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Your Customers
Barry Berman
W
hile there is a wide body of academic and manager-focused
research on customer satisfaction (particularly SFRVQUAL),
there is significantly less published material on customer
delight. While many academics have made contributions to
the now extensive literature on service quality, there is much less work on ser-
vice excellence and how organizations can achieve delighted customers.'
According to one researcher, "customer delight is a new concept in satisfaction
research."^
There is a common confusion among many practitioners and academics
concerning the conceptual differences between customer satisfaction and cus-
tomer delight. Delight is a construct related to but separate from satisfaction as
it is based on different things (in the same way that dissatisfaction is related to
but distina from satisfaction). While customer satisfaction is generally based on
exceeding one's expectations, customer delight requires that customers receive
a positive surprise that is beyond their expectations. The popularity of
SERVQUAL, a model that argues that satisfaction is based on a customer's assess-
ment of what services were expeaed versus what a customer perceives he or she
has received, may contribute to this confusion. In contrast, customer delight is
typically measured on a scale ranging from outrage to delight or terrible to
delight.
A second factor that further causes confusion is the notion among some
practitioners that customer satisfaction can be measured using such metrics as
delivery time, waiting time, and the presence of advertised goods in sufficient
quantities. While many of these attributes may lead to dissatisfaction if not ful-
filled, they may not generate satisfaaion even if they are fully met. A common
error among managers and academics is the assumption of a linear relationship
among dissatisfaction, satisfaction, and delight. Many firms, in error, measure
customer satisfaction using a Likert-type scale with "not at all satisfied" and
"fully satisfied" as the extremes and equate fully satisfied with delighted.
Consumer Basic crrteria of a product Features and services Attractive requirements are
Perception Wrth a must-be require- that have the potential neither explicitly expressed
ment not being met, a to increase customer nor expected by consumers,
product cannot perform its satisfaction beyond the but are surpnsingly
basic functions. basic product enjoyable if met
Consequences Fulfillment does not lead to Fulfillment leads to Fulfillment leads to delight
of Fulfilling satisfaction. Fulfillment of satisfaction. The higher the Hov^even if delights are not
Requirements musts leads to a state of not level of fulfillment, the higher met. there is no feeling of
dissatisfied. the level of satisfaction. dissatisfaction.
Consequences If unfilled, customers will be If unfulfilled, customers will If unfulfilled, customers will
of Not Fulfilling extremely dissatisfied. be not dissatisfied. be not dissatisfied.
Requirements
voice," 16 percent of respondents stated that tbey desired "revenge" on the com-
pany, 8 percent commented that they have cursed at a customer service repre-
sentative in the past year, and 3 percent pursued legal action. Ninety percent of
the angry customers reported that they shared the story witb a friend.'^ Very
unhappy consumers could become "terrorists," who speak out against a poorly
delivered service at every opportunity.'^
The zone of satisfaction ranges from getting what one expects to meeting
or even marginally exceeding expectations. A firm whose customers are in the
zone of satisfaction has not adequately distinguished itself from its competitors.
According to the 2003 results of tbe American Customer Satisfaction Index, an
annual survey that asks some 70,000 consumers to rank their experiences with
roughly 200 companies, the overall customer satisfaaion score across all indus-
tries was 74 out of 100 as of the beginning of 2004. While this was its highest
level since 1995, we stiil have far to go as the aim is for 100 percent
satisfaction.'^
At the far right end of the customer satisfaction continuum is the zone of
delight. A number of academics and consultants view positive surprise and joy as
the key ingredients in customer delight.'" According to two management con-
sultants, "the key to creating a memorable service . . . is to create conditions and
do things that are unexpected, unpredictable, valuable, memorable, and repro-
ducible."'^ Another analyst uses the term "positively outrageous service" for
customer delight that he refers to as unexpected, random, extraordinary, and
disproportionately positive.^"
A firm's positioning in these zones is based on consumers' expectations.
For example, a camera dealer's having well-trained salespeople assist in a cus-
tomer's choice of a new digital camera may be viewed as being within the zone
of satisfaction for an experienced camera hobbyist, but within tbe zone of
delight for a camera novice. Likewise, satisfier versus delighter requirements for
a car dealer may differ depending on their brand, average price, and customer
expectation sets. For example, Acura, Lexus, and Infiniti routinely provide cus-
tomer pick up, loaner cars, and more attractive waiting room areas than their
Honda, Toyota, and Nissan counterparts. Lastly, a customer's perceptions can
change over time as a result of new competitors, past experiences that can
change their expectations, and new technologies such as the Web, wbich pro-
vides 24/7 ordering capability and e-mail access.
E<
2
Satisfaction Del ght
o
The arrow from the no prior expectation column to the existing expeaa-
tion column indicates that, over time, consumers form expectations through
their experiences.
This model shows that:
• The "mirror image" of customer delight is customer outrage. Likewise, the
mirror image of dissatisfaction is satisfaaion.
• Due to a consumer's experience with a product or service, he or she will
develop expectations when none existed in prior purchases. Thus, there
is continually movement from the no prior expectations to the existing
expectation columns. This movement from no expectations to expecta-
tions indicates the difficulty in developing a marketing strategy to contin-
ually delight consumers.
• Different market segments may have different expectation sets. The
schema for a luxury car buyer's dealer showroom facility may include an
elaborate waiting room equipped with an espresso machine, fine pastry,
and current magazines. This would not be in the expectation set for an
economy car buyer. Likewise, a plumber purchasing a kitchen faucet has
a different set of expectations concerning the need for directions and cus-
tomer support than a do-it-yourselfer. A small organizational consumer
has different expectations and needs for computer software support than
a large firm with a separate IT department.
• Consumers' expectation sets continuously change due to competition, the
economy, and their experiences. Increasingly, car dealers have begun to
promote extensive inspection programs, as well as extended warranties
on selected used cars. While this service was initially outside a typical
consumer's schema, many consumers now expect these programs.
Figure 4 outlines some attributes that distinguish between satisfactory
and delightful experiences. The attributes are grouped by good/service charac-
teristics (performance versus customer expectations, value, ease of use,
good/service variety, bundled services included with product, and warranty);
good/service purchase experience (personnel and store experience and presence
of novelty and entertainment); and after-sale support (availability of emergency
service, post-purchase customer support, and service recovery availability).
In the satisfactory experience in Figure 4, the product's performance,
value, variety, purchase experience, and after sale-support are each within a
buyer's expectation set. The overall purchase in terms of the good/service char-
acteristic, purchase experience, and after-sales support are each positive, but fit
within the buyer's existing expectations. In contrast, the delightful experiences
are outside the buyer's expectation set. Most consumers do not anticipate
extremely high value, mass customization, extensive bundled services, a lifetime
warranty, empathetic and courteous personnel, and extensive service recovery
efforts. Identifying areas of no expectations is an important stage in a firm's pur-
suing a strategy of customer delight. It is important to note that often the nature
of the delightful experience is not simply a linear extension of the satisfactory
Ease of Use Product can be used by most Product is extremely user- friendly
consumers after stud/ing owners Support personnel are highly
manual, Support personnel are trained and enthusiastic.
competent.
Good/Service Variety Good, better best price points sold. Exceptional good/service variety
due to mass customization.
Bundled Services Included with Bundled services are commen- Bundled services are extensive and
Product surate with price level and are not expected by consumers
competitive offerings. nor offered by competitive brands
or vendors. These may include
need assessment, assembly, training,
troubleshooting, and warranty
Good/Service
Purchase Experience
Personnel and Store Experience Not memorable, self-service. Especially memorable due to
courtesy empathy, and special
efforts and high levels of knowledge
of personnel.
Presence of Novelty and Little novelty and retail High level of novelty and
Entertainment environment entertainment present.
After-Sale Support
Availability of Emergency Service Limited emergency service Full emergency service is available
availability at no additional cost
Service Recovery Availability Service recovery period is similar Extensive service recovery efforts
, ,., , to competition. including free replacement product.
Satisfactory Delightful
Experience Experience
Digital Camera has a good Camera will accept customers current film-based
Camera performance-to-price ratio in lens and flash accessories; 24-hour customer support
terms of combination of size, hotline staffed by experienced photographers
weight, and lens quality. knowledgeable about camera features.
House Contractor arranges for Contractor knows how to maximize usable space
Renovation necessary permits; one-year and is creative in designing room layout; contractor
warranty provided on all arranges for cleaning service so that home is as clean
material and labor after renovation as before; five-year warranty
provided on all material and labor.
Supermarket Produce and meats are of good Assistance in car loading; free delivery for out-of-
quality; supermarket is clean; stock goods; menu suggestions for sale and seasonal
checkout lines are reasonable. items offered on the Web and in-store; dietician
available for meal planning for special dietary needs
(i.e., low cholesterol, low salt low sugar); purchases
vegetables and fruits from local farms to maximize
freshness.
Organizational Vendor ascertains software Vendor truly understands client's business and
Software needs and works with IT software needs; software is matched to customer's
personnel in getting software current and proposed equipment; soflware interface
installed; vendor has on-site is designed to be similar to present software to
personnel available until minimize training needs; troubleshooting is performed
software is fully operational. prior to system being installed; customer's personnel
are trained at times that do not interfere with peak
sales times,
Vehicle Appointment for recall can be Dealer calls customer to explain nature of recall
Product made within 3 days of receipt of and offers to pick up and deliver recalled vehicle at
Recall recall notice; vehicle ready on customer's home or office; dealer arranges for car
time; final consumer is not wash and gasoline fili-up of recalled car; letter sent
charged for recall. to customer apologizing for any inconvenience.
The low levels of loyalty among some satisfied consumers have been
referred to as the "satisfaction trap."^^ Managers unfamiliar with the satisfaaion
trap wrongly assume that satisfied customers have high levels of customer loy-
alty. Since satisfaction alone does not translate linearly into outcomes such as
loyalty, businesses must seek to achieve total customer satisfaction and even
delight to achieve the kind of loyalty they desire." Another potential trap can be
overcome by managers understanding the difference between "false loyalty" due
to loyalty promotion programs or high switching costs and "real loyalty" based
on delight.
The impact of increased loyalty on profits can be quite high. In a heavily
quoted study, researchers estimate that a 5 percent increase in customer loyalty
can produce profit increases from 25 percent to 85 percent.^^ This is due to the
fact that loyal customers buy larger quantities more often. According to research
cited in the McKinsey Quarterly, instead of defecting to another brand, many con-
sumers may simply reduce their purchases. At one retail bank studied, the 5
percent of checking account customers who defect each year take with them 10
percent of its checking accounts and 3 percent of its balances. However, the 35
percent of customers who reduce their balances substantially during the course
of the year cost the bank no less than 24 percent of its total balances.'^
In addition to customer delight driving loyalty, delighted customers
provide feedback on their positive experiences to others. According to one
researcher, delighted consumers report their experiences on the Internet and
provide full-sized samples to friends. Through these aaions, an apostle can
generate the same lifetime value of as many as 11 customers who are merely
loyal.'*^ Similarly, the J.D. Power study of United Kingdom electricity consumers
found that 61 percent of delighted customers were willing to recommend the
company to friends and family as compared with 45 percent of customers who
were merely pleased with the service."*'
Other potential positive consequences of delight include lower costs
due to increased word-of-mouth promotion, lower selling and advertising costs,
lower customer acquisition costs, higher revenues due to higher initial and
repeat sales, and long-term strategic advantages due to increased brand equity
and increased ability to withstand new entrants (see Eigure 6).
A firm needs to quantify the value of the potential benefits to determine
the cost effectiveness of its specific customer delight program. Aside from a
cost/benefit analysis, commonly used metrics that connect customer service
quality to finandals include return on quality, customer lifetime value analysis,
cost of customer acquisition, and customer equity.
Lower Costs
Increased word-of-mouth Delighted customers are more likely to tell others about their experiences
promotion due to the surprise and joy elements associated with the transaction and
the good/service.
Lower selling and advertising costs Positive word-of-mouth and a high proportion of repeat customers can
lower promotional costs.
customer acquisition costs Lov^er promotional expenses and higher brand and store loyalty may lower
customer acquisition costs. Customer acquisition costs can also be reduced
through fewer customer defections.
Higher Revenues
Higher initial and repeat sales Delighted customers may increase the degree of brand and store loyalty.
Increases in custonner loyalty can have a major impact on company
profrtability since satisfied customers may buy a firm's products more
often and in greater quantities.
Long-Term
Strategic Advantages
Increased brand equity A firm's brand equity can be increased as a result of its high proportion of
delighted customers.
Increased ability to withstand new The elennents that cause delight can be a competitive advantage or a
entrants barrier to entry if not equally accessible to current and potential
competitors.
competitors); complaints; and won/lost and why surveys (of recently gained or
defected consumers).^'
In analyzing this data, firms need to recognize that consumers may have
a difficult time in determining what constitutes delight to them, as these are
features and attributes that a consumer does not expect. Several researchers
recommend asking the following questions to determine especially attractive
requirements that would otherwise be hidden:*^^
• Which associations does the customer make when using the product?
• Which problem/defects/complaints does the customer associate with the
product's use?
• Which criteria does the customer take into consideration when buying
the product?
• Which new features or services would better meet the expectations of
the customer? What would the customer change in the product?
An additional benefit of listening to customers is the increased consumer
involvement in the purchase process through an ongoing activity. This increased
involvement may have an affect on consumers' emotional responses.
At FedEx, the company must meet a given service quality indicator (SQI) score
for employees to receive semiannual bonuses.^^
... understand the importance of surprise and joy in differentiating delight from
satisfaction and outrage?
... distinguish among customer perceptions of must-be, satisfien and attractive
requirements?
... identify the domains where consumers have expectations?
... identify the domains where consumers do not have expectations?
... study how customer expectation sets differ among its major market segments?
... determine how customer expectation sets change overtime?
... understand the difficulties in continually delighting customers?
... develop a long-term program to continually delight consumers through adding
additional elements where consumers do not have expectations?
... compute the costs and benefits of delighting customers (through such metrics as
retum on quality, customer lifetime value analysis, costs of customer acquisrtion. and
customer equity)?
... evaluate alternative customer delight delivery strategies?
... examine how other companies delight customers?
... place responsibility for customer delight under a director of customer satisfaction, vice
president of quality, or similar title?
... continuously monitor customer delight levels?
Notes
1. R. Johnston, "Towards a Better Understanding of Service Excellence," Managing Service
Quality, 14/2-3 (2004): 129-133.
2. R.L. Oliver, Satisfaction: A Behavioral Perspeaive on the Consumer {New York, NY: McGraw-Hill,
1997).
3. "Delight Moves Customer Response to Next Level" Business Wire. January 3, 2003, p. 52.
4. E.R. Cadotte and N. Tlirgeon, "Dissatisfiers and Satisfiers: Suggestions for Consumer Com-
plaints and Compliments," Joumal of Consumer Satisfaction, 1 {1988): 74-79.
5. Oliver, op. dt.
6. B. Schneider and D.E. Bowen, "Understanding Customer Delight and Outrage," Sloan Man-
agement Review, 41/1 {Fall 1999): 35-45.
7. RM. Andrews and S.B. Withey, "Developing Measures of Perceived Life Quality: Results
from Several National Surveys," Social Indicators Research, 1 (May 1974): 1-26.
8. R. Johnston, "The Effect of Intensity of Dissatisfaction on Complaining Behavior," Journal of
Consumer Satisfaction, Dissatisfaction, and Complaining Behavior. 1 1 ( 1 9 9 8 ) : 69-77.
9. N. Kano, "Attractive Quality and Must-Quality," Journal of the Japanese Society for Quality
Control. 14/2 (April 1984): 39-48.
10. K. Matzler, H.H. Hinterhuber. F. Bailom, and E. Sauerwein, "How to Delight Your
Customers," Journal of Product d Brand Management, 5/2 (1996): 6-18.
11. K.C. Tan and TA. Pawitra, "Integrating SERVQUAL and Kano's Model into QFD for Service
Excellence Development," Managing Sen-ice Quality, 11/6 (2001): 418-430.
12. Kano, op. cil.; R.T. Rust and R.L. Oliver, "Should We Delight the Customer?" Journal of the
Academy of Marketing Science. 28/1 (2000): 86-94.
13. Tan and Pawitra, op. cit.
14. Schneider and Bowen, op. cit.
15. J. Spencer, "Cases of 'Customer Rage' Mount as Bad Service Prompts Venting," Wall Street
Journal. September 17, 2003, p. D4.
16. J.L. Heskett, T.O. Jones, G.W. Loveman, W.E. Sasser, Jr., and L.A. Schlesinger, 'Putting the
Service-Profit Chain to Work," Harvard Business Review, 72/2 (March/April 1994): 164-174.
17. J. Spencer and R. Albergotti, "Customer Satisfaction Index Climbs," Wall Street Journal,
February 18, 2004, p. D2.
18. R.L. Oliver, R.T. Rust, and S. Varki, "Customer Delight: Foundations, Findings, and Manage-
rial Insight," Journal of Retailing. 73/3 (1997): 311-336; Oliver, op. cit.; P. Gwynne, "Surprise
as a Marketing Tool: Customer Delight Might Not Always Lead lo Long-Term Satisfaaion
and Loyalty," MIT Sloan Management Review, 44/1 (Fall 2002): 15; C.H. Chandler, "Quality:
Beyond Customer Satisfaction," Quality Progress, 22 (February 1989): 72-94.
19. CR. Bell and R. Zemke, "Service Magic," Executive Excellence. 20 (May 2003): 13.
20. T.S. Gross, Positively Outrageous Service (New York: NY: Waraer Books, 1991).
21. R. Plutchik, Emotion: A Psychoevolutionary Synthesis (New York: NY: Harper & Row, 1980).
22. R.A. Westbrook and R.L. Oliver, "The Dimensionality of Consumption Emotion Patterns and
Consumer Satisfaction," Journal of Consumer Research. 18 (June 1991): 84-91; R.L. Oliver and
R.A. Westbrook, "Profiles of Consumer Emotions and Satisfaction in Ownership and Usage,"
Journal of Consumer Satisfaction. Dissatisfaction, and Complaining Behavior, 6 (1993): 12-27.
23. Oliver, op. cit.
24. Westbrook and Oliver, op. cit.
25. Oliver and Westbrook, op. dt.
26. Westbrook and Oliver, op dt.
27. A. Kumar, "Customer Delight: Creating and Maintaining Competitive Advantage," unpub-
lished doctoral dissertation, Indiana University, 1996; A. Kumar, R.W. Olshavsky, and M.F.
King, "Exploring Alternative Antecedents of Customer Delight," Journal of Consumer Satisfac-
tion, Dissatisfaction, and Complaining Behavior, 14 (2001): 14-26.
28. M.J. Arnold, K.E. Reynolds, N. Ponder, and J.E. Lueg, "Customer Delight in a Retail Con-
text: Investigating Delightful and Terrible Shopping Experiences," Journal of Business Research.
58 (2005): 1132-1145; H.V. Verma, "Customer Outrage and \iQ\\%\\X." Journal of Services
Research, 3/1 (April-September 2003): 119-133.
29. Oliver, Rust, and Varki, op. cit.
30. Oliver, op. cit.
31. K.P. Coyne, "Beyond Service Fads—Meaningful Strategies for the Real World," Sloan Man-
agement Review, 30/4 (Summer 1989): 69-76; A.S. Dick and K. Basu, "Customer Loyalty:
Toward an Integrated Conceptual Framework," Journal of the Academy of Marketing Science. 22
(1994): 99-113; T.A. Oiiva, R.L. Oliver, and I.C. Macmillan, "A Catastrophe Model for Devel-
oping Service Satisfaction Strategies," Journal of Marketing. 56 (July 1992): 83-98.
32. A.E. Anderson and V. Mittal, "The Satisfaction-Profit Chain: How Solid Are the Links?"
working paper. The National Quality Research Center, University of Michigan Business
School, 1997.
33. P.V. Ngobo, "Decreasing Returns in Customer Loyalty: Does It Really Matter to Delight the
Customers?" Advances in Consumer Research, 26 (1999): 469-476.
34. T. Keiningham and T. Vavra, The Customer Delight Principle (New York: NY: McGraw-Hill,
2001).
35. K. Ockenden, "See the Delight," Utility Week. March 4, 2005, p. 24.
36. F.R Reichheld, "Learning from Customer Defections," Harvard Business Review. 74/2
{March/April 1996): 56-69.
37. Schneider and Bowen, op. cit.
38. F.F. Reichheld and W.E. Sasser, Jr., "Zero Defeaions: Quality Comes to Services," Harvard
Business Review, 68/5 {September/October 1990): 105-111.
39. "Beyond Customer Retention," McKinsey Quarterly Chart Foais Newsletter (July 2004).
40. J.L. Heskett, "Beyond Customer Loyalty," Managing Service Quality, 12/6 (2002); 355-357.
41. Ockenden, op. dt.
42. Verma, op. cit.
43. Arnold et al., op. cit.
44. Ibid.
45. TO. Jones and V^.E. Sasser, Jr., "Why Satisfied Customers Defect," Harvard Business Review,
73 (November-December 1995): 88-99.
46. R Hemp, "My Week at the Ritz as a Room-Service Waiter," Harvard Business Review. 80/6
(June 2002): 4-11.
47. G.M. Heil, "How to Delight Customers and Win Their Loyalty," CMA Magazine, 69/4 (May
1995): 42-44.
48. Bell and Zemke, op. dt.
49. N. Hatch and E. Schell, "Delight Your Customers," Target Marketing, 25 (April 2002): 32-36.
50. Heil, op. cit.
51. "American Girl Place: A Lesson in Niche Marketing: Affordable Dolls Offer Gateway to
Seemingly Endless Add-on Products and Services," Photo Marketing, 11 (November 2002):
25-26.
52. Y. Moon and J. Quelch, "Starbucks: Delivering Customer Service," Harvard Business School,
Case #9-504-016, revised February 3, 2004.
53. R.C. Ford, C.P. Heaton, and S.W. Brown, "Delivering Excellent Service: Lessons from the
Best Firms," California Management Review. 44/1 (Fall 2001): 39-56.
54. "Customer Service Insights: Novel Initiatives to Delight Customers," Business Wire, April 2,
2003.
55. P. Donovan and T. Samler, "Delighting Customers: The Ten-Step Approach to Building a
Customer-Driven Organization," Managing Service Quality, 4/6 (1994): 38-43.
56. Ibid.
57. M.S. Garver and G.B. Gagnon, "Seven Keys to Improving Customer Satisfaaion Programs,"
Business Horizons, 45/5 (September/October 2002): 35-42.
58. Donovan and Samler, op. cit.
59. Garver and Gagnon, op. dt.
60. Jones and Sasser, op. dt.
61. Garver and Gagnon, op. cit.
62. S. Shiba, A. Graham, and D. Walden, A New American TQM: Four Practical Revolutions in Man-
agement (Portland, OR: Productivity Press, 1993).
63. Arnold et al., op. dt.
64. Jones and Sasser, op. dt.
65. "Empowering Employees to Delight Customers at FedEx," Management Development Review,
10/3 (October 1997): 112-113.
66. Ibid.
67. A. Taylor, "Top Box: Rediscovering Customer Satisfaction." Business Horizons, 46/5 (Septem-
ber/October 2003): 2-14.
68. "Empowering Employees to Delight Customers at FedEx," op. dt; Rust and Oliver, op. cit.
69. Rust and Oliver, op. cit.
70. Oliver, Rust, and Varki, op. dt.
71. K. Stewart, "An Exploration of Customer Exit in Retail Banking," Intemational Joumai of
Bank Marketing, 16/1 (1998): 6-14.
72. Rust and Oliver, op. dt.