Literature Review
Literature Review
Literature Review
2.1 Customer's satisfaction is a chief objective of most companies of the globe. When suggestion
is made for the productivity, profitability, sustainability, etc in business world, no organization
can forget the fact customers' satisfaction because it goes in a long way to affect these indicators.
It is all about meeting the requirement and taste of customers i.e. the input is converted and the
process involved give output that satisfy or meet with what the customers expect. Customer's
satisfaction is precisely, 'meeting customer's expectation' and should be a continuous and
reviewed process for organization acceptance and survival.
No customer will buy products that do not satisfy him/her or meet his/her taste. The fact is that
no organization wants to produce products that do not satisfy the customers in the first place.
Thus organizations keep in mind that customers are king. Some organizations work with the
thinking that customers do not pay for their needs but they pay not only for our services but also
for generating sales more and more. Those organizations are successful which think that
employees do not get salary for their workings but are getting salary for treating the customers
because these are the customers who increase the sales and provide the salaries to the employees.
As they work hard as per requirements.
I have learned the articles where I have seen that customer falls in two levels in terms of
accomplishment needs and wants that is the satisfaction level and other is delighted level. A
customer can be delighted through the products but it does not mean that customer is loyal with
the products or brand. Philips and AT & T have achieved the once again higher priority by
realizing the customer satisfaction’s importance that can be enhanced through customer services
and by adopting the 7 or 8 ways.
2.2 BACK GROUND DISSCUSION:
Difference between delighted and satisfied customers:
“Most people think that "just turning up the effort" a bit is all that it takes to truly delight a
customer. They believe that customer satisfaction is a linear relationship, the more effort, the
more you put into it the happier the customer. That just isn't the case.
There really is a couple of ways we can differentiate this. The differentiator:
Something the customer expects
Something the customer never expected, but values once he has it”.
By Alan Boyer Submitted on 20 Oct 2005
Something the customer expects
Expect means that what customers perceive from the producers. And customer when get
products according to their desires then they will be happy otherwise they will be unhappy.
Customers expects from producers Quality, Product’s attributes/ Product’s features from
marketing to after sale services. Ana a customer will be satisfied only then when he will get that
which he expects.
“An example of that is when a customer expects something to work…
If it doesn't work he's VERY unhappy.
If it works but just not quite like he expected he may be not be as unhappy.
When it finally works to his expectation he is content. He isn't delighted, a long way from
it”.
Example:
Customer want that with a laptop there would be the high timing chargeable battery and also it
should be slim, portable and also coloring would be fascinating. These all are the features that a
customer expects from the producers and if their desires will be fulfilled then they would be
satisfied customers.
Something the customer never expected, but values once he has it
A customer can be delighted only then when he will get that which will be more than its
expectations. But with this a necessary element is the value which is that core part of customer’s
satisfaction and in making customer’s delight.
Example:
Similarly in laptop example if the customers will be provided with a bag to carry it from place to
place easily, there would be extra battery with laptop. If all these desires will be fulfilled then the
customer will be delighted.
Kano Model:
It is that model which was revised by the Deming but actually was developed by the Shewhart.
This model describes the delighted and satisfied customers.
Kano model is the theory of product development and customer satisfaction developed in 80’s by
Professor Nokiari Kano which classifies customers’ preferences in five categories which are:
Attractive
One Dimensional
Must be
Indifferent
Reverse
These categories have been translated into English using various different names
(delighters/exciters, satisfiers, dissatisfiers, etc.) MODEL AT 80 PG.
Ideas to Increase Customer Satisfaction
Listen
Be Sincere
Communication
By Oliver Stewart Article Submitted On: January 28, 2010
Listen
A customer will be only satisfied when the producers will listen to him/her. And
producers can only then listen to them when the customer’s needs and wants will be fulfilled.
Be Sincere
When the producers will start to listen the claims and focuses on the issues of customers
then they will be sincere with their customers. Sincerity is a long run effort of keeping the
customers loyal towards the specific products and organization.
Communication
Communication is also necessary among the customers so that company can know
properly about the feelings and attitude of customers towards product. A way of communication
is also the feed back of customers through which a company can know abut the customer’s needs
and wants and also about their perception about the company’s products
Customer Satisfaction Leads To Customer Loyalty
“When you go shopping do you ever analyze what you're buying and why? Do you ever watch
the marketing techniques being used in the store? Do you see what works and what doesn't work
for the store you're in and apply that information to your own business?
The other day I was grocery shopping and when I rounded a corner a woman was giving away
samples of a new cracker. The sample was good, yummy in fact. I didn't particularly need
crackers but she told me they were on sale this week and with the dollar off coupon it would be a
good buy. Anyway, you can always use crackers can't you?
I went over to the cracker section of the store to find a gaping hole. The brand being promoted
was sold out. So I went back to the Sample Lady and asked her if there was another place in the
store where I could pick up the crackers. She told me they were completely sold out but there
would be more when their truck came in --- in two days! I asked her how long she planned to
give out samples of a product people couldn't buy. Her answer amazed me. She had two more
hours that day and an eight hour shift the next day to give out samples of a product that wasn't
available. Now - does that even begin to make sense?
By Ruth Fuersten Article Submitted On: September 10, 2007
It may irritate the customers when they have to wait to get what they wanted. Like the crackers,
that the person wants, it was desire purchase and they weren't available. He felt a gentle sense of
irritation. When he went to check the items He had purchased but didn't see the sale price. Then
he had purchased several because they were on discount. When he went home and looked over
the receipt then he realized I hadn't received the discount. This wasn't fifty cents that I could over
look - it was $10. Now I am irritated! They hadn't followed through on a sale item on top of not
having a sample item.
Thus Customer satisfaction is one of the biggest issues in building a solid business. Your future
hostesses and recruits will come from the satisfied customers you have today. Reality is
customer satisfaction leads to customer loyalty. I think I'm looking for a different grocery store”.
It is reality that one a person sees the customer satisfaction so deeply, then he also tries to
purchase the product on the basis of believe of that company’s customers on product. But they
can’t know that those customers are blind in the product’s brand satisfaction due to which they
don’t want to know about the selling conditions of the product. Thus before purchasing any
product it must seen that what are its selling conditions so that can prevent himself/herself from
the extra cost which is going to pay.
Philips - Where Customer Satisfaction Tops the Priority List
“Philips is the brand that needs no introduction. Koninklijke Philips Electronics NV, better
known as Philips, is one of the largest electronic products manufacturers in the world. It was
founded a way back in 1891 by Gerard Philips. Today, the company employs more than a
whopping 123,800 employees in more than 60 countries. Philips manufactures products in
various categories. These include consumer electronics, domestic appliances, lighting, medical
systems, and medical technology.
In the year 1930, Philips started operations in India at Kolkata under the name Philips Electrical
Co. (India) Pvt. Ltd. Since then Philips India rules the heart of every Indian. The product line of
the company includes Philips hone audio systems, bulbs, irons, music players, washing
machines, home theatre, food processors, LCD TV and many more. Healthcare products
manufactured by Philips include Diagnostic ECG, Computed Tomography (CT), Radiography,
ECG, ultrasound, defibrillators, healthcare informatics products and many more.
In 1963, Philips introduced Compact Cassette and the company launched Compact Disks (CDs)
in the year 1982 partnered with Sony. Again in 2006, Philips introduces Blue-ray Disk in
partnership with Sony. The company has undergone a number of acquisitions. Some of the
acquisitions include Magnavox, Signetics, Mullard, Amperex, VLSI, Agilent Healthcare
Solutions Group, ADAC Labs, ATL Ultrasound, portions of Westinghouse Marconi Medical
Systems, and the consumer electronics operations of Sylvania and Philco. Philips India
manufactured its millionth Philips radio in the year 1965. As of 2008, the company employees
more than 4,000 staffs in India.
Through 'browse deal' section one can browse products as par their choice. For example, if a
customer wants to buy a Philips LCD TV then he/she can select LCD TV according to budget
and features. This process is even easier than dialing a number from your mobile phone. So
products are just a click away to do hassle-free online shopping”.
By Shefali Roy 22 Nov 2009
In this era of modernization everyone wants to make their life as hassle-free as possible. Thus
people are shifting from market shopping methodology towards online shopping methodology.
Hence, the number of online shoppers is proliferating day by day. One can get products of every
possible brand like LG, Samsung, Philips, Nokia, Nike and a lot more. So shoppers don’t need to
move from one shop to another in order to buy products of their choice. One is just a click away
to avail abundance of features provided by online shopping.
Its means that Philips is not only fulfilling the needs and wants of customers by providing
advanced and innovative products but also satisfying their demands and needs by providing
online shopping facility. Which is providing the facility to the customers not only to reduce the
cost which is at a click step far from the customers but also provide the customize products
facility. That is the main reason owing to which Philips got the priority than the competitors.
So, it’s necessary that producers should not only have the target to achieve only the
satisfaction of the customers but also have the purpose to provide the customers with the ease of
buying the products through the electronic media.
Why is customer service so important?
“Well, the Harvard Business Review reports that if you can prevent 5% of your customers from
leaving you, you can increase your bottom line profit by 25 – 95%. US News and World Report
did a study and found that:
The average American business loses 15% of its customer base each year.
68% of customers who stop buying from one business and go to another do so because of
poor or indifferent service.
14% leave because of an unsatisfactorily resolved dispute or complaint. 9% leave
because of price.
5% go elsewhere based on a recommendation. 1% dies.
82% goes somewhere else because of a customer service issue!
So, with the Harvard Business Review saying that you can increase your bottom
line profit by 25% - 95% if you can prevent 5% of your customers from leaving, and U.S. News
and World Reports says 82% of customers leave one business and go to another because of a
customer service issue, we better all be real serious about customer service.
So again, 82% of the customers who leave one business and go to another do so because of
service related issues… and what’s really key and sad for you and me is that most of those
customers don’t bother to complain. They just leave and don’t come back. And then you’re stuck
spending a bunch of time and money trying to get new customers into your store, when with
some consistent and persistent messages and training to both your team members and customers
they would never have left in the first place”.
By Keith Lee Published: 9/21/2007
Alfredo Pretto 80/20 Rule
Here the Alfredo Pretto’s 80/20 rule can be applied which is that:
“He has said that the organizations or producers should focus on 20% customers to get profit of
80%”. Because when there will be focus on 20% customers then the remaining at least 60%-70%
will come by seeing the other customer’s loyalty. Thus through this way 20% customers can be
converted into 80% customers.
Example:
Say that cellular companies, say Telenor has 20% industrial customers who purchase their
products because they need the Sims at every step of their business to connect with the chain of
their workings. Then Telenor should focus on them and should provide those packages so that
they come again and again to purchase their new products or packages.
Now the customers will happy only then when they will be provided with frankly environment
where they can grow and give their ideas easily without hesitation. So it is difficult hundred
times to keep the old customers then to acquire new customers.
Customer Service – What is it?
I. Customer Service starts with your staff
II. Customer Service getting to know them
III. Customer Service is getting Feedback – and acting on it
IV. Customer Service is going the extra mile
V. Customer Service is having the best processes
VI. Customer Service is about keeping customers
By Bob Pearce Published: 10/17/2007
I. Customer Service starts with your staff
Customer services starts with the staff itself. There would be the best customer services when the
internal customers will be happy and that are employees. If they will be happy and satisfied then
the productivity will be increased through the best customer services.
II. Customer Service is getting to know them
Customer services starts with the staff itself. There should be a systematic sitting plan for not
only staff but also for customers. Customer should be informed through news letter and also
verbally. Tell them necessary things; also tell them that what will be in future by treating them as
a friend. Customers also should be greeted and should develop a trust so that long term relation
ship can be maintained.
III. Customer Service is getting Feedback – and acting on it
It includes that through customer services feed back can be calculated. CRMs call the customers
and may provide comment cards, report cards. Questionnaires can be used to get the feed back of
customers. Through this a company can completely know about their services.
IV. Customer Service is going the extra mile
If the customer’s needs and their requirements will be fulfilled time to time then they will get the
customers in long run. It should see that what you are promising and what you are providing to
your customers. If you are according to their demands then customer services will go in long run
and will be helpful in enhancing the productivity of organizations.
V. Customer Service is having the best processes
It includes that how long the businesses are providing the services of purchasing the product. A
business will be the best process if it would provide the long purchasing time to customers of
24/7. Either it would be online or by keeping open their shops.
VI. Customer Service is about keeping customers
Customer service is to keep the customers loyal with the company. This will be gotten only then
when services will be in such a way that will realize the customers that they are the members of
that company and all the products are beneficent for them.
Marketing Smart: 8 Ways to Attract Customers:
The most important questions to ask yourself and answer are:
How are you unique
What are you selling (today)
By Trudy Van Buskirk Published: 5/14/200
When a person goes in a clean form with the name and date of the event, and asks them for their
permission to write their name, phone number and email address on it. Have spaces for them to
do this. Then pass it or have the sign of him.A business should do something extreme (that suits
your business) and should hold a contest, party or picnic for your customers.
There should be a proper analysis of customers by getting notice in the community by running a
booth at local events. Patronize other small and home-based businesses in the neighborhood so
that can cover each and every aspect. After that service provider should record each time he/she
speaks before delivering any thing to determine that either he is on right point.
Then choose ones where you want to sell or speak all around the world in every town that you
visit. Through this business can study their customers. It’s less expensive to keep a customer
than to get a new one. Should send thank you, birthday and seasonal cards. Offer special sales for
loyal customers.
Then should keep in touch with the media. Become known as an expert in field and should be
available for last minute interviews on the radio or cable television – as a "fill-in" guest to
replace unexpected cancellations. Marketing is about getting potential customers’ attention. Look
for ways to stand out from the "pack" of competitors. Be noticed Remember that customer
satisfaction is the best (and lowest cost) marketing path of all. Listen to what the customers want.
Give it to them. And they’ll reward you with their business.
Making Your Business Have Happier Customers:
If your business has less happy customers than you would like, or you are looking for ways to
make your customer service even better, there are always things you can do to improve. In this
article we look at ways that how can make customers connect with brand, become loyal
customers, and spread the message to their friends.
When you take a very proactive and professional approach to customer service in business, and
then can find that everything starts to work better. Your sales team will be the first to directly
benefit, especially those that are contacting your existing customers. You will also find that your
business will become less of a commodity, and you may also be in a position to charge higher
prices if you would like to go with that approach.
A business can be happier only then when their will be following facts:
Quick Response
Immediate Resolution
Honesty
Proactively Contact Customers
Personal Relationship
By Nazeer Daud Published: 8/30/2008
Quick Response
Customers expect from their service providers to answer the phone quicker, and respond to
emails faster. In many cases efficient management can progress how this should handle, but in
some cases you may have to make a exchange between costs and customer service. Think of the
ways that can deal with queries easier and can response quickly.
Immediate Resolution
Think methods that you could use to determine your customers’ questions on the first call. Also,
when a customer does have to be accepted against another department, make sure the person
passing them on ensures the other department is able to resolve their problem.
Honesty
In customer service, the wrong is that certain problems can’t be resolved. As a result, the person
will be passed from department to department because there is no agent willing to give the bad
news. Tell agents that good customer service doesn’t always involve passing on good news. It
does, on the other hand, involve transient it on in a positive way.
Proactively Contact Customers
When something is wrong with a customer’s account, then there should not any wait to contact
customers. Service providers should proactively contact them and tell them about the reason of
the thing going wrong. Also, if it is done by email then it may means that you save money. Be
polite to your customers, and they should be polite to your business while telling them about any
problem.
Personal Relationship
While everyone in a company might be able to speed on a customer’s account through taking a
peak in different ways, customers like to think they have a personal relationship with someone in
their company. This is the single most effective way to make your customers happier, and to
provide effective and productive results for their business.
Keys to Good Customer Services:
Customer service is an array of activities that are intended to enhance customer
satisfaction. When a business is associated with a service rather than a product, customer
service is of utmost importance. That is, in a service industry, client service is at the
highest priority.
Customer service can be provided by a person or may be provided by means of carefully-planned
self-service. In recent years, industries have started offering their customers with feedback loops,
by way of which the company can obtain an immediate feedback about their services. Attractive
offers, and creative product promotions can draw in customers for a business, but for the
business to retain the customers and achieve customer return, only a good customer service can
help.
Good customer service is about building healthy customer relationships. It is about earning trust
from the customers and catering to their needs and expectations to ensure customer return.
Actions matter more than words. It is a company's duty to act upon its words and keep the
promises it has made to its customers. Let's have a quick look at the keys to good customer
service. But it includes some facts for this purpose and they are:
Listen To Customers
Make Polite Suggestions
Make Promises that you will keep
Take an extra effort
Build an efficient customer Team
By Adrian Thompson Submitted on February 11th, 2002
Listen To Customers
“Listening” skill is a fundamental component of good customer service practices. Listening to
your customers includes, listening to their
Requirements, to their expectations and to their complaints.
It is important to listen to the customer needs and to be helpful to their changing requirements.
Most important is to build trust among your customers. Listen to them with concern and believe
in what they say. Underestimating the words of the customers will lead the business no where
and distrust in the customers shall make them dissatisfied and no business can even visualize to
retain the customers dissatisfied. After offering services to them, it is also important for the
industry to pay attention to their complaints, if any, and find instant solutions.
Make Polite Suggestions
It is important for any business to remember that its customers are its valuable assets. Hurting the
customers will make rude them or disrespecting their opinions can lead to failure in business.
Raymond Chen of Microsoft has a story about a customer who complains that his keyboard is
not working. The way through which customer service executives resolved his complaint stands
as a fine example of good customer service practice of politeness. The customer, who has
complained of his keyboard that was not working, perhaps has not plugged. So the best way to
answer his complaint is to tell him to unplug the keyboard, blow the dirt off and plug it again!
Sometimes you have to take the blame and avoid to pointing out your customers' mistakes. It is
advisable to take complete responsibility of a fault, if any, and take an action to mend it.
Make Promises that you will keep
Making big promises and to keep only a few of them is not a good customer practice. Fulfill the
promises that are made to customers is an example of reliability. To build trust in the minds of
customers needs to stand by what you say. Moreover, make only those promises that can be kept.
Do not make your customers image the ‘impossible’ and then discourage them by not following
what you had assured. False promises break hearts and customers with broken hearts never
return.
Take an extra effort
It is not good to only look at money. The approach is to only make money while turning an ear to
customers otherwise it will prove dangerous to the success of business. Taking a step or two
ahead in caring for your customers is to build respect in their minds. Clients who respect the
ideologies of business are sure to remain with business for a long time. A small extra step will
not be profitable but rest assured that it would result in a long run relationship with customers.
Extra efforts benefit the businesses by satisfying the customers.