Satisfaction Index

8/13/2019 Satisfaction Index

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Customer Engagement &

Retention Dr Smitha GirijaAssociate Professor(Marketing)IILM


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Scope

Introduction

Customer Satisfaction

Satisfaction Index

Performance Matrix

Customer Engagement

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Why to Understand CustomerPerception?

Companies can determine the actions required tomeet the customers' needs.

Identify their own strengths and weaknesses, wherethey stand in comparison to their competitors, chartout path future progress and improvement.

Customer satisfaction measurement helps to promotean increased focus on customer outcomes

Stimulate improvements in the work practices andprocesses used within the company.

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What Do Customers Want?

Customer expectations are the

customer-defined attributes of your

product or service

Customer Expectations are of two types- Expressed and Implied.

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TYPES OF CUSTOMEREXPECTATION

Expressed Customer Expectations are those requirements that arewritten down in the contract andagreed upon by both parties

Implied Customer Expectations arenot written or spoken but are the onesthe customer would 'expect' thesupplier to meet nevertheless.

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Expected service are standardsagainst which the manufacturers

performance is comparedPast

experienceWord of

mouthPersonal

needs

Expectedservice

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Expected service The wishful features ofproducts/services

Word ofmouth

Personalneeds

Pastexperience

Expectedservice

Actual / Perceivedservice

Perceived Service are the actual features ofproduct/service experiences

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Satisfaction = __________________________

Ideally it should be 1

When ES > PS customer is dissatisfied

When ES = PS customer is satisfied

When ES < PS customer is delighted

Actual /Perceived Service (PS)

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Expected Service (ES)


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The Customer Satisfaction-Loyalty Relationship (Jones & Sasser, 1995)

0

20

40

60

80

100

1 2 3 4 5

L o y a

l t y

( R e

t e n

t i o n

)

Verydissatisfied Dissatisfied

Neithersatisfiednor dissatisfied

SatisfiedVerySatisfied

Satisfaction

Near Ap os t le

Zone of Defec t ion

Zone o f Indi ffe rence

Zone of Affec t ion

Terroris t

Apos t l e

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Tools to identify customerexpectations

Periodic Contract reviews

Telephonic Conversations

Personal Visits

Warranty Records

Informal discussion

Satisfaction surveys

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Customer Satisfaction Surveys

A Customer satisfactionMeasurement Survey should atleast identify the followingobjectives-

Importance to Customers(Customers' Priorities).Customers' perception ofsupplier's performance.Your performance relative tocustomers' priorities.Priorities for Improvement.

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Customer Satisfaction Index

The Customer Satisfaction Index

represents the overall satisfaction level of

that customer as one number, usually as a

percentage.

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Example of a retail outletAttribute Importance Score Weightage(%)Store Location 9.4 13.70

Range of Merchandise 9.2 13.41

Price Level 9.1 13.27

Quality 8.9 12.97Store Layout 8.5 12.39

Staff helpfulness 8.3 12.10

Parking 7.9 11.52

Staff Appearance 7.3 10.62

Total 68.6

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Satisfaction IndexAttribute Satisfaction

Score(A)Weightage(%)(B)

WeightedScore(A*B/100)

Store Location 9.2 13.70 1.26

Range ofMerchandise

7.9 13.41 1.06

Price Level 8.8 13.27 1.17Quality 9.1 12.97 1.18

Store Layout 7.4 12.39 0.92

Staffhelpfulness

7.7 12.10 0.93

Parking 8.6 11.52 0.99

Staff Appearance

8.5 10.62 0.90

Weighted

Average

8.41

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Satisfaction Index 84.1%

Customer Satisfaction can beexpressed as a single number thattells the supplier where he standstoday.

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Parameter wise SatisfactionIndex plotted over Time

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Performance Matrix: Your performance relative to

customers priorities

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Example Of Retail Store

AttributeQualityRange of MerchandisePrice LevelQualityStore LayoutStaff helpfulness

ParkingStaff Appearance

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Customer engagement constitutes aphilosophy of brand marketingcommunications and customer

interaction, emphasizing greater levelsof collaboration in pre-sales and post-sales phases among buyers and

sellers.

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Engagement Ecosystem

Three Rings of ecosystemDesign cross-touch point customerengagement strategyEmpower other functions or units tooperate in engagement activitiesUse of external partners.


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http://loyaltyandcustomers.com/wp-content/uploads/2010/05/Engagement-marketing.jpg


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THANK YOU

Documents

Satisfaction Index