2 TQM’s Customer Approach “the customer defines quality.”“the customer is always right.”“the customer always comes first.”“the customer is king.”“quality begins and ends with the customer”
3 Types of CustomersExternal - outside the organization (people who pay the bills.)End-user customersManufacturer (OEM) for suppliers.Internal - people within your organization who receive your workIn many situations, producers have multiple customers and therefore find it useful to identify “core customers”
4 Some Data on Customer Attitudes and Loyalty (Source: Winning Back Angry Customers, Quality Progress, 1993)An average customer with a complaint tells 9-10 people; if it is resolved he/she only tells 5 people.For every complaint received, there are twenty others that are not reported.It costs 5-10 times more in resources to replace a customer than it does to retain one.Companies spend 95% of service time redressing problems and only 5% trying to figure out what made the customer angry.
5 Measuring Customer Satisfaction Example: J.D. Power -- Initial Quality Survey measures customer satisfaction - problems per 100 vehicles.Effect of J.D. Power IQS on automotive quality?1998: 176 problems per 100 vehicles*2005: 118 problems per 100 vehicles*How does greater customer awareness impact quality?
7 Methods to Collect Customer Satisfaction Data Negative Feedback Analysiscustomer complaints, warranty claims, repair records…focus on problemsconcern: many dissatisfied customers do not complain (1/20 complain).Proactive Feedback (ask customers for their opinions)examples: customer surveys, focus groups, “employees” as customers.advantage: identify key product features and assess levels of performance.Analysis of Competitor Productsexamples: Benchmarking, “War Rooms” or Tear Down Analysisadvantage: “Know thy competitor, know thyself”
8 Identifying Customer Needs Possible solutionsfocus-group discussionsindividual and group interviewssurveyscomment cardsstudy repair and return datacustomer complaintswarranty claimsanalyze competitor products
10 Types of Customer’s..Based on unique behavioral attributes, customers are of following types.Loyal customer.Discount customer.Impulse customer.Need based customer.Wandering customer
11 Loyal Customer.They represent no more than 20 percent of our customer base, but make up more than 50 percent of our sales..Nothing will make a Loyal Customer feel better than soliciting their input and showing them how much you value it.. These people are the ones who can and should influence our buying and merchandising decisions.We need to be communicating with these customers on a regular basis by telephone, mail, , etc..
12 . 1 Satisfied customer will lead to 500 new customers. . Customer satisfaction will lead to customer expectation.. 1 Satisfied customer will lead to 500 new customers.. the more you do for them, the more they will recommend you to others.
13 Discount CustomerThey shop our stores frequently, but make their decisions based on the size of our markdowns
14 .This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash flow.This same group, however, can often wind up costing you money because they are more inclined to return product..Merely satisfied customers, also show defection ready to switch..Chase low prices..Milk these customers as long as they are active or in discount seasons.
15 Impulse CustomerThey do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim. They will purchase what seems good at the time.
16 Clearly, this is the segment of our clientele that we all like to serve. There is nothing more exciting than assisting an Impulse shopper and having them respond favorably to our recommendations.They will purchase what seems good at the timeBuy on impulse.Maximize the profit on each transaction.Pursue fashion trends.
17 Need Based CustomersPeople in this category are driven by a specific need.When they enter the store, they will look to see if they can have that need filled .if, not they will leave right awayIt is difficult to satisfy these people.Customers are habitual of particular brand.
18 Show inertia in brand switching. Need based customer can easily be lost to internet sales or a different retailer.So to overcome this threat, positive personal interaction is required.They can also become loyal customers if they are well taken care of.
19 Wandering CustomerThey have no specific need or desire in mind when they come into the store.They want a sense of experience or community.They make up the smallest percentage of sales.keep in mind, however, that although they may not represent a large percentage of your immediate sales, they are a real voice for you in the community.Although wandering customers cannot be ignored, the time spent on them needs to be minimized.
20 Provide Services to Colleagues and Customers Guest RelationsComplaint Handling
21 TYPES OF CUSTOMERS INTERNAL CUSTOMERS People with whom we work EXTERNAL CUSTOMERSIncluding:- International tourists- Families- Business Travellers- People with disabilities- Difficult customersProvide Service to colleagues and customers
22 What are wants, needs and expectations? A human need is a state of felt deprivationWantsA form taken by human needs as they are shaped by culture and individual personalityExpectationsTo be treated with respectTo be made welcomeTo receive timely and professional assistance and serviceTo be understoodTo feel importantTo be appreciatedTo be recognisedTo enjoy the experienceProvide Service to colleagues and customers
23 Factors influencing needs and expectations include SocialCulturalEconomicHealthAgePersonalityPersonal interestsLikes and dislikesTime AvailablePerceptionProvide Service to colleagues and customers
24 NEEDS AND EXPECTATIONS OF CUSTOMERS could include Basic Human NeedsFood, Shelter, Security,Social and EsteemSpecial services and facilitiesEntertainmentInformationProvide Service to colleagues and customers
25 What would you consider when dealing with guests with special needs? Physically challenged – mobility impaired, hearing impaired or blindIntellectually challengedPregnant womenFamilies with childrenUnaccompanied childrenBusiness travelersTravelers with special cultural or language needsElderly travelersProvide Service to colleagues and customers
26 Customer Service Skills include Meeting customer requirementsDemonstrating communication skills – listening and questioning techniquesHandling customer requests and complaintsDeveloping a rapportPromoting suitable products and service to enhance experienceTo deliver quality service we must also demonstrate appropriate work ethics and behaviour.Provide Service to colleagues and customers
27 What is quality service? You could describe customer service as the art of relating to your customers so they feel comfortable, looked after, satisfied, special and welcome.Service excellence is achieved when the enterprises’ services and facilities not only meet but exceed the guests expectations.Can you think of when this has happened to you?Can you think of when you may have delivered quality service to a customer?Provide Service to colleagues and customers
28 WHAT WE NEED TO PROVIDE QUALITY SERVICE!!! KNOWLEDGE- Of your customer- Of how to do your job- Of all services and facilities in your hotel- Of local and state attractionsSKILLS- Interpersonal skills- Anticipation of your customer needsATTITUDE- Genuine desire to help your guests - whether solvingproblems or just making sure they have a great stay- Positive attitude at all times- Proactive – providing help and guidance without necessarily beingasked – guests feel they can depend on you- Displaying tact and diplomacyProvide Service to colleagues and customers
29 Steps to Ensure we give Quality Service! Anticipate needsWelcome customers warmly – with a warm genuine smileListen and probe - ask open questionsReflective listenOffer an action plan to deliver what they wantAgree on this planWhat? Where? When? How?Avoid broken promisesFollow up to check everything is up to their expectationsCombine this with:Communicating in a language they can understandTune into their individual needs – by observationUse their name – wherever possibleProvide Service to colleagues and customers
30 Maintaining Quality Service Organisation and staff responsibilitiesTraining of staffGood communications between departmentsEstablished work programsGood awareness of activities within other departmentsImportance of quality customer service to hospitality industryCustomers have come to expect quality serviceCompetition demands quality serviceQuality service is the key to business successQuality service requires you to be one step ahead of the customer – anticipating their needsProvide Service to colleagues and customers
31 ANTICIPATE THE NEEDS OF YOUR CUSTOMERS ASK YOURSELF:Have I considered all the customer needs?What could the customer need next?How can I improve the service now for the customer?Then offer to provide that service - without the customer having to ask!Have you ever anticipated a customers needs?Provide Service to colleagues and customers
32 How do you know when we’ve given Quality Service? Increased job satisfactionPositive performance appraisalsGratuities – tips/giftsThank You - by letter or verballyEnhanced reputationEstablishment winning quality awardsReturning guestsGuest Comment Cards - QuestionnairesProvide Service to colleagues and customers
33 WHY PEOPLE COMPLAIN? From frustration To impress other people For compensationProvide Service to colleagues and customers
34 When dealing with a guest complaint - NEVER Talk down to the customerBe defensiveJustify why it happenedBlame other people or departmentsBlame the customerProvide Service to colleagues and customers
35 COMPLAINT HANDLING PROCEDURE Listen without interruptionDon’t get defensiveUse a ‘sad but glad’ expressionExpress concern and empathy - apologise sincerelyEstablish the problem - ask questionsFind out what they wantExplain what you can and cannot doFully discuss alternativesTake ActionFollow up to ensure they are happyProvide Service to colleagues and customers
36 Handling Complaints Information recorded accurately in Complaint Log Recognised complaint handling procedure followedRelevant department or personnel consultedFollow up to ensure everything is resolved - record action in LogLog reviewed to see if on going/multiple complaints being received and what steps can be taken to rectify.Provide Service to colleagues and customers
37 Empowerment The person who takes the complaint owns the complaint. You should try to resolve the complaint to the best of your ability.Do you know what you can do to resolve a complaint without calling for a manager or supervisor?Provide Service to colleagues and customers
38 Complaint Recording and Follow Up Procedures All complaints must be handled diplomatically so all parties recognise:The issue has been raised with relevant authorityAll points of view have been airedDiscretion will be applied in resolving the matterDue process will be followedAction will be taken and the matter will be remediedYou must establish the details of the customer complaint throughQuestioning and active listening techniquesSummarising and clarifying the issueRecording details of complaintDiscussing with customer the process of resolution – giving them options and letting them know how the complaint will be resolvedYou need to know the lines of reporting complaints and when to seek assistanceProvide Service to colleagues and customers
39 Benefits of positive handling of complaints The value of amicably resolving complaints can not be underestimated and include:Promoting goodwillImproved customer relationsPositive work of mouth publicityPromotion of enterprise service ethicProvide Service to colleagues and customers
40 DIFFERENCE BETWEEN A COMPLAINING CUSTOMER AND A DIFFICULT CUSTOMER A complaining customer is somebody whose needs and expectations have not been metA difficult customer is somebody who is a challenge to serve because of their personality, for example, they may be rude, impatient or talkativeProvide Service to colleagues and customers
41 HOW CAN A CUSTOMER BE DIFFICULT? RudeImpatientNoisyTalkativeConfused - unable to make decisionsSilentFussyProvide Service to colleagues and customers
42 TYPES OF DIFFICULT CUSTOMERS Rude CustomerCan be rude to everyone - they justdon’t feel comfortable being nice.DO Ignore their rudeness and don’t take it personallyDON’T Become Rude and AggressiveImpatient CustomerAlways in a hurry - and it won’t matter how quickly you serve them - they will still be impatientDO Serve them quickly and politelyDON’T Waste their time with conversation and they may not want you trying to sell them products and servicesProvide Service to colleagues and customers
43 TYPES OF DIFFICULT CUSTOMERS Confused CustomerFind it difficult to make decisions and may take a long timeto decideDO Be helpful by making suggestions and asking questionsDON’T Rush them - they could become flustered and embarrassedTalkative CustomerWants to talk and could spend all day doing itDO Be friendly and attentive - Lead the conversationDON’T Ignore them or give them all your attentionso other customers are ignoredProvide Service to colleagues and customers
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