2006 Baldrige Criteria: Item 3.1 - Customer and Market Knowledge

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Item 3.1: Customer and Market Knowledge (40 pts.)
How do you use customer and market knowledge?

  Process 

Describe HOW your organization determines requirements, needs, expectations, and preferences of CUSTOMERS and markets to ensure the continuing relevance of your products and services and to develop new business OPPORTUNITIES.

Within your response, include answers to the following questions:

3.1a. Customer and Market Knowledge

(1)      HOW do you identify CUSTOMERS, CUSTOMER groups, and market SEGMENTS?

HOW do you determine which CUSTOMERS, CUSTOMER groups, and market segments to pursue for current and future products and services?

HOW do you include CUSTOMERS of competitors and other potential CUSTOMERS and markets in this determination?

(2)      HOW do you listen and LEARN to determine KEY CUSTOMER requirements, needs, and changing expectations (including product and service features) and their relative IMPORTANCE to CUSTOMERS’ purchasing or relationship decisions?

HOW do your determination methods vary for different CUSTOMERS or CUSTOMER groups?

HOW do you use relevant information and feedback from current and former CUSTOMERS, including marketing and sales information, CUSTOMER loyalty and retention data, win/loss ANALYSIS, and complaint data for PURPOSES of product and service planning, marketing, making PROCESS improvements, and developing new business opportunities?

HOW do you use this information and feedback to become more CUSTOMER focused and to better satisfy CUSTOMER needs and desires?

(3)      HOW do you keep your listening and LEARNING methods current with business needs and directions, including changes in your marketplace?

Notes:

N1. Your responses to this Item should include the CUSTOMER groups and market SEGMENTS identified in P.1b(2).

N2. If your products and services are sold or delivered to end-use CUSTOMERS via other businesses or organizations (e.g., those businesses that are part of your “VALUE chain” such as retail stores, dealers, or local distributors), CUSTOMER groups (3.1a[1]) should include both the end users and these intermediate organizations.

N3. Product and service features” (3.1a[2]) refers to all the IMPORTANT characteristics of products and services and to their PERFORMANCE throughout their full life cycle and the full “consumption chain.” This includes all CUSTOMERS’ purchase and interaction experiences with your organization that influence purchase and relationship decisions. The focus should be on features that affect CUSTOMER preference and loyalty—for example, those features that differentiate your products and services from competing offerings or other organizations' services. Those features might include price, reliability, VALUE, delivery, timeliness, ease of use, requirements for hazardous materials use and disposal, CUSTOMER or technical support, and the sales relationship. KEY product and service features and purchasing and relationship decisions (3.1a[2]) might take into account HOW transactions occur and factors such as confidentiality and security.

N4. Listening and LEARNING (3.1a[2]) might include gathering and integrating survey data, focus group findings, Web-based data, and other data and information that affect CUSTOMERS’ purchasing and relationship decisions. Keeping your listening and LEARNING methods current with business needs and directions (3.1a[3]) also might include use of newer technology, such as Web-based data gathering.

N5. For additional considerations on products, services, customers, and the business of nonprofit organizations, see Item P.1, Notes 5 and 6, and Item P.2, Note 7.

For additional description, see 3.1 Customer and Market Knowledge Description.

2006 Criteria Items: 1.1 - 1.2 - 2.1 - 2.2 - 3.1 - 3.2 - 4.1 - 4.2 - 5.1 - 5.2 - 5.3 - 6.1 - 6.2 - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - P.1 - P.2

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Baldrige Framework - Business Nonprofit Click to see what's new in the 2008 Business and Public Sector and other Nonprofit Criteria Framework and Criteria (Hint: ACTIONABLE)

Baldrige Health Care Framework Click to see what's new in the 2008 Health Care Criteria Framework and Criteria (Hint: ACTIONABLE)

Please contact me directly for more information on how I can serve your organization.

 

Paul Steel Original 1988 Baldrige Examiner, longest serving active member of NIST Board of Examiners, 2008 Baldrige Senior Examiner trained, EFQM experienced, and a management systems consultant since 1981.

President, Total Quality Inc (see sample of international organizations using TQI Baldrige services and/or software)
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