Best Practices for Customer Focus

Bill Voravuth
Areté Partners

Best Practice Sharing

Cat 3: Customer
and Market Focus

2009
TQA Criteria
3
3.1
3.2

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3:

3.1
1

3.1
2

3.1
2

3.1
3

3.2
1

3.2
2

3.2
3

3.2

Best Practices from MBNQA Winners

2009
TQA Criteria

•
3.1
1

HOW do you identify customers, customer groups, and market segments?
HOW do you determine which customers, customer groups, and market
segments to pursue for current and future products and services?
HOW do you include customers of competitors and other potential customers
and markets in this determination?

Saint Luke’s Hospital

Customer Segmentation Process
• Review
customer data
obtained from
Listening and
Learning
Process (LLP)


Market Segmentation Process
R D
E Research and Analysis Department Surveys
S A PA
E External Data Internal Data T AOC
A
A Focus
R Listening / Learning Strategies
C Groups
H External
Formal Informal S Database
P
R Qualitative & Quantitative Research Tools O Internal
Database
O U
C NurseLine
E R Complaint
S C Management
S
ENVIRONMENTAL ANALYSIS DOCUMENT E Other


Market Segmentation Process
P Q
L Environmental Analysis U Different
A E Needs
N
SLH Leadership SLHS Leadership S Emerging?
N
I T
N Leadership Retreats I
O Different
G
N Key Satisfiers
Determination is Made
P S Emerging?
R
O Segmentation of Customers A
C Different
S
E Segmentation
K
S and Value?
S E
D

PVHS
2008 MBNQA Winner

 PVHS determines customers and market segments through
Step 2 & 3 of Strategy Development & Deployment Process
 From analysis of
 Healthcare service utilization
 Market share
 Outmigration data
 PVHS and competitor volume projections
 Two key customers: Patients and the Community
 Patients segmented into Inpatient, Outpatient, and Emergency
Department (ED) based on location of care
 Community segmented into Primary and Secondary Service
Areas based on geography and service utilization
 PVHS defines its market areas by geography [P.2a(1)], based on
a detailed analysis of zip code-based service utilization data
that incorporates customers of competitors and other
potential customers

Cargill
2008 MBNQA Winner

 Market segments: FOOD, FEED, FERMENTATION
 Customers segmented by 10 Product Lines
 Product Line Leader determines target customers
 Uses Customer Segmentation Matrix as tool
 All customers, current or potential, are evaluated
periodically using these attributes
 Sweetener Portfolio
 Corporate Culture
 Complexity
 Financial
 For each attribute, a ranking of low (0) to high (5) is
assigned for each individual customer
 Pursue customers with high ranking scores

MBNQA
Winners

MERCY 2007 MBNQA Winner

ARDEC 2007 MBNQA Winner

PRO-TEC 2007 MBNQA Winner

MBNQA
Best Practices Summary Winners

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2009
- TQA Criteria

•
3.1
2

Sharp HealthCare
2007 MBNQA Winner

- Sharp HealthCare
2007 MBNQA Winner

- CAT Financial
2003 MBNQA Winner

TM: Territory Manager MC: Merchandising Consultant

- ISS
2008 MBNQA Winner

2009
TQA Criteria

•
3.1
2

HOW do you use the voice of the customer to determine key customer
requirements, needs, and changing expectations (including product and service
features) and their relative importance to customers’ purchasing or relationship
decisions? HOW do your listening methods vary for different customers, customer
groups, or market segments? HOW do you use relevant information and feedback
from current and former customers, including marketing and sales information,
customer loyalty and retention data, customer referrals, win/loss analysis, and
complaint data for purposes of planning products and services, marketing, making
work system and work process improvements, and developing new business
opportunities?

- Cargill
2008 MBNQA Winner

Cargill
2008 MBNQA Winner

Direct Sales Contact Product Requirement Production Plan

Customer Service Service Requirement Planning of Service
Representative Contact Delivery Requirement Marketing Plan
Technical Service Competitive Factors New Business Plan
R&D Contact
Expert Panel Strategic Directions Strategic Plan

Customer Audit Future Requirement Sales Strategy
Relative Importance New Product Plan
of Purchasing
Decision

- PVHS
2008 MBNQA Winner

PVHS
“ ” 2008 MBNQA Winner

CSSC: Customer Service Steering Committee BSC: Balanced Score Card SDD: Strategy Development & Deployment

PVHS
2008 MBNQA Winner

 Customer Service Steering Committee (CSSC) determine key
customer requirements for Patients and Community via the
Avatar patient satisfaction survey and community health
survey, with verification from other VOC information
 Monthly, CSSC reviews VOC information such as:
 Avatar patient satisfaction, dissatisfaction, loyalty, and
retention data from former patients
 Avatar priority matrix, which ranks patient survey items by
their relative importance to customers’ healthcare
purchasing or relationship decisions
 Complaints and compliments from current and former
patients
 Market data related to healthcare service
utilization, consumer preferences/loyalty, and community
health needs
 This review enables the organization to identify changing
expectations

PVHS
2008 MBNQA Winner

 Enhance Healthcare service design [6.1a(2)]

 Business Decision Support Process [6.1a(2)]

 Strategy Development & Deployment Process [2.1a(1)]

 Evaluation and Improvement of key access mechanisms [3.2a(4)]

 Evaluation and Improvement of work systems & processes [6.2b]

2009
TQA Criteria

•
3.1
3
“
”

HOW do you use voice-of-the-customer information and feedback to become
more customer-focused, to better satisfy customer needs and desires, and to
identify opportunities for innovation?

ARDEC
2007 MBNQA Winner

MDT: Market Development Team APO: ARDEC Project Officer IPT: Integrated Product Team

PVHS
2008 MBNQA Winner

CSSC: Customer Service Steering Committee BSC: Balanced Score Card
SDD: Strategy Development & Deployment

PVHS
2008 MBNQA Winner

 Through SDD and BSC which enable continuous
improvements and enhancing of services
offerings, align and monitor progress via KPIs
deployment

 Customer Focused Improvement Initiative

2009
TQA Criteria

3.1 •
4

HOW do you keep your customer and market listening and learning methods
current with business needs and directions, including changes in your
marketplace?

Sharp Health Care
2007 MBNQA Winner

 Ensuring accuracy of data, improving efficiency, cross-
validating data sources
 Comparing past predictions to actual performance
 Validating against industry benchmarks
 Conducting annual Executive Steering assessments of key
strategic challenges
 Performing industry analyses and out migration studies by
the Strategic Planning Department
 Analyses are made available to employees via
presentations, administrative teams, and Sharp’s Strategic
Planning Intranet

ARDEC
2007 MBNQA Winner

 Through our benchmarking activities, industry conferences
and Enterprise Excellence initiatives
 Through continuous contact with our customers specifically
asking about the development of new channels of
communication which enable us to build new relationships at
all levels of the customer organization to enhance our
understanding of their needs
 Through updating our customer account list quarterly to
ensure capture new customer data including any keep
personnel changes in our customers’ organizations

PVHS
2008 MBNQA Winner

 CSSC annually evaluates the organization’s listening and
learning methods relative to best practices, Avatar
feedback, new technology, environmental changes, and new
healthcare service offerings
 The committee identifies, prioritizes, and implements
improvement opportunities
 PVHS has increased the frequency of its consumer awareness
survey

2009
TQA Criteria

•
3.2
1

HOW do you build relationships to acquire customers, to meet and exceed their
expectations, to increase loyalty and repeat business, and to gain positive
referrals?

CAT Financial
2003 MBNQA Winner

Mercy Health System
2007 MBNQA Winner

Sharp Health Care
2007 MBNQA Winner

City of Coral Spring
2007 MBNQA Winner

2009
TQA Criteria

3.2 •
2

HOW do your key access mechanisms enable customers to seek
information, conduct business, and make complaints? What are your key access
mechanisms? HOW do you determine key customer contact requirements for each
mode of customer access? HOW do you ensure that these contact requirements
are deployed to all people and processes involved in the customer response chain?

Very Important Principles

PVHS
2008 MBNQA Winner

 Key Contact Requirements for all access mechanisms adhered
to PVHS Behavior Standards [P.1-2] ;
established, deployed, and annually evaluated by the
Workforce Focus Team [5.1a(1)]

PVHS
2008 MBNQA Winner

 Key Contact Requirements for all access mechanisms adhered to
PVHS Behavior Standards and are deployed through:
 Formal training for all managers and supervisors through the
learn and Lead Program [5.1b(2)]
 An acknowledgement to abide by the Behavior standards
signed by all job applicants and members of the workforce
 Adherence check at annual staff performance review [5.1a(3)]
 Linkage of R&R program to Behavior Standards [5.1a(3)]
 Senior Management Group presentation at New Employee
Orientation and employee/volunteer forums
 Visual displays throughout health system facilities, including
computer screen savers
 “How We’re Making PVHS World Class”
information, distributed and posted throughout the health
system
 Re-engagement of staff through ”We’re Here for You”
campaign [3.1a(3)]

Cargill
2008 MBNQA Winner

 CCM customers have various access mechanisms to select from
based on need and expectations
 Sales submits a new customers to the Customer Service Reps (CSR)
 CSR contacts customer to verify requirement, expectations, and
preferred access mechanism
 Customer requirements are entered into the MasterCard system
 The MasterCard is used to communicate expectations to all
personnel involved in customer contact
 The MasterCard system automatically prompts the CSR to verify
requirements annually
 Key access mechanism requirements are reviewed when customer
requirements change or a new access mechanism is added or
enhanced
 The CCM access mechanisms are reviews annually during the
Annual business Planning process

2009
TQA Criteria

•
3.2
3

(*)
(*)

HOW do you manage customer complaints? HOW do you ensure that complaints
are resolved effectively and promptly? HOW do you minimize customer
dissatisfaction and, as appropriate, loss of repeat business and referrals? HOW are
complaints aggregated and analyzed for use in improvement throughout your
organization and by your partners?

Iredell- Statesville
2008 MBNQA Winner

Cargill
2008 MBNQA Winner

 CCM uses a Customer Relationship Tracking (CRT) for managing
customer complaints
 The basic steps are to record the
incident, investigate, identify, review and implement correction
actions
 All incidents must be entered into the CRT system within 24 hours
of notification to raise awareness of potential failure within CCM
 If the incident is a rejection or repeat failure requiring a Root
Cause Analysis, the process must be initiated within 24 hours of
notification with all non-conformances classified into customer
incidents, complaints, or rejections
 CRT system allows deep-dive analyses to identify trends and set
priorities, monitor non-conformances through a key metric called
the Customer Quality Index- a weighted index based on customer
incidents, complaints, rejections, and total shipments for
evaluation of product lines, business units, and plant performances
on a monthly basis via the CCM Scorecard

2009
TQA Criteria

•
3.2
4

HOW do you keep your approaches to building relationships and providing
customer access current with business needs and directions?

Sharp Health Care
2007 MBNQA Winner

 As a means to continuously evaluate its approach and remain
agile in building relationships and providing customer/partner
access, Sharp employs the following key methods:
 Ad hoc focus groups
 Best practice research
 Consumer awareness/perception/utilization research
 CRM
 Discharge phone calls
 Disenrollment surveys
 Employer and broker relations
 Managed care retention data
 Data from these methods are used for changes in
patient/customer access and relationship building

PVHS
2008 MBNQA Winner

PVHS evaluates approaches to building relationships and
providing customer access in order to remain current with
healthcare service needs and directions:
 At an annual planning retreat, the VP of Marketing and
Strategic Planning Department and the Marketing
Department evaluate the format and content of key
customer communication tools, such as the public web
site and community newsletters
 The department increased the frequency of the consumer
awareness survey from once every three years to once
every year for valuable input in Strategic Planning and
Development
 During SDD Step 2, the VP of MSP works with the
Director of Business Development and Outreach to
identify rural areas in need of healthcare services

2009
TQA Criteria

•
3.2
1

(*)
HOW do you determine customer satisfaction, dissatisfaction, and loyalty? How do
these determination methods differ among customer groups? HOW do you ensure
that your measurements capture actionable information for use in exceeding your
customers’ expectations? HOW do you ensure that your measurements capture
actionable information for use in securing your customers’ future business and
gaining positive referrals, as appropriate? HOW do you use customer satisfaction
and dissatisfaction information for improvement?

2009
TQA Criteria

•
3.2
2

HOW do you follow up with customers on the quality of
products, services, and transactions to receive prompt and actionable
feedback?

2009
TQA Criteria

•
3.2
3

HOW do you obtain and use information on your customers’ satisfaction relative
to their satisfaction with your competitors? HOW do you obtain and use
information on your customers’ satisfaction relative to the customer satisfaction
levels of other organizations providing similar products or services, and/or
industry benchmarks?

2009
TQA Criteria

•
3.2
4

HOW do you keep your approaches to determining satisfaction current with
business needs and directions?

THANK YOU

QUESTIONS & ANSWERS

- AVI-TECH
2008 SQA Winner

- HDB
2008 SQA Winner

ST Engineering
2007 SQA Winner

Singapore Police Force
2007 SQA Winner

AVI-TECH 2008 SQA Winner

ST Engineering 2007 SQA
Winner

Best Practices for Customer Focus

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