Retaining Customers:

Managing Quality

Customer's Perspective of Quality

Winning Customers' Loyalty by Meeting and Exceeding Their Expectations

By: Vadim Kotelnikov, Founder, Ten3 Business e-Coach – Inspiration and Innovation Unlimited, 1000ventures.com, 1000advices.com

"Kodak sells film, but they don't advertise film. They advertise memories"

– Theodore Levitt

 

Customer Satisfaction: Main Benefits1

  1. Customers stay with the company longer

  2. Customers deepen their relationship with company

  3. Customers demonstrate less price sensitivity

  4. Customers recommend company's products or services to others

The Instrumental Component of Customer Value Derives from:2

  1. Functional features of the product

  2. Product quality

  3. Timely delivery

 

 

Eight Dimensions of Product Quality

By David Garvin

  1. Performance – operating characteristics (speed, comfort, ease of use, and so on); for multiple performance features, the relative importance of each

  2. Features – extras, add-ons, or gimmicks that enable a customer to somewhat customize a product

  3. Reliability – the likelihood that the product will perform as expected and not malfunction within a given time period

  4. Conformance – the degree to which the product satisfies or conforms to pre-established standards

  5. Durability – the length of time, or extent of use, before the product deteriorates and must be replaced; durability is a function of the product's operating environment and reliability

  6. Serviceability – the speed, ease, and convenience of getting or making maintenance work or repairs and the courtesy and competency of service people

  7. Aesthetic – the look, sound, smell, feel, or taste of the product based on personal taste; though subjective, some aesthetic judgments tend to be common

  8. Perceived Value – subjective opinions about the product based on images or attitudes formed by advertising and/or the reputation of the producer

Main Subjects for Suggestions in Japanese Companies

  • Improvements in product quality... More

Creating, Winning, and Retaining Customers

Effective Selling

Retaining Customers

Customers Will Usually Come Back If...

Customers for Life

Quality Management

Deming's 14 Point Plan for Total Quality Management (TQM)

14 Slogans for TQM at Pentel, Japan

Lean Production

7 Principles of Toyota Production System (TPS)

10 Commandments of Improvement

Business Processes

8 Essential Principles of Enterprise-wide Business Process Management (EBPM)

  Ten3 Mini-Courses   Presentation:    View    Download

Winning Customers

Synergizing Business Processes

Synergizing Value Chain

Quality Is All About Customers' Perceptions

 

Like beauty and truth, quality is in the eye of the beholder, your customer.

"Perception is all there is..." says Tom Peters. "There is only one perceived reality, the way each of us chooses to perceive a communication, the value of a service, the value of a particular product feature, the quality of a product."

Customer Expectations

Customer is defined as anyone who receives that which is produced by the individual or organization that has value. Customer expectations are continuously increasing. Brand loyalty is a thing of the past. Customers seek out products and producers that are best able to satisfy their requirements. A product does not need to be rated highest by customers on all dimensions, only on those they think are important.

Balanced Organization: 5 Basic Elements

Corporate Culture (Earth):

Customer Satisfaction

Customer satisfaction is a critical component of profitability.

Customer loyalty is a major contributor to sustainable profit growth. To achieve success, you must make superior service second nature of your organization. A seamless integration of all components in the service-profit chain – employee satisfaction, value creation, customer satisfaction, customer loyalty, and profit and growth – links all the critical dynamics of top customer service.

Customer Intimacy Works

Customer intimacy starts with a commitment to deliver the best results to each customer. That's why it works.3 Today's customers refuse to be anonymous. They continue to raise the level of their requirements, but their range extends beyond best price and best product. Today's customers want exactly the right selection of products or services that will help them get exactly the total solution they have in mind. Now, more than ever, customers hunger for superior results from the products or services they use. And customer intimacy gives it to them.

Kaizen & Quality Control Circles

TQC is a management tool for improving total performance. TQC means organized Kaizen activities involving everyone in a company - managers and workers – in a totally systemic and integrated effort toward improving performance at every level. It is to lead to increased customer satisfaction through satisfying such corporate cross-functional goals as quality, cost, scheduling, manpower development, and new product development... More

 Case in Point  14 TQM Slogans at Pentel

Pentel is a Japanese firm manufacturing stationary products. The following is a list of 14 Pentel's slogans for explaining Total Quality Management (TQM) and Quick and Easy Kaizen philosophy to its employees.

  1. Subscribe to the customer-first concept... More

Be the Best Possible

10 Tips by Ten3 NZ Ltd.

  • Quality is not just product related.  

    Quality is not just the product; it's a combination of the product and "add-ons," i.e. packaging, availability, convenience of use and value adding customer service, etc.  The same applies to you in the employment market. Possessing a tertiary qualification may only get you 50% of the way towards being internally promoted or externally employed.  The other 50% will depend upon what your acquired "add-ons" are, i.e. what makes you more valuable than your competitor in the mind of potential employers/customers.  Ask yourself "what value adding skills have I acquired and applied to my work within the past 2 years that demonstrate skill flexibility, continuing career development and quality as an employee?"... More

 

 

 

 

References:

  1. "Extreme Management", Mark Stevens,

  2. "TQM - Creating a Continuously Improving Organisation", W.E. Cole and J.W. Mogab

  3. "Customer Intimacy", Fred Wiersema

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