Quality improvements can drive profitable revenue growth. Higher quality products, services and your customers’ experience lead to revenue growth by reducing the need for discounting and by increasing opportunities for cross-selling and up-selling. Improved quality ensures profitability by eliminating re-work and reducing unsalable inventories.
The big question is how to measure quality in the absence of absolute standards. There are three possible relative-to questions:
- Relative to a prior period: How do my products, services and customer experience compare to those of a prior period? This is the easiest question to answer, but the least satisfying to current customers who might sensibly ask: “You mean that what I bought last year/month/yesterday wasn’t really good?”
- Relative to the performance of competing options: How do my products, services and customer experience compare to a competitor’s or to the customers’ own solutions? This head-to-head comparison is hard to assess because you and your competitors probably measure things differently. And, your competitors only talk about their strong product dimensions.
- Relative to meeting the needs and expectations of customers: Does my product and / or customer experience truly meet customers’ needs? This is the only relative-to comparison that actually matters. Answering it requires developing an in-depth understanding of your customers.
Key take away: Quality improvements can drive profitable revenue growth when the improvements are directly linked to improving the customers’ experience.
CustomersFirst Now (CFN) has been refining our Customer Experience (CX) solutions for more than 40 years – working with and for many Fortune 100 companies. We provide the only proven, predictive process that links customer delight to financial performance by incorporating and measuring best practices across all key business disciplines. For more information contact Vicki Raeburn, CFN Board Member, at email@example.com