Customer Service Improvement

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ORGANIZATIONAL BEHAVIOUR ASSIGNMENT

WHITE PAPER

IMPROVING CUSTOMER SERVICE

SUBMITTED BY: VARUN AGGARWAL

CONTENTS

1.INTRODUCTION
2.MEASURING CUSTOMER SATISFACTION
3.METHODOLOGIES
4.IMPROVING CUSTOMER SERVICES
5.HOW CUSTOMER SERVICE AFFECTS BUSINESS SUCCESS
6.REFERENCES AND BIBLIOGRAPHY

METHODOLOGIES
DIFFERENT TYPES OF STUDIES
American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction. Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations, and purchase behaviour. The ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10 economic sectors. ASCI scores have also been calculated by independent researchers, for example, for the mobile phones sector, higher education, and electronic mail. The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model. SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to indicate the gap between customer expectations and experience. Other research and consulting firms have customer satisfaction solutions as well. These include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages of Excellence framework and which helps define a company’s status against eight critically identified dimensions. For Business to Business (B2B) surveys there is the InfoQuest box. This has been used internationally since 1989 on more than 110,000 surveys (Nov '09) with an average response rate of 72.74%. The box is targeted at "the most important" customers and avoids the need for a blanket survey. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS) which enables organizations to focus their attention on delivering excellence in the management of customer service by helping the organization through a Service Quality Model. The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. A typical example of this type of model is: quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability. We have taken two models:

1. SERVICE QUALITY MODEL
2. EXPANDED MODEL|
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THE SERVICE QUALITY MODEL
A model by Kaj Storbacka , Tore Strandvik, and Christian Grönroos (1994), the service quality model, is more detailed than the basic loyalty business model but arrives at the same conclusion. Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product /Services, as well as performance measurement. In it, customer satisfaction is first based on a recent experience of the product or service. This assessment depends on prior expectations of overall quality compared to the actual performance received. If the recent experience exceeds prior expectations, customer satisfaction is likely to be high. Customer satisfaction can also be high even with mediocre performance quality if the customer's expectations are low. Likewise, a customer can be dissatisfied with the service encounter and still perceive the overall quality to be good. This occurs when a quality service is priced very high and the transaction provides little value. This model then looks at the strength of the business relationship; it proposes that this strength is...
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