CHAPTER 3 CUSTOMER FOCUS
CUSTOMER
The ultimate judge of the quality of goods and services . Without customer you don’t have
business
okyakusama means both customer and honorable guest
-influenced by factors such as
Customer’s overall purchase
Ownership
Service experience
1. Management responsibilities section
-one requirement where one top management shall ensure that customer requirement
2. Production Realization Section
-this organization must establish procedures for communicating with customers
3. Measurement, Analysis, and Improvement section
- required the organization to monitor customer perception
Customer as “the result of delivering a product or service that meets customer requirements”
Customer Satisfaction is vital to keeping customer and growing a business.
According to Patrick Mehne at ritz Carlton Hotel “Satisfaction is an attitude; Loyalty is a
behavior”
Characteristics of customer engagement:
● Customer retention and loyalty
● Customer’s willingness to make an effort to do business with the organization
● Customer’s willingness to actively advocate for and recommend the brand and product
offering
We build customer loyalty by telling our customers the truth, whether it is good or bad news
In 1994, the University of Michigan Business School and American society for Quality (ASQ)
released the first American Customer Satisfaction Index (ACSI),
raise the publics perception and understanding of quality, as do the consumer price index and
other economic indicators.
External customers are those who fall between the organization and the consumer,
Juran suggested classifying customers into two main groups
● The vital few
● The useful many
QUALITY DIMENSIONS OF GOODS AND SERVICES
David A. Garvin suggested that products have multiple dimensions of quality
1. Performance: A products primary operating characteristics
2. Features: the “bells and whistles” of a product
3. Reliability: The probability of the products surviving over a specified period of
time under stated conditions of use
4. Conformance: The degree to which physical and performance characteristics of a product
match pre-established standard.
5. Durability: The amount of use one gets from a product before it physically deteriorates or until
replacement is preferable
6. Serviceability: The speed, courtesy and competence of repair work
7. Aesthetics: How product looks, feels, sounds, tastes, or smells
Service five principal dimensions that contribute to customer perceptions of quality:
1. Reliability: The ability to provide what was promised, dependably and accurately
2. Assurance: The knowledge and courtesy of employees, and their ability to convey and trust
and confidence
3. Tangibles: The physical facilities and equipment, and the appearance of personnel
4. Empathy: The degree of caring and individual attention provided to customers
5. Responsiveness: The willingness to help customers and provide prompt service.
THE KANO MODEL OF CUSTOMER REQUIREMENTS
Noriaki Kano, professor emeritus of the Tokyo University of Science suggested segmentin
customer requirements into 3 groups:
1. Dissatisfiers (must haves): Basic requirement that customers expected in a product or
services.
2. Satisfiers (wants): Requirement that customers expressly say they want.
3. Exciters/ delighters (never thought of): New or innovative features that customer
Vice president of the Whirlpool stated “The consumers speaks in code
Comment cards and Formal Surveys- these are easy ways to solicit customer information.
Focus Groups: A focus group is a panel of individuals who answer questions about a company’s
product
Complaints: although undesirable from a service point of view, can be a key source of customer
information
Direct Customer Contact: In customer driven imoorganizations, top executives
Field Intelligence: Any employee who comes in direct contact with customers, such as
salespeople,
GE Executive “ The more successful our customers are, the more successful we will be
Customer-contact employees are particularly importantin creating customer satisfaction as
they often are the only means by which a customer interacts with an organization.
Customer contact requirements are measurable performance levels or expectations that
define the quality of customer
Service recovery is a vital element to maintain customer relationship
TECHNOLOGY and ANALYTICS are key enablers of CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) software -> designed to help organizations to the ff.;
A.) Increase customer loyalty.
B.) Target their most profitable customers.
C.) Streamline customer communication process.
CUSTOMER SATISFACTION MEASURES THE FOLLOWING;
A.) Product quality
·Product performance
·Usability
·Maintainability
B.) Service attributes
·Attitude
·Service time
·On-time delivery
·Exception handling
·Accountability
·Technical support
C.) Image attributes
·Reliability and price
·Overall satisfaction measures
Key competitors – the ones who take your customers even if they don’t sell the exact product or
services you offer
Competitive comparison -> clarify how improvements in quality can translate into better
customer satisfaction
Buyers – provide feedback on their perceptions of the sale processes.
Managers – provide input on billing and other administrative processes.
Users - provide feedback on product performance and technical support.
SAMPLE FRAME – The target group from which a sample is chosen
● it depends on the purpose of the survey
● it might be the entire customer base or a specific segment.
The most common means of measuring customer satisfaction is the formal written surveys.
WEB SURVEYS – Is the replacement of formal written surveys because of
the convenience and low cost
Face-to-face and focus groups – require much smaller sample sizes and can generate a
significant amount of qualitative information,
ACTIONABLE – The responses are tied directly to key business processes, so
that what needs to be improvised is clear;
● Poor measurement schemes. – many surveys provide biased results because few
dissatisfied customers respond
● Failure to identify appropriate quality dimensions. – lack of capturing reliable information
about customer needs and expectations.
● Failure to weight dimensions appropriately. – spend too much effort on dimensions
with the lowest scores that may not be important to the customers
● Lack of comparison with leading competitors. – without appropriate comparative
data,
● Failure to measure potential and former customers. – without an understanding of
why non-customers do not business with a company,
● Confusing loyalty with satisfaction. – customer retention and loyalty provide an
indication of the organization’s future
CUSTOMER PERCEIVED VALUE (CPV)
-Measures how customers assess benefits such as; Product performance, ease of use, or time
savings
-Measures how customer assess against costs such as; Purchase price, installation cost or
time, and so on, in making
purchase decisions
CPV methodology identifies the most important product attributes that prospective customers
use to compare one offering against another and their relative importance and performance.
CHAPTER 4 WORKFORCE FOCUS
WORK FORCE - -refers to everyone who is actively involved in accomplishing the work of an
organization. This encompasses paid employees as well as volunteers and contract employees,
and includes team leaders, supervisors, and managers at all levels.
Workforce satisfaction is strongly related to customer satisfaction and, ultimately, to business
performance.
Also called as Human Resource Management, It is the function performed in organizations
that facilitates the most effective use of people.
Kay Kendall and Glenn Bodison propose five "Conditions of Collaboration" that
characterize a culture of high performance:
Workforce engagement refers to the extent of workforce commitment.
Credibility
● Communications are open and accessible.
● Competence in coordinating human and material resources.
● Integrity in carrying out vision with consistency.
Fairness
● Equity-balanced treatment for all in terms of reward
Pride
● In personal job, individual contributions
● In work produced by one's team and one's group
Camaraderie
● Ability to be oneself
● Socially friendly and welcoming atmosphere
Employee involvement (EI) refers to any activity by which employees participate in
work-related decisions and improvement activities,
employee suggestion system is a management tool for the submission, evaluation, and
implementation of an employee's idea to save cost
Saul W. Gellerman defined motivation as "the art of creating conditions that allow every one
of us, warts and all, to get his work done at his own peak level of efficiency."
Work design refers to how employees are organized in formal and informal units, such as
departments and teams.
Job design refers to responsibilities and tasks assigned to individuals
High levels of skill variety, task identity, and significance create a psychological state of
"experienced meaningfulness"
High autonomy drives the psychological state of "experienced responsibility" Feedback from
the job creates the psychological state "knowledge of results
Job enlargement, in which workers' jobs were expanded to include several tasks rather than
one single, low-level task
Job rotation is a technique by which individual workers learn several tasks by rotating from one
to another.
Job enrichment entails "vertical job loading" in which workers are given more authority,
responsibility,
Empowerment simply means giving people authority-to make decisions based on what they
feel is right,
MEDRAD embraces an operating environment that is based on sustainable development in
which it offers products and services that have various sociological, ecological, and economic
impacts on its customers and stakeholders. I
Corporate management tool that helps managers monitor and evaluate employees' work.
The most well-known instrument-called the Q12 was developed and is implemented by the
Gallup Organization
WORKFORCE CAPABILITY COVER INTRODUCTION DISCUSSION - refers to an
organization's ability to accomplish its work processes through the knowledge, skills, abilities,
and competencies of its people.
WORKFORCE CAPACITY COVER INTRODUCTION DISCUSSION refers to an organization's
ability to ensure sufficient staffing levels to accomplish its work processes and successfully
deliver products and services to customers,
