Customer Focus DigiBook V54

JULY 2017 | VERSION 54 D I G I B O O K CUSTOMER FOCUS

TABLE OF CONTENTS INTRODUCTION .............................................................................................................. 3 INTERNAL CUSTOMERS ................................................................................................ 3 EXTERNAL CUSTOMERS ................................................................................................ 4 DIFFERENCE BETWEEN INTERNAL CUSTOMERS AND EXTERNAL CUSTOMERS...................................................................................................................... 5 CUSTOMER SERVICE....................................................................................................... 6 CUSTOMER EXPECTATIONS OF SERVICE .................................................................. 7 CUSTOMER SATISFACTION .......................................................................................... 9 CUSTOMER CENTRIC ORGANIZATION ................................................................... 10 ZONES OF TOLERANCE ............................................................................................... 11 CUSTOMER CARE .......................................................................................................... 13 CUSTOMER FOCUS GRID ............................................................................................. 15 INITIATIVES TO BE TAKEN IN ORDER TO INCREASE CUSTOMER FOCUS ...... 16 CONCLUSION................................................................................................................. 16

2

IPR belongs to Atyaasaa

INTRODUCTION Customer service is dependent on the term ‘customer’. Let us first see what exactly the meaning of a customer is: In an organization, a customer may be defined as the person or organization receiving an outcome of process/a product/a service.

CUSTOMER stands for:

C

Critical to the existence and survival of the organization

U

User/recipient of the products and/or service

Sets the standard

S

T

Treated with dignity and respect

O

Our ally

M

Made of flesh and blood

E

Entitled to the best product/service we deliver

R

Right to change his mind

Hence, you must be your customers’ first choice!

INTERNAL CUSTOMERS Managers and employees at your business place represent the internal customers. The people and employees who work in the same organization and who use your

3

IPR belongs to Atyaasaa

products and services are called as your internal customers. They stand by your side, support you and make you appear good in front of the external customers. For example - the IT department and human resources department meet with the internal needs.

Now – a - days, the concept of internal customer is receiving tremendous attention. The internal customer is a member of the organization who receives products and services from others within the same organization. Large organizations feel that it is necessary to measure and monitor the internal customer satisfaction. An

organization which holds a commitment to treat its internal service users as customers holds a similar commitment to measure their satisfaction with the delivery of those services. Satisfaction levels among the customers can be measured which helps in providing a quantitative base for distinguishing the results over extended time periods and enabling data based decision making.

EXTERNAL CUSTOMERS Meaning External customers are the people or organizations that have an urge to buy your

product or service. They possess the money and they will pay you some of it, if you provide them with a solution that fulfils their needs and expectations. They are financially independent to choose where and how they would like to spend their money. Stakeholders constitute:  Shareholders  Suppliers  External customers  Employees/Internal customers

4

IPR belongs to Atyaasaa

 Government/Public agencies

DIFFERENCE BETWEEN INTERNAL CUSTOMERS AND EXTERNAL CUSTOMERS Internal customers i.e. the employees and external customers i.e. the consumers can be compared with each other. Businesses may benefit from such comparisons, as employee satisfaction is gained if customer service techniques are applied. Internal customer needs are more important than the external customer needs. Until and unless employee needs are fulfilled, consumer needs cannot be satisfactorily met. It was observed that internal customer satisfaction or dissatisfaction was created due to the particular behaviours undertaken by internal service providers and the attitudes with which they were performed. The same was seen in the case of external customers. Many organizations were astonished to discover that internal customer satisfaction is much lower than previously perceived. Organizations should first understand the necessity of the internal customer service, in order to provide a premium quality external customer service. As much as the external customer service is important, internal customer service is also important to organizations, which indicates more effective performance, less wastage and less expense. As a result of this the external customer is also satisfied.

Internal customer

External customer

Employee of the organization

Anybody

Known

Totally unknown

Requirements (expectations) precisely known

Requirements (expectations) intangible/unpredictable

Direct communication + feedback

Indirect communication

5

IPR belongs to Atyaasaa

Problems can be managed

It impacts the brand

Don’t pay bill

Pays bill (money)

High technology awareness

High business awareness

Part of your culture

Completely different culture

Contributes to personal growth

Contributes to organizational growth

CUSTOMER SERVICE It is the organization’s responsiveness to the needs of customers. The organization

combines the technical knowledge and professionalism with a touch of friendliness and courtesy towards the customers.

Customer service is a very critical area in business activities. Customer service is gained when you present and deliver a product of your organization with the aim of achieving customer satisfaction. All the employees or staff should maintain the standards of customer service in order to keep the customers happy and satisfied. Customer service is the technique of presenting and providing a product as it is expected by the customers. It requires skills and the knowledge to provide a product to the customers. Customers should be respected and treated with honour. The ultimate aim of customer service is to provide satisfaction to the customers. You should build a trust in the customers and they will be loyal to you. Interactions between you and the customer do affect the customer service. Professional qualities in customer service The professionals who constantly come in contact with the external as well as internal customers must imbibe in themselves certain qualities which will enable

6

IPR belongs to Atyaasaa

them to respond to the customers’ needs. The basic needs of the customers are as follows:  Customers like people who are courteous  Customers need to be assured that their needs are being considered  Every customer feels that they must be treated equally and be given justified answers  Customers require variety in their products so that they are able to choose from the available alternatives CUSTOMER EXPECTATIONS OF SERVICE Customer expects that the product delivered to him must be of the superior quality. Customer expectation is the primary stage in delivering true quality service. Expectations:

Person 1

Person 1

Group 1

Group 2

Expectation 1

Expectation 2

E1

E2

E1/E2

DE

Defined expectations

Joint goal is to get the new product out

The above diagram shows that, when one person expects something from the other person, the other person tends to expect something back from the first person. Similarly, when a group expects something from the other group, the other group expects back from the first group. The defined expectations, once formed, cannot be changed. The E1/E2 area is purely functional. Its joint goal is to launch a new product. Customers’ expectations vary regarding the service provided. These expectations are:  Desired service

7

IPR belongs to Atyaasaa

Desired service is the service expected by the customer.  Adequate service Adequate service is the service which is acceptable to the customers.

Customer expectation model Offering great customer focus is all about knowing the layers enumerated below:

Ideal expectations

Normative expectations

Experience based norms

Acceptable expectations

Minimum tolerable expectations

The attributes as the customer expects, which may be behavioural or technical indicators are:  Minimum tolerable expectations Here a customer expects that he/she is heard (listened), helped and the chemistry between the customer and the supplier is formed.  Acceptable expectations Here a customer expects communication, decisions in order to keep him/her informed and to show him/her the future.  Experience based norms Here a customer expects that solutions should be offered and technical problems should be handled. There should be an existence of innovation and alignment towards corporate mission and vision should be intact. The above three expectations offer, performing the job and most people can do the same. However, below are the two expectations which offer experience:  Normative “should” expectations Here a customer expects that the solutions offered fit his/her constraints, something which is out of the box, problems should not repeat. The customer also expects that his/her requirements are taken care of.

8

IPR belongs to Atyaasaa

 Ideal expectations or desires Here a customer expects a collaboration mode, a proactive environment and a preventive layer for him/her should be formed.

CUSTOMER SATISFACTION Satisfaction refers to the contentment of a customer. This is based on the product or service provided to the customer.

Understanding the mindset of a customer:  Customer satisfaction Customer is satisfied, when his basic requirements are fulfilled. However, this is considered as an old thought now, and is not practiced anymore.  Customer delight Customer delight is achieved through experience.  Customer loyalty Customer loyalty depends upon the brand, trust and uniqueness of the product. It’s also achieved through phenomenal experience, because of which, the customer keeps going back to the brand. Research suggests that customers do not judge the quality based on only one factor. He may judge it based on multi dimensional factors. These factors are:  Reliability Capacity to deliver the expected service reliably and precisely.  Responsiveness Urge to help the customers and make service available to them whenever they require.  Assurance To build and develop trust and confidence.  Empathy Attention to be given to the customers. Also care should be taken about the needs of the customers.

9

IPR belongs to Atyaasaa

Customer perceptions of quality and customer satisfaction

Situational factors

Service quality

Reliability Responsiveness Assurance Empathy Tangibles

Customer loyalty

Customer satisfaction

Product quality

Price

Personal factors

CUSTOMER CENTRIC ORGANIZATION Following are the key features of customer centric organization:  Customer centric organizations' understand principles of the clients as well as the moral that the customer corresponds to the bottom line  They seek to combine their operating models with the customer segmentation strategy  They contribute in providing the best value to their customers at a low price

Analyzing a customer centric organization:

Type of customer

Novice customer

Demanding/Difficult customer

Expert customer

Type of support team

Customer centric support team

 Exercise great patience

 Exercises patience

 Displays

confidence

 Is empathetic

 Deals assertively

 Understands needs

 Advices/suggests

 Doesn’t give in

 Provides all

 Walks the customer through

 Effectively

possible solutions

communicates

10

IPR belongs to Atyaasaa

 Is precise

Non customer centric support team

 Gets irritated

 Acts rude

 Intimidation by the customer

 Is curt with the customer

 Confronts head to head  Often ends up in argument

 Gets defensive

 Complacent

 Doesn’t pay much heed considering they are self- sufficient

 Acts condescending

ZONES OF TOLERANCE

Some customers have a very limited zone of tolerance as they have a narrow range for products and services. However on the other hand, customers who have a broader zone of tolerance are open for a wider range to choose their products or services. For example – a very

busy customer may not get the time to view all the products which are available. Hence his range will be limited and he will desire to select a product only from that limited range. The zone of tolerance of a customer is affected by a variety of factors, due to which the tolerance level may increase or decrease accordingly. For example – if the cost increases, customers do not show much tolerance towards poor services. Hence, the zone of tolerance diminishes as the adequate service level shifts upwards.

Zone of tolerance

Desired service

Adequate service

Customer’s tolerance zones differ for different products and services. The zone of tolerance is indirectly proportional to the factor. Normally, customers cannot

11

IPR belongs to Atyaasaa

withstand their tolerance when they experience unreliable services like broken promises or negligence in delivery of the product.

Adequate service

Level of expectations

Zone of tolerance

Adequate service

Zone of tolerance

Desired service

Desired service

Reliability

Tangibles

When a customer expects a nice burger and if it does not match up to his level, it turns into a bad service:

Customer expectation

What customer receive

When a customer is satisfied with the treatment he gets which fulfils his expectations, leads to good service:

Customer’s expectations

What customer receives

12

IPR belongs to Atyaasaa

When the customer is provided a little more which goes above his expectations, then good service becomes excellent service:

What customer receives

Customer expectation

A customer is delighted when the service goes above his expectations. The main challenge is to sustain this delight factor.

CUSTOMER CARE It is a component of customer service which constantly is in search of new customers in order to provide them with a superior customer service and generate customer loyalty. It constitutes a wide range of tangible and intangible elements. Tangible elements These are the factors which can be seen or felt, heard or tasted. Many of these factors can be measured easily. They are often based on skills which can be taught and learned. Examples of tangible elements include aspects such as product features like size, weight, colour, speed, ease of access etc. Intangible elements These are much more difficult to define and measure. They are often more subjective. They are highly dependent on attitudes which can be influenced but not taught. Examples of intangible elements include making the customer feel secured, relaxed and trusted. It also includes making him well inclined towards the supplier, the individual members and the staff. As customer care consists of both these elements, it is the responsibility of the managers to ensure that:

13

IPR belongs to Atyaasaa

 The relevant skills are available by either recruiting staff who have already acquired these skills or by ensuring that these skills are imparted to existing or new staff by training, giving examples or influencing through leadership.

 The right environment exists or is created to influence the attitude of the staff and through employee’s attitude the customer is positively disposed towards the organization and its employees.

 Organization pays enough attention to the intangible elements since it is much easier for a competitor to copy features of a product, imitate a service or utilize improved tools and equipment than to improve on the intangible elements. It is a much longer process which needs to be sustained continuously.

 The customers feel that they are taken care of. Resolving the customer’s issues should be given the highest priority. It will

create loyal customers who will come back and remain customers. It costs about five times as much to acquire a new customer than it does to keeping an existing one.

Growing importance of customer care Customer care has become increasingly important due to the following factors:  Increased competition - The customer has a choice  Well informed customers  Product similarity - Need for differentiation  Rising demand for improved support  Life cycle cost considerations - Maintenance and running costs play an increasing part  Integration of customers own work with suppliers’ products and services  Desire to concentrate on mainstream activities

14

IPR belongs to Atyaasaa

CUSTOMER FOCUS GRID This is the customer focus grid, based on the organization and team/individual.  First quadrant In this quadrant, neither the organization, nor the team/individual is customer focussed. Usually in such organizations, there exists fun loving environment. However, there is lack of development of the organization and the team/individual. They become swamps.  Second quadrant In this quadrant, the organization is customer focussed, but the team/individual is not. Due to this, the growth of the organization is compromised. The culture displayed in the organization is positive, but the team culture can be negative. As a result, team’s branding becomes negative. Team’s work is outsourced. There arises retrenchment in the organization.  Third quadrant This is a quadrant, where team/individual is customer focussed, but the organization itself is not customer focussed. As a result, attrition is high. It leads to disharmony. Goals of the organization as well as the team/individual are compromised. This further leads to negative branding of the organization.

Organization

Customer focussed

Non customer focussed

 It’s diffcult to achieve this state due to organizational pressure  Once achieved creates an industry benchmark

 Attrition high  Disharmony  Goals compromised  Organization’s branding negative

Team’s moving up

 Organization’s growth is compromised  Team’s branding negative  Team’s work outsourced  Retrenchment in the organization  Culture displayed positive, but team cuture can be negative

 Fun loving enviornment  No growth  Becomes a swamp

15

IPR belongs to Atyaasaa

 Fourth quadrant This quadrant consists of customer focussed team/individual as well as the organization. However, normally, it is difficult to reach this state due to the organizational pressure. But once achieved, creates a benchmark for the market. Hence, the intention is to move the second and the third quadrant up in the fourth quadrant, by improving upon customer focussed team/individual and organization respectively. INITIATIVES TO BE TAKEN IN ORDER TO INCREASE CUSTOMER FOCUS  Customer voice  Plan visit seminars for key customers  Problem solving participation  All innovations aligned to organizational needs

 Connecting with customers  Customer experiences success  Buy technologies  Pre–empt technology

CONCLUSION Customer is satisfied only when his needs as well as expectations are fulfilled. Many

organizations have developed strategies to improve the quality of service provided to external customers. However organizations tend to neglect the main source due to which external customers are satisfied – internal customers. The internal customers should be given recognition and their needs and requirements should be considered. Every effort to fulfill them ought to be given priority. Only then it is possible to attain total customer satisfaction.

16

IPR belongs to Atyaasaa

Each person should try and improve their surroundings and indulge in new things in order to satisfy their customers. They must also consider others requirements in the organization and work together in order to achieve them. A lot of emphasis should be given on teamwork. This is because unless and until all the employees are not willing to work with each other, customer service cannot be met. Employees should thrive and work together in order to achieve the common goals. In brief, overall customer service comprises meeting the needs and requirements of the internal as well as the external customers.

References: www.docstoc.com, www.corkuniversitypress.typepad.com, www.booz.com, www.scribd.com, www.tunio.com, www.crfonline.org

17

IPR belongs to Atyaasaa

18

IPR belongs to Atyaasaa

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18

Made with FlippingBook - professional solution for displaying marketing and sales documents online