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Fundamental Concepts
Customer Driven Organisation
Developed by:
Stephen P. DAlessandro
M.A. (Mrktg), B.A. (Hons.) Bus. Mang, FIM, MCIM, TEP, MIOD
Clive Scerri
B.Com. (Hons.), MIM, MAWOP
This module has been level-rated at MQF Level 5 by the Malta Qualifications Council according to the
European Credit System for Vocational Education & Training - ECVET.
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Living the Customer Care Philosophy
Customer Care is all about listening and
understanding a customer's needs and takingpositive action to help a customer meet theseneeds.
It is the basic building block for any
organisation in the service industry
Irrespective of the status, appearance or
nationality of the customer, the level of service tobe given must be at a par, if not superior to thatprovided by other firms in the service industry
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Living the Customer Care Philosophy
Customers expectations can be very high, often
not even realistic, and yet the challenge is tomeet and indeed exceed customer expectations
Customer care is one of the main factors whichin today's fast-changing business climate has the
potential to provide positive competitiveadvantage
Service quality is determined by the degree towhich a customer's initial expectations arefulfilled - whether real contact with the companyis better than expected, as expected, or less thanexpected
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Living the Customer Care Philosophy
To succeed, organisations must therefore ensure
that all members of staff are committed to a valid
Customer-Oriented Philosophy
Who is the customer? Is it really anybody who calls upon the
services of the company?
Can we segment this market?
What are the criteria to be used to differentiatebetween one customer group and another?
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The meaning of Quality
Total Quality means continually meeting and
exceeding the needs and expectations of
customers - both inside and outside of
organisation
It must become second nature in everything
an organisation does, indeed it must be seen
in every facet of operations
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The meaning of Quality
As competition becomes more fierce, looking
after existing customers is itself a challenge
There are always plenty of organisations which
are prepared to go to all the trouble and effort ittakes to meet and exceed the customers'
expectations
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The meaning of Quality
Quality evolution
The first stage of quality, and therefore the initial
focus of quality programmes, was to stop poor
products going to customers This required control - quality control - and the
effort was internal
Quality inspectors were the key players whose
job was to find defects after production
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The meaning of Quality
Quality evolution
It is a reactive approach to quality, but does
provide useful feedback on areas of deficiency
and non-conformity, so that improvements canbe made.
It also introduced the concept of the definition of
a quality standard and measurement against this
standard
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The meaning of Quality
Quality evolution
At this stage, quality awareness within an
organisation is basic
It is the first level in most organisations quest forquality improvement programmes
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The meaning of Quality
Quality evolution
The growth of quality awareness moves some
companies from quality control to quality
assurance This seeks to avoid customers receiving
products or services of inferior or substandard
quality
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The meaning of Quality
Quality evolution
A quality assurance programme is a more
proactive approach, focusing on processes
rather than product It requires definition and execution of systematic
actions in order to ensure that a product or
service will satisfy its quality requirements
This is often called 'designing quality in' At this stage quality is still in the province of
experts - 100% of the quality responsibility lies
with 5% of the work force
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The meaning of Quality
Quality evolution
Over the past 30 years, leading-edge firms
implemented Total Quality programmes, where
the responsibility for quality is with the wholework force
Each employee is responsible for the quality of
their own job, their own actions
A TQM programme empowers and rewardsevery person to add value to a company's
products and services
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The meaning of Quality
Quality evolution
It unites all groups with a common goal and a
common language, and it provides a common
framework for the company to sustaindifferentiation
Each approach builds on the successful practice
of the preceding approaches
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The meaning of Quality
What is Quality?
What is really meant by quality and how can it be
achieved?
One of the obstacles in implementing qualityprogrammes is the differing ideas of what
quality means.
It is not just "meeting the specification" or
"fitness for use" It is not even "being the best"
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The meaning of Quality
What is Quality?
What is really meant by quality and how can it be
achieved? (cont.)
Of course all these elements may be involved,but the marketing context of quality is
understanding what your customers want and
exceeding their expectations
And its' not something that only applies to theend products or services, quality is of value in
all activities within the company
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The meaning of Quality
What is Quality?
Achieving excellence is a never-ending process.
Customers expect even better service so
organisations improve their service, which in turnraises customer expectations even higher.
This means the changes that take place will
become routine and systematicsome
changes will be achieved rapidly, other willtake longer
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The meaning of Quality
What is Quality?
Tom Peters' and Nancy Austin's seminal work, A
Passion for Excellence, explain that winners
compete by delivering a product that supplies
superior value, rather that one that costs less
Source: Peters T., Austin N. 1994, A Passion for ExcellenceThe Leadership Difference,
Profile Books
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The meaning of Quality
What is Quality?
In markets that are full of players, products and
services become commodities - there is little
opportunity for companies to make themselves
stand out
The only successful long-term differentiator is
sustained quality and this is compounded by
customers' changing expectations
What may have been acceptable a few years
ago is no longer acceptable today
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The meaning of Quality
What is Quality?
The development of better and more consistent
quality products raises customers expectations
Quality ideals and actions bring many benefits -
improved image, improved productivity, cost
reductions, improved morale, more effective
services to customers - which all lead to higher
customer satisfaction and therefore morecommitted customers who buy time and again
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The meaning of Quality
What is Quality?
Improving personal standards of performance is
the best investment.
An essential element is the ability to create a
culture within the firm where people aim to
have the satisfaction of saying, I did my best
and the customer was fully satisfied with the
service Keeping the highest standards of performance is
an achievement and calls for recognition
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The meaning of Quality
What is Quality?
Frontline staff need to learn to be nice to
themselves and look after their positive can do
attitudes
Its hard to be nice to customers, if you cant
be nice to yourself