Customer satisfaction - Seniors.pptx

Customer satisfaction
Aashi Saxena (2018KUEC2038)
Pabba Srija (2018KUEC2049)
Neha Kularia (2018KUEC2059)
Introduction
● A success of an organization depends on
○ How many customers it has
○ How much they buy
○ How often they buy
● An organization must give its customer a
quality product or service that meet their
needs at a reasonable price, which includes
on-time delivery and outstanding service.
● Total satisfaction is achieved when the offer
meets need.
Company
offer
Customer
needs
● Part of the square that lies within circle is
perceived by customer to be satisfying.
● Part of the square outside the circle is
unnecessary.
Teboul model
Customer satisfaction - Seniors.pptx
Feedback
● Feedback is ongoing and active probing
of the customer mind.
● It enables the organization to:
▪ discover customer dissatisfaction.
▪ discover relative priorities of quality.
▪ compare performance with the
competition.
▪ identify customer needs.
▪ determine opportunities for
improvement.
How to do feedback?
● Listening to customer voice can be accomplished by numerous
information collecting tools like:
1. comment cards
2. Surveys
3. focus groups
4. toll-free telephone lines
5. customer visit
6. internet.
Translating needs into requirements
Kano’s model
● The Kano Model is an approach to prioritizing
features on a product roadmap based on the
degree to which they are likely to satisfy
customers.
● Product managers often use the Kano Model
to prioritize potential new features by
grouping them into categories.
Customer satisfaction - Seniors.pptx
Customer retention
● Represent those activities that produce customer
satisfaction and creates customer loyalty which
improves bottom line.
● Customer satisfaction should also be measured by
market share, cash register receipts, no. of referrals
from other customer etc.
● Can be done by having employee retention, which has
an impact on customers.
● Maximize customer retention and satisfaction, financial
reward will follow automatically
Customer satisfaction - Seniors.pptx
Internal customer supply chain
● As an organisation seeks to satisfy the external
customer, same concept applies to internal
departments.
● Each individual becomes customer and supplier
along the business process flow.
TQM
11
Material Process Process Sales
External
Custome
r
External
supplier
Internal customer
& supplier
Internal customer
& supplier
External Suppliers
● Small and medium business also needs to
develop a strategy treating themselves as a
customer to their own external suppliers.
● A policing attitude towards suppliers where
visits and inspection are undertaken with little
or no prior warning may reveal their mistakes
and poor quality.
● Some formal measures must be established
between the customer and supplier,
otherwise the relationship may become
uncomfortable.
TQM
13
● These could include:
❖ Accurate measurable customer requirements
❖ Periodic customer supplier quality reviews
❖ Examination of supplier quality policy
❖ Creation of customer supplier improvement teams
TQM
14
A long-term relationship between supplier and buyer allows for the
free-flow of feedback and ideas. Over time, this will create a more
streamlined, effective supply chain that could have a positive impact
on both costs and customer service.
Kano’s Model
● A theory for product development and customer
satisfaction.
● Developed in the 1980s by Professor Noriaki Kano.
● Classifies customer preferences into five categories.
● Needs and wants of organization can and should be
segmented into a hierarchy.
● It provides a logical pathway to meeting and exceeding
customer needs on the important elements of
relationship between an organization and customer.
TQM
15
TQM
16
Kano’s model of customer
satisfaction as a function
of need fulfillment
Degree of fulfillment
Customer
Satisfaction Normal
Latent
Expected
1.Must-be Quality: These are the requirements that the
customers expect and are taken for granted. Examples: In a hotel,
providing a clean room is a basic necessity.
1.One-dimensional Quality: These are attributes that are
spoken and the ones in which companies compete. Examples:
Waiting service at a hotel.
1.Attractive Quality: These are attributes that are not
normally expected. Examples: In a hotel, providing free food is an
attractive feature.
Categories
4. Indifferent Quality: These attributes refer to
aspects that are neither good nor bad, and they do
not result in either customer satisfaction or customer
dissatisfaction.
Examples: In a call center, highly
polite speaking and very prompt responses might
not be necessary to satisfy customers and might not
be appreciated by them.
5. Reverse Quality: These attributes refer to a high
degree of achievement resulting in dissatisfaction
and to the fact that not all customers are alike.
Examples: In a call center, using a lot of jargon, using
excessive pleasantries, or using excessive scripts
while talking to customers might be off-putting for
them.
Customer satisfaction - Seniors.pptx
TQM
20
As customer expectations change with the
level of performance from competing
products. Attributes can move from delighter
to performance need and then to basic
need.
For example, In 2009, mobile phone charge
would last 12 hours. As each new mobile
phone generation improved battery life, the
attribute of 12-hour battery life has shifted
from delighter to less than a basic need.
Real Scenario
Customer satisfaction - Seniors.pptx
Methodology
1.Determine Main Features
2. Devise Questionnaire:
Kano proposes a standardized questionnaire to measure
participants' opinions in an implicit way by ansering in functional as
well as dysfunctioanal way
3. Sum Responses: Average Response is Calculated.
4. Identify Classification:
Illogical answers (e.g., "I like it" for both the functional and dysfunctional
questions) are usually neglected or put in a special category "Questionable".
5. Kano Graph Plot: For visual Guide.
TQM
BITS PILANI
25
Figure 1: Banking Example
Application
TQM
26
The Kano model offers some insight into the product attributes which
are percieved to be important to customers.
Kano's model provides the insights into the dynamics of customer
preferences to understand these methodology dynamics.
The purpose of the tool is to support product specification and
discussion through better development of team understanding.
Kano's model focuses on differentiating product features, as opposed
to focusing initially on customer needs.
Kano also produced a methodology for mapping consumer responses
to questionnaires onto his model.
Implications
● We must be nearly flawless on meeting
customers' must-be needs and we should
focus our time, effort and quality teams on
these needs.
● We should acknowledge the one-
dimensional needs of our customers but
quickly move the discussion to the next level
to focus on delighters.
● We must focus concentrated effort on the
delighters -- those differentiators that provide
extraordinary benefit to the customer without
increasing a supplier's cost.
TQM
27
Customer Protection
The following points justify the need for customer protection:
❖ Customer do not have adequate product knowledge.
❖ They are ignorant of their right.
❖ They are in a weak bargaining position.
❖ Manufactures and suppliers have the expertise which they don’t have
❖ Often products are forced on customers through publicity, eye
catching packaging and advertisements.
❖ Fake and spurious products are flooding the markets and deceiving
the customers.
❖ Let the buyer be aware is not realistic in complex and mass produced
goods or services.
TQM
28
Quality awards
&
customer satisfaction
● Thee are quality awards aiming for customer satisfaction:
○ Malcolm Baldrige National Quality Award
○ ISO 9000: though it does not fully address but the inherent
assumption is that customer requirements are known and fulfilled
○ The European quality award
○ The Deming prize for quality
○ The Golden Peacock National Quality Award
TQM
29
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Customer satisfaction - Seniors.pptx

  • 1. Customer satisfaction Aashi Saxena (2018KUEC2038) Pabba Srija (2018KUEC2049) Neha Kularia (2018KUEC2059)
  • 2. Introduction ● A success of an organization depends on ○ How many customers it has ○ How much they buy ○ How often they buy ● An organization must give its customer a quality product or service that meet their needs at a reasonable price, which includes on-time delivery and outstanding service. ● Total satisfaction is achieved when the offer meets need.
  • 3. Company offer Customer needs ● Part of the square that lies within circle is perceived by customer to be satisfying. ● Part of the square outside the circle is unnecessary. Teboul model
  • 5. Feedback ● Feedback is ongoing and active probing of the customer mind. ● It enables the organization to: ▪ discover customer dissatisfaction. ▪ discover relative priorities of quality. ▪ compare performance with the competition. ▪ identify customer needs. ▪ determine opportunities for improvement.
  • 6. How to do feedback? ● Listening to customer voice can be accomplished by numerous information collecting tools like: 1. comment cards 2. Surveys 3. focus groups 4. toll-free telephone lines 5. customer visit 6. internet.
  • 7. Translating needs into requirements Kano’s model ● The Kano Model is an approach to prioritizing features on a product roadmap based on the degree to which they are likely to satisfy customers. ● Product managers often use the Kano Model to prioritize potential new features by grouping them into categories.
  • 9. Customer retention ● Represent those activities that produce customer satisfaction and creates customer loyalty which improves bottom line. ● Customer satisfaction should also be measured by market share, cash register receipts, no. of referrals from other customer etc. ● Can be done by having employee retention, which has an impact on customers. ● Maximize customer retention and satisfaction, financial reward will follow automatically
  • 11. Internal customer supply chain ● As an organisation seeks to satisfy the external customer, same concept applies to internal departments. ● Each individual becomes customer and supplier along the business process flow. TQM 11
  • 12. Material Process Process Sales External Custome r External supplier Internal customer & supplier Internal customer & supplier
  • 13. External Suppliers ● Small and medium business also needs to develop a strategy treating themselves as a customer to their own external suppliers. ● A policing attitude towards suppliers where visits and inspection are undertaken with little or no prior warning may reveal their mistakes and poor quality. ● Some formal measures must be established between the customer and supplier, otherwise the relationship may become uncomfortable. TQM 13
  • 14. ● These could include: ❖ Accurate measurable customer requirements ❖ Periodic customer supplier quality reviews ❖ Examination of supplier quality policy ❖ Creation of customer supplier improvement teams TQM 14 A long-term relationship between supplier and buyer allows for the free-flow of feedback and ideas. Over time, this will create a more streamlined, effective supply chain that could have a positive impact on both costs and customer service.
  • 15. Kano’s Model ● A theory for product development and customer satisfaction. ● Developed in the 1980s by Professor Noriaki Kano. ● Classifies customer preferences into five categories. ● Needs and wants of organization can and should be segmented into a hierarchy. ● It provides a logical pathway to meeting and exceeding customer needs on the important elements of relationship between an organization and customer. TQM 15
  • 16. TQM 16 Kano’s model of customer satisfaction as a function of need fulfillment Degree of fulfillment Customer Satisfaction Normal Latent Expected
  • 17. 1.Must-be Quality: These are the requirements that the customers expect and are taken for granted. Examples: In a hotel, providing a clean room is a basic necessity. 1.One-dimensional Quality: These are attributes that are spoken and the ones in which companies compete. Examples: Waiting service at a hotel. 1.Attractive Quality: These are attributes that are not normally expected. Examples: In a hotel, providing free food is an attractive feature. Categories
  • 18. 4. Indifferent Quality: These attributes refer to aspects that are neither good nor bad, and they do not result in either customer satisfaction or customer dissatisfaction. Examples: In a call center, highly polite speaking and very prompt responses might not be necessary to satisfy customers and might not be appreciated by them. 5. Reverse Quality: These attributes refer to a high degree of achievement resulting in dissatisfaction and to the fact that not all customers are alike. Examples: In a call center, using a lot of jargon, using excessive pleasantries, or using excessive scripts while talking to customers might be off-putting for them.
  • 21. As customer expectations change with the level of performance from competing products. Attributes can move from delighter to performance need and then to basic need. For example, In 2009, mobile phone charge would last 12 hours. As each new mobile phone generation improved battery life, the attribute of 12-hour battery life has shifted from delighter to less than a basic need. Real Scenario
  • 23. Methodology 1.Determine Main Features 2. Devise Questionnaire: Kano proposes a standardized questionnaire to measure participants' opinions in an implicit way by ansering in functional as well as dysfunctioanal way
  • 24. 3. Sum Responses: Average Response is Calculated. 4. Identify Classification: Illogical answers (e.g., "I like it" for both the functional and dysfunctional questions) are usually neglected or put in a special category "Questionable". 5. Kano Graph Plot: For visual Guide.
  • 25. TQM BITS PILANI 25 Figure 1: Banking Example
  • 26. Application TQM 26 The Kano model offers some insight into the product attributes which are percieved to be important to customers. Kano's model provides the insights into the dynamics of customer preferences to understand these methodology dynamics. The purpose of the tool is to support product specification and discussion through better development of team understanding. Kano's model focuses on differentiating product features, as opposed to focusing initially on customer needs. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model.
  • 27. Implications ● We must be nearly flawless on meeting customers' must-be needs and we should focus our time, effort and quality teams on these needs. ● We should acknowledge the one- dimensional needs of our customers but quickly move the discussion to the next level to focus on delighters. ● We must focus concentrated effort on the delighters -- those differentiators that provide extraordinary benefit to the customer without increasing a supplier's cost. TQM 27
  • 28. Customer Protection The following points justify the need for customer protection: ❖ Customer do not have adequate product knowledge. ❖ They are ignorant of their right. ❖ They are in a weak bargaining position. ❖ Manufactures and suppliers have the expertise which they don’t have ❖ Often products are forced on customers through publicity, eye catching packaging and advertisements. ❖ Fake and spurious products are flooding the markets and deceiving the customers. ❖ Let the buyer be aware is not realistic in complex and mass produced goods or services. TQM 28
  • 29. Quality awards & customer satisfaction ● Thee are quality awards aiming for customer satisfaction: ○ Malcolm Baldrige National Quality Award ○ ISO 9000: though it does not fully address but the inherent assumption is that customer requirements are known and fulfilled ○ The European quality award ○ The Deming prize for quality ○ The Golden Peacock National Quality Award TQM 29