The Importance of Understanding Customer Needs and Expectations
1. # The Customer is the King.
# Quality is what customer wants.
#TQM’s purpose is meeting customer
expectations.
# Customer satisfaction must be the
primary goal of any organization.
Therefore Every employee should
understand the importance of customer.
2. WHO ARE THE CUSTOMERS?
Important people in business.
Not dependent on org. organization
depends.
Not interruption but purpose of work.
Doing a favour when they seek business
but not vice versa.
Life blood of business.
A part of business, not outsiders.
3. TYPES OF CUSTOMERS
Two Types
• Internal customers
• External customers
Internal Customers
• Customers inside the company.
• Every person in the process.
• Each dept is customer of another.
4. External Customer
• Who uses the product
• Who purchases the product
• Who influences the sale of product
CUSTOMER PERCEPTION OF QUALITY
Quality is what customer perceives to be.
Customer change their needs
5. Quality is what customer perceives to be.
customer needs goes on changes
Quality level needs are to be improved
accordingly.
ASQ survey ranked six customer
perceptions.
6. 1. Performance
Fitness for use
Product/ service is ready for use.
Availability
Reliability
Maintainability
2. Features
Secondary character
Extra facilities
7. 3. Service
Provide the service at right time, even though
the customer don’t complaint.
4. Warranty
Represents a promise of a quality product.
Force the org to focus on customer needs.
Forces the org to correct the action system.
It attracts and build the market
8. 5. Price
Nowadays customer is ready to give high
price towards Quality.
Expects to get good product in lower price.
Customer’s perception of value is
continuously changing.
To Succeed the org should identify, verify
the perception of value.
9. 6. Reputation
Customer wills to buy product from a known
company.
Reputation brings market to the Org.
So org should strive for customer for life.
10. ۞ Satisfied customer contributes 2.6 times
as a satisfied customer.
۞ Satisfied customer contributes 17 times
as a dissatisfied customer.
۞ A Dissatisfied customer decreases 1.8
times of a totally satisfied customer.
۞ Dissatisfied customer should be reduced.
Therefore feedback and suggestions
should be monitored.
11. → Discover customer dissatisfaction
→ Identify customer needs
→ Discover priorities of Quality
→ Compare performance with the competition.
→ Determine opportunities for improvement.
13. Set of activities an org uses to satisfy
customers.
BEFORE / DURING / AFTER THE SALE.
Elements of Customer service
Jacques Horvitz and Chan Cudennec-poon ~25
elements of customer service
14. ORGANIZATION
1. identify each market segment.
2. Write down the requirements.
3. Communicate the requirements.
4. Organize processes.
5. organize physical spaces.
15. CUSTOMER CARE
1. Meet the customer’s expectations.
2. Get the customers point of view.
3. Deliver what is promised.
4. Make the customer feel valued.
5. Respond to all complaints.
6. Over-respond to the customer.
7. Provide a clean and comfortable customer reception area.
16. COMMUNICATION
1. Optimize the swap between time and personal
attention.
2. Minimize the number of contact points.
3. Provide pleasant, knowledgeable and
enthusiastic employees.
4. Write documents in customer friendly
language.
19. CUSTOMER RETENTION
Process of retaining the existing customers.
Customer retention is powerful than customer
satisfaction.
Research
60% revenue- existing customer
96% customer don’t complaint- but share with others.
91% unhappy customer- never purchase goods again.
82-95% customer retain if responded properly.
It costs 5 times to attract a new customer.