Focusing on Customers

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Chapter 5

• Focusing on Customers

Slide 5.1
??1999 South-Western College Publishing
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Importance of Customer Satisfaction

• Four key goals of business
• to satisfy its customers
• to achieve higher customer satisfaction than its
  competitors
• to retain customers in the long run
• to gain market share

Slide 5.2
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American Customer Satisfaction Index

• Measures customer satisfaction at national level
• Introduced in 1994 by University of Michigan and
  American Society for Quality Control
• Continual decline in index from 1994 through 1997
  suggest that quality improvements are not keeping
  pace with consumer expectations

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Customer-Driven Quality Cycle
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Generic Practices of Successful Companies

• They understand the voice of the customer (VOC)
• They understand linkages between VOC and design,
  production, and delivery
• They promote trust and confidence
• They have effective customer relationship
  management processes
• They measure customer satisfaction

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Identifying Customers
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Key Dimensions of Service Quality

• Reliability
• Assurance
• Tangibles
• Empathy
• Responsiveness

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Kano Model of Customer Needs

• Dissatisfiers expected requirements
• Satisfiers expressed requirements
• Exciters/delighters unexpected features

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Customer Listening Posts

• Comment cards and formal surveys
• Focus groups
• Direct customer contact
• Field intelligence
• Study complaints
• Monitor the Internet

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Tools for Classifying Customer Requirements
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Customer Relationship Management

• Commitments to customers
• Customer-focused service standards
• Training and empowerment
• Effective complaint management

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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 result in
  improvements

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Performance-Importance Comparison
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Customer Focus in the Baldrige Award Criteria

• Category 3 Customer and Market Focus
• Examines how company determines requirements and
  expectations and how it enhances relationships
• Relationship enhancement is important part of
  overall listening and learning strategy

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