Customer: Satisfaction

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


Learning Objectives


Think of a product or service you
werent satisfied with. Assuming you
have ceased your relationship with
the product or service. How much has
that company lost in terms of sales?
Lets 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 doesnt
mean satisfied
customers.

2
Sales level
doesnt 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

Demerits of using
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.
Demerits of using
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

Demerits of using
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.

Demerits of using
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 Rims lectures?
Very satisfied
Satisfied
Neutral
Unsatisfied
Very unsatisfied

How satisfied are you with Rims 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 Rims lectures do you most like?
Choose up to three.
Shes 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.
Use simple and concise words that respondents can understand. Testing your
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 solvethe 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.


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CUSTOMER

I. Be able to measure customer satisfaction.

2013 Berlin Asong. All rights reserved. 2

I. Be able to measure customer satisfaction.

2013 Berlin Asong. All rights reserved. 3

I. Be able to measure customer satisfaction.

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2013 Berlin Asong. All rights reserved. 6

Why does BT track the

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Source: BBC (October 2010)

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Measuring customer satisfaction is a

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Measuring customer satisfaction can

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Measuring customer satisfaction helps to

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Insights from customer satisfaction measurements

can enable the firm

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Measuring customer satisfaction

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I. Be able to measure customer satisfaction.

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In what ways can BT

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Sales Level Customer Follow-up Customer Complaint Satisfaction Survey

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Sales Level Customer Follow-up Customer Complaint Satisfaction Survey

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Because sales level

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Customers volunteer to submit ideas.

Customers complaints can

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Customers complaints can serve as a platform for

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I get fewer complaints

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Excessive customer complaints

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