Measure Customer Satisfaction: Techniques and Importance

CUSTOMER
SATISFACTION
MEASURING CUSTOMER SATISFACTION

Learning Objectives

I. Be able to measure customer satisfaction.
i. Understand the importance of measuring customer satisfaction.
ii. Evaluate techniques of assessing customer response.
iii. Design a customer satisfaction survey.
iv. Review the success of a completed survey.

© 2013 Berlin Asong. All rights reserved. 2

Learning Objectives



Think of a product or service you
weren’t satisfied with. Assuming you
have ceased your relationship with
the product or service. How much has
that company lost in terms of sales?
Let’s say the monthly service charge is £30. You ceased your relationship
with the company in January 2010. How much has the company lost since then?


BT provides fixed phone, broadband, TV and network
IT services. The company tracks customer response to its
services, service bundles and prices on a monthly basis.

Why does BT track the
attitude, satisfaction, engagement
& buying patterns of customers?


1

It is important because…

…customers drive
the performance of a
successful business.


Theconsequencesofnotmeasuringcustomersatisfaction
areimmeasurableespeciallyasonlinesocialmedialike
YouTube,Facebook,Twitter,etc.giveusersthepowerto
spreadgoodorbadpublicityaboutbrandsquickly.


In 2010, Gap rebranded itself with a new logo. Customer
responded angrily to the new logo on Twitter, FB, YouTube,
etc. Within 7 days the company reverted to the old logo.


Lessonstobelearnt
fromtheGaplogodebacle.

Source: BBC (October 2010)


2

Measuring customer satisfaction is a…

…means to determine
how well a firm is meeting
the needs of customers. …especially, against the competition.


M&S (2012), “Annual Report and Financial Statements”. [Report] Retrieved 17 Dec. 2012, from
http://annualreport.marksandspencer.com/_assets/downloads/Marks-and-Spencer-Annual-report-and-financial-
statements-2012.pdf


3

Measuring customer satisfaction can…

…provide answers
to marketing problems
faced by a firm.


4

Measuring customer satisfaction helps to…

…create a customer
-centred culture.


5

Insights from customer satisfaction measurements…

…can enable the firm
build strong relationships
with customers.
Source: planpersonnel.co.uk


6

Measuring customer satisfaction…
…shows marketing
decisions are guided
by analytics.

Source: successfulworkplace.com


Learning Objectives



WHAT?
Customer Response to


Customer response to…
…product & service
offerings.


BT provides fixed phone, broadband, TV and network IT services.

In what ways can BT
assess customer response to
its fixed phone services?


Techniques of Assessing Customer Response

Sales level.
Customercomplaints.
Customerfollow-up.
Customersatisfactionsurveys.
Mysteryshopping.
Loyaltycard.
Etc.


Advantages

Sales Level Customer Follow-up Customer Complaint Satisfaction Survey



Disadvantages

Sales Level Customer Follow-up Customer Complaint Satisfaction Survey



Sales level.
Customercomplaints.
Customerfollow-up.
Loyaltycard.
Etc.


Customer response is
measured using sales figures.


Using daily, weekly
or monthly demand
trends for a product
or service to gauge
customer response.
Source: eniram.fi


Merits of using…
…sales level to assess customer response.


1

Because sales level
denotes the actual
intentions of buyers,
it could indicate how
well or bad a product
or service is received.
Source: eniram.fi


Weak sales could
indicate negative customer
response, & vice-versa.


Demerits of using…
…sales level to assess customer response.


1

Strong
sales doesn’t
mean satisfied
customers.


2

Sales level…
…doesn’t tell
which aspects of
the service or product
appeal to customers.


Sales level.
Customercomplaints.
Customerfollow-up.
Mysteryshopping.
Loyaltycard.
Etc.

Chelsea fans wasted no time to vent their
opposition to newly appointed Manager Rafa
Benitez replacing Di Mateo sacked in Nov. 2012
Source: staging.mg.co.za


Source: kellaway.co.uk

Returned goods

Source: gresswell.co.uk


Organisations that treasure the value of customer complaints…
…provide
customers the
opportunities
to do so.


Online social media platforms
like YouTube, Twitter, & Facebook empower customers to
share & spread complaints far quickly. These platforms
offer the opportunity to gather & monitor customers’
comments on products, services, brands, etc.


Merits of using…
…customer complaints to assess customer response.


1

Customers volunteer to submit ideas.
Firm obtains many ideas at
Source: i.zdnet.com
"little or no cost".

2

Customers complaints can
specify aspects of the
product or service that
need improvement.
Source: inc.com


3

Customers complaints can serve as a platform for
constructive dialogue between customers and the firm.
Source: blog.acteva.com Relationship building.

4

Complaints are
effective in monitoring
customer satisfaction
on an on-going basis.
Source: gresswell.co.uk


…customer complaints to assess customer response.


1

I get fewer complaints
from my customers. Is
it an indicator of high
customer satisfaction?


NO. Why?
I get fewer complaints
from my customers. Is
it an indicator of high
customer satisfaction?


2

Excessive customer complaints…
…require investment
in complaint management
systems (e.g. people, equipment, procedures & analytics).



Sales level.
Customercomplaints.
Customerfollow-up.
Mysteryshopping.
Loyaltycard.
Etc.

After sales
E.g.
follow-up and
customer query
follow-up.

Source: zoho.com


The goal is to
extract satisfaction
from customers.

Source: businessfinancestore.com


Merits of using…
…customer follow-up to assess customer response.


1

Source: depts.ttu.edu

It provides a personalised
approach to customer care.
…hence, the customer feels valued.


2

It offers the opportunity
to learn more about the
needs of customers.


3

It could offer
new leads
to products or
services the
customer
may like or
dislike.
Source: jcostaphotos.com


4

It could serve as a platform for the
firm to build "lasting" relationships with
customers; hence retaining customers.

…customer follow-up to assess customer response.


1

It requires investment
in customer relationship
management systems
(e.g. people, equipment, procedures, database & analytics).



Sales level.
Customercomplaints.
Customerfollow-up.
Mysteryshopping.
Loyaltycard.
Etc.

Customer satisfaction survey

Source: profitabletotrain.com


Merits of using…
…survey to assess customer response.


1

Survey…
…offers the flexibility to measure
customer satisfaction on a range
of product or service issues.


The duration of customer
satisfaction surveys can last between
60seconds to 60minutes.

2

It offers a snapshot understanding of
customer satisfaction of a product or service.

Source: ucsc-extension.edu


M&S (2012), “Annual Report and Financial Statements”. [Report] Retrieved 17 Dec. 2012, from
http://annualreport.marksandspencer.com/_assets/downloads/Marks-and-Spencer-Annual-report-and-financial-
statements-2012.pdf


…survey to assess customer response.


1

Surveys…
…provide superficial
answers to questions like
"how & why are they satisfied".



Sales level.
Customercomplaints.
Customerfollow-up.
Mysteryshopping.
Loyaltycard.
Etc.

Effective in monitoring
services provided to customers. Source: conferoinc.com


Effective in monitoring
staff performance.


Sales level.
Customercomplaints.
Customerfollow-up.
Mysteryshopping.
Loyaltycard.
Etc.

Loyalty cards


Merits of using…
…loyalty card to assess customer response.


…loyalty card to assess customer response.


Learning Objectives



How to design a
customer satisfaction
survey (questionnaire).



Step One

Decide the objectives
of the customer
satisfaction survey.


What
specifically
do I want to
measure?


All or most customer satisfaction surveys seek to…

1
…determinethe state of customersatisfactionordissatisfaction.
2
…determineserviceorproductfeatures thataffectsatisfactionordissatisfaction.
3

…determinelinks betweencustomercharacteristics& satisfactionlevels.
4
…determinelinks betweencustomercharacteristics& satisfactionlevelstospecific
productorservicefeatures.


Having specific objectives is so important as they …
…determine the type
of questions to include in
your questionnaire.


Step Two

Write down the
questions to ask your
respondents.


What type
of questions
to ask?


Open-ended Questions Close-ended Questions
Rating scales questions.
Multiple-choice questions.
Dichotomous questions.


Close-ended Question: Rating scale
How would you rate the attention your lecturers provide to you?
Excellent
Very good

Good
Poor

Very poor


How satisfied are you with Rim’s lectures?
Very satisfied
Satisfied

Neutral
Unsatisfied

Very unsatisfied



How satisfied are you with Rim’s lectures?
Very unsatisfied Very satisfied
1 2 3 4 5

5-point scale



How important that you can choose the date and time to attend lectures?
Not very important Very important
1 2 3 4 5 6 7 8 9 10

10-point scale


Close-ended Question: Multiple-choice
Which of the following features of Rim’s lectures do you most like?
Choose up to three.
She’s very knowledgeable
She refers to students by their names

She provides assignment feedbacks quickly
She explains concepts clearly in ways that is easy to understand

She is very approachable
(other)________________________


Close-ended Questions: Dichotomous
Did you attend all the 10 lessons for Marketing Intelligence held
between Oct. 2012 and Dec. 2012?
Yes

No

Would you recommend our product or service to friends?
Yes

No

Please enter your gender:
Female

Male

Open-ended Question

Why are you "very unsatisfied" with Rim's lectures?


Ensure questions
are properly worded. your
Use simple and concise words that respondents can understand. Testing
questionnaire with respondents could eliminate question-errors and bias questions.


Step Three

Arrange the order
of questions in a logical
& transitional manner.


Group questions
of the same topic in one
section like so…


Use suitable headings

Use suitable headings

Source: sn.curtin.edu.au


Overall Layout
Survey Title
A statement explaining the purpose of the survey to
respondents. State survey duration. Thank respondent for
agreeing to participate in the survey.

Questions

Demographic questions

A closing statement reassuring the respondents of the
survey purpose. Thank respondent for participating in the
survey.

You can also use tools or platforms like…

…surveymonkey.com
and Adobe Forms to
design surveys.


Learning Objectives



What makes a
successful survey?


Criteria for Reviewing the Success of A Completed Survey

Time.
Cost.
Response rate.
Questioncompletionrate.
Reliability andvalidity offindings.
Degree towhichsurveyfindings solve“the problem”.



Time.
Cost.
Response rate.


Was the survey completed
within the set time-frame?
If not; why?

Source: isitthattime.com



Time.
Cost.
Response rate.


Was it completed within budget? Was
the survey impacted by limited funding?



Time.
Cost.
Response rate.


Measured in terms of number
of filled questionnaires.

Source: blog.shareaholic.com


1000 questionnaires were sent out, but
only 890 filled questionnaires were returned.
What is the response rate?



Time.
Cost.
Response rate.


The number of questions that
ought to have been answered.




Time.
Cost.
Response rate.


Regardless whether a survey is completed
on time, within budget or has a high response rate,
success is ultimately judged by…

…reliable & valid findings.
Reliability Internal validity
External validity
Construct validity



Time.
Cost.
Response rate.


One conducts a survey for
a purpose; to understand a problem;
to seek solution to a problem; to improve
existing services or product; etc.


Measure Customer Satisfaction: Techniques and Importance

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Measure Customer Satisfaction: Techniques and Importance

Ähnlich wie Measure Customer Satisfaction: Techniques and Importance (20)

Mehr von Teaching Excellence

Mehr von Teaching Excellence (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Measure Customer Satisfaction: Techniques and Importance