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Customer 

Relationship 
Management 
Naeem Shahzad
PIQC Institute of Quality

Learning Objectives

• Understand basics of CRM

• Understand market segmentation

• Understand tools for customers needs identification

• Understand Customer Feedback

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Quality Management Principles

Customer‐focus
Relationship 
Management Leadership

Evidence based 
Decision Making Quality  Engagement 
Management 
Principles Of People

Improvement Process Approach

Supply Chain Community

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Exercise: Dimensions Of Service Quality

Reliability

Tangibles Responsiveness

Empathy Assurance

Internal Customers

Individuals or groups within a process who are


inside the organizational boundaries.

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Quality‐Level Agreement

Quality‐level agreements (QLAs), 
also called service‐level 
agreements.

QLAs can be implemented on a 
gradual basis, starting with the 
most critical deliverables first

Customer Relationship Management

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Segmentation

Segmentation by multiple criteria (combination of factors 
income age)

Complete segmentation (every customer falls into group)

B
B
A A C
C

Segmentation

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Segmentation

“Demographics” originates from the word “demography’ which means 
“study of population’.

Demographic Segmentation
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Segmentation
SWOT Analysis

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Customer Needs

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Customer Needs

Product Life Cycle

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Customer Needs

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Customer Needs
Data found within the  Data obtained from 
organization include: outside the organization 
include:

• Customer complaints • Competitors data
• Past records of claim 
• Research
resolutions
• Public information
• Warranty and guarantee usage
• Service records • Industrial research

• Customer contact personnel • Media
• Listening post data
• Customer feedback surveys

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Quality Function Deployment

Quality function deployment (QFD), also known as the 
House of Quality.
QFD is a relationship matrix technique used to
systematically translate a customer’s requirements or
wants into operational requirements, and communicate
the customer’s voice downward though the
organization.

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Quality Function Deployment

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Quality Function Deployment

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Quality Function Deployment

House of Quality 

What are 
characteristics 
required in a 
Vacuum Cleaner?

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Quality Function Deployment

House of Quality 
For a
Vacuum Cleaner

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Customer‐focused Metrics

Customer's perception of the degree to which

the customer's requirements have been
fulfilled

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Customer Feedback Analysis

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Customer Feedback

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Kano Model
Model developed by Dr. Noriaki Kano in 1984.

The Kano analysis is a tool that helps

determine what characteristics a producer


Prof. Dr. Noriaki Kano

might want to include in the product or service

to increase customer satisfaction.

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Kano Model

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Kano Model

The Kano model breaks down a product’s features according to how


they can meet customers’ expectations, some of which are explicit
and some latent.

Kano divides the products’ features in three:

• The threshold (basic) features
• The performance features
• The delighter features

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Kano Model

The threshold (basic) features

These features define the product, without them, the product is


useless. These features are fundamental to the product. When you
receive a call on your cellular phone, you expect to hear the person on
the other end of the line and you expect that person to hear you. If you
cannot find that feature on the phone, you would not buy it. However,
the sheer presence of the basic features does lead to customer
happiness.

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Kano Model

The performance features

These features may not be as important as the threshold features but 
can increase the customers’ satisfaction. The clarity of reception of a 
cellular phone can be put in that category.

The delighter features

These are features which the customers may not expect to find on the 
product but whose presence is exiting to them.

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Kano Model

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Customer Complaint Handling

Expression of dissatisfaction made to an


organization, related to its products, or the
complaints‐handling process itself, where a
response or resolution is explicitly or implicitly
expected

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Customer Complaint Handling

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Customer Complaint Handling
Complaint Form

• Details of Complaint
• Product Description
• Problem Encountered
• Remedy Requested
• Date, Signature
• Enclosure

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Customer Complaint Handling

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Customer Complaint Handling

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Customer Feedback Analysis

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Thank You

Muhammad Naeem Shahzad
PIQC Institute of Quality
www.piqc.edu.pk

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