Understanding Customer Needs

Situation

A leading brand paint manufacturer was losing market share to its competitors. Perversely, the competitive products were priced higher and of inferior quality. An in-depth customer survey revealed that reliable on time deliveries were more important than cost of the product. This company was not perceived to be a reliable supplier of the product - a classic case of not understanding the customer's needs.

Complications

To further complicate matters, their leading indicator of customer satisfaction (In Full on Time) revealed that they were performing at 97%, way above industry standard. Not surprisingly IFOT was not a major focus for the executive team. Extensive customer interviews revealed a disconnect between the agreed delivery date and the desired delivery date. By looking at the data from the customer's perspective, i.e. their desired delivery date, IFOT was only 35%. This came as a major wake up call to the organization.

Results

With Stroud's help this company was able to increase real IFOT from 35% to over 70% in the first 100 days. 18 months later both sales and inventory turns had increased 25%.

"You have to know, this is 1000% better. There are no more [complaints] from the network."
VP Supply Chain of the Americas