Norton University

Total Quality Management

TOYOTA
Customer Satisfaction Measurement
Lecturer: Dr. Seshu Babu Group members: 1.Tolos Vazy 2. Ly Borey 3. Orn Songmich 4. Biev than
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Introductory
In 1984, TMS began putting together programs that would ultimately result in a comprehensive customer satisfaction system to gather voice of the customer information and communicate it throughout the organization. TMS managers were convinced that the best way to ensure customer satisfaction was to develop a sophisticated information flow for accurate and timely customer feedback. Such information would enable managers to quickly identify and correct any product deficiencies. 2

Main focus on Toyotas use of customer satisfaction surveys.

1.The 800 number

The national 800 number receives an average of 1,200 calls per day at the Toyota customer assistance center. It yields some useful information for making improvements. , it is forwarded immediately into the field dealer concerned receives the message and is required to contact and respond to the customer within two days and to resolve the problem in fifteen days. 3

2. The Arbitration System

For those customers who find no satisfaction through the dealership or the 800 number, the arbitration system, administered by AAA auto club, provides recourse. The customer may submit a complaint AAA, which inspects the situation and renders a decision that is binding for Toyota. But not for the customer. Who may choose legal action if still unsatisfied.

3. The customer surveys

Toyota would like to prevent the circumstances of customer dissatisfaction which lead to arbitration. To prevent dissatisfaction and ensure satisfaction. Toyota relies heavily on the customer surveys administered by the customer relations department. They hope to identify cause of problems, prevent their recurrence, and even head off problems before customers ever perceive them.
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4. Survey Participation

TMS receives over 500,000 customer surveys a year. The rates of customer participation are relatively high, 55 percent for NVSDS and 42 percent for TSS. First, the surveys are fairly simple. Second, the purchase of a new vehicle represents the second highest expenditure for most people, after a home, and leads to a high level of emotional involvement. Finally, the dealers prepare customers for the survey at the dealership and follow up by calling customers at home before and after they 6 receive the survey.

5. Survey Routing Procedures

The customer relations department compiles all NVSDS and TSS surveys returned to Toyota. Analyzes the data . And generates various reports and indexes. Which they feed back to departments. Subcommittees and dealers according to their needs for information. Feedback may be given monthly, weekly, or even daily through the on-line computer system which links all dealers to regional and national headquarters.
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6. Analyzing Dealer Performance

A delivery quality report on all the dealers in the region is sent to the regional customer satisfaction committee. These reports are sent to the regional customer satisfaction committees, which are responsible for developing action plans to improve regional performance. The plans always target low-performing, high-volume dealers for extra attention. Targeted dealers may be called before the regional customer satisfaction committee to discuss the data, apparent problem, and action plans for 8 improvement.

7. General Customer Satisfaction

The customer relation department conducts a vast array of analyses of the survey data and prepare many detailed report for the customer satisfaction committee, subcommittees, department, regional offices, and dealers. The customer relation department serves as antenna that receives the voice of customer Therefore; the major of objective is to effectively communicate this information through the company. The customer satisfaction committee is a major part of effort.
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8. Specific Customer satisfaction Reports

The customer relations department reports on special topics. They also delve into the causes of customer satisfaction, For example, the impact of salesperson turnover on customer satisfaction. The special report not only motivate managers by showing them the costs of dissatisfaction and the benefits of satisfaction, they also produce actionable information to help them set priorities and develop action plans to make Toyota number one in customer satisfaction.
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9. Database linkages

For example, respondents from the NVSDS database were linked to the J D power and associates early buyer database by vehicle identification number (VIN, permitting examination of previously unavailable data.

As example of the special studies done based on these databases is discussed below, namely, the relationship between sales and service in the owner experience
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10. Report on the ownership experience

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11. Implications of customer satisfaction for Toyota and Its Dealer.

Satisfied Toyota customers are a key marketing advantage. Not only are they a source of repeat sales, but the positive word of mouth they spread can be instrumental in attracting new Toyota customer and boosting brand image.
a. Increased product and dealer loyalty
A commonly help belief in marketing is that is cost five time as much to obtain a new customer as to retain an existing one. Clearly increase loyalty not only means greater and more costeffective sale and service business, but also higher satisfaction ratings in the bargain. 13

b. Lower advertising Expense

Positive word of mouth is more credible, more targeted toward serious shoppers, and less expensive than traditional advertising. Further, research has shown that word of mouth has twice the impact as corporate advertising on customer purchase decisions.
c. Improved Image

A philosophy of customer satisfaction, carried out through policies and procedures at all level of the Toyota and its dealers stand behind their products and services and facilitates consumer trust in the Toyota name. 14

12. Comparative Analysis of Top and bottom NVSDS dealers

The result are summarized below: a. Financial Analysis - The overall net profit for the top dealers is almost one and one half time as much as the bottom NVSDS dealer. - Net profit as a percentage of total sales for the top dealer is 80 percent above that of the bottom dealer. - Net profit per employee is 67% percent higher for the top dealer when compared to the per employee contribution of bottom dealer 15

- Sale person turnover at the bottom NVSDS dealer occurs at close to twice the rate experienced by the top. b. Diagnostic Analysis The interesting aspect of the discrepancy in their scores is to see the measures for which the differences in performance are the greatest. The areas where the bottom NVSDS dealers need to place the most emphasis are in the thoroughness and consistency of performing the various delivery activities.
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Question & Answer 1. A statement of TOYOTA s long-term strategy should be for providing customer value.
It is comprehensive customer satisfaction system to gather voice of the customer information and communicate it throughout the organization. TMS managers were convinced that the best way to ensure customer satisfaction was to develop a sophisticated information flow for accurate and timely customer feedback. Such information would enable managers to quickly identify and correct any product deficiencies.
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2. Summarize the evidence which indicate that customer satisfaction should be a key strategy objective for TOYOTA. A. External indicators come from such sources as J.D power and other consumer growths B. Internal evidence comes from survey results relating product/dealer loyalty to satisfaction with various aspects of the sales and after sale process
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3. How does TOYOTA currently use customer satisfaction data to achieve improvement? Toyota uses the data to rank and rate individuals and dealerships. Effort are the focused on low performers. This is very distributing some the company is not understanding variability .

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4. How could TOYOTA make better use of its customer satisfaction data? A. There is evidence that Toyota does track response overtime. More decision about where to concentrate improvement efforts should come from this type of data analysis and less from the ranking and rating approach.

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 B. Combining some data about process variables with customer service feedback could be insightful: Example: Tracking service time Appointment time Number of customers arriving without appointments

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Thank You for attention

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