CHAPTER 16
CUSTOMER
FOCUS
CUSTOMER FOCUS
is an approach or strategy in business that prioritizes
customers’ needs, expectations, and satisfaction above all else.
Customer focus is the lens by which you analyze all your
interactions with your customers,
CUSTOMER SATISFACTION
According to ASQ Quality Glossary, it is the
result of delivering the product or service
that meets customer requirements.
It is vital to keeping customers growing a
business and drives profitability.
CUSTOMER ENGAGEMENT
Refers to customers’ investment in or
commitment to a brand and product
offerings.
Characteristics:
1. Customer retention and loyalty
2. Customers’ willingness to made an effort
to do business with the organization, and
3. Customers’ willingness to actively
advocate for and recommend the brand and
product offerings.
IDENTIFYING CUSTOMERS
The AT&T customer-supplier model, often visualized as a
chain, emphasizes a structured relationship where one entity
(the supplier) provides products or services to another (the
customer) within an organization.
IDENTIFYING CUSTOMERS
Internal Customers External Customers
Is the recipient of another are individuals or
output within the organization organizations outside the
They could be other company who purchase or use
departments or process within its products or services.
the organizations or individual Ex. Retail shoppers,
workers. restaurant diner, bank clients
Ex. The marketing team
requiring graphics or
brochures from the design
team, production team relies
on procurement to get raw
materials on time.
IDENTIFYING CUSTOMERS
Identifying customer-suppliers relationships begins with asking
fundamental questions:
What goods or services are produced by my work
Who uses these products an services
Who do I call, write to, answer questions for
Who supplies the input to my process
CUSTOMERS SEGMENTATION
is the process of dividing a business’s customer base into
distinct groups based on shared characteristics.
These segments help companies tailor their marketing, sales,
and product development strategies to meet the specific
needs of different customer types.
Ex. In demographics, anti aging skincare is segmented to age
40+
QUALITY DIMENSION OF GOODS AND SERVICES
David A. Garvin suggested that products states products have
multiple dimension of quality:
1. Performance
2. Features
3. Reliability
4. Conformance to Standard
5. Durability
6. Serviceability
7. Aesthetics
QUALITY DIMENSION OF GOODS AND SERVICES
For services:
1. Reliability: The ability to provide what was promised, dependably
and accurately.
2. Assurance: knowledge and courtesy of employees
3. Tangibles: physical appearances of personnel an equipment
4. Empathy: degree of caring and individual attention
5. Responsiveness: willingness to help customers and provide
prompt services.
KANO MODEL
Noriaki Kano suggested segmenting customer requirements
into three groups:
1. Dissatisfiers (must haves) requ. that customers expected in a
product
2. Satisfiers (wants) requ. that customers expressly say they
want
3. Exciters (never thought of) new or innovative features that
customers do not expect or anticipate
VOICE OF THE CUSTOMERS
the capture of what customers are saying
about a business, product, or service.
Organizations use a variety of methods to
collect info about customer need and
expectations
VOICE OF THE CUSTOMERS
METHODS
1. Comment card and surveys
2. Focus group
3. Direct customer contact
4. Complaints
5. Social media monitoring
ANALYZING VOICE OF THE
CUSTOMER
Affinity Diagram – technique for gathering and
organizing a large number of facts or ideas.
a visual tool used to organize a large number of
ideas or pieces of information into meaningful
categories or themes based on their common
relationships.
ANALYZING VOICE OF THE
CUSTOMER
LINKING CUSTOMER NEEDS TO DESIGN,
PRODUCTION AND SERVICE DELIVERY
GAP MODEL - is a framework professionals
use to analyze customer satisfaction and
identify areas for improvement.
It improves the production an services based
on the customer needs.
BUILDING A CUSTOMER-FOCUSED ORGANIZATION
Customer-focused organizations focus on four
key process
1. Making sincere commitments to customers
2. Ensuring quality customer contact
3. Selecting and developing customer contact
employees
4. Managing complaints and service recovery
MANAGING CUSTOMER
RELATIONSHIPS
Often called Customer Relationship Management
(CRM), involves building and maintaining long-
lasting connections with customers to enhance
satisfaction, loyalty, and ultimately, drive business
growth.
MEASURING CUSTOMER SATISFACTION AND
ENGAGEMENT
Involves using various metrics and methods to understand customer
experience and engagement with a brand, product, or service.
It allows an organization to do the following:
1. Discover customer perceptions of how well the organization is doing
in meeting customer needs, and compare performance relative to
competitors.
2. Identify causes of diassatifaction and failed expectations as well as
drivers of delight to understand the reasons why customers are loyal
or not to the company.
3. Identify internal work process that drive satisfaction and loya;ty
4. Track trends to determine whether changes actually results in
improvement.
DESIGNING SATISFACTION
SURVEYS
Steps
1. Determine its purpose
2. Select the appropriate survey instrument
3. Develop survey questions
4. Use a suitable scale
ANALYZING AND USING CUSTOMER FEEDBACK
Good customer satisfaction measurements
identifies processes that have high impact on
satisfaction and distinguishes between low
performing processes and those that are
performing well. One way to evaluate customer
satisfaction and use it effectively is to collect
information on both importance and the
performance of key quality characteristics.
(Importance-Performance Analysis or IPA)
ANALYZING AND USING CUSTOMER FEEDBACK
Example
ANALYZING AND USING CUSTOMER FEEDBACK
4 QUADRANTS
1. Keep Up the Good Work (Q1):
High importance, high performance. These attributes are already
performing well and should be maintained or even further enhanced.
2. Possible Overkill (Q2):
High importance, low performance. These attributes are important but
not being performed well. Improving performance in these areas can lead
to increased customer satisfaction.
3. Low Priority (Q3):
Low importance, low performance. These attributes are not particularly
important to customers, and their performance doesn't significantly
impact overall satisfaction. Resources may be better allocated elsewhere.
4. Concentrate Here (Q4):
Low importance, high performance. These attributes are performing well
but are not particularly important to customers. While maintaining
performance, resources may be better invested in other areas.
WHY MANY CUSTOMER SATISFACTION EFFORTS
FAIL
Blanton Godfrey suggests several reason why:
1. Poor measurement schemes
2. Failure to identify appropriate quality dimensions
3. Failure to weight dimensions appropriately
4. Lack of comparison with leading competitor
5. Failure to measure potential and former
customers
6. Confusing loyalty with satisfaction
MEASURING CUSTOMER LOYALTY
Satisfaction is about how pleased a customer is.
Loyalty is about how committed they are.
Net Promoter Score: customer loyalty metric that
measures how likely customers are to recommend a
company, product, or service to others.
Based on one questions, "What is likelihood that
you would recommended us? “.
NET PROMOTER SCORE
Respondents are categorized into three groups:
Promoters (score 9–10): Loyal enthusiasts who will keep buying
and refer others.
Passives (score 7–8): Satisfied but unenthusiastic customers
vulnerable to competitors.
Detractors (score 0–6): Unhappy customers who can damage your
brand through negative word-of-mouth.
Formula:
NPS=%Promoters−%Detractors
THANK YOU
