How can service firms use customer feedback and complaints as opportunities for TQM improvement?

Total quality management (TQM) is a philosophy and practice of continuous improvement that aims to satisfy customer needs and expectations. While TQM originated in the manufacturing sector, it can also be applied to service firms, especially in today's competitive and dynamic market. In this article, we will explore how service firms can use customer feedback and complaints as opportunities for TQM improvement.

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1 Benefits of TQM for service firms

Service firms face some unique challenges and opportunities in delivering quality to their customers. Unlike tangible products, services are intangible, heterogeneous, inseparable, and perishable. This means that service quality depends on the interaction between the service provider and the customer, and it can vary depending on the situation, the expectations, and the perceptions of both parties. Therefore, service firms need to adopt a customer-oriented approach and focus on the quality of the service process and the service outcome. TQM can help service firms achieve this by providing a framework and a culture of continuous improvement, customer satisfaction, employee empowerment, and teamwork.

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Matthew Phillips
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TQM in practice MUST be led from the top of an organization else be ineffective. i.e. Employees and customers can see through veiled attempts to give the appearance of these practices. When leadership understands and embraces the value resulting from the tenets of TQM, these best practices are the default for employees. The value of the customer relationships and loyalty built by such practices is on the level of Apple or Trader Joes

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2 Sources of customer feedback and complaints

Customer feedback and complaints are valuable sources of information for service firms to identify and eliminate the gaps between customer expectations and perceptions of service quality. Service firms can collect customer feedback and complaints from various sources, such as surveys, comment cards, online reviews, social media, focus groups, and direct communication. However, collecting feedback and complaints is not enough; service firms also need to analyze, respond, and act on them in a timely and effective manner.

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3 How to use feedback and complaints for TQM improvement

Customer feedback and complaints can be used for TQM improvement in several ways. First, service firms can use them to measure and monitor their service quality performance and identify the areas of strength and weakness. Second, service firms can use them to identify the root causes of customer dissatisfaction and implement corrective and preventive actions to prevent recurrence. Third, service firms can use them to generate ideas and suggestions for service innovation and enhancement. Fourth, service firms can use them to communicate and engage with their customers and show that they care about their opinions and needs.

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4 Challenges and best practices of using feedback and complaints for TQM improvement

Using customer feedback and complaints for TQM improvement is not without challenges. Some of the common challenges are: dealing with negative and emotional feedback, managing customer expectations, ensuring data validity and reliability, integrating feedback and complaints across different channels and departments, and allocating resources and time for improvement actions. To overcome these challenges, service firms need to adopt some best practices, such as: setting clear and realistic goals and standards for service quality, training and empowering employees to handle feedback and complaints, using feedback and complaints as learning and motivational tools, rewarding and recognizing improvement efforts, and sharing feedback and complaints with all stakeholders.

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5 Examples of service firms using feedback and complaints for TQM improvement

To illustrate how service firms can use customer feedback and complaints for TQM improvement, here are some examples from different industries. In the hospitality industry, Marriott International uses a system called GuestVoice to collect and analyze feedback and complaints from various sources and to respond and resolve them within 24 hours. In the health care industry, Mayo Clinic uses a system called Voice of the Patient to collect and analyze feedback and complaints from patients and their families and to implement improvement actions based on their needs and preferences. In the education industry, Harvard Business School uses a system called Course Analytics to collect and analyze feedback and complaints from students and faculty and to improve the quality and relevance of its courses and programs.

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UmaMaheshwar Nandyala

Senior Quality Engineer | Post Market Surveillance | CQA | CLSSGB
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Also, all FDA regulated manufacturing companies need to have a complaints process that is well integrated within the other segments of the company like manufacturing, design, development, quality, etc.. Complaints are then used as a quality signal and input for improving the overall quality of the products. It is a mandatory process anyone can report a complaint about their product and service. For example, you buy an over-the-counter medicine and you find something wrong with it, you can go onto the manufacturers website or call them and register a complaint and let them know that you want to know about the outcome. They will register a complaint, follow up with you and provide their findings along with what actions they are taking.

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How can service firms use customer feedback and complaints as opportunities for TQM improvement?

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1 Benefits of TQM for service firms

2 Sources of customer feedback and complaints

3 How to use feedback and complaints for TQM improvement

4 Challenges and best practices of using feedback and complaints for TQM improvement

5 Examples of service firms using feedback and complaints for TQM improvement

Manufacturing

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How can service firms use customer feedback and complaints as opportunities for TQM improvement?

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5

1 Benefits of TQM for service firms

2 Sources of customer feedback and complaints

3 How to use feedback and complaints for TQM improvement

4 Challenges and best practices of using feedback and complaints for TQM improvement

5 Examples of service firms using feedback and complaints for TQM improvement

Manufacturing

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