Measuring Customer
Satisfaction
Nancy Levin
Director – Quality Assurance
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Customer Satisfaction: Critical Findings
• 100 satisfied customers generate 25 new customers.
• For every 1 customer complaint received, 20 other
dissatisfied customers do not bother to complain.
• Cost of acquiring 1 new customer is 5 times as great as
the cost of retaining a satisfied customer.
• Customer satisfaction is integral to TQM by establishing
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Expectations
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Standards
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Performance requirements
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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
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Surveying – Who Are Your Customers?
• External customers
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Buying Influence

Develop survey tool
•
Conduct research
•
Establish critical performance attributes
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Universal Performance Attributes
• Related to the product
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Value/price relationship
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Quality
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Features
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Product design
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Range of products & services
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Reliability and consistency
• Related to service
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Warranty
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Delivery
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Complaint resolution
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Universal Performance Attributes
• Related to purchase

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Receive accurate paychecks
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Pay reflects performance
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Receive performance feedback
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Be treated with respect
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Type of Survey: Mail – Electronic - Telephone
• Telephone
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Requires maintenance of accurate telephone numbers
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Customer skepticism/reluctance to respond
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Higher response rate than mailed survey
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Cost in time/labor
• Mail
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Requires maintenance of accurate addresses
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Highest cost in labor and materials
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Lowest response rate
• Electronic
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Requires maintenance of accurate e-mail addresses
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