Lecture 14 Flashcards
Customers tell ____ as many people about bad experiences as good experiences.
BAD
A dissatisfied customer tell ________ people about the bad experience.
8 to 10
___% of upset customer will remain you customer if you resolve the complaints satisfactory
70
It is easier to get customer to repeat than…
It is to find new business
Service firms rely on repeat customer for __________ of their business
85% to 95%
____% of new product and service ideas come from customer ideas.
80
The cost of keeping an existing customer is…
a sixth of the cost of attracting new customer.
What is a customer?
A customer is the receiver of goods or services.
Internal customers
External customers
End user
Voice of a Customer
Represents the wants, opinions, perceptions, and desires of the customer.
Customer-Driven Quality Approach
A proactive approach to satisfying customer needs.
Based on gathering data about our customers
Quality Function Deployment (QFD) or “House of quality”
Translates customer wants into a finished product design.
Pitfalls of Reactive Customer-Driven Qualtiy
Customer’s needs are always changing.
Customer requirements increase at a faster rate than quality and service improvement.
Customer-Relationship Management
Complaint resolution
Feedback
Guarantees
Corrective action
Three common types of complaints
Regulatory complaints
Employee complaints
Customer complaints
Compliant Resolution
Compensate people for losses.
Apologize to the customer (contrition).
Make it easy for the complainant to resolve his or her problem.
Two main types of Feedback
Feedback to the customer
Feedback to the firm as a basis for process improvement
Guarantees
Outlines the customer’s rights.
Both a design and an economic issue that must be addressed by all companies before the first sale occurs.
To be effective, guarantees should be:
Unconditional Meaningful Understandable Communicable Painless to invoke
The Gap
Refers to the differences between desired levels of performance and actual levels of performance.
Gap Analysis
The formal approach for identifying and correcting these gaps.
Key objective of Gap Analysis
Understanding the difference between the managerial perception and the customer’s perception of what the customer wants.
Segment Markets
To distinguish customers or markets according to common characteristics.
Four types of customers
Those customers we already have and can’t lose.
Those customers we could lose easily.
Those customers we could gain with minor product changes.
Those customers we can’t get.
Customer Rationalization
Results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.
Annuity Relationship
An annuity relationship is one in which the customer provides a long-term, steady income stream to the provider.
Gathering Data from Customers
Active data gathering
Passive data gathering
Actively solicited customer feedback includes:
all supplier initiated contact with customers
Three most common arenas of active gathering
Telephone customers
Conducting focus groups
Sending out surveys
Types of Data
Soft Data
Hard Data
Ordinal Data
Soft Data
Phone contacts
Focus groups
Survey results
Hard Data
Height
Weight
Volume
Speed
Ordinal Data
Ranked data
Passively Solicited Customer Feedback
Customer initiated contact, such as filling out a restaurant complaint card, calling a toll-free complaint line, or submitting an inquiry via a company’s Web site.
Examples of Passive Feedback
Customer research cards
Customer response lines
Web site inquires
Customer Retention
Measured as the percentage of customers that return for more service.
Customer Loyalty
Can be instilled by offering specialized service not available from competitors.
Quality Function Deployment (QFD)
A matrix used to depict customer requirements. used to capture the voice of the customer and translate it into technical information that an organization can use in order to create or improve a product.
