1. Slide 5.1  1999 South-Western College Publishing Chapter 5 Focusing on Customers

2. Slide 5.2 Importance of Customer Satisfaction n Four key goals of business – to satisfy its customers – to achieve higher customer satisfaction than its competitors – to retain customers in the long run – to gain market share

3. Slide 5.3 American Customer Satisfaction Index n Measures customer satisfaction at national level n Introduced in 1994 by University of Michigan and American Society for Quality Control n Continual decline in index from 1994 through 1997 suggest that quality improvements are not keeping pace with consumer expectations

4. Slide 5.4 Customer-Driven Quality Cycle measurement and feedback Customer needs and expectations (expected quality) Identification of customer needs Translation into product/service specifications (design quality) Output (actual quality) Customer perceptions (perceived quality)

5. Slide 5.4 Customer-Driven Quality Cycle measurement and feedback Customer needs and expectations (expected quality) Identification of customer needs Translation into product/service specifications (design quality) Output (actual quality) Customer perceptions (perceived quality) Transformation Process

6. Slide 5.6 Identifying Customers Requirements and feedback Requirements and feedback Your Suppliers Your Processes Your Customers InputsOutputs

7. Slide 5.7 Key Dimensions of Service Quality n Reliability n Assurance n Tangibles n Empathy n Responsiveness

8. Slide 5.8 Kano Model of Customer Needs n Dissatisfiers: expected requirements Order qualifiers Order qualifiers n Satisfiers: expressed requirements n Exciters/delighters: unexpected features Order winners Order winners

9. Slide 5.9 Customer Listening Posts n Comment cards and formal surveys n Focus groups n Direct customer contact n Field intelligence n Study complaints n Monitor the Internet

10. Slide 5.11 Customer Relationship Management n Commitments to customers n Customer-focused service standards n Training and empowerment n Effective complaint management

11. Slide 5.12 Measuring Customer Satisfaction n Discover customer perceptions of business effectiveness n Compare company’s performance relative to competitors n Identify areas for improvement n Track trends to determine if changes result in improvements

12. Slide 5.13 Performance-Importance Comparison Performance Importance Low High Who cares?Overkill Vulnerable Strength Low High