Tài liệu Focusing on Customers docx

1 Chapter 4 Focusing on Customers Key Idea To create satisfied customers, the organization needs to identify customers’ needs, design the production and service systems to meet those needs, and measure the results as the basis for improvement. 3 Importance of Customer Satisfaction and Loyalty • “Satisfaction is an attitude; loyalty is a behavior” • Loyal customers spend more, are willing to pay higher prices, refer new clients, and are less costly to do business with. • It costs five times more to find a new customer than to keep an existing one happy. • A firm cannot create loyal customers without first creating satisfied customers. Key Idea Customer wants and needs drive competitive advantage, and statistics show that growth in market share is strongly correlated with customer satisfaction. 5 American Customer Satisfaction Index • Measures customer satisfaction at national level • Introduced in 1994 by University of Michigan and American Society for Quality • Continual decline in index from 1994 through 1998 with a small improvement into 2000 suggests that quality improvements have not kept pace with consumer expectations ACSI Model of Customer Satisfaction Perceived quality Customer complaints Perceived value Customer satisfaction Customer expectations Customer loyalty Key Idea The econometric model used to produce ACSI links customer satisfaction to its determinants: customer expectations, perceived quality, and perceived value. Customer satisfaction, in turn, is linked to customer loyalty, which has an impact on profitability. 8 Customer-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) PERCEIVED QUALITY is a comparison of ACTUAL QUALITY to EXPECTED QUALITY Key Idea Many organizations still focus more on processes and products from an internal perspective, rather than taking the perspective of the external customer. Leading Practices (1 of 2) • Define and segment key customer groups and markets • Understand the voice of the customer (VOC) • Understand linkages between VOC and design, production, and delivery [...]... The natural customer­supplier 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 • • • • Demographics Geography Volumes Profit potential Key Idea Segmentation allows a company to  prioritize customer groups, for instance ... price,installation cost or time, and so on, in making purchase decisions Customer and Market Focus in the Baldrige Criteria The Customer and Market Focus category examines how an organization determines requirements, expectations, and preferences of customers and markets; and how it builds relationships with customers and determines the key factors that lead to customer acquisition, satisfaction, loyalty,... about the relationship between these  ratings and the customer’s likely future  market behavior Survey Design • • • • Identify purpose Determine who should conduct the survey Select the appropriate survey instrument Design questions and response scales Key Idea The types of questions to ask in a survey  must be properly worded to achieve  actionable results. By actionable, we  mean that responses are tied directly to ... that are performing well Difficulties with Customer Satisfaction Measurement • • • • • Poor measurement schemes Failure to identify appropriate quality dimensions Failure to weight dimensions appropriately Lack of comparison with leading competitors Failure to measure potential and former customers • Confusing loyalty with satisfaction Customer Perceived Value • CPV measures how customers assess benefits—such as product...Leading Practices (2 of 2) • Build relationships through commitments, provide accessibility to people and information, set service standards, and follow-up on transactions • Effective complaint management processes • Measure customer satisfaction for improvement Key Customer Groups • Organization level – – – – consumers external customers employees society • Process level – internal customer... reservation Purchasing tickets Checking baggage Boarding a flight Ordering a beverage Requests a magazine Deplanes Picks up baggage Key Idea An organization builds customer loyalty  by developing trust, communicating with  customers,  and effectively managing the  interactions and relationships with   customers through approaches and its  people.  Companies must carefully select  customer contact employees, train them ... groups Direct customer contact Field intelligence Complaint analysis Internet monitoring 21 Key Idea Companies use a variety of methods, or  “listening posts,” to collect information  about customer needs and expectations,  their importance, and customer satisfaction  with the company’s performance on these  measures Moments of Truth • Every instance in which a customer comes in contact with an employee... with customers and determines the key factors that lead to customer acquisition, satisfaction, loyalty, and retention, and to business expansion 3.1 Customer and Market Knowledge 3.2 Customer Relationships and Satisfaction a Customer Relationship Building b Customer Satisfaction Determination ... prioritize customer groups, for instance  by considering for each group the  benefits of satisfying their requirements  and the consequences of failing to satisfy  their requirements Key Dimensions of Quality • Performance – primary operating characteristics • Features – “bells and whistles” • Reliability – probability of operating for specific time and conditions of use • Conformance – degree to which characteristics... needs to be improved is clear; and  information can be translated into  cost/revenue implications to support the  setting of improvement priorities Performance-Importance Analysis Performance  Low                            High       Low Who cares? Overkill Vulnerable Strengths Importance      High Key Idea Appropriate customer satisfaction  measurement identifies processes that  have high impact on satisfaction and  distinguishes between low performing  . 1 Chapter 4 Focusing on Customers Key Idea To create satisfied customers, the organization needs to identify customers needs, design the production and. an organization that connect every individual and function to the external customers and consumers, thus characterizing the organization’s value chain. Customer