Tag: consumer

Confirmed: Perceived Quality Affects Customer Advocacy More Than Any Other Element

The September issue of Harvard Business Review  includes an article related to The Elements of Value. In the article, a study highlights what customers value in products varies by industry.

1472758161An included table summarizes the top 10 elements of value that various industries find influence loyalty. (Left)

The 10 types of businesses evaluated include:

Apparel/Retail
TV Service Providers
Discount Retail
Consumer Banking
Grocery
Brokerage
Food and Beverages
Auto Insurance
Smartphones
Credit Cards

 

See anything in common? For all industries noted, “Quality” is referenced at the top of the list.

“Some elements do matter more than others. Across all industries studied, perceived quality affects customer advocacy more than any other element. Products and services must attain a certain minimum level, and no other elements can make up for a significant shortfall on this one.”

“A rigorous model of consumer value allows a company to come up with new combinations of value that its products and services could deliver. The right combinations, pays off in stronger customer loyalty, greater customer willingness to try a particular brand, and sustained revenue growth.”

Why quality, why now?

Why quality?

At the end of the day, successfully incorporating quality into corporate-wide practices will cost you less, not more, and reap some fairly distinguishable benefits, like…

  • A decrease in costs due to less reworking, consequently producing less scrap
  • Social responsibility (they go hand-in-hand)
  • An improvement in productivity due to less time spent on reworking
  • An improvement in cycle time due to less time spent on correcting mistakes and more time being spent on value-added activities
  • A competitive advantage that supports a solid brand and positive public perception
  • Increased employee satisfaction and retention (reduction in costs associated with turnover)
  • An overall improvement in service

Pro QC’s first Feature Article in the quarterly newsletter discussed Determining the Costs of Quality in more detail.

Why now?

Former U.S. President Ronald Reagan once said “consumers, by seeking quality and value, set the standards of acceptability for products and services by voting with their marketplace dollars.”  This is true… and, we know that consumers tighten that flow of marketplace dollars in times of economic uncertainty.

So, the “bang for the buck” is scrutinized. What better time for introspection… for examining processes and figuring out what’s working and what’s not?  It’s a perfect time to reinvest, develop supplier relationships and forge ahead for growth.  It’s a perfect time to tell consumers what you’re about and why they should cast their vote on you!