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Industry Internship TM 391. Lecture 3. TQM’s Customer Approach. “the customer defines quality.” “the customer is always right.” “the customer always comes first.” “the customer is king.” “quality begins and ends with the customer”. Types of Customers.

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Industry internship tm 391

Industry InternshipTM 391

Lecture 3

Tqm s customer approach
TQM’s Customer Approach

  • “the customer defines quality.”

  • “the customer is always right.”

  • “the customer always comes first.”

  • “the customer is king.”

  • “quality begins and ends with the customer”

Types of customers
Types of Customers

  • External - outside the organization (people who pay the bills.)

    • End-user customers

    • Manufacturer (OEM) for suppliers.

  • Internal - people within your organization who receive your work

  • In many situations, producers have multiple customers and therefore find it useful to identify “core customers”

Some data on customer attitudes and loyalty
Some Data on Customer Attitudes and Loyalty

  • (Source: Winning Back Angry Customers, Quality Progress, 1993)

  • An average customer with a complaint tells 9-10 people; if it is resolved he/she only tells 5 people.

  • For every complaint received, there are twenty others that are not reported.

  • It costs 5-10 times more in resources to replace a customer than it does to retain one.

  • Companies spend 95% of service time redressing problems and only 5% trying to figure out what made the customer angry.

Measuring customer satisfaction
Measuring Customer Satisfaction

  • Example: J.D. Power -- Initial Quality Survey measures customer satisfaction - problems per 100 vehicles.

  • Effect of J.D. Power IQS on automotive quality?

    • 1998: 176 problems per 100 vehicles*

    • 2005: 118 problems per 100 vehicles*

  • How does greater customer awareness impact quality?

Methods to collect customer satisfaction data
Methods to CollectCustomer Satisfaction Data

  • Negative Feedback Analysis

    • customer complaints, warranty claims, repair records…

    • focus on problems

    • concern: many dissatisfied customers do not complain (1/20 complain).

  • Proactive Feedback (ask customers for their opinions)

    • examples: customer surveys, focus groups, “employees” as customers.

    • advantage: identify key product features and assess levels of performance.

  • Analysis of Competitor Products

    • examples: Benchmarking, “War Rooms” or Tear Down Analysis

    • advantage: “Know thy competitor, know thyself”

Identifying customer needs
Identifying Customer Needs

Possible solutions

  • focus-group discussions

  • individual and group interviews

  • surveys

  • comment cards

  • study repair and return data

  • customer complaints

  • warranty claims

  • analyze competitor products

Types of

Types of


Types of customer s
Types of Customer’s.

.Based on unique behavioral attributes, customers are of following types

  • .Loyal customer

  • .Discount customer

  • .Impulse customer

  • .Need based customer

  • .Wandering customer

Loyal customer
Loyal Customer

.They represent no more than 20 percent of our customer base, but make up more than 50 percent of our sales.

.Nothing will make a Loyal Customer feel better than soliciting their input and showing them how much you value it.

. These people are the ones who can and should influence our buying and merchandising decisions

.We need to be communicating with these customers on a regular basis by telephone, mail, email, etc..

. Customer satisfaction will lead to customer expectation.

. 1 Satisfied customer will lead to 500 new customers.

. the more you do for them, the more they will recommend you to others.

Discount customer

They shop our stores frequently, but make their decisions based on the size of our markdowns

Discount Customer

. based on the size of our markdowns This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash flow

.This same group, however, can often wind up costing you money because they are more inclined to return product.

.Merely satisfied customers, also show defection ready to switch.

.Chase low prices.

.Milk these customers as long as they are active or in discount seasons.

Impulse customer
Impulse Customer based on the size of our markdowns

They do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim. They will purchase what seems good at the time.

  • Clearly, this is the segment of our clientele that we all like to serve.

  • There is nothing more exciting than assisting an Impulse shopper and having them respond favorably to our recommendations.

  • They will purchase what seems good at the time

  • Buy on impulse.

  • Maximize the profit on each transaction.

  • Pursue fashion trends.

Need based customers
Need Based Customers like to serve.

  • People in this category are driven by a specific need.

  • When they enter the store, they will look to see if they can have that need filled .if, not they will leave right away

  • It is difficult to satisfy these people.

  • Customers are habitual of particular brand.

  • Show inertia in brand switching. like to serve.

  • Need based customer can easily be lost to internet sales or a different retailer.

  • So to overcome this threat, positive personal interaction is required.

  • They can also become loyal customers if they are well taken care of.

Wandering customer
Wandering Customer like to serve.

  • They have no specific need or desire in mind when they come into the store.

  • They want a sense of experience or community.

  • They make up the smallest percentage of sales.

  • keep in mind, however, that although they may not represent a large percentage of your immediate sales, they are a real voice for you in the community.

  • Although wandering customers cannot be ignored, the time spent on them needs to be minimized.

Provide services to colleagues and customers

Provide Services to Colleagues and Customers like to serve.

Guest Relations

Complaint Handling

Types of customers1
TYPES OF CUSTOMERS like to serve.


    People with whom we work



    - International tourists

    - Families

    - Business Travellers

    - People with disabilities

    - Difficult customers

Provide Service to colleagues and customers

What are wants needs and expectations
What are wants, needs and expectations? like to serve.

  • Needs

    • A human need is a state of felt deprivation

  • Wants

    • A form taken by human needs as they are shaped by culture and individual personality

  • Expectations

    • To be treated with respect

    • To be made welcome

    • To receive timely and professional assistance and service

    • To be understood

    • To feel important

    • To be appreciated

    • To be recognised

    • To enjoy the experience

Provide Service to colleagues and customers

Factors influencing needs and expectations include
Factors influencing needs and expectations include like to serve.

  • Social

  • Cultural

  • Economic

  • Health

  • Age

  • Personality

  • Personal interests

  • Likes and dislikes

  • Time Available

  • Perception

Provide Service to colleagues and customers

Needs and expectations of customers could include
NEEDS AND EXPECTATIONS OF CUSTOMERS could include like to serve.

  • Basic Human Needs

    Food, Shelter, Security,Social and Esteem

  • Special services and facilities

  • Entertainment

  • Information

Provide Service to colleagues and customers

What would you consider when dealing with guests with special needs
What would you consider when dealing with guests with special needs?

  • Physically challenged – mobility impaired, hearing impaired or blind

  • Intellectually challenged

  • Pregnant women

  • Families with children

  • Unaccompanied children

  • Business travelers

  • Travelers with special cultural or language needs

  • Elderly travelers

Provide Service to colleagues and customers

Customer service skills include
Customer Service Skills include special needs?

  • Meeting customer requirements

  • Demonstrating communication skills – listening and questioning techniques

  • Handling customer requests and complaints

  • Developing a rapport

  • Promoting suitable products and service to enhance experience

    To deliver quality service we must also demonstrate appropriate work ethics and behaviour.

Provide Service to colleagues and customers

What is quality service
What is quality service? special needs?

  • You could describe customer service as the art of relating to your customers so they feel comfortable, looked after, satisfied, special and welcome.

  • Service excellence is achieved when the enterprises’ services and facilities not only meet but exceed the guests expectations.

  • Can you think of when this has happened to you?

  • Can you think of when you may have delivered quality service to a customer?

Provide Service to colleagues and customers

What we need to provide quality service


    - Of your customer

    - Of how to do your job

    - Of all services and facilities in your hotel

    - Of local and state attractions


    - Interpersonal skills

    - Anticipation of your customer needs


    - Genuine desire to help your guests - whether solving

    problems or just making sure they have a great stay

    - Positive attitude at all times

    - Proactive – providing help and guidance without necessarily being

    asked – guests feel they can depend on you

    - Displaying tact and diplomacy

Provide Service to colleagues and customers

Steps to ensure we give quality service
Steps to Ensure we give Quality Service! special needs?

  • Anticipate needs

  • Welcome customers warmly – with a warm genuine smile

  • Listen and probe - ask open questions

  • Reflective listen

  • Offer an action plan to deliver what they want

  • Agree on this plan

    What? Where? When? How?

  • Avoid broken promises

  • Follow up to check everything is up to their expectations

    Combine this with:

  • Communicating in a language they can understand

  • Tune into their individual needs – by observation

  • Use their name – wherever possible

Provide Service to colleagues and customers

Maintaining quality service
Maintaining Quality Service special needs?

  • Organisation and staff responsibilities

    • Training of staff

    • Good communications between departments

    • Established work programs

    • Good awareness of activities within other departments

      Importance of quality customer service to hospitality industry

    • Customers have come to expect quality service

    • Competition demands quality service

    • Quality service is the key to business success

      Quality service requires you to be one step ahead of the customer – anticipating their needs

Provide Service to colleagues and customers



  • Have I considered all the customer needs?

  • What could the customer need next?

  • How can I improve the service now for the customer?

    Then offer to provide that service - without the customer having to ask!

    Have you ever anticipated a customers needs?

Provide Service to colleagues and customers

How do you know when we ve given quality service
How do you know when we’ve given Quality Service? special needs?

  • Increased job satisfaction

  • Positive performance appraisals

  • Gratuities – tips/gifts

  • Thank You - by letter or verbally

  • Enhanced reputation

  • Establishment winning quality awards

  • Returning guests

  • Guest Comment Cards - Questionnaires

Provide Service to colleagues and customers

Why people complain
WHY PEOPLE COMPLAIN? special needs?

  • From frustration

  • To impress other people

  • For compensation

Provide Service to colleagues and customers

When dealing with a guest complaint never
When dealing with a guest complaint - NEVER special needs?

  • Talk down to the customer

  • Be defensive

  • Justify why it happened

  • Blame other people or departments

  • Blame the customer

Provide Service to colleagues and customers

Complaint handling procedure

  • Listen without interruption

  • Don’t get defensive

  • Use a ‘sad but glad’ expression

  • Express concern and empathy - apologise sincerely

  • Establish the problem - ask questions

  • Find out what they want

  • Explain what you can and cannot do

  • Fully discuss alternatives

  • Take Action

  • Follow up to ensure they are happy

Provide Service to colleagues and customers

Handling Complaints special needs?

  • Information recorded accurately in Complaint Log

  • Recognised complaint handling procedure followed

  • Relevant department or personnel consulted

  • Follow up to ensure everything is resolved - record action in Log

  • Log reviewed to see if on going/multiple complaints being received and what steps can be taken to rectify.

Provide Service to colleagues and customers

Empowerment special needs?

The person who takes the complaint owns the complaint.

You should try to resolve the complaint to the best of your ability.

Do you know what you can do to resolve a complaint without calling for a manager or supervisor?

Provide Service to colleagues and customers

Complaint recording and follow up procedures
Complaint Recording and Follow Up Procedures special needs?

All complaints must be handled diplomatically so all parties recognise:

  • The issue has been raised with relevant authority

  • All points of view have been aired

  • Discretion will be applied in resolving the matter

  • Due process will be followed

  • Action will be taken and the matter will be remedied

    You must establish the details of the customer complaint through

  • Questioning and active listening techniques

  • Summarising and clarifying the issue

  • Recording details of complaint

  • Discussing with customer the process of resolution – giving them options and letting them know how the complaint will be resolved

    You need to know the lines of reporting complaints and when to seek assistance

Provide Service to colleagues and customers

Benefits of positive handling of complaints
Benefits of positive handling of complaints special needs?

The value of amicably resolving complaints can not be underestimated and include:

  • Promoting goodwill

  • Improved customer relations

  • Positive work of mouth publicity

  • Promotion of enterprise service ethic

Provide Service to colleagues and customers


  • A complaining customer is somebody whose needs and expectations have not been met

  • A difficult customer is somebody who is a challenge to serve because of their personality, for example, they may be rude, impatient or talkative

Provide Service to colleagues and customers


  • Rude

  • Impatient

  • Noisy

  • Talkative

  • Confused - unable to make decisions

  • Silent

  • Fussy

Provide Service to colleagues and customers


  • Rude Customer

    Can be rude to everyone - they just

    don’t feel comfortable being nice.

    DO Ignore their rudeness and don’t take it personally

    DON’T Become Rude and Aggressive

  • Impatient Customer

    Always in a hurry - and it won’t matter how quickly you serve them - they will still be impatient

  • DO Serve them quickly and politely

  • DON’T Waste their time with conversation and they may not want you trying to sell them products and services

Provide Service to colleagues and customers


  • Confused Customer

    Find it difficult to make decisions and may take a long time

    to decide

    DO Be helpful by making suggestions and asking questions

    DON’T Rush them - they could become flustered and embarrassed

  • Talkative Customer

    Wants to talk and could spend all day doing it

    DO Be friendly and attentive - Lead the conversation

    DON’T Ignore them or give them all your attention

    so other customers are ignored

Provide Service to colleagues and customers

Thank you