Customer Fulfillment Index (CFI)The easier metric

Kiran Kumar Varri

This presentation is an effort to make learning/application of this concept easier. Any corrections that would make the presentation better, are welcome. Due credit will be given. I am just a facilitator.Hope the presentation makes learning/application easier

The ConceptWhen a finished product is sold (a Car / a biscuit packet) / a service is delivered (Car Service / Massage), the objective is : To get it Right.

Mostly(in 99% of cases), a defective product or service comes with a Cost higher than the cost of the product/service.

For example, the customer had to come back to the showroom to return the product/ complain about the product; at the least, call the company and share the detail.

The other costs include (but may not be limited to) :

● Investigation● Replacement● Brand Reputation● Customer Trust

The first two are quantifiable and have limited impact. The last 2 are not quantifiable and have far reaching impact.

The Application

The Formula

FTR count - 2*Error count / Total count >> measured as percentage

Ex : Out of 100 times a service(Ex: Car Service) was performed, 6 times there was defects noticed.

Tha CFI is 100 - (2*6)/ 100 = 88%

Customer Fulfillment Index takes into account:

1) a replacement(hence having one less to sell); resulting in loss of an opportunity to sell. (the loss to revenue is additional)

2) In case of Service, the time invested in attending to the complaint and offering another/complimentary services is more than offering same service to another customer.

FTR : First Time Right