Measuring Customer Satisfaction Nancy Levin Director – Quality Assurance Customer Satisfaction: Critical Findings • 100 satisfied customers generate 25 new customers • For every customer complaint received, 20 other dissatisfied customers not bother to complain • Cost of acquiring new customer is times as great as the cost of retaining a satisfied customer • Customer satisfaction is integral to TQM by establishing Expectations Standards Performance requirements Customer Satisfaction: Measurement Objectives • Determine which customers to survey • Determine critical performance attributes that result in customer satisfaction • Assess company performance • Establish corrective action • Monitor continuous improvement Surveying – Who Are Your Customers? • External customers Buying Influence Supervisors “Bill To” Contact • Internal customers HQ/Field management Staff Inter/Intra departmental teams Determining Critical Performance Attributes • What attributes generate satisfied and dissatisfied customers? ASK • Determined through: Qualitative research techniques • Discussion groups/in-depth interviewing • Conduct research • Use customer vocabulary/terminology when developing preliminary performance attributes Quantitative research techniques • Use information from qualitative research • Develop survey tool • Conduct research • Establish critical performance attributes Universal Performance Attributes • Related to the product Value/price relationship Quality Features Product design Range of products & services Reliability and consistency • Related to service Warranty Delivery Complaint resolution Universal Performance Attributes • Related to purchase Communication Courtesy Convenience Reputation Competence Voice of Experience - Determining Critical Performance Attributes • What customer’s want from a supplemental staffing company? Speed of response Accuracy of the match Invoice accuracy Innovativeness Ability to resolve problems React with a sense of urgency • What temporary employees want? To be consistently working Receive accurate paychecks Pay reflects performance Receive performance feedback Be treated with respect Type of Survey: Mail – Electronic - Telephone • Telephone Requires maintenance of accurate telephone numbers Customer skepticism/reluctance to respond Higher response rate than mailed survey Cost in time/labor • Mail Requires maintenance of accurate addresses Highest cost in labor and materials Lowest response rate • Electronic Requires maintenance of accurate e-mail addresses Most cost effective Highest response rate Type of Survey - Voice of Experience • Local Electronic surveys Direct Time (automated time submittal/approval) Mail • National third-party studies Customer – Telephone survey Employee – Mailed survey 10 .. .Customer Satisfaction: Critical Findings • 100 satisfied customers generate 25 new customers • For every customer complaint received, 20 other dissatisfied customers not bother... new customer is times as great as the cost of retaining a satisfied customer • Customer satisfaction is integral to TQM by establishing Expectations Standards Performance requirements Customer. .. Performance requirements Customer Satisfaction: Measurement Objectives • Determine which customers to survey • Determine critical performance attributes that result in customer satisfaction • Assess company