Cost of Quality and customer trust

What’s the real cost of a broken client experience system? For one elderly care business, the answer was $75,000 in lost revenue. Here’s how it happened: A family lost confidence when updates about their loved one were inconsistent. Staff gave different answers, leadership didn’t spot the signals early, and within months, the family moved their loved one to another provider. The owner didn’t just lose one client Word spread in the community, and referrals dried up. This is the hidden cost of not having a clear client experience system. When I came in, we mapped every step of the family journey and identified the friction points. The biggest issues were: ↳ No structured update system ↳ No escalation plan when families raised concerns ↳ No feedback loop to catch problems early We built a 3-part Customer Experience Framework: → Weekly proactive family updates → Standardized escalation protocol → Monthly feedback pulse-checks ✅ Within 90 days, the business stopped losing families ✅ Trust scores improved by 27% ✅ Referrals restarted; two new families signed on within the next quarter The system worked because it created consistency. Families no longer felt “in the dark.” They felt supported, informed, and confident. Curious - what’s been your biggest challenge in keeping families consistently informed and confident? Drop it in the comments, I’d love to hear your perspective. I help small business owners and busy leaders design systems that build trust, grow referrals, and free them from putting out daily fires. If you want long-term growth, it starts with your systems. #systems #leadership #business #strategy #ProcessImprovement

Quality problems don't get cheaper to fix. They get exponentially more expensive. Here's the brutal math most managers ignore: Design Phase - $1 to fix Catch it here: Change a drawing, update a specification. Production Phase - $10 to fix   Now you're stopping lines, retraining operators, scrapping materials. Quality Phase - $100 to fix Add inspection steps, rework stations, quality holds. System-wide changes. Customer Phase - $1,000+ to fix Recalls, reverse logistics, lost trust, brand damage, litigation. The multiplier effect is real: - 10x more expensive at each stage - Exponential cost curve that never flattens - Hidden costs that compound over time But here's what the chart doesn't show: Brand Value Impact One quality failure can destroy decades of reputation building. Customer trust, once lost, costs millions to rebuild. The companies that understand this: → Invest heavily in design reviews → Build quality into the process, not inspect it afterward   → Treat prevention as profit, not cost → Measure quality costs as percentage of revenue The companies that don't: → Live in constant firefighting mode → Wonder why their margins keep shrinking → Blame "bad luck" for quality escapes Prevention isn't expensive. Reaction is. Where are you catching your quality problems?

🎯 Understanding the Cost of Quality with Taguchi’s Loss Function 🎯- Quality at What cost. Is 95% - Good Quality. Is that statement true In the world of quality management, Dr. Genichi Taguchi revolutionized how we think about deviations from perfection. His Loss Function teaches us that even small variations in quality come at a cost—both to manufacturers and customers. Take a look at this chart on the "Rule of Ten" 📊: It highlights how the cost of poor quality escalates as defects move further down the production and usage cycle: Design Stage: ₹1/unit (Prevention costs) Process Stage: ₹10/unit (Appraisal costs) Manufacturing Defects: ₹100/unit (Internal failure costs) Customer Defects: ₹10,000/unit (External failure costs) - Significant is this as we loose the Customer for ever. ( New customers are a good addition to your portfolio but a existing satisfied / delighted customer is lot more valuable) This exponential rise with Taguchi’s principle: "Quality loss increases quadratically as deviations grow from the target value." In simple terms, the farther we stray from perfection, the more it costs—not just in money but also in customer trust and satisfaction. 💡 Why does this matter? Taguchi’s Loss Function emphasizes proactive prevention over reactive correction. By investing early in robust designs and processes (like FMEA or SPC), we save exponentially on failure costs later. 🔑 Key Takeaway: Every deviation from the target is a loss—not just when it crosses tolerance limits. Let’s strive for continuous improvement to minimize variation and deliver excellence! What are your thoughts on balancing prevention costs with quality outcomes? Let’s discuss! 👇 #QualityManagement #TaguchiLossFunction #ContinuousImprovement #CostOfQuality #Leadership

Everyone talks about “boosting revenue,” but almost no one connects it with QA’s potential to protect and grow that REVENUE. QA isn’t just a cost center; it’s a driver for customer retention and revenue GROWTH. I recently spoke with a former engineering lead from a well-known music streaming service. The engineering team understood how critical QA was to revenue, but the exec team didn’t see it. So, they strategically injected a few defects, causing some customer churn, and found that after four app crashes, users started dropping off. They had to sacrifice a few customers to drive the point home, get data, and increase customer acquisition and retention in the long term. But HOW do you prove QA’s impact on revenue? 1- Position QA for Customer Retention – A high-quality, defect-free product enhances customer experience and minimizes customer churn. Think of QA as a revenue-preserving function: every defect caught early is a customer retained. 2 - Healthy Demos and POCs—A product with no/low defects means smoother demos and proofs of concept. The first experience with the product matters, and reducing bugs in the demo stages boosts conversion rates by building customer trust and excitement. 3 - Define the Financial Impact of Defects – Calculate a “cost-per-defect” metric to tie bugs to revenue. Here’s a simplified example: if each crash costs a customer, and each customer has a lifetime value (LTV) of $200, then reducing five churned customers a month through better QA practices translates to $1,000 in preserved revenue. This isn’t just theory. When quality IMPROVES, revenue follows.

**𝗧𝗵𝗲 𝗛𝗶𝗱𝗱𝗲𝗻 𝗖𝗼𝘀𝘁𝘀 𝗕𝗲𝗵𝗶𝗻𝗱 𝗖𝘂𝘁𝘁𝗶𝗻𝗴 𝗖𝗼𝗿𝗻𝗲𝗿𝘀 𝗼𝗻 𝗠𝗲𝗱𝗶𝗰𝗮𝗹 𝗗𝗲𝘃𝗶𝗰𝗲 𝗤𝘂𝗮𝗹𝗶𝘁𝘆** Ever wondered why some medical devices fail prematurely, putting patients at risk and tarnishing the reputation of brands? It's often because the initial cost-saving measures in design and manufacturing have come back to haunt manufacturers. Quality cannot be an afterthought in medical device manufacturing. The intricate balance between adhering to regulatory standards and managing production costs is a tightrope that industry professionals walk every day. However, this balance should not tip towards compromising quality for cost-effectiveness. Through detailed analysis of recent medical device recalls, it's clear that the short-term savings are dwarfed by the long-term costs associated with regulatory sanctions, product recalls, legal fees and loss of consumer trust. The lesson here is straightforward: Investing in quality is non-negotiable. By prioritising rigorous testing, comprehensive quality management systems, and continuous improvement practices, companies can mitigate risks while fostering innovation and safeguarding their reputation. Let's champion a culture where quality precedes cost-cutting measures – because ultimately, patient safety and brand integrity are priceless.

𝗧𝗵𝗲 𝗖𝗼𝘀𝘁 𝗼𝗳 𝗣𝗼𝗼𝗿 𝗤𝘂𝗮𝗹𝗶𝘁𝘆: 𝗔 𝗪𝗮𝗸𝗲-𝗨𝗽 𝗖𝗮𝗹𝗹 𝗳𝗼𝗿 𝗟𝗲𝗮𝗱𝗲𝗿𝘀 Poor quality doesn’t just hurt—it costs. From rework to lost customers, poor quality can cripple operations. Leaders must act to improve systems before it’s too late. Here’s why poor quality is costly and how to address it using the COST Framework: Compliance, Operations, Savings, Trust. 𝟭. 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲: 𝗔𝘃𝗼𝗶𝗱 𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 Poor quality leads to compliance issues. Fines: Non-compliance results in penalties. Safety Risks: Defects harm customers and employees. Delays: Failing inspections slows production. Compliance protects operations and reputation. 𝟮. 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀: 𝗘𝗹𝗶𝗺𝗶𝗻𝗮𝘁𝗲 𝗜𝗻𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝗶𝗲𝘀 Poor quality disrupts workflows. Rework: Fixing defects wastes resources. Downtime: Quality issues halt production. Scrap: Defective materials increase waste. Efficient operations rely on consistent quality. 𝟯. 𝗦𝗮𝘃𝗶𝗻𝗴𝘀: 𝗦𝘁𝗼𝗽 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗟𝗼𝘀𝘀𝗲𝘀 Poor quality damages profits. Lost Customers: Bad products push buyers away. Warranty Claims: Defects increase after-sales costs. Reputation Damage: Poor reviews hurt market position. Investing in quality saves more than it costs. 𝟰. 𝗧𝗿𝘂𝘀𝘁: 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻 𝗖𝗼𝗻𝗳𝗶𝗱𝗲𝗻𝗰𝗲 Poor quality erodes trust. Customer Loyalty: Inconsistent quality drives buyers to competitors. Team Morale: Employees lose pride in subpar work. Brand Reputation: Bad reviews weaken your standing. Trust is critical to long-term success. 𝗧𝗵𝗲 𝗖𝗢𝗦𝗧 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲 The COST Framework shows the impact of poor quality: Compliance avoids risks and penalties. Operations run smoothly with fewer disruptions. Savings are protected by reducing waste. Trust keeps customers and employees loyal. Prioritizing quality prevents losses and drives growth. Are you ready to lead with quality? - Insightful ? ♻️ Repost and inspire your network!