Unit Iii

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Customer satisfaction is one of the main objectives of any

organization. Every organization tries to know the customer satisfaction


about their products. So a study on customer satisfaction helps the
organization as well as me to gain a vast knowledge over the real world
tastes and preferences of customer. Whether the buyer is satisfied after
purchase depends on the offers performance in relation to the buyers
expectations. In general satisfaction is a persons feelings of pleasure or
disappointment resulting from comparing a products perceived
performance in relation to his or her expectations.

As this definition makes clear, satisfaction is a function of perceived


performance and expectations. If the performance falls short of
expectations, the customer is dissatisfied. If the performance matches the
expectations, the customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied or delighted. Many
companies are aiming for high satisfaction because customers who are
just satisfied still find it easy to switch when a better offer comes along.
Those who are highly satisfied are much less ready to switch. High
satisfaction or delight creates an emotional bond with the brand, not just
a rational preference. The result is high customer loyalty. Xeroxs senior
management believes that a very satisfied or delighted customer is worth
10 times as much to the company as a satisfied customer. A very
satisfied customer is likely to stay with Xerox many more years and buy
more than a satisfied customer will. How do buyers form their
expectations? From past buying experience, friends and associates advice
and marketers and competitors information and promises. If marketers
raise expectations too high, the buyer is likely to be disappointed, For
example, Holiday Inn ran a campaign a few years ago called No
Surprises Yet hotel guests still encountered a host of problems, and
Holiday Inn had to withdraw the campaign. However, if the company sets
expectations too low, it wont attract enough buyers (although it will
satisfy those who do buy).
Some of todays most successful companies are raising expectations
and delivering performances to match. These companies are aiming for
TCS- total customer satisfaction. Xerox for example, guarantees total
satisfaction and will replace at its expense any dissatisfied customers
equipment within a period of three years after purchase. Cigna advertises
Well never be 100% satisfied until you are, too. And one of Hondas ads
says: One reason our customers are so satisfied is that we arent.
Nissan invites potential infinity buyers to drop in for a guest drive (not a
test drive) because the Japanese word for customer is honored guest.
Look at what high satisfaction can do

Saturn In the late 1980s, Saturn (General Motors newest car


division) changed the whole buyer seller relationship with a New Deal
for car buyers. There would be a fixed price (none of the traditional
haggling); a 30-day guarantee or money back; salespeople on salary, not
on commission (none of the traditional hard sell). Once a sale is made,
the sales staffs surround the new owner for commemorative photo, with
everyone smiling. The companys fifth anniversary celebration at the
Tennessee headquarters was attended by more than 4000 Saturn from all
across the country. Said Saturns president: Saturn is more than a car
its a whole new way of doing things, of working with our customers and
with one another.

A customers decision to be loyal or to defect is the sum of many small


encounters with the company. Consulting firm Forum Corporation says
that in order for all these small encounters to add up to customer loyalty,
companies need to create a branded customer experience. Heres how
Canadian Pacific Hotels, a chain with 27 properties, did just that.

Assuring Customer Satisfaction:

"Those who enter to buy, support me. Those who come to flatter, please
me. Those who complain, teach me how I may please others so that more
will come. Only those who hurt me are displeased but do not complain.
They refuse me permission to correct my errors and thus improve my
service." - Marshall Field.

The attitude of the professional is summed up in this statement. It


establishes the customer as the person to whom you are responsible.
Customers support you; therefore, they deserve VIP treatment.

When your customers are happy, you are happy. When they complain,
you are unhappy, but you examine the complaint calmly and see it as an
opportunity to learn as well as satisfy their needs. The quote echoes the
fear that customers will not vocalize their dissatisfaction, but instead take
their business elsewhere.

There's another quote that's even more important to salespeople and


companies immediately upon making a sale--

"The Sale Begins When the Customer Says...Yes."

In the old days, It used to be, "The Sale Begins When the Customer
Says...NO," but that's a totally Inappropriate attitude to embrace in
today's customer-driven business environment.

Keeping Your Customers Happy

Since your first concern is customer satisfaction you should be


aware of some emotional stumbling blocks in your path: selective
perception, user error and buyer's remorse.

Selective perception is the process in which a person sees only


selected details from the entire picture. This attention to detail is
sometimes petty. For example, a customer may have a new copying
machine that works like a charm, but he is irritated by the sound of the
motor. He focuses only on what is wrong rather than what is right.
This occurs because buyers expect their purchases to be perfect.
Regardless of the purchase price, they figure that for what they spent,
they deserve perfection. When you encounter someone who practices
selective perception, evaluate the situation to determine if the complaint
is reasonable or exaggerated. If it is exaggerated, try to resolve the
problem by pointing out benefits and features that compensate. Put the
negative detail in a different perspective for your client so that it becomes
one small part of the total picture.

Many sales involve the installation of a new system or piece of


equipment, and the buyer or their employees must be trained to use it.
Their successful use of the equipment depends upon the effectiveness of
the training, and it is imperative that the salesperson follows through
after the training period to make sure the client uses the purchase
properly. It is not uncommon for people to forget 75 percent of what they
hear after two days. This can cause "user error", which will significantly
affect the outcome of your test and may prevent your client from reaching
his success criteria.

Often a client will be unhappy about a purchase and not realize that
it is due to improper operation. The more complex something is, the more
training it requires using it properly. In the interest of implementing the
product quickly, users may settle for incomplete training or become
sloppy in their application of good training. In any case, look for user
error whenever a success criterion is not reached.

"Buyer's remorse" refers to the regret that a buyer feels after


making a purchase. It could be caused by selective perception, user error,
or the client's error. Whatever the reason, the full benefits of the product
are not realized. Buyer's remorse can also be caused by the economics of
the purchase: until the benefits prove themselves to be cost effective, a
buyer regrets having made the purchase. It is the responsibility of the
salesperson to assuage these fears by assuring the client that his
investment is wise and sound. Reiterate some of the selling points that
convinced him to buy it originally, present data, and put him at ease.

Handling Customer Complaints

Whether your customer's complaint is legitimate or not, follow it up with a


service call. Whenever possible, do it personally instead of sending
someone from the customer service department. It provides the personal
service that your customer appreciates and it may obviate the need for a
technician or serviceman to call. As an alternative, both of you can go
together to handle customer complaints. Keep the following guidelines in
mind:

1. Don't procrastinate making the call.

Often the problem is not as serious as it sounds. Some customers "read


the riot act" when they call about a complaint. A delay in responding will
only irritate your client more.

2. Admit mistakes and apologize.

Just because you made the sale does not mean you can become
defensive about your company, product or service. Even the most
reputable companies make mistakes and have problems with their
products. You may want to restate the customer's complaint to show that
you are listening and have an understanding of the problem.

3. Show compassion for your customer.

Whether the complaint proves to be true or false, show your customer


that you are concerned and will investigate the problem immediately.
Help the customer calm down by saying, "I can understand why you feel
the way you do."
4. Actively listen to your customer's complaint.

Talking will make him feel less anxious about it. Let your customer "vent"
his feelings before you react to the situation. Be sympathetic and
encourage the customer to "blow up." Afterward, he'll feel better; this
means he'll be in a better frame of mind.

5. Don't pass the buck to your company or someone else within it.

This may take the blame off you, but it undermines the integrity and
organization of the company, and your customer will lose confidence in
your firm.

Maintaining Customer Satisfaction

The philosophy behind maintaining your customers is simple; now that


you have them, maintain them. When you consider the amount of time
and money invested in them, you cannot afford to lose them. This
investment goes beyond your personal expenditures. It also includes your
firm's advertising and marketing costs to reach that particular market
segment. Your customers, therefore, should be treated as if the life of
your business depended on them - which it does!

15 Ways to Keep Your Customer Satisfied

1. Show them that you think of them.

Send them helpful newspaper clippings or articles, cartoons related to


their business and "Here's an idea I thought you'd enjoy" notes. Send
your clients Christmas/New Year's cards, birthday cards, and thank you
notes.

2. Drop by to show them new products and brochures and offer additional
services.
Always make an appointment before making your call! Respect your
clients' time as you do your own.

3. Offer a sample gift to enhance the use of your product.

See how they are utilizing your product or service and suggest other ways
that they can benefit from it. They may not be realizing its full potential.

4. Offer "customer discounts" on new products or services to encourage


additional business.

5. When new employees are hired, offer to train them free of charge in
the use of your product.

6. Repay or compensate them for lost time or money caused by problems


encountered with your product.

If you pinch pennies, your customer may do the same.

7. Be personal.

Record details about your client's life and enter these in your file. It's so
much nicer to say to someone, "How is Bob?" rather than, "How's your
husband?"

8. Tell the truth.

Lies have a way of coming back to haunt you.

9. Accept returns without batting an eyelash.

In the long run, they are much less expensive than finding a new
customer.

10. Be ethical.

Keep all your information about the account confidential.


11. Be certain that your company follows through on its commitment.

This includes delivery, installation, packaging, and so on.

12. Show your appreciation for their referrals by reporting back to them
on the outcome.

13. If your company has a newsletter, obtain permission from your


successful clients to write about them in it.

Naturally, you would send them a copy.

14. Keep track of their results with your product and meet periodically to
review the entire picture (their business, industry, trends, competition,
etc.)

15. Keep the lines of communication forever open.

As in any relationship, you must be able to exchange grievances, ideas


praises, losses, and victories.

What all of this comes down to is that you should be willing to "go the
extra mile" for your accounts. They extra effort you expend now will be
repaid handsomely in the future.

The bottom line in maintaining your clients is service, service and more
service. Be there for your customers and they'll want to stick with you. If
you meet their needs, they'll think twice before switching to another
company, even if they've voiced some serious concerns. "Make new
clients, but keep the old. One is silver and the other gold." Develop the
"gold" you have and the silver may take care of itself. END

Customer satisfaction measurement:

In the final phase of the project, research findings will be used to build a
model of customer satisfaction management for each customer segment.
Ultimately, QIC will be able to give its members an objective
measurement of the industry's quality as perceived by the customer. That
overall index will serve as a benchmark on the state of quality for the P/C
industry. Members will also be able to use this information to determine
which areas of product and service performance have the greatest impact
on overall quality, and will be able to target improvement efforts in an
informed and efficient manner.

"Voice of the system" preliminary research results

Surveys and in-depth interviews with industry leaders revealed general


agreement that the market is in a tumultuous state, with pricing very soft
for all but the most catastrophic coverage. As revenue thins, expense
concerns rise. Leaders cite inefficiencies in technology and product
delivery both within and across firms. Coupled with this internal change,
customer demands and expectations for value and service continue to
evolve. The senior managers expressed genuine concern for customer-
perceived quality and value, as well as the need to better understand and
measure it.

Customer Satisfaction in 7 Steps

It's a well-known fact that no business can exist without customers. In


the business of Website design, it's important to work closely with your
customers to make sure the site or system you create for them is as close
to their requirements as you can manage. Because it's critical that you
form a close working relationship with your client, customer service is of
vital importance. What follows are a selection of tips that will make your
clients feel valued, wanted and loved.

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a
customer. If you're not used to this sort of thing it can be a pretty nerve-
wracking experience. Rest assured, though, it does get easier over time.
It's important to meet your customers face to face at least once or even
twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work
with someone they've actually met in person, rather than a voice on the
phone or someone typing into an email or messenger program. When you
do meet them, be calm, confident and above all, take time to ask them
what they need. I believe that if a potential client spends over half the
meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait
days for a response to an email or phone call. It might not always be
practical to deal with all customers' queries within the space of a few
hours, but at least email or call them back and let them know you've
received their message and you'll contact them about it as soon as
possible. Even if you're not able to solve a problem right away, let the
customer know you're working on it.

A good example of this is my Web host. They've had some trouble with
server hardware which has caused a fair bit of downtime lately. At every
step along the way I was emailed and told exactly what was going on,
why things were going wrong, and how long it would be before they were
working again. They also apologies repeatedly, which was nice. Now if
they server had just gone down with no explanation I think I'd have been
pretty annoyed and may have moved my business elsewhere. But
because they took time to keep me informed, it didn't seem so bad, and I
at least knew they were doing something about the problems. That to me
is a prime example of customer service.
3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and
to make your clients feel like you're their friend and you're there to help
them out. There will be times when you want to beat your clients over the
head repeatedly with a blunt object - it happens to all of us. It's vital that
you keep a clear head, respond to your clients' wishes as best you can,
and at all times remain polite and courteous.

4. Have a Clearly Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and
effort in the long run. If a customer has a problem, what should they do?
If the first option doesn't work, then what? Should they contact different
people for billing and technical enquiries? If they're not satisfied with any
aspect of your customer service, whom should they tell?

There's nothing more annoying for a client than being passed from person
to person, or not knowing who to turn to. Making sure they know exactly
what to do at each stage of their enquiry should be of utmost importance.
So make sure your customer service policy is present on your site -- and
anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company
you were a client of? Have you ever had a personalized sign-up
confirmation email for a service that you could tell was typed from
scratch? These little niceties can be time consuming and aren't always
cost effective, but remember to do them.
Even if it's as small as sending a Happy Holidays email to all your
customers, it's something. It shows you care; it shows there are real
people on the other end of that screen or telephone; and most
importantly, it makes the customer feel welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help


Them Out

Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working
relationship.

Take this as an example: you're working on the front-end for your client's
exciting new ecommerce endeavor. You have all the images, originals and
files backed up on your desktop computer and the site is going really well.
During a meeting with your client he/she happens to mention a hard-copy
brochure their internal marketing people are developing. As if by magic, a
couple of weeks later a CD-ROM arrives on their doorstep complete with
high-resolution versions of all the images you've used on the site. A note
accompanies it, which reads:

"Hi, you mentioned a hard-copy brochure you were working on and I


wanted to provide you with large-scale copies of the graphics I've used on
the site. Hopefully you'll be able to make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and


friends how very helpful and considerate his Web designers are.
Meanwhile, in your office, you lay back in your chair drinking your 7th cup
of coffee that morning, safe in the knowledge this happy customer will
send several referrals your way.
7. Honor Your Promises

It's possible this is the most important point in this article. The simple
message: when you promise something, deliver. The most common
example here is project delivery dates.

Clients don't like to be disappointed. Sometimes, something may not get


done, or you might miss a deadline through no fault of your own. Projects
can be late, technology can fail and sub-contractors don't always deliver
on time. In this case a quick apology and assurance it'll be ready ASAP
wouldn't go amiss.

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