Transcript Creating Value Through Customer Satisfaction and Quality

Creating Value Through
Customer Satisfaction and
Quality
Did you know?
If 99% service was acceptable
22,000 checks would be debited from the
wrong bank each hour
500 incorrect surgical operations would be
performed each week
35,000 newborns would be dropped on
the delivery floor each year
Value and Quality
Value is the customer’s perception of the
balance between the quality of goods or
services that a firm provides and their
price
Quality describes the degree of excellence
or superiority of an organization’s goods
and services
Building Brand Equity
Through Quality
Customer Retention
The cost of acquiring new customers is
five times greater than the expense of
keeping old ones
Studies demonstrate that 95 percent of
dissatisfied customers don’t complain
directly to the company, but each one tells
11 others about the negative experience
Understanding Customers
Marketing executives sometimes fall into
the trap of believing that they already
know what will satisfy customers without
actually asking the customers themselves
LOVE GROUP
APOSTELS
SWING GROUP
(VOCAL)
HATE GROUP
TERRORIST
Internal Customers
Internal marketing involves managerial
actions that help all members of an
organization understand, accept, and
fulfill their respective roles in
implementing its marketing strategy.
Measuring Customer
Satisfaction
Marketers must keep in mind that there
may be gaps, or differences between
expected quality and perceived quality of
the firm’s goods and services
Such gaps can produce favorable or
unfavorable impressions
The foundation of marketing is
understanding what customers need and
want
Customer Turn-offs
Customer Satisfaction
Measurement (CSM)
The CSM program provides a procedure
for tracking customer satisfaction over
time
The value inherent in CSM programs is
tracking changes from an established
benchmark
TQM
An attempt to involve all employees in a
firm to continually improve products and
work processes with the goal of achieving
customer satisfaction
A true competitive advantage results
when organizations move beyond
continuous improvement to practice
continuous product innovation
Building Long-term
Relationships
Involving Top Management
Effective TQM programs begin with the
involvement of top managers who believe
in the importance of quality and customer
satisfaction
Involving Employees
Employee involvement seeks to unleash
the energy, creativity, and talents of all
employees
Empowered employees gain increased
authority and responsibility for
implementing the organization’s mission
and strategy
Marketing Audit
A thorough, objective evaluation of an
organization’s marketing philosophy,
goals, policies, tactics, practices, and
results
Marketing audits generate especially
valuable insight about areas in which
managerial perceptions differ sharply from
reality
Profitability Flow Chart