I’m going to start this article by noting that I’ve never been a huge fan of the practice of benchmarking, particularly within one’s own industry. As a personal belief, I think that this practice establishes false performance standards that ultimately limit the performance of an organization, rather than to promote its on-going development. While some companies may initially benefit from this exercise, benchmarking places emphasis and value on another’s accomplishments rather than on promoting an internal culture where truly breakthrough performance is a regular occurrence.
In order to realize breakthrough performance, we need to re-calibrate the way we rate our performance and move away from a relative scale (ourselves vs. our competition) to an absolute scale (perfection). Average businesses are those that meet customer expectations, while better-than-average businesses make every effort possible to exceed these expectations. In contrast, businesses that are truly noteworthy have learned to shatter these expectations by performing at a level that the customer had yet to even consider. This level of performance doesn’t come from benchmarking; it doesn’t even acknowledge that the competition exists.
The competition is irrelevant. If you’re referencing your performance against that of a competitor, you may be performing better or worse or even equal to, however this also means that you’re still comparable. Assuming that you and the rest of your competition are doing things the same way, using the same performance standard, you’re not a true industry leader - you’re still just a follower, albeit you may be on the upper-to-high side of mediocrity. To coin a phrase, think “a league of their own” – not only should you be better than the competition, you shouldn’t even playing in the same ball-park. There’s a reason Hyundai’s and Ferrari’s don’t race together.
Perfection should be the goal. Industry best-practices should only serve to identify the minimum level of performance that should be tolerated; these practices shouldn’t ever be considered as a basis for goal-setting. To survive in a competitive business environment, we shouldn’t be focusing on best practices, but rather, we should be constantly looking to develop even better practices. To have the “least” amount of rework, repair or returns, or to have the “most” on-time deliveries is the point from where your continuous improvement journey truly begins, rather than being the end. The real goal is an absolute one - to never have any bad product, never have any returns and to always deliver on time. While I acknowledge that such a level of performance is nearly impossible to attain and its achievement is subject to an endless list of constraints, perfection should always be the target that we’re aiming for.
The past is history. I can't discount the importance of "lessons learned" or the value of celebrating past accomplishments, however I will say that the only time that really matters is now and tomorrow. Success doesn't consider where we started, where we’ve been or how far along we’ve come; there isn’t any award given to the organization that’s the "most improved". The most important measure of performance is not the one that's behind us, or in the case of our competition, around us - it's always the one that's in front of us. Going forward, the goal is more than merely replicating the incremental gains of the past - its about finding new ways to exponentially improve our performance.
Breakthrough performance has nothing to do with your competition. It is about where you are now, and where you are going; it is about your future state and how far (or how close) you are to a state of perfection. Just because you are as good as your competition doesn't mean that your competition is any good.
http://www.masquality.com
Showing posts with label Customer Satisfaction. Show all posts
Showing posts with label Customer Satisfaction. Show all posts
Friday, May 1, 2009
Monday, January 26, 2009
Customer Feedback
If a customer has an issue with your products or services, some customers will complain; some will say nothing; other customers will simply take their business elsewhere, and unfortunately, you will probably be the last to hear about it. Your customer’s perception of your performance varies considerably from your own, and in most cases, you’re not doing as well as you think.
Repeat orders don’t indicate satisfied customers. What they do indicate, is that your customer hasn’t found an alternative supplier that does a better job. While some customers are extremely loyal, many are just waiting for a better option to come along. You won’t have high customer retention rate if you don’t do a good, make that great, job.
We can often relate “good” to degree that we were able to meet customer requirements and needs. The term “great” however, is much more ambiguous; it relates more to customer wants and expectations, and our ability to surpass them. If we do what we’ve agree to, on the date it’s agreed, for the price agreed, we can assume we’ve done a good job. Our internal perception of our performance is of little value; the only opinion that matters is the customer’s.
Only by continuously meeting the requirements of our customers, and relentlessly working to exceed their wants and expectations, can we ensure genuinely satisfied customers (and long-term customer retention). Customer requirements continuously evolve and their wants and expectations are dynamic. Perception is just as important as actual performance, and there’s no way to gauge a customer’s overall experience without asking – How well did we perform? What can we do better?
Below is an overview of a basic customer feedback process, which breaks down each activity into one of four primary steps: Development, Distribution, Recovery, and Analysis/Reporting. There is no one-size-fits-all solution or approach, but this should be enough to get you started.
Development
There are a variety of methods for acquiring customer feedback; each method has its own particular strengths and weaknesses, and requires varying degrees of resources. Methods for obtaining feedback may include surveys or questionnaires, user groups or smaller focus groups, one-to-one interviews and more. For the sake of brevity, I’ll stay away from any discussion on survey design here, but such methods for monitoring and measurement should be controlled appropriately; the development process should ensure that the method is reliable, repeatable, and that the information it obtains must not only be quantifiable, but must also be relevant to the organization, and to the achievement of its stated goals and objectives.
Distribution
In order to obtain useable, relevant information, we need to ensure that we reach the right personnel within the customer’s organization. In larger organizations, this can be a daunting task; with silo-like structures common to both organizations, it is not unusual to end up approaching the wrong individual or department. While obtaining information from the purchasing department, accounts payable, or another party that wasn’t directly involved in the work performed may help your feedback rating (most will say “great job- excellent!”), it will accomplish little more than a virtual “pat-on-the-back” – this information is useless. The only source of information that matters is from the actual user of your products or services. Your sales, production or service personnel usually know who to contact and can often provide valuable assistance in collecting this feedback.
Recovery
While finding and contacting the right people can be a challenge, it is a minor setback when compared to soliciting a response to our feedback request. The primary obstacle is that we really don’t have any sort of “carrot” – there’s no reward to offer our customers for its timely (if ever) return. Feedback tends to come quickly if there’s a problem – the customer wants the prompt resolution of their issues. If there’s no issue (except possibly marginal performance), feedback becomes much harder to solicit, as there’s little to no motivation to respond. Some retail chains have found that by offering coupons or other incentives for completed questionnaires it is easier to obtain this information. Other companies may hold a drawing or offer prizes, as appropriate; some companies may make a charitable donation each time feedback is given. Again, there are no one-size-fits all solutions, and trial and error may be needed to determine the one that works best for your situation.
Analysis and Reporting
The final step of this feedback process is the analysis and subsequent reporting of the information that has been obtained. How this analysis is performed is going to really be based upon the feedback methods used, the type of information that’s acquired, and the degree of reporting that is required by the organization’s management. Quite often, advanced statistical techniques are unnecessary, and tend to serve the ego of the analyst more than the needs of management.
Reporting may trigger other processes, such as those used for corrective or preventative action, and this data may subsequently be used as input as part of the organization’s process for management review. As I mentioned above, the information that is obtained through this process must be relevant to the organization, and to the achievement of its stated goals and objectives. Not only must this data be informative, it has to be actionable.
http://www.masquality.com
Repeat orders don’t indicate satisfied customers. What they do indicate, is that your customer hasn’t found an alternative supplier that does a better job. While some customers are extremely loyal, many are just waiting for a better option to come along. You won’t have high customer retention rate if you don’t do a good, make that great, job.
We can often relate “good” to degree that we were able to meet customer requirements and needs. The term “great” however, is much more ambiguous; it relates more to customer wants and expectations, and our ability to surpass them. If we do what we’ve agree to, on the date it’s agreed, for the price agreed, we can assume we’ve done a good job. Our internal perception of our performance is of little value; the only opinion that matters is the customer’s.
Only by continuously meeting the requirements of our customers, and relentlessly working to exceed their wants and expectations, can we ensure genuinely satisfied customers (and long-term customer retention). Customer requirements continuously evolve and their wants and expectations are dynamic. Perception is just as important as actual performance, and there’s no way to gauge a customer’s overall experience without asking – How well did we perform? What can we do better?
Below is an overview of a basic customer feedback process, which breaks down each activity into one of four primary steps: Development, Distribution, Recovery, and Analysis/Reporting. There is no one-size-fits-all solution or approach, but this should be enough to get you started.
Development
There are a variety of methods for acquiring customer feedback; each method has its own particular strengths and weaknesses, and requires varying degrees of resources. Methods for obtaining feedback may include surveys or questionnaires, user groups or smaller focus groups, one-to-one interviews and more. For the sake of brevity, I’ll stay away from any discussion on survey design here, but such methods for monitoring and measurement should be controlled appropriately; the development process should ensure that the method is reliable, repeatable, and that the information it obtains must not only be quantifiable, but must also be relevant to the organization, and to the achievement of its stated goals and objectives.
Distribution
In order to obtain useable, relevant information, we need to ensure that we reach the right personnel within the customer’s organization. In larger organizations, this can be a daunting task; with silo-like structures common to both organizations, it is not unusual to end up approaching the wrong individual or department. While obtaining information from the purchasing department, accounts payable, or another party that wasn’t directly involved in the work performed may help your feedback rating (most will say “great job- excellent!”), it will accomplish little more than a virtual “pat-on-the-back” – this information is useless. The only source of information that matters is from the actual user of your products or services. Your sales, production or service personnel usually know who to contact and can often provide valuable assistance in collecting this feedback.
Recovery
While finding and contacting the right people can be a challenge, it is a minor setback when compared to soliciting a response to our feedback request. The primary obstacle is that we really don’t have any sort of “carrot” – there’s no reward to offer our customers for its timely (if ever) return. Feedback tends to come quickly if there’s a problem – the customer wants the prompt resolution of their issues. If there’s no issue (except possibly marginal performance), feedback becomes much harder to solicit, as there’s little to no motivation to respond. Some retail chains have found that by offering coupons or other incentives for completed questionnaires it is easier to obtain this information. Other companies may hold a drawing or offer prizes, as appropriate; some companies may make a charitable donation each time feedback is given. Again, there are no one-size-fits all solutions, and trial and error may be needed to determine the one that works best for your situation.
Analysis and Reporting
The final step of this feedback process is the analysis and subsequent reporting of the information that has been obtained. How this analysis is performed is going to really be based upon the feedback methods used, the type of information that’s acquired, and the degree of reporting that is required by the organization’s management. Quite often, advanced statistical techniques are unnecessary, and tend to serve the ego of the analyst more than the needs of management.
Reporting may trigger other processes, such as those used for corrective or preventative action, and this data may subsequently be used as input as part of the organization’s process for management review. As I mentioned above, the information that is obtained through this process must be relevant to the organization, and to the achievement of its stated goals and objectives. Not only must this data be informative, it has to be actionable.
http://www.masquality.com
Wednesday, September 10, 2008
The Value of Complaints
While no organization wants to hear, particularly from its customers, that its products or services aren’t up-to-par, remember this going forward - a complaint isn’t simply a negative event; it’s an opportunity for an organization to identify and develop those areas of their business that need improvement. From this perspective, a complaint just may be one of the most valuable things that your customers can actually do for you.
It’s not unusual for organizations to pay large sums of money to outside consultants, for advice and guidance in determining where their business is failing. While there are countless approaches, methodologies and programs designed to promote such improvement, most have a tendency to gravitate inwards, focusing on internal issues such as the processes involved and their level of efficiency, while under performing in terms of positively affecting outcomes. Paradoxically, from a customer perspective, it’s only the outcome that really matters. How the end result is achieved isn’t a concern to them.
In contrast to the above, customer feedback, however negative it may be, is free of charge and relates directly to the primary concern of the customer – the outcome. It relates to their degree of customer satisfaction. I’ll save my full commentary on this subject for a later article, but needless to say, a satisfied customer is a happy customer, a happy customer is a repeat customer, and a delighted customer is a rich vein for referrals to be mined in the acquisition of new business. While process efficiency is important, it won’t be for long if you don’t have any customers.
When a customer complains, what they’re telling you is that there has been a departure from their requirements; they aren’t happy with the products or services provided by your organization. The fact that your customer is communicating this to you, rather than seeking a new supplier, indicates that the customer is interested in continuing their relationship with you, pending resolution of the issues identified. This is surely better than the customer who quietly walks away and simply “spreads the word” that your products and/or services are substandard.
Best-in-class organizations have realized that complaints form an essential part of their relationship with their customers and understand the importance of this information in the improvement of their products and/or services. They understand that, for the complaint process to be effective there must be a “loop” – a process of communicating-receiving-action. If there is no action when a complaint is received, then the communication you share with your customer is ultimately ineffective. Many organizations have found that by successfully working through an issue with a customer, they can actually grow and nurture their relationship, as such collaboration and partnership leads to greater levels of shared trust and the fulfillment of mutual goals.
I’ve always been amazed at how lesser-performing organizations fail to realize the true importance of customer complaints. I’ve seen organizations refuse to respond to complaints, rather insisting that the customer has expectations that are out-of-line, unreasonable, and/or impractical. Even worse, I’ve seen complaints ignored because the size of the account doesn’t justify the time or action required to address the issue. Sure, it’s up to the discretion of the organization on how to deal with complaints, but remember it’s also up to the customer to determine who to do business with. Customers are looking for suppliers that are responsive to their unique needs and situation. If you’re not actively working to address the needs and concerns of your customers, then you can be assured that your customer is actively looking for an alternative supplier.
http://www.masquality.com
It’s not unusual for organizations to pay large sums of money to outside consultants, for advice and guidance in determining where their business is failing. While there are countless approaches, methodologies and programs designed to promote such improvement, most have a tendency to gravitate inwards, focusing on internal issues such as the processes involved and their level of efficiency, while under performing in terms of positively affecting outcomes. Paradoxically, from a customer perspective, it’s only the outcome that really matters. How the end result is achieved isn’t a concern to them.
In contrast to the above, customer feedback, however negative it may be, is free of charge and relates directly to the primary concern of the customer – the outcome. It relates to their degree of customer satisfaction. I’ll save my full commentary on this subject for a later article, but needless to say, a satisfied customer is a happy customer, a happy customer is a repeat customer, and a delighted customer is a rich vein for referrals to be mined in the acquisition of new business. While process efficiency is important, it won’t be for long if you don’t have any customers.
When a customer complains, what they’re telling you is that there has been a departure from their requirements; they aren’t happy with the products or services provided by your organization. The fact that your customer is communicating this to you, rather than seeking a new supplier, indicates that the customer is interested in continuing their relationship with you, pending resolution of the issues identified. This is surely better than the customer who quietly walks away and simply “spreads the word” that your products and/or services are substandard.
Best-in-class organizations have realized that complaints form an essential part of their relationship with their customers and understand the importance of this information in the improvement of their products and/or services. They understand that, for the complaint process to be effective there must be a “loop” – a process of communicating-receiving-action. If there is no action when a complaint is received, then the communication you share with your customer is ultimately ineffective. Many organizations have found that by successfully working through an issue with a customer, they can actually grow and nurture their relationship, as such collaboration and partnership leads to greater levels of shared trust and the fulfillment of mutual goals.
I’ve always been amazed at how lesser-performing organizations fail to realize the true importance of customer complaints. I’ve seen organizations refuse to respond to complaints, rather insisting that the customer has expectations that are out-of-line, unreasonable, and/or impractical. Even worse, I’ve seen complaints ignored because the size of the account doesn’t justify the time or action required to address the issue. Sure, it’s up to the discretion of the organization on how to deal with complaints, but remember it’s also up to the customer to determine who to do business with. Customers are looking for suppliers that are responsive to their unique needs and situation. If you’re not actively working to address the needs and concerns of your customers, then you can be assured that your customer is actively looking for an alternative supplier.
http://www.masquality.com
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