1. CUSTOMER
SATISFACTION

2. CONTENT OUTLINE
Who is the customer?
Customer perception of TQM
Customer feedback
Using customer complaints
Customer service
Translating needs into
requirements

3. Who is the customer?

4. A customer can be
defined as one who
purchases or
patronizes for the
purpose of receiving
products or services

5. DR. W. EDWARDS
DEMING
 Stated quality
means
anticipating the
future needs of
the customer.
 Because
satisfied
customers will
lead to
increase profits

6. 2 types of customers:
External- Internal
Buys Receive a
product or product
services or
services

7. The formula for successful
internal customer/ supplier
relationships: 3 basic questions
as advanced by LaBOVITZ;
1. What do you need from me?
2. What do you do with my output?
3. Are there any gaps between what
you need and what you get?

8. Every department or
unit must determine
what activities/ task
are important to both
external and internal
customers and
manage quality step
by step of the way.

9. CUSTOMER
PERCEPTION OF TQM

10. One of the fundamentals of
the TQM philosophy is
continuous process
improvements
The customer’s needs,
values, or expectations are
constantly changing and
becoming more and more
demanding

11. The AMERICAN SOCIETY FOR
QUALITY CONTROL (ASOC)
- conducted a survey on
customer’s perceptions of
important factors that
influenced purchases
showed the ffng. Ranking:

12. PERFORMANCE
- Fitness for use- ready for
customer’s use at the time of sale.
 Availability- operate when needed
 Reliability- freedom from failure
overtime
 Maintainability- product can be
kept operable

13. FEATURES
-Serviceare psychological, time-
oriented, ethical, and
technological.
- Are secondary characteristics
of the product or service.

14. SERVICE
-greatly
emerging as a method for
business organizations to give
customer added value.
-contribute greatly to customer
satisfaction

15. WARRANTY
-represents a business
organization’s public promise
-gives feedback
-motivates customer to buy
-generates more sales

16. PRICE
-presentcustomers are willing to
spend higher price to obtain
value.
-customer’s concept of value is
continually changing.

17. REPUTATION
-total customer satisfaction is based on
the entire experience with the
business organization, not just the
product.
-willing to pay a premium for a known
or trusted brand name and often
become customer for life.

18. CUSTOMER
FEEDBACK

19. According to D.H.
BESTERFIELD
customer feedback must be
continually solicited and
monitored. Feedback enables
the business organization to:
1. Discover customer dissatisfaction.
2. Discover relative priorities of quality

20. 3. Compare performance with
the competition.
4. Identify customer needs
5. Determine opportunities for
improvement.

21. Feedback has become very
important that it drives new product
development.
Effective business organizations
take time to listen to the voice of
customer and feed that information
back to the idea stage

22. Types of
method/techniques that
can be used to obtain
responses from the
customer:

23. COMMENT CARD
Low cost method of obtaining
feedbacks from customers.
Purpose is to get basic information:
name, sex, age, address, occupation,
monthly income, and what
influenced the customer’s decision to
buy the product.

24. SURVEY
Common techniques or
tool for gathering
opinions about a
business organization
and its product and
services.

25. FOCUS GROUPS
Method used to determine what the
customers are thinking.
Gather in a meeting room to answer
several questions
Meetings are designed to focus on
current, proposed and future products
or services.

26. TOLL- FREE TELEPHONE
NUMBERS
Are good technique for receiving
complaint feedback
business organizations can
respond faster and cheaper to the
complaint.

27. CUSTOMER VISITS
Managers should be evolved in
these visits and should not be
delegated to just anybody.
Nice to bring along skillful/
knowledgeable employee

28. REPORT CARD
Normally it is sent to every
customer on a quarterly basis.
The data shall be analyzed to
determine areas of
improvement

29. Other methods of gathering data
are:
1. Evaluating customer
satisfaction during contract
review
2. Reviewing service or field
staff reports
3. Systematically following up
on last sales
4. Utilizing the services of

30. USING CUSTOMER
COMPLAINTS

31. In a study conducted by
AMERICAN SOCIETY FOR
QUALITY CONTROL (ASQC)
revealed that more than half of
dissatisfied customers will buy
again if they believe their
complaint has been heard and
resolved

32. Some activities undertaken
according to ASQC:
1. Investigate customers experiences
2. Develop procedures for complaint
regulation
3. Analyze complaints
4. Work to identify process and material
variations
5. Managers should contract the customer
and strive to resolve the concern.

33. 6. Establish customer satisfaction
measures
7. Communicate compliant
information
8. Provide a monthly complaint report
9. Identify customers expectations
beforehand rather than afterward
through compliant analysis

34.  Front personnel should know how
to handle a wide range of
situations that arise.
 Training from personnel becomes
the top priority to encourage
customers to discuss their
complaints and deal with them
skillfully.

35. CUSTOMER SERVICE

36.  It is a set of activities that a
business organization uses to
win and retain customers
satisfaction.
 It can be provided
before, during, or after of the
sale of the product or exist on
its own.

37. Elements of Customer
Service according to
Jacques Horovits and
Chan Cudennec-poon:

38. ORGANIZATION
Identifyeach market
segment
Write down the
requirements
Communicate the
requirements

39. CUSTOMER
 Meet the customers
expectation
 Get the customers point of
view
 Deliver what is promised
 Make the customer feel valued
 Respond to all complaints
 Over respond to the customer

40. COMMUNICATION
 Optimize the trade-off between time
and personal attention
 Minimize the number of contact
points
 Provide pleasant, knowledgeable and
enthusiastic employees
 Write documents in customer friendly
languages

41. FRONT LINE PEOPLE
 Hire people who like people
 Challenge them to develop better
methods
 Give them the authority to solve
problems
 Serve them as internal customers
 Be sure they are adequately trained
 Recognize and award performance

42. LEADERSHIP
Lead by example
Listen to front line people
Strive for continuous process
improvement

43. TRANSLATING NEEDS
INTO REQUIREMENTS

44. Realistically, the customer
doesn’t buy specification, the
customer buys the product or
services to fulfill a need. Just
meeting a customers need is
not enough; the organization
must exceed the customers
needs.

45. Management must know
that continuous
improvement and customer
satisfaction go hand in
hand. Maximize customer
satisfaction and financial
results will follow.