1. Chapter 15 Voice of the Customer

2. Objectives Project impact for internal customers Project impact for external customers Better understand customer needs

3. Customer Identification Without customers, we have nothing to sell. Customer segmentation is driven by customer requirements: 1. Internal and external customers 2. Demographics – age groups (especially for consumer goods) 3. Geographical location – climate, language, ethnic issues, and shipping considerations. 4. Industry types (customers in construction, agriculture, or other industries)

4. Customer Feedback Statistically the most valid procedure is to randomly select a reasonably large representative group of customers. A carefully worded and analyzed survey can shed light on customer reactions. Focus groups generally provide more accurate answers. Phone or in person interviews permit a higher response than written surveys. The data collected should be objective and designed to shed light on customer requirements. It is important to use several independent resources to obtain this information.

5. Customer Requirements The best customer data collection is useless unless there is a system to use the data to effect changes. Customer feedback should be studied to see which processes, products and/or services will be impacted. A phone call from a customer should be rated higher than a response to a questionnaire.

6. Critical to Quality Flow Down Customer satisfaction generally falls in 3 categories: 1. Quality 2. Delivery 3. Cost Cost and delivery are easy to quantify: Customers are willing to pay x per item and expect delivery in y days after they place the order. Critical to Quality (CTQ) flow down starts with the high level strategic goal of customer satisfaction and determines how this goal flows down into measurable goals (fig 15.2, page 66).

7. Quality Function Deployment Quality function deployment (QFD) provides a process for planning new or redesigned products or services. The QFD requires that the team discover the needs and designs of its customers and study the organization’s response to those needs and desires (fig 15.4, page 68). The matrix can provide a database for product development, serve as a basis for planning new product or process improvements, and suggest opportunities for new or revised product or process introductions.

8. Kano Model Kano’s model identifies several types of requirements that impact customer satisfaction: 1. Must be requirements: Basic requirements that the customer assumes will be there. 2. One dimensional requirements: Anything exceeding customer requirement increases satisfaction. 3. Attractive requirement: When present, they increase satisfaction, but their absence does not cause dissatisfaction. 4. Neutral characteristic: Do not bring satisfaction when present, nor do they cause dissatisfaction if absent. 5. Reversal characteristic: Feature a customer does not want, and whose presence causes dissatisfaction. An awareness of features of customer satisfaction (and dissatisfaction) provide guidance for ever improving customer satisfaction.

9. Summary Without customers, we have nothing to sell. The best customer data collection is useless unless there is a system to use the data to effect changes. Customer satisfaction generally falls in 3 categories: 1. Quality, 2. Delivery, and 3. Cost. An awareness of features of customer satisfaction (and dissatisfaction) provide guidance for ever improving customer satisfaction.

10. Home Work 1. What is the driver for customer segmentation? 2. What are 3 methods to collect customer feedback? 3. When is customer data collection useless? 4. What are the 3 categories of customer satisfaction? 5 What does the quality function deployment (QFD) provide?