Customer Satisfaction

Refers to the way in which customers evaluate a service in terms of it having met their needs and expectations. The customer may thus be highly satisfied, just satisfied or dissatisfied with the service.

Service Quality

Refers to the various dimensions of service a customer considers when evaluating service. The evaluation of these dimensions usually determines the customer’s perception of quality being poor, acceptable or good.

In a severely competitive world, how do businesses distinguish themselves, i.e. ensure that they attract and retain customers more than the competition do? Product differentiation, technological advances, and price-cuts are often not enough. One of the best ways to put your business at the top is by continuously improving the positive impact you have on the customer.

Touch points in customer contacts are also known as ‘moments of truth’. During any stage of customer contact, the customer could form a positive or a negative opinion of any aspect of the process.

“Whenever a customer comes in contact with your organisation their response to your service is a Moment of Truth.” – Dr W.E. Demming

Many people think of customer service as treating the customer in front of them as politely as possible and if they have problems to resolve them as quickly as possible. However, effective customer service goes far beyond being polite to the customer.

Definition: In customer service, instance of contact or interaction between a customer and a firm (through a product, sales force, or visit) that gives the customer an opportunity to form (or change) an impression about the firm.

There are two types of ‘moments of truth’, i.e.:

‘Moments of Magic’: Favourable moments of truth have been termed as ’moments of magic’. These are instances where the customer has been served in a manner that exceeds his expectations. E.g.: An airline passenger being upgraded to from an economy to a business class ticket or the 100th (or 1000th) customer of a new department store being given a special discount on his purchase. Such gestures can go a long way in creating a regular and loyal customer base. However, a moment of magic need not necessarily involve such grand gestures. Even the efficient and timely service consistently provided by the coffee shop assistant can create a moment of magic for the customers.

‘Moments of Misery’: These are instances where the customer interaction has a negative outcome. A delayed flight, rude and inattentive shop assistants or poor quality of food served at a restaurant all qualify as moments of misery for the customers. Though lapses in service cannot be totally avoided, how such a lapse is handled can go a long way in converting a moment of misery into a moment of magic and creating a lasting impact on the customer.

Click here to view a video about the moments of truth... misery and magic.