Successful organisations are customer focused!

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CUSTOMER FOCUS
Successful organisations are customer
focused! They plan to meet customer needs, wants
and expectations.
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THE CUSTOMER DRIVEN ORGANISATION

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PITFALLS
COMPLACENCY KILLS BUSINESS!
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CUSTOMERS
Customers are people, work-teams, businesses or
other organisations which utilise goods and
services from another. This may be in exchange
for money (payment) but does not necessarily
involve the exchange of money. We must know
who our customers are, where they come from,
their needs and their buying intentions.
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CHANGING ATTITUDES
The customer, not the organisation, should
determine product style, product quality and the
service offered.
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MARKET IDENTIFICATION
Market research and analysis vital activities
identify your customers, their needs and their
prospective purchasing intentions
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ASK THE CUSTOMER
Never assume that you know what the customer
wants or will buy.
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THE SUPPLIER/CUSTOMER CHAIN

INTERFACES
INTERFACES
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EMPLOYEES AND SHAREHOLDERS
Organisations have customers, stakeholders and
shareholders. They all have an interest in your
organisation and its performance. Employees are
internal customers. They are also
stakeholders. Shareholders (owners) have a
direct financial interest in the organisations
profits.
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CUSTOMER TYPES
Customers are either external or internal to your
organisation. External customers buy or use the
goods and services of your organisation and are
not employed by or directly associated with the
selling organisation. Internal customers are the
people, groups or teams in an organisation to
whom completed work, resources or information is
passed by fellow employees.
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GIVING LESS THAN 100

• The repercussions of giving less than 100
• If 99.9 is good enough, then, in America
• 12 newborns will be given to the wrong parents
  daily.
• 114,500 mismatched pairs of shoes will be
  shipped/year.
• 18,322 pieces of mail will be mishandled/hour.
• 2,000,000 documents will be lost by the IRS this
  year.
• 2.5 million books will be shipped with the wrong
  covers.
• Two planes landing at Chicagos OHare airport
  will be unsafe every day.
• 315 entries in Websters dictionary will be
  misspelled.
• 20,000 incorrect drug prescriptions will be
  written this year.
• 880,000 credit cards in circulation will have
  incorrect cardholder information on their
  magnetic strips.
• 103,260 income tax returns will be processed
  incorrectly during the year.
• 5.5 million cases of soft drinks produced will be
  flat.
• 291 pacemaker operations will be performed
  incorrectly.
• 3,056 copies of tomorrows Wall Street Journal
  will be missing one of the three sections.

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How can an organisation encourage customer
awareness in employees like cleaners, maintenance
staff, storekeepers and pay administrators, whose
work never brings them into contact with external
customers? What benefits should flow on from
making backroom staff more aware of external
customers? Is it possible for an organisation
to provide excellent customer service without
every employee having a job they feel makes a
real contribution?
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WORK-PLACE CULTURE
Effective and efficient information sharing at
all levels within the organisation is essential
to fostering a customer focused work-place
culture. A customer focused culture is one in
which excellent customer service is accepted as
the norm.
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WHO PAYS YOUR WAGES?
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Who pays for your equipment, machinery,computers
, stationery? Who pays the maintenance
divisions wages? Who pays the wages of the
person who cleans the toilets?
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TEAMS

• Teams
• Have a shared purpose and goals
• Are able to take advantage of collective and
  shared skills of members
• Effective teams have
• Strong leadership
• Support for each other and the organisation
• The ability to work together to achieve greater
  results than individuals working toward the same
  objectives

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CUSTOMER NEEDS, WANTS AND EXPECTATIONS
Need food what we must have
Want caviar and truffles what we would like to have
Expectation chicken and vegetables what we can have
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PRODUCT SALE PLUS SERVICE
In most instances, when customers make a
purchase they have an expectation that the
purchase will be accompanied by an associated
service of acceptable quality and standard.
This is called bundling.
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THE SERVICE FACTOR
Customer service can be defined as The range of
help and support offered to customers before,
during and after a sale has been made. It begins
with the first contact and only ends when the
customer ceases interaction with you.
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SERVICE COMPONENTS

• First impressions
• Moments of truth
• Response skills
• Communication / interpersonal skills
• Active listening and questioning
• Product knowledge
• Conflict management
• Problem solving
• Negotiation
• Last impressions
• Professionalism.
• Customer service ends only when the customer is
  satisfied

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PERCEPTIONS OF VALUE

• You get what you pay for.
• Customers purchase
• Features
• Benefits
• They want
• Value for money
• The product/service bundle must meet the
  customers value proposition

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BENEFITS

• Products and product descriptions have
• attached features and benefits.
• Customers do not purchase product features, they
  purchase benefits.
• They ask
• Whats in it for me?
• How will I benefit?

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CUSTOMER RELATIONSHIPS
Relationships imply trust and dependability.
Effective internal and external customer
relationships are the key to business success.
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What level of customer service do you think you
should receive from your internal suppliers?
What level do you consistently give your
internal and external customers? How do you know
that they are happy with the service you provide?
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RETURN BUSINESS
Value adding comprises the actions an
organisation or supplier takes to ensure that
customers perceive their products/services as
value for money -because they provide something
extra. Value added products and services
contribute to relationship building
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How can a business exploit, for example,
old-fashioned snobbery? How can an intangible
such as after-sales service be made into a value
added sales component?
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INNOVATION
Utilise the innovative and creative talents of
your employees to design and develop methods by
which your organisation can improve/increase
sales and profits.
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RELATIONSHIPS AND LOYALTY
Client/customer loyalty means that a
client/customer retains some sense of commitment
to the seller some notion of satisfaction that
will cause them to return on the next occasion
when they want similar goods or services.
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ATTITUDE
Your attitude and that of every person in the
organisation determines the extent of customer
loyalty. Treat every customer as an
appreciating asset Provide top quality as
perceived by the customer Build
relationships Create uniqueness Under promise -
over deliver
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Long term profit EQUALS revenue from
continuing satisfied customer relationships
MINUS costs. (Tom Peters) Monitoring,
measurement and evaluation of processes and
outputs are part of the continuous improvement
cycle. If you do not monitor, measure and
evaluate you will never know how well, or how
poorly the organisation is meeting its goals.
CUSTOMER INFORMATION
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CURRENT INFORMATION

• Measurements
• The results of customer feedback - should be
  widely shared so that everyone in the
  organisation is aware of customer satisfaction
  levels.
• Post key customer satisfaction measures and the
  results of current surveys (internal and
  external) everywhere in the organisation.
• Encourage self-monitoring by employees.

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SURVEYS AND RESULTS
Take care when designing and administering
surveys Target your respondents correctly Ask
the hard questions and act on the answers
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QUALITY PERCEPTIONS
You are not the customer! What the customer
perceives as quality is not necessarily what the
supplier considers a quality product or service.

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ENCOURAGE EXCELLENT CUSTOMER SERVICE
Every job description should include a
qualitative description of the person-connection
to the customer. Link role and task KPIs to
customer service practice. Use performance
evaluations and appraisals to assess and improve
customer orientation. Recognise and reward high
levels of internal and external customer service.

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DISSATISFACTION
ENCOURAGE YOUR CUSTOMERS TO COMPLAIN WHEN
CUSTOMERS COMPLAIN THANK THEM FOR DOING SO
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COMPLAINTS YOUR LIFELINE
Never assume that because no-one is complaining
everything is going well. "Think of customer
complaints as the voice of God and accept them."
Konosuke Matsushita Matsushita Electric
Industries (National Panasonic) Japan.
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USING DATA
Plan to act on the data you collect. Collecting
data that is not used wastes time and resources.
Follow through on your plan
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IMPORTANCE
ARE ALL YOUR CUSTOMERS AS VALUABLE AS EACH
OTHER? A POINT WORTH CONSIDERING IS WHETHER YOU
NEED OR WANT ALL THE CUSTOMERS YOU HAVE
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Can you refuse to service unprofitable
customers? Can Telstra and Australia Post refuse
to serve non - profitable customers? Should you
pay more attention to your bigger customers? Why
persevere with insignificant or unprofitable
customers?
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PARETOS RULE
80 percent of profits are likely to come from 20
percent of customers.
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What happens to customer service when the
extraordinary comes to be accepted as ordinary by
the customer?
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EXPECTATIONS
IS THE CUSTOMER ALWAYS RIGHT? By virtue of the
fact that the customer can choose not to use your
product/service - YES! However, customer
expectations are not always reasonable, or able
to be serviced by your organisation. EDUCATE
YOUR CUSTOMERS
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MANAGING CUSTOMER SERVICE
Customer service doesnt just happen. Good
customer service is dependent on your employees
- your most valuable asset Look after your
assets and they will look after your customers.
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COMPETENT STAFF
KNOWLEDGE OF GOOD CUSTOMER PROCEDURES IS NOT
INNATE An effective induction and training
program, matched to appropriate performance
appraisals will benefit you, your organisation
and all the customer supplier interface members.
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Customer driven organisations are successful
organisations in which Products, services and
bundles are designed around customer interests
and purchasing prospects Internal customer
service is recognised as being of equal
importance as external customer
service Organisational plans and strategies for
meeting customer needs and expectations are
supported by management, staff, systems,
technology and constant information gathering
processes Customer feedback is constantly sought,
recorded and analysed as part of the continuous
improvement cycle and to solve problems
efficiently Products and services are adjusted to
meet customer expectations Staff are trained and
empowered to meet customer expectations and to
provide excellence in customer service Workplace
culture supports quality and excellence at every
interface of the supplier-customer chain
SUMMARY