Quality Control

Costco is one of the leading wholesale companies due to its quality control efforts. They use continuous improvement. They are always looking at new ways to improve their process. They don't get satisfied with their processes, and use fishbone diagrams. These are cause-and-effect diagrams which clearly show potential causes to problems.

Similar to Six Sigma, Costco also uses a Net Promoter Score (NPS) for customer management. This gives a ratio for the growth and the customers returning. Costco has the highest NPS and by far the best growth among its competitors. Customer loyalty is a major concern to all successful companies. It is much cheaper to keep existing customers than to gain new ones.
Ideas they should consider involve customer feedback. Online surveys are an easy ways to gain information and reach your customers. Having the option to e-mail Costco with comments or concerns is also a feasible idea.

"Customer satisfaction has reached its highest level since the second quarter of 1995, according to the latest American Customer Satisfaction Index.
In the specialty retail category, Costco is ahead of its competitors with a score of 80. Lowe’s and Sam’s Club are relatively strong, both scoring 77. Best Buy (72), Home Depot (73) and Circuit City (73) rounded out the category." Quality Digest