fa10 040 lecture 16 customers voice

8/8/2019 FA10 040 Lecture 16 Customers Voice

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Management &

Information TechnologyBSAD 040, Fall 2010

William L. Cats-Baril, PhD

Lecture 16: Listening to the Customers Voice

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Agenda1. Definition of Customer Satisfaction

2. Impacts of Customer Dissatisfaction

3. Difficulties in Achieving CustomerSatisfaction

4. Causes of Customer Dissatisfaction

5. Measurement of Customer Satisfaction

6. Voice of the Customer Grid


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A companys only true assets are satisfiedcustomers.

Jan Carlzon, former President, SAS

The three most important things you need to

measure in a business are customer satisfaction,employee satisfaction and cash flow.

Jack Welsh, CEO, GE

We will strive to have a completely satisfiedcustomer at the end of each transaction.

Federal Express Mission


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Financial Success Profitability Revenue Growth

Customer Loyalty

Customer Satisfaction

Added-Value

Providing Quality

Employee Satisfaction

Employee ProductivityEmployee Retention

Employee

Commitment

Climate, Philosophy, Leadership, and SupportOrganizationalcommitment


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www.sdr-consulting.com


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www.pkfuae.com


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What is customer satisfaction?

The extent to which customers

believe a product or service meetsor surpasses their expectations.


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Forces

of

Change

Competition

Customer

Expectation


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Above expectations: Delight

Below expectations: defection


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Impact of Customer Dissatisfaction

Dissatisfied Customers

Loss of loyalcustomer

Share bad

experience with

potential

customer

Money Lost

Compounds overTime


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The average business never hears from 96% of itsunhappy customers

The average customer that has a problem tells nineor ten people about it. 13% of the people with aproblem to 20 or more people about it.

Customers who have complained and had theircomplaint resolved tell five people about hetreatment they received.


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The Customer Complaint Iceberg

Example of Complaints at British Airways (33% of all customers)

8%T

alk to Customer Rep

23% Talk to BA

69%Dont talk

to anyone


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Explain This:

CustomerExperience

FuturePurchase RecommendTell Others

No Problem/Satisfied 84% 91%

3

Problem/

Satisfied92% 94% 3

Problem/

Dissatisfied 46% 48% 7

Source: IBM Rochester; Baseline study of 2400 Customers


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Current

New

Win Back

1: 5: 11


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So

A customer that complains is an asset.

A customer that complains is an important

customer.

A customer that complains should be

rewarded.


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We have 50,000 moments of truth

out there every day..

Jan Carlzon, former President,

Scandinavian Airlines

Difficulties in Achieving Customer Satisfaction


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Difficulties in Achieving Customer Satisfaction:

Multiple Customer Interfaces

Product

DevelopmentSales

Reception

Service

Delivery Billing

Customer

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100%

80%

60%

0%

20%

40%

Customer Satisfaction

1Extremely

Dissatisfied

2Somewhat

Dissatisfied

3Slightly

Dissatisfied

4Satisfied

5Very

Satisfied

Apostle

Defection

Affection

Indifference

Terrorist

Difficulties in Achieving Customer Satisfaction:

How hard is to please and keep customers?

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Causes of Customer Dissatisfaction

Product /service not

meeting expectations

WHAT(Product /service)

Unresponsive

Difficulty of

doing business

Ignorance of

customers business

Inadequate

technical ability

& coverage

HOW(Process)

20%

80%


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Customer Satisfaction Management

Understand

who are our

customers

Measure

their

satisfaction

Assess

their

Needs/Wants


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Measurement of Customer Satisfaction:

Where is the bar?


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Overjumping (excessive resources)?

e

Underjumping (promising more than you can deliver)?


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Measurement of Customer Satisfaction:Characteristics of a System

On-going (regular)

Broad-based (all segments)

Multi-dimensional (products/services/processes)

Post-facto (reactive taken when interaction is completed)

Unfolding

(proactive taken as the interaction evolves)


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Measurement of Customer Satisfaction:FedEx Service Quality Indicators

Indicator Weight

1 Lost Packages 10

2 Damaged Packages 10

3 Missed Pick-ups 10

4 Wrong Day Late Deliveries 5

5 Overgoods (lost and found) 5

6 Complaints Reopened 5

7 Invoice Adjustments Requested 1

8 Missing Proofs of Delivery 1

9 Abandoned Calls 1

10 Right Day Late Deliveries 1

11 Traces 1

12 International 1


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Measurement of Customer Satisfaction:

FedEx Customer Satisfaction Ratings

0

50000

100000

150000

200000

250000

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

Time

SQI Trend

ust Satis Trend

90

60

70

80

50

%


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Voice of the Customer Grid

Customer Gets (satisfaction)

Wake Up Congratulations

Forget It Cut It Out

low

high

low high


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Voice of the Customer GridComparative Analysis

LOW

LOW

HIGH

HIGHSatisfactionA: Responsiveness of service personnel

B: Responsiveness of sales personnel

C: Ease of ordering products/services

D: Simplicity of billing

E: Clarity of product announcement materials

Note:

Prime Indicates

Competition

C

B BA A

C

D

E

D

E

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Questions ?Questions ?

fa10 040 lecture 16 customers voice

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