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The
third Baldrige category examines how an organization determines
customer and market requirements, expectations, and preferences,
how it builds customer relationships, and how it determines
customer satisfaction.
Many
organizations assume they know what their customers require
but lack any formal processes for determining or checking
these requirements. Since this is the foundation of an effective
management system, an organization can find itself on shaky
ground and never know why. World-class organizations follow
systematic approaches to gathering information about customer
requirements from many sources, including focus groups, customer
advisory councils, surveys, and customer visits.
The
goal of building customer relationships is to develop loyal
customers. Studies have shown that very satisfied customers
are six times more likely to repurchase than satisfied customers.
A rock-solid understanding of customer requirements and an
unwavering commitment to strong customer relationships will
help produce loyal customers.
Customer-driven excellence, a Baldrige core value, "is thus a strategic concept," according
to the Baldrige criteria. "It is directed toward customer
retention, market share gain, and growth."
The
complete 2003 Baldrige criteria for Business, Education and
Helath Care are provided for free download.
Proceed
to another Baldrige category: Leadership; Strategic Planning; Information and Analysis; Human Resource Focus; Process Management; Business Results.
wednet@baldrigeindo.com
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