CUSTOMER SATISFACTION AND CUSTOMER DELIGHT

SUBMITTED BY- RISHAV SARKARPRAMANDRA PRAKASHRAJARAM CHAUDHURY

RAKESH KOLHERAVINDRA KUMAR

Customer Relationship Management

CRM is the establishment, development, maintenance and optimization of a long-term mutually valuable relationship between consumer and organization.

It enables an organization, the capabilities to maintain 1:1 relationship with the customer.

CRM has changed the outlook of the companies which is ‘helping buyers buy and not helping seller sell’

Is there need for CRM????

Before 1990, call of the INDUSTRIAL REVOLUTION was‘This is what I make, won’t you please buy it?’

After 1990, call of the CUSTOMER REVOLUTION was‘This is what I need won’t you please make it?’

‘There is only one boss, “The Customer”. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else’ WALT DISNEY CRM IS NECESSARY FOR BUSINESS NOWADAYS

CUSTOMER SATISFACTION

A measure of how products and services supplied by a company meet or surpass customer expectation.

A key performance indicator.

Need of Customer satisfaction in CRM- CRM establishes the relation between a company and its organization. However to develop this relation there should be customer satisfaction on the customers side. Otherwise there would be a negative relation between the customer and the company. Hence there is need of Customer satisfaction in CRM.

Benefits of Customer Satisfaction

Increase in revenue and profitability of companies.

Retention of customers.(Existing customer is easier to retain than finding new customers)

Happy customers are like free advertising.(If customers are satisfied, they will tell others about the product)

“Do what you do well, that people want you to do it again and will tell others what you do.” Anonymous

Means of satisfying customers can lead to new product lines.(Nintendo, a gaming company launched anime series of a game called Pokemon to meet the expectations of the customer. It became the most viewed cartoon series between 1998-2000)

Key questions to be answered for attaining customer satisfaction

What makes our customer buy from us and not from our competitor?

Is there any way of improving our product or services for the customer?

What are the reasons other customers buy from a new company or an existing competitor?

Can those reasons be removed? How can we entice this customers to buy from us?

Strategies of customer satisfaction

Improving quality of product.

Improving service quality.

Identifying and executing buying influences.

Showing CARE for the customer needs- C- Credible (reliability, do what you promise to do) A- Accessible (make yourself available) R- Responsive (answer promptly, meet the unique service needs and experiences) E- Excellence (strive for excellence)

Resolve cognitive dissonance.

Making the product unique and sophisticated.

Strategies of customer satisfaction

Let the customers co-create and co-develop.(The maggi brand has always remain ahead of its competitors by letting its customer co creating and developing the brand like developing new recipe for maggi. It gives a positive vibe of being part of the family)

Behaviour of the employees who sell the products or avail the services to the end customer.(focus should be given more in case of services)

Acknowledging the customer and reward them. Listen to the customer complaints and resolve them.

A good customer satisfaction model

Don’t have the same model for every type of customers.

- Understand the different type of customers and their relationship styles.

- Designing different strategies for different customer segments. Let the customer decide the channel for

relationship.- don’t bombard the customers with unnecessary mails, telemarketing.( Phillips company uses touchpoint management to interact with the customer).

Customer delight

The next step of customer satisfaction where your product or services exceeds the expectation of the customer.

Surprising your customer.( When Apple launched the iPod it surprised the customer as such a device was not available before which can store so many songs and is very much easy to carry. In short the customers were delighted.)

Customer delight model

d

Service

Quality

DELIGHT

Loyalty

Objectives of Customer Delight- Customer loyalty-

Proctor & Gamble's Pampers product had 13% market share in Hong Kong. They went on a massive campaign to gather the names and addresses of mothers and babies through highly successful cash back sales promotion activities. To get the cash back, mothers had to write in with full name and address details as well as the babies birth date and sex. Using this information they wrote to the mothers on a quarterly basis, telling them of their babies growth and what to expect at the various stages. They also sent out discount vouchers when it was time to buy the next size up, so that the nappies always performed well. Within 14 months (the fifth cycle of the ever-growing list of mothers) Pampers had moved to the number one position with 49% market share. Each percentage point was worth US$1million over the life usage of the product. That's $29mil just by staying in touch with the same base, within 3 months over and over.

Objectives of Customer Delight-

Increase in sales and profit – When Apple brought back Steve Jobs in the company in the year 1996, he launched innovative products like iPods, iPad in the following years which exceeded and surprised the customers expectation. This directly affected the sales and profitability of the company in a very effective way.

Objective of Customer Delight

Positive word of mouth-If the customers are delighted about the product then there would be free publicity about it. It has been seen that mere satisfaction of the customers doesn’t trigger much publicity, however if the customer is delighted he would be more eager to communicate about the product to its kin.

THE DELIGHT RESPONSE CURVE

THE DELIGHT RESPONSE CURVE SHOWS THE RELATIONSHIP BETWEEN THE SATISFACTION OF THE CUSTOMER AND OUTCOME OF THE COMPANIES. MOST FIRM’S EFFORTS TO IMPROVE CUSTOMER SATISFACTION ALONG THE ZONE OF MERE SATISFACTION. THIS IS A HIGHLY INELASTIC ZONE IN WHICH IMPROVEMENTS IN SATISFACTION DOESN’T HAVE A PROPORTIONATE INCREASE IN SATISFACTION. ON EITHER SIDE OF THIS ZONE, SATISFACTION’S RESPONSE TO CHANGES IN PERFORMANCE IS VERY MUCH DYNAMIC CREATING TWO VERY ELASTIC ZONES WHERE A LITTLE INCREASE OR DECREASE IN PERFORMANCE CAN TRIGGER A SIGNIFICANT AMOUNT OF SATISFACTION OR DISSATISFACTION.

CONCLUSION

Thank You