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How do you measure/monitor customer satisfaction?

Discussion in 'ISO 9001:2015 - Quality Management Systems' started by WCHorn, Mar 17, 2016.

  1. Bev D

    Bev D Moderator Staff Member

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    Customer satisfaction is a very difficult thing to assess with any accuracy, precision or usefulness.
    First loyalty (the ultimate result of customer satisfaction) is NOT 1-complaint rate. A recent example I gave to a supplier was that I really didn't' care about the absolute defect rate' I really cared about how they responded to events and that they were improving. Very hard to 'measure'. Additionally surveys - which are supposed to help us get to the intangibles of how customers 'feel' about us - are very fuzzy and notoriously biased for responses. You can get directional information but not precise or even actionable information if they are not well crafted.

    Then there is the difference in Customers: the end consumer user is much different than an organizationally complex OEM or 'middle manufacturer' who will use absolutes like on-team delivery and defect rates. Such as automotive companies.

    If you really are interested in improving customer satisfaction you need to use a set of approaches based on your customer make-up.

    One thing we are getting into in a very serious way is to develop predictive models for defection and loyalty and then focusing on the factors that influence each one. There a LOT of data sources to deal with - from billing to sales force relationships to defect rates to how well we service their comments an inquiries (are we easy to work with is a big measure of satisfaction). Hard work to say the least.
     
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  2. BradM

    BradM Moderator Staff Member

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    Just my two cents worth... :)

    The only real way to determine customer satisfaction is profit. However, that's too ambiguous.
    Surveys... they are after the fact; very perceptual; validation/reliability issues; poor return rate; people only complete if they're happy or mad....

    My Six Sigma Yellow Belt primer stated that 70% of customers leave due to service quality. So... measuring customer satisfaction is going to be subjective.

    Are people happy?
    Do they look happy?
    Did you ask them if they're happy?
    Did you document they're happy?

    Ask them, "if there is one thing you would like us to fix, what is it"? Face to face; not in a survey. You'll get real answers.

    One of the most ingenious charts I've seen in a while was in a doctors office. It was a scale of 1 to 10 for discomfort; each had a face next to it. 1 was mild comfort; with 10 being extreme pain. This way, for little kids and those with English as Second Language, can just point.

    Put a weekly check-sheet on the wall, and have employees mark (1-10) on how they perceived customer satisfaction from their employees.

    Do the employees of the company truly feel customer satisfaction is important? Do management act on reports?

    I probably didn't contribute anything to this thread. :D :D I guess (like the others) I'm more sensitive to what doesn't work; what appears to be "window dressing", that proposing a perfect solution of some kind.

    If you can adjust the organization culture to truly care and be sensitive about customer satisfaction, the measures will come much more easily.
     
  3. ncwalker

    ncwalker Well-Known Member

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    Here I go again ... I am the customer. :)

    My suppliers occasionally ask (pester) me to complete surveys. I typically have two responses to them.

    1) YOU'RE GOOD !!! (when they are). And that's it. No details, no "why are they good?" No "what do you like/dislike?" Which gives them zero information. But honestly, I am too busy to do a survey justice. I would have to REALLY like them as a supplier and be REALLY not busy to take the time. So ... there's no value in the response. THUMBS UP!!! Take what you will of that ...

    2) If you are a BAD supplier who asks me for a survey, my response is typically "I'm to damn busy reviewing all your 8Ds to fill out your survey. Here's a thought ... fix your problems, THEN give me more work." Yeah, no. You are already keeping me from my wife and kids with the crap you are sending and you paper thin excuses. Survey? Tell you what, I am shortly going to call your company president and tell him what I think of your performance.

    See the tone difference? The point is, you are my supplier, you don't get to give me "make work." I cannot imagine any value in a survey because of this. It makes sense if there are LOTS of customers. Like at the McDs we are using in the examples above. You get a lot of incompletes. And results are probably skewed towards the negative. But there's enough data you could draw some conclusions because you have a LOT of customers. In manufacturing, you just don't have enough customers for valid survey statistics.

    Outside of the box? That's easy.

    Log you time on conference calls with me and your other customers. Even better, group them. Separate out the ones revolving around new product launches. Then with the remainder, divide them into payment, delivery, quality issues as best you can. Put a check sheet on your conference call wall. Something like that.

    Then take time burned on conference calls dealing with issues and put in something like number of units shipped as a denominator. You may also have to factor in difficulty of said units.

    THAT would tell you who you are satisfying and who feels like they have to constantly tend you as a supplier. Who wants you on the phone ALL THE TIME scaled against the number/complexity of units you send them. I am then totally not involved in the generation of your data.
     
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  4. QMSmaster

    QMSmaster Active Member

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    I think what you do also depend on the type of products you sell and the relationships you have with customers. How Amazon gages custSat is going to be very different than a customer who has very large contracts with customers.
     
  5. tony s

    tony s Well-Known Member

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    I believe the Note in clause 9.1.2 have already provided a good selection of the methods for obtaining and monitoring CUSTOMERS' PERCEPTIONS. Use of performance indicators (e.g. delivered part quality performance, customer disruptions including field returns, delivery schedule performance including incidents of premium freight and customer notifications related to quality or delivery issues - see also ISO/TS 16949 clause 8.2.1.1) which are based on objective data, definitely provides more tangible information for the organization to act upon. However, the requirement on ISO 9001:2015 wants us to deal with PERCEPTIONS. This will definitely make us delve in subjective information.
     
  6. kukuk

    kukuk New Member

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    Hi,

    How can I do customer satisfaction, if we didn´t back Customer Satisfaction form from your customers? I think they don´t want to answer, but we need it for audit authority.

    Can you give me a sample of Customer Satisfaction, where it is not required to cooperate with customers? For example, the subjective satisfaction issued by your company? it is possible?
     
  7. louishall101

    louishall101 New Member

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    This is a brilliant idea ! Suppliers always send gifts now and again to thank you for the business. So why not send something back to thank them for the service. This can only increase the relationship and quality of the service you'll be provided in the future, which is essential to a company. Thanks for the idea !
     
  8. Glenn0004

    Glenn0004 Member

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    I think that this may be case of adapting an approach because of what is expected of us... I have a bee in my bonnet regarding doing things because it's what the external auditors expect to see or because it is expected of us.

    The ISO standard defines the requirements for customer satisfaction as "monitor customers’ perceptions of the degree to which their needs and expectations have been fulfilled" and suggest " Examples of monitoring customer perceptions can include customer surveys, customer feedback on delivered products and services, meetings with customers, market-share analysis, compliments, warranty claims and dealer reports" in short a customer surveys may not be the answer, however dependent upon the context of your organisation " percentage of repeat business, meetings with customers, market-share analysis, compliments, warranty claims, returns, and dealer reports" may be more suitable measures.
     
  9. Nick1

    Nick1 Member

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    I might be an outlier cause we are an IT company which uses a slightly different approach to measuring customer satisfaction. We are a big fan of NPS (Net Promotor Score).
    https://en.wikipedia.org/wiki/Net_Promoter

    The question is very straightforward as it is simplistic:
    The Net Promoter Score, itself, is calculated based on responses to a single question: How likely is it that you would recommend our company/product/service to a friend or colleague? The scoring for this answer is most often based on a 0 to 10 scale.

    The main goal is to find out how likely your customer is to promote you among peers. Those that give you a 9 or 10 are considered promotors.

    Though the management tool is pretty simplistic it does give you an insight in which customers are so impressed by you that they are willing to promote you among their peers. Something which every company wants cause it is relatively cheap marketing.

    Hope this helps.
     
  10. tony s

    tony s Well-Known Member

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    Just playing a devil's advocate. What if a client wants a monopoly of a provider's service and is not willing to share?;)
     
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  11. Nick1

    Nick1 Member

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    hahahah, well it should be a very good customer if the company can sustain with only that customer :D. If not, the customer should share the service to keep your company in business.
     
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  12. tony s

    tony s Well-Known Member

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    Just toying with the thought that a neighbor may also recommend a service done to him by a lousy plumber to his/her antipathic neighbor.:rolleyes:
     
  13. RoxaneB

    RoxaneB Moderator Staff Member

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    If this question works for your organization, that's wonderful. However, here my own thoughts as someone who is, from time to time, hit with a survey:

    1. From 0 to 10 is too long. 5 is sufficient. Your organization can do the math to figure out the percent if that's your ultimate goal.
    2. Human nature is to pick middle of the road - especially when the range is shorter (see #1) - so avoid an odd number of options (i.e., go for 0-5 or 1-4) to force people to pick one side or the other.
    3. It's great when folks like your product...and not so great when they don't. Include an open field for indicating why they like your product/service...or why they don't. This way you gain some insight into what to repeat (or not).
    4. I may not recommend your product/service/company to someone else if I am in a field that is distinctly different than them. Is your organization more interested in my recommendation OR my repeat business? Personally, as a customer, I would rather you care more about having me come back.
     
  14. johnnymo77

    johnnymo77 Active Member

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    I guess we have it good in automotive because we get scorecards from all of our customers once a month or quarter.
     
  15. Ardaqr

    Ardaqr Member

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    We also use a simple survey but also there are some other issues to calculate the satisfaction rate of the customer

    We produce parts for several industries and ppm rate of ours, 8D reports, customer audit or periodic evaluation report results also implemented in the same document to analyse total satisfaction rate

    You can change the parameters and you can assign different severity of each parameter according to your system
     
  16. Eric Twiname

    Eric Twiname Well-Known Member

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    If you really want to blow them away...ask where you should send the check.
    For a couple of my vendors who provide exceptional service, I pay more than they invoice me...and as a result I stand out to them and they give even better service than before.

    May not work with a large corporate vendor...but for smaller private vendors it is a powerful tool.
     
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  17. ncwalker

    ncwalker Well-Known Member

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    You mean the random pretty pictures we send to you all? Where you call us up and contest what they say? And we say "Look, it doesn't really matter, you're good, our system is sort of broken ...." THOSE scorecards? :)
     
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  18. MCW8888

    MCW8888 Well-Known Member

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    We monitor our own internal Customer Satisfaction Index and compare the data with the customer monthly score card. Any discrepancy is actioned through our CAR system.
     
  19. Chris Glover

    Chris Glover Active Member

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    Sounds like a certain motor cycle company headquartered in a city in Wisconsin...
     
  20. ncwalker

    ncwalker Well-Known Member

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    I have actually been in their supply chain and I know the company of whom you speak. Yes. Them. And sadly, a lot more of them. As a supplier, you generally only know when they are pissed. Like driving a boat with no nav system or windows. You steer by running aground. It IS sort of steering .... sort of.