How to Improve Quality to Increase Customer Retention
When it comes to delivering what we promise, mistakes sometimes happen. We are, after all, human. As business owners, we strive to keep customers happy, so when mistakes occur, we do what we must to make it right. Often this means we do it over or go back and fix it.
Getting it right for the customer is certainly a key to retention and future referrals. But if we don't address the root cause, the problem will occur again and will continue to erode profit and your reputation.
So how can you reduce the quality problems in your business?
First, understand the true cost of poor quality. When work needs to be redone, it costs you three times. First you pay for the original work, second you pay for the work to be done again, and third, the opportunity cost of lost revenue that you could have earned on new work if you weren't fixing the old work. Do the math – it's often enough to motivate owners to focus more on quality.
Next, look at the systems and procedures you have in place. When mistakes occur, the tendency is to blame the people involved. Sure people implement your systems, but well documented procedures, supported with training, can help reduce the human error that causes mistakes to occur in the first place.
Here's a few things to consider as you develop or modify your systems:
Next, consider the people element. Are your people trained to implement your systems? Do they possess the skills needed to do the work? The right people, properly trained, with the right systems can make a big difference.
Finally, measure quality in your business. Depending on the type of business, this may include rejects or rework, on-time delivery, customer complaints, etc. Select what is relevant and begin tracking it. Share it with your team and set goals together for improvement.
The right systems and people can go a long way to help you get it right the first time. Make it a focus in your business – and you'll create raving fans and a healthier bottom line.
Getting it right for the customer is certainly a key to retention and future referrals. But if we don't address the root cause, the problem will occur again and will continue to erode profit and your reputation.
So how can you reduce the quality problems in your business?
First, understand the true cost of poor quality. When work needs to be redone, it costs you three times. First you pay for the original work, second you pay for the work to be done again, and third, the opportunity cost of lost revenue that you could have earned on new work if you weren't fixing the old work. Do the math – it's often enough to motivate owners to focus more on quality.
Next, look at the systems and procedures you have in place. When mistakes occur, the tendency is to blame the people involved. Sure people implement your systems, but well documented procedures, supported with training, can help reduce the human error that causes mistakes to occur in the first place.
Here's a few things to consider as you develop or modify your systems:
- What customer information or data is critical to fulfill the customer order or delivery of service. What is the procedure when something is missing – so staff members don't simply ‘assume' – often incorrectly.
- What are the common problems or mistakes that occur. Identify them and what can be done to reduce them. Often highlighting potential areas of confusion or concern is enough to reduce problems.
- What quality control checks are in place to catch mistakes along the way or before they happen?
- Are there decision points with clear direction to address exceptions that may occur?
- What technology can you employ within the procedures to help you improve?
Next, consider the people element. Are your people trained to implement your systems? Do they possess the skills needed to do the work? The right people, properly trained, with the right systems can make a big difference.
Finally, measure quality in your business. Depending on the type of business, this may include rejects or rework, on-time delivery, customer complaints, etc. Select what is relevant and begin tracking it. Share it with your team and set goals together for improvement.
The right systems and people can go a long way to help you get it right the first time. Make it a focus in your business – and you'll create raving fans and a healthier bottom line.
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