN R THE ONE WHO SHOULD WORRYTHE ONE WHO SHOULD WORRY THE ORGANIZATION MOSTTHE ORGANIZATION MOST • BY TAKING THE POSITIVEBY TAKING THE POSITIVE APPROACH TO THE COMPLAINTSAPPROACH TO THE COMPLAINTS IT IS POSSIBLE TO IMPROVE THEIT IS POSSIBLE TO IMPROVE THE PRODUCTS/SERVICESPRODUCTS/SERVICES • IN FACT COMPLAINTS GIVE THEIN FACT COMPLAINTS GIVE THE ORGANIZATION A SECONDORGANIZATION A SECOND CHANCECHANCE
  • 30. • ONCE U HAVE IDENTIFIED THEONCE U HAVE IDENTIFIED THE COMPLAINTS/ PROBLEMSCOMPLAINTS/ PROBLEMS NOW TURN TO ELIMINATION.NOW TURN TO ELIMINATION. INCORPORATE CUSTOMER VOICEINCORPORATE CUSTOMER VOICE INTO PRODUCT/ SERVICEINTO PRODUCT/ SERVICE
  • 31. • GIVE CUSTOMER EXACTLY WHATGIVE CUSTOMER EXACTLY WHAT CUSTOMER WANTSCUSTOMER WANTS Mass CustomizationMass Customization
  • 32. Mass customizationMass customization • IN THE OUTSET, PRICE TAG ONIN THE OUTSET, PRICE TAG ON SUCH PRODUCTS WASSUCH PRODUCTS WAS PROHIBITIVE, BUT M.C PROVIDESPROHIBITIVE, BUT M.C PROVIDES THIS AT AFFORDABLE PRICETHIS AT AFFORDABLE PRICE • M.C IS RESULT OF FLEXIBLEM.C IS RESULT OF FLEXIBLE MANUFACTURINGMANUFACTURING SYSTEM(FMS),JIT,& CYCLE TIMESYSTEM(FMS),JIT,& CYCLE TIME REDUCTIONREDUCTION
  • 33. Mass customizationMass customization • IN AUTOMOBILES IT IS SINCE MANYIN AUTOMOBILES IT IS SINCE MANY YEARSYEARS • CUSTOMER MAY DETERMINE WHATCUSTOMER MAY DETERMINE WHAT TYPE OF SEAT COVERINGS, COLOURTYPE OF SEAT COVERINGS, COLOUR & STEREO SYSYTEM THEY WANT& STEREO SYSYTEM THEY WANT • COMPUTER MFRs & ASSEMBLERS DOCOMPUTER MFRs & ASSEMBLERS DO ITIT
  • 34. –Modular designModular design –Delayed differentiationDelayed differentiation Mass customizationMass customization
  • 35. MODULAR DESIGNMODULAR DESIGN Is a form of standardization in whichIs a form of standardization in which component parts are subdivided intocomponent parts are subdivided into modules that are easily replaced ormodules that are easily replaced or interchanged. It allows:interchanged. It allows: •Easier diagnosis and remedy of failuresEasier diagnosis and remedy of failures •Easier repair and replacementEasier repair and replacement •Simplification of manufacturing andSimplification of manufacturing and assemblyassembly DISADVANTAGEDISADVANTAGE:: Variety DecreasesVariety Decreases
  • 36. Delayed differentiation is aDelayed differentiation is a postponement tacticpostponement tactic • Producing but not quite completingProducing but not quite completing a product or service until customera product or service until customer preferences or specifications arepreferences or specifications are knownknown DELAYED DIFFERENTIATIONDELAYED DIFFERENTIATION
  • 38. ““Over the Wall” ApproachOver the Wall” Approach Desig n Mf g New Product
  • 39. CONCURRENTCONCURRENT ENGINEERINGENGINEERING Concurrent engineeringConcurrent engineering is bringing togetheris bringing together marketing, engineering,marketing, engineering, manufacturing, purchasing,manufacturing, purchasing, service, packaging, etc.service, packaging, etc. people early in the designpeople early in the design phase.phase.
  • 40. Design that results in products orDesign that results in products or services that can function over aservices that can function over a broad range of conditionsbroad range of conditions ROBUST DESIGN
  • 41. CUSTOMERS’ REQUIREMENTSCUSTOMERS’ REQUIREMENTS • NORMAL REQUIREMENTSNORMAL REQUIREMENTS Are typicallyAre typically what one gets by just asking customers whatwhat one gets by just asking customers what they want.they want. • EXPECTED REQUIREMENTSEXPECTED REQUIREMENTS Are theAre the obvious / compulsory requirements. Forobvious / compulsory requirements. For example, if meal is served hot, customersexample, if meal is served hot, customers barely notice it. If it's cold or too hot,barely notice it. If it's cold or too hot, dissatisfaction occurs. Expected requirementsdissatisfaction occurs. Expected requirements must be fulfilled.must be fulfilled. • EXCITING REQUIREMENTSEXCITING REQUIREMENTS Beyond the customer's expectations.Beyond the customer's expectations. If provided , customer would be excitedIf provided , customer would be excited If not ,they would hardly complainIf not ,they would hardly complain
  • 42. IN OTHER WORDSIN OTHER WORDS • NORMAL REQUIREMENTSNORMAL REQUIREMENTS • MORE IS BETTERMORE IS BETTER • EXPECTED REQUIREMENTSEXPECTED REQUIREMENTS • MUST BEMUST BE • EXCITING REQUIREMENTSEXCITING REQUIREMENTS DELIGHTENING,EXCITING, WOW FACTORDELIGHTENING,EXCITING, WOW FACTOR
  • 43. + +- - Satisfaction Dissatisfaction Service Dysfunctions Service Fully Functions EXCITERS Must Be MORE IS BETTER Less satisfied when the product or service is less functional, but cannot increase satisfaction substantially if operational - "up-time" If the requirement is absent it does not cause dissatisfaction, but it will delight clients if present - "camera options" The more requirements are met the more one is satisfied KANOS MODEL