customer satisfaction marketing

Presented by-Shobhit Chandak

Customer Satisfaction

Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome ) with the performance he expects of it.

Complete customer satisfaction is achieved by understanding customer requirements And delivering superior quality goods and services.

Determinants of Customer Satisfaction

• Buying decisions based on judgments formed about the value of marketing offers

• Customer expectations based on past buying experiences

• Today’s most successful companies raising expectations and delivering performance to match

Total Customer Satisfaction

Satisfaction is a function of product perceived Performance & expectation

•If P is less than E than c is dissatisfied•If P is equal to E than C is Satisfied•If P is greater than E than C is delighted

XEROX•We shall never be 100% satisfied until you are too•A very satisfied customer is worth 10 times as much as a satisfied customer

Highly Satisfied Customers

•Stays Buyer Longer•Buys More•Talks Favorably about Products•Offers Ideas•Costs Less than New Customer

High Performance Business

•Stakeholders

•Processes

•Resources

•Organisation & Corporate Culture

Stakeholders

Processes

Resources Organisation

Customer oriented Organizational chart

MIDDLE MANAGEMENT

FRONTLINE PEOPLE

CUSTOMERS

CUSTOMERS

FRONTLINE PEOPLE

MIDDLE MANAGEMENT

TOP- MAN AGEM ENT

ORGANIZATIONS TO BE DELAYERED TO BE MORE CLOSELY ALIGNED TO CUSTOMER NEEDS

TOP- MANA GEMENT

Tools for measuringCustomers satisfaction

Complaints and suggestions systems

Customers satisfaction surveysGhost shopping

Lost customers analysis

Customer Delivered Value

• Customer-delivered value is the difference between total customer value and total customer cost of a marketing offer

• Customer satisfaction depends on the product’s performance relative to a buyer’s expectations

• Companies must be customer centered and deliver superior value to target customers

CustomerDelivered

ValueTotal

Customervalue

TotalCustomer

Cost

Productvalue

ServiceValue

Personalvalue

Imagevalue

Monetary cost

Time cost

Energycost

Psychiccost

Delivering customer valueAnd satisfaction

Value chain - The chain of activities from raw material to the after sale

service is called the value chain.Customer Relationship Management- Managing detailed information about individual customers and carefully managing all customers ‘touch point’ to maximize customer loyality.tools- datawarehousing & datamining.

Activities in Value chain

• A firm perform certain activities like design, produce, market, deliver and support product through which it develops a competitive advantage and creates shareholder value.

• it is useful to separate the business system into a series of value-generating activities referred to as the value chain.

• The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin.

The primary value chain activities are:

• Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required.

• Operations: the processes of transforming inputs into finished products and services.

• Outbound Logistics: the warehousing, scheduling and distribution of finished goods.

CONTINUE..

• Marketing & Sales: the identification of customer needs and the generation of sales including advertisement and promotion.

• Service: the support of customers after the products and services are sold to them,like installation and training.

Firm infrastructure

Human resource management

Technology development

procurement

Inboundlogistics

operations

Outboundlogistics

MarkgAndsales

service

Mar

gin

margi

n

Primary activities

Sup

port

act

ivit

ies

Value chain

1985 Michael Porter generic value chain model

Cost Advantage and the Value Chain

Porter identified cost drivers related to value chain activities:

• Economies of scale-Decreased per unit cost as output increases.

• Learning• Capacity utilization• Linkages among activities• Interrelationships among business

units

Continue..

• Timing of market entry• Firm's policy of cost or

differentiation• Geographic location• Institutional factors (regulation,

union activity, taxes, etc.)

Profitability & Total Quality Management

A profitable customer is a person,household or company that over time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling and servicing that customer

TQM is an organisational approach to continuously improving the quality Of all the processes, products and services Higher level of quality result in higher level of customer satisfaction.

PositiveExpectations of Customers from firm

•You have what they need•You will solve their problem•You will care•You will be professional•Your products & services are reliable•You are trustworthy•Business is valuable to you•Expect you to be cheerful•Your prices fair•You stand behind your products/services

NegativeExpectations

Your product is over pricedYour interest is to earn saleYou are grouchyTheir business is not important to you

You will be unskilledYou don’t careYou have no authority to handle situationYour product is poor in quality

THANKS