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Presented By: Rehan Ehsan

THE UNIVERSITY OF LAHORE (LAHORE SCHOOL OF ACCOUNTING & FINANCE) CONTACT: +92 321 8880397 rehan.ehsan89@gmail.com
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TOPIC:

Customer Satisfaction
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What is total quality management ?

Total quality management is the art of managing the whole to achieve excellence. TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantities methods and human resources to improve all the process within the organization and exceed customer needs .
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Customer satisfaction GURU:

ARMAND V. FEIGENBAUM: he argues that total quality control is necessary to achieve productivity, market penetration, and competitive advantage. Quality begins by identifying the customers requirements and ends with a product or service in the hands of a satisfied customer. in addition to customer satisfaction ,some of Feigenbaums quality principles involves:

Genuine management involvement Employee involvement First-line-supervision leadership Company wide quality control

Customer Satisfaction
Customer satisfaction seems simple enough, and yet it is far from simple. Customer satisfaction is not an objective but more of a feeling or attitude. Because customer satisfaction is subjective, it is hard to measure. Although there are certain statistical patterns can be developed to represent customer satisfaction, it is best to remember that peoples opinions and attitudes are subjective by nature.
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Customer loyalty can be sustained only by maintaining a favourable comparison when compared with competitors.

Who is the customer ?

The customer is the end user or the person who consumes the product or gets benefit from the services.

Types of customers:

There are two distinct types of customers:

External Customers Internal Customers

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External Customers:

An external customer can be defined in many ways, such as

The one who uses the product or services The one who purchases the product ore services The one who influences the sale of the product or service.

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An external customers exists outside the organization and generally falls into three categories:
Current customers Prospective customers Lost customers

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Internal customers:

An internal customer is just as important. Every function, whether it be engineering, order processing, or production, has an internal customer.

Each receives a products or services and in exchange provide a product or service. Each person in a process considered a preceding operations.

Each workers goal is to make sure that the quality meets the expectation of the next person, and should satisfy the external customer.
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Inputs from External Customers

Internal Customers

Outputs To External Customer

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Customer Perception of quality:

One of the basic concept of TQM philosophy is continuous process improvement. This concept implies that there is no acceptable Quality level because the customers needs, values, and expectations are constantly changing and becoming more demanding.
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(ASQ) survey on end USERS:

An American Society for Quality (ASQ) surveys on end users perceptions of important factors that influenced purchases showed the following ranking:
Performance Features Service Warranty Price Reputation
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The factors of performance, features, service, and warranty are part of the product or service quality; therefore it is evident that product quality and service are more important than price. Although the information is based on the retail customer, it appears, to some extent, to be true for the commercial customer also.
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Performance:
a performance can be well defined by a phrase FITNESS FOR USE this phrase indicates that the prodssuct and services is ready for customers use at the time of sale.
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Features:

Identifiable features or attributes of a product or service a product or service are:

Psychological Time oriented Contractual Ethical Technological

Features are secondary characteristics of the P&S.

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Services:

This is the customer-value added technique, However it is intangible but the companies that focus more on their services always satisfy their customers and don't give them chance to complaint them for their product.
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Warranty:

The product warranty represents an organizations public promise of a quality product backed up by a guarantee of a customer satisfaction. The warranty encourages customers to buy a service by reducing the risk of the purchase decision, and it generates more sales from existing customers by enhancing loyalty.
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Price:

Today's customer is willing to pay a higher price to obtain the valuable product. In this highly competitive world the definition of the customer is continuously changing that they can even pay high rice for high quality product.
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Reputation:
Total customer satisfaction is based on the entire experience with the organization, not just the product.

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Feedback:

Customer feedback must be continually solicited and monitored. It is not a one time effort,it is an ongoing and active probing of the customers mind.

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It Enables:
FEEDBACK enable organizations to: Discover customers dissatisfaction Discover relative priorities of quality Compare performance with the competition Identify customers need Determine opportunities for improvement
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Ways of collecting Feedback:

There are the following ways through which feedback can be collected: a) Comment Card b) Customer Questionnaire c) Focus Groups d) Toll-Free Telephone Numbers e) Customer Visits f) Report Card g) The Internet h) Employee Feedback i) Mass Communication
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Comment card

A low cost method of obtaining feed back from customers involves a comment card which can be attached to the warranty car and included wit the product at the time of purchase.

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Customer Questionnaire:

A Customer Questionnaire is a popular tool for obtaining opinions and perceptions about an organization and its product and services. Survey may administered by mail or telephone. This survey may ask the customer to GRADE the organization.
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Focus Groups:

Surveying a focus group is a research method used to find out what customers are really thinking. This a very popular method of feedback and can be too expensive.

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Toll-Free telephone Numbers:

Toll free telephone numbers are an effective technique for receiving complaints feedback. Organization can respond more faster and cheaply to the complaint.

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Customers Visits:

Visits to a customers place of a business provides another ay to gather information. Through which you can get directly feedback.

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Report Card:

Another very effective information gathering tool is report card. It is usually sent to each customer on a quarterly basis. In which customer has to grade the company's performance etc

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The Internet and Computers:

Some managers are beginning to monitor discussions that take place on the internet to find out what customers are saying about their product. There re even internet sites which takes customers complaint about product and gives grades on the basis.

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Employee Feedback:

Employees are often an untapped source of information. Although customer research reveals what is happening, employee research reveals why it is happening.

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Mass Customization:

The ultimate in customer satisfaction is giving customers exactly what they want. Mass customization is a direct result of advances made in manufacturing such as flexible manufacturing technologies.
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The American Customer Satisfaction Index:

It is established in 1994. This index measures eight sectors that are: Manufacturing (nondurable) Manufacturing (durable) Retail Transportation etc Finance and insurance Services Pblc administation and govt. E-cmmerce
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Service Quality:

Elements of customer services are: Organization Customer Care Communication Front-line people Leadership
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Customer Retention:

Customer Retention is most powerful and effective than customer satisfaction. Customer Retention represents the activities that produce the necessary customer satisfaction, that creates customers loyalty, which actually improves the bottom line.
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Thank You So Much for Being a Part of My Presentation,

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