What is Customer Satisfaction?

When we are managing customer network, environments or operation then customer has lots of expectation from the vendor. He thought that vendor can/will do everything for him. Although its depends on SOW and contractual agreements, but still customer always looking for more. We all are experienced this in our life either as a customer or as a Vendor.

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Suppose, you took your Car to service centre, now as a customer what you want? You should be treated on priority, you should not have much waiting time, Mechanic should spend much time on your car to check each and every issue deeply and resolve it etc. But as a Mechanic or vendor or Service provider, you have 20 more customers with same expectation and you need to attend every customer on priority, you have to feel them special and valuable customer and make ensure that customer will go with full satisfaction and definitely will came back again because of your good services.

What is Customer Value

Customer Value is defined as ratio or comparison between the benefits the customer getting and the cost he has to spent against those services.

So, it is a like equation of Value and cost, Let understand:

Value= Functional benefits + Emotional Benefits

Cost= Monetary+Time+Energy+Physcological

Value is derived by customer if the ratio of benefits is higher than cost or Ratio of benefits to Cost is higher.

What is Cost

Cost is something that customer pay to acquire some services, operation, Maintenance. Here Customer is also investing his time, energy to get particular service.

Total Perceived Costs

There are obviously some emotional and social risk that customer perceive in making any decision to invest cost. All these costs together referred as Total perceived Cost.

How to increase Value to the customer?

First thing that comes in our mind is reducing the Cost of the services, it can work, but not for long term. Some where it will start impacting the service in terms of quality, Availability or performance. Also, customer cannot be happy with short term Valur of benefits, he always looking for long term value and benefits. So, reducing Cost cannot be a feasible solution.

The different source to increase Value could be:

Quality Improvement: Quality is a very important and essential requirement for a project. A long-term visionary customer will never compromise with Quality, also a good service Provider should take care of the method of ways which helps customer to improve Quality of the business and services,

Proactive Approach: Customer always looking for proactive approach from their service providers. Customer are expecting that Service provider should inform them for any issue before they come to know from themselves. It will build trust and improve relationship.

Regularly Connect and Review Meetings with Customer: There should be a regular connect or review meeting with Customer with Higher management or governance meeting with Customer to understand any issue, Gap or requirement to improve. Face to face meeting and listening customer always helps to feel them as Valuable. customer.

Understand the Customer business: Service provide needs to understand customer’s nature of business and try to use the same language when discuss with Customer, it will help customer to feel light to share their requirement.

Always talks about Value not for Cost: Do not discuss much about Cost or revenue with Customer, always talks about value you can add, performance, pain areas, improvement area and once Customer start to share this your cost and revenue will automatously start increasing and customer never hold your payments.

Customer Satisfaction

It can define as” when a customer is happy or disappointed with the services and performance delivered by Service provider against the expectation”.

Ways to improve Customer Satisfaction level

Better Service Quality
Price and Cost
Convenience
Proactive Actions
Clear and Fair communications
Taking regular Feedback and Surveys
Performance Measurement
Regular Governance meetings
Maintain Service levels (SLAs) and Service Uptime
Sharing reports

How to measure Customer Satisfaction

There can be CSAT (Customer Satisfaction feedback Survey) performed to understand the customer satisfaction level or pain area —It can be survey contain some parameter with the scale of 1 to 5 or out of 100% where customer can give the rating as their satisfactory level, can share their pain area or Appreciation or Improvement areas.

Conduct Regular meetings with Customer— In such meeting we come to know about customer requirement and satisfaction level. Their way-of-Discussion, Body language and one-to-one feedback can be one of the methods.

Review how many escalations by customer and to whom? – If Customer started escalating the things to higher level instead of discuss or highlighting. It means thing are not going in right direction.

How many appreciations mail from customer against any service or activity- If customer is satisfied with the services, then they share their valuable feedback in the form of Appreciation. They can appreciate team members, whole team or organization.

Is there are any addition or de-limitation in services or business- If customer stops some services, payments or not interested to give new business then it can be sign of Dis-Satisfaction. At the other side if customer is planning to give more business, new business or sometime they transfer servicers from other vendors to your organization then it will show that customer is delighted.

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FAQ

Q. What is customer Value?

A. Customer Value is referred to the perceived Benefits that customer received against the Cost he invested.

Q. How to increase customer Value?

A. Customer Value can be increased by Quality Improvement, offering Value add, Customer support, regular connects and give importance to customer requirements.