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7/30/2019 Focusing in Customer Chapter 4
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 1
Chapter 4
Focusing on Customers
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 2
Importance of Customer
Satisfaction and Loyalty
Satisfaction is an attitude; loyalty is abehavior
Loyal customers spend more, are willing otpay higher prices, refer new clients, and areless costly to do business with.
It costs five times more to find a newcustomer than to keep an existing onehappy.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 3
American Customer
Satisfaction Index
Measures customer satisfaction at nationallevel
Introduced in 1994 by University ofMichigan and American Society for Quality
Continual decline in index from 1994 through1998 with a small improvement into 2000suggests that quality improvements have notkept pace with consumer expectations
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 4
ACSI Model
of Customer Satisfaction
Perceived
quality
Customer
complaints
Perceived
valueCustomer
satisfaction
Customer
expectations Customerloyalty
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 5
Customer-Driven Quality Cycle
measurement and feedback
Customer needs and expectations
(expected quality)
Identification of customer needs
Translation into product/service specifications(design quality)
Output (actual quality)
Customer perceptions (perceived quality)
PERCEIVED QUALITY = ACTUAL - EXPECTED
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 6
Leading Practices (1 of 2)
Define and segment key customer groups
and markets
Understand the voice of the customer
(VOC)
Understand linkages between VOC and
design, production, and delivery
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 7
Leading Practices (2 of 2)
Build relationships through commitments,
provide accessibility to people and
information, set service standards, and
follow-up on transactions
Effective complaint management processes
Measure customer satisfaction for
improvement
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 8
Key Customer Groups
Organization level
consumers
external customers
employees
society
Process level
internal customer units or groups
Performer level
individual internal customers
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 9
Identifying Internal Customers
What products or services are produced? Who uses these products and services?
Who do employees call, write to, or answer
questions for?
Who supplies inputs to the process?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 10
AT&T Customer-Supplier Model
Requirements
and feedback
Requirements
and feedback
Your
Suppliers
Your
Processes
Your
CustomersInputs Outputs
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 11
Customer Segmentation
Demographics
Geography
Volumes
Profit potential
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 12
Key Dimensions of Quality
Performanceprimary operating characteristics
Featuresbells and whistles
Reliabilityprobability of operating for specific
time and conditions of use Conformancedegree to which characteristics
match standards
Durability- amount of use before deterioration or
replacement Serviceabilityspeed, courtesy, and competence
of repair
Aestheticslook, feel, sound, taste, smell
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 13
Key Dimensions of Service Quality
Reliabilityability to provide what was promised
Assuranceknowledge and courtesy of
employees and ability to convey trust
Tangiblesphysical facilities and appearance ofpersonnel
Empathydegree of caring and individual
attention Responsivenesswillingness to help customers
and provide prompt service
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 14
Kano Model of Customer Needs
Dissatisfiers: expected requirements
Satisfiers: expressed requirements
Exciters/delighters: unexpected
features
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 15
Customer Listening PostsGathering Customer Information
Comment cards and formal surveys
Focus groups
Direct customer contact
Field intelligence
Complaint analysis Internet monitoring
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 16
Tools for Classifying
Customer Requirements
Affinity diagram Tree diagram
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 17
Customer Relationship
Management Accessibility and commitments
Selecting and developing customer contact
employees
Relevant customer contact requirements
Effective complaint management
Strategic partnerships and alliances
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 18
Measuring Customer Satisfaction
Discover customer perceptions of business
effectiveness
Compare companys performance relative
to competitors
Identify areas for improvement
Track trends to determine if changes resultin improvements
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 19
Example: The Olive Garden
The Lobby Was the lobby staff friendly and did they
welcome you to the restaurant?
Were you seated in a timely, efficient
manner?
The Table Area
Was your table area clean when you were
seated?
The Server
Was your server attentive and there when
you needed him/her?
Was your server knowledgeable and able toanswer your questions about our food and
beverages?
How was the pace of your meal?
The Food
How would you rate the taste of
your food?
Please rate the temperature of your
food, hot food being piping hot.
Please rate your visit on the value
for the money.
Overall, how would you rate your
visit
Would you recommend this Olive
Garden to a close friend or relative?
Scale: 1 = poor .5 = excellent
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 20
Example: The Olive Garden
Open-ended questions:
What one thing did you like most about your
visit?
What one thing could we do to improve your
experience at The Olive Garden?
Survey form provides address, 800 number,
FAX, and TDD number for hearingimpaired
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 21
Performance-Importance Analysis
Performance
Importance
Low High
Low
High
Who cares? Overkill
Vulnerable Strengths
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 22
Difficulties with Customer
Satisfaction Measurement
Poor measurement schemes
Failure to identify appropriate quality
dimensions Failure to weight dimensions appropriately
Lack of comparison with leading competitors
Failure to measure potential and formercustomers
Confusing loyalty with satisfaction
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 23
Customer and Market Focus
in the Baldrige CriteriaThe Customer and Market Focus category examines how an
organization determines requirements, expectations, and
preferences of customers and markets; and how it builds
relationships with customers and determines the key factors
that lead to customer acquisition, satisfaction, and retention,
and to business expansion.
3.1 Customer and Market Knowledge
3.2 Customer Relationships and Satisfaction
a. Customer Relationships
b. Customer Satisfaction Determination
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM
Customer Focus on ISO 9000:2000
Management Responsibility section (senior
leadership)
Product Realization section (feedback)
Measurement, Analysis and Improvement
section (customer satisfaction)
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM
Customer Focus of Six Sigma
Identification of critical to quality (CTQ)
characteristics
Develop a better measurement and control
system
Provide necessary monitoring and control
Improve the design and delivery of CTQs
identified through voice of the customer
processes
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