Chapter 5: The Voice-of-Customer
ØCustomer
Driven Quality
ØCustomer –Relationship management
ØThe “Gaps” approach to Service Design
ØSegmenting Customers and Markets
ØStrategic Supply Chain Alliances between Customers and suppliers
ØThe Role of the Customer in Supply Chain
ØCommunicating Downstream
ØActively Solicited Customer-Feedback Approaches
ØPassively Solicited Customer-Feedback Approaches
ØManaging Customer Retention and Loyalty
ØCustomer-Relationship Management Systems
Customer Driven Quality
ü
Customers
ØInternal Customers: employees
ØExternal Customers or End Users
ü
Customer-Driven quality
ØProactive approach to satisfying customer needs
ØGather data about customers
ØProvide the products and services that satisfy the
customers
ØThe pitfalls of reactive customer-driven quality
RCDQ
Task: send an e-mail to a company asking about their
product/service? Analyze their response to your
own expectation and to the company customer
response strategy?
Ø5-
2
Customer-Relationship Management
ØComplaint
Resolution:
“you can please some people some of the time,
but you can’t please all of the people all of the
time”
v Many different channels to receive
complaints
v Three types: Regulatory, Employees and
Customer
v It is an opportunity to improve
v Usually small percentage of complaints
but represent large percentage of
complainers
v Complaint-resolution process:
compensate, contrition and design
resolution to make it easy for
complainants to reach resolution
v Complaint recovery process
Ø5-
3
Customer-Relationship Management
ØFeedback
Data à solicited or unsolicited
Ø Customer feedback and firm feedback of
complaints resolution
ØGuarantee
ØOutlines customer rights
ØEven high-quality companies there are
product/service failure
ØEffective guarantee should be: Unconditional,
Meaningful, Understandable, Communicable
and painless to invoke
ØCorrective action
ØFailure of product/service is documented and
resolved so it wont happen again.
Ø
Ø5-
4
The “GAPS”
Approach to
Service Design
Gap “will be discussed later
in the courseà Chapter 8”
ØThe Differences between
desired levels of performance
and actual levels of
performance
Gap Analysis
ØThe formal means for
identifying and correcting these
gaps
Segmenting Customers and Markets
To Segment Markets means to distinguish customers or markets according to
common characteristics:
•Respondent-Related
•
Geographic region, Age, Family size, Income, Education…. etc.
•Product-Related
•
Benefits offered, Brand, Type of product… etc.
Strategic Supply Chain Alliances Between Customers
and Suppliers
ØA competitive
model à competition among suppliers drives cost lower and
quality higher
ØSingle
Sourcingà reduces number of supplier as it develops relationships
with few suppliers for long contractà strategic partnership “Strategic
Alliance”
ØStrategic Alliances
Role of the Customer in the Supply Chain:
Segmenting the Supply Chain to
define Customers
The goal of
Supply Chain Management is à Customer Satisfaction
Communicating Downstream
ØCustomer
rationalization: agreement between Marketers and Operations
ØAnnuity relationshipà long term customers
ØActive
Ø
Ø
Ø
data gathering “Actively Solicited Customer-Feedback Approach”:
Telephone Contact: Soft data, Biased and Difficult
Focus Groups: Address a single topic or group of topics and Draw
individuals with similar characteristics and demographics
Customer Service Surveys: Identify, develop, implement and validate
ØPassive
Ø
Ø
Ø
data gathering “Passively Solicited Customer-Feedback Approach”:
Customer Research Cardsà figure 5-11 page 151
Customer Response Lines
Website Inquires
Managing Customer Retention and
Loyalty, CRMS and A Word on
Excellent Design
Managing Customer Retention and Loyalty
ØCustomer Retention
•
Indicator of customer satisfaction
•
Percentage of customers who return for more service
ØCustomer Loyalty
•
Instilled by offering a specialized service not available by competitors
•
Intangible aspect
Customer Relationship Management Systems (CRMS)à see table 5-4 Page 153”
Customer DefectionàChurn Reduction
Click Stream
Knowledge Management
Transactional Analysis
Managing Customer Retention and
Loyalty, CRMS and A Word on
Excellent Design
A Word on Excellent Design
Ø
It is not necessary excellent design is derived from customer: technology, identifying
needs that are not recognized by customers.
End of Chapter 5