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The Customer is the King. # Quality is what customer wants. #TQMs purpose is meeting customer expectations.

# Customer satisfaction must be the primary goal of any organization. Therefore Every employee should understand the importance of customer.


Important people in business. Not dependent on org. organization depends. Not interruption but purpose of work. Doing a favour when they seek business but not vice versa. Life blood of business. A part of business, not outsiders.

Two Types
Internal customers External customers

Internal Customers
Customers inside the company. Every person in the process. Each dept is customer of another.

External Customer
Who uses the product Who purchases the product Who influences the sale of product

CUSTOMER PERCEPTION OF QUALITY Quality is what customer perceives to be. Customer change their needs

Quality is what customer perceives to be. customer needs goes on changes

Quality level needs are to be improved accordingly. ASQ survey ranked six customer perceptions.


Fitness for use Product/ service is ready for use. Availability Reliability Maintainability


Secondary character Extra facilities

3. Service
Provide the service at right time, even though the customer dont complaint.

4. Warranty
Represents a promise of a quality product. Force the org to focus on customer needs. Forces the org to correct the action system. It attracts and build the market

5. Price
Nowadays customer is ready to give high price towards Quality. Expects to get good product in lower price. Customers perception of value is continuously changing. To Succeed the org should identify, verify the perception of value.

6. Reputation
Customer wills to buy product from a known company. Reputation brings market to the Org. So org should strive for customer for life.

Satisfied customer contributes 2.6 times as a satisfied customer. Satisfied customer contributes 17 times as a dissatisfied customer. A Dissatisfied customer decreases 1.8 times of a totally satisfied customer. Dissatisfied customer should be reduced. Therefore feedback and suggestions should be monitored.

Discover customer dissatisfaction Identify customer needs

Discover priorities of Quality

Compare performance with the competition. Determine opportunities for improvement.

Comment cards - attached to warranty card. Customer Questionnaire - survey mail/e-mail/ telephone. Focus groups customer meeting/ discussions. Toll free telephone numbers Customer visit. Internet- Bulletin Boards. Employee feedback.

Set of activities an org uses to satisfy customers. BEFORE / DURING / AFTER THE SALE.

Elements of Customer service Jacques Horvitz and Chan Cudennec-poon ~25 elements of customer service

1. identify each market segment. 2. Write down the requirements. 3. Communicate the requirements. 4. Organize processes. 5. organize physical spaces.


1. 2. 3. 4. 5. 6. 7.

Meet the customers expectations. Get the customers point of view. Deliver what is promised. Make the customer feel valued. Respond to all complaints. Over-respond to the customer. Provide a clean and comfortable customer reception area.


1. Optimize the swap between time and personal attention. 2. Minimize the number of contact points. 3. Provide pleasant, knowledgeable and enthusiastic employees. 4. Write documents in customer friendly language.


1. Optimize the swap between time and personal attention. 2. Minimize the number of contact points. 3. Provide pleasant, knowledgeable and enthusiastic employees. 4. Write documents in customer


1.Lead by Example. 2.Listen to the frontline people. 3.Strive for the continuous process

Process of retaining the existing customers. Customer retention is powerful than customer satisfaction. Research 60% revenue- existing customer 96% customer dont complaint- but share with others. 91% unhappy customer- never purchase goods again. 82-95% customer retain if responded properly. It costs 5 times to attract a new customer.