The September issue of Harvard Business Review  includes an article related to The Elements of Value. In the article, a study highlights what customers value in products varies by industry.

An included table summarizes the top 10 elements of value that various industries find influence loyalty. (Left)

The 10 types of businesses evaluated include:

Apparel/Retail
TV Service Providers
Discount Retail
Consumer Banking
Grocery
Brokerage
Food and Beverages
Auto Insurance
Smartphones
Credit Cards

See anything in common? For all industries noted, “Quality” is referenced at the top of the list.

“Some elements do matter more than others. Across all industries studied, perceived quality affects customer advocacy more than any other element. Products and services must attain a certain minimum level, and no other elements can make up for a significant shortfall on this one.”

“A rigorous model of consumer value allows a company to come up with new combinations of value that its products and services could deliver. The right combinations, pays off in stronger customer loyalty, greater customer willingness to try a particular brand, and sustained revenue growth.”

Over the years, we’ve had our share of inquiries related to organizations seeking to resolve a recall situation.  While many of these calls are reactive, a proactive approach is recommended to avoid the cost and overall impact to stakeholders.

How can you avoid product recalls? 

Know Product Safety Requirements –  Avoiding recalls generally starts with product design and specification development. Due diligence is required to determine if any applicable testing is required depending on the market in which it will be sold. Contacting a testing lab for a general inquiry is worth the time and effort. Researching ANSI and ASTM standards is also advised.  A third party’s expertise can also be leveraged here and specifications development/testing can be outsourced.

Know Your Suppliers – Supplier selection is a critical component in the quality process. Verifying suppliers and performing an on-site evaluation adds an additional level of assurance. Considerations include:

Are you a Quality Aficionado?

Use the Likert-type scale below to answer the 20 questions, and then total up your score. Download a copy here for a template to write directly on and/or share with your colleagues and friends!

Strongly Disagree>  1 – 2 – 3 – 4 – 5  <Strongly Agree

1. You notice non-conformances in products when you go shopping. You may or may not speculate what the root cause could be.
2. You notice inefficiencies in the processes of various organizations you interact with outside of work. You often identify how you would do it better.
3. Customer ratings have a significant weight on your personal purchase decision-making process.
4. You notice the word “quality” whenever it’s referenced in a company name or other commercial message.
5. You love data (metrics).
6. You’ve had more than one conversation with family and friends about the importance of quality.

Don’t miss our latest video discussing the ISO 9001:2015 transition process and questions we’re frequently asked:

Also, be sure to download our free gap analysis! Or, check our previous post discussing our Top 5 Tips.

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