Download - Lec 08-TQM-BBA
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Measuring Customer
Satisfaction
Organization Customer CS
Measures
Develop
Quality Dimensions
Generate
Critical Incidents
Two Methods.
1. Quality Dimension Development
2. Generate Critical Incidents
Method 1: Quality Dimension
Development
Step 1: Creating list of quality dimensions
a. Read professional literature & enlist quality dimensions
b. Generate list from personal experience
Step 2: Write definitions of each dimensions
a. Definition can be in general terms
Step 3: Develop specific examples for each quality dimension
a. Examples - specific-reflecting service or product b. Examples - specific behaviors of providers c. declarative statements
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Step 1: Create List of Quality Dimensions
Product Quality Dimensions
1. Basic Functions
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived Quality
Service Quality Dimensions
1. Truthfulness
2. Respectfulness
3. Responsiveness
4. Reliability
5. Competence
6. Communication
7. Courtesy
8. Access
9. Credibility
10.Confidentiality/security
11.Empathy
12.Tangibles
5 key Dimensions of Service
Quality
Reliability: Ability to provide what was promised, dependably & accurately. e.g Customer service reps responding in promised time
Following customer instructions
Providing error free invoices & statements
Making repairs correctly first time.
Assurance: Knowledge & courtesy of employees & their ability to convey trust & confidence e.g
Ability to answer questions
Having capabilities to do necessary work
monitoring credit card transactions to avoid possible fraud
Being polite & pleasant during customer transactions
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Key Dimensions (contd.)
Tangibles: Physical facilities & equipment & appearance of personnel. Tangibles include
Attractive facilities
Appropriately dressed employees
Well designed forms easy to read & interpret
Empathy: degree of caring & individual attention provided to customers
Willingness to schedule deliveries at customers convenience
Explaining technical jargon in laypersons language
Recognizing regular customers by name
Responsiveness: willingness to help customers & provide prompt service
e.g
Acting quickly to resolve problems
Promptly crediting returned merchandise
Rapidly replacing defective products.
Quality Dimension of a Manufactured
Product & Service
Quality Dimension
Manufactured Product (stereo Amplifier)
Service Product (Checking Account)
Performance Signal-to-noise ratio; power
Time to process customer requests
Features Remote Control Automatic Bill Paying
Conformance Workmanship Accuracy
Reliability Mean time to failure Variability of time to process requests
Durability Useful Life Keeping pace with industry trends
Serviceability Ease of Repair Resolution of errors
Aesthetics Oak Cabinet Appearance of bank lobby
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Method 2: Generating Critical
Incidences
Generate Critical incidents
Categorize critical incidents into clusters
Categorize satisfaction items into clusters, each cluster representing a customer requirement
Determine quality of categorization process
Determine comprehensiveness of customer requirements
Customer
Requirement
Satisfaction
Item #1
Critical
Incident
Critical
Incident
Critical
Incident
Satisfaction
Item #2
Critical
Incident
Critical
Incident
Critical
Incident
Satisfaction
Item #3
Critical
Incident
Critical
Incident
Critical
Incident
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Reliability and Validity of Measures
Reliability
The extent to which measurements are free from random error variation (random errors reduces the reliability of measurements)
Validity
The degree to which the scale measures what it is designed to measure.
Gathering Customer Information
Customer requirements are called voice of customers
"Voice of Customers:
Variety of methods/ "listening posts" to collect info about
customer needs & expectation, importance & satisfaction
with company's performance.
Customer meaning is crucial part of the message.
The consumer speaks in code.
Whirlpool found out what most customers actually wanted was refrigerators that looked clean with minimum fuss.
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Key Approaches to Customer Info
Comment Cards Include questions pertaining to customers'
perception of importance of particular quality dimensions as well as open-ended questions.
Generally few customers will respond to comment
cards placed at restaurant tables/ hotel rooms & those who may not represent typical customer.
Formal Surveys
Asks customers what they want from supplier & cover areas of service, quality & technology.
Designed to scientifically sample customer base, but usually
only small proportion of customers respond. USAA, a San Antonio financial services company mails 500,000 surveys to customers from base of 2.5 million to inquire about satisfaction, future needs & ideas for new products & gets 60% return.
Key Approaches to Customer Info
Focus Groups
A Panel of individuals(customer/non customers)
who answer questions about company's products& services as well as those of competitors
This interview approach allows company to carefully select composition of panel& probe panel members about imp. Issues e.g Comparing experiences with expectations, in depth.
Key questions of interviews include
What do you like about product/service?
What pleases/ delights you?
What do you dislike?
What problems have you encountered?
If you had ability, how would you change product/ service?
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Key Approaches to Customer Info
Direct Customer Contact
Happens mostly in customer-driven companies, top executives commonly visit customers personally.
Hearing issues & complaints firsthand is often an eye-opening experience
XEROX top managers spend 1 day each month answering customer services phones to interface with customers directly
Field Intelligence
Employees in direct contact with customers obtain useful info simply by engaging in conversation& listening to customers.
Sales people, repair technicians, telephone operators & receptionists can obtain useful info through direct contact.
AT&T receives over 1,000 customer comments/month
HONDA frequently videotapes drivers as they test new cars.
Key Approaches to Customer Info (contd.)
Monitor the Internet
Using internet to find out what customers think of products.
Internet users frequently seek advice from users on strengths & weaknesses of products, share experiences on service quality & pose specific problems they need to resolve.
In open forums, customer Comments can be translated into creative product improvements plus internet provides detailed info about competitors.
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Writing Questionnaire for
measuring CS
Determine
Questions
Determine
Completeness
Write
Introduction
Select the
Response
Format I
II
III
IV
1. Determine Questions
be concise, precise
be direct
discard superfluous words
be unambiguous
Examples ? How are these questions
the SDO was good
The bank manager listened to me and took a short time to handle my complaint
The SDO was not available when he was needed
The SDO was available when he was needed
The staff was courteous
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2. Response Format
a. Checklist Format (yes/no)
b. Likert-type (1-5 scale)
Introduction to Questionnaires
For example:
To better serve you, we would like to know your opinion of the quality of our service at XYZ Company. You recently received service from our company. Please indicate the extent to which you agree or disagree with the following statements about the service your received from the staff. Circle the appropriate number using the scale below.
1 2 3 4 5
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Finally, Select appropriate questions:
Ensure critical customer requirements are
addressed properly.
Sampling 1. Census
to gather information from ALL of customers (sample is the total population) e.g. doctors response by drug manufacturers
2. Judgmental Sampling
use judgement in the selection of customers
3.Statistical Sampling
select sample based on statistical probability (rely on chance). It becomes easy to generalize, if not biased.
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Customer Relationship Management
Identify customers.
Differentiate between
customers.
Identify their needs.
Control interaction with them.
Listen to customer.
Monitor and maintain good
interaction.
C C W
Customer contact workers are those
workers with whom customer has
direct contact.
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Four Steps to
Quality Customer Service Step 1 : Send Positive Attitude
a. Product Knowledge / command
b. Appearance (dress quality, cleanliness, orderliness, etc.) c. Body Language (head, arms facial, smile, body movement, eye contact) d. Sound of Your Voice (tone and how you say it) - face to face - on telephone (telephone skills) e. Staying energized f . Empathize (concern for customers benefits)
Step 2 : Identify needs of your Customers, Guests, Clients. a. Human Needs: (welcomed, respected, comfortable, orderly, understood, helped, important, appreciated, recognized) b. Timing Needs: (hold time on telephone, waiting in office, letter response, return calls, appropriate time to meet, width and depth of product/service needs) c. Location Needs:
d. Product Needs: (stated, unstated, basic, delighter) e. Create an environment to listen f. Careful Listening and Understanding g. Feedback / Evaluation
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Step 3 : Provide for the Needs of Your customers, guests, clients
Are you ready to fulfil the Human, Timing, Location, and Product Needs of the customer?
Are you capable to fulfil the Human, Timing, Location, and Product Needs of the customer ?
Do you have the required product / service to meet the needs of the customer ?
Have you actually fulfilled the Human, Timing, Location, and Product Needs of the Customer ?
Step 4 : Make Sure your Customers, Clients, Guests return to you
Why companies lose customers ?
1 % of lost customers die
3 % move away
4 % just naturally float
5 % change on a friends recommendations
9 % can buy it cheaper somewhere else
10% are chronic complainers
68% go elsewhere because the people they deal with are indifferent to their needs
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Make sure you delivered both the procedures and the personal
Be sensitive to check your performance by the outcomes before, during and after the service delivery
Handling complaint : for cases of gaps, customers will complain (within themselves, gestures, light words, strong words, strong reactions).
listen to their stated and non-stated complains carefully
empathize
repeat and confirm whether you understood clearly
apologize genuinely
acknowledge sympathy
correct the situation
identify root-causes and prevent recurrence
Types of difficult customers with whom you have to deal nicely
angry
nasty or obnoxious
demanding
constant critic
non-stop talker
indecisive
intoxicated
argumentative
They are usually difficult for their own reasons - not because of you