QUALITY AND EXCELLENCE FROM DAY ONE AND NOT ANYTIME LATER (2024 AND BEYOND)
If you saw the image of this blog post, you will know why I am saying that. If you haven’t noticed that is OK.
A close acquaintance of mine got me thinking and that is how this blog came into being. A friend of mine lost his job within 90 days of his joining a start-up. Reason? The founder said we cannot focus on quality parameters right now. I am focussing on getting revenues. We will fix the broken processes later, rather he (my friend) should also focus on sales and numbers. Quality adds to additional cost, and we are running on a tight budget. Long story short, guess how big is that Start-up now? Well, I did a bit of a research on the internet to find out about that company. I realized that from the past 4 years they are where they were, no significant jump in revenues and no great feedback from employees on Glassdoor either.
Should I attribute all this to lack of Quality? Well, not exactly 100% but with all the educated guess that I can make. I am attributing at-least 50% of this to Quality, Processes, Customer Experience, Employee Well-being etc.
Let’s explore why Quality is Important from day one and not anytime later.
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Why Organizations That Do Not Focus on Quality Fail
Failing to prioritize quality management can lead organizations down the road, to failure as quality serves as more than a way to stand out from competitors. It forms the bedrock of businesses.The repercussions of overlooking quality, in products and services can bring short term benefits. Have long term implications by affecting customer satisfaction and operational efficiency which ultimately impacts the company’s financial performance.
- Decline in Customer Trust and Loyalty- When companies neglect to focus on quality as a priority point of concern their customers may end up feeling dissatisfied, with the products or services offered to them in return for their earned money in the competitive market landscape where consumers are better informed and have higher standards, than ever before…. https://thefinancestory.com/what-are-the-designations-in-hdfc-bank
- Increased Operational Costs – Low quality products also have an impact, on expenses since when mistakes or faults happen; businesses need to allocate extra resources to fix them – be it through product exchanges or refunds or efforts to recover services affected by the mishaps. This method of responding to quality concerns is more expensive compared to an approach that prioritizes ensuring quality right, from the beginning. Furthermore substandard products could result in numbers of warranty claims reimbursements or even legal disputes causing a financial strain.
- Lost Revenue Opportunities – Ignoring quality has an impact, on a company’s earnings potential as dissatisfied customers not seek alternatives but also discourage new customers through negative feedback or reviews online. Moreover repeat customers play a role in any businesses success. When they are dissatisfied with the quality of service or product they not cease purchasing. Also refrain from endorsing the brand. This results in lost chances, for revenue generation including the possibility of upselling and cross selling to a customer base.
Why Quality Is Important from Day One and Not Later – Organizations often believe they can implement quality processes later in their growth stage. However, quality should be embedded in every aspect of a business from day one, not as an afterthought. This early integration of quality management practices can be a decisive factor in a company’s long-term sustainability.
- Customer Expectations Start Immediately – Once a customer starts interacting with your company or brand for the time they begin to develop expectations regarding the quality of the product or service being offered.. If these expectations are not met from the beginning it could negatively impact your reputation. Make it difficult to earn back customer trust.. For startups and established businesses there is margin, for mistakes as initial interactions play a crucial role, in shaping future customer relationships..
- Quality Affects the Product Life Cycle – Ensuring that quality is integrated from the stages of development helps in creating products or services that cater to the needs of customers effectively. Releasing a product hastily without testing or refining its quality may result in issues such, as defects recalls. Failures that can be more costly to rectify down the line. Additionally addressing flaws in a product after it has been launched can disrupt its life cycle leading to resources being allocated more, towards problem solving of fostering innovation.
- Cost of Rectifying Quality Issues Later – A lot of companies don’t realize how expensive it can be to deal with quality problems down the line according to studies show that the price of fixing issues goes up significantly the longer they are ignored For example its way cheaper to fix a mistake during the design stage compared to, after production or when the product is already, in the hands of customers.
Facets of Quality: Customer Experience, Revenue, and the Cost of Unhappy Customers
- Customer Experience: The Core of Quality – Customer experience (CX) is directly linked to quality. When customers have a seamless, high-quality experience, they are more likely to remain loyal and advocate for your brand. This means that investing in quality is not just about the product or service itself but also about the overall customer journey. From the first point of contact to after-sales service, every touchpoint with the customer needs to reflect your commitment to quality.
High-quality customer experiences lead to higher satisfaction, positive reviews, and repeat business. In contrast, poor customer experience due to a lack of quality control can result in frustrated customers who may abandon your brand altogether.
- Linkage Between Quality and Revenue – Quality is intrinsically linked to revenue generation. A well-built product or service leads to customer satisfaction, which in turn fosters customer loyalty. According to research, increasing customer retention by 5% can increase profits by 25% to 95% https://thefinancestory.com/what-are-the-designations-in-hdfc-bank Loyal customers not only contribute to a steady revenue stream but also serve as brand ambassadors, helping to attract new business through recommendations.
On the flip side, organizations that produce subpar products or services experience revenue loss from reduced sales, increased returns, and lower customer lifetime value. Customers are less likely to pay a premium price for a product they perceive as low quality, which forces companies to compete on price rather than value.
- Cost of Unhappy Customers – Unhappy customers can have an impact, on a company’s line without us even realizing it at first glance. That’s what some experts say! Research suggests that it costs more to bring in customers than to keep the ones we already have happy and satisfied with our services or products. Makes sense when you think about it! When customers aren’t happy with what they get from us and start spreading vibes, around town or online via media and reviews sites. Yikes!. It could scare off customers who might otherwise give us a try because they don’t want to deal with any drama.
Unsatisfied clients also lead to increased expenses as they tend to reach out to customer support often for assistance and lodge complaints seeking refunds and exchanges – all of which add to the company’s expenditure without contributing any value in return. Moreover，businesses might find themselves having to allocate resources, towards marketing and sales initiatives in order to acquire customers to make up for the ones lost due, to discontentment.
Conclusion- Having a commitment, to quality is vital for the success of any business or organization.This is because companies that overlook quality in the stages may jeopardize customer confidence resulting in operational expenses and missed revenue streams.Conversely firms that place a value on quality right from the start position themselves for lasting achievements by cultivating customer followings enforcing operational effectiveness and developing products and services with enduring appeal.The crucial connection, between quality and customer satisfaction,revenue generation and operational expenditures should not be underestimated. Companies that prioritize providing experiences not keep customers satisfied but also drive expansion and financial success.
Syed Saif has over two decades of experience in Quality, Excellence, Innovation, Six Sigma, Lean, and Customer Services. He is a Certified Master Black Belt, ISO Lead Auditor, High Impact Trainer, Certified Business Excellence Assessor, Certified on Innovation Business Model Canvas, and holds a PG diploma in Customer Relationship Management. Syed Saif has trained thousands of people, from students to CEOs on various improvement methodologies and self help techniques, and has worked in various industries including BPO, Telecom, IT, Insurance, Manufacturing, and Healthcare. Prior to his full-time consulting role, he served as Vice President for a Leading Insurance Company and as National Head of Quality, Innovation, and Service for Corporate and Sales Functions. See our services page for more details on what we do and how can we help you / your organization.