Appraisal or Prevention! What's better?

In-process inspection inside a company is typically a 'cost of appraisal' for the company. 

Is the same true for a supplier, for her 'visit to customer for in-process inspection while installing the supplies' at customer's end as a part of the supplier's process!?

It's True, the said installation being a part of the process of the supplier company. 

It's, however, a 'cost of external failure' for the supplier if installation is customer's responsibility and she finds a defect/error in supplies while doing so. Otherwise, it's the 'cost of prevention' for the customer. 

In either of the cases, be it appraisal or prevention, it is a COGQ (cost of good quality) anyway as a part of the COQ (cost of quality)!

One may have to strike a balance though, while deciding upon spending on the latter, meaning on the visit to customer as a part of the process itself, especially in case of high-impact high-value industrial products. 

In any case, the COGQ in general and the other 'costs of prevention' in-house, in particular, may prove to be most beneficial and highly profitable at that.

Why not try validating this statement by calculating the components of Cost of  Quality, for a failed item that reached your customers in past!

Calculating the Cost of Quality (both the COPQ & COGQ), classifying the corresponding components as Tangible (Visible) Costs & Hidden Costs, and comparing them might help.

Also read a few relevant blogposts hereunder:

Do You Force Customers To Quit
In-a-problem ? No-problem! Dwell-a-while!
Customer or Custo-Mer ?  
Experienced A Delightful Payment ! 
An Experience of Heart-and-Soul 
Do you keep curing your brand ?  
A customer gets what s/he deserves: Shoddy Quality!  
Listen to iceberg of VOC to acquire customers 
Less With More And More Gets Sore 
Should one care for value ?  
Can-changing-thoughts-change-a-nation
Ridiculous Poison-culture versus Maverick Kaizen-culture 
Tolerate Once, Twice, Thrice?  
The Business Of Businesses 
That's how some business partnerships work 
Taken-For-Granted ? You Deserve It !! 
Strategise To Achieve Targets Daily 
Does recognition really matter 
That's How Morons Work
Simplicity Of Theory Of Relativity

Doesn't Matter Who Wins As Long As Customer Wins

There are n-number of comparisons in the market between Apple and Samsung fighting neck-to-neck for market-leadership position. Recently I came across one that addressed who-will-win between them. It had good comparison parameters in terms of innovation management, management leadership, brand, design, ecosystem compatibility, user experience, customer needs, profitability, growth, etc. 

For a customer whoever wins is OK as long as the customer herself wins. Knowing this winning companies win customers by making them win. In order to be in the league, suppliers have to speak to more of their own customers as well as that of the competition. They have to do this more often because hardly four percent (4%) of dissatisfied customers speak. Even loyalists don't speak at times. Hence to make all of them speak they have to articulate transactions with them more assertively without hurting them.

Here is an example of how much more the suppliers need to do by finding their own ways and means to capture such voice-of-customer (VOC). 

The solution wasn't there both in Apple as well as in Samsung device at least until the time I went to e-press to publish this post. Assuming that my search for the one on Google was inadequate, what I am surprised is why should it take so long to copy-paste such a simple feature that existed in Motorola sometime in 1997. I still have that model in my museum. 

Someone may say customer may have so many funny VOCs and behaviors. It's difficult to capture all of them especially the maverick wants in final offerings.

That's exactly the point I wished to express through this blogpost, the often repeated cliche: It's difficult but not impossible. And it can't be so difficult for it to take decades as in case of above example. 

There are many such funny VOCs floating around that can be accommodated without much costs. Easy ones everyone can do. The one who does so with difficult ones also and does so speedily without adding costs to the customer is the one who wins.

Looking forward to my above need in future models of one of these companies. In case you come across such one in future please do inform me through the comment box hereunder. 

A customer gets what s/he deserves: Shoddy Quality!

A Customer Complaint made to a reputed taxi service in Mumbai was: 

1/ The taxi booked was not found until few minutes after the appointed time. So the driver was called (by customer) to find out his 'whereabouts'.

Taxi was found to be parked away on road. The driver refused to go to customer's colony when requested. He threatened to go away if the customer did not go where the taxi was parked.

2/ Nor had he informed his arrival although he said that he had. In fact, customer called him up a few minutes after 'no-show'. Attached screen-shot of the customer's cell shows 'outgoing' to driver's number but not incoming from his number.

3/ On telephone as well as in person, when the driver was asked 'why he did not come inside the colony' he arrogantly replied: "Our Taxi-Service-Provider gives too much importance to Customer. (In his vernacular language: "Ye Taxi-Service-waleney Customer ko aisa, implying 'chadhake', banaya hai''...and so on).

Supplier's response after over a week of registering the complaint was:

"Please accept my sincere apologies for the inconvenience caused to you."

Where does the above real-life practice fit into business principles?

How should, a service provider wanting to stay and flourish in business, look at a typical customer complaint?

The above transaction is a typical case-study of INDIFFERENCE that should be avoided at all the touch-points with all stakeholders especially with customers by both the front-liners as well as the rear-end officers. (Reference 'world of Kaizen' book).

What is a customer's rightful 'expect'ation after a typical complaint (that hardly 4% of the dissatisfied customers choose to make):

1/ First of all the first-aid so that s/he gets quick relief. (In addition, apology is anyway expected but it's of no use without the First-aid.)

2/ Right to know specific details of what exact action was taken to prevent the situation from occurring in future.

How does a typical supplier respond. What INDIFFERENCE do most suppliers engage into:

1/ First of all they deny the complaint then they defend.

2/ They express dry apology without taking preventive action. Such an apology is like rubbing the wound. (The taxi service in above case fell in this category.)

3/ They don't keep customer informed about specific details of what exact action (if at all) was taken to prevent the situation.

4/ They expect customers to forget service-errors s/he had faced during the year in lieu of a yearly-gift-packet and/or sweets. While the gift 'dry-of-emotions' reinforces their vow to quit, most customers shamelessly accept it in exchange of an unexpressed abuse (to the supplier).

Funnily, a typical supplier doesn't mind recruiting a well-paid customer-care officer who is well-trained in handling an errate customer, and further training him in writing flowery letters so that 'issues' are taken 'care' of.

Result:  Customer continues the service provider only until s/he finds another option so that s/he can QUIT. Meanwhile, s/he plays the role of a devil-publicity-officer 'bad-mouth'ing the supplier's services among not less than a dozen prospective customers.

As someone says, it takes 10 times more money and efforts to acquire a new customer.

Isn't it wiser instead to invest this money in training associates on what the customer 'expects' rather than spending wastefully on reactively 'managing' the effects of indifference.

Should a customer bother about such 'small' issues?:

If s/he wants a change in such careless attitude, then yes!

S/he must play her small-bit-a-role though. Else, s/he should not blame suppliers for shoddy quality of service. S/he must help to get service-error out of the system which otherwise anyway will keep popping up above the carpet exactly when unwanted.

If and when it eventually does pop-up then the corresponding customer got what s/he deserved. Also s/he makes herself deserving to what s/he will get in future.

Customer or Custo-Mer?

That's what one is sometimes forced to say in Marathi: Custo-Mer.

Those who know Marathi (language of Maharashtra state in INDIA) know that  'Custo' (कष्ट), as it is pronounced in first part of the word customer, means 'donkey-like-efforts'. The second part 'Mer' (मर) pronunciation in Marathi means 'die'.

So, funny part of customer in colloquial language is: Custo-Mer (कष्ट-मर) is the one who is left to 'die' of his own 'donkey-efforts' in terms of endless followups to get a better service.

Most of us get such experience sometime or the other. Recently I reworked such 'efforts' like many others who were yet to receive their 'Aadhar-card' (a unique-identity-card for Indians), the card that is supposed to provide 'support' to the receiver (in terms of facilities yet to be fully known as of going to the press).

I had undergone through the entire procedure along-with necessary paperwork for 'Aadhar-card', 18-months ago on 13/08/2011 to be specific...Got the proof having done it.

Six of my family members 'enjoyed' a 'forced-leave' from 'work-day'. They stood in a long-queue that is typical of an  inefficient office to get certificates, cards, refunds, etc. 'Enjoyed' because theiIr website was full of entertainment in the form of fun-filled notifications on delays such as traffic-jams, system-failures, staff-shortage, etc.

All my family members received the card except me although going through the procedure bumper-to-bumper one-after-the-other.

I repeatedly checked 'status' of the card on department's website only to receive a message: "Sorry! we could not find Item Number in our System for this EID Number".

Since no one in their brick-n-mortar centers knew 'what to do in such cases', a couple of months ago I wrote to their HELPLINE 'help@uidai.gov.in' with all details for 'the needful'.

I  waited for a reply like waiting for a TOLL-FREE number attendant to answer back. Sometimes I wonder whether the auto-reply, toll-free, etc. kind of technologies are deliberately used to keep a customer away. Or may be waiting is due to staff on-line at both places were busy in attending people in queues at their brick-n-mortar centers. On-line or in-line,  in any case waiting is the common denominator. 

Today as though to compensate for an other extreme  experience (a 'satisfactory customer experience' that I had at other place) I had to stand in a long-queue at one of their brick-n-mortar 'Aadhar-card' centers to inquire my fate.

The girl at the center replied they might have lost the data. An example of how technology can be a 'boon' sometimes and can be a 'curse' sometimes!

She asked me to 'stand in a queue early morning at 7am' after 8-days so as to 'get a token and a date'... Then 'stand in a queue' again 'with token' on the given date alongwith papers for 'rework to get the card reissued. 

The question is why on-line systems do not work (in a country that teaches software to the world)?
Why can't they issue tokens on-line?
Why should the customers 'Mer' (die off extra eefforts) or why 'rework' of the suppliers forced upon them?

Of yes, I got the answer.

I was wrong in presuming myself to be a customer. Actually, I was a supplier of tax money to government. How can a supplier expect better treatment than this one. At most I was a Custo-Mer (कष्ट-मर).

So I nodded to the girl's suggestions agreeing to eagerly wait in their 'fun-filled queues'.

I hope the 'rework' does the 'work' this time.

25th September 2013 dawns! 

On reading the news that "Don't worry, Aadhaar is not mandatory for now" in DNA, I am back again on this blogpost after 5-months. 

In April, I had reworked the procedure as above to obtain the Adhaar-card second time. At the center I was told that the card will be delivered within a couple of weeks. On logging in to check status of my card, I got message on screen saying "Your card is under construction".

So the 'rework' department was yet to do work. While I kept my fingers crossed, I came across a few fuming tweets as in picture herebelow. 

With the "Don't worry" news in DNA, individually I may not be worried. But as an Indian the same news did worry me.

Because although with Aadhar-card, Indians seemed to be happy thinking they got Aadhar (support) Bangla-Paki infiltrators got nir-Aadhar (making availing of illegal benefits difficult to them). The news thus negated the latter. 

Where do we Indians look for Aadhar (support) now? Any tips? 

Do you keep curing your brand?

I requested telephone company to shift one of my landlines to my old house. It took one week for them to respond.

On 'the' day of shifting, I told their lineman about the instrument being defective: "Sometimes outgoing calls couldn't be made". As usual the reply was "instruments in short-supply". Having heard similar replies in past, I had installed a cordless anyway.

"I would appreciate if you please try (to test) a few from your go-down  You might get a good one in the dump there if I am lucky": without any expectations very politely I made a request to the govt employee.

Next day I was 'awestruck'. I saw the lineman in front of me with the instrument without any followup.

When did you last have a WOW experience like that?

For me it was 'one of it's kind delight' experienced over a past few months.

In a high-mistrust society, where "I will meet you at 9'O-clock" promise might mean 9 a.m. or 9 p.m. or whatever the '9' means to the parties concerned, there are more chances of you getting 'awfully struck' than 'awestruck with a WOW'.

Although spiritual person in you may look for a positive awe even in an awful experience, in practical business sense what does one expect: A product to perform to it's specifications just as one would expect a person to perform his duty and fulfill his promise.

In real life, past experience about a product or a person does stay in mind making one knowledgeable about what/who does or do not fulfill a promise consistently and reliably.

To me such an 'experience' full of intangible feelings and associations created along-with it's delivered-tangibles is the 'brand experience'. And corresponding 'expectations' created in the mind of customer that linger longer is the 'brand image'.

Conventionally, a brand is recognized by a bundle of it's tangibles and intangibles delivered consistently over a period of time. The American Marketing Association defines brand as a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers ... A brand may identify one item, a family of items, or all items of that seller.

Companies do spend a lot of money and efforts on 'building a brand' but most of it on building it 'externally'. They spend a fortune on choosing 'right' name for the brand , an 'attractive' logo, 'look and feel' of the offering itself and that of the POS (point-of-sale) outfits.

Above all, apart from 'being' on multimedia and on eye-catching hoardings, etc., 'the brand ambassador as well as CEO' spends precious time on promoting it. Companies also ensure appointment of a consultant, a dedicated team, a marketing plan and budget for it.

Coming back to my experience in the telephone case, 'brand image of the person' who delivered telephone service appeared to be good at least on that particular day. Brand image of the telephone/service/company however was in general far below-standard. May be so because a system was not in place to make such 'good' experience repeatable in their day-to-day operations. In fact, the damage is so severe that it's beyond cure although it is still above water with gas-supply from 'motherly' government.

In short, with the help of marketing-efforts a brand may get born in the mind-space of a current and/or prospective customer. But in order that it 'lives (there) happily ever after', operations discipline plays a major role in maintaining it without which 'external marketing' to augment it's 'look and feel' stays superficial. Without improved-operations-combined-with-hearty-smile at each of it's touch-points in the process of delivery internal as well as external, it is like being indifferent to deliver customer's real needs, expectations on quality and differentiated experience.

I had not tried an augmented food-dish until the counter-boy at a fast-food-joint educated me on it the other day with a genuine smile. It was 'available' on the menu-card all these days. But it was not well-communicated. So it did not result into business due to ineffective communication. The dish did not go beyond staying on the shelf just as it did not go beyond at-most staying in the peripheral vision of the customer.

Marketing may move an offer to customer's mind-shelf but operations must move it off-the-shelf. Indifference by anyone in the chain thus is a sure way to 'kill a brand' each moment a customer is in 'touch' with it's unsatisfactory experience.

If you go by a finding that "every dissatisfied customer 'bad-mouths' a brand to at least ten prospective buyers", you will know for yourself whose speed will be higher; that of  the CEO promoting/building the brand or that of the dissatisfied customer destroying it.

Satisfying customer's eye-balls may bring him to water once but not often and surely not force him to drink it. Brand is not about 'showing' to his eye senses a couple of times & 'leaving' it at that. Brand is about 'leaving a lovely and lively experience pleasing customer's senses' and 'living it each-day-each-time throughout it's lifetime' at 'each of it's touch-points' right from the moment a prospective customer conceives a need and begins researching for purchase and then finally disposing it off post-it's-use.

I still remember the first Indian 3-D movie: Chotta-Chetan, for the snake that I felt 'touching' my feet forcing me to fearfully coil in the seat. Hundreds of other people in the theater wearing an embarrassed smile with special 3-D spectacles on them 'experienced' the same. Not only production and marketing of the film was excellent, but also the operations that perhaps blew an air-draft under the seat that created a lasting 'touch' effect. Anyway, the success was evident in terms of huge box office collection of around Rs 60 crore during 1984-85 and 50 crore on it's re-release (1998). The film that won President's Gold Medal created a no-disposal 'recall'.

Brand is about a customer feeling it, smelling-eating-drinking it, talking about it, dreaming it, and in-short breathing it with a lasting 'recall' as an advocate in front of other prospective customers.

Successful brand building is perhaps more about doing creative 'internal marketing' so that 'internal customers' as suppliers 'live it': smell-eat-drink it, feel it, talk about it, dream it. In fact, they even 'breath it' in terms of putting their 'heart and soul' while 'caring to make' the corresponding offering 'lovely and lively' for the external customers to truly experience it like done by the 3-D movie.

Branding is about 'Living' it, not 'Show'ing & 'Leaving' it at that!