Measuring Customer Satisfaction

SATISFACTION CUSTOMER

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.

Learning Objectives

Think of a product or service you weren’t satisfied with. Assuming you have ceased your relationship with

the product or service. How much has that company lost in terms of sales?

Let’s 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?

Why does BT track the attitude, satisfaction, engagement & buying patterns of customers?

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.

…customers drive the performance of a successful business.

It is important because…

The consequences of not measuring customer satisfaction are immeasurable especially as online social media like YouTube, Facebook, Twitter, etc. give users the power to

spread good or bad publicity about brands quickly.

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.

Lessons to be learnt from the Gap logo debacle.

…means to determine how well a firm is meeting the needs of customers.

Measuring customer satisfaction is a…

…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

…provide answers to marketing problems

faced by a firm.

Measuring customer satisfaction can…

…create a customer -centred culture.

Measuring customer satisfaction helps to…

…can enable the firm build strong relationships

with customers.

Insights from customer satisfaction measurements…

Source: planpersonnel.co.uk

…shows marketing decisions are guided

by analytics.

Measuring customer satisfaction…

Source: successfulworkplace.com

Learning Objectives

Customer Response to

…product & service

offerings.

Customer response to…

In what ways can BT assess customer response to

its fixed phone services?

BT provides fixed phone, broadband, TV and network IT services.

Techniques of Assessing Customer Response

Sales level.

Customer complaints.

Customer follow-up.

Customer satisfaction surveys.

Mystery shopping.

Loyalty card.

Customer Follow-up Sales Level Customer Complaint Satisfaction Survey

Advantages

Customer Follow-up Sales Level Customer Complaint Satisfaction Survey

Disadvantages

Sales level.

Customer follow-up.

Loyalty card.

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

…sales level to assess customer response. Merits of using…

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.

…sales level to assess customer response. Demerits of using…

Strong sales doesn’t

mean satisfied customers.

…doesn’t tell which aspects of

the service or product appeal to customers.

Sales level…

Sales level.

Customer follow-up.

Mystery shopping.

Loyalty card.

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

Returned goods

Source: kellaway.co.uk

Source: gresswell.co.uk

…provide customers the opportunities

to do so.

Organisations that treasure the value of customer complaints…

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.

…customer complaints to assess customer response. Merits of using…

Source: i.zdnet.com

Customers volunteer to submit ideas. Firm obtains many ideas at

"little or no cost".

Customers complaints can specify aspects of the product or service that

need improvement. Source: inc.com

Customers complaints can serve as a platform for constructive dialogue between customers and the firm.

Relationship building. Source: blog.acteva.com

Source: gresswell.co.uk

Complaints are effective in monitoring customer satisfaction on an on-going basis.

…customer complaints to assess customer response. Demerits of using…

I get fewer complaints from my customers. Is it an indicator of high

customer satisfaction?

I get fewer complaints from my customers. Is it an indicator of high

customer satisfaction?

NO. Why?

…require investment in complaint management

systems (e.g. people, equipment, procedures & analytics).

Excessive customer complaints…

Sales level.

Customer follow-up.

Mystery shopping.

Loyalty card.

E.g. After sales follow-up and

customer query follow-up.

Source: zoho.com

The goal is to extract satisfaction

from customers.

Source: businessfinancestore.com

…customer follow-up to assess customer response. Merits of using…

It provides a personalised approach to customer care.

Source: depts.ttu.edu

…hence, the customer feels valued.

It offers the opportunity to learn more about the

needs of customers.

It could offer new leads

to products or services the customer

may like or dislike.

Source: jcostaphotos.com

It could serve as a platform for the firm to build "lasting" relationships with customers; hence retaining customers.

…customer follow-up to assess customer response. Demerits of using…

It requires investment in customer relationship management systems

(e.g. people, equipment, procedures, database & analytics).

Sales level.

Customer follow-up.

Mystery shopping.

Loyalty card.

Customer satisfaction survey

Source: profitabletotrain.com

…survey to assess customer response. Merits of using…

…offers the flexibility to measure customer satisfaction on a range

of product or service issues.

Survey…

The duration of customer satisfaction surveys can last between

60seconds to 60minutes.

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

…survey to assess customer response. Demerits of using…

…provide superficial answers to questions like "how & why are they satisfied".

Surveys…

Sales level.

Customer follow-up.

Mystery shopping.

Loyalty card.

Source: conferoinc.com

Effective in monitoring services provided to customers.

Effective in monitoring staff performance.

Sales level.

Customer follow-up.

Mystery shopping.

Loyalty card.

Loyalty cards

…loyalty card to assess customer response. Merits of using…

…loyalty card to assess customer response. Demerits of using…

Learning Objectives

How to design a customer satisfaction survey (questionnaire).

Decide the objectives of the customer satisfaction survey.

Step One

What specifically do I want to measure?

All or most customer satisfaction surveys seek to…

…determine the state of customer satisfaction or dissatisfaction.

…determine service or product features that affect satisfaction or dissatisfaction.

…determine links between customer characteristics & satisfaction levels.

…determine links between customer characteristics & satisfaction levels to specific product or service features.

…determine the type of questions to include in

your questionnaire.

Having specific objectives is so important as they …

Write down the questions to ask your

respondents.

Step Two

What type of questions

to ask?

Open-ended Questions Close-ended Questions

Rating scales questions.

Multiple-choice questions.

Dichotomous questions.

How would you rate the attention your lecturers provide to you?

Excellent

Very good

Very poor

Close-ended Question: Rating scale

How satisfied are you with Rim’s lectures?

Very satisfied

Satisfied

Neutral

Unsatisfied

Very unsatisfied

1 2 3 4 5

How satisfied are you with Rim’s lectures? Very unsatisfied Very satisfied

5-point scale

2 4 6 7 8

How important that you can choose the date and time to attend lectures?

Not very important Very important

10 1 5 9 3

10-point scale

Which of the following features of Rim’s lectures do you most like? Choose up to three.

She’s 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

Close-ended Question: Multiple-choice

(other)________________________

Close-ended Questions: Dichotomous

Would you recommend our product or service to friends? Yes

Please enter your gender: Female

Did you attend all the 10 lessons for Marketing Intelligence held between Oct. 2012 and Dec. 2012?

Why are you "very unsatisfied" with Rim's lectures?

Open-ended Question

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…

Source: sn.curtin.edu.au

Use suitable headings

Overall Layout

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.

Survey Title

…surveymonkey.com and Adobe Forms to

design surveys.

You can also use tools or platforms like…

Learning Objectives

What makes a successful survey?

Criteria for Reviewing the Success of A Completed Survey

Response rate.

Question completion rate.

Reliability and validity of findings.

Degree to which survey findings solve “the problem”.

Response rate.

Was the survey completed within the set time-frame?

Source: isitthattime.com

If not; why?

Response rate.

Was it completed within budget? Was the survey impacted by limited funding?

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?

Response rate.

The number of questions that ought to have been answered.

Response rate.

…reliable & valid findings.

Regardless whether a survey is completed on time, within budget or has a high response rate,

success is ultimately judged by…

Internal validity

External validity

Construct validity

Reliability

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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