The importance of

Customer Satisfaction
Why is Customer service essential
Understanding customer service in the
market
Measuring customer satisfaction
The key to customer retention in India is
good customer service
It is vital to ensure that the customer loyalty
programs are an integral part of the
organization
Repeat customers spend 33% more than new
customers.
Referrals among repeat customers are 107%
greater than new customers
It costs 6% more to sell something to a
prospect than to sell that same thing to a
customer
India loses Rs. 11,640 Crores (Rs. 116.4
Billion) in revenue because of poor customer
service
Businesses in India, Australia and New
Zealand suffer significant losses because of
poor customer service over the web
Out of the 1,500 people surveyed most of the
people could not reach the call center
In India, 56% people discontinued because of
poor customer relationship
The higher the income levels the service
expectations are higher
Customer service is as much part of building
the brand as is advertising
At the heart of the LVMHs business model
is a well thought of process for creating and
growing star brands
A star brand has to be built for eternity
Timelessness takes years even decades to
develop. Such a brand must have come to
stand for something in the eyes of the world
Profitability depends on the price and the
cost incurred
LVMH realizes that in the case of the luxury
brands, the innovation supporting the
creative process and the advertising are very
expensive
The manufacturing process is carefully
planned and executed with the help of
modern technology
The Boulogne multicolor which sells for
$1500, illustrates how LVMH coordinates its
operations
The prototype went directly from the
marketing department to the top executives
When LVMH opened in Delhi, It found
strong demand for premium and aspirational
products
Super rich in the world have similar
lifestyles LVMHs experience
LVMH planned its entry carefully in the
Indian market
The company closely monitored Indians
who were buying abroad
MHFC combines the advantage of a bank
and MFI in one equity
It has tied up with several low cost
developers for projects in Maharashtra
Critics of the MFI model highlight its
inherent fallacies
People in dire straits are well-informed and
rational economic actors
Measurement of customer satisfaction is a
new significant addition to the new
ISO9000: 2000 Standard
There is a strong link between customer
satisfaction and retention
There is a lot of debate and confusion about
what exactly is required and how to go about
it
It is important to develop a clear
understanding of what exactly a customer
wants
Customer expectations are of 2 types
Expressed and Implied
Expresses customer expectations written
down and agreed upon by both the parties
Implied customer expectations not written
or spoken but expected
There are many reasons why the customer
expectations are likely to change over time
The customer is always right. The suppliers
job is to provide the customer what he
wants, when he wants it
Major attributes of customer satisfaction
can be summarized as:
Product quality
Product packaging
Price
What are the tools?
Customer expectations can be identified
using various methods such as:
Periodic review contracts
Market research
Personal visits
What are the tools?
Depending upon the customer base and the
available resources, we can choose the most
effective measures in customer perceptions
measurement
Formal surveys have emerged as the best
method to periodically assess the customer
satisfaction
The surveys are not marketing tools but an
information gaining tool
There is no point in asking irrelevant
questions on a customer satisfaction
questionnaire
Priorities for improvement should be one of
the objectives of the satisfaction
measurement
The survey forms should be easy to fill out
with the minimum amount of time and
efforts
The data should be sufficiently reliable for
management decision-making
Space should always be provided for the
customers own opinion
The respondents must be provided a way to
express the importance they attach to
various survey parameters
Typical questions for product performance
can be grouped together like:
Quality of the product
Consistency of the product
Price of the product
Typical questions for competitor
performance can be grouped together like:
Adherence to the delivery schedule
Quality of the product
Cost of the product
It is often found that there are dismal
responses from the customer
Electronic mailing of the surveys are a good
option as the customers can fill and send the
questionnaire quickly
The customers requirements must be
translated and quantifies into measureable
targets
This provides an easy way to monitor
improvements and to in turn improve the
customer satisfaction
The average of the weightings and the scores
given by the customer on each of the
parameters are plotted on a scatter graph
The customer satisfaction index represents
the overall satisfaction level of the customer
The bias due to individual perception needs
to be accounted for, since the surveys are
taken from one organization
We need to calculate average of all the
weightings
P Weighting
A Score
B Weighting (avg. of 1)
C Weighting (avg. of 1) * Score
D = B*C
Customer satisfaction can be expresses as a
single number that tells the customer where
he stands today
It is far less costly to keep existing
customers than to win new ones
A supplier should keep improving so as to
achieve a greater profitability
A simple tool is to take the customer
satisfaction surveys and analyze the
customers feedback
The Organization is responsible for
providing superior support in all aspects of
purchasing products:
All pre-order entry qualifications
Responsible for providing direction
Coaching and development of regional order
management teams
Ensure that all orders are entered into the
order management systems in accordance to
the set processes
Ensure that issues are escalated to the
appropriate authorities and seek closure in a
timely order
Builds and maintains customer relationships
specific to regions
Execute all month and quarter end activities
flawless
Documents, policies and procedures based on
expertise in specific job areas
Provide other services or perform activities
specific to the assigned region(s)
Schedule and perform quarterly business
reviews onsite with channel partners to
review and to drive operations improvement
Draw on to others support resources to drive
performance improvement for the assigned
regions(s)
Perform all people management duties
including recruiting, staff, development,
team-building and performance reviews
Participate in all other projects and
initiatives as determined by the organization
HCL announced the launch of HCL
TOUCH, its 24*7 round the clock, service
and support for its leaptop customers
HCL Touch sets a new benchmark for
laptop service in the country
HCL offers round the clock service to
leaptop customers across India
The support is offered in 11 different regional
languages
The HCL service is backed up by several
other initiatives such as the SMS request
service
The landmark laptop service will be
delivered through Indias largest IT Service
and support network
Customer has always been at the core of the
HCLs business with the customer care
services as a top priority Ajai Choudhary
Chairman and CEO, HCL.
In a bid to enhance its customer services
Eureka Forbes will be launching the
Automatic dust tracker initiative
The Automatic dust tracker measures the
exact amount of dust in the nook and corners
of our houses
The main objective behind this move is to
build an everlasting relationship with the
customers
This initiative would make the customers
friends for life by meeting all their health
requirements
Further Mr. Palekar informs that these
results are based on research conducted at
the companys laboratories
On a daily basis the institute monitors the
air pollution data
Eurosmile is the 24*7 virtual call center for
customer response
The total sales force of the company is over
4000 people Mr. Palekar
Eurosmile is the 24*7 virtual call center for
customer response
The total sales force of the company is over
4000 people Mr. Palekar
Titan a name which changed forever the
way watches made in this country were seen
by Indians and the world
Launched in 1987, Titan is credited to
transforming the Indian watch industry
Understanding the Indian consumers
psyche has been vital to Titan reaching its
current position of strength
The company today has a model for every
price segment and every market
Research reveals some interesting facts and
figures:
The Indian market is estimated at 25 million
watches a year
Titan is the runaway market leader
More men than women own watches in
India
It is the rural segment with this diverse
market that Titan is now looking to tap
The company plans to change that with
enhanced marketing and a different
marketing strategy
The Titan retail operations are a mix of
company-owned and franchisee outlets
The company brings the brand to the
customer in an appropriate setting through
its showrooms
The franchisee is a critical cog in the Titan
retail mix
The market is opening up, and the
franchisee, after all, looking for what is more
profitable Ajay Chawla
The franchisee is a critical cog in the Titan
retail mix
The market is opening up, and the
franchisee, after all, looking for what is more
profitable Ajay Chawla
Besides its franchisee and its own
showrooms, Titan sells it products through
other outlets as well
The service centers have been deliberately
kept apart from the showrooms
Titans blueprint for the future includes
watches for the international heavy weights
such as YSL, Christian Dior and Gucci
Titan is also planning to expand into
categories like sunglasses and leather
products
Indian Oil Corporation launched the IVSR
in 33 Indane area offices for better services
The Indian oil Citibank co-branded credit
cards have reached a 1.48 Lakh membership
in 2002
IOCL launched Power plus fleet card for
transport fleet operators in association with
Sundaramfinance
The customer service initiative of IOCL is
considered as one of the best from the public
sector undertaking