Total Quality Management - CII Institute of Logistics

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Total Quality Management much more focused on “selling” the customer a product that may or may not meet the customer’s needs. Quality is directly related to market share and to profitability. Quite a few studies have shown that people are willing to pay more for products that they perceive as having high quality. Thus, without high quality, good marketing of products and services would appear to be impossible, since salespeople would have little to sell that would meet the needs of their customer. However, without good marketing, where salespeople listen and respond to the needs of customers, even the best-designed products will remain unsold. CRM at Amazon.com Amazon’s CRM software helps in multiple ways to gain market share and maintain competitive advantage over their rivals. The list of the characteristics that make up their vision of customer service points to numerous features that are hard to duplicate in conventional websites or store chains. For instance, Amazon: has deep selection that is unconstrained by shelf space. turns their inventory 19 times in a year. personalizes the store for every customer. trades real estate for technology displays customer reviews critical of their products. allows customers can make a purchase with a few seconds and one click. puts used products next to new ones so customers can choose. shares their prime real estate, their product detail pages, with third parties, and, if they can offer better value, they let them adopts leading-edge technology for the company’s website has served customer needs by being one of the early pioneers to develop software for “collaborative filtering” of customer data Advantages of CRM Approach to Amazon Segmenting markets based on demographic and behavioral characteristics, Tracking sales trends and advertising effectiveness by customer and market segment, CII Institute of Logistics 20 Website: www.ciilogistics.com
Total Quality Management Identifying which customers should be the focus of targeted marketing initiatives with predicted high customer response rates, Forecasting customer retention (and defection) rates and provides feedback as to why customers leave a company, Studying which goods and services are purchased together, leading to good ways to bundle them, and Studying and predicting what Web characteristics are most attractive to customers and how the Web site might be improved. The capabilities of its high-tech warehouses, such as its nearly perfect process for sorting multiple item orders. 1.10 Customer Focus Delineations The Importance of Customers Organizations only continue to exist because of their ability to meet their external customer requirement. The needs of external customers must drive all the internal processes within the organization. It is no good continuously improving the effectiveness of the internal processes if, at the end of the day, they are not producing the outputs which the customer requires. It is essential that organizations understand: i. Who are their external customers and what are their requirements? ii. Who are the internal processes, which produce the service or product required by the external customer? iii. Their customers’ perceptions of current performance iv. How performance can be improved? When implementing a Quality Improvement Program [QIP], it is easy to fall into the trap of becoming focused internally; concentrating resource on improving internal CII Institute of Logistics 21 Website: www.ciilogistics.com
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