According to Pierre-Paul Levesque of Vision Client, it is difficult to quantify the costs stemming from non quality because they are intangible. However, it is clear that the Return On Investment (ROI) for training and following a quality service program are real.

It is difficult to establish the exact rate of ROI, but an increase in the number of transactions and / or the amount of these transactions enables us to measure the results in a very quantitative manner. They show the degree of customer satisfaction which is confirmed by mystery shoppers’ visits and customer focus groups. But there is no doubt that increased market share remains the most conclusive result. Fierce market competition, growth stagnation and the constant arrival of new competitors require businesses to really stand out of the crowd. A new store concept is one way a business can position and discern itself, but may prove useless without continued investment in a quality service program. In fact, costs for capital assets which are not combined with investment in a quality service program must be added to the hidden costs of non quality. One business that invested in a quality service program doubled its sales in five years despite t wo major competitors arriving on the market. Another saw its clientele increase by 150 in two years. According to Pierre-Paul Levesque, these examples not only show tangible results, but they also demonstrate why these efforts cannot be a one-time affair, but must become part of a business’ culture.

We can therefore conclude that the cost of non quality is the difference between a business’ performance with a quality service program and a business’ performance without a one. A customer was telling Pierre-Paul not too long ago that without the introduction of a quality service program five years ago, his company would certainly have folded. In this case, the cost of non quality would have been incredibly high.

As for the question: “In view of the high personnel turnover in my industry, is training really worthwhile?” Pierre-Paul Levesque answers: “just imagine not training them and they decide to stay with the company…”

When quality management evaluates the costs related to problems (complaints, sales closing rates, merchandise defects, etc.), whether they be in manufacturing, service or retail sectors, and taking into account all the underlying aspects and the many different interventions required to correct a problem, continuous improvement experts say we should multiply the estimated cost of non quality times 5 to give us an idea of the real magnitude of the situation. For example, opportunities lost to unclosed sales because we might not really pay attention to those customers visiting our store when business is slow … We may say “Well, we’re only talking about a few missed sales” but multiplied by 5, it becomes troublesome.

In conclusion, a retail store that implements a clear plan, which is measured through job performance, where serious and constant effort is placed in developing the business’ human resources, cannot but be successful. There is certainly less guessing and more action.