01

Leadership (28 Questions)

Certified 02
Strategic Plan Development and Deployment (22
Questions)

Manager of 03
Management Elements and Methods (31 Questions)

Quality/ 04
Quality Management Tools (30 Questions)

Organizational 05
Customer-Focused Organizations (21 Questions)

Excellence
06
Supply Chain Management (17 Questions)

07
Training and Development (16 Questions)
 A
Customer Identification
and Segmentation
5 B
Customer Relationship
Customer-Focused Management

Organizations
 5A
Customer 01 Internal customers

Identification 02 External customers

and Segmentation 03 Customer segmentation
5B1 - Define internal customers and describe
the impact an organization’s treatment of
internal customers will have on external
customers. Evaluate methods for influencing
04 Qualitative assessment

internal customers to improve products,

processes, and services and evaluate the
results.
5B2 - Define external customers and describe their impact on
products and services. Evaluate strategies for working with them
and integrating their requirements and needs to improve
products, services, and processes.
Internal vs External
Customers
❖ Internal Customers
❖ The notion of an internal customer was
popularized by Joseph Juran
❖ External Customers
❖ Intermediate Customer
❖ Ultimate Customer
❖ Consumer

5A1 Internal
Customers
Internal vs External Customer

Supplier Organization Customer

Internal Internal
Operator
Supplier Customer

5A1 Internal Customers Slide 5

Internal vs External Customer

Supplier Organization Customer

Sales Design Production

5A1 Internal Customers Slide 6

Internal Customer -
Impact on Quality
❖ Internal customer impacts the quality
and the experience of the external
customer
❖ The focus of everyone in the
organization should be on the external
customer.
❖ Develop internal quality standard and
expectations
❖ Train and re-train 5A1 Internal
Customers
External Customer -
Impact on Quality
❖ Clearly identify who the external
customer is?
❖ Understand the needs and expectations
of the external customer

Customer
 5A
Customer 01
Internal customers

Identification 02
External customers
and Segmentation 03
Customer segmentation

Describe and assess the process of customer

segmentation and its impact on aligning
04
Qualitative assessment

service and delivery to meet customer needs.

Customer Segmentation
❖ Dividing customers into groups to meet
specific demands of specific groups:
❖ Examples: Location, Buying habits,
gender, language, local customs,
education, recency, frequency, special
occasion etc.

5A3 Customer
Segmentation
Customer Segmentation
❖ Why segment?
❖ Target marketing - Focus based on specific
needs of the customer
❖ Provide better service
❖ Develop marketing strategy
❖ Price differentiation
❖ Prioritize product development, marketing
etc.

5A3 Customer
Segmentation
Example of Segregation

5A3 Customer Segmentation Slide 12

Customer Segmentation
❖ Tools:
❖ Sorting (Male/Female, Married/Unmarried)
❖ Complex tools:
❖ Cluster analysis
❖ Factor analysis
❖ Multiple regression analysis

5A3 Customer
Segmentation
Example of Segregation

© Minitab

5A3 Customer Segmentation Slide 14

 5A
Customer 01
Internal customers

Identification 02
External customers
and Segmentation 03
Customer segmentation

Identify subjective information such as

verbatim comments from customers,
04
Qualitative assessment

observation records, and focus group output.

Describe how the subjective information
differs from objective measures and determine
when data should be captured in categories
rather than numeric value.
Customer Data Collection

❖ Surveys
❖ Listen to your customers
❖ Mail, Phone, Web surveys
❖ Feedback
❖ Focus Groups
❖ A group of people are asked about their
perceptions, opinions, beliefs, and
attitudes.
❖ Interviews / Meetings 5A4 Qualitative
❖ Observations
Assessment
Survey

❖ What is the goal of the survey?

❖ Clarity of questions
❖ Unambiguous
❖ Scale of 1 to 10
❖ Historical relevance (to compare year to
year change)
❖ Open ended questions
❖ Review the survey
❖ Send the survey to target audience 5A4 Qualitative
❖ Analyze Assessment
Focus Group

❖ A group of people are asked about their

perceptions, opinions, beliefs, and
attitudes.
❖ Generally 6-10 people having open
discussion with skilled moderator.

5A4 Qualitative
Assessment
Focus Group

❖ Engagement questions
❖ Start discussion to make participants
comfortable with the process.
❖ Exploration questions
❖ Main questions
❖ Exit question
❖ Anything else members want to add

5A4 Qualitative
Assessment
Subjective Information

❖ Analyze subjective feedback from

customer using:
❖ Word Cloud
❖ Natural Language Processing (NLP)
❖ Sentiment Analysis (Positive, Negative and
Neutral)

5A4 Qualitative
Assessment
 A
Customer Identification
and Segmentation
5 B
Customer Relationship
Customer-Focused Management

Organizations
 5B
Customer 01
Customer needs

Relationship 02
Customer satisfaction and loyalty
Management 03
Customer service principles
Use quality function deployment (QFD) to
capture the voice of the customer (VOC) and
examine customer needs in relation to
products and services offered. Analyze the
04
Multiple and diverse customer
management
results to prioritize future development in
anticipation of changing customer needs.
❖ Data collected using Surveys, Focus
Groups, Interviews / Meetings,
Observations

❖ What customer needs?

5B1 Customer Needs Slide 23

Tools / Concepts
❖ Voice of Customer
❖ Critical to Quality (CTQ)
❖ Quality Function Deployment (QFD)
❖ Kano Model

5B1 Customer
Needs
 ❖ Developed by Yoji Akao in 1970s.
Customer ❖ Quality Function Deployment
(QFD) is a method to acquire and
Requirements analyze the voice of the customer
and then transform it into product
USING QFD requirements.
 Customer
Requirements
USING QFD
Kano Model
❖ The Kano model was developed in 1980s
by Professor Noriaki Kano, which
classifies customer preferences into
❖ Must-be Quality (Basic Needs)
❖ Performance Needs
❖ Attractive Quality (Delighters)

5B1 Customer
Needs
Kano Model Satisfied

Not Implemented Fully Implemented

Dissatisfied

5B1 Customer Needs Slide 28

Anticipating Future Needs

❖ Listen to the customer with open mind

❖ Ask for feedback
❖ Competitor analysis
❖ Industry trends
❖ Tools such as Google Trends

5B1 Customer
Needs
 5B
Customer
Relationship 01
Customer needs

Management 02
Customer satisfaction and loyalty
Develop systems to capture positive and negative
customer feedback and experiences, using tools
such as listening posts, focus groups, complaints
03
Customer service principles
and warranty data, surveys, and interviews. Use
customer value analysis to calculate the financial
impact of existing customers and the potential
04
Multiple and diverse customer
management
results of losing those customers. Develop
corrective actions and proactive methods to
improve customer satisfaction, loyalty, and
retention levels.
Lesson Plan
❖ Capturing Customer Feedback
❖ surveys, informal feedback, complaints
and warranty data, focus groups and
listening posts
❖ Customer value analysis
❖ Methods to improve customer
satisfaction, loyalty, and retention levels.
5B2 Customer
Satisfaction and
Loyalty
Methods
❖ Formal surveys
❖ Informal feedback
❖ Warranty claims
❖ Focus groups
❖ Listening posts

VoC – Data
Gathering and Use
What to Survey?
❖ Product or service performance
❖ Learn about the customer demography
❖ Where did they learn about the
product? (effectiveness of marketing
channels)
❖ Suggestions for new product or features
❖ Measure customer loyalty
❖ Improve the customer experience
(shows that their opinion matters) Survey
Designing a Survey?
❖ Keep it short and simple (KISS)
❖ Ensure clarity in questions
❖ Ask only those questions which are
important
❖ Keep the rating consistent (e.g. 1 – low
and 5 – High)
❖ Include open ended questions
❖ Don’t forget to thank customer for
taking time to complete the survey. Survey
Question Types in a Survey

❖ Open ended questions

❖ Closed ended questions
❖ Yes/No
❖ Ranking
❖ Likert Scale

Survey
Open ended Ranking

Closed ended Likert Scale

Question Types in a Survey Slide 36

Phone, In-person or Electronic

Phone Surveys In-person Surveys Electronic or Paper Surveys

Flexible and adaptable Flexible and adaptable Low cost
Cheaper than in-person Build relationship Flexible and interactive
Use is growing
Intrusive / Lack of faith Interviewer bias Low response rate
High cost per respondent Non-response bias
Geographical limitations

Surveys Slide 37
Methods
❖ Formal surveys
❖ Informal feedback
❖ Warranty claims
❖ Focus groups
❖ Listening posts

VoC – Data
Gathering and Use
Informal Feedback
❖ Unsolicited feedback from customers
❖ Example: comments on the social media
❖ It could be criticisms or compliments
❖ It is honest and unfiltered feedback but
understanding and analyzing it could be
a challenge.

Informal Feedback
Methods
❖ Formal surveys
❖ Informal feedback
❖ Warranty claims
❖ Focus groups
❖ Listening posts

VoC – Data
Gathering and Use
Warranty Data
❖ Warranty claims for product failure are
the indication of the product reliability.
❖ Warranty data can provide insight about
the future failures.
❖ Failure analysis might lead to a
Corrective Action to remove the
problem permanently.

Warranty Analysis
Methods
❖ Formal surveys
❖ Informal feedback
❖ Warranty claims
❖ Focus groups
❖ Listening posts

VoC – Data
Gathering and Use
Focus Group
❖ Focus groups, or group interviews, is a
technique used to receive insights on a
specific product, issue, or topic.
❖ Focus groups typically are conducted
face-to-face.
❖ Provide detail feedback on product or
service including group feeling and
opinion.
❖ Clarifications can be obtained
Focus Groups
Focus Group
❖ Focus groups might not represent the
population
❖ Moderator’s bias need to be managed
❖ Group thinking might influence the
outcome

Focus Groups
Methods
❖ Formal surveys
❖ Informal feedback
❖ Warranty claims
❖ Focus groups
❖ Listening posts

VoC – Data
Gathering and Use
Listening Post
❖ Listening posts are the way to get the
direct client feedback.
❖ Any interaction with a customer
provides an opportunity to listen to the
voice of the customer.
❖ This involves involving multiple people
at different levels in the organization.
❖ Avoid “all listen, no action”. 5B2 Customer
Satisfaction and
Loyalty
Lesson Plan
❖ Capturing Customer Feedback
❖ surveys, informal feedback, complaints
and warranty data, focus groups and
listening posts
❖ Customer value analysis
❖ Methods to improve customer
satisfaction, loyalty, and retention levels.
5B2 Customer
Satisfaction and
Loyalty
Customer Value Analysis
❖ The concept of CVA was proposed by
Bradley Gale and Robert Buzzel.
❖ Long-term profitability depends on
market share, which dependent on
customer satisfaction. Customer
satisfaction is often measured by
capturing customer perception.
❖ Hence there is a need to capture the 5B2 Customer
customer perception of the value of the
goods or services they receive. Satisfaction and
Loyalty
Customer Value Analysis
❖ What do customers want?
❖ Are you offer customers good value
relative to your competitors?
❖ Which competitors are performing well
or poorly against these customer wants?
❖ How much your products are worth?
❖ What improvements to your product
would be worth the most to customers? 5B2 Customer
Satisfaction and
Loyalty
 Customer Value Analysis Tools -
Customer Value Map
High Worst Value

Market-Perceived Price
x Company C

x Company B x Company A

Better Value
Low Inferior Superior
Market-Perceived Quality

5B2 Customer Satisfaction and Loyalty Slide 50

 Customer Value Analysis Tools -
Customer Value Map

5B2 Customer Satisfaction and Loyalty Slide 51

Lesson Plan
❖ Capturing Customer Feedback
❖ surveys, informal feedback, complaints
and warranty data, focus groups and
listening posts
❖ Customer value analysis
❖ Methods to improve customer
satisfaction, loyalty, and retention levels.
5B2 Customer
Satisfaction and
Loyalty
Why care about loyalty?
❖ Better conversion rate
❖ Less marketing effort and costs
❖ Higher profits

5B2 Customer
Satisfaction and
Loyalty
Strategies for loyalty?
❖ Reward your existing customers
❖ Loyalty and reward programs
❖ Customized offers based on the history
❖ Personalized relationship
❖ Set expectations and overdeliver

5B2 Customer
Satisfaction and
Loyalty
 5B
Customer
Relationship 01
Customer needs

Management 02
Customer satisfaction and loyalty

03
Customer service principles

Demonstrate strategies that support customer

service principles: courtesy, politeness, smiles,
cheerfulness, attention to detail, active listening,
04
Multiple and diverse customer
management
empathy, rapid response, and easy access for
information and service.
Customer Service Principles

❖ Courtesy, politeness, smiles,

cheerfulness, attention to detail, active
listening, empathy, rapid response, and
easy access for information and service

5B3 Customer
Service Principles
Customer Service Strategies

❖ Top managements sets the tone

❖ For example: Amazon strategy of customer
obsession, as opposed to competitor
obsession
❖ Identify all customer touch points. Each
of these provide an opportunity to show
that the organization cares about them.
❖ Happy employees = happy customers
❖ Listen to your customers and welcome 5B3 Customer
complaints*
Service Principles
 Customer Complaints

Organizational Maturity D Feedback / Complaint Solicitation

C Systematic Response to Complaints

78% B Reactive Response to Complaints

A No Response to Complaints

29%

Resistance to Complaints

5B3 Customer Service Principles Slide 58

 5B
Customer
Relationship 01
Customer needs

Management 02
Customer satisfaction and loyalty

Establish and monitor priorities to avoid or 03

Customer service principles
resolve conflicting customer requirements and
demands. Develop methods and systems for
managing capacity and resources to meet the
needs of multiple customers. Describe the
04
Multiple and diverse customer
management
impact that diverse customer groups can have
on all aspects of product and service
development and delivery.
Customer Conflicts

❖ Allow customers to talk (Active

Listening)
❖ Show you care and don’t jump to
defense
❖ Maintain calm and show willingness to
act. Focus on long term relationship.
❖ Do the Root Cause Analysis
❖ Take Corrective Actions 5B4 Multiple and
❖ Inform the status to customer Diverse Customer
Management
Customer Diversity

❖ Recognize customer diversity

❖ Understand cultural-specific knowledge
❖ Diverse workforce to serve diverse
customer-base
❖ Promote multi-cultural teams

5B4 Multiple and

Diverse Customer
Management