week 4 customer satisfaction retention loyalty
DESCRIPTION
TQMTRANSCRIPT
L4. TQM (SHAD 2073)L4. TQM (SHAD 2073)Customer Satisfaction, Retention &
Loyalty
Who is the customer?Identify customer needsCustomer valueCustomer retentionCustomer loyalty
TQM-Chapter 1: Introduction
C2 Customer Satisfaction
Principal 2: Customer SatisfactionPrincipal 2: Customer Satisfaction
Critical factor for success organization Customer service is very important because:
– Customer will tell twice as many people about bad experiences as good experiences.
– A dissatisfied customer will tell 8 to 10 people about the bad experiences.
– 70% of upset customers will remain your customer if you resolve the complaint satisfactorily.
– It is easier to get customer to repeat than to find the new business.– Service firms rely on repeat customers for 85% to 95% of their
business– 80% of new product ideas come from customer– The cost of keeping an existing customer is one-sixth of the cost of
attracting a new customer.
Who is the customer?
Figure 7.1 Figure 7.1 Traditional View of Suppliers and Customers Showing That Customers and Suppliers Are StrictlyTraditional View of Suppliers and Customers Showing That Customers and Suppliers Are Strictly
External EntitiesExternal Entities
C2 Customer Satisfaction
Supplier-Customer Model in Supplier-Customer Model in Total Quality SettingTotal Quality Setting
Supplier Supplier Supplier Supplier
Customer & supplier
Customer & supplier
Customer & supplier
Customer & supplier
Customer & supplier
CustomerCustomerCustomer Customer
internal
External
Strategy for identifying customer Strategy for identifying customer needs: PDCA approachneeds: PDCA approach
Plan:– Speculate about the results– Develop information-gathering plan- How
Do– Collect data
Check– Analyze– Valid?
Action– Priority? Short / long term?
Identifying External Customer NeedsIdentifying External Customer Needs
Information gathering plan
Figure 7.3 Six-Step Strategy for Identifying Customer Needs
Quality Function DeploymentQuality Function Deployment
QFD :
Is a technique that seeks to bring the voice of customer into the process of designing and developing a product or service
C2 Customer Satisfaction
Identifying Internal Customer NeedsIdentifying Internal Customer Needs
Employees depends on one another as
Communication
C2 Customer Satisfaction
Customer satisfaction
Customer Satisfaction ModelCustomer Satisfaction Model
The Teboul Model (1991)
Company Offer
Customer Need
Unnecessary
How do customers define quality?How do customers define quality?
What does quality represent to a customer?ASQ: Quality =
– “a subjective term for which each person has his or her own definition. In technical usage, quality can be two meanings :
–The characteristics of a product or service that bear on its ability to satisfy stated or implied needs
–A product or service free of deficiencies
Customer Perception of Customer Perception of qualityquality
An ASQ survey on factors that influence purchases:– Performance– Features– Service– Warranty– Price– Reputation
QUALITY
How do customers define How do customers define VALUE?VALUE?
Value= the attributed or relative worth or usefulness of a product/service, is judged by consumer each time he or she trades something or worth in order to acquire the product/service.
What is the difference between What is the difference between satisfaction (S) and perceived satisfaction (S) and perceived
value (PV)?value (PV)? S & PV are related but different concept.S = expectation vs experiencePV, goes beyond customer satisfaction
Future Transactions (repurchase)
Loyalty????
http://www.youtube.com/watch?v=6y-bWZnfIYIhttp://www.youtube.com/watch?v=6y-bWZnfIYI
TQM-Chapter 1: Introduction
Listen, Acknowledge, Solution, Thank you {L.A.S.T}
C2 Customer Satisfaction
Customer FeedbackCustomer Feedback
Why important?– Discover customer dissatisfaction– Discover relative priorities of quality– Compare performance – Identify customers’ needs– Determine opportunities for improvement
Customer FeedbackCustomer Feedback
The TOOLS:– Comment Card– Customer Questionnaire (Survey)– Focus Group– Toll-Free Tel. no.– Customer visit– Web Site Inquiries– Clinic
Reactive Customer-Driven Reactive Customer-Driven Quality ModelQuality Model
Customer Expectation
Supplier Performance
Region of Complacency
Region of dissatisfaction
Time
Q
Continual communication is required because customer needs change and it is dynamic
Customer Relationship Customer Relationship ManagementManagement
Complaint Resolution
Feedback GuaranteesCorrective
Action
Thank you