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Customer feedback processes

In this issue, INform reveals another of the Auditing Practices Group's guidance documents, which aim to help auditors get a better understanding of ISO 9001:2000. This issue's paper focuses on auditing customer feedback processes

The customer feedback process is a critical part of the QMS, and should therefore receive adequate attention during a third party audit. Feedback from the customer is one of the primary performance indicators that can be used to judge the overall effectiveness of the QMS. It is important, therefore, for the auditor to verify that:

the organization's customer communication channels promote an adequate awareness of the process by which customers can provide feedback
inputs to the customer feedback process include relevant, representative and reliable data
this data is analyzed effectively
the output from this process provides useful information to the management review and other QMS processes, to enhance customer satisfaction and drive continual improvement

What are the requirements?

1) The overall objective of ISO 9001, as stated in clause 1.1, is to specify requirements for a QMS, where an organization:

needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements

aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements

2) Clause 7.2.3 requires the organization to 'determine and implement effective arrangements for communicating with customers in relation to. customer feedback, including customer complaints.'

3) Clause 8.2.1 states: 'As one of the measurements of the performance of the QMS, the organization shall monitor information relating to customer perception as to whether the organization has met customer requirements. The methods for obtaining and using this information shall be determined.'

The ISO/TC176 guidance document on terminology (ISO/TC176/SC2/N526R) emphasizes that monitor means 'to observe, supervise, keep under review; measure or test at intervals'. It is important for auditors to recognize that there is no specific requirement in ISO 9001 clause 8.2.1 for the organization to perform formal customer satisfaction surveys, or other measurements of customer satisfaction, though this could of course be a useful tool in monitoring customer perceptions. It is therefore important that the organization tries to see things from the customer's perspective, and monitors the customer's perceptions. Measurement of customer satisfaction may be appropriate in some situations, but it is not a direct requirement of the standard.

What should be addressed when auditing customer feedback processes?

Customer feedback is a process. It needs to be audited as a process, not as a 'clause of the standard'. An evaluation also needs to be performed on the way in which the process is managed (see clause 4.1.c), and its ability to provide meaningful information with which to judge the overall effectiveness of the QMS. The way in which the organization obtains this feedback ('the method') is up to the organization to define.

The auditor should therefore be aware of the many factors that can affect the organization's approach, and should recognize that there is no fixed 'recipe'. Due consideration should be given to factors such as:

organization size and complexity
degree of sophistication of products and customers
risks associated with the product diversity of customer base

Preparing for the audit of the customer feedback process

The auditor needs to be aware of the specific characteristics of the organization's products that are likely to impact customer satisfaction. Throughout the audit the auditor should be alert to indications that may suggest customer satisfaction or dissatisfaction, which could be included in the audit of the customer feedback process. Good sources of such information may include:

goods returned by the customer
warranty claims
revised invoices
credit notes
articles in the media
consumer websites
direct observation of, or communication with, the customer

During the process assessment

These are some of the issues an auditor should address during an audit of the customer feedback process:

1) What is the desired output of this process? What information is actually available on customer perceptions? How is this information used by management to drive improvements to the product, processes and the QMS? Are all customer categories covered by this information? It is important to remember that the organization may have more than one category of customer (see the definition of 'customer' in ISO 9001: clause 3.3.5).

2) How is the data collected to feed the process? There are many ways for an organization to monitor its customers' perceptions, and the auditor should avoid preconceived ideas about how this should be done. Some examples of techniques the organization can use include:

face-to-face evaluations, which may be appropriate in many service organizations such as hotels
telephone calls or visits made periodically or after delivery of products and services
surveys carried out by the organization itself or independent market researchers
other contacts with customers, eg by service or installation personnel
internal enquiries among the organization's personnel who are in contact with customers
evaluation of repeat business
monitoring accounts receivable, warranty claims etc
customer complaints analysis

Often complaints are the only spontaneous feedback received from customers, and these should be analyzed for any trends, key concerns, impacts etc. Customer complaints cannot be the only input for monitoring customer perceptions. Also, the auditor should avoid reaching conclusions only by looking at specific individual complaints - these should always be put in the context of their overall impact on the QMS.

3) How reliable is the information?

Ideally, the organization would monitor the perceptions of all customers, but the costs of doing so might be prohibitive. Therefore, it is necessary to verify the criteria the organization has used for any sampling of its customers, to ensure that this is representative, and reflects the risks both to the organization and its customers.

The auditor should seek to verify the information provided by comparing with other evidence obtained during the course of the audit (see clause 3.1). In some cases it may be appropriate for the auditor to verify information directly with the organization's customers, though a certain diplomacy will be required when doing this.

4) How is the data analyzed?

Simply collecting data on customer perceptions is not sufficient - the auditor must follow the process through, to check how the data is analyzed (see clause 8.4), and what conclusions are made with respect to the effectiveness of the QMS.

Are there any trends? Is the situation stable, improving, or deteriorating? Are customer needs and expectations changing? Although it is not a requirement of ISO 9001, it may be appropriate to ask the organization about industry comparisons, or benchmarking activities, in order to put customer feedback into perspective.

5) How does the information generated by this process feedback into the QMS as a whole?

organizations should be using the results of the customer feedback process to trigger corrective and/or preventive actions and as one of the overall measures of the QMS performance. The way in which these processes interact should also be subject to audit
the auditor should be able to recognize that the output from the customer feedback process forms an important input into other QMS process, such as data analysis, management review and continual improvement processes
a 'value-added auditor' will try to ensure that the organization recognizes the benefits a sound customer feedback process can bring, and will encourage (but cannot require) the organization to think beyond simply 'meeting the requirements of the standard'

6) What are the links to other QMS processes?

The auditor should recognize that the customer feedback process has important links and interfaces with several other QMS process that include, but are not limited to, the following clauses of the standard: 5.6 management review, 7.5.2 process validation, 7.2.3 customer communication, 7.3.6 design and development validation, 7.3.7 design and development changes.

This article is an edited version of 'Auditing customer feedback processes' from the website of the ISO 9001 Auditing and Practices Group, and is reproduced courtesy of ISO and the IAF. These papers were developed on current best practice and therefore have not been formally endorsed as IAF guidance or ISO TC176 interpretations. For further information about the Auditing Practices Group visit http://isotc176sc2.elysium-ltd.net/APG_index.html