widely used mechanism in this area is the customer com- plaint process. Feedback-based processes, although neces sary and useful, have three glaring weaknesses. First, they are activated by problems customers have already experienced. Even if these problems are solved quickly, the customer who complains has already had a negative experience with the organization. Such experiences are typically remembered- even if only subconsciously-no matter how well the organi- zation responds. Second, feedback-oriented processes are based on the often invalid assumption that dissatisfied customers will take the time to lodge a complaint. Some will, but many won't. Some people are just too busy to take the time to complain. Others provide their feedback by simply going elsewhere. In a survey of retail customers conducted by the Institute for Continual Improvement (ICI), 72% of respon- dents said they would simply go elsewhere if dissatisfied rather than taking the time to complain." Retail customers don't necessarily have the same characteristics as custom- ers of service or production organizations. However, the ICI survey still points to a fundamental weakness with cus- tomer complaint processes, which rely on information col- lected ex post facto. Third, the information that the customer complaint processes provide is often too sketchy to yield an accurate picture of the problem. This situation can result in an or- ganization wasting valuable resources chasing after symp- toms rather than solving root causes. The weaknesses as- sociated with after-the-fact processes do not mean that organizations should stop collecting customer feedback. On the contrary, customer feedback can be important when used to supplement the data collected using input- based processes Customer input is customer information provided before a problem occurs. An effective vehicle for collect- ing customer input is the focus group. Focus groups consist of customers who agree to meet periodically with repre- sentatives of the organization for the purpose of pointing out issues before they become problems. Focus groups can provide a mechanism for overcoming all three of the weaknesses associated with feedback systems. Participants point out weaknesses or potential issues to the organiza- tions representatives so that they can be dealt with pre- emptively. Focus group input does not depend on the willingness of customers to lodge complaints; participants agree to provide input at periodic meetings before becom- ing members of the group. The focus group approach can also solve the problem of sketchy information. In a focus group, there is discussion, debate, and give and take. This type of interaction provides the organization's representatives with opportunities to dig deeper and deeper until they get beyond symptoms to root causes. Input provided by one participant will often trigger input from another. To be effective, the focus group must consist of partici- pants who understand what they are being asked to do. The organization is well served by neither sycophants nor witch hunters. What is needed is information that is thoroughly thought out and objective, given in the form of open, honest, constructive criticism. Members of the focus group should change periodically to bring in new ideas and a broader cross-section of input. A variation on the focus group concept is the input group. The purpose of both types of groups is to provide input the organization can use to improve its processes and its products and services. The difference between the two is that focus group participants meet together for group dis- cussion. Input group participants provide their data individ- ually, usually by mail, telephone, or facsimile machine. They do not meet together for group interaction. Other methods for collecting customer input include hiring test customers and conducting periodic surveys of a representative sample of the customer base. Test customers are individuals who do business with the organization and report their perceptions to designated representatives of the organization. This method can backfire unless employees are fully informed that it is a method the organization em- ploys. This does not mean that employees should know who the test customers are; they shouldn't, or this method will lose its value. However, they should know that any customer they interact with might be a test customer. Customer surveys conducted periodically can help iden- tify issues that may become problems. If this method is used. the survey instrument should be brief and to the point. One of the surest ways to "turn off" customers is to ask them to complete a lengthy survey instrument. Some type of reward should be associated with completing the survey that says, "Thank you for your valuable time and assistance" Each time a survey is conducted, care should be taken to select a different group of customers. Asking the same people to complete surveys over and over is sure to alienate even the most loyal customers. If properly trained concerning what to look for, what to ask, and how to respond, sales personnel can bring back invalu- able information from every sales call. In addition to pro- viding sales personnel with the necessary training, organi- zations should provide them with appropriate incentives for collecting customer input. Otherwise, they may fall into the trap of simply agreeing with the customer about complaints received, thereby undermining the customer relationship even further. CUSTOMER RETENTION QUALITY CASE Customer satisfaction is a fundamental cornerstone of total Delivering Quality and Value at Cargill Corn Milling quality. An organization develops a customer focus to be better able to satisfy its customers, Consequently, forward- looking organizations use custonmer satisfaction data to measure success. But measuring customer satisfaction alone is not enough. Another important measure of success is customer retention. It is a fact that even satisfied customers will some- times migrate to a competitor. The customer whose feed- back in a customer satisfaction survey is very positive might, in reality, have migrated in spite of being satisfied. Consequently, it makes more sense to measure customer the other principles of total quality. CCM has been able to become retention than just customer satisfaction. Customer reten- tion is a more accurate indicator of customer loyalty than gobal stage. Exampies of how CCM apples the principles of total is customer satisfaction. It is important to understand this point. No one is saying that customer satisfaction is not important. Customer satisfac- tion is critical, but it is a means to an end, not an end in itself. The desired end is customer retention. Organizations should measure success based on customer retention data rather than on customer satisfaction data. The isue is not whether custom- Cargil Corn Miling (CCM) of North America began operations in 1967 as part of its parent fiem Cargil Inc. er of food, agriculture, and risk-management products. CCM manufactures com and sugar-based foods, including whole- a global provid- s an com meal, corn ol, animal feed, ethanol, detrose, and acidulants. CCM employs more than 2,300 personnel in nine manutacturing plants and eleven distribution centers through out the Unted States. These personnel and taciibes process more than 10,000 bushels of com every day. CCM is one of three Cargl business units to receive the Baldrige National Quality Award. By puting customers at the heart of all decisions and applying a world-class organization able to compete successfully on the quality include the following . Establishing and maintaining a team-based corporate cul ture that emphasizes effective communication, skil sharing and leveraging of diverse ideas. This culture led to more han $15 milion in cost savings from ideas generated by employees Consistently maintaining an eror-tree delivery record of 99% or better. ers are satisfied with the organization's products or services; it is whether they are satisfied enough to be retained. Satisfied customers will sometimes defect in spite of their satisfaction, if for no other reason than curiosity about a competitor or the everpresent lure of variety. How, then, can an organization go Committing to achieving the world-class benchmark of a ge% operational reliablity effectiveness rate as established by the Society of Maintenance and Reliabilty Professionals (CCM has achieved a 95% record to date). Committing to maintaining steady "per bushel" costs even as such tactors as enerty and chemical costs have in creased. CCM has achieved this goal by stricty applying such tactics as neal-time and predictive monitoring of equip- ment health, careful energy use, and continual process im provement By applying the principles of total qualty. CCM has become he partner of choice for its cuntomers worldwide while main tainine s conmmitment to such corporate values as integrity satety, customer focus, innovation, talent development, collabo- ration, and community involvement. Source: www.nist gov Collect Both Registered and Unregistered Complaints Many organizations make the mistake of acting solely on what customers say in complaints instead of going beyond what is said to include what is unspoken. Often, what is not said is more important than what is said. For this reason it s important for organizations to collect both registered and unregistered complaints. Focus groups-already discussed-are an excellent way to solicit unregistered complaints. Customer surveys and test customers can also serve this purpose. Another way to get at that part of the iceberg that floats beneath the surface is the follow-up interview. With this method, cus- tomers who have registered complaints are contacted el- ther in person or by telephone to discuss their complaints in greater depth. This approach gives representatives of the organization the opportunity to ask clarifying ques- tions and to request suggestions. Another way to get at unregistered complaints is to use the organization's sales representatives as collectors of cus- tomer input. Sales representatives are the employees who have the most frequent face-to-face contact with customers. beyond just satisfying its customers to retaining them? The short answer to this question is as follows: i To retain customers over the long term, organizations must turn them into partners and proactively seek their input rather than wuiting for and reacting to feedback provided after a problem has occurred. The following strategies can help organizations go be- yond just satisfying customers to retaining them over the long term. These strategies will help organizations opera- tionalize the philosophy of turning customers into partners. Be Proactive-Get Out in Front of Customer Complaints Many organizations make the mistake of relying solely on feedback from customers to identify problems; the most