About 70% of customers who leave a company do so because of service quality.Ĭustomer Retention Most organizations spend the bulk of their resources on attaining new customers and smaller amounts on retaining customers. There is the need to listen to the customer, provide a vision, provide training, improve the process, find or develop response metrics, and measure the results. Listen to the customer and determine needs Define a service strategy Set standards of performance Select and train the right employees Recognize and reward accomplishment The public demands and expects better quality products and service. DEFINE VOICE OF THE CUSTOMER/IDENTIFICATIONĮxternal Customer Segmentation (Cont’d) The consumer customer market differs from the business market as follows: C The consumer market has a large number of customers C The majority of consumer purchases are small in actual dollar amounts C The transaction is usually a simple purchase C Most consumers are not very knowledgeable about the product C The supplier does not share proprietary information with the consumerĮxternal Customer Segmentation (Cont’d) In contrast, the business customer acts in the following manner: C There are a very small number of business customers C The amount purchased per transaction is quite large C The purchase is handled through specialized personnel C The customer may know more requirements than the producerĬ The supplier may allow the customer access to all sorts of information It is also important to look at the market for the next two to five years and estimate how it will change and grow.Ĭustomer Service The customer driven company is beginning to emerge in America. They provide key linkages between detailed process measures and summary business results, and help identify important relationships and root causes. Operational efficiency measures relate to the cost and time required to produce the products. Breyfogle indicates that they should have a longer-term perspective and reflect the total variation that the customer sees. Business effectiveness measures track how well products are meeting customer needs (external focus). Operations Level Metrics Six sigma provides new metrics for managing complex operations. Business (executive) level metrics comprise summaries of detailed operations and financial results reported monthly, quarterly, or annually. PROCESS MANAGEMENT BUSINESS MEASURES/PERFORMANCE MEASURESīusiness Level Metrics Business level metrics are typically financial (external) and operational (internal) summaries for shareholders and management. Quality Council of Indiana 602 West Paris Avenue West Terre Haute, IN 47885 TEL: 80 FAX: 81 ĬSSBB Primer Contents I. THE SIX SIGMA BLACK BELT PRIMER © by Quality Council of Indiana - All rights reserved Fourth Edition - September, 2014
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