TQM Toyota CSM

8/4/2019 TQM Toyota CSM

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TOYOTACustomer Satisfaction Measurement

Lecturer: Dr. Seshu Babu

Group members:

1.Tolos Vazy 2. Ly Borey

3. Orn Songmich 4. Biev than

Norton UniversityTotal Quality Management


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Introductory

In 1984, TMS began putting together programsthat would ultimately result in a comprehensivecustomer satisfaction system to gather voiceof the customer information and communicate

it throughout the organization. TMS managerswere convinced that the best way to ensurecustomer satisfaction was to develop a

sophisticated information flow for accurate andtimely customer feedback. Such informationwould enable managers to quickly identify andcorrect any product deficiencies.


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Main focus on Toyotas use of customersatisfaction surveys.

1.The 800 number

The national 800 number receives an averageof 1,200 calls per day at the Toyota customer

assistance center. It yields some usefulinformation for making improvements. , it isforwarded immediately into the field dealer

concerned receives the message and isrequired to contact and respond to thecustomer within two days and to resolve the

problem in fifteen days.


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2.The Arbitration System

For those customers who find no satisfactionthrough the dealership or the 800 number, thearbitration system, administered by AAA autoclub, provides recourse. The customer may

submit a complaint AAA, which inspects thesituation and renders a decision that is bindingfor Toyota. But not for the customer. Who may

choose legal action if still unsatisfied.


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3.The customer surveys

Toyota would like to prevent the circumstancesof customer dissatisfaction which lead toarbitration. To prevent dissatisfaction andensure satisfaction. Toyota relies heavily on the

customer surveys administered by thecustomer relations department. They hope toidentify cause of problems, prevent their

recurrence, and even head off problems beforecustomers ever perceive them.


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4. Survey Participation

TMS receives over 500,000 customer surveys

a year. The rates of customer participation arerelatively high, 55 percent for NVSDS and 42percent for TSS. First, the surveys are fairly

simple. Second, the purchase of a new vehiclerepresents the second highest expenditure formost people, after a home, and leads to a highlevel of emotional involvement. Finally, the

dealers prepare customers for the survey atthe dealership and follow up by callingcustomers at home before and after they

receive the survey.


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6. Analyzing Dealer Performance

A delivery quality report on all the dealers in the

region is sent to the regional customersatisfaction committee. These reports are sent tothe regional customer satisfaction committees,

which are responsible for developing actionplans to improve regional performance. Theplans always target low-performing, high-volume

dealers for extra attention. Targeted dealers maybe called before the regional customersatisfaction committee to discuss the data,apparent problem, and action plans for

improvement.


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7. General Customer Satisfaction

The customer relation department conducts a

vast array of analyses of the survey data andprepare many detailed report for the customersatisfaction committee, subcommittees,

department, regional offices, and dealers. Thecustomer relation department serves as antennathat receives the voice of customer Therefore;

the major of objective is to effectivelycommunicate this information through thecompany. The customer satisfaction committeeis a major part of effort.


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8. Specific Customer satisfaction Reports

The customer relations department reports on

special topics. They also delve into the causes ofcustomer satisfaction, For example, the impactof salesperson turnover on customer

satisfaction. The special report not only motivatemanagers by showing them the costs ofdissatisfaction and the benefits of satisfaction,

they also produce actionable information to helpthem set priorities and develop action plans tomake Toyota number one in customersatisfaction.


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9. Database linkages

For example, respondents from the NVSDS

database were linked to the J D power andassociates early buyer database by vehicleidentification number (VIN, permitting

examination of previously unavailable data.As example of the special studies done basedon these databases is discussed below, namely,

the relationship between sales and service in theowner experience


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10. Report on the ownership experience


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11. Implications of customer satisfaction forToyota and Its Dealer.

Satisfied Toyota customers are a key marketingadvantage. Not only are they a source of repeatsales, but the positive word of mouth they

spread can be instrumental in attracting newToyota customer and boosting brand image.

a. Increased product and dealer loyalty

A commonly help belief in marketing is that is cost five time asmuch to obtain a new customer as to retain an existing one.Clearly increase loyalty not only means greater and more cost-effective sale and service business, but also higher satisfaction

ratings in the bargain.


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b. Lower advertising Expense

Positive word of mouth is more credible, more

targeted toward serious shoppers, and less expensivethan traditional advertising. Further, research hasshown that word of mouth has twice the impact as

corporate advertising on customer purchase decisions.c. Improved Image

A philosophy of customer satisfaction, carried out

through policies and procedures at all level of theToyota and its dealers stand behind their products andservices and facilitates consumer trust in the Toyotaname.


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- Sale person turnover at the bottom NVSDSdealer occurs at close to twice the rate

experienced by the top.b. Diagnostic AnalysisThe interesting aspect of the discrepancy in

their scores is to see the measures for which thedifferences in performance are the greatest. Theareas where the bottom NVSDS dealers need toplace the most emphasis are in the

thoroughness and consistency of performing thevarious delivery activities.


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Question & Answer

1. A statement of TOYOTA s long-term

strategy should be for providing customervalue.

It is comprehensive customer satisfaction system togather voice of the customer information andcommunicate it throughout the organization. TMSmanagers were convinced that the best way toensure customer satisfaction was to develop a

sophisticated information flow for accurate andtimely customer feedback. Such information wouldenable managers to quickly identify and correct anyproduct deficiencies.

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2. Summarize the evidence which indicatethat customer satisfaction should be a key

strategy objective for TOYOTA.

A. External indicators come from such

sources as J.D power and other consumergrowths

B. Internal evidence comes from survey

results relating product/dealer loyalty tosatisfaction with various aspects of thesales and after sale process

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3. How does TOYOTA currently use customersatisfaction data to achieve improvement?

Toyota uses the data to rank and rateindividuals and dealerships. Effort are the

focused on low performers. This is verydistributing some the company is notunderstanding variability .

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4. How could TOYOTA make better use of itscustomer satisfaction data?

A. There is evidence that Toyota does trackresponse overtime. More decision about

where to concentrate improvement effortsshould come from this type of data analysisand less from the ranking and rating

approach.

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B. Combining some data about processvariables with customer service feedbackcould be insightful:

Example:

Tracking service time Appointment time

Number of customers arriving without

appointments

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Thank Youfor

attention

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Documents

TQM Toyota CSM