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Source: M&S Service Analysis
Customer Satisfaction Scorecard
Rating A/5 B/4 C/3 D/2 E/1
Experience
Beyond Expectation
Glad You Really Do It As Expected
Disappointed
Quality ? 7. What Are Key Drivers To Make You Success On
Customer Satisfaction ? 8. Q&A
What Is Customer Satisfaction ?
1. The formation process is dynamic :
Profit will increase by 25%
~ 85% from 5% increase in customer loyalty.
?Firms become more profitable overtime due to loyal customers.
Profit Increase from 5% Increase in Customer Loyalty
Actions
“Share of Wallet” Owner Loyalty/
Conquest
$Sales$
Brand Loyalty
Enthusiast
“Share of Mind”
Enduring Profitable
Growth
SHAREHOLDER VALUE
Percents show contribution to overall customer satisfaction.
? Service : eight times for car service.
3. Factors that affect a customer re-purchase to your product 80% comes from high satisfaction of service experiences.
Consumer
Headset
Get Design Brand It Right Right
Build It
Right
Image Brand Reliability Value
New Vehicle Appeal
?
? Buy
Decision
External Influences
Press
Competitive
3. Referrals - To succeed in our industry, referrals from customers are critical to our success. - Satisfied customers are likely to tell five other people (dissatisfied customer are likely to tell 11 other people)
They include such things as :
?Customer prior experience
?Communication with sales people
?Advertising
?Price
?Influence of friends
?Customer's own personality characteristics
顧客滿意 / Customer Satisfaction
蕭慰農 / Knight W. N. Hsiao 總經理室顧客滿意部協理 福特六和汽車公司
12 / 28, 2002
Outline – Customer Satisfaction
1. What Is Customer Satisfaction ? 2. Why Needs Customer Satisfaction ? 3. What Are Key Components Of Customer Satisfaction ? 4. How To Understand Your Customer Satisfaction ? 5. What Are Factors That Block Customer Satisfaction ? 6. How To Improve Customer Satisfaction with Product /
Customer measures and rates his/her Satisfaction as a result of comparison process. Prior to the purchase and consumption of a product/service, a customer establishes various expectations concerning the “Performance” of the product/service.
In general, EXPECTIONS are the customer's predictions of the nature and level of satisfaction that they will RECEIVE when product/service is consumed.
1. Cost of acquiring new customers is 5 times the cost to retain existing ones.
2. Frequent of Customer Contact Point.
? Sales : one time for new car buyer.
Harvard Business School study findings :
?Firms with higher level of customer loyalty (not
market share) enjoy higher profitability in a
given industry .
System Capturing of Customer Feedback
Resolution & Improvement
Simple Form
Communicate
Resolution of Complaint
As the customer conBiblioteka Baiduinues through the OWNERSHIP experience, he/she tends to modify or revise his/her expectations.
As a result, customer satisfaction levels evolve.
100%
75%
85%
50% 30%
45%
45%
35%
Profit
0%
Increase
AutoServiceChain
Credit
Card Industry
LaundInrydustryDistribution
SoftBwraarnech Bank Deposits
Source : F. Reichheld and E. Sasser (1990), “Zero Defections : Quality comes to Life” Harvard Business Review, Sep-.Oct. Issue.
3. During the OWNERSHIP experience, the customer compares perceived “Performance” to the previously formed EXPECTATIONS.
If the “Performance” meets or exceeds EXPECTATIONS, the customer is satisfied, but if “performance” falls short of EXPECTATIONS, the customer is dissatisfied.
As a result, customer EXPECTATIONS serve to provide the foundation for attitude formation and also the adjustment of subsequent / expectation perceptions.
- Cost of acquiring new customers is 5 times the cost to retain existing ones.
2. Related Sales - To succeed in our industry, our ability to sell related products and services (e.g., spare parts, maintenance) to our existing customers is critical to our success.
Therefore, customer expectations play the role of defining the standard against which subsequent “Performance” is judg.ed
2. There are a variety of factors influence customer expectations, and hence, ultimate satisfaction level.
Source : F. Reichheld and E. Sasser (1990), “Zero Defections : Quality comes to Life” Harvard Business Review, Sep-.Oct. Issue.
Loyal Customer vs. Sales Cycle – Ford Research
Customer Satisfaction Components
Product Component
76%
Design It
Right
Sell It
Right
Overall Ownership Satisfaction
Ownership Experience
24%
Treat
Me Right
Sales & Service
Profitable Growth Through Customer Loyalty
Means of Profitable Growth 1. Retention
- To succeed in our industry, repeated purchase from our existing customers are important to our success.
Betrayed
Feeling Surprised Delighted
Okay Black Listed
Angry
Customer Feedback System
Sources of Input Phone Calls Letters Verbal Inputs Survey Clinic Focus Group
Why Needs Customer Satisfaction ?
It was proven strong correlation between “Completely Satisfied” customers and owner loyalty : a customer will recommend his/her friends to purchase the product/service he/she experienced.
Profit Per Customer (US$)
Customer Profit Patterns Over Time
300 250 200
150 100
50
0
Auto Service
-50
Chain
Credit Card
Industry Laundry
Industry Distribution
Year 1 Year 2 Year 3 Year 4 Year 5
Customer Satisfaction Scorecard
Rating A/5 B/4 C/3 D/2 E/1
Experience
Beyond Expectation
Glad You Really Do It As Expected
Disappointed
Quality ? 7. What Are Key Drivers To Make You Success On
Customer Satisfaction ? 8. Q&A
What Is Customer Satisfaction ?
1. The formation process is dynamic :
Profit will increase by 25%
~ 85% from 5% increase in customer loyalty.
?Firms become more profitable overtime due to loyal customers.
Profit Increase from 5% Increase in Customer Loyalty
Actions
“Share of Wallet” Owner Loyalty/
Conquest
$Sales$
Brand Loyalty
Enthusiast
“Share of Mind”
Enduring Profitable
Growth
SHAREHOLDER VALUE
Percents show contribution to overall customer satisfaction.
? Service : eight times for car service.
3. Factors that affect a customer re-purchase to your product 80% comes from high satisfaction of service experiences.
Consumer
Headset
Get Design Brand It Right Right
Build It
Right
Image Brand Reliability Value
New Vehicle Appeal
?
? Buy
Decision
External Influences
Press
Competitive
3. Referrals - To succeed in our industry, referrals from customers are critical to our success. - Satisfied customers are likely to tell five other people (dissatisfied customer are likely to tell 11 other people)
They include such things as :
?Customer prior experience
?Communication with sales people
?Advertising
?Price
?Influence of friends
?Customer's own personality characteristics
顧客滿意 / Customer Satisfaction
蕭慰農 / Knight W. N. Hsiao 總經理室顧客滿意部協理 福特六和汽車公司
12 / 28, 2002
Outline – Customer Satisfaction
1. What Is Customer Satisfaction ? 2. Why Needs Customer Satisfaction ? 3. What Are Key Components Of Customer Satisfaction ? 4. How To Understand Your Customer Satisfaction ? 5. What Are Factors That Block Customer Satisfaction ? 6. How To Improve Customer Satisfaction with Product /
Customer measures and rates his/her Satisfaction as a result of comparison process. Prior to the purchase and consumption of a product/service, a customer establishes various expectations concerning the “Performance” of the product/service.
In general, EXPECTIONS are the customer's predictions of the nature and level of satisfaction that they will RECEIVE when product/service is consumed.
1. Cost of acquiring new customers is 5 times the cost to retain existing ones.
2. Frequent of Customer Contact Point.
? Sales : one time for new car buyer.
Harvard Business School study findings :
?Firms with higher level of customer loyalty (not
market share) enjoy higher profitability in a
given industry .
System Capturing of Customer Feedback
Resolution & Improvement
Simple Form
Communicate
Resolution of Complaint
As the customer conBiblioteka Baiduinues through the OWNERSHIP experience, he/she tends to modify or revise his/her expectations.
As a result, customer satisfaction levels evolve.
100%
75%
85%
50% 30%
45%
45%
35%
Profit
0%
Increase
AutoServiceChain
Credit
Card Industry
LaundInrydustryDistribution
SoftBwraarnech Bank Deposits
Source : F. Reichheld and E. Sasser (1990), “Zero Defections : Quality comes to Life” Harvard Business Review, Sep-.Oct. Issue.
3. During the OWNERSHIP experience, the customer compares perceived “Performance” to the previously formed EXPECTATIONS.
If the “Performance” meets or exceeds EXPECTATIONS, the customer is satisfied, but if “performance” falls short of EXPECTATIONS, the customer is dissatisfied.
As a result, customer EXPECTATIONS serve to provide the foundation for attitude formation and also the adjustment of subsequent / expectation perceptions.
- Cost of acquiring new customers is 5 times the cost to retain existing ones.
2. Related Sales - To succeed in our industry, our ability to sell related products and services (e.g., spare parts, maintenance) to our existing customers is critical to our success.
Therefore, customer expectations play the role of defining the standard against which subsequent “Performance” is judg.ed
2. There are a variety of factors influence customer expectations, and hence, ultimate satisfaction level.
Source : F. Reichheld and E. Sasser (1990), “Zero Defections : Quality comes to Life” Harvard Business Review, Sep-.Oct. Issue.
Loyal Customer vs. Sales Cycle – Ford Research
Customer Satisfaction Components
Product Component
76%
Design It
Right
Sell It
Right
Overall Ownership Satisfaction
Ownership Experience
24%
Treat
Me Right
Sales & Service
Profitable Growth Through Customer Loyalty
Means of Profitable Growth 1. Retention
- To succeed in our industry, repeated purchase from our existing customers are important to our success.
Betrayed
Feeling Surprised Delighted
Okay Black Listed
Angry
Customer Feedback System
Sources of Input Phone Calls Letters Verbal Inputs Survey Clinic Focus Group
Why Needs Customer Satisfaction ?
It was proven strong correlation between “Completely Satisfied” customers and owner loyalty : a customer will recommend his/her friends to purchase the product/service he/she experienced.
Profit Per Customer (US$)
Customer Profit Patterns Over Time
300 250 200
150 100
50
0
Auto Service
-50
Chain
Credit Card
Industry Laundry
Industry Distribution
Year 1 Year 2 Year 3 Year 4 Year 5