Presented by-

Shobhit Chandak
 Customer Satisfaction

Satisfaction is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s
perceived performance (or outcome ) with the performance
he expects of it.

Complete customer satisfaction is achieved by understanding

customer requirements And delivering superior quality
goods and services.
 Determinants of Customer
Satisfaction
• Buying decisions based on judgments formed
about the value of marketing offers

• Customer expectations based on past buying

experiences

• Today’s most successful companies raising

expectations and delivering performance to match
 Total Customer Satisfaction

Satisfaction is a function of product perceived

Performance & expectation

•If P is less than E than c is dissatisfied

•If P is equal to E than C is Satisfied
•If P is greater than E than C is delighted

XEROX
•We shall never be 100% satisfied until you are too
•A very satisfied customer is worth 10 times as much
as a satisfied customer
Highly Satisfied Customers

•Stays Buyer Longer

•Buys More
•Talks Favorably about Products
•Offers Ideas
•Costs Less than New Customer
High Performance Business

Stakeholders

•Stakeholders
Processes

•Processes Resources Organisation

•Resources

•Organisation & Corporate Culture

 Customer oriented Organizational chart
CUSTOMERS
TOP-
MANA FRONTLINE PEOPLE
GEMENT
MIDDLE MIDDLE
MANAGEMENT MANAGEMENT

TOP- MAN
FRONTLINE PEOPLE AGEM
ENT
CUSTOMERS

ORGANIZATIONS TO BE DELAYERED TO BE MORE

CLOSELY ALIGNED TO CUSTOMER NEEDS
 Tools for measuring
Customers satisfaction

Complaints and suggestions systems

Customers satisfaction surveys

Ghost shopping

Lost customers analysis

 Customer Delivered Value
• Customer-delivered value is the difference
between total customer value and total customer
cost of a marketing offer

• Customer satisfaction depends on the product’s

performance relative to a buyer’s expectations

• Companies must be customer centered and

deliver superior value to target customers
 Customer
Delivered
Value
Total Total
Customer Customer
value Cost

Product Monetary
value cost

Service Time
Value cost

Personal Energy
value cost
Image Psychic
value cost
 Delivering customer value
And satisfaction

Value chain - The chain of activities

from raw material to the after sale service is
called the value chain.

Customer Relationship Management-

Managing detailed information about individual
customers and carefully managing all customers
‘touch point’ to maximize customer loyality.tools-
datawarehousing & datamining.
Activities in Value chain
• A firm perform certain activities like design,
produce, market, deliver and support product
through which it develops a competitive advantage
and creates shareholder value.
• it is useful to separate the business system into a
series of value-generating activities referred to as
the value chain.
• The goal of these activities is to offer the customer
a level of value that exceeds the cost of the
activities, thereby resulting in a profit margin.
 The primary value chain
activities are:
• Inbound Logistics: the receiving and
warehousing of raw materials, and their
distribution to manufacturing as they are
required.
• Operations: the processes of transforming
inputs into finished products and services.
• Outbound Logistics: the warehousing,
scheduling and distribution of finished
goods.
CONTINUE..

• Marketing & Sales: the identification of

customer needs and the generation of
sales including advertisement and
promotion.
• Service: the support of customers after
the products and services are sold to
them,like installation and training.
 1985 Michael Porter generic value chain model

Firm infrastructure Value chain

Human resource management

ma
rg
in
Technology development
procurement
Support activities

service
Inbound operations Outbound Markg
logistics logistics And

in
sales

rg
Ma
Primary activities
 Cost Advantage and the Value
Chain
Porter identified cost drivers related to
value chain activities:
• Economies of scale-Decreased per unit
cost as output increases.
• Learning
• Capacity utilization
• Linkages among activities
• Interrelationships among business units
Continue..

• Timing of market entry

• Firm's policy of cost or differentiation
• Geographic location
• Institutional factors (regulation, union
activity, taxes, etc.)
 Profitability & Total Quality
Management

TQM is an organisational approach to continuously improving the

quality Of all the processes, products and services

Higher level of quality result in higher level of customer

satisfaction.

A profitable customer is a person,household or company

that over time yields a revenue stream that exceeds by an
acceptable amount the company’s cost stream of attracting,
selling and servicing that customer
 Positive
Expectations of Customers from firm
•You have what they need
•You will solve their problem
•You will care
•You will be professional
•Your products & services are reliable
•You are trustworthy
•Business is valuable to you
•Expect you to be cheerful
•Your prices fair
•You stand behind your products/services
 Negative
Expectations 
You will be unskilled
You don’t care
You have no authority to handle
situation
Your product is poor in quality

Your product is over priced

Your interest is to earn sale
You are grouchy
Their business is not
important to you
THANKS