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CUSTOMERS

Anyone who thinks


customers are not
important should try doing
without them for a week

Source : Unknown
Pakistan Institute of

Customers

Introduction
Types of Customers
Customer-driven Institutions
Customer Needs, Expectations and Priorities
Customer Relationships Management
Customer Identification and Segmentation
Communication Techniques
Multiple Customer Management and Conflict
Resolution
Customer Partnerships
Customer Retention
Pakistan Institute of

INTRODUCTION

Introduction
CUSTOMERS are the most
important people in any institution,
not PROFITS or GROWTH.
The element of customer
satisfaction has advanced to the
forefront of the Quality effort.

Pakistan Institute of

Introduction
Companies that have placed an emphasis
on customer satisfaction did so :
To improve their product cost position
through a total quality program which
shifted to customer satisfaction.
To improve their market positions which
started with better product quality then
moving to customer satisfaction.

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Introduction
The customers perception of
Quality is the single most
important factor for market share
and profitability and companies
must combine their product quality
with the delivery of service to
provide the highest customer
satisfaction
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TYPES OF
CUSTOMERS

Types of Customers
Shareholders

Customers

Company

Employees

Regulators
Community

Suppliers

Organizational Stakeholders
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Types of Customers
External Customers
Final Customers/End-Users
Intermediate

Internal Customers

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Types of Customers
The next operation as customer
- Kaoru Ishikawa

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Internal Customers
Triple Role
Needs

Supplier

Input

Needs

Processor

Feedback
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Output

Customer

Feedback
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Types of Customers

An Example

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Types of Customers
Exercise
External Customers - 3 main
customers (describe type)
Internal Customers - 3 main
customers

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CUSTOMER -DRIVEN
INSTITUTIONS

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Customer Driven Institutions


A customer driven company serves
the needs of its customers.
The company should develop a
customized approach to customer
satisfaction. This means that the
company will have progressed from
product quality to customer
satisfaction and into market perceived
quality and value as compared to the
competition.
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Customer Driven Institutions


This customized approach will
differentiate a company from its
competitors.
The customer will choose a
business because it meets their
needs in some way : better
service, better quality, ease of use
or ability to perform.
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Customer Driven Institutions


Price
Controllable:

Product Service
quality quality

Image

Customer-perceived value
Customer
characteristics

Uncontrollable :

Innovation

Business
environment
Loyalty

Market share and profitability


Shareholder value
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Customer Driven Institutions


What does it require to build a
customer driven company?
A program format could be :
Listen to the customer : customer
needs
Define a service strategy : the
customer focus
Set standards of performance :
needed for measures and results
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Customer Driven Institutions


What does it require to build a
customer driven company?
Select and train employees : the
right employees and proper training
are important
Recognize and reward
accomplishment : Must follow this
through properly
(Shaaf & Zemke, 1989)
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Customer Driven Institutions


Nurture
Service
Leadership
Build a service quality
information system
Create a service strategy
Service reliability
Service surprise
Service recovery
Service fairness

Implement the
service strategy
through structure

Implement the
service strategy
through technology

Implement the service strategy through people


Compete for talent
Develop skills and knowledge
Empower servers to serve
Work at teamwork
Measure performance, reward excellence

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CUSTOMER

NEEDS,
EXPECTATIONS &
PRIORITIES

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Customer Needs, Expectations


and Priorities
Needs and expectations are the basic
common denominators of customer
retention.
What are needs?
Needs could be defined as the benefits to
be fulfilled by the product or service
defined in the customers own words.
These ought to be identified and their
specific effects on customer retention
determined.
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Customer Needs, Expectations


and Priorities

What are expectations?


Expectations are closely related to
needs except they are usually stated
in more finite terms, such as the
amount of time for obtaining an
appointment with a physician. They
are frequently dimensional in nature :
time, size, price, completeness and so
on.
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Customer Needs, Expectations


and Priorities
Products or services have to be
provided that satisfy customer needs.
Customer needs are not stable but
continue to change. A service that
satisfies certain needs may generate
new needs. Maslows hierarchy of
needs is a good illustration of the
advancement of needs.
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Customer Needs, Expectations


and Priorities
MASLOW HIERARCHY
Self-fulfillment
Needs
Ego or Esteem Needs
Social Needs
Safety Needs
Physiological Needs
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Customer Needs, Expectations


and Priorities
Juran lists customer needs as such :
Stated needs : What the customers
say they want? (say, a car).
Real needs : What the customers
really want? (Transportation).
Perceived needs : What the
customer thinks is desired? (A new
car is better than a used car).
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Customer Needs, Expectations


and Priorities
Cultural needs : Status of the
product (a BMW).
Unintended needs : The customer
uses the product in an unintended
manner (a BMW used to haul
concrete blocks).
Needs and their classification can
also be thought of in three ways :
time, state and level.
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Customer Needs, Expectations


and Priorities
TIME
Existing needs : The needs that are
currently present, such as reliability
or safety.
Future needs : They do not exist
now but may be emerging because
of changes in society, such as
computers with more features.
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Customer Needs, Expectations


and Priorities
STATE
Emotional needs : These may have
to do with self image, status and
self-fulfillment such as in the Maslow
hierarchy.
Rational needs : These are functional
and utilitarian in nature.
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Customer Needs, Expectations


and Priorities
LEVEL
Primary needs : These are the more
basic needs in Maslows hierarchy such
as for food, shelter, relationships and
exercise.
Secondary needs : They might be useful
or helpful to the customer but are not
essential, such as attractiveness,
convenience and comfort.
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Customer Needs, Expectations


and Priorities
Three Levels of Expectations
Looking at different levels of expectations
can help an organization determine where
to place its priorities. Dr. Noriaki Kano of
the Science University in Tokyo has stated
three basic levels of customer reactions to
quality features or characteristics which
are described as take it for granted,
expected and exciting attributes.
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Customer Needs, Expectations and


Kano Model of Quality
Priorities
Delight

Patient Satisfaction

Exciting
Expected
Neutral

Take-it-for-Granted

Dissatisfaction

Absent
Presence of the Characteristic
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Fulfilled

Customer Needs, Expectations


and Priorities
Take-it-for-Granted Attributes
Examples of attributes that patients take
it for granted in a healthcare
organization may include matters such
as physician skills, availability of
technology and equipment and systems
set up so that tests are not misplaced.
Patients expect hospitals to provide
skilled physicians and may assume that
medical skill is relatively the same across
hospitals.
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Customer Needs, Expectations


and Priorities
A patient may not respond favourably
when a healthcare organization
provides a competent service, but if
the organization fails to provide it,
the patient will probably become
frustrated or angry. Ensuring that take
it for granted features are present is
considered by some to be the role of
quality assurance.
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Customer Needs, Expectations


and Priorities

Expected attributes
Attributes that patients expect may
include attention and concern shown by
nurses and accommodation for visitors.
Like take it for granted attributes,
patients expect these characteristics to
be present, but that expectation is not
assumed to the same degree that, for
example, appropriate equipment may be.
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Customer Needs, Expectations


and Priorities
Expected attributes
By providing expected attributes an
organization will help ensure that
the patients conscious desires for
care and service are satisfied.

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Customer Needs, Expectations


and Priorities

Exciting Attributes
Patients may not expect exciting
attributes but are delighted when they
are present.
Examples of exciting attributes could
include no paper work on admission,
extra time with physician or special
concern from a nurse. The more useful
yet unexpected a feature, the more
likely it is to create true delight.
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Customer Needs, Expectations


and Priorities
Three Levels of Expectations
Meeting needs and expectations is like
trying to hit a moving target.
Something that was an exciting
attribute 10 years ago may be a takeit-for-granted attribute today. That is
one reason, it is important for all
organizations to keep a constant tab
on customers needs and expectations.
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Customer Needs, Expectations


and Priorities
Customer Priorities
Once organizations know the customers
needs and expectations, they assign
priorities by asking questions :

What attributes are value?


How desirable is each attribute (give some form
of rating)?
How do we compare to the competitors
products?
What other features or services would be of
value?
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CUSTOMER

RELATIONSHIPS
MANAGEMENT
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Customer Relationships
Management

For institutions which stress Total


Quality as part of their operating
plans, the interests of the customer
comes first. The business becomes
customer-oriented versus profit
oriented.
Customer relationship management is
the art of managing your relationships
with your customers, be they external
or internal.
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Customer Relationships
Management

Internal Customers : Employees


Internal customers are the employees
of the company. Ishikawa coined "the
next operation as customer" in order
to remove the sectionalism of
departments towards each other.
The essential idea is to enable
employees of all departments to come
together to solve problems.
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Customer Relationships
Management
Internal Customers : Employees
Customer relationship
management can be best viewed
by showing the Service-Profit Chain
which establishes relationships
between profitability, customer
loyalty, employee satisfaction and
loyalty and productivity.
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SERVICE-PROFIT CHAIN
The links in the chain are as follows :
Operating Strategy and Service Delivery System

Internal
Service
Quality

Employee

Revenue

Retention

Growth

Employee

External

Customer

Customer

Satisfaction

Service

Satis-

Loyalty

Value

faction

Employee

Profitability

Productivity
Workplace design
job design
employee selection
and development
employee rewards
and recognition
tools for serving
customers

Service
concept : results
for customers

Retention
repeat business
referral

Service designed
and delivered to
meet targeted
customers needs

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Customer Relationships
Management

SERVICE-PROFIT CHAIN

Profit and growth are stimulated primarily by


customer loyalty. Loyalty is a direct result of
customer satisfaction. Satisfaction is largely
influenced by the value of services provided
to customers. Value is created by satisfied,
loyal and productive employees. Employee
satisfaction, in turn, results primarily from
high quality support services that enable
employees to deliver results to customers.
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Customer Relationships
Management
It is most important in this analysis to
consider the voice of the employees as
customers. In this regard, employee
surveys, interviews or roundtable meetings
are extremely important to gather
information on a number of factors such as
:
State of the company : A perception of the
company through the employees eyes.
State of quality efforts : Are the quality efforts
worthwhile?

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Customer Relationships
Management

State of the processes : Are there


improvements?
Reaction to policies and procedures
: What dumb things were
implemented?
Rating of job satisfaction : Do I like
my job, my boss, etc ..
Rating of company satisfaction : Is
the company a good place to work?
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Customer Relationships
Management

Research has shown that management


practices relate to employee satisfaction,
which also impacts customer satisfaction.
When employees are satisfied with their
treatment, given the right tools to do the
job and supported by management,
customers are more likely to have higher
perceptions of quality and will continue
to do business with the company.
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Customer Relationships
Management

The expression : The Moment of Truth" is


where individuals from the company come
into contact with the external customer.
These employees at "the Moments of
Truth" represent the company to the
customer. The selection of these
"customer contact" employees, therefore,
is one of the most vital tasks for customer
geared organizations. The selection
criteria emphasize : teamwork potential
and customer orientation.
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Customer Relationships
Management

Training is extremely crucial to such


organizations which teach these
employees all the necessary skills
which will help ensure that the
external customer is satisfied.
In these outstanding customer service
organizations, employees are treated
with the same respect with which they
are expected to treat external
customers.
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Customer Relationships
Management

Communication with employees on


customer satisfaction can be improved
through the following options :
Company newsletters : Basic
information and corporate news
Storyboards : Display on specific
company wall board; memos,
letters, project papers or subjects
that would effect the employees
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Customer Relationships
Management

Team meetings : Use them to share


business news or announce news
events.
Posting customer letters of
appreciation or dissatisfaction.
Staff meetings to share the
information
Display of goals, progress charts, etc.
Quality awards from suppliers
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Customer Relationships
Management

Some visible signs of employee


satisfaction can be obtained from data
that is accumulated by human
resources such as turnover of
personnel and absenteeism. Exit
interviews should be conducted on all
employees, with emphasis on
gathering information on attributes and
characteristics of the company climate.
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Customer Relationships
Management

As Jan Carlson has said "If you are


not serving the customer, your job
is to be serving someone who is".

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Customer Relationships
Management

External Customers
The seeking of customer
satisfaction or delight are most
important to the management and
its employees.
The management of the company
can reinforce its commitment to
the customer via its actions.
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Customer Relationships
Management

External Customers
The customer expects his or her
needs and expectations about the
product or service to be not only
satisfied, but even exceeded. If
there is a problem with a product
or service, a customer wants an
assurance that there will be help
available.
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Customer Relationships
Management

External Customers
Some of the other things that a
customer expects the company to
handle include :
Guarantees e.g. Warranty which is
a public commitment to satisfy the
customer.

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Customer Relationships
Management

External Customers
Complaints : But remember only 4% of
the dissatisfied customers let the
company know of the problem. The other
96% vote with their feet but do not
complain because they may not know how
to register a complaint, they don't think it
will do any good, people feel pushy or
awkward if they complain and they think
that the service provider might fight back.
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Customer Relationships
Management

External Customers
Feedback : Feedback provides
information on customer
dissatisfaction, establishes its quality
priorities, compares performance
against competition, identifies
customer needs and determines
opportunities for improvement.
Corrective actions
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Customer Relations Management


At the end of the day, such
organizations will have to build
commitment into their game plan
where customer will always be
right.

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Customer Relations Management


Most organizations talk about being
customer-focussed but they really do
not show real commitment. What
passes for commitment is compliance.
There are several definitions to
consider :

Compliance : Follows the letter of the


law, the vision or the mission.
Enrolled : A free choice to follow the
company vision or the mission.
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Customer Relations Management

Commitment : Definitely wants the


vision, the mission to come alive. Will
do what is necessary to make it happen.

In most organizations the vast majority of people are just


compliant. They will follow the leader and do what is
expected of them; few people are enrolled and fewer are
committed to the vision/mission of the company.

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Customer Relations Management


The committed people will have an
energy, a passion and an excitement
that is over and above the norm. The
committed person will do what is takes;
make new rules; or break the rules in
order to achieve the vision. A group of
committed people, a committed
management, better yet, a committed
company can achieve great things.
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Customer Relationships
Management

External Customers
The voice of the customer can be
listened to through a number of ways :
Customer surveys
Customer follow-up surveys (6 months, 1 year or 2 years).
Community surveys : a look at what the community is doing.

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Customer Relationships
Management
External Customers
Personal customer contact.
Customer contact reports : Customer
fills out satisfaction report. The
feedback is given directly to the
employee.
Customer counseling : Residents of
specific functions form a council and
provide feedback to the governing
agency.
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Customer Relationships
Management

External Customers
Focus groups : Small and large groups
Customer interviews
Electronic mail
Test marketing : small area is tested
for use
Quality guarantees : if not satisfied
we will redo the training
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Customer Relationships
Management

External Customers
Inspectors : use of mystery
shoppers, auditors
Ombudsmen : advocates for the
customers
Suggestion boxes

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Customer Relationships
Management

External Customers

"You must take the customer's skin


temperature every day"
Matsushita

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Customer Relationships
Management

External Customers

The Quality Function Deployment (QFD),


sometimes referred to as the House of
Quality, is a technique which provides a
methodology for ensuring what customers
want which are then translated into
technical characteristics which the
company could employ to provide a better
product in time in line with the customers
needs and expectations.
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CUSTOMER

IDENTIFICATION &
SEGMENTATION
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Customer Identification and


Segmentation
They can have any color car they
want, so long as its black
Henry Ford on Model T

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Customer Identification and


Segmentation

BASIC PREMISE
Determine what consumers need
and want
Try to satisfy those needs and wants,
provided it is consistent with your
strategy and rate of return.
Move away from Product-Driven
approach towards a Market or
Customer-Driven approach.
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Customer Identification and


Segmentation
The biggest single barrier to the
development of an effective
corporate strategy is the strongly
held belief that a company has to
appeal to the entire market.

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Customer Identification and


Segmentation
Identify Customers :
Core/Key Customers
Non-Core Customers
Potential Customers
Another classification :
Consumer Customers
Business Customers
For Profits
Not for Profits
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Customer Identification and


Segmentation
Segmentation Variables
Purchase Volume
Profitability
Industry
Geographic
Demographic
Psychographic
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Customer Identification and


Segmentation
Segmentation Concepts

.
. .. . . ..
.. ..

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A A
A

1A 2B
1A
1B
3B
3A
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Customer Identification and


Segmentation
Segmentation Concepts

No market
segmentation

Complete
market
segmentation

.
. .. . . ..
.. ..

Segmented by
a single
criterion

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A A
A

Segmented by
multiple criteria

1A 2B
1A
1B
3B
3A
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Price

.. . ..
...
.. .. . . ....
.
.
.
. . . ....
Quality

.
.
...........
. ..

Quality

Quality

Customer Identification and


Segmentation
Patterns of Segmentation

Price
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Price
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Customer Identification and


Segmentation
Patterns of Segmentation

Price

Clustered
preferences

.. . ..
...
.. .. . . ....
.
.
.
. . . ....

Price
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Quality

.
.
...........
. ..

Diffused
preferences

Quality

Quality

Homogeneous
preferences

Price
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Customer Identification and


Segmentation
Choosing a Segmentation Strategy
Create and maintain a customer information
system
Use SWOT analysis to determine competitive
position
Use surveys to evaluate perceptions of your
organization as well as your competitors
Create a segmentation strategy that fits the
strategic intent in the context of opportunity
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Customer Identification and


Segmentation
Barriers
Failure to Identify Customers
The We Know our Customers Myth
Failure to align operations with
Marketing Strategies
Failure to distinguish need for
separate service delivery processes

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COMMUNICATION
TECHNIQUES

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Communication Techniques
Organization rely on various
methods to gather, assess and act
on information to serve customers
and drive marketing activities.

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Communication Techniques
Key Benefits
Used to discovering customers needs and
requirements.
Management by fact (data-driven
corrective action/process.
Improved customer satisfaction, retention
and advocacy (positive word of mouth).
Pinpoint perceived performance and
market position in terms of competition.
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Communication Techniques
Methods
Reactive feedback
Complaint monitoring, warranty
systems

Proactive feedback
Written surveys, telephoning, visiting
customers

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Communication Techniques
Information Gathering
Strategic planning
issues

Customer records

Complaints
Surveys

Office
of the
customer

Benchmarking
Transaction
data

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Corrective
action teams
Process
improvement
teams
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Communication Techniques
Competition is driving companies to
significantly improve 3 vital
components of their communication
systems :
Customer databases
Customer satisfaction systems
(surveys)
Complaint handling systems
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Communication Techniques
Surveys
Please be aware of the following
distinctions :
Population versus Sample
Validity
Reliability
Bias
Quantitative versus qualitative
research
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Communication Techniques
Survey Tools / Methods
Written/Mail Surveys
Telephone Surveys
In-person Interviews (One-on-One)
Focus Groups
Customer Councils
Joint Planning Meetings
Panels
Comment Cards / Suggestion Boxes
Observation (Murmurs)
Mystery Shoppers
Others
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Communication Techniques
Mistakes made in determining customer
satisfaction
Assuming We Know
Using Survey Questions that the
company wants the customer to answer
Survey Samples of Customer that are
neither random nor representative
Poor Question definition and invalid
statistical samples can lead the company
in the wrong direction.
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Communication Techniques
Communications - A two-way process
Listen ---> Talk
External Customers :
Provide unsolicited information
Make information available on demand
Internal Customers
Newsletters
Meetings
Story boards
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Communication Techniques
Barriers to effective communication
Failure to be Proactive
Customer does not know/cannot
articulate requirements
Failure to use the Customers
Language
Poor Research Design
Ineffective Use of Results
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Communication Techniques
Best Practices
Define Customer Requirements
Regularly measure performance and
customer satisfaction
Systematically review survey and
other customer information
Create strategies, corrective action
and process improvement plans on
the basis of the information
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MULTIPLE CUSTOMER
MANAGEMENT
& CONFLICT
RESOLUTION
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Multiple Customer Management


and Conflict Resolution
Multiple Customers - Not One
Vital Few (~ 20%) vs Useful Many
(~80%)
Looking at special needs

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Multiple Customer Management


and Conflict Resolution
Methodology to follow
Know who your best customers are
Segment the best customers
Price for profit
Consider a strategy to remove
excess services from the lower
profit customers
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Multiple Customer Management


and Conflict Resolution
In most dealings involving people,
conflicts will occur.

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Multiple Customer Management


and Conflict Resolution
6 basic ways to resolve a conflict
Changing perceptions
Avoiding conflict
Smoothing
Forcing : Win-Lose
Compromise : Win-Lose
Confrontation and problem-solving
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Multiple Customer Management


and Conflict Resolution
Service Recovery Process
Apologize
Listen and empathize
Fix the problem quickly and fairly
Offer atonement
Deliver on your promises
Follow-up
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Multiple Customer Management


and Conflict Resolution
Resolving conflict helps establish trust
and a long-term relationship.
Conflict resolution is seldom possible
in which the supplier tells the
customer Thats the way we do it,
take it or leave it.
One requires excellent human
relations to deal with resolving
conflict.
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CUSTOMER
PARTNERSHIPS

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Customer Partnerships
Refers to the relationships that can
exist between customers and their
suppliers for the mutual benefit of
both.

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Customer Partnerships
Strategic relationships are known by many
names:
An alliance : working together for a
common purpose.
Partnership : Implies a shared fate, mutual
benefits and equal relationship.
Strategic relationships : Co-operative
undertaking which could involve
technology, licenses, or supply/marketing
agreements.
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Customer Partnerships
Why develop a customer-supplier
partnership:
A suppliers capabilities might exceed
internal capabilities .hence outsource.
Cost-cutting might force to look outside.
Combining resources may be beneficial to
attain technological breakthroughs, enter
new markets and/or develop new
products/services.
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Customer Partnerships
Dos of alliances :
Take advantage of unique
strengths
Advantage of marketing channels
Advance of capabilities :
technology, skills, etc.

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Customer Partnerships
Dont of alliances :
To correct a weakness
Share licensed technology
Rally around certain products

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Customer Partnerships
Two different kinds of partnerships :
a) Internal customer partnership : This
is between departments.
b) External partnerships with suppliers
:

Mutual benefits
Trust building
Open and complete communication
Interdependence of parties
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Customer Partnerships
Benefits
Cost/Time Savings
Better products and services
Supplier improvement

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Customer Partnerships
Barriers
Customer dictates - No equality
Trust takes time

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CUSTOMER
RETENTION
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Customer Retention
Total customer satisfaction is a goal for the
customer driven organization. There are
two elements that make up Total Quality :
good service quality and good product
quality.
Once customer purchases a service or
product from the company, the work should
start to retain them for further purchases.
Most organizations spend the bulk of their
resources on attaining new customers and
a smaller amount on retaining customers.
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Customer Retention
The campaign for retention of
customers can prove to be a major
business decision that effects the
company.
High customer satisfaction
numbers do not necessarily mean
the company has good customer
retention and good customer
loyalty. It is an unreliable indicator.
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Customer Retention
Unaware of the importance of
customer retention, many customer
service programs are geared wrong.
It has been found that current
customers are worth as much as five
times more than new customers. The
cost of holding and retaining a current
customer is only a quarter of the
costs of acquiring a new customer
(Industrial Engineering, February
1995).
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Customer Retention
The longer a customer is with you,
the more revenue/profit he or she will
give you. Another study has shown
that companies will boost profits by
about 100% by just retaining 5%
more
of
their
customers.
The life cycle of a customer is defined by 5 stages :
Acquisition: converting a prospect to a customer, high costs

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Customer Retention
Retention : keeping the customer.
A quarter of the cost to acquire
Attribution : customer enthusiasm
fades as dissatisfaction creeps in
Defection : Losing the customer
Reacquisition : Regaining the
customer but at high cost
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Customer Retention
The effort to retain customers
requires some effort on the
company's part. Over 60% of
dissatisfied customers are so sick
and tired of poor service that they
think it is futile to complain any
more.
Customers buy expectations, not
just products and services.
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Customer Retention
Studies indicate that if a problem
does happen and it turns out to be
a bad experience, the unhappy
customer will tell 9 to 10 people
about it. A happy customer might
only tell five people about his good
experience (Sinha J. 1993).

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Customer Retention
Some techniques for getting to know your
customer better :
Don't use your own instincts as research
data (you're not the customer).
See the world from the customer's side.
The higher you are in organization, the
more out of touch you become (and
arrogantly sure of what the customer
wants).
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119

Customer Retention
Go to the source of information
(the customer), use multiple
techniques of research : focus
groups, mail/phone surveys,
comment cards, customer exist
research.
Get customers to really talk :
96% of unhappy customers won't
lodge a complaint.
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Customer Retention
Do research to retain customers :
Determine how satisfied customers
were.
Conduct research on customer
expectations : friendly clerks, clean
rest rooms, pricing, etc.
Develop a customer profile : a
customer information file can contain
all pertinent data on the customer.
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Customer Retention
Share the results of customer
research studies but do not go
overboard on the details and
measurement.
Use the research.
Coordinate research efforts.
Sometimes research does not help
the situation.
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Customer Retention
Customer Loyalty
The value of a loyal customer is
not measured on the basis of one
encounter but rather on his or her
lifetime worth.
Loyal customers account for a high
proportion of sales and profit
growth. Customer retention
generates repeat sales.
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Customer Retention
Customer Loyalty
It is cheaper to retain customers
e.g in life insurance, new policy
holders become profitable in three
years and in the credit card
business, the break-even point for
a new customer is six years, due
to high marketing and bad debt
cost.
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Customer Retention
Customer Loyalty
Customer loyalty is something
that must be demonstrated
through an act of execution, trust
or delightful service. They could
become partners with you through
their journey as a customer.

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Customer Retention
A Satisfied Customer Is Loyal

Loyalty Retention

100%

apostle

Zone of affection

80
Zone of indifference
60
40

Zone of defection

20

terrorist
1
2
extremely somewhat
dissatisfied dissatisfied

3
slightly
dissatisfied

4
satisfied

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Satisfaction Measure

126

5
very
satisfied

CUSTOMERS
127

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