2006 Baldrige Criteria: Item 3.2 - Customer Relationships and Satisfaction

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Item 3.2: Customer Relationships and Satisfaction (45 pts.)
How do you build relationships and grow customer satisfaction and loyalty?

 Process

Describe how your organization builds relationships to acquire, satisfy, and retain CUSTOMERS; to increase CUSTOMER loyalty; and to develop new opportunities.

Describe also how your organization determines customer satisfaction.

Within your response, include answers to the following questions:

3.2a. Customer Relationship Building

(1)      How do you build relationships to acquire CUSTOMERS, to meet and exceed their expectations, to increase loyalty and repeat business, and to gain positive referrals?

(2)      HOW do your KEY access mechanisms enable CUSTOMERS to seek information, conduct business, and make complaints?

What are your KEY access mechanisms?

HOW do you determine KEY CUSTOMER contact requirements for each mode of CUSTOMER access?

HOW do you ensure that these contact requirements are DEPLOYED to all people and PROCESSES involved in the CUSTOMER response chain?

(3)      How do you manage customer complaints?

How do you ensure that complaints are resolved effectively and promptly?

HOW do you minimize CUSTOMER dissatisfaction and, as appropriate, loss of repeat business?

HOW are complaints aggregated and analyzed for use in improvement throughout your organization and by your PARTNERS?

(4)      HOW do you keep your APPROACHES to building relationships and providing CUSTOMER access current with business needs and directions?

3.2b. Customer Satisfaction Determination

(1)     How do you determine customer satisfaction and dissatisfaction and loyalty?

HOW do these determination methods differ among CUSTOMER groups?

HOW do you ensure that your MEASUREMENTS capture actionable information for use in exceeding your CUSTOMERS’ expectations, securing their future business, and gaining positive referrals?

HOW do you use customer satisfaction and dissatisfaction information for improvement?

(2)      HOW do you follow up with CUSTOMERS on products, services, and transactions to receive prompt and actionable feedback?

(3)      HOW do you obtain and use information on your customers' satisfaction relative to their satisfaction with your competitors, other organizations providing similar services, and/or industry BENCHMARKS?

(4)      HOW do you keep your approaches to determining satisfaction current with business needs and directions?

Notes:

N1. Customer relationship building (3.2a) might include the development of PARTNERSHIPS or alliances with CUSTOMERS.

N2. Determining customer satisfaction and dissatisfaction (3.2b) might include use of any or all of the following: surveys, formal and informal feedback, CUSTOMER account histories, complaints, win/loss ANALYSIS, and transaction completion rates. Information might be gathered on the Internet, through personal contact or a third party, or by mail.

N3. Customer satisfaction MEASUREMENTS (3.2b[1]) might include both a numerical rating scale and descriptors for each unit in the scale. Actionable customer satisfaction MEASUREMENTS provide useful information about specific product and service features, delivery, relationships, and transactions that affect the CUSTOMERS future actions—repeat business and positive referral.

N4. Other organizations providing similar products or services (3.2ba[3]) might include other organizations with whom you don't compete but provide similar products and services in other geographic areas or to different populations of people.

N5. Your customer satisfaction and dissatisfaction RESULTS should be reported in Item 7.2.

N6. For some nonprofit organizations, (e.g., some government agencies or charitable organizations), customers may be assigned or may be required to use your organization, and relationships may be short term. For those organizations, relationship building (3.2a[1]) might be focused on meeting and exceeding expectations during the short-term relationship, resulting in positive comments to other people, including key stakeholders of your organization.

For additional description, see 3.2 Customer Relationships and Satisfaction Description.

2006 Criteria Items: 1.1 - 1.2 - 2.1 - 2.2 - 3.1 - 3.2 - 4.1 - 4.2 - 5.1 - 5.2 - 5.3 - 6.1 - 6.2 - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - P.1 - P.2

Click here to download a copy of 2006 or 2007 Baldrige Actionable Criteria

Baldrige Framework - Business Nonprofit Click to see what's new in the 2008 Business and Public Sector and other Nonprofit Criteria Framework and Criteria (Hint: ACTIONABLE)

Baldrige Health Care Framework Click to see what's new in the 2008 Health Care Criteria Framework and Criteria (Hint: ACTIONABLE)

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Paul Steel Original 1988 Baldrige Examiner, longest serving active member of NIST Board of Examiners, 2008 Baldrige Senior Examiner trained, EFQM experienced, and a management systems consultant since 1981.

President, Total Quality Inc (see sample of international organizations using TQI Baldrige services and/or software)
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