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Customer Focus: Presented By: Rodesa T. Espinosa

The document discusses the importance of customer focus in quality management. It states that customer satisfaction is the ultimate goal of any business and outlines four key business goals: satisfying customers, achieving higher satisfaction than competitors, retaining customers long-term, and gaining market share. It then provides examples of customer-focused practices from organizations like Park Place Lexus and K&N Management, and discusses measuring and improving customer satisfaction, engagement, and retention.

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MarjorieSarsateBlanco
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585 views24 pages

Customer Focus: Presented By: Rodesa T. Espinosa

The document discusses the importance of customer focus in quality management. It states that customer satisfaction is the ultimate goal of any business and outlines four key business goals: satisfying customers, achieving higher satisfaction than competitors, retaining customers long-term, and gaining market share. It then provides examples of customer-focused practices from organizations like Park Place Lexus and K&N Management, and discusses measuring and improving customer satisfaction, engagement, and retention.

Uploaded by

MarjorieSarsateBlanco
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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CUSTOMER

FOCUS
Presented by: Rodesa T. Espinosa
CUSTOMER FOCUS
- the most important principle of quality management

Customer - the ultimate judge of the quality of goods and


services

Any business has four key goals:


1. To satisfy its customers
2. To achieve higher customer satisfaction than its competitors
3. To retain customers in the long run
4. To gain market share
“Without customers, you
don’t have a business.”
- Don Peppers and Martha Rogers, “Customers
Don’t Grow on Trees,” Fast Company
magazine, July 2005
“If the customer is satisfied with the
whole experience with the product,
then you have a quality product.”
- Executive Director of Global Quality Strategy at
General Motors
CUSTOMER FOCUS
- is a key requirement in ISO 9000

 In the Management Responsibility section:


“Top management shall ensure that customer requirements are determined and are
met with the aim of enhancing customer satisfaction.”

 In the Product Realization Section:


The standards require that the organization determine customer requirements,
including delivery and post-delivery activities, and any requirements not stated by the
customer but necessary for specified or intended use.
CUSTOMER FOCUS
 The organization must establish procedures for communicating with customers
about product information and other inquiries, and for obtaining feedback,
including complaints.

 In the Measurement, Analysis and Improvement sections:


The standards require that the organization monitor customer perceptions as to
whether the organization has met customer requirements; that is, customer
satisfaction.
Key Customer-Focused Practices for Quality Management

 Identify the most important customer groups and markets, considering


competitors and other potential customers, and segment the customer base to
better meet differing needs.

 Understand both near-term and longer-term customer needs and expectations


(the "voice of the customer") and employ systematic processes for listening
and learning from customers, potential customers, and customers of
competitors to obtain actionable information about products and customer
support.
Key Customer-Focused Practices for Quality Management
 Understand the linkages between the voice of the customer and design,
production, and delivery processes, and use voice-of-the-customer information
to identify and innovate product offerings and customer support processes to
meet and exceed customer requirements and expectations, to expand
relationships, and to identify and attract new customers and markets.

 Create an organizational culture and support framework that allows customers


to easily contact an organization to conduct business, receive a consistently
positive customer experience, provide feedback, obtain assistance, receive
prompt resolution of their concerns, and facilitate improvement.
Key Customer-Focused Practices for Quality Management
 Manage customer relationships that build loyalty, enhance satisfaction and
engagement, and lead to the acquisition of new customers.

 Measure customer satisfaction, engagement, and dissatisfaction: compare the


results relative to competitors and industry benchmarks, and use the
information to evaluate and improve organizational processes.
Quality Profile: Park Place Lexus

• Client-relationship management database that tracks all aspects of the PPL-


Client interaction and provides the resulting information to members
(employees)

• Empowers members to resolve client complaints on the spot by allowing them


to spend up to $250 to resolve a complaint, or up to $2,000 by committee.

• A focus on personal and organizational learning motivates members, which


then results in exceptional understanding of client’s needs and the ability to
deliver service to meet those needs.
Quality Profile: K & N Management

• Vision “to become world famous by delighting one guest at a time.”

• Builds and maintains a focus on “guest delight,” relying on innovation and


technology to create product offerings that meet or exceed guest requirements.

• All leaders carry a personal digital assistant (PDA) that alerts them of guest
comments and complaints and daily performance results.
CUSTOMER SATISFACTION
- the result of delivering a product or service that meets customer
requirements

Customer satisfaction drives profitability.

 The typical company gets 65 % of its business from existing customers,


and it costs five times more to find a new customer than to keep an
existing one happy.

 Businesses with a 98 % customer retention rate are twice as profitable as


those at 94 %.
SATISFYING
CUSTOMERS
- to meet or exceed customer expectations, organizations must fully understand all
product and service attributes that contribute to customer value and lead to
satisfaction and loyalty.
SATISFYING
CUSTOMERS
 Meeting specifications, reducing defects and errors, and resolving complaints.

 Designing new products that truly delight the customer

 Responding rapidly to changing consumer and market demands

 Developing new ways of enhancing customer relationships


CUSTOMER ENGAGEMENT
- refers to customers’ investment in or commitment to a brand and product
offerings

- is an important outcome of a customer-focused culture ganization’s


listening, learning and perfromance excellence strategy.

- influenced by an organization’s integrity and the relationships it builds


with its customers.
CHARACTERISTICS OF CUSTOMER
ENGAGEMENT
• customer retention and loyalty

• customers’ willingness to make an effort to do business with the


organization

• customers’ willingness to actively advocate for and recommend the brand


and product offerings
THE AMERICAN CUSTOMER SATISFACTION
INDEX
- measures customer satisfaction at the national level
- introduced in 1994 by University of Michigan and American Society for
Quality

• Based on results of telephone interviews conducted in a national sample


of 46,000 consumers who recently bought or used a company’s product
or service.

• Web site: http://www.theacsi.org


THE AMERICAN CUSTOMER SATISFACTION
INDEX

THE AMERICAN CUSTOMER SATISFACTION INDEX (ACSI) MODEL


IDENTIFYING CUSTOMERS
Consumers - people who ultimately purchase
and use a company’s products

Internal customers - the recipient of another’s


output (which could be a product, service or
information)

External customers - those who fall between


the organization and the consumer, but are not
part of the organization
AT & T’s CUSTOMER SUPPLIER MODEL

- This model suggests that suppliers must be considered as a customer

- Every process receives inputs from suppliers and creates outputs for customers
AT & T’s CUSTOMER SUPPLIER MODEL

- This model suggests that suppliers must be considered as a customer

- Every process receives inputs from suppliers and creates outputs for customers
AT & T’s CUSTOMER SUPPLIER MODEL

The natural customer-supplier linkages among individuals, departments, and


functions build up the “chain of customers” throughout an organization that connect
every individual and function to the external customers and consumers, thus
characterizing the organization’s value chain.
CUSTOMER SEGMENTATION
- is the practice of dividing a company's customers into groups that reflect similarity
among customers in each group.

The goal of segmenting customers is to decide how to relate to customers in each


segment in order to maximize the value of each customer to the business.

Can be based on:


• Geography
• Demographic factors
• Volumes
• “Vital few” and “useful many”
• Profit potential
NET PRESENT VALUE OF THE CUSTOMER
(NPVC)
- is often used to segment customers by profit potential

- the total profits (revenues associated with a customer minus expenses needed to
serve a customer) discounted over time.

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