Professional Documents
Culture Documents
Customer Satisfaction :
customer and customer perception of quality, feedback,
using customer complaints, service quality, translating
needs into requirements, customer retention,
Case studies.
Employee Involvement
Motivation, employee surveys, empowerment,
teams, suggestion system, recognition and reward, gain
sharing, performance appraisal, unions and employee
involvement, case studies. 07 Hours
ment and its Culture?
The TQM
philosophy derives
from one
The Prime Directive of Total Quality Manage
foundational idea:
everything must be
geared towards
customer satisfaction,
the engine which
drives the company
and on which its
future survival
depends.
CUSTOMER SATISFACTION
The most important asset of any organization is its
customers
Satisfied customers pay their bills promptly which
greatly improves cash flow the lifeblood of any
organization
Success of an organization depends on the number
of regular customers it has, quantity of goods they
buy and frequency of buying . And of course this
depending on the product.
ORGANIZATIONAL HIERARCHIAL
DIAGRAMS
CUSTOMERS
ORGANIZATIONAL HIERARCHIAL DIAGRAMS
HIGHLY HIGHLY
PARAMETER NEUTRAL
SATISFIED DISSATIS
COMMUNICATION SKILLS 5 4 3
2 1
Modular design
Delayed differentiation
MODULAR DESIGN
Is a form of standardization in which component
parts are subdivided into modules that are easily
replaced or interchanged. It allows:
New
Product
Mf Desig
g n
SERVICE QUALITY
Customer service is the set of activities an organization uses to win
and retain customers satisfaction.
Service can be provided before, during or after the sale of product
or exist on its own.
Elements of customer service are
Organization, Customer care,Communication,Frontline people,
Leadership
ORGANIZATION:
1.Identify each market segment,2. Write down the requirement 3.Communicate the
requirement, 4.Organize the process,5.Organizephysical spaces.
CUSTOMER CARE:
6.Meet the customer expectations, 7.Get the customer point of view ,8 Deliver what
is promised,9.Make the customer feel valued,10. Respond to all complaints,
11.Over respond to the customer, 12. Provide a clean and comfortable customer
area.
SERVICE QUALITY
COMMUNICATION
13.Optimize the trade off between time and personal attention,14.Minimize the
number of contact points, 15. provide pleasant, knowledgeable and enthusiastic
employees , 16.Write documents in customer friendly language
FRONT LINE PEOPLE
17.Hire people who like people, 18.Challenge them to develop better
methods,19.Give them the authority to solve problems, 20.Serve them as the
internal customers, 21.Be sure that they are adequately trained ,22.Recognize and
reward performance
LEADERSHIP:
23.Lead by example, 24.Listen to the front line people ,25.Strive for continuous
improvement
Characteristics and Expectations
CHARACTERISTIC EXPECTATION
Must Be
Less satisfied when the
product or service is less
functional, but cannot
- increase satisfaction
Dissatisfaction substantially if operational
- "up-time"
KANO MODEL
The Kano model which is shown, conceptualizes customer requirements. The model represents
three major areas of customer satisfaction .
The First area of customer satisfaction, represented by the diagonal line, represents explicit
requirements, these includes written or verbal requirements and are easily identified,
expected to be met, and typically performance related. Satisfying the customer would be
simple if these were only requirements
The second area of customer satisfaction represents innovations, as shown by the curved
line in the upper left corner of the figure. A customer s written instructions are often
purposefully vague to avoid stifling new ideas during conceptualization and product
definition. Because they are unexpected, these creative ideas often excite and delight the
customer. These ideas quickly become expected
The third and most significant area of customer satisfaction represents unstated or unspoken
requirements as shown by the curve in the lower right corner of the curve. The customer
may indeed be unaware of these requirements, or they may assume that such requirements
will be automatically supplied. Basic specifications often fail to take real world
manufacturing requirements into account; many merely are based on industry standards or
past practices. These implied requirements are the hardest to define but prove very costly if
ignored. They may be rediscovered during an after the fact analysis of lesson learned.
Customer Retention
Conventionally, customer retention is defined as:
Customer retention is the number of customers doing business with a firm at the
end of a financial year, expressed as percentage of those who were active
customers at the beginning of the year.
How a Modern Database
Works
Customer
Transaction Marketing
s Campaign Marketing
s Staff
Analytic & -Access
Campaign By Web
Inputs from retail, Marketing Software
phone, web Database
Modeling &
Data Cleaning
Analytics
Standardization
Appended
Website Data
Why retention is important: long
term loyal customers
Buy more per year
Buy higher priced options
Buy more often
Are less price sensitive
Are less costly to serve
Are more loyal
Have a higher lifetime value
How to retain them
Recruit the right customers to begin
with
Once you have them, segment them
by lifetime value
Communicate with them to build
loyalty
What proves that
communications
work?