Published on February 23, 2014
Customer Fulfillment Index (CFI) The easier metric This presentation is an effort to make learning/application of this concept easier. Any corrections that would make the presentation better, are welcome. Due credit will be given. I am just a facilitator.Hope the presentation makes learning/application easier Kiran Kumar Varri
The Concept When a finished product is sold (a Car / a biscuit packet) / a service is delivered (Car Service / Massage), the objective is : To get it Right. Mostly(in 99% of cases), a defective product or service comes with a Cost higher than the cost of the product/service. For example, the customer had to come back to the showroom to return the product/ complain about the product; at the least, call the company and share the detail. The other costs include (but may not be limited to) : ● ● ● ● Investigation Replacement Brand Reputation Customer Trust The first two are quantifiable and have limited impact. The last 2 are not quantifiable and have far reaching impact.
The Application Customer Fulfillment Index takes into account: 1) a replacement(hence having one less to sell); resulting in loss of an opportunity to sell. (the loss to revenue is additional) 2) In case of Service, the time invested in attending to the complaint and offering another/complimentary services is more than offering same service to another customer. The Formula FTR count - 2*Error count / Total count >> measured as percentage Ex : Out of 100 times a service(Ex: Car Service) was performed, 6 times there was defects noticed. Tha CFI is 100 - (2*6)/ 100 = 88% FTR : First Time Right
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