Customer Satisfaction Marketing

Presented byShobhit 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

•Resources •Organisation & Corporate Culture

Organisation

Customer oriented Organizational chart CUSTOMERS TOPMANA GEMENT MIDDLE MANAGEMENT FRONTLINE PEOPLE

FRONTLINE PEOPLE MIDDLE MANAGEMENT TOP- MAN 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

Total Customer value

Customer Delivered Value

Total Customer Cost

Product value

Monetary cost

Service Value

Time cost

Personal value

Energy cost

Image value

Psychic 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 ManagementManaging detailed information about individual customers and carefully managing all customers ‘touch point’ to maximize customer loyality.toolsdatawarehousing & 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.

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• 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 Value chain

Firm infrastructure

rg

ma

Human resource management

in

Primary activities

service in

Inbound operations logistics

Outbound Markg logistics And sales

Ma rg

Support activities

Technology development procurement

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

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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