Skip to main content

What incentives does a company have to deliver high quality services or products?

There are three primary motivations for developing a business model that includes the delivery of high quality goods and services: market reputation, customer loyalty and retention, and customer satisfaction. These three benefits can contribute to a business model that is both sustainable and profitable.

Customer Satisfaction
A customer who is satisfied is beneficial in that the satisfied customer is unlikely to seek to return the product or receive a refund for unsatisfactory services. The customer then keeps the product and does not burden the company with customer service costs and in many cases inventory loss. Customer satisfaction is the starting point before the benefits of market reputation and customer loyalty/retention occur. If a customer is unsatisfied, the following two benefits will not occur.




Customer Retention and Loyalty
Customers who receive high quality products and services from a company are more likely to stay with or revisit that company. By providing excellent products, a company can ensure that when a customer has need of their product or services again, the customer will return to them and not a competitor. Low quality products, and even mid-quality products, are unlikely to encourage customer loyalty, as these options are often widely available from a variety of competing businesses. 




Market Reputation
With a continued history of delivering an excellent product, a company develops a reputation for excellence. That reputation translates into value because that company can comfortably maintain a price point that reflects the quality of the product or service. Additional value is added with the attraction of new customers. New customers can confidently interact with the business as a result of the reputation that precedes it. With a strong reputation for quality, a new customer can expect that the products will be good. In a time when customer reviews are widely available on the internet, reputation is increasingly important, as many new customers will not approach a company if it has a reputation for poor quality.




Ultimately, the goal of a business is to generate revenue. These three benefits of a quality-centric organizational model, when wielded prudently, can lead to profit and stability within a business.

Comments

Post a Comment

Popular posts from this blog

Is there a word/phrase for "unperformant"?

As a software engineer, I need to sometimes describe a piece of code as something that lacks performance or was not written with performance in mind. Example: This kind of coding style leads to unmaintainable and unperformant code. Based on my Google searches, this isn't a real word. What is the correct way to describe this? EDIT My usage of "performance" here is in regard to speed and efficiency. For example, the better the performance of code the faster the application runs. My question and example target the negative definition, which is in reference to preventing inefficient coding practices. Answer This kind of coding style leads to unmaintainable and unperformant code. In my opinion, reads more easily as: This coding style leads to unmaintainable and poorly performing code. The key to well-written documentation and reports lies in ease of understanding. Adding poorly understood words such as performant decreases that ease. In addressing the use of such a poorly ...
Post a Comment
Read more

A man has a garden measuring 84 meters by 56 meters. He divides it into the minimum number of square plots. What is the length of the square plots?

We wish to divide this man's garden into the minimum number of square plots possible. A square has all four sides with the same length.Our garden is a rectangle, so the answer is clearly not 1 square plot. If we choose the wrong length for our squares, we may end up with missing holes or we may not be able to fit our squares inside the garden. So we have 84 meters in one direction and 56 meters in the other direction. When we start dividing the garden in square plots, we are "filling" those lengths in their respective directions. At each direction, there must be an integer number of squares (otherwise, we get holes or we leave the garden), so that all the square plots fill up the garden nicely. Thus, our job here is to find the greatest common divisor of 84 and 56. For this, we prime factor both of them: `56 = 2*2*2*7` `84 = 2*2*3*7` We can see that the prime factors and multiplicities in common are `2*2*7 = 28` . This is the desired length of the square plots. If you wi...
Post a Comment
Read more

What warning does Chuchundra issue to Rikki?

Chuchundra, the sniveling, fearful muskrat who creeps around walls because he is too terrified to go into the center of a room, meets Rikki in the middle of the night. He insults Rikki by begging him not to kill him. He then insults him by suggesting that Nag might mistake Chuchundra for Rikki. He says, "Those who kill snakes get killed by snakes."  He issues this warning to Rikki not to help keep Rikki safe but as a way of explaining why Rikki's presence gives him, Chuchundra, more reason to fear.  Chuchundra starts to tell Rikki what Chua the rat told him--but breaks it off when he realizes he might be overheard by Nag. He says, "Nag is everywhere, Rikki-Tikki." Rikki threatens to bite Chuchundra to get him to talk. Even then, Chuchundra won't overtly reveal any information. But he does say, "Can't you hear, Rikki-Tikki?" This is enough of a clue for the clever mongoose. He listens carefully and can just make out the "faintest scratch-s...
Post a Comment
Read more