Emerging quality concepts: customer delight and loyalty

with Kano’s Model, and accreditation for service providers

Source: www.talent-technologies.com/new/wp-content/uploads/2009/06/customer-focus
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HK International Airport (Terminal 2)

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 Building Quality through Customer Focus
Is Customer Satisfaction Enough?
90%

1. The case with Cadillac and

AT&T in the 1980's, when 80 to
ABC
ABC LtdLtd.
90 percent of their customers
rated themselves either
Satisfaction satisfied"or "very satisfied",
70% Yet both were losing market
Index share.

80.4% 60% 2. After analyzing the data, they

Customer Satisfaction Measurement
found that only 40 to 60% of
"satisfied" or "happy"
50%
customers were very willing to
repurchase, but that
percentage shot up to 80 to 90%
when they were "very satisfied"
17 or "delighted" customers.
© The Leadership Factor Ltd

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Source: www.thatscustomerfocus.com 17
Discussion:
1. If satisfaction is not enough, what’s next? Delight
2. What term can be used to describe customer? Customer delight
3. What to be focused? Behavior of customers such as 3Rs or
repeatability/ references/ recommendations?
4. Should we move from reactive (waiting for a regulation, or a
customer satisfaction survey) to proactive (i.e., a process of building
customer delight)? Beginning of the term Customer Relation
Management (CRM)
5. One third of customers are loyal due to consistent, positive service
experiences with their provider. 22% refuse to do business with any
business that does not provide excellent customer service. 60%
include the service experience when making buying decisions and
70% are willing to pay more for consistent excellent customer
service.

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 More on theTruth about “Customers”
• Ten times more expensive to acquire a new customer than
to keep a current customer
(Reference: Bain & Company Research)
• Customers are lost primarily due to indifference (66%)
versus dissatisfaction (14%)
(Reference: WSJ)
• Customer Delight means more than just feeling great about
a product or service. Customer delight means the customer
demonstrates high return and recommend rate
behavior. Using Bart Allen Berrys Customer Satisfaction
Behavior Curve (1 to 10 scale) customer delight correlates
with the Return and Recommend rate percentages range
from 65% to 90%, meaning that delighted customers will tell
six to nine people out of ten about their satisfaction
experience, and it is guaranteed that some of these folks
will also tell others.
(Source: www.whatcustomerswant.org)
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Source: www.ipsosloyalty.com
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Source: www.ipsosloyalty.com
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Source: www.ipsosloyalty.com
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 What is Customer Delight ? It's creating a feeling of "WOW" !
1. Delighted customers are those where you anticipate their needs, provide
solutions to them before they ask and where you are observing to see if
new and/or additional expectations are about ready to be required.
2. When you create "WOW" you have planted a very special peg in the
memory of the customer that is easy to recall. It creates the possibility of
the customer telling the story about their "WOW" experience to many
friends, associates and strangers. It creates the free advertising that you
can't place a momentary value to.
3. Customer delight brings customers coming back for more. It causes new
customers to come. It takes to out of the realm of being the same as all
the others and places you clearly at the top.
4. Understanding of who the internal & external customers are, recognizing
the relevancy of customer needs and the relationship these needs have
in supporting customer delight, providing understanding and
communication of the customer delight definition. Leading to the
importance of Knowledge Management
Source: http://customerservicereader.com
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How to create customer delight
• Customer Delight: the process of ensuring that every
customer interaction consistently demonstrates your
commitment to exceeding customer expectations.
• Customer Delight can accelerate your profits and can
help create a solid foundation for your company's future.
You probably have customer satisfaction procedures, but
today this isn't good enough with the amount of
competition and low customer loyalty companies face.
Add the wow! factor to your company and you can see
profitability, customer loyalty and employee enthusiasm
increase.
Source: www.cpsonline.info/

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Source: www.associationworks.com
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1. Accreditation is a process in which certification of
competency, authority, or credibility is presented.

2. With the advent of medical tourism, international

healthcare accreditation of hospitals located in countries
around the world has increasingly grown in importance.
Joint Commission International, or JCI, is one of the
groups providing international healthcare accreditation
services to hospitals around the world and brings income
into the U.S.-based parent organization. This not-for-profit
private company currently accredits hospitals in Asia,
Europe, the Middle East and South America, and is
seeking to expand its business further).

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Nadcap (formerly NADCAP, the National Aerospace and Defense Contractors Accreditation
Program) is a global cooperative standards-setting program for aerospace engineering, defense
and related industries. It aims to provide international, unbiased, independent manufacturing
process and product assessments and certification services for the purpose of adding value,
reducing total cost, and facilitating relationships between subscribers and suppliers.

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Customer Delight, Quality, Human Capital Risk, and Innovation

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