Achieving Customer Experience Excellence through a Quality Management System

By Alka Jarvis, Luis Morales and Ulka Ranadive

For the past decade, process validation issues ranked within the top six of Food and Drug Administration (FDA) form 483 observation findings issued each year. This poses a substantial problem for the medical device industry and is the reason why the authors wanted to write this book. The authors will share their collective knowledge: to help organizations improve patient safety and increase profitability while maintaining a state of compliance with regulations and standards.
This book was written to assist quality technicians, engineers, managers, and others that need to plan, conduct, and monitor validation activities. To that end, the intent of this book is to provide the quality professional working in virtually any industry a quick, convenient, and comprehensive guide to properly conducting process validations that meet regulatory and certification requirements. It provides an introduction and background to the requirements necessary to perform process validations that will comply with regulatory and certification body requirements.

• Language: English
• Publisher: ASQ Quality Press
• Release date: Jul 4, 2016
• ISBN: 9781953079688

Alka Jarvis

Alka Jarvis has 30 years of experience in software engineering, including 19 years spent in implementing quality management principles. Her background encompasses telemetry, cloud, IoT, customer experience, product and process quality, industry standards, corporate knowledge management, and training. Cisco’s first and only Distinguished Quality Engineer and a Fellow of American Society for Quality (ASQ), Alka has worked in a variety of capacities for Fortune 500 companies such as Apple, Bank of America, and AT&T, and she is a 22-year veteran of Cisco. A frequently invited speaker on quality assurance topics at international as well as domestic events, she has been an adjunct lecturer at Santa Clara University in computer engineering for the past 23 years. Her subject matter expertise is reflected in the eight books she has authored on the topics of customer experience and expectations, software engineering, quality management standards, and telemetry. Alka is also an instructor for the software engineering courses at the University of California Santa Cruz and Berkeley extensions and won Silicon Valley’s “Corporate Woman Advocate of the Year” award for her accomplishments in the software quality field. ASQ recognized Alka by publishing her achievements in their “Who Is Who in Quality” article. In her role as the chair for nine years, representing the United States to the Technical Committee 176 for the International Organization for Standardization(ISO), she has been instrumental in the development of the 2000, 2004, 2008 versions of ISO 9001 and 9004 quality management standards. Alka was a member of the drafting committee and contributed in the writing of the latest ISO 9001:2015 version and is an ISO lead auditor, certified by Exemplar Global of United States for the past 23 years. Named as an expert on Industry 4.0/Smart Manufacturing, she represented the American National Standards Institute (ANSI) and the United States in the strategic advisory group to the ISO’s Technical Management Board at an international level. Alka serves as the chair for the U.S. Standards Group Council; was a member of ASQ’s Learning Institute Advisory Board; served as president ofthe Bay Area Quality Assurance Association (BAQAA); has been an Applied Total Quality Advisory Board member for University of California Berkeley Extension; an advisory board member to the Certificate Program in Continuous Improvement & Quality Management at the University of California Santa Cruz Extension; board member of the Quality Assurance Institute; an advisory member for ASQ’s 2015 and 2016 International Conference on Quality Standards; and Vice President of Indian Business and Professional Women. In her spare time, Alka enjoys mentoring and coaching students and young professionals to achieve their full potential in their aspirations. Having passion for food and fine wine, she spends endless hours on weekends discovering elegant restaurants in San Francisco and nearby Napa Valley with friends.

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Introduction

HISTORY OF QUALITY MANAGEMENT

It is hard to put a precise date to when humans started to focus on quality management. We would argue the development of tools by early humans is a watershed moment as efficiency of those tools depended on the ability of humans to learn and continuously improve their design. As humans started to trade, the need for quality management fundamentals expanded. Traders recognized that understanding and delivering to what other potential trading partners expected was key to a successful transaction. Individuals that perfected valuable skills (masters) developed knowledge transfer approaches (i.e. apprenticeships) and methodologies that ensured, among other things, development of quality standards.

Quality management, as it is known today, emerged during the second decade of the 20th century. This is when statistical methods began to be used to assess end-product quality. Quality control involved measuring, examining, and testing end-products against specific requirements to ensure that each element adhered to a predefined set of standards and guidelines.

During World War II, the theory and practice of quality management evolved significantly behind leaders and experts like Deming, Dodge, Juran, and Romig. This era saw the emergence of Total Quality Management. This approach evolved the focus of quality management from end-product inspections to prevention of end product problems through early detection.

Japan’s post-war reconstruction efforts provided the perfect environment for quality management theory and practices to further evolve. Experts like Ishikawa led the way in redefining the scope of quality management to apply to all company employees, from individual contributors to managers. Governments across the world started to get involved in ensuring quality in products and processes, which led to development of quality standards and guidelines. For example, the United States government created the Malcolm Baldrige award and associated criteria. This recognition was bestowed to businesses that demonstrated the highest levels of quality management excellence. Similarly, other countries also created their own national quality awards.

Nowadays, hundreds of excellence awards exist and companies compete for them as a way to differentiate and demonstrate their commitment to quality. In the final analysis, the focus throughout history has remained the same: to ensure that customers receive a quality end product that meets their expectations.

FROM PRODUCT QUALITY TO SERVICE ASSURANCE

Services industry is the portion of the economy that creates services for customers instead of products. As a proportion of the world economy, services industry has been steadily growing for the last 100 years representing now more than 3/5 of the global GDP (source: Encyclopedia Britannica). The need for ensuring quality outcomes (i.e. good customer service) for consumers is the focus of service assurance.

Companies large and small have realized that their most vital asset is the customer and without them there is no future. Understanding what would satisfy their customers and what it takes to keep them coming back is the focus of considerable study and research. Ultimately, customer service is seen as a key differentiator and success factor for companies.

Like traditional quality management, service assurance aims to deliver quality outcomes that meet customer expectations. However, given the prevalence of human-to-human interactions in delivering services, there is a significant emphasis placed on emotional elements associated with customer interactions, i.e. how do we make customers feel. Susan A. Friedmann, (Certified Speaking Professional), who has an international reputation of helping companies to build enhanced relationships with customers, summarizes what it takes to deliver an outstanding customer service with her "Ten Commandment of Great Customer Service:

Know who is boss.

Be a good listener.

Identify and anticipate needs.

Make customers feel important and appreciated.

Help customers understand your systems.

Appreciate the power of Yes.

Know how to apologize.

Give more than expected.

Get regular feedback.

Treat employees well.

Regardless of how you want to characterize the success factors for outstanding customer service, the need to consider emotional elements of customer interactions cannot be overstated.

CUSTOMER EXPERIENCE MANAGEMENT

Today more and more companies are changing their product delivery mechanisms to conform to a service model. Some of the impetus for change is internally driven as it allows simplification of processes, and enables improved accountability and clarity to core versus context-investment decisions. However, it is fair to say that the bulk of the change is being driven by how customers are looking to consume products. The Internet has made information readily accessible to consumers and influenced their purchase decisions at home. While a different context, personal consumption experiences are starting to shape the business-to-business world as well.

In the current customer consumption reality, a new discipline has emerged for helping companies understand, improve, and optimize their customer interactions. This discipline, known as Customer Experience (CX in short), is seen as integrating most of the quality management and service assurance principles that precede it. Many companies who already have an existing quality management system, in the form of implementing requirements of ISO 9001 standard, have jumped on the band-wagon of CX, thereby hiring additional people and defining new way of doing business while addressing the same old challenges.

In writing this book, there was exhaustive research conducted to incorporate various components that affect customer experience. Based on our research results, we make a case for seeing CX and associated transformations as the next natural evolution of the quality management systems already in place in most companies. We confirm that using existing quality management systems as the foundation for CX not only create a more sustainable platform, but it allows for a faster and cost effective way to enable an organization to attain world-class CX.

From company to company, the word CX differs. There are many misconceptions on the word experience. Chapter 1 gives in-depth details of CX by explaining what it actually is and elaborates on the need to emphasize it to increase customer experience, satisfaction, and retention.

In the industry you often hear about product lifecycle, which describes various activities needed to develop products or services, but rarely one hears about CX Lifecycle! There is a need to stress various elements that make up the CX Lifecycle and these are explained in detail in both Chapter 1 and 2.

ISO 9001:2015 is the most popular standard being used in the world, with over 1.4 million certifications. The new revision of this standard was released in September 2015. In Chapter 3, we are acclimating you with the importance of this standard and providing highlights that will help you understand the basic requirements. If you are already familiar with ISO 9001, the contents of this chapter will provide you additional information, such as the new 7 quality management principles, ISO 9000, and ISO 9004.

Chapter 4 is where we show how the requirements of your existing QMS, i.e. ISO 9001, can address the components of CX. We have gone into detail to show the interlock between these two (ISO 9001 & CX). The contents make a compelling case as to why there is no need for two separate groups, one for CX and another for QMS.

You may wonder how to optimize CX. Well, in Chapter 5, we take you through an extensive list of elements that need to be implemented to enhance CX, and Chapter 6 provides guidance on transforming your existing QMS into a CX-centric model.

This book is intended for a wide range of readers, those who are in charge of the QMS as well as those who are trying to implement processes and programs to address CX. We have successfully tied both these together and shown you the method to improve and enhance the CX through one QMS.

1

Customer Experience

We are in what many ¹, ² call The Age of the Customer. Customers are empowered more than ever before and demand a high level of customer attention and service. Their increasing expectations and demands, amid the global competition and slow growth economies, have forced organizations to transform themselves and prepare for what some call the Customer Experience (CX) battlefield.

In the past few years, we have seen an increase in awareness and prioritization of CX efforts in organizations across the globe. Many have created roles including Chief Customer Experience Officer or Chief Customer Officer, whose sole responsibility is to design, orchestrate, and improve CX. By 2017, 50 percent of consumer product investments will be redirected to customer experience innovations³. And by 2020, CX is predicted to overtake price and product as the key brand differentiator⁴. While some organizations have managed to unlock the CX code and drive profitable growth, the startling reality is that many continue to struggle⁵. Some are stuck in the execution chasm, finding it hard to justify CX Return on Investment (ROI), while others are finding it difficult to grapple with the gravity of changes required in their organization. The fact of the matter is—CX looks easy to understand, but is hard to start and even harder to sustain.

What does Customer Experience (CX) really mean? Why does it matter? Does it have any substantial business impact? What can my organization do to deliver and sustain our CX efforts? And, how did we even get here? These are some of the fundamental questions that many continue to struggle with. We hope to address these questions and bring new ideas to you throughout this book.

In this chapter, we will address common misconceptions and explain the true meaning of CX. We will discuss various business impacts that can help CX decision makers to better understand the potential ROI. Finally, we will review what it takes to drive long-term success and gain competitive advantage in today’s marketplace. So, let us begin by going back in time to see how we got here.

1.1 BACKGROUND

The Industrial Revolution from the 18th to 19th century marked a major turning point in the history of humankind. It was a phase of innovations that transformed almost every aspect of our lives. It allowed economic growth to expand at a much faster rate than had ever been seen. People living in rural communities, whose daily existence revolved around farming, producing, and consuming their own local products, were able to leverage transportation. They were able to extend their presence outside their communities. At the same time, innovations in industrial technologies and special-purpose machineries improved agricultural productivity, freeing up workers to work in other sectors of the economy. It also brought increases in production outputs and the variety of goods manufactured by factories.

In many ways, the Industrial Revolution transformed the way customers’ needs were met and how commodities were delivered. Customers, however, were merely a part of the equation of wealth-accumulation and profit-maximizing strategies driven by industrial financiers and manufacturers. Except during the economic crisis of overproduction, it is fair to say that the Industrial Revolution was mainly a sellers’ market. Organizations controlled their products, information, and pricing.

It was the onset of the Digital Revolution in late 1950s that laid the foundation to eventually shift the power toward a buyer/customer. It radically changed the way customers and organizations interacted. Humankind began to adapt digital computers and digital records, as well as experience extensive changes in computing and communications. It also marked the beginning of the Information Age, a time when humans began to create a high-tech, knowledge-based society that equipped customers with the means to gain the knowledge of organizations: their products, services, and prices. Customers were able to easily look for alternatives and competitors, something that they never imagined before.

The mass adoption of digital technologies such as smartphones, tablets and productivity tools has continued to grow substantially in the past few years. In fact, we are starting to reach an inflection point in the digital environment. Today, in every corner of customers’ lives and organizations, operations are being touched some way or another by the digital revolution. The interconnectedness of digital devices is on the rise and social media popularity is growing in leaps and bounds. The United States alone saw 65 percent of the country’s adults using some kind of social network in 2015, nearly a ten-fold jump from 2005⁶.

In this Age of the Customer, customers are in control. They are empowered with information, connectivity, and transparency. They demand that things be faster, better, cheaper, and sometimes even free. To add to the increasing power of customers, competitors are able to connect with them through digital media and influence their buying and loyalty decisions.

Thus, in spite of reaping digitalization benefits, organizations face the monumental challenge of retaining their customers and sustaining competitive advantage. In order to survive and thrive in this digital era, organizations must fundamentally rethink how they view their customers. They must also reinvent business models to deliver value that goes beyond selling products and services. They must focus on building an ongoing customer relationship and deliver a differentiating customer experience.

1.2 WHAT IS CUSTOMER EXPERIENCE (CX)?

Customer experience is not an easy concept to define. It is both a science and an art. It involves facts and reasons, and is highly subjective as well, involving emotions and the interplay of customer, organization, competition, and industry.

In spite of its growing importance, there is no commonly-held definition. In fact, the word customer experience has been used for years in various contexts in the industry. As a result, CX is often misinterpreted. Before getting to our definition of CX, let us briefly look at some of the misinterpretations that often surface during CX discussions.

Throughout this book we will use the word solution to refer to a combination of products and/or services that may include services or components provided by third-party vendors.

1.2.1 Common CX Misinterpretations

Isn’t this what we do in Customer Service? CX is most commonly confused with customer service. Customer service typically involves person-to-person interaction for either sales or support-related instances. In Chapter 2, we will discuss how these customer experiences play an important role in driving customer loyalty. However, they are only a part of total experiences encountered by the customer across the CX lifecycle. CX is much broader than customer service.

"We have been looking at CX for years; it’s nothing but User Experience (UX)!" Many UX members perceive CX to be the same as UX. After all, for years, UX designers have created and leveraged methodologies for designing and delivering experiences associated with using a solution. UX involves aspects such as designing the interface of a website or a smartphone, or ergonomics for a tangible solution. It’s goal, at the end, is to make solutions useful, easy to use and delightful. CX, however has a much larger goal, where it aims to deliver consistent and positive experiences that goes beyond solution’s use experience. In other words, CX involves experiences prior to and after the use of the solutions, such as the solution’s evaluation and purchasing experience.

Well, CX is just another term for Brand Experience (BX). The confusion between CX and Brand Experience (BX) is understandable. Both BX and CX strive to achieve the same goal. They both aim to improve customers’ perception of a brand and in doing so, they both hope to increase customer loyalty and advocacy. However, they differ in the nature in which the experience is perceived by the customer, the organization’s strategy, and the method used to achieve their goals.

– Nature of the experience. A BX tends to be associated with sensations, feelings, and behavioral responses evoked in a customer by the brand-related stimuli. These brand-related stimuli include things such as colors⁷, shapes⁸, background design elements⁸, slogans, and brand that appears as a part of packaging or marketing communications or even the environment the brand is sold in. At times, BX also involves value proposition with functional, emotional, or self-expressive benefits that you may choose to create or maintain the brand through a portfolio of solutions. On the other hand, CX is associated with the actual experiences a customer encounters before, during, and after the purchase of an individual solution.

As seen from Figure 1.1, CXs encountered across the portfolio of solutions sold by the same brand help create or strengthen the perception of the BX. Thus, CX and BX are not the same, but dependent on one another. Experiences of BX drive CX and customers’ expectations, while CX helps build or create BX perceptions.

Figure 1.1 Customer experience (CX) and brand experience (BX) inter-dependency.

For example, let’s look at an EcoWibe brand that includes several products including laundry detergent, washing soap, and cleaners. The BX delivered through marketing helps position the detergent as being as eco-friendly and gentle on clothes. Thus, to begin with, marketing BX helps sell the detergent. It helps stimulate customers’ emotional value and social responsibility factor. The customer is able to feel and see the value in helping reduce water contamination to human and aquatic life by using an eco-friendly detergent. The CX, however, is the set of experiences encountered by the customer during the evaluation, purchasing, use (easy to open detergent bottle, gentleness on hands, effectiveness of detergent, and so on), and maintenance (such as storing in a cool place) of the detergent. As the customer continues to experience the EcoWibe’ s detergent, as well as its other products, such as washing soap and cleaners, the customer starts to build his or her own perceptions about the brand and in turn the perceived BX. With time, these personal experiences (CX) start to become increasingly more influential than the BX delivered through advertising, thus affecting customer’s BX perception.

– Organizational strategy and focus. While the goal for both BX and CX is the same, which is to improve customers’ perception of a brand, their strategy differs. BX tends to focus more towards enabling an organization to deliver on it’s brand promise and building strong brand-equity to attract new customers. A brand promise is the commitment made by you to your customers. For example, BMW promises The Ultimate Driving Machine. The strategy is to deliver the most efficient and elegant vehicles to their customers, while the brand equity is a differential value that customers are willing to pay for a branded solution as opposed to the one that is not. By delivering on the brand promise and building brand equity, marketers hope to attract more customers, sell more solutions, and lower costs to convince a customer to purchase a solution.

Whereas, a CX strategy focuses more on retaining existing customers by creating and delivering outstanding experiences that eventually help attract new customers. The primary goal in CX is to reduce and prevent customer pain-points, and build trust, loyalty, and advocacy. As we will see in Chapter 2, this requires more coordination among various functions than it does for BX.

– Approaches and tools. Lastly, with respect to tools, BX tends to leverage marketing, advertising, and promotional tools, while CX uses tools such as customer journey mapping and ecosystem mapping.

As we see, BX and CX are tightly intertwined, so much so that it is debatable as to who leads whom. Depending on the maturity of your organization and brand, you may choose to design CXs that create the brand and build its equity. Alternatively, you may choose to communicate the brand and its attributes through CXs delivered to the customer. Either way, in order to drive and sustain customer loyalty in today’s hyper-competitive marketplace, you must align both CX and BX activities.

Overall, there is a lot more to CX than what meets the eye. CX is much broader than customer service and user experience, and more complex than brand experience.

In the next section, we will review the definition of CX. Not only are there multiple CX definitions in the industry, but the words used have different connotations as well. This has led to some confusion within the industry as well as within organizations where employees find it hard to coordinate their CX efforts. Thus, we will not only review our CX definition but also go through the meaning of certain words. We hope this will help you clarify any confusion and set the context of CX for the rest of the chapters.

1.2.2 Definition of CX

We define Customer Experience (CX) as: The perception of the customer’s interaction(s) with an organization and its solution.

Perception. CX is widely believed to be the experience delivered by the organization to the customer. However, the truth is that CX is not the experience delivered by the organization but the interpretation of the experience encountered by the customer. It is how a customer selects, organizes, and interprets reality through his or her senses to create a mental impression.

It is important to realize that perception is highly subjective.

– It involves complex functions of the nervous system. It involves processing of sensory input such as vision, hearing, touch, taste, smell, and movement or balance. It also involves a person’s own concept, expectations, and attention. Two people watching a movie will comprehend the movie very differently.

– It is affected by a person’s working memory. A working memory refers to a human’s ability to temporarily store and manage information required to carry out cognitive tasks such as learning, reasoning, and comprehension. Recent research⁹ indicates that the contents of the working-memory could contaminate one’s perception process. For example, if a person is shown two graphical screens in sequence, the mental image of the first screen tends to affect the perception of the second screen.

–