Slide 5.1 1999 South-Western College Publishing

Chapter 5Chapter 5

Focusing on CustomersFocusing on Customers

Slide 5.2

Importance of Customer Importance of Customer SatisfactionSatisfaction

Four key goals of businessFour key goals of business– to satisfy its customersto satisfy its customers

– to achieve higher customer to achieve higher customer satisfaction than its competitorssatisfaction than its competitors

– to retain customers in the long runto retain customers in the long run

– to gain market shareto gain market share

Slide 5.3

American Customer American Customer Satisfaction IndexSatisfaction Index

Measures customer satisfaction at Measures customer satisfaction at national levelnational level

Introduced in 1994 by University of Introduced in 1994 by University of Michigan and American Society for Michigan and American Society for Quality ControlQuality Control

Continual decline in index from 1994 Continual decline in index from 1994 through 1997 suggest that quality through 1997 suggest that quality improvements are not keeping pace with improvements are not keeping pace with consumer expectationsconsumer expectations

Slide 5.4

Customer-Driven Quality CycleCustomer-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)

Slide 5.4

Customer-Driven Quality CycleCustomer-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)

Transformation Process

Slide 5.6

Identifying CustomersIdentifying Customers

Requirementsand feedback

Requirementsand feedback

Your Suppliers

YourProcesses

YourCustomers

Inputs Outputs

Slide 5.7

Key Dimensions of Service Key Dimensions of Service QualityQuality

ReliabilityReliability AssuranceAssurance TangiblesTangibles EmpathyEmpathy ResponsivenessResponsiveness

Slide 5.8

Kano Model of Customer Kano Model of Customer NeedsNeeds

Dissatisfiers: expected requirementsDissatisfiers: expected requirements

Order qualifiersOrder qualifiers Satisfiers: expressed requirementsSatisfiers: expressed requirements Exciters/delighters: unexpected Exciters/delighters: unexpected

featuresfeatures

Order winnersOrder winners

Slide 5.9

Customer Listening PostsCustomer Listening Posts

Comment cards and formal surveysComment cards and formal surveys Focus groupsFocus groups Direct customer contactDirect customer contact Field intelligenceField intelligence Study complaintsStudy complaints Monitor the InternetMonitor the Internet

Slide 5.11

Customer Relationship Customer Relationship ManagementManagement

Commitments to customersCommitments to customers Customer-focused service standardsCustomer-focused service standards Training and empowermentTraining and empowerment Effective complaint managementEffective complaint management

Slide 5.12

Measuring Customer Measuring Customer SatisfactionSatisfaction

Discover customer perceptions of Discover customer perceptions of business effectivenessbusiness effectiveness

Compare company’s performance Compare company’s performance relative to competitorsrelative to competitors

Identify areas for improvementIdentify areas for improvement Track trends to determine if changes Track trends to determine if changes

result in improvementsresult in improvements

Slide 5.13

Performance-Importance Performance-Importance ComparisonComparison

Performance

Importance

Low

High

Who cares? Overkill

Vulnerable Strength

Low High