LECTURE 5

THE VOICE OF
THE CUSTOMER

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

 THE VOICE OF THE CUSTOMER
Customer Driven Quality
Customer –Relationship management
The “Gaps” approach to Service Design
Segmenting Customers and Markets
Strategic Supply Chain Alliances between Customers and suppliers
The Role of the Customer in Supply Chain
Communicating Downstream
Actively Solicited Customer-Feedback Approaches
Passively Solicited Customer-Feedback Approaches
Managing Customer Retention and Loyalty
Customer-Relationship Management Systems
 THE VOICE OF THE CUSTOMER

Customers
InternalCustomers
External Customers or End Users
 CUSTOMER DRIVEN QUALITY
Take proactive approach to satisfying customer needs
Gather data about customers
Provide the products and services that satisfy the customers
Avoid the pitfalls of reactive customer-driven quality
CUSTOMER DRIVEN QUALITY
Reactive customer-driven quality model
 CUSTOMER-RELATIONSHIP MANAGEMENT
CRM -- Customer Relationship Management
Complaint Resolution
Feedback
Guarantees
Corrective Action
 THE “GAPS” APPROACH TO SERVICE DESIGN

Gap
The Differences between desired levels of performance and
actual levels of performance
Gap Analysis
The formal means for identifying and correcting these gaps
THE “GAPS” APPROACH TO SERVICE DESIGN

Service
Quality Model
Gaps
THE “GAPS” APPROACH TO SERVICE DESIGN

Gaps Model
 SEGMENTING CUSTOMERS AND MARKETS

To Segment Markets means to distinguish customers or

markets according to common characteristics
 STRATEGIC SUPPLY CHAIN ALLIANCES BETWEEN
CUSTOMERS AND SUPPLIERS

Strategic Supply Chain Alliances Between Customers and Suppliers

A competitive model
Single Sourcing
Strategic Alliances
THE ROLE OF THE CUSTOMER IN THE SUPPLY CHAIN

The goal of Supply Chain Management is Customer Satisfaction

THE ROLE OF THE CUSTOMER IN THE SUPPLY CHAIN
Segmenting the Supply Chain to define Customers
 COMMUNICATING DOWNSTREAM

Customer rationalization
Annuity relationship
Active data gathering
Passive data gathering
ACTIVELY SOLICITED CUSTOMER-FEEDBACK APPROACHES

TelephoneContact
Focus Groups
Customer Service Surveys
ACTIVELY SOLICITED CUSTOMER-FEEDBACK APPROACHES

Telephone Contact
1. Soft data
2. Biased
3. Difficult
 ACTIVELY SOLICITED CUSTOMER-FEEDBACK APPROACHES

Focus Group Steps

Focus Groups
 Address a single topic or group of
topics
 Draw individuals with similar
characteristics and demographics
ACTIVELY SOLICITED CUSTOMER-FEEDBACK APPROACHES
Customer Service Surveys
1. Identifying customer requirements
2. Developing and validating the instrument
3. Implementing the survey
4. Analyzing the results
 PASSIVELY SOLICITED CUSTOMER-FEEDBACK APPROACHES

Pizzeria Complaint Card

 Customer- initiated
contact
 Result in lower
ratings in quality
than active
collections
PASSIVELY SOLICITED CUSTOMER-FEEDBACK APPROACHES

 Customer research cards

 Customer response lines
 Web site inquiries
 MANAGING CUSTOMER RETENTION AND LOYALTY

 Customer Retention
 Indicator of customer satisfaction
 Percentage of customers who return for more service
 Customer Loyalty
 Instilled by offering a specialized service not available by competitors
 Intangible aspect
 CRM SYSTEMS (CRMS)

 Customer-centric activities
 Enterprise capabilities
 Customer Acquisition
 Sales management
 Customer retention and enhancement
 THE VOICE OF THE CUSTOMER (SUMMARY)
Customer Driven Quality
Customer –Relationship management
The “Gaps” approach to Service Design
Segmenting Customers and Markets
Strategic Supply Chain Alliances between Customers and suppliers
The Role of the Customer in Supply Chain
Communicating Downstream
Actively Solicited Customer-Feedback Approaches
Passively Solicited Customer-Feedback Approaches
Managing Customer Retention and Loyalty
Customer-Relationship Management Systems