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Chapter 8 Customer Value Strategy

This document discusses customer value strategy and customer satisfaction. It defines internal and external customers and notes that customer satisfaction is key to business success. Customer satisfaction is not absolute but rather a feeling, and it enhances loyalty. The document outlines various approaches to measuring customer satisfaction, including feedback systems and surveys. It also identifies key determinants of customer satisfaction for both physical products and services. Customer focus involves meeting or exceeding customer expectations through product design and information provision. Quality assurance aims to ensure customer service meets desired outcomes through reliability, competence, delivery quality and resolving complaints.

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Kaye Joy Tendencia
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1K views5 pages

Chapter 8 Customer Value Strategy

This document discusses customer value strategy and customer satisfaction. It defines internal and external customers and notes that customer satisfaction is key to business success. Customer satisfaction is not absolute but rather a feeling, and it enhances loyalty. The document outlines various approaches to measuring customer satisfaction, including feedback systems and surveys. It also identifies key determinants of customer satisfaction for both physical products and services. Customer focus involves meeting or exceeding customer expectations through product design and information provision. Quality assurance aims to ensure customer service meets desired outcomes through reliability, competence, delivery quality and resolving complaints.

Uploaded by

Kaye Joy Tendencia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE TQM (Operation Management)

CHAPTER 8
CUSTOMER VALUE STRATEGY
Objectives:

1. Differentiate between internal and external customer


2. Describe customer satisfaction and its nature
3. define customer focus
4. Explain customer service

Identifying Customers
There are two distinct types of customers namely:
Internal Customers are within the company. They are the colleagues working
together for delivering a service or product for the external.
External Customer may be an individual or an enterprise that hires or purchases
the product or services from another person or business in exchange of money.
External Customers can be defined in many ways, such as:
1. The one who use the product or service.
2. The one who purchases the product or service.
3. The one who influences the sale of the product or service.
One of the most important factors for the success of an enterprise is its
customers.
Without them, a business cannot exist.
Customer Satisfaction
It is not an absolutely measures but more of a feeling or attitude.
It enhances Customer loyalty, which is the feeling of attachment to affection for a
company’s people, product or services.
Loyalty generates constant purchases and increased revenues, therefore leading
to organizational excellence.
MODULE TQM (Operation Management)

Satisfaction can be expressed in many ways, like positive word of mouth, giving
compliments to the service provider and brand loyalty to the service organization.
Customer Satisfaction is defined as the number of customers, or percentage of
total customers, whose reported experience with a firm, its products or its services
exceeds specified satisfaction goals.
Customer delight arises when perceptions exceed expectations. External customer
satisfaction shows the extent to which the organization:
1. Uses methods for determining and monitoring external customers’
perceived quality and value.
2. Uses customer feedback to improve product/service quality.
3. Handles complaints, resolve them and uses complaint information for quality
improvement.
4. Measures performance against customer targets.
5. Compares the customer satisfaction results with that of main competitors.
A Summary of Ways to Improve Internal Customer Satisfaction is Given Below:
1. Treat employees as the company would treat its customers.
2. Share the company vision.
3. Surpass their expectation.
4. Take feedback and suggestions.
5. Show appreciation for good work.
Customer Satisfaction Methods
1. Encouraging face-to-face dealings with customers.
2. Respond to messages promptly and keep the clients informed.
3. Being friendly and approachable by customers.
4. Have a clearly-defined customer service policy.
Approaches To Customer Satisfaction
MODULE TQM (Operation Management)

1. Regular Customer feedback system


2. Market Research
3. New or Last Customer survey
4. Focus Groups
5. Customer Visits
6. Front Line personnel
7. Critical Incidents technique
Determinants of Customer Satisfaction
1. Key Indicators for Physical Products
a. Reliability
b. Aesthetics
c. Adaptability
d. Usability
e. Functionability
f. Appropriateness
2. Key Indicators for Services
a. Friendliness/Courteousness of employees
b. Safety/Risk of Service
c. Billing/Invoicing procedure
d. Responsiveness to Requests
e. Appearance of Physical Facilities
f. Approchability of the Service Provider
g. Willingness to Listen to Customer
h. Honesty and an ability to communicate in clear language
MODULE TQM (Operation Management)

Customer Focus
Focusing on the customer involves designing products or services that meet or
exceed the customers’ expections.
This involves the product itself, its functionality, attributes, convenience and even
the means by which the information about a product is received by a client.
Customer Service
Quality Assurance means developing operational controls to ensure that the
results match the desired outcomes.
Customer Service operations are designed to keep customers satisfied while
protecting the organization.
Customer Service Quality Goals
Customer Service means helping customers solve problems.
The company can define quality assurance in customer service as a means to
evaluate the characteristics that make customer service effective.
Reliability
The quality assurance system must survey customers regularly to determine their
expectations so the system can match against promises and deliveries.
For use a gauge of reliability, the survey must specifically ask how well the company
service met the customers’ expectations.
Competence
Customers expect competent delivery of their services, and the definition of quality
assurance includes tracking competence.
Quality assurance systems evaluate competence by training and results.
Delivery
Customers expects reliable and competent delivery in an easily accessible form.
Customer Service Delivery is typically over the phone or others means of electronic
communication.
MODULE TQM (Operation Management)

Solutions
Customers are mainly interested in solutions to their problems.
Quality assurance includes documenting customer complaints, tracking the actions
taken to resolve them and surveying customers on their satisfaction with the result.
The Quality assurance system compares high levels of reliability, competence and
delivery quality with the level of customer satisfaction. The system checks for
discrepancies.

For further discussion please refer to the link provided: CUSTOMER VALUE STRATEGY
https://www.youtube.com/watch?v=9I2baWR-rqg
For further discussion please refer to the link provided Determinants of Customer Satisfaction
https://www.youtube.com/watch?v=8EeiY24AJdc

Reference:
Total Quality Management (OBE)
Prof. Angelita Ong Camilar-Serrano,DBA(candidate

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