TABLE 6.9.

SUMMARY JOB AID—CUSTOMER LOGIC

How the organization finds and keeps customers

Possiblities Examples Businesses

Market strategy ASK: How are you segmenting the market?
Geographic Pacific, Mountain, Manufacturers and distributors, regional
Mid Atlantic, New specialties
England, etc.
Health care, housing, big retailers
Demographic Age, sex, family life
cycle, etc. Entertainment, furniture, clothing

Psychographic Social class, lifestyle, Bridal stores, retirement services, personal

personality technology

Behavioral Occasions, benefits,

readiness, etc.

ASK: Which segment(s) are you going after? Why?

Pacific region Coast and islands Channel Islands Surfboards
Age Families with young Target
children
Lifestyle Upwardly mobile Pottery Barn
young urbanites
Benefits People who care AAA Insurance
about quality,
service, reliability
 TABLE 6.9. SUMMARY JOB AID—CUSTOMER LOGIC (Continued )
Definition Examples Businesses

Customer needs ASK: How are you satisfying customer needs?

satisfaction
Narrowly focus on People who love to go Royal Caribbean
customers that have on cruises Cruise Lines
a specific need under People who want Hoovers.com
specific circumstances. analyses of companies
before investing in them
Try to do more Dot-com retailers Amazon
business with the same Department stores Macy’s
customers by providing
a variety of goods/ Software Microsoft
services that meet a General contractors
wide variety of needs.

ASK: How do you sell to the customer?

Uncover and sell Medical providers PhysiciansSite
exactly what the Consulting firms for Sore Eyes
customer needs and Organizations that Amazon
seek repeat business. track individual buying
patterns
Sell as many items to Big box stores Target
the customer as possible Large volume niche Home Depot
and seek repeat business. retailers Borders Books
Measures ASK: What are the key metrics your organization looks at to determine how well its Customer Logic
is working?
Size of market segment (absolute, growth)
Share of market (absolute, growth, overall, in niche)
New customers (number, percentage, overall, in niche)
Current customer (renewal (number, percentage)
Complaints number, percentage,decrease, versus competition)
Net profit/customer (Cost of sale/profit from sale)
Value (perceived benefits versus cost)

© 2009. Reprinted with permission of Lynn Kearny.

 MEASURES WORKSHEET

Performance
Logic Measures Target Current Gap Interventions Measured Results
Problems

Economic

Strategy

Customer

Product

Process

Structural

• What specific measures does the organization use for each type of logic? Write them in column 2.
• What is the target for each measure? Write it in column 3.
• What is the current number for each measure? Write it in column 4.
• What is the gap between target and current number for each measure? Write it in column 5.
• Those measures with the greatest and most critical gaps are the focus of the performance problem analysis and intervention
selection that take place next in the performance improvement process.

© Lynn Kearny 2009. Reprinted with permission of Lynn Kearny.

 INTERNAL SCAN WORKSHEET
Assess and fill in the logic the business appears to be using.

ECONOMIC LOGIC STRATEGY LOGIC CUSTOMER LOGIC PRODUCT LOGIC PROCESS LOGIC STRUCTURAL LOGIC

• Do the logics in the six columns support each other or are they contradictory?
• If they are contradictory, does this have some bearing on the problem you were asked to solve?
• How can you test your assessment that these are the business logic(s) the company is using?
• Now review the logic in the light of your environmental scan. Do the six logics seem to be consistent with external realities?

© Lynn Kearny 2009. Reprinted with permission of Lynn Kearny.