Customer Satisfaction-Total Quality Management (TQM)

This presentation covers customer satisfaction with examples taken from famos motor brands i.e. Mercedese & Ford Motor Company. After Reading this, one should be uble to understand and deliver the best knowledge about customer satisfaction.

1. 11
TOPIC:TOPIC:
Customer Customer
Satisfaction Satisfaction

2. 22
What is total quality management ?What is total quality management ?

Total quality management is the art of Total quality management is the art of
managing the whole to achieve excellence. managing the whole to achieve excellence.
TQM is defined as both a philosophy TQM is defined as both a philosophy
and a set of guiding principles that and a set of guiding principles that
represent the foundation of a represent the foundation of a
continuously improving organization.continuously improving organization.
It is the application of quantities It is the application of quantities
methods and human resources to methods and human resources to
improve all the process within the improve all the process within the
organization and exceed customer organization and exceed customer
needs .needs .

3. 33
Customer satisfaction GURU:Customer satisfaction GURU:
ARMAND V. FEIGENBAUM:ARMAND V. FEIGENBAUM:
he argues that total quality control is he argues that total quality control is
necessary to achieve productivity, market necessary to achieve productivity, market
penetration, and competitive advantage.penetration, and competitive advantage.
Quality begins by identifying the Quality begins by identifying the
customer’s requirements and ends with a customer’s requirements and ends with a
product or service in the hands of a product or service in the hands of a
satisfied customer.satisfied customer.

in addition to customer satisfaction ,some in addition to customer satisfaction ,some
of Feigenbaum’s quality principles of Feigenbaum’s quality principles
involves:involves:

4. 44

Genuine management involvementGenuine management involvement

Employee involvementEmployee involvement

First-line-supervision leadershipFirst-line-supervision leadership

Company wide quality controlCompany wide quality control

5. 55
Customer SatisfactionCustomer Satisfaction
Customer satisfaction seems simple Customer satisfaction seems simple
enough, and yet it is far from simple.enough, and yet it is far from simple.
Customer satisfaction is not an objective Customer satisfaction is not an objective
but more of a feeling or attitude. but more of a feeling or attitude.
Because customer satisfaction is Because customer satisfaction is
subjective, it is hard to measure.subjective, it is hard to measure.
Although there are certain statistical Although there are certain statistical
patterns can be developed to represent patterns can be developed to represent
customer satisfaction, it is best to customer satisfaction, it is best to
remember that people’s opinions and remember that people’s opinions and
attitudes are subjective by nature.attitudes are subjective by nature.

6. 66

Customer loyalty can be sustained only Customer loyalty can be sustained only
by maintaining a favourable comparison by maintaining a favourable comparison
when compared with competitors.when compared with competitors.

7. 77
Who is the customer ?Who is the customer ?

The customer is the end user or the The customer is the end user or the
person who consumes the product or person who consumes the product or
gets benefit from the services.gets benefit from the services.

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Types of customers:Types of customers:

There are two distinct types of There are two distinct types of
customers:customers:
External CustomersExternal Customers
Internal CustomersInternal Customers

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External Customers:External Customers:

An external customer can be defined An external customer can be defined
in many ways, such as in many ways, such as
The one who uses the product or servicesThe one who uses the product or services
The one who purchases the product ore The one who purchases the product ore
servicesservices
The one who influences the sale of the The one who influences the sale of the
product or service. product or service.

10. 1010

An external customers exists outside An external customers exists outside
the organization and generally falls the organization and generally falls
into three categories:into three categories:
Current customers Current customers
Prospective customersProspective customers
Lost customersLost customers

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Internal customers:Internal customers:

An internal customer is just as important. An internal customer is just as important.
Every function, whether it be engineering, Every function, whether it be engineering,
order processing, or production, has an order processing, or production, has an
internal customer.internal customer.

Each receives a products or services and in exchange Each receives a products or services and in exchange
provide a product or service. Each person in a provide a product or service. Each person in a
process considered a preceding operations.process considered a preceding operations.

Each workers goal is to make sure that the quality Each workers goal is to make sure that the quality
meets the expectation of the next person, and should meets the expectation of the next person, and should
satisfy the satisfy the external customer. external customer.

12. 1212
Inputs from
External
Customers
Internal
Customers
Outputs
To
External
Customer

13. 1313
Customer Perception of quality:Customer Perception of quality:

One of the basic concept of TQM One of the basic concept of TQM
philosophy is continuous process philosophy is continuous process
improvement.improvement.
This concept implies that there is no This concept implies that there is no
acceptable Quality level because the acceptable Quality level because the
customer’s needs, values, and customer’s needs, values, and
expectations are constantly changing expectations are constantly changing
and becoming more demanding.and becoming more demanding.

14. 1414
(ASQ) survey on end USERS:(ASQ) survey on end USERS:

An American Society for Quality (ASQ) An American Society for Quality (ASQ)
surveys on end users perceptions of surveys on end users perceptions of
important factors that influenced important factors that influenced
purchases showed the following ranking:purchases showed the following ranking:
Performance Performance
Features Features
Service Service
WarrantyWarranty
PricePrice
Reputation Reputation

15. 1515

The factors of performance, features, The factors of performance, features,
service, and warranty are part of the service, and warranty are part of the
product or service quality; thereforeproduct or service quality; therefore
it is evident that product quality and it is evident that product quality and
service are more important than service are more important than
price. Although the information is price. Although the information is
based on the retail customer, it based on the retail customer, it
appears, to some extent, to be true appears, to some extent, to be true
for the commercial customer also.for the commercial customer also.

16. 1616
Performance:Performance:

a performance can be well defined a performance can be well defined
by a phraseby a phrase
‘’ ‘’ FITNESS FOR USE ‘’FITNESS FOR USE ‘’
this phrase indicates that the this phrase indicates that the
prodssuct and services is ready for prodssuct and services is ready for
customers use at the time of sale.customers use at the time of sale.

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Features: Features:

Identifiable features or attributes of Identifiable features or attributes of
a product or service a product or a product or service a product or
service are:service are:

Psychological Psychological

Time orientedTime oriented

Contractual Contractual

Ethical Ethical

Technological Technological
•Features are secondary Features are secondary
characteristics of the P&S.characteristics of the P&S.

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

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

20. 2020
Price:Price:

Today's customer is willing to pay a Today's customer is willing to pay a
higher price to obtain the valuable higher price to obtain the valuable
product. product.

In this highly competitive world the In this highly competitive world the
definition of the customer is definition of the customer is
continuously changing that they can continuously changing that they can
even pay high rice for high quality even pay high rice for high quality
product.product.

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Reputation:Reputation:

Total customer satisfaction is based Total customer satisfaction is based
on the entire experience with the on the entire experience with the
organization, not just the product.organization, not just the product.

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

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It Enables:It Enables:
FEEDBACK enable organizations to:FEEDBACK enable organizations to:
Discover customers dissatisfactionDiscover customers dissatisfaction
Discover relative priorities of qualityDiscover relative priorities of quality
Compare performance with the Compare performance with the
competitioncompetition
Identify customers needIdentify customers need
Determine opportunities for Determine opportunities for
improvementimprovement

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Ways of collecting Feedback:Ways of collecting Feedback:
There are the following ways through which There are the following ways through which
feedback can be collected:feedback can be collected:
a)a)Comment CardComment Card
b)b)Customer QuestionnaireCustomer Questionnaire
c)c)Focus GroupsFocus Groups
d)d)Toll-Free Telephone NumbersToll-Free Telephone Numbers
e)e)Customer VisitsCustomer Visits
f)f)Report CardReport Card
g)g)The InternetThe Internet
h)h)Employee FeedbackEmployee Feedback
i)i)Mass CommunicationMass Communication

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

26. 2626
Customer Questionnaire:Customer Questionnaire:

A Customer Questionnaire is a A Customer Questionnaire is a
popular tool for obtaining opinions popular tool for obtaining opinions
and perceptions about an and perceptions about an
organization and its product and organization and its product and
services. services.

Survey may administered by mail or Survey may administered by mail or
telephone.telephone.

This survey may ask the customer to This survey may ask the customer to
GRADE the organization.GRADE the organization.

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

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

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Customers Visits:Customers Visits:

Visits to a customer’s place of a Visits to a customer’s place of a
business provides another ay to business provides another ay to
gather information.gather information.

Through which you can get directly Through which you can get directly
feedback.feedback.

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

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

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

33. 3333
Mass Customization:Mass Customization:

The ultimate in customer satisfaction The ultimate in customer satisfaction
is giving customers exactly what is giving customers exactly what
they want.they want.

Mass customization is a direct result Mass customization is a direct result
of advances made in manufacturing of advances made in manufacturing
such as flexible manufacturing such as flexible manufacturing
technologies. technologies.

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The American Customer The American Customer
Satisfaction Index:Satisfaction Index:

It is established in 1994.It is established in 1994.

This index measures eight sectors that are:This index measures eight sectors that are:

Manufacturing (nondurable)Manufacturing (nondurable)

Manufacturing (durable)Manufacturing (durable)

RetailRetail

Transportation etc…Transportation etc…

Finance and insuranceFinance and insurance

ServicesServices

Pblc administation and govt.Pblc administation and govt.

E-cmmerceE-cmmerce

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Service Quality:Service Quality:

Elements of customer services are:Elements of customer services are:

OrganizationOrganization

Customer CareCustomer Care

CommunicationCommunication

Front-line peopleFront-line people

Leadership Leadership

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Customer Retention:Customer Retention:

Customer Retention is most powerful Customer Retention is most powerful
and effective than customer and effective than customer
satisfaction.satisfaction.

Customer Retention represents the Customer Retention represents the
activities that produce the necessary activities that produce the necessary
customer satisfaction, that creates customer satisfaction, that creates
customers loyalty, which actually customers loyalty, which actually
improves the bottom line.improves the bottom line.