Customer Engagement Matters: the Toyota Example

Posted by Zara Brunner
Are you surprised that Toyota owners have not budged in their loyalty to and satisfaction with the company?  According to recent survey results by Rice University's Jones Graduate School of Business, while 8 million Toyota vehicles have been recalled since October, customers rated 8 out of 10 that they would consider making a future repeat purchase from Toyota (compared to other auto companies' ratings average at 4).
These same customers agreed more strongly than other car company customers that:

• Toyota appropriately handled issues with the brake-pedal recall
• This incident is an outlier
• Toyota typically has a strong reputation for quality
• The recall shows Toyota's commitment to customer safety

This is a great example of customer engagement.  The Baldrige Criteria for Performance Excellence defines customer engagement as "your customers' investment in your brand and product offerings.  Characteristics of engagement include customer retention and loyalty, customers' willingness to make an effort to do business - and to increase business - with your organization..."
Make no mistakes it's hurt their reputation and sales--as described in the March 9 Daily Markets.  But Toyota developed the TPS with a strong focus on the customer, as these survey results indicate.  The Baldrige Criteria suggest using the information on customers' requirements, expectations, and satisfaction, along with robust performance improvement and customer complaint management processes, to improve the organization's product offerings and enhance customer engagement.  Why? Because clearly customer engagement matters and can help an organization thrive -- and rebound.