In addition to these
savings in warranty costs, there are other
convincing benefits that accompany production testing
and increased product quality. Take
brand image, for example.
Most corporations spend millions of dollars each
year on advertising campaigns that will increase product
awareness and brand image. Strong branding is key
to developing buyer preference in a competitive market
and to driving sales. But there is more to your brand
image than a slick looking magazine ad.
Nothing diminishes brand image more than insufficient
production testing and slack quality control. Every
time a defect leaves your plant and reaches the consumer,
it erodes your most valuable asset–your reputation.
We’re all familiar with the damaging influence
of negative word-of-mouth “advertising”
when a customer has a bad experience with a product.
According to a recent study conducted by Huba and
McConnell, published in the book “Creating Customer
Evangelists: How Loyal Customers Become a Volunteer
Sales Force”, a disgruntled customer is likely
to tell 10-16 other potential buyers about the headaches
associated with owning your brand, steering friends
and acquaintances straight to your competition.
FACT: Defects in the field negatively
affect your ability to generate repeat sales as disgruntled
consumers are more likely to switch brands. Thorough
production testing catches defects in the plant, before
they ever reach the consumer.
FACT: It is always more cost effective
to sell to existing customers than to reach new ones.
FACT: Poor quality adversely affects
new sales as well as repeat sales, due to the impact
of negative word-of-mouth advertising.
FACT: ECI’s production testing
customers routinely report dramatic reductions of
DOA’s (Dead On Arrivals), field failures and
warranty claims. Our automated testing systems will
catch literally thousands of unit defects this year
in plants around the world.
FACT: ECI has noted a strong relationship
between levels of investment in production testing
/ quality and market performance.
“We’ve picked up millions of dollars
of new business, mostly due to our consistently high
level of quality.”
Senior Manufacturing Engineer, Nordyne