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MeasuringCustomer Satisfaction (A Brief Presentation) HENRY JOHN N. NUEVA Management Engineering
Customer SatisfactionA measure of how products and/or services supplied by acompany meet or surpass customer expectation.It is also a key performance indicator (measure) withinbusiness and is often part of the Balanced Scorecard.
Customer Satisfaction?• Delighted customers or clients are profitable on everycompany business.• It can be use as a basis of monitoring, evaluating anddeveloping new products and process that contribute tocompany’s performance management.• Provides an indication of how successful the organization is atproviding products and/or services to the marketplace.
Customer Satisfaction?The collection, analysis anddissemination of CS data send amessage about the importance oftending to customers and ensuring Satisfaction is perhaps the best indicatorthat they have a positive of how likely it is that the organizations’experience with the company’s customers will make further purchases in the future. Since currentgoods and services. research has now focusing on the relationship between customer satisfaction and retention.
Direct Methods: Directly contacting customers and getting their valuablefeedback is very important. Following are some of the ways by whichcustomers could be directly tabbed:1. Getting customer feedback through third party agencies.2.Direct marketing, in-house call centers, complaint handling departmentcould be treated as first point of contact for getting customer feedback.(these feedbacks are compiled to analyze customers’ perception)3. Getting customer feedback through face to face conversation or meeting.4. Feedback through appreciation letter.5. Direct customer feedback through surveys and questionnaires.
Indirect Methods: The following are indirect methods of getting feedbackregarding customer satisfaction:A. Customer Complaints: Customer’s complaints are the issues andproblems reported by the customer to supplier with regards to any specificproduct or related service. These complaints can be classified underdifferent segments according to the severity and department. If thecomplaints under a particular segment go high in a specific period of time then theperformance of the organization is degrading in that specific area or segment. But ifthe complaints diminish in a specific period of time then that means the organizationis performing well and customer satisfaction level is also higher.B. Customer Loyalty: A customer is said to be loyal if he revisits supplier onregular basis for purchases. These loyal customers are the satisfied ones and hencethey are bounded with a relationship with the supplier. Hence by obtaining thecustomer loyalty index, suppliers can indirectly measure customer satisfaction.
1. cognitive (thinking/evaluation) How satisfied are you with the "taste" of Yoni fresh yogurt?How important is "taste" to you in selecting Yoni fresh yogurt?
2. affective (emotional-feeling/like-dislike)Would you recommend "Yoni" to your family and friends? Overall, how satisfied are you with "Yoni fresh yogurt"?
3. behavioral (current/future actions)Would you recommend "Yoni" to your family and friends?
Customer SatisfactionSurvey Customers This is probably the only way to get customer feedback unless theyuse a direct contact to your organization, which most people are too busyto bother with unless they are extremely upset for some reason. We can provide surveys in several ways (through mail, email, overthe phone or websites) and in order to get the best information, we shouldallow customers to answer questions on a weighted scale like:(“Rate your experience on a scale of 1 to 5 with 1 indicating completedissatisfaction and 5 indicating complete satisfaction”).
Customer SatisfactionUnderstand Expectations If we know what our customers expect from us, it logically followsthat we will be better able to offer them an enjoyable experience. Therefore, make an effort to discover the expectations of yourcustomers in terms of both service and products in order to ensure thatyou’re meeting their needs.
Customer SatisfactionFind Out Where You’re Failing If you’re not meeting customer requirements, you need to find outwhere the failure is occurring. Examples of general questions that wouldbehave the company to know where the lines of communication arebreaking down so that relationship with customers can be mended are asfollows:1.Are the products less than what is advertised?2.Are employees making promises that cannot be met?3.Are customer service representatives dropping the call on customerconcerns and managing their complaints?
Customer SatisfactionPinpoint Specifics Whether a customer is satisfied or not, the data we collect willneed to accurately assess what is working and what isn’t. So inquiries intolevel of satisfaction should include more than just the overall experience. We need to determine the products and/or services theypurchased, what they liked or disliked about their sales interaction, howthe actual purchase compared to their expectations, and any suggestionsthey have for improvement.
Customer SatisfactionAssess the Competition If we don’t know why customers prefer another brand overours, we cannot hope to keep them from flocking to the competition. So as part of the survey process, we may want to consider invitingcustomers to compare and contrast similar products or companies to findout what they are offering that you are not.
Expectancy Value Measures of Behavioral Intention (BI), Attitude (A) and Satisfaction (SAT)Expectancy value models have been found to perform well in predicting bothsatisfaction/dissatisfaction and behavioral intention (intention totry, purchase, recommend, or re-purchase a product or service).The Expectancy value model using attitudes and beliefs reads:
where:•w1, w2 = weights that indicate the relative influence of the overall attitude toward theobject and the normative influence to purchase the product•Ao = Attitude toward the object (brand, product, service or company)• = the overall attitude toward the object. The overall attitude is formed by themultiplicative product of ai (the persons affective evaluation of attribute i),and bi (here defined as the importance of attribute i in the purchase decision). Thesum is taken over the k attributes that are defined as salient in the purchasedecision.• = The overall normative component of the decision process. This iscomputed as the multiplicative product of nbi (the norms governing attitude i),andmci (the motivation of the respondent to comply with those norms).
Behavioral Intention (BI)Behavioral intention is measured using a question such as "Indicate thelikelihood of you buying sometime during the next year" with a five or seven-point Likert or semantic differential scale labeled "definitely will purchase"and "definitely will not purchase" at the endpoints.SatisfactionOverall satisfaction or dissatisfaction with an object is often measured using afive-point satisfaction scale. As an example, "Overall, how satisfied are youwith Sparkle toothpaste?" could be measured with a "VerySatisfied, Somewhat Satisfied, Neither Satisfied Nor Dissatisfied, SomewhatDissatisfied, Very Dissatisfied" scale.
Attitude (ai*bi)bi - the probability that attribute i is associated with performing behavior B. Theconcept "Crest toothpaste prevents decay" could be rated on a seven point scalewith endpoints labeled "Very Likely" and "Very Unlikely".ai - the evaluation of belief i. A representative measure of ai would be "In terms ofbuying Crest toothpaste, decay prevention is …" with a five or seven point scalewith "good" and "bad"; or "Excellent" and "Poor" at the endpoints