“Quality is no longer just about meeting (or even exceeding) product standards set by customers to ensure its acceptance, purchase, and payment,” says Rene T. Domingo, a leading quality expert and adjunct professor at the Asian Institute of Management. “Quality is about customer retention, customer loyalty, and building strong client relationships by being proactive and flexible.”
In a business landscape marked by rising costs, cutthroat competition, and rapid market shifts, quality management is no longer confined to checking boxes or reducing defects. For Rene T. Domingo, the traditional notion of product excellence has evolved. In an exclusive interview with Financial Adviser PH, he challenges the conventional view: being defect-free isn’t enough anymore.
When Quality Becomes a “Moving Target”
“Excellence in conformity quality and product quality may no longer be enough to ensure growth and maintain industry leadership,” Domingo warns. Today’s customers are more informed and more demanding than ever. Their expectations constantly shift with market trends, new technologies, and changing economic realities. As Domingo puts it, “quality has become a moving target.”
That means what was once considered excellent yesterday could be irrelevant tomorrow. Companies that rest on their laurels—even those with highly standardized, ISO-certified processes—risk falling behind. “Fragmented and functional approaches to quality and quality improvement will provide little strategic advantage,” he explains.
Beyond Compliance: A New Quality Paradigm
Domingo urges businesses to expand their understanding of quality. “Customers’ touchpoints and technical specifications have become equally important. Excellence must be achieved in both conformity quality and competitive quality.” In other words, it’s not just about delivering what was promised—it’s about delivering an experience, a value proposition, and a price point that all align.
He draws a compelling comparison: “Motorola tried to reduce the defect rates of its products such as cellphones, while Nokia kept coming out with better and better cellphones. Both eventually lost market leadership to the more customer-centric Apple and Samsung.” The lesson? Even perfection in manufacturing doesn’t guarantee customer relevance or loyalty.
Retention Over Reaction
Companies that focus solely on being compliant or error-free may miss the bigger picture. Domingo emphasizes: “Quality is about customer retention, customer loyalty… not by just being responsive, compliant, and defect-free.” This calls for a shift from reactive problem-solving to proactive customer engagement.
In practical terms, that means delivering not only on specifications but also on experience and affordability. Today’s buyers make decisions based not just on technical specs but also on “Value for Money (VfM), Compelling Customer Value Proposition (CVP), Total Cost of Ownership (TCO), and Memorable Customer Experience (Cx).”
The Competitive Edge: Experience and Value
In today’s environment, companies must deliver quality that is holistic and competitive. “Most industries… operate in a buyers’ market, where prices are determined by buyers and competitors rather than by the producers or service providers,” Domingo observes. This puts pressure on firms to deliver not just high-quality products, but products that are worth the price—and more.
Domingo’s message is clear: in the age of customer empowerment, quality must evolve. Defect-free operations are the bare minimum. True excellence now means aligning quality with value, experience, and long-term relationships.
For Domingo, this is the future of sustainable competitiveness: “The days of ‘build it (well) and they will come (and pay any price)’ are over. Instead, buyers will say, ‘build it well and this is my price (or your competitor’s price to match and beat).’”
