Why quality leads to more customers.
Have you ever had this conversation with an IT department?
You – ‘Can you help me with something?’
IT – ‘Sure, what do you want?’
You – ‘I don’t know, that’s why I came to see you.’
IT – ‘Well if I don’t know what you want I can’t help.’
Etc etc etc. Crikey it’s time for a lie down….
Franky this is exhausting. There isn’t anyone at fault here, it is an all-too-common problem. In-fact, it is symptomatic of a wider issue that involves a supplier and a customer. How does the supplier know what a customer wants? How does the customer communicate this to a supplier? How does the supplier acknowledge and act?
The understanding of a customers requirements is at the heart of any relationship between customer and supplier. It is a delicate balance. Too much supplier driven and products are developed that nobody is keen on buying. Too much customer driven and it becomes hard for suppliers to evolve and adapt at the same pace.
This is where quality as a business objective comes in. Quality is defined as ‘the extent to which a product satisfies requirements’. Too often we can be tempted to think of quality as people in brown coats walking around checking a product or one that looks attractive and well made. But, if it does not start with the customer it is all for nothing.
That is why the customer is king in the quality process. Unless the product matches their requirements then quality has not been achieved. Of course, the supplier has to introduce the standards and measures to ensure the product is delivered to meet these requirements, but essentially it all starts with them being known.
So, how can suppliers ensure that the customer remains king in this process? By obtaining accurate information from the customer as to what they want. Too often suppliers try and sell, rather than listen and understand what those requirements are. According to a recent survey 25% of consumers have stopped doing business with a company after a single negative experience. (1) By asking questions, qualifying and then matching requirements with capabilities the supplier is able to ensure the customer is more likely to be satisfied.
This all sounds very simple, but how does it work in practice? It involves customer facing staff developing the skills to be able to seek, record and act upon the information of the client. This is particularly true in service or professional based businesses, where making that connection with the client and meeting their needs secures the sale. It also counts where supplier’s can react to a client problem in real time, rather than close a potential opportunity down because it might not fit the sales script they are provided with.
The potential is considerable, The Institute of Customer Service has said that there is a 78.4% satisfaction score on all goods and services in the UK. (2) ?Do you know what I am thinking? ?There are nearly 25% of businesses out there where the product does not satisfy, what an opportunity as a supplier!
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The suppliers who recognise this have a competitive advantage in better understanding what their customers want and are far more likely to gain customers, building profitable and sustainable relationships. Boston Consulting calculates that companies are losing a staggering $2 trillion in potential revenue by using outdated sales and marketing processes. (3) ?This can be undertaken through the targeted implementation of the skills. The customer is king, but the supplier reaps the benefit because they can supply what is wanted. That is the foundation of an effective quality approach.
At Sara Penrose Ltd we recognise this business objective of being the client wanting to
-???????Discover, understand and use information to establish requirements and how to deliver.
We develop our clients teams with the skills of critical thinking, lateral thinking and problem solving to be able to achieve this and bridge the gap with their customers as part of our optimisation programme. So, if you want more satisfied customers, contact us for a chat.
1.?????Bableforce
2.?????The Institute of Customer Service
3.?????Boston Consulting Group
John Henderson – Co-founder and Director
Sara Penrose Ltd
Optimising performance through skill development
? Sara Penrose Ltd 2023