Lesson 3
LISTENING TO THE VOICE OF CUSTOMERS
Instructor: [Link]. Do Thi Dong
OVERVIEW
Who? How ?
Why? What?
OVERVIEW
- Identifying the major customers
- Customer – driven quality
- Understanding customer expectation
- Customer relationships management
- Measurement of customer satisfaction
- Gathering data from customers
-Readings
- S. Thomas Foster, Managing quality- integrating the
supply chain, 2016
Chapter 5- The voice of the customer
Chapter 7- Quality and innovation in product and process
design (Kano model)
IDENTIFY THE MAJOR CUSTOMERS
Who are customers?
IDENTIFY THE MAJOR CUSTOMERS
Who are customers?
- A customer is the receiver of goods or services.
Typically this involves an economic transaction in which
something of value has changed hands.
- A customer can be internal or external.
Internal Internal
Internal External customer
customer customer
customer
IDENTIFY THE MAJOR CUSTOMERS *
Who are customers?
The common distinction:
A consumer: is the person or organization that
actually uses the product or service.
A decider: is the person or organization that
selects, chooses, specifies and authorizes
payment for the product or service.
A beneficiary: is the person or organization that
benefits from or makes a sacrifice because of
the use of the product or service.
In many cases, the customer may be all three.
IDENTIFY THE MAJOR CUSTOMERS
Internal customers are employees receiving goods or
services from within the same firm.
Supplier 1 Customer 1
Supplier 2 Customer 2
Final
Supplier 3 Customer 3
Customer
Supplier 4
Designing Purchasing Producing Selling to customers
IDENTIFY THE MAJOR CUSTOMERS
Internal customers
- The concept is significant because it dramatically
makes the case that an organization can not
successfully meet the need of its external customers
if each output passed between employees within the
company is deficient.
- Identifying internal customers may be even more
complex, especially when dealing with professional
or senior-level employees.
- It is the best to start by determining the output one
is producing and then identifying the individual to
whom one will pass the output.
IDENTIFY THE MAJOR CUSTOMERS
Receiver of goods or services
Who are customers?
buyers
dealers
wholesalers
External customers retailers
learners patients End users
passengers
audiences
OVERVIEW
- Identifying the major customers
- Customer – driven quality
- Understanding customer expectation
- Customer relationships management
- Measurement of customer satisfaction
- Gathering data from customers
CUSTOMER – DRIVEN QUALITY
Proactive approach to satisfying customer needs
that is based on gathering data about our
customers to learn their needs and preferences and
then providing products and services that
satisfy the customers.
CUSTOMER – DRIVEN QUALITY
OVERVIEW
- Identifying the major customers
- Customer – driven quality
- Understanding customer expectation
- Customer relationships management
- Measurement of customer satisfaction
- Gathering data from customers
CUSTOMER EXPECTATION
- The voice of customer represents the wants, opinions,
perceptions, and desires of the customer.
- Customer expectations are perceived-value that
customers seek from the purchase of goods or services.
CUSTOMER EXPECTATION *
Customers’ expectation can be determined by four key
questions:
1 - What product/service characteristics do customers
want?
2 - What performance level is needed to satisfy their
expectations?
3 - What is the relative importance of each
characteristic?
4 - How satisfied are customer with current
performance level?
CUSTOMER EXPECTATION
Postulating a set of features and characteristics that
customers might want.
A good starting point for building this list can be
Garvin’s eight dimensions of product quality, or
the RATER for service quality.
CUSTOMER EXPECTATION
The Kano Model
When assigning importance weights to customer
attributes, Kano provided an intriguing insight. He
proposed that there are three major types of customer
needs. They are basic needs, performance needs and
excitement needs or delighters.
CUSTOMER EXPECTATION
The Kano Model
Basic needs: Characteristics that customer expects to be
presented.
If they are absent, the customer is deeply dissatisfied.
But if they are present, they do not contribute to customer
satisfaction. These are the base expectations.
Example: Room available for a guaranteed
reservation.
CUSTOMER EXPECTATION
The Kano Model
Performance needs: Characteristics that are typically
articulated by customers as a functionality that they
would desire.
The better the product or service perform on these
attributes, the happier is the customer. They are
customers’ specifications and requirements.
Example: Faster checking-in.
CUSTOMER EXPECTATION
The Kano Model
Excitement needs or delighters: These characteristics
excite customers because they were unexpected and they
are very useful to have.
Example: Telephone number to request for iron
and ironing board which are provided free-of-charge.
CUSTOMER EXPECTATION
CUSTOMER EXPECTATION
CUSTOMER EXPECTATION
The Kano Model
- Meet the minimum requirement for all of the basic
attributes.
- Add value with the performance attributes.
- Infuse a few excitement attributes to really enhance the
experience.
OVERVIEW
- Identifying the major customers
- Customer – driven quality
- Understanding customer expectation
- Customer relationships management
- Measurement of customer satisfaction
- Gathering data from customers
CUSTOMER RELATIONSHIP MANAGEMENT
Four Components of Customer-Relationship Management
OVERVIEW
- Identifying the major customers
- Customer – driven quality
- Understanding customer expectation
- Customer relationships management
- Measurement of customer satisfaction
- Gathering data from customers
MEASUREMENT OF CUSTOMER SATISFACTION
- Customer satisfaction is a measure of how products and
services supplied by a company meet or surpass customer
expectation.
- Customer satisfaction provides a leading indicator of
consumer purchase intentions and loyalty.
- Customer satisfaction index (CSI) can be conducted
within a company, an industry, and a country.
MEASUREMENT OF CUSTOMER SATISFACTION
- Customer retention is measured as the percentage of
customers who return for more product or service.
- Customer retention is an important indicator of
customer satisfaction.
MEASUREMENT OF CUSTOMER SATISFACTION
Customer loyalty:
- A deeply held commitment to rebuy or repatronize a
preferred product/service consistently in the future, thereby
causing repetitive same-brand or same brand-set purchasing
despite situational influences and marketing efforts having
the potential to cause switching behavior (Oliver, 1997).
- Ongoing propensity to buy the brand, usually as one of
several (Ehrenberg and Scriven, 1999)
MEASUREMENT OF CUSTOMER SATISFACTION
MEASUREMENT OF CUSTOMER SATISFACTION
American Customer Satisfaction Index (ACSI)
- An economic indicator that measures the satisfaction of
consumers across the U.S. economy.
- The ACSI was started in 1994 by researchers at the National
Quality Research Center .
- The ACSI interviews about 80,000 Americans annually and asks
about their satisfaction with the goods and services they have
consumed.
- some industries includes e- commerce, personal care products,
soft drinks, beer, consumer electronics, automobiles and household
appliances.
MEASUREMENT OF CUSTOMER SATISFACTION
ACSI American Customer Satisfaction Index Score
OVERVIEW
- Identifying the major customers
- Customer – driven quality
- Understanding customer expectation
- Customer relationships management
- Measurement of customer satisfaction
- Gathering data from customers
ACTIVELY SOLICITED CUSTOMER- FEEDBACK APPROACHES
- Supplier- initiated contact with customers.
- Soft data (ordinal data) is used to measure customer
perception.
- 3 most common arenas:
-Telephone contact: contact customers through
telephone to collect data;
- Focus groups: a group of customers meet together
and discuss the issue.
- Customer service surveys: questionnaire survey, mail
survey, interview, etc.
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
4 steps to developing a useful survey:
Identifying customer requirements
Developing and validating the instrument
Implementing the survey
Analysing the results
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
Customer
satisfaction
survey
Data
collection
method
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
- Questionnaire survey
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
- Questionnaire survey
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
- Questionnaire survey
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
- Questionnaire survey
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
- Questionnaire survey
ACTIVELY SOLICITED CUSTOMER- FEEDBACK
APPROACHES
- Questionnaire survey
PASSIVELY SOLICITED CUSTOMER- FEEDBACK APPROACHES
- Customer- initiated contact
- Soft data (ordinal data) is often used to measure
customer perception
- Most common methods:
+ Customer research cards
+ Customer response lines
+ Website inquiries
PASSIVELY SOLICITED CUSTOMER- FEEDBACK APPROACHES
- Customer research cards: customers receive cards with
products or actively receive from suggestion box. After
filling information, they send them to provider.
- Customer response lines: Many companies provide toll-
free phone lines for customer complaints, questions, and
inquiries. These services are offered by third parties or
can be offered in- hourse
- Website inquiries: Use web pages to gather customer
feedback.
PASSIVELY SOLICITED CUSTOMER- FEEDBACK APPROACHES
- Customer research cards:
PASSIVELY SOLICITED CUSTOMER- FEEDBACK APPROACHES
- Customer research cards:
Key terms
- Customer
- Customer- driven quality
- Customer expectation
- Customer relationship management
- Customer satisfaction
- Customer voice
- External customer
- Internal customer
- Kano model
- Basic need
- Performance need
- Excitement need
Key terms
- Actively solicited customer feedback
- Passively solicited customer feedback
- Focus groups
- Customer research cards
- Customer response lines
- Customer service surveys
- Email survey
- Experiment
- Interview
- Mail survey
- Observation
- Web- based survey
- Questionnaire survey
- Telephone contact
