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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