A customer can bedefined as one whopurchases orpatronizes for thepurpose of receivingproducts or services
DR. W. EDWARDS DEMING Stated quality means anticipating the future needs of the customer. Because satisfied customers will lead to increase profits
2 types of customers:External- Internal Buys Receive a product or product services or services
The formula for successfulinternal customer/ supplierrelationships: 3 basic questionsas advanced by LaBOVITZ; 1. What do you need from me? 2. What do you do with my output? 3. Are there any gaps between what you need and what you get?
Every department orunit must determinewhat activities/ taskare important to bothexternal and internalcustomers andmanage quality stepby step of the way.
One of the fundamentals ofthe TQM philosophy iscontinuous processimprovements The customer’s needs, values, or expectations are constantly changing and becoming more and more demanding
The AMERICAN SOCIETY FORQUALITY CONTROL (ASOC)- conducted a survey oncustomer’s perceptions ofimportant factors thatinfluenced purchasesshowed the ffng. Ranking:
PERFORMANCE- Fitness for use- ready for customer’s use at the time of sale. Availability- operate when needed Reliability- freedom from failure overtime Maintainability- product can be kept operable
FEATURES-Serviceare psychological, time- oriented, ethical, and technological.- Are secondary characteristics of the product or service.
SERVICE-greatly emerging as a method for business organizations to give customer added value.-contribute greatly to customer satisfaction
WARRANTY-represents a business organization’s public promise-gives feedback-motivates customer to buy-generates more sales
PRICE-presentcustomers are willing to spend higher price to obtain value.-customer’s concept of value is continually changing.
REPUTATION-total customer satisfaction is based on the entire experience with the business organization, not just the product.-willing to pay a premium for a known or trusted brand name and often become customer for life.
According to D.H.BESTERFIELDcustomer feedback must becontinually solicited andmonitored. Feedback enablesthe business organization to: 1. Discover customer dissatisfaction. 2. Discover relative priorities of quality
3. Compare performance with the competition.4. Identify customer needs5. Determine opportunities for improvement.
Feedback has become veryimportant that it drives new productdevelopment.Effective business organizationstake time to listen to the voice ofcustomer and feed that informationback to the idea stage
Types ofmethod/techniques thatcan be used to obtain responses from the customer:
COMMENT CARDLow cost method of obtaining feedbacks from customers.Purpose is to get basic information: name, sex, age, address, occupation, monthly income, and what influenced the customer’s decision to buy the product.
SURVEYCommon techniques or tool for gathering opinions about a business organization and its product and services.
FOCUS GROUPSMethod used to determine what the customers are thinking.Gather in a meeting room to answer several questionsMeetings are designed to focus on current, proposed and future products or services.
TOLL- FREE TELEPHONENUMBERS Are good technique for receiving complaint feedback business organizations can respond faster and cheaper to the complaint.
CUSTOMER VISITSManagers should be evolved in these visits and should not be delegated to just anybody.Nice to bring along skillful/ knowledgeable employee
REPORT CARDNormally it is sent to every customer on a quarterly basis.The data shall be analyzed to determine areas of improvement
Other methods of gathering dataare:1. Evaluating customer satisfaction during contract review2. Reviewing service or field staff reports3. Systematically following up on last sales4. Utilizing the services of
In a study conducted byAMERICAN SOCIETY FORQUALITY CONTROL (ASQC)revealed that more than half ofdissatisfied customers will buyagain if they believe theircomplaint has been heard andresolved
Some activities undertakenaccording to ASQC:1. Investigate customers experiences2. Develop procedures for complaint regulation3. Analyze complaints4. Work to identify process and material variations5. Managers should contract the customer and strive to resolve the concern.
6. Establish customer satisfaction measures7. Communicate compliant information8. Provide a monthly complaint report9. Identify customers expectations beforehand rather than afterward through compliant analysis
Front personnel should know how to handle a wide range of situations that arise. Training from personnel becomes the top priority to encourage customers to discuss their complaints and deal with them skillfully.
It is a set of activities that a business organization uses to win and retain customers satisfaction. It can be provided before, during, or after of the sale of the product or exist on its own.
Elements of CustomerService according toJacques Horovits andChan Cudennec-poon:
ORGANIZATIONIdentifyeach market segmentWrite down the requirementsCommunicate the requirements
CUSTOMER Meet the customers expectation Get the customers point of view Deliver what is promised Make the customer feel valued Respond to all complaints Over respond to the customer
COMMUNICATION Optimize the trade-off between time and personal attention Minimize the number of contact points Provide pleasant, knowledgeable and enthusiastic employees Write documents in customer friendly languages
FRONT LINE PEOPLE Hire people who like people Challenge them to develop better methods Give them the authority to solve problems Serve them as internal customers Be sure they are adequately trained Recognize and award performance
LEADERSHIPLead by exampleListen to front line peopleStrive for continuous process improvement
Realistically, the customer doesn’t buy specification, the customer buys the product or services to fulfill a need. Just meeting a customers need is not enough; the organization must exceed the customers needs.
Management must knowthat continuousimprovement and customersatisfaction go hand inhand. Maximize customersatisfaction and financialresults will follow.