Our own model · Model
Total quality.
Total quality is perceived quality divided by expected quality, and it's the ratio between the two that decides what the customer actually thinks. The numerator is raised through better delivery, which costs money, of course. The denominator is set long before delivery has even begun, by everything you've said and hinted at along the way, and it's almost always left untouched. The same piece of work can therefore end up with two completely different verdicts depending on what the customer had expected when it started.
The denominator is set before you’ve begun
Expectations are built by marketing, by the sales conversation, by reputation and what others say about you, by the price you set, by the picture the customer already holds of the company, and finally by the customer’s own needs and values, which you can’t control at all.
When the delivery is judged afterwards it’s judged against the sum of all of that, and so a really good job can turn into a disappointment before it’s even finished.
The numerator is made of what and how
Perceived quality has two parts. What the customer got, meaning the result, and how it went, meaning what it felt like to work with you along the way.
Companies that take pride in their craft happily put nearly all their effort into the what, while in practice it’s often the how that decides whether the customer comes back and whether they recommend you onwards. Both are also coloured by the picture the customer already carries, which is why the same delivery can be judged differently by two customers.
The most common objection
Working on the denominator sounds like you should promise less in order to look better, and that’s probably the most common objection that comes up when the model gets drawn on a whiteboard.
But a vague promise is at least as dangerous as one that’s too big, because the customer happily fills the gap with expectations of their own, and those are always higher than yours. It’s about being precise rather than cautious, meaning saying what’s included and what isn’t, and that usually makes the deal easier to close as well, because a buyer who knows what they’re getting doesn’t have to price in their own uncertainty.
When the ratio is owned by nobody
Sales owns the denominator without really knowing it, and delivery owns the numerator and takes the blame when the ratio comes out low. As long as those two aren’t sitting at the same table the ratio is nobody’s responsibility, and then it becomes whatever it becomes.
This rarely shows up as complaints. It shows up as price pressure. A customer who got something less than they expected may well not get in touch, but negotiates harder next time, and then delivery pays for a promise made in the sales meeting.
Something to try
Take the most recent deal you lost on price, and look for the promise that set the expectation. Look in the proposal, on the website, on the price tag, and in what was said in passing at a meeting.
Then write down every place where you set an expectation with a customer, and who owns each one. If the same name doesn’t come up on several rows, you’ve probably found it.
In practice
In Genomlysningen we go through what you actually promise and where, and we like to look at both the what and the how in the delivery, because it’s usually the how that chafes without anyone saying so out loud.