Is Customer Satisfaction Worth it? - TrueNorth …...2010/01/28 · Is Customer Satisfaction Worth it? (8:00 AM Wednesday) Lean Design –the next big thing (Simpad/ Blackpoint #

Scott SedamTrueNorth Development

Copyright 2010 by TrueNorth Development IncDo not reproduce without permission

Is Customer Satisfaction Worth it?

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Customer Satisfaction

Is it worth it?

We Practice Lean … and Green!We have limited materials for those who can’t wait

White Papers available for download: www.truen.com“New Eyes” - an intelligent approach to Lean Building

“Lean Design” – The $10K Solution

Presentation handouts are available on MondayThe Rebirth of Operations (10:00 AM Tuesday)

Is Customer Satisfaction Worth it? (8:00 AM Wednesday)

Lean Design – the next big thing (Simpad/ Blackpoint #Wednesday 2:00 Thursday 11:00

New Monthly Feature in Pro Builder & HousingZone.comThe Lean Design Forum – audio and print

Please join our Lean Building Forum on Linked In




Is it worth it?

Is Customer Satisfaction Worth It? The Obvious Question …

Worth what?

The money?

The time?

The training?

The “Brain Damage?”

A provocative question: What is the “it” in “Is Customer Satisfaction worth it?”




Is it worth it?

What is “It”? “Same old – same old … with a caveat”

Boils down to a Price/Value calculation

Every builder makes this calculation

Strategically

Tactically

Price – what does it cost you to get C/S?

Value – what are the benefits?




Is it worth it?

About that great data Charlie showed you …

Most builders … will agree on the cost side of the price/value equation

Most builders … will ignore the data on the benefit side

Just one more paradigm problem

Accept what they like … reject what they don’t

The result?




Is it worth it?

A Builder’s stance on

Customer Service is based

primarily on the personal

biases of leadership

More than 20 years of empirical observation says




Is it worth it?

The Caveat -Enter the 800 pound Gorilla …

JD Power + the Internet = profound impact

Love it or hate it … impossible to ignore. The only name the customer knows.

Significant change on the value side of the equation

Builders forced to care, even if they had no desire




Is it worth it?

What are you willing to invest in “it?”

Since JD Power, Customer Satisfaction is up.

As Dr. Deming asked,“BY WHAT METHOD?”

4 approaches have evolved




Is it worth it?

Primary Methods of C/S delivery

• The Disneys

• wow them through the process

• “Let’s give ‘em somethin’ to talk about!”




Is it worth it?


• The Demings

• process fanatics

• do it right the first time

• problem avoidance




Is it worth it?


• The Handymen

• Fix ‘r up – before the close

• Git ‘r done now is cheaper than later




Is it worth it?


• The Salvage Crew

• Fix it after its broke

• Suck up mightily (“Order more fruit baskets, Lisa!”)




Is it worth it?

JD Power Fun Fact:

In the 10 year history, one company remains at the top on a national basis

Plenty of local companies compete

Their lead has gone from “dominant” to merely “significant”

My analysis may or may not apply to the past 2 years of results …

Is there a formula that can be emulated?




Is it worth it?

“You cannot copy. You must understand why!”Dr. W. Edwards Deming

Handymen ModelHigh dollar cost

High “psychic cost” internally

Salvage Crew ModelHorrific dollar cost

High “psychic cost” internally AND externally

Scott’s Prescription:Based on the Deming Prevention Model - Competence

A dose of Disney - Relationships

A strong recovery process




Is it worth it?

Is there a secret? Yes, actually

The “Deming Model” advantage:

By building it right the first time, every time, on time, you eliminate 90% of the need for service intervention

This eliminates at least:

• 20% of the work of internal functions

• 30% of the work of sales

• 50% of the work of field staff




Is it worth it?

Prevention: The Rule of 1 - 10 – 100aka The Good, The Bad & The Ugly

• PREVENTION (1)

• the good

• INSPECTION (10)

• in-process failure

• we find & fix

• the bad

• FIELD FAILURE (100)

• post-delivery failure,

• customer finds, we fix

• the ugly




Is it worth it?

… and a new category

• TOTAL BREAKDOWN (1,000)

customer finds (or imagines)

we DON’T fix

customer calls Attorney,

the Media or Both

the truly hideous




Is it worth it?

The Result … “Scary Simple”

Customer issues … “failure” … are rare

When you do have them, you people have time to hold the customer’s hand while getting things fixed –quickly.




Is it worth it?

What happens when your Superintendent spends all day dealing with things like this?

WHO KNEW?

1. Framer

2. Roofer

3. Window Installer

4. Drywaller

5. Trim Carpenter

6. “Tyvek guy”

7. Sider

8. Superintendent

9. Architect???




Is it worth it?

An Isolated Case?


1 2 3

4 5 6

I have hundreds of these pictures … but they all contribute to “Hair on Fire!”



Is it worth it?

Is Customer Satisfaction Worth it?Is there ANY better indicator?

Customers are at the far end of an incredibly complex chain

Making money without satisfying customers is a self-extinguishing proposition




Is it worth it?

Is Customer Satisfaction Worth it?




Is it worth it?

The only question is delivery.

1. Disney ?

2. Deming ?

3. Handymen ?

4. Salvage Crew?

“Dr. W. Edwards Disney” has the answer




Is it worth it?

Remember, as the good Dr. Deming saidat the end of all of his workshops,

All we have to offer you is …

Profit!




Is it worth it?

We Practice Lean … and Green!We have limited materials for those who can’t wait

White Papers available for download: www.truen.com“New Eyes” - an intelligent approach to Lean Building

“Lean Design” – The $10K Solution

Presentation handouts are available on MondayThe Rebirth of Operations (10:00 AM Tuesday)

Is Customer Satisfaction Worth it? (8:00 AM Wednesday)

Lean Design – the next big thing (Simpad/ Blackpoint #Wednesday 2:00 Thursday 11:00

New Monthly Feature in Pro Builder & HousingZone.comThe Lean Design Forum – audio and print

Please join our Lean Building Forum on Linked In


Documents

Is Customer Satisfaction Worth it? - TrueNorth …...2010/01/28 · Is Customer Satisfaction Worth it? (8:00 AM Wednesday) Lean Design –the next big thing (Simpad/ Blackpoint #