The Customer

TQM’s Customer Approach      “the customer defines quality.” “the customer is king.” “the customer always comes first.” “the customer is always right.” “quality begins and ends with the customer” .

outside the organization (people who pay the bills.people within your organization who receive your work In many situations.   Internal .Types of Customers  External .) • • End-user customers Manufacturer (OEM) for suppliers. producers have multiple customers and therefore find it useful to identify “core customers” .

there are twenty others that are not reported. Companies spend 95% of service time redressing problems and only 5% trying to figure out what made the customer angry. It costs 5-10 times more in resources to replace a customer than it does to retain one. .Some Data on Customer Attitudes and Loyalty      (Source: Winning Back Angry Customers. 1993) An average customer with a complaint tells 9-10 people. For every complaint received. Quality Progress. if it is resolved he/she only tells 5 people.

Effect of J.D.Initial Quality Survey measures customer satisfaction .problems per 100 vehicles.D.Measuring Customer Satisfaction   Example: J. Power -. Power IQS on automotive quality? • • 1998: 176 problems per 100 vehicles* 2005: 118 problems per 100 vehicles*  How does greater customer awareness impact quality? .

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examples: Benchmarking. focus groups. “War Rooms” or Tear Down Analysis advantage: “Know thy competitor. warranty claims. know thyself”  Proactive Feedback (ask customers for their opinions) • •  Analysis of Competitor Products • • . advantage: identify key product features and assess levels of performance. “employees” as customers. repair records… focus on problems concern: many dissatisfied customers do not complain (1/20 complain). examples: customer surveys.Methods to Collect Customer Satisfaction Data  Negative Feedback Analysis • • • customer complaints.

Identifying Customer Needs Possible solutions         focus-group discussions individual and group interviews surveys comment cards study repair and return data customer complaints warranty claims analyze competitor products .