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The Voice of The Customer

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41 views29 pages

The Voice of The Customer

Uploaded by

Sifati Mitu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 5

The Voice of
the Customer
Chapter Objectives
1. Discuss the basics of customer relationship management.
2. Distinguish how managing quality in services is different from
manufacturing.
3. Implement gap analysis in a service firm using SERVQUAL.
4. Develop a customer service survey using specific examples
and critical incidents.

Copyright © 2017 Pearson Education, Inc. 5-2


The Voice of the Customer
• Customer
• The receiver of goods or services
• Internal customers
• Employees receiving goods or services from within the same firm
• External customers
• The bill-paying receivers of our work

Copyright © 2017 Pearson Education, Inc. 5-3


Copyright © 2017 Pearson Education, Inc. 4
Customer-Driven Quality

• A proactive approach to satisfying customer needs that is


based on gathering data about our customers to learn their
needs and preferences, and then providing products and
services that satisfy the customers

• Many companies implement customer feedback


mechanisms incorrectly and are placed in a reactive rather
than a proactive mode with their customers.
Copyright © 2017 Pearson Education, Inc. 5-5
The Reactive Customer-Driven Model

Figure 5-1
S. T. Foster, “The Ups and Downs of Customer-Driven Quality,” Quality Progress (October 1998):70.
© 1998 American Society for Quality. Reprinted with permission.

Copyright © 2017 Pearson Education, Inc. 5-6


Customer-Relationship Management
Customer-relationship
management:
• The view of that customer
that asserts that he or she
is a valued asset to be
managed

Figure 5-2

Copyright © 2017 Pearson Education, Inc. 5-7


Customer-Relationship Management
• Complaint resolution
• Regulatory complaints
• Employee complaints
• Customer complaints
• Feedback
• Feedback to the customer
• Feedback to the firm as a basis for process improvement

Copyright © 2017 Pearson Education, Inc. 5-8


Customer-Relationship Management
• Guarantees
• Unconditional
• Meaningful
• Understandable
• Communicable
• Painless to invoke
• Corrective action
• Closed-loop corrective action

Copyright © 2017 Pearson Education, Inc. 5-9


The “Gaps” Approach to Service Design
• Gap
• The differences between desired levels of performance and actual
levels of performance

• Gap analysis
• Formal means for identifying and correcting these gaps

Copyright © 2017 Pearson Education, Inc. 5-10


The “Gaps” Approach to Service Design
Service quality model gaps

Figure 5-3
Copyright © 2017 Pearson Education, Inc. 5-11
The “Gaps” Approach to Service Design
Determinants of Service Quality
• Reliability • Credibility
• Responsiveness • Security
• Competence • Understanding/knowing
• Access the customer
• Courtesy • Tangibles
• Communication
Based on A. Parasuraman, V. Zeithamel, and L. Berry, “SERVQUAL: A Multiple-Item Scale for Measuring Customer Perceptions
of Service Quality,” Journal of Retailing (Spring 1988): 12–40.

Copyright © 2017 Pearson Education, Inc. 5-12


The “Gaps” Approach to Service Design
Two-dimensional
gaps model

Figure 5-4
Copyright © 2017 Pearson Education, Inc. 5-13
Segmenting Customers and Markets
Segmenting markets:
• To distinguish customers or markets according to common
characteristics

Copyright © 2017 Pearson Education, Inc. 5-14


Strategic Supply Chain Alliances between
Customers and Suppliers
• Competitive model
• A relationship in which one party attempts to gain advantage over
the other
• Single sourcing
• A process for developing relationships with a few suppliers for long
contract terms
• Strategic alliances
• Suppliers become de facto subsidiaries to their major customers

Copyright © 2017 Pearson Education, Inc. 5-15


Process-Chain-Network (PCN) Tool for
Service Design
• Process-chain-network (PCN) diagram
• A flowchart that evaluates the interactions between service
providers and customers

• PCN categories
• Direct interaction
• Surrogate interaction
• Independent processing

Copyright © 2017 Pearson Education, Inc. 5-16


Process-Chain-Network (PCN) Tool for
Service Design

PCN diagram for a


pizza maker

Figure 5-5

Copyright © 2017 Pearson Education, Inc. 5-17


The Role of the Customer in the Supply
Chain
• The goal of supply
chain management is
customer satisfaction.

• Segmenting the
supply chain helps to
define who is the
customer.
Figure 5-6

Copyright © 2017 Pearson Education, Inc. 5-18


Communicating Downstream
• Customer rationalization

• Annuity relationship

• Active data gathering

• Passive data gathering

Copyright © 2017 Pearson Education, Inc. 5-19


Actively Solicited Customer-Feedback
Approaches

• Actively solicited customer feedback


• Includes all supplier-initiated contact with customers
• Examples: telephone contact, focus groups, surveys

• Types of data
• Soft data, hard data, and ordinal data

Copyright © 2017 Pearson Education, Inc. 5-20


Actively Solicited Customer-Feedback
Approaches

Telephone contact:
• Convenience survey method
• Major issue is bias because major segments of the population of
interest are often not available via telephone at certain times

Copyright © 2017 Pearson Education, Inc. 5-21


Actively Solicited Customer-Feedback
Approaches

Focus groups:
• Allows a supplier to gather
feedback from a group of
consumers at one time

Figure 5-7

Copyright © 2017 Pearson Education, Inc. 5-22


Actively Solicited Customer-Feedback
Approaches

• Customer service surveys


• Used by marketers and quality professionals to define areas of strength
and areas for improvement in quality systems
• Four steps to developing a useful survey:
1. Identifying customer requirements
2. Developing and validating the instrument
• Critical incident approach
3. Implementing the survey
4. Analyzing the results
Copyright © 2017 Pearson Education, Inc. 5-23
Reliability and Validity
• Reliability – Consistency of responses; little variability
• Validity – Measuring the correct construct; centered
• Construct validity, criterion validity, content validity

Figure 5-11

Copyright © 2017 Pearson Education, Inc. 5-24


Passively Solicited Customer-Feedback
Approaches
Passively solicited customer feedback:
• Customer-initiated contact
• Examples: filling out a restaurant complaint card, calling a toll-free
complaint line, submitting an inquiry via a company’s website

Copyright © 2017 Pearson Education, Inc. 5-25


Managing Customer Retention and Loyalty

• Customer retention
• The percentage of customers who return for more service
• Will increase by application of service tools and concepts
• Customer loyalty
• Instilled by offering specialized service not available from
competitors
• Can be intangible

Copyright © 2017 Pearson Education, Inc. 5-26


Customer-Relationship Management Systems

• Systems created to mine data to improve customer service


and retention
• Three phases of customer-relationship management:
• Acquisition
• Retention
• Enhancement

Copyright © 2017 Pearson Education, Inc. 5-27


Customer-Relationship Management Systems

Used to monitor customer interactions, preferences, and


relationships:
• Customer defections
• Churn reduction
• Clickstream
• Knowledge management
• Transactional analysis

Copyright © 2017 Pearson Education, Inc. 5-28


Copyright © 2017 Pearson Education, Inc. 5-29

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