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IMPROVEMENT OF CUSTOMER SERVICE POLICIES
Brittany Barnhart, Employed by Tan24
Warrensburg Tan24 Sonnen Studio
November 13, 2016

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IMPROVEMENT OF CUSTOMER SERVICE POLICIES
Matthew Gray, Owner
Warrensburg Tan24 Sonnen Studio
Corporate
Tan24 America Inc.
Brittany Barnhart, Employed by Tan24
Warrensburg Tan24 Sonnen Studio
November 13, 2016

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November 13, 2016
Matthew Gray
Warrensburg Tan24 Sonnen Studio
202 N. Holden St.
Warrensburg, MO. 64093
Dear Matthew Gray,
I have created the attached report to be presented to current corporate members of the Tan24
Sonnen Studio franchise. The report describes the procedures that should be implemented
pertaining to customer service and improving customer satisfaction. My recommendations for
increasing customer loyalty through training in personalized customer service are also included. I
believe you will find these recommendations useful for the future of Tan24.
Primary research included interviews with the current employees full of generalized questions of
procedures they currently use to gain customer loyalty.
Thank you for allowing me to submit this comprehensive report. I would be pleased to discuss this
report and its conclusions with you. Contact me by phone at (660-362-1500) or email at
bmb91710@ucmo.edu
Sincerely,
Brittany Barnhart
Employee
Warrensburg Tan24 Sonnen Studio

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TABLE OF CONTENTS
EXECUTIVE SUMMARY .........................................................................................................vi
INTRODUCTION: TAN24 CUSTOMER SERVICE TECHNIQUES .........................................1
DISCUSSION: CURRENT CUSTOMER SERVICE ..................................................................1
Minimum Service Standards ...............................................................................................2
Inefficiencies of the Current Standards .............................................................................2
DISCUSSION: CUSTOMER SERVICE SATISFACTION ..........................................................2
Customer Feedback ..........................................................................................................2
Improving Customer Service ...........................................................................................3
DISCUSSION: CUSTOMER LOYALTY .....................................................................................5
Benefits of Effective Policies ..............................................................................................5
Obtaining Customer Loyalty ...............................................................................................5
Preserving Loyal Customers .............................................................................................6
Cost of Implementing Policies ..........................................................................................6
SUMMARY OF CONCLUSIONS .................................................................................................9
Tan24 Sonnen Studio Current Customer Service Program ................................................9
In Support for Updated Policies ........................................................................................9
RECOMMENDATIONS ..............................................................................................................10
Implement Customer Satisfaction Surveys .......................................................................10
Implement Effective Policies and Determine Current Skills ............................................10
Training .............................................................................................................................10
Annual Meetings ...............................................................................................................10
Assess Customer Loyalty Retention and Benefits of Policies ..........................................10
APPENDIX .................................................................................................................................11
REFERENCES ...........................................................................................................................14

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LIST OF FIGURES
Figure:
1. CONCEPTUAL MODEL RESULTS ........................................................................4
2. COST OF TRAINING TO IMPLEMENT UPDATED POLICIES FOR TAN24
SONNEN STUDIO ....................................................................................................7
3. AVERAGE TRAINING COST EXPENDITURE PER HOURLY..............................8

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EXECUTIVE SUMMARY
The Warrensburg Tan24 Sonnen Studio and corporate would benefit considerably
by implementing new and updated policies for customer service. The benefits
resulting from this expansion on the customer service methods are evidenced in this
report, created by Brittany Barnhart, a current employee of Tan24. The purpose of
this report is to analyze the current customer service policies and determine if
updating them is economical to enhance customer satisfaction for Tan24 Sonnen
Studio. Evaluating and updating the customer service methods would benefit the
business along with its current customers and employees.
My conclusions for updating the current service standards prove with research,
beneficial for small businesses in competitive small markets. Testing these
improved methods on current employees would lead to an expansion of customer
loyalty with current customers and bring new business to Tan24 Sonnen Studio.
Analysis of the research conducted reveals the following benefits:
1. Customer service is the groundwork of a small business standing out in
competitive markets, success depends on the customer and the customer
depends on the service.
2. Customer satisfaction relies on the improvements a business is willing to
make in order tostrive for excellenceand domination in competitive markets.
3. Customer loyalty is the foundation of a small business, because the cost of
gaining a new customer is much higher than selling a repeat customer.
Based on these findings, it is recommended that CEO’s of small businesses take
charge to save their company. To protect this business and the reputation of its
exclusivity, it is imperative to implement effective customer service methods. These
methods will facilitate a friendly environment and focus on customer satisfaction in
order to gain future customer loyal.

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INTRODUCTION: TAN24 CUSTOMER SERVICE PROCESS
The main goal of Tan24 Sonnen Studio is to provide an excellent tanning experience and pristine
customer service to dominate the competition in the market. However, due to the decrease in the
market this past year, it has been very difficult to stand out as a company with limited customer
loyalty. Customer satisfaction is a vital key to the success for small businesses success. Customer
service quality and satisfaction have been the weakest link in the company recently. The customer
volume is so low currently that Tan24 should take the time to update some of the procedures to
prepare for the predicted busy season to make lasting impressions. The customer satisfaction rate
has recently taken a downturn due to the possibility inconsistent procedures. The problem being
identified: is how can we expect to gain new customers if we cannot keep the ones we already
have?
Some key methods discussed in the article “Improving Customer Service”, published by Faulkner
& Gray, Inc. are specifically involving employees being able to process and handle high levels of
dissatisfaction and complaints. The article suggests the ability to be affective problem-solvers is
the key to gaining customer loyalty with the proper training and skills to take on challenging
situations with the customers. This article suggests that with these skills a business can expect to
gain customer loyalty and begin the route to success.
Overall, this report was created to analyze the effectiveness of Tan24 Sonnen Studio’s current
service techniques and standards to evaluate the possibility of improvements and if any can be
made economically. This report will also observe the process to gaining customer satisfaction with
goals of eventual customer loyalty. The increasing level of dissatisfaction in customer service is
an issue that all businesses should address, especially small businesses. Customer service
satisfaction needs focused guidelines and training with problem-solving skills and preparedness
for quick solutions to situations or complaints. Following will be a discussion of benefits that will
follow from the suggested improved procedures. The report will end with recommendations based
on the research gathered and conclusions drawn from research.
DISCUSSION: CURRENT CUSTOMER SERVICE
The current customer service training for Tan24 Sonnen Studio is limited to expectations that are
set based on oral translation of standards by the franchisee owner and the ‘Minimum Service
Standards’ (p. 48-49) set by the “Systems Manual” provided online by Tan24 America, Inc. The
current standards set by the manual are limited to four basic ethics, that are arguably the simplest
methods to follow. Although, with limited customer service methods, Tan24 Sonnen Studio cannot
expect to stand out and expand customer loyalty while succeeding in customer satisfaction. The
importance of expanding these standards are vital to the success of a small business in a very
competitive market.

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Minimum Service Standards
The four basic service standards outlined by Tan24 America Inc. in the “Systems Manual” promise
to offer the highest quality of service. These standards include: greeting customers as they walk in
the door, addressing customers by name, chatting with each client before they exit business, and
cleaning every room after use.
Inefficiencies of the Current Standards
The setbacks involved with the current standards provided by Tan24 America Inc. are, their vague
descriptions and limited standards. The ‘Minimum Service Standards’ are basic principles of
knowledge assuming you have the required skill set of working with customers. These standards
are directly related to expectancy of any workforce and are not helpful or specific in improving
the businesses customer service or satisfaction. They do not have any sort of direction for
identifying top of the line policies for a successful small business.
One of the most inefficient and current issues is an assumed procedure to handle a situation or
complaint is to contact management in attempt to answer a customer’s question. If management
cannot be contacted, the customers are directed to check back when management is available at
specified time. This is not a constructive method and has previously lead to high levels of
dissatisfaction, while deterring most customers whom are expecting educated employees with
professional solutions. Another issue with the current policies is being able to identify the
appropriate means to compensate dissatisfied customers. The current method being used is to
contact management again to handle the large portion of the issues no matter the level. It would
be more efficient to have set policies and reasonable compensations to pacify the customer quickly
and leave a positive lasting impression.
Lastly, the current policy for training new employee is limited to a total of five days that vary
throughout few weeks. This allows very limited exposure to proper customer service techniques
and makes it very challenging to educate new employees on specialized exclusive customer service
methods that improve customer satisfaction in business and guarantee an increase in future
customer loyalty.
DISCUSSION: CUSTOMER SERVICE SATISFACTION
Understanding what needs improvement with the customer service policies is just as important as
implementing them. In the article ‘The Adoption of Customer Service Improvement Practices’,
Peter Dickson quotes “Long-term survival, evolution, and growth of organization in competitive
markets depends on the superiority of an organizations improvement practices”. Dickson is
referring to improvement in customer service practices in small businesses. In his article, he
provides a diagram of effective tools used to improve customer service policies and explains how
to determine what needs improving.
Customer Feedback
Customer feedback is one very important tool provided to businesses of all kinds. This allows
businesses to keep in frequent contact with their customers and modify the corporation with
legitimate feedback. Criticism can answer all kinds of questions businesses have on whether to

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improve on certain things or not. Understanding your customer and their input on satisfaction can
be very beneficial when drawing out your budget for improvements on certain products and even
customer service.
All customer service procedures must be evaluated before the company can establish a formal
program and surveys are very helpful in this procedure. Some survey based information are: Levels
of service customer expects? Current customer service level? Types of service desired? Product
quality levels expected? Current product levels? Providing surveys with open-ended questions are
helpful to getting the most desired answers.
Another valuable way to find insights and feedback from customers is through social media, and
research proves to be a necessity. Customers who have called, written, or otherwise reached out to
a company privately now turn to social media to express complaints and concerns. Although 70%
of complaints tend to go unanswered, customers expect you to respond to them. Consumers believe
it is the business’s responsibility to address the concern. Social media now has the ability to
damage a brand with current and potential followers, so it is a business’s duty to connect with not
only their customers, but also the rest of their social connections as well.
Improving Customer Service
The article “Improving Customer Service” from an anonymous source published in the ‘Small
Business Report’ journal, tell us the insights of customer’s satisfaction standards. One of the first
topics the article addresses is the need for complaints to be addressed by the employee they had
immediate interaction with when first entering the store. Statics provided by surveyed answers
determined that the customer tends to be less irritable and dissatisfied when their question or
complaint can be handle right away by this employee.
Other studies showed dissatisfied customers will express their concern to five or fewer potential
customers, but a disgruntled customer will express it to twenty or more. With every one dissatisfied
customer, fifteen to twenty take their business elsewhere. Another suggested improvement is
taking immediate action requiring that no more than 7 days should elapse before the
problem/complaint is taken care. If there is no immediate solution available, the customer should
be made aware that an investigation is being taken place.
Also, keeping detailed documentation of situations and the solution to improve circumstances for
the future. Acknowledging complaints in writing shows the customer they are important to the
business and fixing the problem permanently is a top priority. Then following-up on the
documented complaint is important in the overall goals of making sure the problem hasn’t
returned.

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FIGURE 1
CONCEPTUAL MODEL RESULTS
Source: Interrelationships among service quality, customer satisfaction, and customer loyalty
Research conducted by Weng-Kun Liu, Yueh-Shian Lee, and Li-Mei Hung (2016) indicated
service quality is the result of certainty, confidence, reliability, acknowledgement, response,
empathy, and tangibility perceived by the customer.
The study started based on a hypothesis that service quality has a positive effect on customer
satisfaction and customer loyalty. The indices in the primary tables show the surveyed results
required for testing the hypothesis in each category. These values indicate the value is applied to
measure two endogenous variables.
They initiated by testing the model fit indices one at a time. The results of the value indicated that
the paths of the two endogenous variables were reliable. The final conclusion results supported
service quality is significantly and positively related to customer loyalty. Second the findings
supported the positive influence of service quality on customer satisfaction. Third customer
satisfaction had a positive influence on customer loyalty. These research results implicated that
managers should improve service quality to enhance customer satisfaction and customer loyalty.

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DISCUSSION: CUSTOMER LOYALTY
In “Service Quality, Relational Benefits, and Customer Loyalty in a Non-Western Context” by
Omneya Mokhtar Yacout, implementing the right policies for Tan24 Sonnen Studio’s customer
service would lead to the overall beginning of success. Overtime, the policies will develop
customer loyalty and create a positive environment for employees while applying the most
effective customer satisfaction techniques at work.
Benefits of Effective Policies
The benefits of updating the policies create more professional and trusting procedures for
customers when dealing with different problems and procedures. The environment for customers
would change in a direction of confidence and develop a sense of security with Tan24 Sonnen
Studio and its effective procedures. Although constructive policies are very important, relational
policies such as preferential treatment, communication, and adaption to customers’ needs are also
critical needs required for customer loyalty and retention.
The advanced policies would also benefit by reducing complaints, conflicts, and improve
positioning. These policies may be the beginning of the foundation of service quality for Tan24
Sonnen Studio. Research discovered that customer satisfaction, commitment, and trust all affected
customer loyalty both directly and indirectly. The definition of customer loyalty program is a
mechanism for identifying and rewarding loyal customers. The only current customer loyalty
mechanism Tan24 offers customers is a free month to customers who refer two new customers.
Obtaining Customer Loyalty
Many factors contribute to development of customer loyalty, including customization and benefits
to long-term customers. One very vital factor in developing customer loyalty is involved with
relationship marketing efforts. Relationship marketing efforts are based on two perspectives
according to Omneya Mokhtar Yacout in “Service Quality, Relational Benefits, and Customer
Loyalty in Non-Western Context”. These two approaches, he explains, are relationship quality and
relationship benefits. The perspectives start off with understanding the customer’s viewpoint and
then creating a mutually beneficial relationship.
The gap in the customer service field with relationships relates directly to the importance of service
quality. Service quality was found to have a very distinct effect on the market performance of a
business. Loyalty is the single most important indicator of long-term financial performance. Loyal
customers create value for a business through positive word of mouth, voluntary customer-
citizenship behaviors, coproduction assistance, social relationships, and mentoring other
customers. Factors of customer loyalty begin with customer satisfaction and end with perceived
performance. Many businesses are not able to exceed perceived performance, due to the lack of
advanced customer service methods.
The most important variables to obtain customer loyalty include commitment to the customer and
an emotional tie between the customer and service provider or employee. Emotional bonding
transcends into an economic exchange, implying that, customers buy from who they ‘like’. This
relationship between the consumer and service provider develops social benefits of personal
recognition by employees. Customer loyalty and satisfaction also develops from customization
and familiarity creating friendships. This leads to confidence and a feeling of trust in the service
provider while creating a barrier preventing customers from switching to other providers.

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Customization benefits refer to tailoring each relationship and product/service to each individual
customer.
Preserving Loyal Customers
Being consistent with customers and maintaining the ongoing relationship it vital to preserving
loyalty. Research by Muhammad Khan in “Customer Loyalty Programs” shows loyalty programs
have become some of the most influencing factors for increasing company profit. For instance,
tactics and programs like ‘frequent buyer’ schemes accumulate points and develop barriers to exit.
Creating programs and policies for frequent user benefits correlating with customer service and
relationship beneficial relationships can create a positive impact for Tan24 and increase profit.
Customers are often more loyal to a brand to improve their ability to win the ‘frequent user’
benefits. Customer loyalty is built on this trust developed between the consumer and provider and
when kept up properly this trust is valuable for small businesses.
Rewarding repeat customers is very imperative for a small business for the reason that it maintains
and encourages an increase in sales from loyal customers and their referrals. Also, the longer the
duration of the customer and company relationship the more significant and robust are the
propensities to recommend the company. Providing customers, a target in which they can earn
various benefits is motivating devotion. Although, many loyalty programs fail because they focus
on rewarding membership and not loyalty itself. Well-maintained loyalty programs are beneficial
in helping managers in getting detailed information about customer behavior and develop
personalized communication and offers.
Cost of Implementing Policies
Poor customer service can impact a small business very heavily. “Small Business Trends”,
published by Chatham Entrepreneurship, estimated that eighty-three billion dollars was lost by
U.S. enterprises each year due to customer service issues.
The cost of not satisfying the customer statistically is much greater than having updated policies
or procedures available to handle corrections more professionally and efficiently. Developing a
strong reputation for the future of a business can help balance out the financial costs of
implicating updated policies to keep customers satisfied.
 Recent data suggested that 89% of consumers who experienced mediocre to poor
customer service will switch to another brand.
 63.9% of consumers considered customer service to be more important than price
when deciding if they wanted to continue their business with a company.
 55% surveyed they would pay more to guarantee better customer service.
The overhead cost of implementing these new policies for Tan24 Sonnen Studio in Warrensburg
would be the additional training hours needed for employees to understand and adopt the new
policies for customer service to guarantee customer satisfaction and start building customer
loyalty.

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FIGURE 2
COST OF TRAINING TO IMPLEMENT UPDATED POLICIES FOR TAN24 SONNEN
STUDIO
Source: Tan24 Sonnen Studio Time Sheet Record
The additional training hours would cost $120 a week and consist of two weeks in a month for the
month of December 2016 and January 2017. This would in total cost of $480 dollars to implement
the new policies for Tan24 Sonnen Studio.
Em ployees: Additional Training
Manager: Total Cost:
Week ending:
Regular Hours Overtime Training Hours Total
Monday Dec . 12, 2016 11am -5pm 3pm -5pm 8.00
Tuesday Dec . 13, 2017 11am -5pm 3pm -5pm 8.00
Wednesday Dec . 14, 2018 11am -5pm n/a 6.00
Thursday Dec . 15, 2019 11am -5pm 3pm -5pm 8.00
Friday Dec . 16, 2020 11am -5pm 3pm -5pm 8.00
Saturday Dec . 17, 2021 10am -2pm 10am -2pm 8.00
Sunday Dec . 18, 2022 n/a n/a n/a
Total hours
34.00 12.00 46.00
Rate per hour
$10.00 $10.00 $10.00
Total pay
$340.00 $120.00 $460.00
G.W.,Brittany
Brittany
B. White, G. White
Tan24 Sonnen Studio
Brittany Barnhart
Weekly time record
12 hours
120$
Total additional c ost for Training Polic ies would be $120 a week
B.W.,Brittany
Dec em ber 17.2016
Day Employees
B.W.,Brittany
G.W.,Brittany
n/a
B.W.,Brittany

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FIGURE 3
AVERAGE TRAINING COST EXPENDITURE PER HOURLY
Source: Created in excel
Average Training Cost
Category Budget Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Trends
Employee Hours 2,000$ 1,200$ 1,600$ 1,840$ 2,000$ 1,600$ 1,200$
Training Hours 500$ 240$ 240$ -$ -$ -$ -$
Total 2,500$ 1,440$ 1,840$ 1,840$ 2,000$ 1,600$ 1,200$
Under/(Over) 660$ 660$ 500$ 900$ 1,300$ 1,060$
Progress
Category Target Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Actual Totals
Customer Loyalty 8,000$ 3,699$ 5,598$ 6,998$ 9,047$ 6,518$ 6,248$ 38,105.60$
Total 8,000$ 3,699$ 5,598$ 6,998$ 9,047$ 6,518$ 6,248$ 38,105.60$

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SUMMARY OF CONCLUSIONS
Tan24 Sonnen Studios Current Customer Service Program
Analysis of the research presented in this report and observation of customer service satisfaction
operations has led to the following conclusions about Tan24 Sonnen Studio:
1. The current policies are inefficient due to the few methods available by Tan24 America
Inc., and the descriptions do not assist in helpful information or training employee’s to be
successful in customer service satisfaction.
2. Due to the lack of current implemented policies, the structure of customer service is
unorganized and blatantly unprofessional in 80% of customer dissatisfaction situations.
3. Customer loyalty programs are almost non-existent, cutting off a source to develop
customer service satisfaction for long-term customers.
4. Due to the lack of polices, reasonable compensation for customer dissatisfaction is
undetermined creating conflicts in hasty situations.
In Support for Updated Policies
Furthermore, this research supports the overall advantage of updating the policies for the
improvement of customer service. The following conclusions can be drawn:
1. Updating the current policies related to customer service satisfaction will improve business
with customers and establish a positive environment for employees to handle situations.
2. Once employees are equipped with proper training on the policies, an overall boost in
customer satisfaction will lead to providing the best customer service.
3. Creating customer loyalty programs for long-term customers will develop a incentive to
make more frequent purchases.
4. Relational development between service providers and customers will create the strongest
barrier to exit for consumers.

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RECOMMEDATIONS
Supported by the findings and conclusions of this report, the following recommendations are
offered to improve customer satisfaction and guarantee future customer loyalty for Tan24 Sonnen
Studio:
Implement Customer Satisfaction Surveys
Proceeding with surveys is the most efficient way to find out what customers are thinking.
Surveying the consumers with an incentive will determine after results are collected the current
customer service satisfaction level. It is important to understand how well your business is
providing customer service to current consumers, so you can improve to keep them and gain new
customers.
Implement Effective Policies. Determine Current Skills
Understanding the current state your business with customer surveys will determine which policies
to implement. All the research provided helps establish foundations for constructing specific
policies. Determining the current skills each employee possesses will assist in defining what they
need more training on. The updated methods to improve customer service satisfaction:
1. Appropriate compensations for certain levels of customer dissatisfaction.
2. Extend employee training in the future to include specialized training on customer service
satisfaction.
3. Acknowledging customer complaints quickly and documenting situations to eliminate
problem.
4. Customer loyalty programs to reward long-term customers.
5. Build relationships with customers to understand their viewpoint and preference.
6. Offer personalized customer service to each customer in an attempt to build a customized
relationship creating a barrier to exit.
Training
Training is the only cost of updating and implementing the policies with the current service
providers of Tan24. Training on customer service would allow employees to practice building
relationships with customers and improve on solving complaints more effectively.
Annual Meetings
Annual meetings will be necessary to follow-up on the success of the new policies with employees
to discuss topics like; how complaints were handled. How closely the company’s service systems
fulfill its objectives. If any aspects of the program should be changed. Which elements were
successful. Frequency of errors.
Assess Customer Loyalty Retention and Benefits of Policies
After a six-month period of the new customer service policies being executed, the business Tan24
Sonnen Studio should assess customer satisfaction level with another survey. Then assess financial
statistics involved with membership renewal and customer retention.

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APPENDIX
Interview Questions
Brandy White
Employee
Tan24 Sonnen Studio
1. What do you think we can improve on regarding customer service at this store?
2. If a customer is dissatisfied, what can we do to change that?
3. Do you believe you were trained on problem-solving techniques for Tan24?
4. Do you believe you were trained on specialized customer service techniques
specifically for Tan24?
5. How do you compensate customers for a mistake made on the job here at Tan24?
6. Do you think a series of specialized customer service training exercises with
employees would improve customer satisfaction for Tan24?
7. How do you think other employees deal with dissatisfied customers?
8. Do you believe that if procedures were implemented to follow, your job would be
easier?
9. Do you believe there has been a decline in customers this year? Customer
satisfaction?
10. Are you able to say you had proper training for this job?

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CustomerSatisfactionSurvey
Tan24 Sonnen Studio
202 N. Holden St. Warrensburg,MO. 64093 (660) 362-1500
Tan24 Sonnen Studio requests your help. Pleasecomplete the followingCustomer Satisfaction Survey based on the
project we recently completed for your organization.Thank you for your time.
Customer Name: How did you hear about us? Why did you decide to use us?
[Customer Name] [Answer] [Answer]
Employee reference Date:
[Project Manager] [Date]
1. Customer Service
 Less than expected  As expected  More than expected  Consistently more
2. Staff Knowledge
 Less than expected  As expected  More than expected  Consistently more
3. Communication
 Less than expected  As expected  More than expected  Consistently more
4. Feedback
 Less than expected  As expected  More than expected  Consistently more
5. Overall Performance of employee
 Less than desirable  As expected  Better than expected  Consistently better

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6. Online Resources
 Less than expected  As expected  More than expected  Consistently more
7. After Sales Service
 Less than expected  As expected  More than expected  Consistently more
8. Price
 Less than expected  As expected  More than expected  Consistently more
9. Cleanliness
 Less than expected  As expected  More than expected  Consistently more
10. Overall Service
 Less than desirable  As expected  Better than expected  Consistently better
11. Comments / Testimonial:
[Addyourcommentshere.]
 Would you recommend Tan24 Sonnen Studio?
 Wouldyouuse Tan24 SonnenStudioagain?
Thank youverymuch fortakingthe time to complete thissurvey.Yourfeedbackisvaluedandverymuch
appreciated!

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