Measuring Customer Satisfaction

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Measuring Customer Satisfaction

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100 satisfied customers generate 25 new customers. •For every 1 customer complaint received, 20 other dissatisfied customers do not bother to complain. •Cost of acquiring 1 new customer is 5 times as great as the cost of retaining a satisfied customer. •Customer satisfaction is integral to TQM by establishing

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  1. Measuring Customer Satisfaction Nancy Levin Director – Quality Assurance
  2. Customer Satisfaction: Critical Findings • 100 satisfied customers generate 25 new customers. • For every 1 customer complaint received, 20 other dissatisfied customers do not bother to complain. • Cost of acquiring 1 new customer is 5 times as great as the cost of retaining a satisfied customer. • Customer satisfaction is integral to TQM by establishing Expectations Standards Performance requirements 2
  3. Customer Satisfaction: Measurement Objectives • Determine which customers to survey • Determine critical performance attributes that result in customer satisfaction • Assess company performance • Establish corrective action • Monitor continuous improvement 3
  4. Surveying – Who Are Your Customers? • External customers Buying Influence Supervisors “Bill To” Contact • Internal customers HQ/Field management Staff Inter/Intra departmental teams 4
  5. Determining Critical Performance Attributes • What attributes generate satisfied and dissatisfied customers? ASK • Determined through: Qualitative research techniques • Discussion groups/in-depth interviewing • Conduct research • Use customer vocabulary/terminology when developing preliminary performance attributes Quantitative research techniques • Use information from qualitative research • Develop survey tool • Conduct research • Establish critical performance attributes 5
  6. Universal Performance Attributes • Related to the product Value/price relationship Quality Features Product design Range of products & services Reliability and consistency • Related to service Warranty Delivery Complaint resolution 6
  7. Universal Performance Attributes • Related to purchase Communication Courtesy Convenience Reputation Competence 7
  8. Voice of Experience - Determining Critical Performance Attributes • What do customer’s want from a supplemental staffing company? Speed of response Accuracy of the match Invoice accuracy Innovativeness Ability to resolve problems React with a sense of urgency • What do temporary employees want? To be consistently working Receive accurate paychecks Pay reflects performance Receive performance feedback Be treated with respect 8
  9. Type of Survey: Mail – Electronic - Telephone • Telephone Requires maintenance of accurate telephone numbers Customer skepticism/reluctance to respond Higher response rate than mailed survey Cost in time/labor • Mail Requires maintenance of accurate addresses Highest cost in labor and materials Lowest response rate • Electronic Requires maintenance of accurate e-mail addresses Most cost effective Highest response rate 9
  10. Type of Survey - Voice of Experience • Local Electronic surveys Direct Time (automated time submittal/approval) Mail • National third-party studies Customer – Telephone survey Employee – Mailed survey 10
  11. Design the Survey • Formulate the attributes Wording questions is an art Must be accurate and relevant Cannot lead to incorrect interpretation • Enhance the survey Incorporate open-ended questions • “Please comment on how well we consistently meet your order requirements.” Incorporate closed-ended questions • “On a scale of 1 (poor) to 5 (excellent), please rate us on our ability to consistently meet your order requirements. If rating a 1 or 2 please comment.” • “Do we consistently meet your order requirements? Yes/No If No, please comment.” ALWAYS include overall satisfaction and loyalty questions 11
  12. Design the Survey • Critical: Question placement General questions precede specific questions Respondents: Less thoughtful answers to questions placed at the end of a long list. • Finalize the survey Develop an effective introduction that includes: • Why the survey is being conducted • How the customer was selected • Why the customer should participate 12
  13. Design the Survey – Sample Intro • “Your satisfaction is very important to _____. We are dedicated to continuing to improve our service and to better meet your requirements. Please take a few minutes to give us feedback on how we are doing now and how we can improve in the future.” • “The enclosed survey was mailed to a random sample of our customers. Your participation is important because your reply will represent one of two hundred businesses. We will use the your perspective to develop strategies to improve our products and services. Please complete and return this brief questionnaire by October 15th.” 13
  14. Design the Survey • Balance open and closed-ended questions • Ensure PRECISE wording and measurement scales exist • Record comments verbatim to eliminate bias 14
  15. Conduct the Survey • Frequency Dependent on reaction to previous survey results Quarterly or semi-annually • Sample size Consider total number of customers Determine criteria for selection • Sales level • Spend over specific period of time • Market specific • Customer status: Active/inactive Based upon frequency: Have enough numbers to ensure minimal customer contact within one year 15
  16. Conduct the Survey – Voice of Experience • Frequency National evaluation • Semi-annual employee & customer Local branch evaluation • Customer: 3 X per year • Employee: 2 X per year • Sample size National • 3, 000 customers • 15,000 employees Local branch • Customers with active orders • Assigned employees 16
  17. Analyze Results • Develop simple, yet concise reports • Loyalty index • Trend analysis • Key drivers of overall satisfaction • Overall satisfaction • Problem resolution • Verbatim reports • Just say no to “Analysis Paralysis”! 17
  18. Analyze Results – Sample Reporting Loyalty Index – Likely To Continue Measure 1-2 6% 3 9% 4-5 85% 18
  19. Analyze Results • Determine weakest attributes • Trend analysis • Gap analysis • Develop recommendations for improvement • Determine if a continuous improvement project is needed Root cause analysis of a consistently weak rated attribute Utilize a standard CI model • Define the issue • Establish results • Identify alternative actions • Select breakthrough actions • Develop/implement the schedule • Review progress 19
  20. Report the Results • Report recipients: Who should receive the report? • Report elements Enhancements made since last report Restate objective to be met Overall satisfaction measure Key drivers of overall satisfaction Highest rated attributes Lowest rated attributes Correlate results to complaint, etc. Stack rank when applicable Recommendations for improvement State next survey date 20
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