Learner Guide

US ID: 120310 Learner Guide
Apply client service techniques to improve service delivery
US ID: 120310
NQF LEVEL 5
LEARNER GUIDE
Customer Service Management 1
Field 03 - Business, Commerce and Management Studies

NQF Level 5
2nd Edition Nov 2012
DISTRIBUTOR
This courseware is owned and distributed by BBT Institute t/a NSA Business and
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COPYRIGHT
Developed by BBT Institute
Copyright ©BBT Institute 2011. All rights reserved
No part of this Publication may reproduced, stored in retrieval system, or transmitted,
in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without the prior permission of the copyright owner.
Although every attempt has been made to ensure that the management guidelines
are safe and correct, the developer, publishers, and sponsors of the manual cannot
accept any responsibility for errors arising from the use of this manual for any
purpose.
BBT-US-5-120310
LIMITATION OF LIABILITY
Every effort has been made to ensure complete and accurate information concerning
the material presented in this course. Neither BBT Institute nor its agents can be
held legally responsible for any mistakes in printing or for faulty instructions
contained within this course. The publisher appreciates receiving notice of any errors
or misprints.
Information in this manual is subject to change without notice. Companies, names

and data used in examples herein are fictitious unless otherwise noted

TABLE OF CONTENT
ACKNOWLEDGMENT................................................................................................7
PREFACE:...........................................................................................................................8
1 INTRODUCTION......................................................................................................9
Learning programme overview.............................................................................................9
Critical Cross-Field Outcomes:............................................................................................10
UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE......................................................11
2. ABOUT THE PROGRAMME...................................................................................11
2.1 Learner Support.......................................................................................................11
3. ASSESSMENT........................................................................................................12
3.1 Formative Assessment.............................................................................................12
3.2 Summative Assessment...........................................................................................12
4. NAVIGATING THE LEARNER GUIDE.......................................................................13
4.1 Use of Icons..............................................................................................................13
Group Activity / Pair Activity:......................................................................................13
Individual Activity:.......................................................................................................13
Portfolio Activity:.........................................................................................................13
Self-Reflection:.............................................................................................................13
Learner Tip:..................................................................................................................13
Resources:...................................................................................................................14
Facilitators Note:.........................................................................................................14
Mentored Discussion:..................................................................................................14
Learning Outcomes:.....................................................................................................14
Self-Assessment:..........................................................................................................14

5. LEARNER ADMINISTRATION.................................................................................14
5.1 Attendance Register.................................................................................................15
5.2 Learner Registration Form.......................................................................................15
5.3 Programme Evaluation Form...................................................................................15
Note to learners..................................................................................................................16
Learner’s class room rules..................................................................................................17
Learner’s materials.............................................................................................................17
us id: 120310:.........................................................................................................18
Manage customer TO IMPROVE SERVICE DELIVERY................................................18
INTRODUCTION...........................................................................................................18
1: LISTEN TO AND INTERPRET CUSTOMER NEEDS...................................................19
INTRODUCTION...............................................................................................................19
A. Who is the Customer?..............................................................................................19
B. What Are The Customer's Requirements?...............................................................20
1.1: INTERPRETATION OF CUSTOMER'S NEEDS.............................................21
1.1.1: Understand and Predict Customer Needs.........................................................21
1.1.2 A guide to asking questions..............................................................................21
1.1.3 Active Listening................................................................................................22
1.1.4 Customer loyalty..............................................................................................22
Group Activity / Pair Activity:1.....................................................................................24
1.2: CUSTOMERS NEEDS..........................................................................................24
1.2.1 Prioritise customers needs..............................................................................25
1.2.2 Prioritization.....................................................................................................26
1.2.3 Simple Prioritization.........................................................................................26
1.2.4 Prioritization Tools...........................................................................................27

Paired Comparison Analysis................................................................................................27
Grid Analysis.......................................................................................................................27
The Action Priority Matrix...................................................................................................27
The Urgent/Important Matrix.............................................................................................27
The Ansoff Matrix and the Boston Matrices.......................................................................28
Pareto Analysis...................................................................................................................28
1.3 METHODS OF LISTENING TO A CUSTOMER.............................................29
1.3.1 Listening to your customers.............................................................................29
1.3.2 Why gather customer feedback?.....................................................................29
1.3.3 Make your customers feel served....................................................................30
1.3.4 The Best Methods for Listening To the Customer.....................................30
1.3.5 Customer Service.............................................................................................31
1.3.6 Mail Surveys.....................................................................................................31
2: DESCRIBE ACTION PLAN.....................................................................................34
A. ACTION PLAN.......................................................................................................34
2.1: ACTION PLAN WITH ALL STAKEHOLDERS...................................................35
2.1.1 Identifying Stakeholders...................................................................................35
2.1.2 Working with Stakeholders..............................................................................36
2.1.3 Involving Stakeholders.....................................................................................36
Group Activity / Pair Activity: 4....................................................................................37
2.2: COMMUNICATING AN ACTION PLAN..............................................................38
2.2.1 How DO You Communicate To Get Workplace Change?..................................38
2.2.2 The Three-Step Staging Process.......................................................................38

2.2.3 Implementation Guidelines..............................................................................39
2.2.4 How do you develop a plan for communication?.............................................41
Group Activity / Pair Activity:5 (PRACTICAL WORKPLACE ASSESSMENT)......................42
2.3: EVALUATING ACTION PLAN TO MEET CUSTOMER REQUIREMENTS.....43
2.3.1 Make an Action Plan to Improve Customer Service.........................................43
2.3.2 Good Customer Service: Customer Complaints and Returns...........................44
2.3.4 Planning to Meet Customer Needs..................................................................45
2.3.5 Complaints - develop an action plan................................................................46
3: Implement action plan to meet customers’ needs..............................................47
1.1: EVALUATING ACTION PLAN.............................................................................48
Understanding your customers and market.......................................................................52
Group Activity / Pair Activity: 7....................................................................................52
3.2: ACTION PLAN IN BUDGETS AND RESOURCE ALLOCATIONS MARKETING

PLANS...........................................................................................................................52
3.2.1 Budget..............................................................................................................53
3.2.2 Marketing Plan Supporting Documents............................................................53
3.3: ACTION PLAN TO THE SATISFACTION OF THE CUSTOMER AND THE

ORGANISATION...........................................................................................................54
3.3.1 Customer satisfaction.......................................................................................54
3.3.1 DEVELOPING AN ACTION PLAN.................................................................58
3.3.2: MEASUREMENTS, CONTROLS AND REPORTING.....................................58
3.3.3: KEY PERFORMANCE INDICATORS (KPIS)..................................................59
Group Activity / Pair Activity:10 (Practical assessment task)........................................60

3.4: DOCUMENTATION RELATING TO THE ACTION PLANS..............................60
3.4.1 Customer Acceptance Action Plan...................................................................60
4 TRACK AND MEASURE THE ACTION PLAN.................................................67
4.1: STAKEHOLDER’S MEASUREMENT TECHNIQUES.......................................67
4.1.1 MEASUREMENT TECHNIQUES (LEVELS OF MEASUREMENT)..............68
Group Activity / Pair Activity:11...................................................................................72
4.2: IDENTIFIED VARIANCES AGAINST ACTION PLAN.......................................72
4.2.1 Variance analysis..............................................................................................72
COMPARING ACTUAL PLANS VS. BUDGETED PLANS.......................................74
4.4: MEASUREMENT REPORT AND REVIEW RECORDS.....................................75
4.4.2 Managing electronic records............................................................................76
SELF ASSESSMENT...........................................................................................................78
Learner Evaluation Form...............................................................................................80

ACKNOWLEDGMENT
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This learning material has been entirely developed and organized by Bull’s Business
and Skills training institute (BBT Institute) under the supervision of Stability Training.
Many people have contributed in various ways to help develop and produce the
original version and the later edition of this manual. We wish to thank all those who
have contributed in one way or another.
We are heartily thankful to BBT and NSA agency and Stability Training employees,
family and friends, whose encouragement, guidance and support from the initial to
the final level enabled us to compile and have an understanding of this manual.
Lastly, we offer our regards and blessings to all of those who supported us in any
respect during the compilation of this Manual, especially sseta, for the practical
support and resources required to put up this manual.
Other sources
 National Department of Education

 South African Qualification Authority
 Department of Health
 UN South Africa
 NSA (Nsamba) consulting and training
 Wikipedia

PREFACE:ERROR: REFERENCE SOURCE NOT FOUNDERROR:

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This guide should be used to prepare the learner to be able to participate in the
knowledge and understanding of compliance to customer service requirements for a
specific workplace
In this manual, the knowledge and skills achieved will enable the learner to
maximally combat the processes involved in assessment and disseminate accurate
and relevant information regarding assessment procedures to achieve the Exit Level
Outcomes.
Welcome
Training Manager

1 INTRODUCTION
This Unit Standard provides a broad introduction to customer services and includes
both internal and external customers. The focus is knowledge, skills, values and
attitudes in relation to the learner's own context and experience of the world of work.
This unit standard is a core standard and forms part of the qualification, National
Diploma, and is registered at Level 5 on the National Qualifications Framework
(NQF). Learners working towards this standard will be learning towards the full
qualification, or will be working within a Marketing Environment, specialising in
either Marketing Communication, Marketing Management, Market Research or
Customer Management, where the acquisition of competence against this standard
will add value to one`s job.
This standard will also add value to learners who are starting their own business and
recognises that Marketing forms an integral component of any business.
The qualifying learner is capable of:
 Listening to and interpreting customer needs

 Describing action plans
 Implementing action plan to meet customers needs
 Tracking and measuring the action plan to its completion
LEARNING PROGRAMME OVERVIEW

Manage customer requirements and needs and implement action
plans
SAQA US UNIT STANDARD TITLE
ID
10053 Manage customer requirements and needs and implement action
plans
ORIGINATOR ORIGINATING PROVIDER
SGB Marketing
QUALITY ASSURING BODY
-
FIELD SUBFIELD
Field 03 - Business, Commerce and Marketing
Management Studies
ABET UNIT PRE-2009 NQF NQF LEVEL CREDITS
BAND STANDARD LEVEL

TYPE
Undefined Regular Level 5 New Level 8
Assignment Pend.
REGISTRATION REGISTRATION REGISTRATION SAQA
STATUS START DATE END DATE DECISION
NUMBER
Reregistered 2012-07-01 2015-06-30 SAQA
0695/12
LAST DATE FOR LAST DATE FOR ACHIEVEMENT
ENROLMENT
2016-06-30 2019-06-30
CRITICAL CROSS-FIELD OUTCOMES:ERROR: REFERENCE SOURCE

NOT FOUND
UNIT STANDARD CCFO IDENTIFYING
 Identify and solve problems related to the development and
implementation of an action plan to meet customer`s requirements and
needs.
UNIT STANDARD CCFO WORKING

 Work effectively with others to ensure the successful implementation of
the action plan to meet customer requirements and needs.
UNIT STANDARD CCFO ORGANISING

 Organise oneself and one`s activities so that alternative action plans
exist, in the event of current one`s being rejected or failing.
UNIT STANDARD CCFO COLLECTING

 Collect, evaluate, organise and critically evaluate information regarding
customer requirements and needs.
UNIT STANDARD CCFO SCIENCE

 Use science and technology to record the progress of the action plan and
the measurement of progress against this action plan.
UNIT STANDARD CCFO DEMONSTRATING

 Be culturally sensitive across a range of social context when listening to
and interpreting customer`s needs and requirements.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE
A demonstrated understanding of:
 A broad understanding of methods and techniques for developing and

implementing action plans.
 A general and broad understanding of methods and techniques for tracking
and measuring performance against an agreed plan of action.
2. ABOUT THE PROGRAMME
Based on the unit standard description and requirements, this learning unit is divided
into 4 Learning Modules with Specific outcomes sub-divisions, based on the exit
level outcomes and related assessment criteria: per specific outcomes of the unit
standard.
Learner Tip
The modular structure illustrated above will contain a grouping of

unit standards that pertains to the exit level outcome and related
assessment criteria.
2.1 LEARNER SUPPORT
Please remember that as the programme is outcomes based – this implies the
following:
 You are responsible for your own learning – make sure you manage your study,
practical, workplace and portfolio time responsibly.
 Learning activities are learner driven – make sure you use the Learner Guide
and Portfolio Guide in the manner intended, and are familiar with the Portfolio
requirements.
 The Facilitator is there to reasonably assist you during contact, practical and
workplace time of this programme – make sure that you have his/her contact
details.

3. ASSESSMENT
Learning Outcomes:
Please refer to the beginning of each module for the learning

outcomes that will be covered per module.
3.1 FORMATIVE ASSESSMENT
In each Learner Guide, several activities are spaced within the content to assist you
in understanding the material through application. Please make sure that you
complete ALL activities in the Learner Guide, whether it was done during the contact
session, or not!
3.2 SUMMATIVE ASSESSMENT
You will be required to complete a Portfolio of Evidence for summative assessment

purposes. A portfolio is a collection of different types of evidence relating to the work
being assessed. It can include a variety of work samples.
The Portfolio Guide will assist you in identifying the portfolio and evidence
requirements for final assessment purposes. You will be required to complete
Portfolio activities on your own time, using real life projects in your workplace
environment in preparing evidence towards your portfolio.
Portfolio Activity:
DO NOT WAIT until the end – the programme is designed to

assist you in evidence preparation as you go along – make use
of the opportunity!
Remember:
If it is not documented, it did not happen!
In some evidence, the process you followed is more important

than actual outcome / end-product.
Therefore …
Please make sure all steps for the Portfolio Activities are shown
where required.

4. NAVIGATING THE LEARNER GUIDE

4.1 USE OF ICONS
Throughout the learning programme icons are used to focus your attention on
important aspects of the learning programme. The following icons are used in this
learning programme to direct your attention in using at as a reference guide.
Group Activity / Pair Activity:
You will be required to complete an activity in your group or in pairs

with fellow colleagues / programme participants, and provide
feedback to the participants in a report back or presentation session.
Individual Activity:
You will be required to complete an activity on your own that relates

to the outcomes covered in the module.
Portfolio Activity:
Complete the assessment activity that will be assessed as part of

your Portfolio of Evidence for the particular module.
Self-Reflection:
Reflect on the question(s) asked to identify the relevance of learning

outcomes in your own working environment.
Learner Tip:
A useful tip or essential element regarding the concept under

discussion is given as a basis to further discussion.

Resources:
Possible sources for further research and study is listed under this
icon. Resources may include additional reading, hand-outs, web-
sites, multimedia
Facilitators Note:
Content matter that is critical to the understanding of the module.

The learner must pay careful attention to this section.
Mentored Discussion:
Refer to your Mentor or Workplace Supervisor to assist in this

activity, as they will conduct the assessment or sign off of the activity
once completed.
Learning Outcomes:
Please refer to the beginning of each module for the learning

outcomes that will be covered per module.
Self-Assessment:
You have come to the end of this module – please take the time to
review what you have learnt to date, and conduct a self-assessment
against the learning outcomes of this module
5. LEARNER ADMINISTRATION
Learner Tip:
The following Learner Administration is critical in assisting your

provider in managing this programme effectively.
Please take a moment to familiarize yourself with the requirements.

5.1 ATTENDANCE REGISTER
You are required to sign the Attendance Register every day of attendance. Please
make sure you sign daily!
5.2 LEARNER REGISTRATION FORM
Pease refer to the end of the Learner Guide for the Learner Registration Form. Make
sure you complete it using the Key Document, and submit to your Facilitator before
the end of the contact session with a copy of your ID document.
Learner Tip/Truths:
Without the Learner Registration and ID Documents we will not be

able to register you with SETA for certification purposes.
5.3 PROGRAMME EVALUATION FORM
At the end of the Learning Guide is a Learning programme Evaluation Form. Please
complete the form before the end of the contact sessions, as this
will assist us in improving our service and programme material.
Your assistance is highly appreciated!

NOTE TO LEARNERS17ERROR: REFERENCE SOURCE NOT

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Dear Learner,
Welcome to this Learning programme. We trust that this

Learning programme will be of great value to you during
your studies and in your New Venture as now a skilled
facilitator. To succeed in anything in life requires a lot of
hard work. It will be expected of you to work through this
study guide with a great deal of attention. It provides you
with information on how to work through the material; the
guide expresses exactly what will be expected of you and
what objectives you need to achieve during the study of
this Learning programme.
Emphasis
Complete your assignments with dedication and submit

them in time.
Complete the self-study sections for your own benefit. The

self-study sections provide you with the opportunity to
practice what you have learnt.
This Learning programme provides you with a step-by-step

method that you must apply to all Modules.

LEARNERERROR: REFERENCE SOURCE NOT FOUND’S CLASS ROOM

RULES
Dos Don’ts
Participate actively NO answering calls in class

Ask Questions for clarity
No eating or Drinking in class
Give constructive criticism No discrimination is allowed in
class
Maintain confidentiality Avoid unnecessary movement
in class
Have a pen and pencil at hand Unnecessary noise is
prohibited
Use the note pad provided for Do not steal other fellows
notes equipments
Keep your valuables safe
LEARNERERROR: REFERENCE SOURCE NOT FOUND’S MATERIALS

 Make sure you have the following before the commencement of the
lesson
 LearnerError: Reference source not found’s guide
 Pens and pencils
 Highlighter
 Name tag
 Ruler
 Note pad

US ID: 120310:
MANAGE CUSTOMER TO IMPROVE SERVICE DELIVERY
At the end of this unit standard, learners will be capable of;
1. Listening to and interpreting customer needs

2. Describing action plans
3. Implementing action plan to meet customers’ needs
4. Tracking and measuring the action plan to its completion
INTRODUCTION
A customer (also known as a client, buyer, or purchaser) is the recipient of

a good, service, product, or idea, obtained from a seller, vendor, or supplier for a
monetary or other valuable consideration. Customers are generally categorized into
two types:
 An intermediate customer or trade customer (more informally: "the trade")

who is a dealer that purchases goods for re-sale.
 An ultimate customer who does not in turn re-sell the things bought but
either passes them to the consumer or actually is the consumer.
A customer may or may not also be a consumer, but the two notions are distinct,
even though the terms are commonly confused. A customer purchases goods; a
consumer uses them. An ultimate customer may be a consumer as well, but just as
equally may have purchased items for someone else to consume. An intermediate
customer is not a consumer at all. The situation is somewhat complicated in that
ultimate customers of so-called industrial goods and services (who are entities such
as government bodies, manufacturers, and educational and medical institutions)
either themselves use up the goods and services that they buy, or incorporate them
into other finished products, and so are technically consumers, too. However, they
are rarely called that, but are rather called industrial customers or business-to-
business customers. Similarly, customers who buy services rather than goods are
rarely called consumers.
Customers are only satisfied if their requirements are consistently met. To be

competitive, we must meet these requirements in a timely and cost effective
manner. TQM provides the organizational focus and mind set, as well as specific tools
and techniques, to ensure meeting customer requirements, first time and every time.

A key principle of TQM is intense focus on customers and their satisfaction. What does
this mean and how do we go about accomplishing it? We can use three principles in
creating this focus.
CUSTOMER FOCUS
First, identify measure and "design in" the product and service attributes that the
customer cares about. How do we know what these attributes are? As a start, we can
certainly ask the customer. However, this is only a start. Organizations which have
become adept at TQM are able to go well beyond asking the customer to anticipating the
future needs and desires of their customers.
Second, we must continually monitor customer satisfaction. The only determination of

"quality" that really matters is the customer's perception. Customer feedback and
participation in the process is essential. Formal and continuous monitoring will keep the
organization focused.
Third, management must make sure that everybody knows their customers, both internal
and external. Further, it is essential that everybody can "see" the ultimate customer
using their products and services. Employees at all levels of the organization should be
given opportunities to observe the customer using their products and services. All
employees should understand how each process used in producing products and
services adds value for the customer.
If these three principles are understood and applied at all levels of the organization, the
customer focus will be pervasive.

1: LISTEN TO AND INTERPRET CUSTOMER NEEDS
INTRODUCTION
A. WHO IS THE CUSTOMER?
Customers for an information system are many and varied. They include, of course,
those individuals who directly use the system to perform their work tasks. These are the
"users," and are normally easy to identify. For example, clerks in the Personnel and
Accounting departments are users of a Payroll System. For TQM purposes, all users
are customers.
Those in management who authorize, request, budget and approve information systems
are customers. Without their participation, there would be no systems work to
perform. These individuals are most often different from the users of the system. Many
levels of management may need to review and approve the decision to implement a new

Payroll System, and while they may never interact directly with the system, they certainly
have requirements.
Many customers may receive outputs from an information system. These are indirect
customers, and they may have very specific requirements. Employees receive their pay
checks from a Payroll System. Government agencies have requirements for a Payroll
System, as do banks, auditors and providers of employee benefits, to name just a few.
Those individuals who must operate and maintain a system are also customers and
have specific requirements. These are internal customers whose requirements must be
met if they, in turn, are to meet the requirements of their customers. The computer
operator must be able to accurately print pay checks and payroll reports if the
requirements of users and employees are to be met. Likewise, the maintenance
programme must be able to implement necessary changes over time if the Payroll
System is to continue to meet the needs of other customers.
Once you have established a rapport or a connection with your customer the next
step is to find information about their needs and wants. To do this you must have
well-developed communication skills. Good communication comes from the effective
use of questioning, combined with active listening and positive body language.
Using effective questioning techniques puts your customer at ease and

demonstrates that you care about what they need and want, and also that you are
prepared to take the time to assist them. Open questions enable you find out a large
amount of information with a few questions. Closed questions are used to gather
specific information about what the customer wants as they usually require one word
answers. Reflective questions are asked to clarify what the customer has said, and
to ensure that the message was understood.
 Open questions gather information

 Closed questions get the sale
 Reflective questions clarify information
B. WHAT ARE THE CUSTOMER'S REQUIREMENTS?
This is the area which often presents an insurmountable hurdle to implementing TQM in
Information Systems. Defining customer requirements is usually the most difficult task
we face.
How can professionals be expected to meet customer requirements, first time and every
time, when no one, including the customers, knows exactly what these requirements
are? Many systems development professionals believe that TQM simply cannot apply to
them. They never develop exactly the same system twice. They believe that "Zero
Defects" is totally unrealistic.


1.1: INTERPRETATION OF CUSTOMER'S NEEDS.
1.1.1: UNDERSTAND AND PREDICT CUSTOMER NEEDS
Understanding customer needs is critical in developing successful new

products. Customer Needs Assessments help companies explore and understand
customer related issues, challenges, and needs. And, more importantly, it allows us
to help you anticipate future challenges and needs; ultimately giving your company
an edge over the competition.
Through customized surveys, in-depth interviews – we tap into your customer

gaining a keen perspective and understanding of their experience, needs,
challenges, likes and dislikes, and so much more.
This feedback can be used to drive the development of new technical solutions or to
guide other strategic marketing decisions.
A Customer Needs Assessment can provide marketers with insight regarding:
 Where challenges or needs exist

 Current problems and whether they are expected to increase, decrease, or
stay the same in the future
 The direct and indirect costs of failures
 Which processes or products currently used are the most successful and why
 Obtain reactions to a new product or solution
 Anticipate future challenges or needs
1.1.2 A GUIDE TO ASKING QUESTIONS
 Start with broad questions and move toward specific questions. Broad, open
ended questions are less threatening than narrow, specific questions.
 Listen to everything the customer says.
 Keep questions simple and focused. Use one idea at a time.
 Ask sensitive questions in a non-threatening way, e.g. “How much were you
planning to spend?” not, “How much can you afford?” If you must ask a very
personal question, always explain why.
 Ask questions that are easy to answer! Studies show that people would rather
answer a question when they agree than voice their objections.

 Turn statements your customer makes into questions to clarify or reinforce

understanding, e.g. “So, Tuesday night would be best for you, is that correct?”
 Use questions to develop your approach, for example, with a car sale, “You
mentioned that your present car needs repairs. What type of repairs does it
need?” Explain the advantages of a new car.
 Use caution when leading customers with questions. Always respect the
intelligence of your customer.
 Use questions to give information. “Are you aware of our customer loyalty
card?”
1.1.3 ACTIVE LISTENING
Active listening and good questioning techniques complement each other. If you are
not listening properly and taking in all the information offered to you by the customer,
not only has the communication process broken down, but you stand to lose your
sale.
Remember these rules:
 Keep eye contact with the customer.

 Do not interrupt. Nod or acknowledge, demonstrating you are listening.
 Do not presume you know what the customer wants or is going to say.
 Always repeat back to the customer their key phrases. This is called
paraphrasing, i.e, saying in your own words what you think the other person is
saying. This process not only clarifies what the customer is wanting but
demonstrates your sincerity.
1.1.4 CUSTOMER LOYALTY
Customer loyalty is the degree to which customers will patronize your business and
your business alone because you've developed or created an emotional bond with
them. You've gone beyond their expectations and addressed something more innate
- their emotional needs as a consumer.
 Customers have come to expect fast, friendly service.

 They expect to get an answer to their questions.
 They expect you'll answer their call promptly and return their messages.
Do those things well and you'll be in the game.
Research shows customers are willing to accept some failure in terms of these
expectations. Fail continuously and that's a different story. This is the "ambivalence"
part of the model. Next time they need your product or service they may, if it's
convenient, patronize your business. But they won't seek out your business

purposefully. To do that, they must be delighted with your service. They must be so
impressed with your service that they become a dedicated follower.
Schneider and Bowen refer to these customers as "apostles". They will sing the
praises of your business to friends, family and co-workers.
At the other end of the spectrum it's possible to so utterly offend the basic needs of
your customers that they'll willfully take every opportunity to sabotage your business.
They become a terrorist according to Benjamin and Bowen. They'll tell every person
who'll listen about the time your business, yada dada yada. Each time, they're likely
to embellish the story.
So what creates such an extreme emotional reaction to service in some customers?

According to Schneider and Bowen these reactions occur when you surpass the
needs of a customer (delight) or you offend those needs. Not just fail to meet them -
you (in the mind of the customer) intentionally deprived them of those needs.
What are these powerful dynamics?
1. Deprived of equity / justice

2. Lack of respect
1. Deprived of equity / justice
Customers want to be treated fairly. They want to know that the service and product
they receive is as good as that received by any other customer. Consider a study
done by a consumer advocate group. They asked samples of airline passengers
from numerous airports what they'd paid for their ticket. They found less than 10% of
passengers paid the same price for their ticket even though they flew from the same
city. The results incited outrage among travellers who saw no justification for paying
more, when they had received the same seating and service.
Equity and justice means making customers feel they're getting a comparable
service and product at a fair price. It also means problems are resolved to their
satisfaction and that companies consider the cost of the customer's time and
inconvenience when making amends.
2. Lack of respect
Nothing is more basic and elementary to effective service than the need for
customers to feel respected. In fact, studies show merely respecting customers does
not distinguish your business or service. That's because customers expect it. It's
when they perceive a lack of respect that things get volatile.
For example:

Rachael brought her car into a repair shop to get new tires put on. After looking the
vehicle over the mechanic recommended new brakes. Rachael was puzzled since
she hadn't noticed any problem with the brakes. In fact, she had gotten it inspected
just two months earlier. "Well they don't look 'em over the way we do." He rattled off
some automotive terms to convince her. Rachael was still hesitant. "Why don't we
call your husband," he said. With that Rachael told him to put the tires back on her
vehicle - she'd be taking her business elsewhere.
Respect means treating customers the same - regardless of gender, race or age. It
means listening to the customer's problem and responding in an empathic tone. It
means your non-verbal behaviour demonstrates concern and attentiveness.
When it comes to service, clearly understand what it is your customers want, expect
and need and shape your people and processes to deliver a level of service which
reflects these.
Group Activity / Pair Activity:1
1. Define and explain the term customer.

2. Identify methods that can be used to measure
customer satisfaction.
3. Describe the steps that can be taken to measure and to
determine customer royalty.
4. Carry out a research on the way how you can
measures that customers are satisfied and present
your findings in form of a report. Your report should
include;
a) Winning customer loyalty.
b) Satisfying customer needs and wants.
c) Marketing mix used in marketing.
d) Promotional tools used in marketing
1.2: CUSTOMERS NEEDS
In most companies, feature prioritization does have a basis in customer needs and
requirements, but this information is typically collected rather anecdotally from a
small number of customers and then extrapolated to apply across the larger
customer base. Along with this information though, a lot of what is prioritized is
based on the “decibel factor” of various parties involved in the process. This could be
a very loud customer demanding an enhancement be made, or a loud salesperson
complaining that a big deal is possible if only certain features are added, or a loud
development manager refusing to add something because it is not a good use of the
engineers’ time.
The problem is that without good analytic information, it is very difficult for product
managers to defend any given prioritization, and whatever work the product manager
has done can be pushed aside to make way for other deciding factors (like soothing
loud and annoying customers). The question is how to create a scalable, repeatable
and efficient process for getting the analytic data to support feature prioritization.
1.2.1 PRIORITISE CUSTOMERS NEEDS
Every organization has to do it: Decide which customers and projects have the
highest priority and get the most resources. For some it is a matter of necessity;
there's just not enough time, people or other resources to support each customer
equally. Some customers are just "needier" (meaning "high maintenance") than
others and want more attention and interaction. Other customers may have
actionable items critical to their organizations, and when they call you need to
respond yesterday with everything you have available.
Customers enable you to pay the bills, keep the lights on and grow the business, so
realistically every organization has to decide where its limited resources are of best
use (meaning make the most money). Organizations need to be careful that they
don't miss opportunities for revenue, profits and referrals by oversimplifying how
customers are prioritized.
In any kind of business there will be

customers deserving extra effort to be
kept happy. The trick is to figure out
which ones they are.
Some options for prioritizing customers

include by:
 Sales volume (dollars or units)

 Gross margin on sales
 Length of established relationship ("They've been with us a long time")
The length of a relationship with a customer is an important element in decision-

making and priorities. The life of the relationship with a smaller annual sales volume
may be much more valuable than a large one-hit-wonder sale that produced little
profit after deep discounts.

If you are setting priorities for clients (or prospects) in which to invest your limited
resources, you need more than a single criterion to go by. In addition to the three
above, you should look at a bigger picture that often extends beyond direct sales to a
customer:
 Length of relationship: including lifetime sales and profits

 Annual sales and profits
 Profit margin on each sale and total sales
 Terms and speed of payment
 Referrals and references: pipeline to new customers
 Maintenance level: easy interactions (low need for attention) to high
maintenance (high need to make sales and follow up)
 Credibility of the client: Some clients are worth the time, effort and
investment because of their influence on other buyers, connections to the
community and reputations. Some can make (or break) your business.
Underlying the decision to prioritize your use of resources in client relationships is a

need to do what is best for your business. Every client is important and should be
appreciated and respected if you want to keep them. Taking clients for granted or
giving them less respect because they aren't your top priority is a fast way to lose
customers -- the high-maintenance ones and the good ones.
While every customer is not created equal and logically can't get the same time and
attention, developing the ability to control the use of resources with less-profitable
customers to maintain an effective relationship is critical to keeping your reputation
and profitability. Never make assumptions about the "little guy" who isn't buying
much. Invest a bit of time to understand that customer and see if there is potential to
grow the relationship. Invest time and resources on a controlled basis to keep in
touch, understand how your customers are changing and ensure the customer
knows what you have to offer.
The bottom line to improve your organization? Have a clear financial and operational
picture of the activities, expenses and investments being made into each customer.
If you don't know if a customer contributes to your profitability (or costs you money),
you can't know where to spend your resources. To improve your financial position
and compete in the marketplace, know your customers. Understand what each
contributes to your organization, including directly through purchases, indirectly
through referrals and over the life of a relationship. Every customer is important;
make sure they know it ... but not at the expense of your bottom line.
1.2.2 PRIORITIZATION
Prioritization is the essential skill you need to make the very best use of your own
efforts and those of your team. It's also a skill that you need to create calmness and
space in your life so that you can focus your energy and attention on the things that
really matter.
It is particularly important when time is limited and demands are seemingly unlimited.
It helps you to allocate your time where it is most-needed and most wisely spent,

freeing you and your team up from less important tasks that can be attended to later.
or quietly dropped.
With good prioritization (and careful management of deprioritized tasks) you can
bring order to chaos, massively reduce stress, and move towards a successful
conclusion. Without it, you'll flounder around, drowning in competing demands.
1.2.3 SIMPLE PRIORITIZATION
At a simple level, you can prioritize based on time constraints, on the potential
profitability or benefit of the task you're facing, or on the pressure you're under to
complete a job:
 Prioritization based on project value or profitability is probably the most

commonly-used and rational basis for prioritization. Whether this is based on
a subjective guess at value or a sophisticated financial evaluation, it often
gives the most efficient results.
 Time constraints are important where other people are depending on you to
complete a task, and particularly where this task is on the critical path of an
important project. Here, a small amount of your own effort can go a very long
way.
 And it's a brave (and maybe foolish) person who resists his or her boss's
pressure to complete a task, when that pressure is reasonable and legitimate.
1.2.4 PRIORITIZATION TOOLS
While these simple approaches to prioritization suit many situations, there are plenty
of special cases where you'll need other tools if you're going to be truly effective. We
look at some of these below:
PAIRED COMPARISON ANALYSIS
Paired Comparison Analysis is most useful where decision criteria are vague,
subjective or inconsistent. It helps you prioritize options by asking you to compare
each item on a list with all other items on the list individually. By deciding in each
case which of the two is most important, you can consolidate results to get a
prioritized list.
GRID ANALYSIS
Grid Analysis helps you prioritize a list of tasks where you need to take many
different factors into consideration.

THE ACTION PRIORITY MATRIX
This quick and simple diagramming technique asks you to plot the value of the task
against the effort it will consume.
By doing this you can quickly spot the "quick wins" which will give you the greatest
rewards in the shortest possible time, and avoid the "hard slogs" which soak up time
for little eventual reward. This is an ingenious approach for making highly efficient
prioritization decisions.
THE URGENT/IMPORTANT MATRIX
Similar to the Action Priority Matrix, this technique asks you to think about whether
tasks are urgent or important.
Frequently, seemingly urgent tasks actually aren't that important. And often, really
important activities (like working towards your life goals) just aren't that urgent. This
approach helps you cut through this..
THE ANSOFF MATRIX AND THE BOSTON MATRICES
These give you quick "rules of thumb" for prioritizing the opportunities open to you.
The Ansoff Matrix helps you evaluate and prioritize opportunities by risk. The Boston
Matrix does a similar job, helping you prioritize opportunities based on the
attractiveness of a market and your ability to take advantage of it.
PARETO ANALYSIS
Where you're facing a flurry of problems needing to be solved, Pareto Analysis helps
you identify the most important changes to make.
It firstly asks you to group together the different types of problem you face, and then asks you
to count the number of cases of each type of problem. By prioritizing the most common type
of problem, you can focus your efforts on resolving it. This clears time to focus on the next
set of problems, and so on.
1. Describe a need to prioritise customer’s needs and wants and

show how customer prioritises can be done effectively.
2. Identify challenges that are likely to be meant in trying to
establish customer satisfaction.
3. Describe the tools that can be used to prioritise customer’s
needs and wants.
4. Carry out a research on the measures that can be put in place
to ensure that customer royalty is maintained and suggest

ways of protecting a business from outside competitors.

1.3 METHODS OF LISTENING TO A CUSTOMER

1.3.1 LISTENING TO YOUR CUSTOMERS
Easy enough to grasp. But how do you actually get started? "Research firm TARP
has found that for every person who complains, there are 26 who do not. That
means if 10 customers complain, another 260 may have quietly dumped you, never
to call again. To know what customers are thinking, ask them
Then it comes to customer feedback, there's one reality that will never change: if you
want to know what your customers think about
your products or services, you simply have to
ask them. But how you ask, listen and respond
isn't quite so simple.
That's because one company's method for

gathering reliable information it can use to
become more successful can easily be
another's pitfall. And tailoring the right system
for effectively listening to your customers
depends on a variety of factors, such as how
many clients you have, who they are, whether
your company is bricks-and-mortar or online
and what resources are at your disposal to
collect, analyze and implement feedback.
Choose the wrong strategy—or, even worse, no strategy—for your feedback loop,
and you'll not only waste your customers' time, you'll waste your own while burning
through valuable resources faster than you can say, "Are you happy with our
service?"
1.3.2 WHY GATHER CUSTOMER FEEDBACK?
"It's so important for business owners, especially those who run small to mid-sized
firms, to make decisions that are in line with their customers' needs," says Jeff
Mowatt, a Calgary-based customer service strategist and the author of Becoming a
Service Icon in 90 Minutes a Month. New technologies are empowering customers,
giving them more access to information, reach to communicate and choices, which
means they're quicker to leave if they're unhappy. That makes gathering client
feedback more crucial for your company's longevity than ever before.
"Your customers are in the know," says Mowatt. "Without talking to them, you could
be spending all the time and money in the world on current business processes that
are already obsolete."

Compound that situation with the fact that the average "wronged customer" will tell
eight to l6 people about it— and more than 20% will tell at least 20—according to
Lee Resource International Inc., and it's obvious: gathering (and responding to)
feedback can create a significant competitive advantage for your business.
Some entrepreneurs—whether it's because they don't have adequate customer

relationship management systems, lack the resources to do it well or operate in a
"silo"—are undoubtedly bad at listening to their customers. But many business
owners are proactively developing sound strategies that allow them to enable better
communication with their customers. Methods for collecting and listening to
customers can range from online and phone surveys to focus groups, face-to-face
meetings and active social networking.
Deciding on the kind of feedback mechanism that's really going to help your
business can be tricky. And since gathering feedback should be constant, not a one-
off, it's important to develop a solid strategy for doing so in the most efficient way
possible. "There isn't any one method that's the best," says Mowatt. "You have to
decide why you are gathering the feedback in the first place and what's going to get
you the most required information for the least amount of time and money."
1.3.3 MAKE YOUR CUSTOMERS FEEL SERVED
The controversy over whether Statistics Canada's long-form census should be

mandatory serves as evidence that people generally dislike filling out forms,
especially when they're long and cumbersome. So why, then, do so many
companies rely on surveys to gather feedback from their customers? "Sending a
survey over email is the cheapest way to solicit feedback, but it also garners some of
the lowest responses," says Mowatt. "People don't want to fill out a form. They want
to talk to a human."
1.3.4 THE BEST METHODS FOR LISTENING TO THE CUSTOMER
Telephone Surveys
Customer service and sales

professionals quickly learn important
communication skills.
Although recruiters emphasize the

importance of communication skills in
almost every professional position, some
jobs both capitalize on an employee's
existing skills and teach critical
communication concepts. From
effectively delivering information to
actively listening and accurately
interpreting feedback, communication skills can account for as much as half of all
responsibilities in some jobs.
1.3.5 CUSTOMER SERVICE
Customer service agents bear a tremendous amount of responsibility for

representing their employer, often to upset or unhappy patrons. To most effectively
handle customer inquiries, service representatives must employ a broad array of
communication skills. According to the management website Business Know How,
customer service agents must actively engage in listening, a critical --- and
somewhat difficult to master --- component of communication. In addition, customer
service agents must master the art of verbalizing a synopsis of the customer
concerns and how the organization intends to respond. Many organizations provide
communication training for new customer service employees, and frequent use on
the job can help successful customer service representatives become
communication masters.
A telephone survey is a basic way to randomly select and carry out customer
surveys. The sample generated can be generalized to an entire target population. A
great example of this is if you want to carry out a survey of customers who have
bought or have viewed a newly-launched product.
A standard questionnaire should be prepared and the interviewer makes phone calls
to the customers and record the data on the basis of the information provided.
The data collected is very useful, but this method is expensive. Its success depends
upon the accuracy of the questionnaire prepared. It will take a couple of weeks to get
the information from the select group. The questions should be asked in a similar
manner, the question wording should be the same and all the responses should be
categorized.
1.3.6 MAIL SURVEYS
Mail surveys can also provide companies with a substantial amount of data - and at
a much lower cost than that on telephone surveys. However, mail surveys have a
low response rate and can take quite a few months to complete. The lower the rate
of response, the lower the reliability of the survey.
If you decide to do follow up with new letters and questionnaires, it will add on to the
cost. A response rate of fifty percent is the lowest rate acceptable.
Focus Groups: In-Person
In the in-person focus group is a discussion carried out among 15-20 people who are
lead by a moderator with a detailed discussion in the area on which information
needs to be collected. The group cannot be generalized to the larger population, but

a vast amount of data can be collected. Effective visual aids can be used for
communication.
The discussion group can come up with the reasons for customer dissatisfaction and
possible solutions to the problem. There are travelling costs of participants, charges
on the location and so on to contend with. The entire process typically takes a week
or two for preparation of guidelines and recruiting participants.
The downside, though, is that the participants can be used again at a later date.
Focus Groups: Online
Online groups are similar to in-person focus groups. The difference is that the
discussion takes place on the Internet, saving companies looking to implement Six
Sigma the cost of getting participants to the interview site. Online focus groups are
more suited for younger age groups, as they are usually very comfortable with online
chats than individuals above age 40.
One on One Interview
If your company is implementing Six Sigma, then one-on-one interviews allow you to
get detailed information that cannot be achieved from a survey - even though it
cannot be generalized to the larger population. When you require information from
people like CEOs, Doctors and celebrities, it is impossible to get a large group
together in a meeting at the same time.

However, busy, important people like the ones above can fit interviews into their
schedules. The cost involved is lower, though some costs may have to be incurred
by both the interviewees and the interviewers.
Intercepts
Intercepts involve getting information from people at public locations like stores,
malls or theatres. Often, the information received is of the utmost importance.
This information is generalized to a specific target group, such as women with infants
who may be asked about a certain baby food. Additionally, it will be specific to that
day, as well as the location.
User Testing
Six Sigma user testing involves having the individuals use the company’s product
while they are being observed. Alternatively, they may be made to log that data in a

diary or a sheet for a period of time. This helps the company to understand if the
user finds any difficulties in using the product.
The company website will also be checked in this manner. The amount of time taken
to do this will vary depending on the product.
Customer Complaints
This is one way of obtaining data that will give you an idea of the problem area, but it
will not necessarily be qualitative. The cost involved is low. The complaints have to
be monitored and tabulated as they come in, providing a general idea of the
situation.
1. List down and explain the methods that can be used when
listening to the customers and suggest measures that can be
used to improve on listening skills.
2. Demonstrate an understanding of the importance of listening
to your customers and show how this can be done if best
results are to be achieved.
3. Show how customer feedback can be done effectively and
make an effort to design a checklist showing items that needs
to be addressed.

2: DESCRIBE ACTION PLAN
A. ACTION PLAN
A sequence of steps that must be taken, or activities that must be performed well, for
a strategy to succeed. An action plan has three major elements (1) Specific tasks:
what will be done and by whom. (2) Time horizon: when will it be done?
(3) Resource allocation: what specific funds are available for specific activities?
Action planning is a process which will help you to focus your ideas and to
decide what steps you need to take to achieve particular goals that you may
have. It is a statement of what you want to achieve over a given period of time.
Preparing an action plan is a good way to help you to reach your objectives in life:
don't worry about the future, start planning for it!
Action Plan
B DO’S /(OR NOT DO)
Having worked your way through the other steps it should now be possible to
establish an action plan in order to move forward. The action plan will be defined

based on the test results, the internal ambitions of the organisation, as well as the
strengths and weaknesses that have been identified.
Typically, your scenario planning activity fits neatly in the overlap between
organisational strategy, environmental analysis (your PESTLE) and more definite
elements of forecasting (such as planned student numbers or likely grant
allocations), although there may be less obvious connection with these if using the
technique for a more localised issue or project.
2.1: ACTION PLAN WITH ALL STAKEHOLDERS.
Stakeholder may refer to:
Stakeholder (corporate), a person, group, organization, member or system that

affects or can be affected by an organization's actions
 Stakeholder, an entity that can be affected by the results of that in which they
are said to be stakeholders, i.e., that in which they have a stake.
 Project stakeholder, a person, group or organization with an interest in a
project
 Stakeholder theory, a theory that identifies and models the groups which are
stakeholders of a corporation or project
 Stakeholder analysis, the process of identifying those affected by a project or

event
 Stakeholder (law), a third party who temporarily holds money or property while
its owner is still being determined
2.1.1 IDENTIFYING STAKEHOLDERS
Stakeholders can be defined as people or organizations that are concerned about,

affected by, have a vested interest in, or are involved in some way with the issue at
hand.
Key questions
NOTE: In exploring the questions below, think about the various issues you already
know are critical for your city, such as education, environment, jobs, health, and
public safety. Then consider which groups within your city have a stake in those
issues.
 Who has a stake (positive or negative) in the critical issues affecting your
community? In service and volunteering in your city?

 Who is most affected by the problems or issues affecting your city? Who is
concerned? Who may have different views?
 In relation to the issues or problems, who are the opinion leaders in the
community?
 Who is best able to help solve the problem or resolve the issue?
 Is there a person who could “champion” the project for us?

Helpful Hints for Identifying Stakeholders
 Stakeholders may include:
a) community groups
b) industry or business associations
c) environmental groups
d) local councils
e) government departments
f) public and private schools/school systems
g) colleges, universities, and trade schools
h) youth groups
i) senior citizens’ groups
j) politicians
k) residents
 Intermediary community groups, identified during the capacity-building

segment, can help identify a broad pool of stakeholders.
 Online resources, such as Guide Star and the National Human Service

Assembly can help you identify your local nonprofits organizations.
 Stakeholders can be identified through basic online searches or even by

looking through the yellow pages.
 Ensure that stakeholders represent your targeted groups. Targeted groups

are those you identified through the key questions above.
2.1.2 WORKING WITH STAKEHOLDERS
To successfully work with stakeholders, you will need to answer the following
questions:
 What do the stakeholders know, feel, want, believe, and value in relation to
the problem or issue?
 What are the threats, risks, costs, and benefits for the stakeholders?
 Who are the community opinion leaders for groups within your stakeholder
network?
 What are stakeholders’ main concerns about the issues? What are the
differences in the stakeholders’ concerns about issues? What are the areas of
common ground and benefits for various stakeholder groups?
 What roles do you want stakeholders to play, or what types of involvement do

you want stakeholders to have in the initiative?
2.1.3 INVOLVING STAKEHOLDERS
 Stakeholders may be involved through:
a) Steering or advisory committees - groups that guide the work of the

initiative, usually comprised of working group chairs.
b) Working groups - groups with responsibility for specific aspects of the

work, e.g. assessing community needs and priorities.
c) Surveys – provide an opportunity to reach very large segments of the

community, while requiring limited commitment.
d) Newsletters – provide a mechanism for keeping constituents informed;

they should include a feedback mechanism.
e) Personal meetings – may be used by project managers to engage

opinion leaders or by intermediary community groups to engage
citizens at the community level.
 Identify the key players or main stakeholders to fill specific positions within the
project. Designate in advance some of the potential positions you want these
key players to fill.
 Make stakeholders your allies. Set up your project as a partnership with the
key stakeholders. You can do this in a variety of ways, from keeping the
stakeholders involved in every step of the process as a partner to simply
ensuring that they are kept informed and given the opportunity to comment.
Group Activity / Pair Activity: 4
1. Describe the significance of an action plan to the

business that is striving to achieve the best results.
2. List down the nature and the types of stakeholders that
need to be involved in business affairs.
3. Demonstrate an understanding of the importance of the

degree of involvement of stakeholders in the business
affairs.
4. Identify factors that might result into conflicts with
stakeholders.
5. Suggest ways of avoiding such conflicts in business.

2.2: COMMUNICATING AN ACTION PLAN

2.2.1 HOW DO YOU COMMUNICATE TO GET WORKPLACE CHANGE?
Make internal communications a key element in any strategic plan requiring people
to behave differently. The need for different behavior may come from a realization,
for example, that service teams are not providing the results that customers value.
Or, it may result from a strategic shift where certain employees have new
responsibility to deliver a strengthened promise of value.
In any case, organizations should think “program and process” as they map out their
internal communication effort. And while the effectiveness of your communications
will depend, to a large extent, on the power of the content, the real magic will come
from effective frequency and timing of the messages.
To be effective, internal communication should be tackled like any other

organizational task, with a defined process and according to a relatively rigid
execution schedule.
2.2.2 THE THREE-STEP STAGING PROCESS
In many companies, internal communication plans are a loose collection of

seemingly random communication activities. There will be a video here, an email
there, perhaps a memo to all hands, an informal employee survey, or a town hall
meeting. But while these activities are indeed the activities of internal
communications, results occur when these events are staged according to a simple,
three-step plan.
Stage 1: Creating A State Of Awareness
In any organization, absence of communication creates a crippling environment.

When there is an information void, employees make up their own. And their version
is usually much worse than the truth.
So, in this stage, employees are given their wakeup call. The focus is on making
everyone aware of exactly what is about to be implemented, with some high level
commentary on why it is important. It’s a good time for sensitive bluntness.
Critical messages should be delivered by a single voice – the leader of the executive
team. Employees need to know that what they are hearing comes from
management’s top rung.
It’s important to remember that employees respond positively to truthfulness and

candor. They don’t usually respond at all to what they perceive as corporate hype or
management puffery. You just want them to become aware of what’s going to
happen and why. In each of these stages, use your full arsenal of communication
instruments: the written word, creative innovations, videos, e-mail, the intranet, face
time, and unique ideas like conversation pits to spread awareness.
Hold focus groups and conduct formal employee surveys to determine if people are
getting this first stage message. While “cascading” the information downward, from
senior executives, to mid-level managers, and finally throughout the entire
organization, keep in mind that important feedback must have a path back up the
corporate mountain.
Stage 2: Building An Informed Workplace
At this stage, employees need to understand why change is necessary and how
everyone will get to the same place at the same time. Inform and educate employees
as to the breadth and depth of the change. Tackle the tough cultural issues and don’t
downplay how difficult and demanding the change will be. Be very clear as to what’s
expected of each employee. It’s time for the tough content.
Use similar communication tools as in Stage #1, but demand that management
become even more involved in the cascade and feedback processes. Managers
should observe and take part in focus groups and review employee survey results.
Face time becomes extremely important because anxiety will be everywhere.
Rumors will spawn and multiply at warp speed if they aren’t preempted. Keep in
mind that one employee’s perception can quickly become a co-workers truth. Have a
strict schedule and stick to it. Its tightness speaks to the urgency of the entire effort.
Stage 3: Achieving Workforce Commitment
There is an obvious intensity to the communication cascade. It’s reached the point
where commitment is everything. Those who aren’t comfortable or haven’t been able
to adapt to the demands for change will need to be provided with alternatives. The
organization’s leaders are everywhere, visible, energized, and supportive of those
who have climbed on board. Management needs to be engaged heavily in this final
stage.
2.2.3 IMPLEMENTATION GUIDELINES
While the three-step staging process frames the internal communication campaign,
the power is in the implementation. Following are five guidelines to help ensure your
message is being heard loud and clear through the clutter.
Speak With Clarity
Avoid confusion by leaving no room for misinterpretation of your messages. Speak

with a clear voice. Keep communication simple, and don’t attempt to pack everything
into a single communication effort. At the awareness stage, your success will result
from how well you are able to distil your communication into two or three well
articulated and clearly defined thoughts. Avoid the “rah-rah” syndrome. Employees
will rally around the organization’s leadership once they understand what’s expected

of them. Spend time with managers “one on one” and assure that each understands
the message the way you meant it to be understood. Take the time to be sure.
Be Consistent
Employee survey data shows that the leadership team and management need to
speak with a single voice. Don’t allow your communications to wander. Speak and
act as one. Never waver. Avoid signs that can be interpreted by employees as a lack
of commitment or understanding of the program. If you aren’t certain of the answer to
a question, don’t shoot from the hip. Gather your forces, and develop a collective
response. Any mid-stream changes in the roadmap need to be articulated as such,
and the workforce needs to understand why the change is warranted. You don’t want
employees wondering about the competency of their leaders when much is being
asked of them. Keep in mind that you communicate in both word and in deed.
Employees are watching and taking their cues from both.
Communicate Constantly
Internal communication needs to be relentless and repetitive. Never assume that

everyone in the workforce knows and understands. Keep the cascade cascading and
repeat the key ideas and critical elements, and repeat them and then, repeat them
again. The constant nature of your communication will be a visible sign that change
is underway. Constant communication will be part of your emerging workplace
culture.
Communication is an ongoing activity for any organization that serves, depends

upon, or is in any way connected with the community. The purpose, audience,
message, and channels may change, but the need to maintain relationships with the
media and with key people in the community remain. As a result, an important part
of any communication plan is to continue using and revising your plan, based on
your experience, throughout the existence of your organization.
Why should you develop a plan for communication?
 A plan will make it possible to target your communication accurately. It gives

you a structure to determine whom you need to reach and how.
 A plan can be long-term, helping you map out how to raise your profile and
refine your image in the community over time.
 A plan will make your communication efforts more efficient, effective, and
lasting.
 A plan makes everything easier. If you spend some time planning at the
beginning of an effort, you can save a great deal of time later on, because you
know exactly what you should be doing at any point in the process.

When should you develop a plan for communication?
As soon as your organization begins planning its objectives and activities, you
should also begin planning ways to communicate them; successful communication is
an ongoing process, not a one-time event.
Communication is useful at all points in your organization's development - it can

help get the word out about a new organization, renew interest in a long-standing
program, or help attract new funding sources.
2.2.4 HOW DO YOU DEVELOP A PLAN FOR COMMUNICATION?
One way to look at planning for communication is as an eight-step process. The

steps are:
 Identify the purpose of your communication

 Identify your audience
 Plan and design your message
 Consider your resources
 Plan for obstacles and emergencies
 Strategize how you’ll connect with the media and others who can help you
spread your message
 Create an action plan
 Decide how you’ll evaluate your plan and adjust it, based on the results of
carrying it out
1. Identify your purpose.
What you might want to say depends on what you’re trying to accomplish with your
communication strategy. You might be concerned with one or a combination of the
following:
 Becoming known, or better known, in the community

 Educating the public about the issue your organization addresses
 Recruiting program participants or beneficiaries
 Recruiting volunteers to help with your work

 Rallying supporters or the general public to action for your cause
 Announcing events
 Celebrating honours or victories
 Raising money to fund your work
 Countering the arguments, mistakes, or, occasionally, the lies or

misrepresentations of those opposed to your work.
 Dealing with an organizational crisis that’s public knowledge – a staff member

who commits a crime, for example, or a lawsuit aimed at the organization.
2. Identify your audience. Who are you trying to reach? Knowing who your
audience is makes it possible to plan your communication logically. You’ll need
different messages for different groups, and you’ll need different channels and
methods to reach each of those groups.
There are many different ways to think about your audience and the ways they could
best be contacted. First, there’s the question of what group(s) you’ll focus on. You
can group people according to a number of characteristics:
 Demographics. Demographics are simply basic statistical information about

people, such as gender, age, ethnic and racial background, income, etc.
 Geography. You might want to focus on a whole town or region, on one or
more neighbourhoods, or on people who live near a particular geographic or
man-made feature.
 Employment. You may be interested in people in a particular line of work, or

in people who are unemployed.
 Health. Your concern might be with people at risk for or experiencing a

particular condition – high blood pressure, perhaps, or diabetes – or you might
be levelling a health promotion effort – “Eat healthy, exercise regularly” – at
the whole community.
 Behavior. You may be targeting your message to smokers, for example, or to

youth engaged in violence.
 Attitudes. Are you trying to change people’s minds, or bring them to the next
level of understanding?
Resources. What do you have the money to do? Do you have the people to make
it possible? If you’re going to spend money, what are the chances that the results

will be worth the expense? Who will lose what, and who will gain what by your use of
financial and human resources?
Your plan should include careful determinations of how much you can spend and
how much staff and volunteer time it’s reasonable to use. You may also be able to
get materials, air time, and other goods and services from individuals, businesses,
other organizations, and institutions
Group Activity / Pair Activity:5 (PRACTICAL WORKPLACE

ASSESSMENT)
1. Design an action plan that can be presented to the

stakeholders. Show clearly how it can be
communicated to the stake holders.
2. Describe the relevance of an action plan to the
business.
3. Show how an action plan can be developed and
identify issues that need to be addressed.
2.3: EVALUATING ACTION PLAN TO MEET CUSTOMER

REQUIREMENTS.
Managers report that action planning to resolve interpersonal and organizational

challenges is far more demanding than diagnosing them. Although there are many
frameworks for evaluating their diagnoses, there are few for evaluating their action
plans. Reviews the major criteria for assessing an action plan. Includes a short list of
"Key Elements of Action Planning," and a longer list of "Criteria for Evaluating an
Action Plan." The list of criteria is written as a series of questions to ask you when
assessing an action plan.
2.3.1 MAKE AN ACTION PLAN TO IMPROVE CUSTOMER SERVICE
Customer Service is a critical factor for keeping your clients coming back and
ensuring they'll refer you to others. Growing your business will be a difficult task at
best if you don't perform, meet and exceed your client's expectations, and provide
service that creates customers for life.
Customer service is all about the customer's perception. You have to do more than
just get the job done. You must deliver on all the things (big and small) that affect the
relationship with your client. Consider opportunities for improvement in the following
areas.

1. Setting/Reviewing Expectations. Do you work with your client to set clear,

appropriate, realistic expectations that you can always meet or exceed? Are
you clear about the responsibilities (both yours' and the client's), timelines,
and expectations of results? Are you then willing to go back and review these
expectations with the client at key points along the way?
2. Communication. Do you have mechanisms in place to ensure you're
communicating with clients at every stage of the engagement, from the sales
process through to completion of the project? Being clear about where you're
at, what's been completed, what's coming up next, who's responsible, what
results you can expect, etc.? Has the client ever had to ask you for these
things?
3. Organization. Are you organized? Punctual? Reliable? When you show up to
work with your clients, have you done the work and are you prepared to make
them feel comfortable and taken care of? Even though you've done it
hundreds, maybe thousands of times before, do you take the time to organize
and prepare to make it the best client experience possible?
4. Committing to the Little Things. Don't ever dismiss the power of all the little
things. Together they can make all the difference and really separate you from
the competition. Returning calls and emails in a timely manner. Providing
useful information to folks on a regular basis. Showing appreciation for your
clients through things like thank you notes, exclusive client-only briefings, and
open house, etc.
2.3.2 GOOD CUSTOMER SERVICE: CUSTOMER COMPLAINTS AND

RETURNS
Customer complaints and returns are also extremely common customer service
interactions. Providing good customer service for a customer with a return depends
on two factors; your business's return policy and the way you and/or your staff
interact with the customer during the return process.
Tips for Handling Store Returns discuss both these factors and explains exactly what
you have to do to provide good customer service for this customer service situation.
Once you've read through and printed the article for your convenience, you can use
it to assess both your return policy and how well you and/or your staff deal with
customers who are trying to return items. After assessing several such situations,
use the tips in the article to improve your customer service as needed.
The same basic rules that apply to handling returns also apply to handling customer
complaints. There are two differences that are important to bear in mind when trying
to improve customer service for customer complaints:
1. Customers making complaints need to feel they are being listened

to. Listen actively by making eye contact, nodding, or even jotting down a
note. Ask clarifying questions when the customer is finished speaking if

necessary to get more details that will enable you to solve the customer's
problem. Do not interrupt a customer when he or she is speaking.
2. Customers making complaints need closing action. When a customer
makes a return, the close of the customer service interaction is the customer
getting her money back or something else of value. A customer making a
complaint needs to get something of value out of the exchange, too; some
action relevant to the complaint, whether it be a promise to follow up or a
future discount.
Bearing these two points in mind, you can use the information in Tips for Handling
Store Returns to assess how well you and/or your staff are handling customer
complaints and improve your customer service as necessary depending on how your
assessment of your customer service performance goes.
3) Follow up and evaluate.
Once you've worked through the exercises in this customer service workout, take a
few moments to reflect on what you've accomplished here. How specifically has your
business's customer service improved? If you're the type that makes lists, make one
that lists these accomplishments.
Know that just like any other exercise program; you won't continue to benefit from
these improvements unless you keep practicing. So you'll need to continue to spot-
check your staff's customer service interactions and help them stay focused on good
customer service by reviewing how to provide good customer service for the
interactions you've worked on here with them in staff meetings and individual
conversations.
Keep monitoring and encouraging good customer service – and then take it to the
people once again, just as you did in point one of this Customer Service Makeover,
surveying your customers' opinions about your customer service. You should find
that they're a lot more positive about their interactions with your business – and
positive customers are what good customer service is all about.
2.3.4 PLANNING TO MEET CUSTOMER NEEDS
After you have prioritised your customer's needs and identified areas for
improvement, you will probably have found that some improvements will be hard to
implement. While some needs are relatively simple to meet, in other instances you
may need to consider more complex solutions such as:
 A longer term continuous improvement process

 A policy change
 Customer education, alternative processes or an alternative management

strategy
 Several issues may need to be addressed if there are multiple causes for low
performance

Improvement Targets:
Setting targets clarifies what achievements or improvements are expected, and to

what standard.
You will need to set achievable intermediate improvement targets that can be
measured, for example turnaround time or queue duration. Setting SMART targets
will help clarify what is being aimed for. SMART targets are:
 Specific
 Measurable
 Achievable
 Relevant
 Time Limited
These may need to be incorporated into the business plan. If so, the Centre
Manager will need to be involved in setting the targets.
Planning:
The main areas that need to be addressed when planning service improvements are:
1. Ensuring frontline service and delivery processes are efficient and meeting
needs
2. Developing and maintaining good customer relationships
3. Responding to customer complaints
4. Managing and improving service
Once you have identified the service improvements and targets you will implement,
you may wish to use a planner to record your plans and ensure coordination.
2.3.5 COMPLAINTS - DEVELOP AN ACTION PLAN
Once you have researched the history of a complaint and collected all the relevant
data, it is time to start planning a resolution.
Having a plan ensures that you have covered all the issues involved. You may even
have more than one option available - the plan lets you see and compare your
options when you discuss them with specialist staff and the customer.
You should never contact a customer without having an action plan already
developed.

Planning ensures that you offer a solution that is: bullet point.
 In the best interest of the customer, bullet point.

 In the best interest of Bush land Blooms. , bullet
1. Design an action plan in your working environment that

will address the following;
a) Improving customer service
b) Handling customer complaints
c) Satisfying customer needs.
d) Meeting customer targets.
3. Describe the effectiveness of the SMART goals in an
organisation. Show how those goals can be achieved by an
organisation.

3: IMPLEMENT ACTION PLAN TO MEET CUSTOMERS’

NEEDS
Creating strategies that meet customer needs (the marketing mix)
When marketing their products firms need to create a successful mix of:
 the right product

 sold at the right price
 in the right place
 Using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions:
 The product has to have the right features - for example, it must look good
and work well.
 The price must be right. Consumer will need to buy in large numbers to
produce a healthy profit.
 The goods must be in the right place at the right time. Making sure that the
goods arrive when and where they are wanted is an important operation.
 The target group needs to be made aware of the existence and availability of
the product through promotion. Successful promotion helps a firm to spread
costs over a larger output.
For example, a company like Kellogg's is constantly developing new breakfast

cereals - the product element is the new product itself, getting the price right
involves examining customer perceptions and rival products as well as costs of
manufacture, promotion involves engaging in a range of promotional activities
e.g. competitions, product tasting etc, and place involves using the best possible
channels of distribution such as leading supermarket chains.
The product is the central point on which marketing energy must focus. Finding
out how to make the product, setting up the production line, providing the finance
and manufacturing the product are not the responsibility of the marketing
function. However, it is concerned with what the product means to the customer.
Marketing therefore plays a key role in determining such aspects as:
 the appearance of the product - in line with the requirements of the market

 the function of the product - products must address the needs of customers as
identified through market research.
The product range and how it is used is a function of the marketing mix. The
range may be broadened or a brand may be extended for tactical reasons, such
as matching competition or catering for seasonal fluctuations. Alternatively, a
product may be repositioned to make it more acceptable for a new group of
consumers as part of a long-term plan.
The price
Of all the aspects of the marketing mix, price is the one, which creates sales
revenue - all the others are costs. The price of an item is clearly an important
determinant of the value of sales made. In theory, price is really determined by
the discovery of what customers perceive is the value of the item on sale.
Researching consumers' opinions about pricing is important as it indicates how
they value what they are looking for as well as what they want to pay. An
organisation's pricing policy will vary according to time and circumstances.
Crudely speaking, the value of water in the Lake District will be considerably
different from the value of water in the desert.
The place
Although figures vary widely from product to product, roughly a fifth of the cost of
a product goes on getting it to the customer. 'Place' is concerned with various
methods of transporting and storing goods, and then making them available for
the customer. Getting the right product to the right place at the right time involves
the distribution system. The choice of distribution method will depend on a variety
of circumstances. It will be more convenient for some manufacturers to sell to
wholesalers who then sell to retailers, while others will prefer to sell directly to
retailers or customers.
The promotion
Promotion is the business of communicating with customers. It will provide

information that will assist them in making a decision to purchase a product or
service. The razzmatazz, pace and creativity of some promotional activities are
almost alien to normal business activities.
1.1: EVALUATING ACTION PLAN
Adopting a customer focused business ethos is a proven method to increase the

chances of a sustainable and profitable future. The marketing planning process is at
the heart of any truly marketing orientated company, and ensures the customer is at
the centre of key decisions.
The plan is a detailed written document which can be used to promote a single
product of form the annual business strategy. Marketing-made-simple.com has split

the marketing plan into three steps which are easy to follow and relevant to both
small and large businesses.
 Stage 1: Research and planning
Understanding your customer and the marketing environment, looking for

opportunities for growth
 Stage 2: Developing your marketing strategy
Identifying objectives and choosing the right path to exploit any opportunities
highlighted in the research stage
 Stage 3: Determining actions and controls
Implementing your strategy and tracking success
The marketing planning process is summarised in the diagram below
The marketing plan should provide direction for all relevant members of the
organization and should be referred to and updated throughout the year. The
main purpose of the marketing plan is to provide a structured approach that

ensures the marketing manager considers all the relevant elements of the
planning process which could otherwise be missed if a more rushed approach is
adopted.
Stage 1: research & planning
This section includes the following:
 Statement of your current situation and scope of the plan

 Research into potential / current customers
 Examining the marketing environment
 Identifying opportunities for growth
Current business situation
Summarise where you are at the moment, possible items include:
 Financial results
 Sale figures and trends
 Market share
 Customer satisfaction
 Level of repeat business
The marketing environment
Examining both the internal and external marketing environments can identify
both opportunities and threats to the business and is a core component of the
plan. The whole area is usually broken down into the macro, micro and internal
environments as summarised in the diagram below.

The macro-environment
A commonly used method of quantifying the macro external environment is with a

PEST analysis. PEST is an acronym which divides the macro-environment into
four areas – Political, Economic, Social, and Technological, examples of which
are shown below.
Political environmental factors
 Trading agreements
 Tax rules
 Employment regulation
 Environmental legislation
 Legal issues
Economic environmental factors
 Recession
 Interest rates
 Exchange rates
 Rate of inflation

 Population wealth
 Growth of the housing market
Social environmental factors
 'Green' behaviour
 Eating habits
 Shifts in attitude
 Population demographics
 Attitudes to career
Technological environmental factors
 Emergence of new communications channels

 Improved production processes
 Advances in computing and the internet
 New technologies such as electric vehicles
 Automation
 Reduced cost of materials
Micro-environment
The micro-environment includes factors which are still not directly under the
control of the company, but more directly relevant to strategy such as consumer
trends, stakeholders, suppliers and competitors. Some example items are listed
below.
 Summary of your market segment

 Market growth, trends and competition
 Potential new markets
 Direction from shareholders
 Supplier costs and service quality
 Changes is consumer behaviour

UNDERSTANDING YOUR CUSTOMERS AND MARKET
Ensuring a thorough knowledge of the consumer is vital for successful marketing

planning. Use the primary and secondary (first and second hand) market research
information at your disposal to describe your customer. The more accurate your
picture of your consumer, the better you'll be able to design products which cater for
their needs and the easier it will be to communicate with them. If you have a broad
customer base, you might need to split your customers into groups (segmentation).
 Typical customer demographics

 Customer profile
 Market size
 Market geography
Group Activity / Pair Activity: 7
1. Define and explain the term marketing MIX and list

down the main components of a marketing mix.
2. Identify the social responsibility of the business to its
customers.
3. Explain the significance of social responsibility to the
growth of the business.
4. Demonstrate an understanding why a business should
invest in social aspect rather than other activities. How
does it affect the business activities?
3.2: ACTION PLAN IN BUDGETS AND RESOURCE ALLOCATIONS

MARKETING PLANS.
The Action Plan picks up where the Promotion leaves off. Whereas the Promotion
Plan might state that your company will participate in industry trade shows, the
Action Program lists the trade shows and their dates, your objectives for attending
each one, which company representatives will be sent, the results you expect, the
marketing tactics you will employ, and so on.
Action programs can be formatted in a chart, table, and timeline or in any other way.
Programs can be grouped chronologically or by event types. For example, you could
list all the activities planned in each month, or you could group similar activities, such
as public relations activities, together regardless of when they'll occur during the
year.
If your action plan becomes too lengthy, you might decide that it's better to place
some of the more detailed bits of information - such as a media placement plan

outlining where and when ads will run for an advertising campaign - in the
Supporting Documents section.
3.2.1 BUDGET
Estimate the cost of the marketing activities you've described in the marketing plan
so you will have a budget to keep everyone on track over the course of the year.
Typical marketing expense categories are marketing communications, market
research, promotions, advertising, events and public relations.
Because marketing needs and costs vary widely, there are no simple rules for
determining what you marketing budget should be. A popular method with small
business owners is to allocate a small percentage of gross sales for the most recent
year. This usually amounts to about two percent for an existing business. However, if
you are planning on launching a new product or business, you may want to increase
your marketing budget figure, to as much as 10 percent of your expected gross
sales. Another method used by small business owners is to analyze and estimate
the competition's budget and either match or exceed it.
Measurements only by setting numerical targets and time limits, can you
quantitatively measure the results of implementing your marketing plan. Set them in
this section and regularly assess your progress during the year. Constantly adjust
goals to reflect changes in market conditions.
For example, to measure a promotion plan you might "source" customers by asking
them what drew them to your particular business and by keeping track of how much
money they spend. Was the money spent on a particular promotional activity repaid
by new business within a 90-day or six-month period, for example? Was there a
profit in excess of the cost of the promotional activity?
3.2.2 MARKETING PLAN SUPPORTING DOCUMENTS
Place documents that back up statements you've made or provide further

clarification for the preceding sections of your marketing plan as needed in this
section. Include only documents that you've already referenced in the previous
sections of the plan. You could include things such as the resumes of key
management referred to in the Executive Summary.
Marketing strategy
This section includes the following elements:
 Development of mission statement

 Statement of objectives
 Strategy and tactics to accomplish the objectives
Mission statement

Your mission statement is a formal commitment and focus for the business. It should
explain to customers concisely what the nature of your business is and where you
are going, and also provide a motivational tool for employees. It should be
aspirational, something to strive for, yet obtainable and relevant. Once this has been
defined it should form the focus for your business strategy.
Vision statement
A vision statement is a more long term, ideal-world statement which outlines where
you would like to take the business in the long run.
objectives
Combined with the mission statement, your objectives should be the key statements
that drive your business. The most successful goals follow the SMART acronym.
Specific, measurable, achievable, realistic and time bound.
 What do you want to achieve by the end of this year?

 Where do you want to be in one, five, ten years?
Objectives must be quantitative in order to accurately measure success. For

example, 'sell 600 units in the next year' or 'increase customer retention by 20%'.
1. List down the 4 elements of a marketing strategy.

2. Design a marketing strategy that can be employed to meet
customer needs and expectation.
3. Describe the relevance of comparing the budgeted with actual
action plan for marketing.
4. Show how an action plan can be improved to prevent further
variances.
3.3: ACTION PLAN TO THE SATISFACTION OF THE CUSTOMER

AND THE ORGANISATION.
3.3.1 CUSTOMER SATISFACTION
Customer satisfaction, a term frequently used in marketing, is a measure of how

products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products,
or its services (ratings) exceeds specified satisfaction goals." In a survey of nearly
200 senior marketing managers, 71 percent responded that they found a customer
satisfaction metric very useful in managing and monitoring their businesses.
It is seen as a key performance indicator within business and is often part of

a Balanced Scorecard. In a competitive marketplace where businesses compete for
customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy.
"Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers’ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales and
profitability. . . . These metrics quantify an important dynamic. When a brand has
loyal customers, it gains positive word-of-mouth marketing, which is both free and
highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction.

To be able do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or
service has met or exceeded expectations. Thus, expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls
short, they will be disappointed and will likely rate their experience as less than
satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget motel—even though its facilities and service would
be deemed superior in 'absolute' terms.

Purpose
A business ideally is continually seeking feedback to improve customer satisfaction.
"Customer satisfaction provides a leading indicator of consumer purchase intentions

and loyalty." "Customer satisfaction data are among the most frequently collected
indicators of market perceptions. Their principal use is twofold:"
1. "Within organizations, the collection, analysis and dissemination of these data

send a message about the importance of tending to customers and ensuring
that they have a positive experience with the company’s goods and services." [
2. "Although sales or market share can indicate how well a firm is

performing currently, satisfaction is perhaps the best indicator of how likely it
is that the firm’s customers will make further purchases in the future. Much
research has focused on the relationship between customer satisfaction and
retention. Studies indicate that the ramifications of satisfaction are most
strongly realized at the extremes." On a five-point scale, "individuals who rate
their satisfaction level as '5' are likely to become return customers and might
even evangelize for the firm. (A second important metric related to satisfaction
is willingness to recommend.
At a simplistic level, there are three primary elements to any competitive business:
the business itself, its product(s) and its customers. Each of these components
represents the focus of attention for one of the value disciplines. The focus is on the
customers and their needs and desires when pursuing "Customer Intimacy"; the
focus is on the product(s) when pursuing "Product Leadership"; and the focus is on

the organisation itself and its delivery processes, when pursuing "Operational
Excellence".
Figure 1. Focus areas for Value Disciplines
Some organisations will concentrate on their relationship with their customers (to
increase customer satisfaction and retention by better understanding the customer's
needs and preferences). Other organisations will focus on their products (constantly
developing new ideas and getting them to market quickly). The third group of
organisations focus primarily on themselves and their internal processes (sharing
best practices between different units, reducing costs and improving efficiency).
1. Define and explain the term customer satisfaction.

2. Design an action plan that can be used to meet customer
satisfaction.
3. Identify areas of focussed discipline that needs to be
addressed in an action plan stated above.

3.3.1 DEVELOPING AN ACTION PLAN
An action plan is core to the marketing process – a constantly evolving document

which is cascaded to the relevant people and monitored regularly. Most action plans
are relatively short term documents which focus on the coming year, but longer term
implications should also be considered.
Action planning is a stages approach:
 Clarify goals, and ensure they are SMART

 Link back to your objectives and tactics
 Set criteria for success
 Prioritize
 Set timings
 Determine who will complete each action point
 Monitor the progress of the plan and review regularly
An example action plan is shown below
3.3.2: MEASUREMENTS, CONTROLS AND REPORTING
The final stage of the action plan is the implementation of measurements and
controls and reporting results. Many models for monitoring the performance of

businesses have emerged, many of which address the needs of key stakeholders
and allow them to evaluate the overall success of a company.
The balanced scorecard approach for monitoring company performance
The balanced scorecard approach is a widely used method of monitoring overall

performance and ensuring daily work is focused on the strategic objectives. The
scorecard is a "strategic planning and management system…which is used to align
business activities to the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance against strategic
goals". This approach encourages open communication throughout the business and
allows tracking of performance throughout the year.
Traditionally, businesses have tracked success based on just one measure –

financial results. However the scorecard system views the business from four
external perspectives to gain a more relevant approach to performance metrics.
a) Learning & growth – how you are innovating and improving to meet your goals
b) Business process – how critical processes are measuring up
c) Customer perspective – usually measured in terms of time, quality,

performance and cost
d) Financial perspective – financial performance from the stakeholder point of

view
Each element is tracked using four items which are listed individually:
 Objectives - as identified in stage 2 of the marketing planning process

 Measures - how will success be measured?
 Targets - specific quantifiable targets
 Initiatives - how to make the targets more readily achievable
3.3.3: KEY PERFORMANCE INDICATORS (KPIS)
Depending on your industry, you may also have certain specific metrics which
determine success, these could include:
 Market share analysis

 Sales analysis
 Quality control
 Financial results
 Market research

 Marketing information systems
 CRM - New customers acquired, retention
 Service levels
 Brand awareness
 Competitor performance
 Benchmarking
 Profitability
Gap analysis
Gap analysis is another useful tool which answers two questions: Where are you?
Where do you want to be? It can be useful to identify where you are with the
following facets of the business:
 Organisation
 Business direction and marketing mix
 Business processes
 Information technology
 Requirements vs capability
 Market potential vs existing usage
 Your business vs competition
Feedback
Now that you have an accurate picture about the success of your plan it's important
to feedback this information in order to fine tune the strategy and update the courses
of action accordingly.
Group Activity / Pair Activity:10 (Practical assessment task)
1. Design a checklist showing issues to be addressed in an

action plan’. The action plan should address the following:
a) Key performance indicators.
b) The gap analysis
c) Feedback analysis

d) Ways of monitoring company performance
3.4: DOCUMENTATION RELATING TO THE ACTION PLANS
The following actions plans need to be documented if customer’s needs and wants
are to be meant. These include the following;
3.4.1 CUSTOMER ACCEPTANCE ACTION PLAN
This Customer Acceptance Action Plan is a guide through a set of procedures to

ensure that project’s product perfectly meets requirements declared by the
customers, and therefore that project may finally be closed. Generally this Customer
Acceptance Action Plan embraces the following sections:
 Customer Acceptance (Management) Process;

 Components of Customer Acceptance Plan;
 Project Manager’s tasks on Customer Acceptance procedures;

Customer Appreciation Action Plan
This Customer Appreciation Action Plan is about the way you may use to express
your gratefulness to your loyal customers, as it is an important element of customer
retention and satisfaction policy. You customers are people who invest into your
company’s prosperity, helping you to refine your business attitudes and conceptions.
This Customer Appreciation Action Plan contains helpful advice and guidance,
specifically customer appreciation tips on the following:
 Customer Appreciation awards (both tangible and intangible);

 Tasks for the Customer Appreciation campaign;
Customer Care Action Plan
Customer care policy and strategy are very important for a business which tends to
earn more competitive advantages. For receptionists, customer care
representatives, and other sales staff members in customer-facing roles, customer
care should be the core element of their jobs. The given below customer care
Action Plan will help managecustomer care specialists of your company and earn
customer satisfaction.
The customer care Action Plan consists of the following categories:
 Understanding your customers

 Managing your customer care
 Retaining your customers
Customer Experience Action Plan
Gaining positive customer experience is a challenging task that involves businesses

in analyzing behaviours of their clients and improving their service. Read this
Customer Experience Action Plan to learn how to solve this task in 4 steps,
including:
 Review Target Audience

 Improve Customer Relationship Management
 Provide Incentives to Customers
 Engage Salespeople

Customer Feedback Action Plan
Customer Feedback Action Plan is created to help business managers in

investigating customers’ impressions about quality of service they (customers)
received. In this action plan you can find out the following categories to be
elaborated into specific questions:
 Key performance measures of your business service;

 Perceive quality and usefulness of service;
 Competence of employees;
 And much more…
Customer Focus Action Plan
This Customer Focus Action Plan explores 4 steps for managing custom focus in a
commercial organization. It will be helpful for specialists from sales departments and
customer support teams. The following categories are included in the action plan:
 Customer Focus: Overview

 Step 1. The Inputs
 Step 2. Customer Needs
 Step 3. Solution
 Step 4. Competitive Advantages
Customer Information Action Plan
You can use this Customer Information Action Plan in developing a database of your
current clients and prospects. The action plan includes a range of tips and
suggestions which are organized into the following groups:
 Contact Names
 Address
 Job Titles
 Psychographic Profile
 Purchase History
 Payment History

 Special Needs
 Customer Feedback
Customer Loyalty Action Plan
Loyal customers are ready to purchase more and repeatedly. They are the value that
allows every business to generate higher revenues from sales. Read this Customer
Loyalty Action Plan to find out how to earn loyal customers in 4 basic steps including:
 Qualify Prospects
 Win First-time Buyers
 Gain Repeat Clients
 Strengthen Customer Loyalty
Customer Orientation Action Plan
Fostering customer-oriented workforce is always vital for developing and flourishing

your company. The given below Action Plan explains how to develop a successful
customer orientation strategy, involve employees in following it, and measure and
improve customer orientation.
The customer orientation Action Plan consists of the following categories:
 Developing customer orientation strategy within your company

 The principles of customer orientation strategy
 Improving skills of executives and subordinates – organizing customer

orientation training
Customer Relationships Action Plan
This Action Plan can be helpful for researching of company's capabilities to establish
long-term partnerships with clients. The customer relationships Action Plan consists
of things that are very important for company interested in obtainment of regular and
stable clients.
The Action Plan to improve relationships with consists of the following categories:
 Understand customers' business objectives

 Study business requirements of your clients

 Try to offer not only specific products etc.
Customer Requirements Action Plan
This customer requirements Action Plan is composed for all professionals who

would like to gather, analyze and manage the requirements necessary to produce
products matching business needs, vision and wishes of their clients. This customer
requirements Action Plan can work for different industries and includes
recommendations and tips on the following:
1. General customer requirements capture;

2. Customer requirements analysis;
3. Customer requirements management;

Customer Retention Action Plan
This customer retention Action Plan , intended for company owners and

managers, explains essential customer retention ideas along with giving customer
retention examples, which can be realized in your company to eliminate customer
defections, to increase sales volumes and incomes using hidden potential of your
customers through getting their long-term loyalty.
The customer retention Action Plan consists of the following categories:
 Establish evaluation of customer defections

 Range customer defections and define how you will register them
 On basis of obtained information start making your customer retention Plan
Customer Satisfaction Action Plan
Customer satisfaction Action Plan gives the general tips which explain how the
clients should be treated according to international business ethics. Observance of
these tips will help you to make good impression on your client and make them feel
satisfied after dealing with your company. This Action Plan for customer satisfaction
can be used by businessman to assess attitudes to customers within own company.
This Action Plan includes a number of the most common tips, but you can easily
supplement and modify it.
The customer service Action Plan consists of the following categories:
 Make sure that all your employees fully understand that the customer is the
number one in the business.
 NEVER argue with the customers (client is always right).
 Behave with every visitor like with a potential customer.
 Try to answer the telephone by the second ring.
Customer Service Action Plan
In order to earn the best customer service experience and meet customer service
goals, your company needs to create Customer Service Department, or at least to
form Customer Service Team which will treat the company's customers, assign
customer service duties, arrange customer service events, and manage activities of
customer service representatives. Read the given below customer service Action
Plan to know more about all the mentioned.

The customer service Action Plan consists of the following categories:
 Assigning staff to customer service responsibilities

 Earning the best customer service experience
Customer Service Excellence Action Plan
With a help of this Customer Service Excellence Action Plan you will find out

some ways on how you may reach a proper level of interacting with your clients. This
Action Plan comprises:
 How to set adequate standards of customer service excellence;

 How to promote and secure these standards;
 How to manage Customer Expectations;
Customer Service Training Action Plan
Customer service is always a challenge for a business organization because

customers always want to get a better treatment so the organization has to do its
best to satisfy customer needs. The following Customer Service Training Action Plan
will help your company teach employees to treat customers in a better way. It
consists of these categories:
 Define Success of Your Training Programme.

 Define Key Principles for the Programme.
 Communicate the Programme.
 Provide Tools and Material Necessary for Training.
 Plan Scenarios for Training Sessions.
Customer Survey Action Plan
The customer survey is the best way to measure customer satisfaction and to
understand how the customers recognize your company and its product/service
range. The Action Plan for customer service examination allows you to be quickly
oriented on what you should do and what objectives are to be set for the survey.
The Action Plan to improve customer service consists of the following categories:
 What are the survey objectives

 Determining target groups to be used for survey
 Selecting prioritized languages to be used for the survey
Customer Visit Action Plan
This customer visit Action Plan is designed for sales persons, helping them to look
and behave correctly during visiting their potential customers in order of making
good impression, and representing their products/services in the best manner.
This customer visit Action Plan contains recommendations on the following:
 Personal preparative customer visit Plan;

 Business-related preparative customer visit Plan;
 Behavior during customer visits;
Account Planning Action Plan
Account planning means a process for creating a plan that identifies sales
opportunities and defines a course of action for exploiting these opportunities. The
following Account Planning Action Plan explains 4 steps for doing the process.
These steps are:
 Review Account History

 Explore Current State
 Look for Opportunities
 Adjust the Plan
Good Customer Service Action Plan
Customer service is a great way to reach customer satisfaction and attract new
clients. This Good Customer Service Action Plan presents a range of tasks your
personnel can do to attract new clients and retain existing customers. All tasks are
divided into the following categories:
 Necessary Skills
 Communications
 Conflicts
 Process Flow

Know Your Client Action Plan
Know Your Client training (KYC training) is often required for employees (brokers,
financial advisors) working for investment companies and financial institutions. The
nextKnow Your Client Action Plan can be used trainers and mentors as a
supplement to their guidelines for training employees. It includes the next categories:
 Know Your Client: Basic Information.

 Customer Profiling.
 Know Your Client Policy (KYC Policy).
4 TRACK AND MEASURE THE ACTION PLAN

4.1: STAKEHOLDER’S MEASUREMENT TECHNIQUES.
A common feature of marketing research is the attempt to have respondents

communicate their feelings, attitudes, opinions, and evaluations in some measurable
form. To this end, marketing researchers have developed a range of scales. Each of
these has unique properties. What is important for the marketing analyst to realise is
that they have widely differing measurement properties. Some scales are at very
best, limited in their mathematical properties to the extent that they can only
establish an association between variables. Other scales have more extensive
mathematical properties and some, hold out the possibility of establishing cause and
effect relationships between variables
Measurement, tracking and reporting is an important aspect of sustainability

programs. Measurement provides a way for you to gauge your progress towards
your goals, tracking helps you monitor your progress and continually improve, and
reporting allows you to communicate it to staff or other stakeholders. Common
examples would be measurement of resources used (energy, water, paper
consumption, materials), waste created, greenhouse gases emitted, employee
volunteer hours or donations to social or environmental groups.
A common axiom of sustainability management is that you can’t manage what you
don’t measure. As your business begins to manage and reduce its negative
sustainability impacts, consider appropriate measures of success to measure your
progress, set specific targets and then begin to monitor your sustainability
performance over a monthly, quarterly or annual basis. This will help you track your
performance, as with other aspects of your business, pointing you to areas where it
might be necessary to step up efforts. Measuring in this way can be a real incentive
to staff, too, as it can encourage them and further motivate them to do more. Many
businesses start the measuring process by conducting an environmental audit or

social responsibility assessment of their operations. You may wish to start here too,
there are some examples in Resources to help you with this, or see the Resource
Use section.
Over the last decade, reporting on environmental and sustainability performance has
grown worldwide, with many large and some medium sized organizations producing
an annual sustainability report. Such reporting addresses the positive and negative
aspects of the company’s environmental and social performance with the goal of
increasing transparency and building goodwill with stakeholders such as
shareholders/investors, employees, community members and your clients.
Reporters also find that the process of issuing a sustainability report helps bring
more clarity and focus to the organization’s efforts in managing its environmental and
social performance, so it can be a good way to improve your performance as well.
In practice, SMEs are less likely to issue sustainability reports. However, reporting

on sustainability performance can help them gain credibility with customers,
investors and bankers who are increasingly looking to environmental measurement
and reporting as a tool to assess the credit worthiness and risk profile of businesses.
As noted in the Business Case, employees are also interested in working for
companies aligned with their values. Being able to read about concrete efforts and
the positive impacts the company has generated in the environment or the
community can make the best and the brightest talent more attracted to your
company. The goal is to provide a means to communicate information to
stakeholders to gain trust and credibility. This may be as simple as posting
information on your website, or providing an update to suppliers, customers and
staff, all the way to more robust and complex annual sustainability reporting.
Action Measure
Measuring the success of your sustainability programs and initiatives helps you
ensure that you track your progress and meet your goals. Measurement allows you
to create an accurate description of your current state, so that you can set goals and
be sure when you meet them. The measurement of your current state is often
referred to as creating a baseline. Ultimately, you need measures that work for your
business that can easily be integrated into workflows, and can be reproduced
regularly to monitor and track progress. Get started on your baseline by:
 Gather your bills for each area of resource consumption. Typically, this

would include waste and recycling, energy (electricity and natural gas), water,
and materials use. Take a look at what unit of measurement are provided by
your utility, contractors and suppliers and assess whether this is sufficient to
help you monitor progress over time; or
 Conduct an audit to dig deeper into one of your resource use areas. For
instance, if you want to reduce energy use from a specific part of your
building, or reduce one of the materials in your waste stream, you’ll need to
have a better breakdown than your bills provide. A simple dumpster dive will
provide you with your total waste volume, a breakdown of your waste stream
and ideas about where the biggest opportunities for reduction might be. An

energy or greenhouse gas audit will provide you with energy use or emissions
from different areas of your business, that will allow you to set specific goals.
 Survey your staff to determine the degree to which they perceive the
company to be a socially and environmentally responsible firm. This can be a
means of identifying gaps that require attention to maintain employee morale
and engagement.
4.1.1 MEASUREMENT TECHNIQUES (LEVELS OF MEASUREMENT).
Most texts on marketing research explain the four levels of measurement: nominal,
ordinal, interval and ratio and so the treatment given to them here will be brief.
However, it is an important topic since the type of scale used in taking
measurements directly impinges on the statistical techniques which can legitimately
be used in the analysis.
Nominal scales
This, the crudest of measurement scales, classifies individuals, companies,

products, brands or other entities into categories where no order is implied. Indeed it
is often referred to as a categorical scale. It is a system of classification and does not
place the entity along a continuum. It involves a simply count of the frequency of the
cases assigned to the various categories, and if desired numbers can be nominally
assigned to label each category as in the example below:
Figure 3.1 an example of a nominal scale
Which of the following food items do you tend to buy at least once per month?
(Please tick)
Okra Palm Oil Milled Rice
Peppers Prawns Pasteurised milk
The numbers have no arithmetic properties and act only as labels. The only measure
of average which can be used is the mode because this is simply a set of frequency
counts. Hypothesis tests can be carried out on data collected in the nominal form.
The most likely would be the Chi-square test. However, it should be noted that the
Chi-square is a test to determine whether two or more variables are associated and
the strength of that relationship. It can tell nothing about the form of that relationship,
where it exists, i.e. it is not capable of establishing cause and effect.

Ordinal scales
Ordinal scales involve the ranking of individuals, attitudes or items along the
continuum of the characteristic being scaled. For example, if a researcher asked
farmers to rank 5 brands of pesticide in order of preference he/she might obtain
responses like those in table 3.2 below.
Figure 3.2 An example of an ordinal scale used to determine farmers'

preferences among 5 brands of pesticide.
Order of preference Brand
1 Rambo
2 R.I.P.
3 Killalot
4 D.O.A.
5 Bugdeath
From such a table the researcher knows the order of preference but nothing about
how much more one brand is preferred to another, that is there is no information
about the interval between any two brands. All of the information a nominal scale
would have given is available from an ordinal scale. In addition, positional statistics
such as the median, quartile and percentile can be determined.
It is possible to test for order correlation with ranked data. The two main methods are
Spearman's Ranked Correlation Coefficient and Kendall's Coefficient of
Concordance. Using either procedure one can, for example, ascertain the degree to
which two or more survey respondents agree in their ranking of a set of items.
Consider again the ranking of pesticides example in figure 3.2. The researcher might
wish to measure similarities and differences in the rankings of pesticide brands
according to whether the respondents' farm enterprises were classified as "arable" or
"mixed" (a combination of crops and livestock). The resultant coefficient takes a
value in the range 0 to 1. A zero would mean that there was no agreement between
the two groups, and 1 would indicate total agreement. It is more likely that an answer
somewhere between these two extremes would be found.
The only other permissible hypothesis testing procedures are the runs test and sign
test. The runs test (also known as the Wald-Wolfowitz). Test is used to determine
whether a sequence of binomial data - meaning it can take only one of two possible
values e.g. African/non-African, yes/no, male/female - is random or contains
systematic 'runs' of one or other value. Sign tests are employed when the objective
is to determine whether there is a significant difference between matched pairs of
data. The sign test tells the analyst if the number of positive differences in ranking is

approximately equal to the number of negative rankings, in which case the

distribution of rankings is random, i.e. apparent differences are not significant. The
test takes into account only the direction of differences and ignores their magnitude
and hence it is compatible with ordinal data.
Interval scales
It is only with an interval scaled data that researchers can justify the use of the
arithmetic mean as the measure of average. The interval or cardinal scale has equal
units of measurement, thus making it possible to interpret not only the order of scale
scores but also the distance between them. However, it must be recognised that the
zero point on an interval scale is arbitrary and is not a true zero. This of course has
implications for the type of data manipulation and analysis we can carry out on data
collected in this form. It is possible to add or subtract a constant to all of the scale
values without affecting the form of the scale but one cannot multiply or divide the
values. It can be said that two respondents with scale positions 1 and 2 are as far
apart as two respondents with scale positions 4 and 5, but not that a person with
score 10 feels twice as strongly as one with score 5. Temperature is interval scaled,
being measured either in Centigrade or Fahrenheit. We cannot speak of 50°F being
twice as hot as 25°F since the corresponding temperatures on the centigrade scale,
10°C and -3.9°C, are not in the ratio 2:1.
Interval scales may be either numeric or semantic. Study the examples below in
figure 3.3.
Figure 3.3 Examples of interval scales in numeric and semantic formats
Please indicate your views on Balkan Olives by scoring them on a scale of 5 down to
1 (i.e. 5 = Excellent; = Poor) on each of the criteria listed
Balkan Olives are: Circle the appropriate score on each line
Succulence 5 4 3 2 1
Fresh tasting 5 4 3 2 1
Free of skin blemish 5 4 3 2 1
Good value 5 4 3 2 1
Attractively packaged 5 4 3 2 1
(a)
Please indicate your views on Balkan Olives by ticking the appropriate responses
below:

Excellent Very Good Good Fair Poor
Succulent
Freshness
Freedom from skin blemish
Value for money
Attractiveness of packaging
(b)
Most of the common statistical methods of analysis require only interval scales in
order that they might be used. These are not recounted here because they are so
common and can be found in virtually all basic texts on statistics.
Ratio scales
The highest level of measurement is a ratio scale. This has the properties of an
interval scale together with a fixed origin or zero point. Examples of variables which
are ratio scaled include weights, lengths and times. Ratio scales permit the
researcher to compare both differences in scores and the relative magnitude of
scores. For instance the difference between 5 and 10 minutes is the same as that
between 10 and 15 minutes, and 10 minutes is twice as long as 5 minutes.
1. Describe a number of action plans that are needed to

be documented if customer’s needs and wants are to
be meant. These include may include the following;
a) Ratio scales
b) Interval scales
c) Ordinal scales
4.2: IDENTIFIED VARIANCES AGAINST ACTION PLAN
4.2.1 VARIANCE ANALYSIS
Variance analysis is the practice of reviewing the difference or variance between

actual financial performance and budget/forecast figures.

The comparison for each budget/forecast account compares the current period to the
corresponding period last year or last quarter and makes it easier to forecast the
overall year-end result.
Reviewing variances allows business management to understand the causes of

variances and then to control future costs. At the same time, variance analysis
checks the validity of the budget or forecast and helps refine future budgets and
forecasts.
Variance analysis can also act as an early warning system to highlight any trends in
financial performance (positive or negative) as they emerge.
Using Variance Analysis to Track Business Performance
Variance analysis can be used to observe how well a business is performing and
also how close actual costs and revenues are to expected costs and revenues.
However there are some caveats to its usefulness.
Definition of Variance Analysis
In accounting, a variance is defined as the difference between the expected amount

and the actual amount of costs or revenues. Variance analysis uses this standard or
expected amount versus the actual amount to judge performance. The analysis
includes an explanation of the difference between actual and expected figures as
well as an evaluation as to why the variance may have occurred. The purpose of this
detailed information is to assist managers in determining what may have gone right
or wrong and to help in future decision-making.
Favourable Variance
A variance can be put into the favourable category when the results are better than
expected. This means that revenues were more than the expected amount or costs
were below the budgeted amount. In accounting practice, a favourable variance is
shown by noting a letter F in parenthesis on the reports. A favourable variance might
earn a bonus for a manger, or perhaps a move up the corporate ladder.
Unfavourable Variance
In contrast, the variance can be judged as unfavourable if the results are worse than
expected. If the revenues were below expectations or the costs were higher than
standard, the variance would be termed unfavourable or adverse. This would be
denoted on the reports with the letter A or U, usually in parenthesis. Consistently
creating an unfavourable variance might result in a manger being reprimanded or
losing their job. However, the analysis is typically used to help mangers prevent a
negative situation from recurring by providing information about what went wrong.
Common Uses


Variance analysis is commonly used in several aspects of business accounting. One
of the most common is in the purchase of manufacturing materials. The variance is
the price paid for the materials less the expected cost and then multiplied by the
actual number of units used in the process. Another commonly seen usage is the
selling price variance or the actual sales price minus expected, times the number of
units. The analysis is also used with overhead and labor spending and efficiency.
Problems
Not all companies utilize variance analysis in their managerial process. There are
several reasons for this, one of which is that it can be quite complex for the
accountants to process all of the information necessary to discover why there may
have been a problem or benefit that caused the variance. In addition, the variance is
not calculated until the end of the accounting period, when the information gleaned
from the analysis may be too late to assist managers with their decision-making.
Finally, the standard figures used to calculate the variance may not be as accurate
as the actual figures, thus the analysis may have little usefulness.
Other Types of Analysis
The companies that choose not to use variance may perform horizontal or vertical
analysis instead. Horizontal analysis is practiced by comparing results over time
rather than comparing actual results to be expected as with variance. For example,
revenues can be compared between the first and second quarter of the fiscal year to
see how they have changed. Vertical analysis is practiced by assigning percentages
to items on the profit and loss statements and balance sheet depending on how
much they contribute to the bottom line. These percentages can be compared over
time as well.
COMPARING ACTUAL PLANS VS. BUDGETED PLANS

Comparing actual vs. budget is often referred to as "variance analysis," a principal

function in management accounting. Unlike financial accounting, which concerns the
recording of historical business transactions for all interested parties, management
accounting focuses on producing forward-looking information, such as developing
budgets and measuring performance, for managers for internal, private uses.
Management accounting assists managers in formulating business strategies,
planning business activities and evaluating business results. Providing decision-
oriented information, management accounting serves as a mechanism for better
management
Measuring Results
Measuring actual results against budget is aimed at monitoring and recording

business activities, the results of which are used for further performance evaluation.
The comparison of actual vs. budget often shows a difference, or "variance," that can
be either favourable or unfavourable. For example, in a cost budget, a lower actual
number than the budgeted figure would be considered favourable, while in a sales
budget, a higher actual number than the budgeted figure would be seen as
favourable.
Analyzing Variance
Variance is analyzed to find out what caused the variation between actual and
budget. Planning budgets and measuring results are only the start of the process of
comparing actual vs. budget. Management uses the budget report to identify the
reasons for any variation so that it can recommend appropriate corrective actions.
Potential causes for unfavourable variances may include unrealistic budget or
subpar performance.

Taking Actions
Variance analysis better informs managers about current business operations.

Knowing what has performed and what has not, managers can take reinforcing
measures or corrective actions. The purpose of comparing actual vs. budget is to
add value to the business through better planning, monitoring, evaluating and
controlling. Management may adjust a budget upward or downward to better reflect
reality and implement new cost-cutting or sales-promoting measures.
1. Explain the meaning of the term variance analysis.

2. Describe the importance of analysing variance in business.
3. List down different types of variances in business and explain
the implication of each in business.
4. Demonstrate an understanding of the reasons that can course
those variances in business plans.
5. Show how those variances can be rectified.
4.4: MEASUREMENT REPORT AND REVIEW RECORDS
Records management, or RM, is the practice of maintaining the records of an

organization from the time they are created up to their eventual disposal. This may
include classifying, storing, securing, and destruction (or in some cases, archival
preservation) of records.
A record can be either a tangible object or digital information: for example, birth

certificates, medical x-rays, office documents, databases, application data, and e-
mail. Records management is primarily concerned with the evidence of an
organization's activities, and is usually applied according to the value of the records
rather than their physical format.
4.4.1 Managing physical records
Managing physical records involves different disciplines and may draw on a variety
of forms of expertise.
Records must be identified and authenticated. This is usually a matter of filing and

retrieval; in some circumstances, more careful handling is required.
Identifying records

If an item is presented as a legal record, it needs to be authenticated. Forensic

experts may need to examine a document or artifact to determine that it is not
a forgery, and that any damage, alteration, or missing content is documented. In
extreme cases, items may be subjected to a microscope, x-ray, radiocarbon
dating or chemical analysis. This level of authentication is rare, but requires that
special care be taken in the creation and retention of the records of an organization.
Storing records
Records must be stored in such a way that they are accessible and safeguarded
against environmental damage. A typical paper document may be stored in a filing
cabinet in an office. However, some organisations employ file rooms with specialized
environmental controls including temperature and humidity. Vital records may need
to be stored in a disaster-resistant safe or vault to protect against fire, flood,
earthquakes and conflict.
Circulating records
Tracking the record while it is away from the normal storage area is referred to as
circulation. Often this is handled by simple written recording procedures. However,
many modern records environments use a computerized system involving bar code
scanners, or radio-frequency identification technology (RFID) to track movement of
the records. These can also be used for periodic auditing to identify unauthorized
movement of the record.
Disposal of records
Disposal of records does not always mean destruction. It can also include transfer to
a historical archive, museum, or private individual. Destruction of records ought to be
authorized by law, statute, regulation, or operating procedure, and the records
should be disposed of with care to avoid inadvertent disclosure of information. The
process needs to be well-documented, starting with a records retention schedule and
policies and procedures that have been approved at the highest level. An inventory
of the records disposed of should be maintained, including certification that they
have been destroyed. Records should never simply be discarded as refuse. Most
organizations use processes including pulverization, paper shredding or incineration.
Commercially available products can manage records through all processes active,
inactive, archival, retention scheduling and disposal. Some also utilizes RFID
technology for the tracking of the physical file.
4.4.2 MANAGING ELECTRONIC RECORDS
The general principles of records management apply to records in any format. Digital
records (almost always referred to as electronic records), however, raise specific
issues. It is more difficult to ensure that the content, context and structure of records
is preserved and protected when the records do not have a physical existence. This

has important implications for the authenticity, reliability, and trustworthiness of

records.
Setting up the right record keeping system for your business will help you work
efficiently, meet legal requirements and strengthen customer and staff relationships.
Basic records
To meet basic legal requirements, you must keep the following:
 a cash book or financial accounting program - that records cash receipts

and cash payments
 bank accounts - cheque books, deposit books and bank statements
 employment records - hours of work, overtime, remuneration or other

benefits, leave, superannuation benefits, termination of employment, type of
employment, personal details of workers, employee personal contact and
employment details
 occupational training records - for both you and employees to comply

with workplace health and safety laws
 sales records - invoice books, receipt books, cash register tapes, credit card
documentation, credit notes for goods returned and a record of goods used by
the business owner personally
 proof of purchases - cheque butts (larger purchases), petty cash system

(smaller cash purchases), receipts, credit card statements, invoices, any other
documents relating to purchases including copies of agreements or leases
 workplace health and safety (WHS) records - workplace incidents, risk

register and management plan, occupational and WHS training records,
evacuation and emergency training attendance, names of key WHS people
(e.g. WHS officer, first aid attendant), chemical storage records, first aid
incident register, workplace assessments, Material Safety Data Sheets
(MSDS).
Measuring customer satisfaction is a relatively new concept to many companies that

have been focused exclusively on income statements and balance sheets.
Companies now recognize that the new global economy has changed things forever.
Increased competition, crowded markets with little product differentiation and years
of continual sales growth followed by two decades of flattened sales curves have
indicated to today's sharp competitors that their focus must change.

1. Explain the term records management and describe using an

example a performance management cycle.
2. Discuss the advantages of keeping proper records.
SELF ASSESSMENT
Self Assessment:
You have come to the end of this module – please take the time to
review what you have learnt to date, and conduct a self assessment
against the learning outcomes of this module by following the
instructions below:
Rate your understanding of each of the outcomes listed below :
Keys:  - no understanding

 - Some idea
 - Completely comfortable
SELF
RATING
NO OUTCOME
  
1.
Analysing the relationship between service communication
and client behaviour and characteristics.
2.
Applying client service techniques.
3.
Applying client techniques to high-risk customer relations.
4.
Applying professional conduct in service provision.

LEARNER EVALUATION FORM

Learning Facilitator Name
Programme Name
Learner name Dates of

(Optional) Facilitation
Employer / Work Date of

site Evaluation
Learner Tip:
Please complete the Evaluation Form as thoroughly as you are able

to, in order for us to continuously improve our training quality!
The purpose of the Evaluation Form is to evaluate the following:
 logistics and support

 facilitation
 training material
 assessment
Your honest and detailed input is therefore of great value to us, and
we appreciate your assistance in completing this evaluation form!
A Logistics and Support Evaluation

No Criteria / Question
Below Standard
Sufficient
Excellent
Standard
Above
Poor
1 Was communication regarding attendance of the

programme efficient and effective?
2 Was the Programme Coordinator helpful and efficient?
3 Was the training equipment and material used
effective and prepared?
4 Was the training venue conducive to learning (set-up
for convenience of learners, comfortable in terms of
temperature, etc.)?
Additional Comments on Logistics and Support

Above Standard
Below Standard
Sufficient
Excellent
Poor
B Facilitator Evaluation
1 The Facilitator was prepared and knowledgeable on the
subject of the programme
2 The Facilitator encouraged learner participation and input
3 The Facilitator made use of a variety of methods,
exercises, activities and discussions
4 The Facilitator used the material in a structured and
effective manner
5 The Facilitator was understandable, approachable and
respectful of the learners
6 The Facilitator was punctual and kept to the schedule
Additional Comments on Facilitation
Sufficient
Excellent
Standard
Standard
Above
Below
Poor
1 2 3 4 5
C Learning Programme Evaluation
1 The learning outcomes of the programme are
relevant and suitable.
2 The content of the programme was relevant
and suitable for the target group.
3 The length of the facilitation was suitable for
the programme.
4 The learning material assisted in learning new
knowledge and skills to apply in a practical
manner.
5 The Learning Material was free from spelling
and grammar errors
6 Handouts and Exercises are clear, concise
and relevant to the outcomes and content.
7 Learning material is generally of a high
standard, and user friendly
Additional Comments on Learning Programme

Sufficient
Excellent
Standard
Standard
Above
Below
Poor
1 2 3 4 5
C Learning Programme Evaluation
1 The learning outcomes of the programme are
relevant and suitable.
2 The content of the programme was relevant
and suitable for the target group.
3 The length of the facilitation was suitable for
the programme.
4 The learning material assisted in learning new
knowledge and skills to apply in a practical
manner.
5 The Learning Material was free from spelling
and grammar errors
6 Handouts and Exercises are clear, concise
and relevant to the outcomes and content.
7 Learning material is generally of a high
standard, and user friendly
D Assessment Evaluation
No Criteria / Question Sufficient
Excellent
Standard
Standard
Above
Below
Poor
1 2 3 4 5
1 A clear overview provided of the assessment
requirements of the programme was provided
2 The assessment process and time lines were clearly
explained
3 All assessment activities and activities were discussed
Additional Comments on Assessment

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US ID: 120310 Learner Guide

Apply client service techniques to improve service delivery

Field 03 - Business, Commerce and Management Studies

Information in this manual is subject to change without notice. Companies, names

Customer Service Management 2

Learning programme overview.............................................................................................9

Critical Cross-Field Outcomes:............................................................................................10

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE......................................................11

2. ABOUT THE PROGRAMME...................................................................................11

2.1 Learner Support.......................................................................................................11

3.1 Formative Assessment.............................................................................................12

3.2 Summative Assessment...........................................................................................12

4. NAVIGATING THE LEARNER GUIDE.......................................................................13

4.1 Use of Icons..............................................................................................................13

Group Activity / Pair Activity:......................................................................................13

Customer Service Management 3

5.1 Attendance Register.................................................................................................15

5.2 Learner Registration Form.......................................................................................15

5.3 Programme Evaluation Form...................................................................................15

Learner’s class room rules..................................................................................................17

Manage customer TO IMPROVE SERVICE DELIVERY................................................18

1: LISTEN TO AND INTERPRET CUSTOMER NEEDS...................................................19

A. Who is the Customer?..............................................................................................19

B. What Are The Customer's Requirements?...............................................................20

1.1: INTERPRETATION OF CUSTOMER'S NEEDS.............................................21

1.1.1: Understand and Predict Customer Needs.........................................................21

1.1.2 A guide to asking questions..............................................................................21

1.1.3 Active Listening................................................................................................22

1.1.4 Customer loyalty..............................................................................................22

Group Activity / Pair Activity:1.....................................................................................24

1.2: CUSTOMERS NEEDS..........................................................................................24

1.2.1 Prioritise customers needs..............................................................................25

1.2.3 Simple Prioritization.........................................................................................26

1.2.4 Prioritization Tools...........................................................................................27

Customer Service Management 4

Paired Comparison Analysis................................................................................................27

The Action Priority Matrix...................................................................................................27

The Urgent/Important Matrix.............................................................................................27

The Ansoff Matrix and the Boston Matrices.......................................................................28

Group Activity / Pair Activity:2.....................................................................................28

1.3 METHODS OF LISTENING TO A CUSTOMER.............................................29

1.3.1 Listening to your customers.............................................................................29

1.3.2 Why gather customer feedback?.....................................................................29

1.3.3 Make your customers feel served....................................................................30

1.3.4 The Best Methods for Listening To the Customer.....................................30

1.3.5 Customer Service.............................................................................................31

1.3.6 Mail Surveys.....................................................................................................31

Group Activity / Pair Activity:3.....................................................................................33

2: DESCRIBE ACTION PLAN.....................................................................................34

2.1: ACTION PLAN WITH ALL STAKEHOLDERS...................................................35

2.1.1 Identifying Stakeholders...................................................................................35

2.1.2 Working with Stakeholders..............................................................................36

2.1.3 Involving Stakeholders.....................................................................................36

Group Activity / Pair Activity: 4....................................................................................37

2.2: COMMUNICATING AN ACTION PLAN..............................................................38

2.2.1 How DO You Communicate To Get Workplace Change?..................................38

2.2.2 The Three-Step Staging Process.......................................................................38

Customer Service Management 5