Logistics

• Types of customers

  • Internal customers
  • External customers
• Internal customers


  People, departments, units and groups within an organization served by what we do
• External customers


  End users of the organization's product or services, e.g. depositors, borrowers, investors
• Why customer satisfaction is important

  • Customer is the boss of the market
  • Customer dictates market trends and direction
  • The organization is dependent on the customer and not the other way round
  • Customer satisfaction means loyalty towards the organization
  • Satisfied customers will help in bringing new customers by word of mouth
• Factors affecting customer satisfaction

  • Price
  • Quality
  • Service
  • Brand name
  • Reputation
  • Features
• Basic needs (dissatisfiers)


  A service that the customer takes for granted and expects to be present. Absence leads to dissatisfaction, but presence does not lead to satisfaction.
• Performance needs (satisfiers)


  A need or want of the customer which they specifically ask for. Better performance leads to more customer satisfaction. These become benchmarks in the competitive market.
• Excitement Needs (Delighters)


  An unspoken or unexpected requirement of a customer that leads to very high level of satisfaction or customer delight. Absence of delighters does not result in customer dissatisfaction while its presence will enhance customer satisfaction.
• A 5 % increase in loyalty can increase profits by 25% to 85 %
• Only 4 % of unsatisfied customers will complain
• An unhappy customer tells 9 other people
• A happy customer tells about 5 other people
• Customer Satisfaction Process

  1. Understanding customer expectations

  2. Promises to customers

  3. Execution

  4. Ongoing dialog with a customer

  5. Customer satisfaction surveys
• Customer Retention


  Customer satisfaction should lead to customer loyalty and customer retention. This is the real test and bottom line- when the customer repeatedly comes back to you for repeat orders and to purchase new products manufactured by you. (In spite of stiff competition and multiple Suppliers/Sources!)
• Customer Feedback


  Must be continually done and monitored. It enables an organization to: Discover customer's dissatisfaction, Discover relative priorities of quality, Identify customer need opportunities for improvement, Determine
• Discover relative priorities of quality opportunities for improvement

  • Surveys
  • Customer feedback
  • Comparison with alternatives
  • Employee feedback
  • Internet/blogs
  • Toll free numbers
• Quality


  Defined as excellence in the product or service that fullfil or exceeds the expectations of the customer
• Logistics performance measurement

  • To reduce operating costs
  • To drive revenue growth
  • To attract and retain valuable customers
  • To enhance shareholder value