kano model.ppt

SJSU Bus. 142 - David Bentley*Lecture 2B Focusing on CustomersCustomers, satisfaction vs. loyalty, leading practices, customer groups, dimensions of quality, tools and measurement

SJSU Bus. 142 - David Bentley*

SJSU Bus. 142 - David Bentley*What is a customer?Richard Schonberger: The customer is the next processFinal Customer vs. next customerThe Big C vs. the little cWho is/are my customer(s)?Who is/are your customer(s)?

SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley*Voice of the Customer (Foster)Wants, opinions, desires, or perceptions by the customer, orA standardized, disciplined, and cyclical approach to obtaining and prioritizing customer preferencesCyclical vs. continual?


SJSU Bus. 142 - David Bentley*What Do Customers Want?QualityPriceLead-timeServiceFlexibilityVariability


SJSU Bus. 142 - David Bentley*What Do Customers Want?HighQualityLowPriceLowLead-timeHighServiceHighFlexibilityLowVariability


SJSU Bus. 142 - David Bentley*Importance of Customer Satisfaction and LoyaltySatisfaction is an attitude; loyalty is a behaviorLoyal customers spend more, are willing to pay higher prices, refer new clients, and are less costly to do business with.It costs five times more to find a new customer than to keep an existing one happy.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*American Customer Satisfaction IndexMeasures customer satisfaction at national levelIntroduced in 1994 by University of Michigan and American Society for QualityContinual decline in index from 1994 through 1997 with a gradual improvement into 2004, dip in 2005, record high in 2007 Quality improvements have exceeded pace consumer expectations during recent years

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM MOD 02/24/06 DAB


SJSU Bus. 142 - David Bentley*ACSI Model of Customer SatisfactionPerceivedqualityCustomercomplaintsPerceivedvalueCustomer satisfactionCustomerexpectationsCustomerloyaltyTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*J. D. Power & Associates (jdpower.com)a global marketing information services firm that provides clients with relevant and actionable market research, forecasting, consulting and trainingprimary catalyst in bringing the language of customer satisfaction to numerous industriesSurvey customers and provide quality and customer satisfaction ratings for autos, boats, finance, travel, telecom, homes, international


SJSU Bus. 142 - David Bentley*Customer-Driven Quality Cycle

measurement and feedback

Customer needs and expectations (expected quality)Identification of customer needsTranslation into product/service specifications (design quality)Output (actual quality)Customer perceptions (perceived quality)PERCEIVED QUALITY = ACTUAL - EXPECTEDTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*Leading Practices - 1Define and segment key customer groups and marketsUnderstand the voice of the customer (VOC) Understand linkages between VOC and design, production, and delivery



SJSU Bus. 142 - David Bentley*Leading Practices - 2Build relationships through commitments, provide accessibility to people and information, set service standards, and follow-up on transactionsEffective complaint management processesMeasure customer satisfaction for improvement



SJSU Bus. 142 - David Bentley*Identifying Internal CustomersWhat products or services are produced?Who uses these products and services?Who do employees call, write to, or answer questions for?Who supplies inputs

to the process?THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*AT&T Customer-Supplier ModelTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*Model of Customer Needs (review) - Noriaki Kano Dissatisfiers: expected requirements (usually implied)Satisfiers: expressed requirements (usually explicit)Exciters/delighters: unexpected features (pleasant surprise)

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTMMod. 10/21/02 DAB


SJSU Bus. 142 - David Bentley*The Kano Model (review) Operations Management, Seventh Edition, by William J. StevensonCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.


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SJSU Bus. 142 - David Bentley*Customer Relationship Management (CRM)Customer Relationship Management

Complaint ResolutionFeedbackGuaranteesCorrective ActionDozens of CRM systems, includingSalesforce.com (Salesform.com CRM Professional)Oracle (Siebel CRM) Sage (SageCRM.com and ACT!)SAP (SAP CRM)


SJSU Bus. 142 - David Bentley*Customer Listening PostsComment cards and formal surveysFocus groupsDirect customer contactField intelligenceComplaint analysisInternet monitoring



SJSU Bus. 142 - David Bentley*Tools for Classifying Customer RequirementsAffinity diagram Tree diagram Effective ServiceCommunicationModemLinkTimelyReportsAccurateInformationNotificationOf Indy Stds.Mutual JobUnderstandingBuyerOrientationReliabilityPriorApprovalsFlexibilityExpeditiousProcessesTimelyClosingsEffectiveServiceCommunicnLoanProducts

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM(Kawakita Jiro)Mod. 10/21/02 DAB


SJSU Bus. 142 - David Bentley*Customer Relationship Management Accessibility and commitmentsSelecting and developing customer contact employeesRelevant customer contact requirementsEffective complaint managementStrategic partnerships and alliances



SJSU Bus. 142 - David Bentley*Measuring Customer SatisfactionDiscover customer perceptions of business effectivenessCompare companys performance relative to competitorsIdentify areas for improvementTrack trends to determine if changes result in improvements



SJSU Bus. 142 - David Bentley*Example: The Olive GardenThe LobbyWas the lobby staff friendly and did they welcome you to the restaurant?Were you seated in a timely, efficient manner?The Table AreaWas your table area clean when you were seated?The ServerWas your server attentive and there when you needed him/her?Was your server knowledgeable and able to answer your questions about our food and beverages?How was the pace of your meal?

The FoodHow would you rate the taste of your food?Please rate the temperature of your food, hot food being piping hot.Please rate your visit on the value for the money.Overall, how would you rate your visitWould you recommend this Olive Garden to a close friend or relative?

Scale: 1 = poor .5 = excellentTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*Example: The Olive GardenOpen-ended questions:What one thing did you like most about your visit?What one thing could we do to improve your experience at The Olive Garden?Survey form provides address, 800 number, FAX, and TDD number for hearing impaired



SJSU Bus. 142 - David Bentley*Performance-Importance Analysis

PerformanceImportance Low High Low

HighWho cares?OverkillVulnerableStrengthsTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


SJSU Bus. 142 - David Bentley*Total Customer ExperienceI believe that HP owes our customers a superior Total Customer Experience (TCE) when dealing with us, and I am personally committed to improving TCE and making it a competitive differentiator for HP. Carly Fiorina Former President and CEO, Hewlett-Packard


SJSU Bus. 142 - David Bentley*Total Customer ExperienceCustomers are our most important assetsCustomers always define their own desired experienceNeed to be close enough to anticipate their needs and flexible enough to meet themImportant to develop deeper relationships with end usersCarly Fiorina


SJSU Bus. 142 - David Bentley*Making a TCE


To truly hear

customers be:

To remove barriers

from customers be:

To create solutions

for customers be:

(Attentive

(Flexible

(Competitive

(Aware

(Responsive

(Cost-effective

(Involved

(Efficient

(Imaginative

(Committed

(Dependable

(Capable

SJSU Bus. 142 - David Bentley*The Malcolm Baldrige National Quality AwardAwarded by US Department of CommerceResult of 1987 congressional legislationNamed after Secretary of CommercePromotes awareness of performance excellenceAwarded in business, education, health care, non-profit sectors


SJSU Bus. 142 - David Bentley*Customer and Market Focus in the Baldrige CriteriaThe Customer and Market Focus category examines how an organization determines requirements, expectations, and preferences of customers and markets; and how it builds relationships with customers and determines the key factors that lead to customer acquisition, satisfaction, and retention, and to business expansion.3.1 Customer and Market Knowledge3.2 Customer Relationships and Satisfactiona. Customer Relationshipsb. Customer Satisfaction DeterminationTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM


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kano model.ppt

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