TQM BBA 8 WK 3 - The Management System Focusing on...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
The Management System Focusing on Customers Instructor: Muhammad Naveed BBA-BAHRIA
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Importance of Customer Satisfaction and Loyalty Customer satisfaction is important, modern firms need to look further. Achieving strong profitability and market share requires loyal customers – those who stay with company and make positive referrals. “Satisfaction is an attitude ; loyalty is a behavior Loyal customers spend more, are willing to pay higher prices, refer new clients, and are less costly to do business with. It costs five times more to find a new customer than to keep an existing one happy. A firm cannot create loyal customers without first creating satisfied customers.
Background image of page 2
Think 1. Customer wants and needs drive competitive advantage, and statistics show that growth in market share is strongly correlated with customer satisfaction. 2. A firm cannot create loyal customers without first creating satisfied customers. 3. Satisfaction and loyalty are influenced greatly by service quality, integrity, and the relationships that organization build with customers. 4. As one small business owner stated, “we build customer loyalty by telling our customers the truth, whether it is good or bad news”
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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) PERCEIVED QUALITY is a comparison of ACTUAL  QUALITY to EXPECTED QUALITY
Background image of page 4
Think Many organizations still focus more on processes and products from an internal perspective, rather than taking the perspective of the external customer.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Leading Practices Successful organizations in every industry engage in a variety of customer-oriented practices that lead to profitability and market share. The generic practices are: Define and segment key customer groups and markets (differences among customer groups allow organizations to tailor their approaches to unique needs of the group) Understand the voice of the customer (VOC) (short and long-term customer needs and expectations) and employ systematic processes for listening and learning from customer. Understand linkages between VOC and design, production, and delivery processes.
Background image of page 6
Leading Practices (Cont.) Build relationships through commitments ( promote trust and confidence ); provide easy accessibility to people and information; set effective service standards; train customer contact employees; and follow-up on products, services, and transactions. Effective
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/27/2011 for the course MANAGEMENT 346 taught by Professor Tahirmasood during the Spring '11 term at Bahria University.

Page1 / 35

TQM BBA 8 WK 3 - The Management System Focusing on...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online