Analysis on How to Improve Customer Satisfaction in Service

1. Introduction

1.1The research background

FESCO Company is to make human resources Services Company, mainly to provide foreign staff personnel agency services. (including storage, the personnel files of social security taxes, receive graduates, personnel outsourcing services), the first half of 2013 received 21 (average 4) customer complaints, compared with last year in 2012, the equivalent of 2012 the whole year's complaints. As the service center manager, we want to pass the FESCO Company in Beijing, 8 service centers (CBD in Beijing, distribution of high-grade office buildings, mainly responsible for foreign enterprises and customer service personnel agency, direct contact with the client level) in customer services, satisfaction survey released card to employee satisfaction survey, do activities. (event a week.9 1-7) activities after the end of the week of September 8-14, the survey results are collected and analyzed, draw up programs (such as: to choose a good service attitude, the number of employees, as the "service star", give the reward. Other employees to motivate lead other staff awareness of service). In the event after the completion of the next month in October 1st, complaints statistics do again in September, 9 complaints

1. High quality service week successfully improves the quality of service, reduce complaints and solve. And we decided at the beginning of each month, a week of satisfaction

survey.

1.1.1 The importance of customer satisfaction

We can from the following data we can see the importance of research on customer satisfaction: on average, an enterprise cannot hear it 96% of dissatisfied customers voice; each received a complaint, means that there are actually 26 customers have the same sound; on average, a man with a problem tell the 9 or 10 people, 13% people will tell more than 20 people who complain of being resolved satisfactorily; the average customer would they have been treated to tell 5 people; customer complaint than complaining customers are more likely to stay with your service, if fully solve it is 54% to 70% if the rapid

processing, it can reach 95%.

These figures illustrate, customer dissatisfaction often do not take the initiative to

enterprise complain, so enterprises need through various means to understand customer satisfaction. Customer complaints if not well done quickly, will spread from mouth to mouth. This not only lose the original customer, will lose the potential consumers, eventually led to the customer's total loss, the direct economic benefit is damaged. If there are customers competitors use dissatisfaction, and improve their customer satisfaction, the consequences be unbearable to contemplate.

1.1.

2. Study on the current situation of Chinese scholars on

customer satisfaction

Research on the customer satisfaction in China since 1997. In 2001, the first published about satisfaction of articles, accommodation and catering. 14 industries gradually to the development of animal husbandry and fishery, manufacturing, residential service etc.. And now gradually penetrated into all fields of industry, postal services, banking, transportation. Information media increasingly associated with human life. Because our country starts late, so, various evaluation models are based on the research of foreign

scholars.

2. The object of study

2.1 Definition

2.1.1 The concept of service

From the nineteen sixties to 80 years, people had to service a lot definition, and the definitions are limited to the service industry, it is not perfect. 90, School of economics and management, Kristin of Finland? Gringos service such a definition: it is composed of a series of more or less is intangible activities. Now people define it simple, from the narrow sense, the service is action, process and performance. Broadly speaking, the service includes all output of all economic activities for non tangible products, usually is consumed in the production, and convenient, time-saving, pleasant, comfortable and healthy form provide added value. How important services for shaping the corporate image, quality service have already become a sword of best management companies, are the key factors of corporate reputation and reliable security.

2.1.2 Customer satisfaction

Customer satisfaction is a kind of mental activity, is a kind of feeling of customer needs are satisfied. Philip Kilter stressed: "the whole management activities to customer satisfaction as a pointer". "Satisfaction refers to a product or service's perceived

performance and he expected value as the result of comparison by a personal feeling". And the customer to buy the products, compare their satisfaction depends on the actual performance and customer expectations, satisfaction level can be the difference between perceived performance and expectation value of the function, can be expressed as: the level of customer satisfaction (CS) = perception of the actual performance of customer desired performance. If CS is zero, the perception of the actual performance and match the expectations, performance is satisfied; if CS beyond customer expectations, i.e. CS is positive, very satisfied customers will; if the actual performance perceived below expectations, the customer will be not satisfied.

2.1.3 Determinants of customer satisfaction

Because the customer satisfaction is a kind of customer perceived subjective experience, thus affected by objective and subjective two aspects. The objective factors include mainly relates to the product price and quality, the objective environment factors in the service process and the service quality level. The subjective factors include subjective response to the customer's own, such as consumer sentiment, the service

attribution and the fairness perception.

The factors influencing customer satisfaction mainly include the following aspects:

a. Product factor

The product is the customers really buy the basic services or benefits, especially the core products, the company provide customers with the most basic things. In the competitive market, the company of all business activities to meet customer needs as the starting point, do not do this, the customer is never satisfied. But with the development of technology and other aspects of the core product, competing companies provide basically the same, especially in certain industries, product quality standards have been raised to a very high level, excellent quality has become commonplace. Core products quality is the foundation of success; it represents the basic condition to enter the market.

b. Service factors

Constantly improve the service system, maximize the customer feel at ease and convenience. Peripheral and supportive services to provide help to the core product, these services include: practicality and convenience, business hours, the hotline. Of course, other factors in the marketing mix, such as price, distribution, promotion should also be included in the supporting system. Therefore, here the company should seriously consider the available to other components of customer: for what price, what kind of price? Ready

to use the media to attract target customers etc.. The company provides and distribution and information support and ancillary services, and gradually put their differences and competitors apart, and add value to the customer, so that between them and the customer transaction become more convenient, more customer value, customer satisfaction will

increase.

c. Customer culture factors of enterprises

A customer culture factor of enterprises is a kind of spiritual in-depth consideration. The company must consider the sometimes subtle information transfer to the customer, fundamentally speaking, this means that the company makes customers feel how; loyal customers can feel the emotional connection between them and the company. Therefore, we should strengthen the construction of enterprise employees and the enterprise image, to build a good feeling to the customer's customer culture environment to look forward to. On the one hand, consumers to buy the product contains the enterprise must be good customer service; these factors should be expressed by the behavior of employees. On the other hand, to establish a good corporate image, not only to raise consumer awareness of enterprises, more important is to let consumers have the goodwill and trust to the enterprise, only in this way can we truly have the purchase behavior.

3. The current situation of the development

of service industry

3.1 The overall development of the service industry lag Measure of service industry development index two, one is the static index is the service industry accounted for the proportion of GDP, is a reflection of the status of service industry in the national economy; another is the dynamic index is the service industry added value growth rate, is the reflection of the development of the service industry. Since 2000, China's service industry accounted for the proportion of GDP always fluctuate in the narrow range of 32.5%-37.5%, the annual, quarterly growth rate is also lower than the same period in GDP and second industry growth rate, at low levels of development

appeared to remain stagnant signs.

3.2 There is a big gap between supply and demand

Since 2000, the service industry on the one hand in the speed of development lags behind other areas of the economy, on the other hand, prices have continued to increase, prices were noticeably higher than that of industrial and agricultural products. Even in 1998,

insufficient domestic demand, deflation, prices in the service sector will maintain a rising trend year by year. In 2000, for example, index of China's retail price of 1.5 percentage points lower than the previous year, while the price index of living and service projects are increased respectively by 4.8 and 14.1 percentage points. Sustained high prices caused by the service industry have two main reasons: one is the business monopolies and price control; two is the shortage of supply, supply and demand power asymmetry. Caused by the monopoly of price rigidity, in real life is reflected as practitioners (mainly the modern service industry) high wages and higher rate of return on capital, in turn, the pattern of interests and strengthen the monopoly tendency of service industry.

3.3 The internal structure to begin the conversion

Because the industry characteristic service industry special, there is close relationship between service industry structure adjustment and the industrial structure adjustment and upgrading of the consumption structure of urban and rural residents. In recent years, in our country, accelerate the adjustment of industrial structure and the upgrading of the consumption structure trend of the formation background, the internal structure of the service industry also corresponding changes. This change is mainly manifested in the following aspects: one is to enhance the relationship with consumer hot spots conversion. To increase educational culture, real estate, automobile financial service value increased significantly, the proportion of added value of service industry improved steadily, while the traditional commerce and catering industry began to decline. The two is a high-tech service industry such as telecommunications industry accounted for the proportion of value added services is increasing year by year. The three is part

of the national property

Industry policy adjustment effect, industrial and agricultural production service industries such as agriculture, forestry, animal husbandry, fishery service industry and social service industry (mainly commercial and service industries) growth is rapid, and state organs, political parties and social organizations service industry proportion of added value decreased. Of course, as the starting point for the development of China’s service industry is low, and has not experienced large capital technology introduction process as the second industry, the service industry development level is relatively low, there is still a wide gap between the industrial structure and the upgrading of the

consumption structure.

Investment in China's service industry, the state-owned investment has been the dominant position in the. As a part of the competitive nature of the industry market access conditions to relax and small and medium-sized joint-stock enterprises to speed up the

process, this pattern is changing. Compared with 1998, in 2002 the state-owned economic investment proportion of the total investment in the services sector dropped 4.2 percentage points, while the investment and stock system economy rose by more than 12 percentage points, non state owned investment strength increased. But compared to the first industry and the second industry 33.6% state-owned investment ratio, conversion service industry investment in the system of ownership structure is still lagging behind.

3.4 Employment effect

More internal service industry, labor intensive and technology, intelligence intensive industry coexist, which can accommodate various levels, different quality of the labor force employment. "Nine Five" during the growth of the tertiary industry, the average annual employment rate is 3.03%, much higher than the first industry and the second industry (0.06%) (0.48%) the level of. During 1995-2002, agricultural employment in total employment proportion dropped 2.2 percentage points, industrial and construction industry dropped 1.6 percentage points, the service industry increased by 3.6 percentage points. "Nine Five" during the national practitioners were increased by 32030000, the tertiary industry has absorbed 84.8% of them, for the smooth implementation of the industrial structure adjustment and the reform of state-owned enterprises, reduce the employment pressure has contributed. In spite of the tertiary industry has become the main channel to absorb the labor force, but from the creation of employment ability, "employment to absorb nine five" period, only the equivalent of "eight five" during the 54%. According to statistics, since 2001, wholesale and retail trade, catering industry staff about 1353000 fewer people than last year. This shows that the tertiary industry, the traditional employment ability in the recession, the labor force quality and satisfy the requirements

of the emerging service industry.

4. Increase satisfaction method

It divided into two types: customer satisfaction, customer satisfaction and behavioral significance on the economic significance of the customer satisfaction. From the angle of behavior, satisfaction is emotional appeals to customers after long-term precipitation formed; it is the customer in the previous trading activities in the state of accumulation. We now use the CRM (Customer Relationship Management) is through the establishment of a complete customer information system, based on the process management, understand customer state. So some enterprises have to manage other assets like customer management, as well as to understand the enterprise products as well as customer, understand inventory change to understand the customer's change, the truth is obviously. From the economic

point of view, customer satisfaction is more important. When the service at a general level, is not the response of customers; once the service quality to increase or decrease to a certain extent, the praise of customers or complain will greatly increase.

In addition, the enterprise provides the service industry is an important part of customer satisfaction. Many of the world famous Multi-National Corporation are devoted to improving customer service, access to the huge profits at the same time they from efficient customer service, but also for the company to continue to develop the new products provide funding to occupy the market of new products. Therefore, we not only need to continuously improve the quality of products to meet the customers, but also to meet the needs of customers through, produce higher efficiency with high quality service, the customer is put in an important position, the customer service as a long-term investment enterprises.

Customer satisfaction is so important, then how should we do?

a. Select the target customer

Shooting before alignment target is likely to make the grade. Business sense in the face of the customer is the same. Not all customers are to serve enterprises. Such as Philip, Kilter said "every income are not profit", customers too many enterprises occupy the enterprise resources can not bring profits to enterprises must learn to give up. Enterprises should focus its resources and capabilities to mining valuable customer will bring its own rewards. Customer segmentation scale can be multi-dimensional transactions such as the index, the financial index, contact index and feature index etc.. Enterprises can choose according to the actual situation of sub standard. Subdivision end customers, enterprises should establish a customer Pyramid, hierarchical classification with orientation and value distribution of the different customer value. Then draws the outline of each thin layered customer profile, evaluate each customer appeal and the attractive to customers, selected can make full use of the resources and the ability to target customer

service from.

b. Clearly the needs and expectations of the customers

To achieve customer satisfaction should first clear customer needs, expectations.

Customer needs and expectations are not immutable and frozen, it presents the characteristics of diversification, dynamic property. This request enterprise must shift to customer needs and expectations of the alert, dialysis they buy products and services to obtain the desired results and those that can enhance customer satisfaction and driving

factors of their purchase behavior.

Enterprises through the establishment of customer information database on the customer

demand analysis. The customer can be roughly divided into price sensitive, service oriented and product oriented three types. Each type of customers also can be subdivided, then to study the homogeneity of customers, to find out the effects of key factors driving the purchase decision-making, and to determine the priorities of customer needs and value. Research shows that customers to buy a product or service, not only the pursuit of functional benefit, process benefit and relationship benefits also attention. Enterprises should figure preference orientation can describe the target customers, and then provide the value proposition of the product or service.

c. Complaint management

(1)Complaints management

The voice of the customer is not beautiful, to the customers who complain about the enterprise, if not handled properly, so they are easy to competitors, and the alliance, become the powerful opponent. Complaint is a gift. Enterprise should treat it seriously. Excellent complaint, service recovery capability to become dissatisfied with and loyalty. The first time treatment is the key to the elimination of dissatisfaction. Service failure, tolerance region customer rapid contraction, can only wait for the deterioration of customer dissatisfaction. Hair’s "Shouwenfuze system"; is that problems can be paid attention to in the first time, to hold the customer from the emotional. And through the customer complaint management system, listening to customer dissatisfaction then give

the solution quickly and effectively.

(2) Non complaints management

Many customers choose to remain silent on the enterprise, uncomplaining silence is not. Reason clients silent is many, such as the complaint channel is not smooth or do not understand the complaints channel, think the loss is not a waste of time and energy to complain, plans to purchase other enterprise products and services etc.. This requires enterprises to conduct customer satisfaction survey, mining more no feedback to the enterprise of valuable information from. The ability to collect and deal with information is a magic weapon for enterprises to promote customer satisfaction, maintain good customer relationships. After each survey, enterprises have to let customers know their own improvement, or re investigation will enable customers do not trust.

(3) Improved service (product) system

The first rule of the quality of service is doing things right the first time, this is the most important measure of the quality of service. Therefore, the enterprise should

as far as possible to avoid service failure. When quell customer complaints or conduct customer satisfaction survey, enterprises should review the event, find out the nature of the problem is the place in which a link, is provided by the enterprise value, system and staff caused by, and then be improved and solidified, prevent the recurrence of similar

incidents.

d. Establish customer satisfaction oriented corporate culture Enterprise culture is the soul of the enterprise, with orientation, cohesion and regulat

The enterprise to the customer satisfaction oriented philosophy is rooted in the employee's thought, and reflected in the behavior, must put this concept into the enterprise culture. Enterprise culture is a kind of flexible management, although invisible, but has a very strong binding to all employees; it provides a set of shared ideas, beliefs, values and norms of behavior, and the behavior pattern. The enterprise culture is also a value platform, in this platform employees can find support for their dedication to customer service reason, enthusiasm and potential ability to stimulate the work of the. So the enterprise cannot ignore the construction of enterprise culture, it is in the quiet, clean the mind of employees, enterprises and gives the values of precipitation down, represented by the usual patterns of behavior.

e. Structure and establishment of customer oriented process

Customer satisfaction oriented corporate culture is the software assurance, it constructs the employee values and behavior patterns. But only software support is not enough, the enterprise must have the organizational structure, smooth and reasonable business process to ensure customer oriented objectives can be achieved. Enterprises in the design of organization structure and business process, must from the customer point of view, all can add value to our customers as the criterion. The organization structure of the PepsiCo Inc of the traditional organization structure of Pyramid over the top, employees in the organization chart will be dealing directly with customers, the rest part of the organization is exists to support their. The benefits of doing so is to give priority to a line of departments and employees, but also can break departmental barriers, so that all functional departments for the interests of customers and. The organization structure, business process and customer experience three are positive correlation. Reasonable structure to ensure the process efficiency, and smooth business process and can increase the customer's overall experience, which leads to customer satisfaction. Business to business processes and organizational structure is not conducive to increase customer value link must be continuous improvement, to ensure that the enterprise has

the excellence of execution.

In short, improve customer service satisfaction and service quality, not only to consider from the traditional 4P, but also should improve the in service personnel, service process, physical evidence, enhance consumer awareness and to let consumer experience. In customer service, customer should be judged in the consumer mood and consumer preferences, and to measure the value differences between themselves and competitors, to create the service differentiation, to provide a full range of customer solutions and value-added services.

A little more than satisfied with the service, a little more, effectively improve customer satisfaction, attention to detail, to provide value-added services, not only let customer satisfaction, let customer delight in the enjoyment of the service process.

5. Prediction of the development of the

next 20 years China's service industry

From the stage of social transition in agricultural society to industrial stage, then go to the society on the basis of the service industry, is the inevitable law of development of human society. At present our country is at the stage of development in the industry, with basic services industry entered a rapid expansion of track condition, the main source of the rapid expansion of service industry will be the economic growth and employment opportunities. If simply based on the trend of development since the reform and opening up of China's service industry, were used to forecast the trend extrapolation method, and according to the tertiary industry index calculation is 1% higher than that of GDP, is expected to "fifteen" during our country service industry does not change with an average annual growth rate of 7.5%, "eleven five" during the annual growth rate of 8.2%, 2010-2015 years during the annual growth rate of 7.9% during the period of 2015-2020 years, the average annual growth rate of 7.4%. By 2010, the added value of the service industry accounted for the proportion of GDP reached 36.4%, service employment proportion of employees reached 36.8%, respectively, compared to 2000 increased 3 percentage points and 9.3 percentage points. By 2020, the service industry the proportion of GDP accounted for 43.1%, service employment proportion of employees reached 44.4%, in 2010 on the basis of the improved 6.7 and 7.6 percentage points. Obviously, the prediction results from the expected target values are different, the prediction results significantly lower. Therefore, based on the forecasting results of trend extrapolation, we turn to the industry development service on international law, and considering the national conditions of China's special, the prediction results of model updating and experience adjustment. These

factors mainly include:

5.1 Evolution of international industrial structure

Using GDP as the standard, to 2020, our country will enter the ranks of middle income countries. At present, the upper middle income countries service industry in the GDP share of about 54%, than we currently 33.4% levels higher than 21 percentage points. From the comparison of industry structure development trend all over the world, can be found, in the three industries, the proportion of primary industry gradually narrow, some only is about 1%-3%; the proportion of the second industry generally accounted for about half of the vertices; the tertiary industry the first, the two industry to fill the space left behind. Influenced by the urban and rural residents' income growth and the traditional consumption concept, behavior, although China's service industry accounted for the proportion of GDP in each of the next 20 years increase more than one percentage point is very difficult, but if the accelerated development of China's industrial structure evolution and the per capita GDP of more than $1000 since the end of the industry growth rate of decline, second industrial steady growth, the tertiary industry rules match, then the service sector accounted for the proportion of GDP may reach about 50%.

5.2 Reform effect of release

In the initial period of 80 years of reform, the average annual growth rate of the service industry reached 13%, but higher than the GDP growth rate in most years. After 90 years, due to government regulation of service industry is relatively strict, system reform relative lag, so the development of service industry began to come to a standstill condition, the average annual growth rate was slower than the GDP and the second industry. International experience shows that, the service industry and the liberalization of the utilities is to improve productivity, the effective means to reduce service cost. According to estimates, through the relevant reform, in recent years the OECD countries (except the United States) of the total factor productivity were increased by 1.5%-3.5% range, the total factor of Germany, France and Spain telecom industry's productivity is because of the regulation reform increased by 40%. If we can achieve the anticipated progress in reform, the entire service industry growth can therefore increase 1 percentage

points above.

5.3 Supply conditions improve

From the supply perspective, the service industry of our country is backward, lack of performance for the service types, varieties of largely. In the 143 industries in the World Trade Organization division, China's commercial tax services, poll service, safety

investigation service, credit inquiry and analysis of service industry, basically in a blank state, financial, insurance, auto intermediary, legal services and the scope is narrow. With the government's restrictions on foreign enterprises to enter the banking, insurance, education, medical treatment, health care, transportation, communications and other services in the field of greatly reduced, the profit margins are higher industry open will have obvious effect of capital accumulation. In the service industry, not only will appear some new ways, but also the original service area will be further expanded, the supply capacity of the service industry will be greatly improved, and the service industry will enter a rapid development period.

5.4 Brought about by the city of demand growth space The development of the service industry in our country is mainly supported by 40% of urban residents, the service industry added value of 67% share was created by the 236 prefecture level city, Beijing, Shanghai two city accounted for 13% of the country. According to the city of strategy of our country, in the next 20 years, urbanization rate will increase by about 1 percentage points a year, to 2020 to about 60%, the service industry will continue to expand consumer groups. In addition, in the process of city, culture, education, health, sports, health, leisure, legal advisers and other new service industry will penetrate into the city residents family and personal life, and development of new consumption hot spots will drive a series of service industry, urban service consumption expenditure proportion of total expenditure will be from the current 46% to

70.

5.5 Statistical factor

At present, in the service industry, the omission phenomenon statistics is very outstanding. Not only the survey software services, network services, legal services, accounting services and other emerging service industry is still in the blank state, some belong to the definition of OECD underground, informal services and continuously produces various consulting services and other new services are still free to survey, and the statistical scope of traditional service industry is also the gap. If in accordance with the caliber of accounting OECD country, at present our country service industry accounted for the proportion of GDP should be controlled in 38%. Therefore in the forecast, we consider appropriate services underestimated problem, expanded in 2000 the added value

of the service industry base.

6. Conclusion

Modern enterprises to implement customer satisfaction strategy must establish a set of customer satisfaction analysis system, the degree of satisfaction with the products and services to enterprises detection customers with scientific methods and means. In order to safeguard the interests of customers, the enterprise must correctly deal with customer's complaints, not as long as the customer satisfaction, and customer satisfaction more than expected, finally achieves the customers' satisfaction. Therefore, improving customer satisfaction is the key factor for enterprise to win.