Customer Value

Strategy

Chapter 8
 Objectives:

Differentiate between internal and
external customer.
Describe customer satisfaction and its
nature.
Define customer focus.
Explain customer service.
2 Distinct types of customers:

INTERNAL CUSTOMERS
Are within the company.

EXTERNAL CUSTOMERS
May be an individual or an enterprise that hires
or purchases the product(s) or service(s) from
another person or business in exchange of
money.
External Customers can be
defined in
the ff. ways:
The one who use the product or
service.
The one who purchases the product or
service.
The one who influences the sale of the
product or service.
 Customer Satisfaction

CUSTOMER LOYALTY
Which is the feeling of attachment to or affection for a
companys people, product or services.

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.
 Ways to improve internal
customer satisfaction

1. Treat employees as the company would treat
its customers
2. Share the company vision
3. Surpass their expectations
4. Take feedback and suggestions
5. Show appreciation for good work
 Customer Satisfaction
Methods

1. Encouraging face-to-face dealings with
customers
2. Being friendly and approachable by
customers
3. Have a clearly-defined customer
service policy
Approaches of Customer
Satisfaction

1. Regular customer feedback system
2. Market research
3. New or last customer survey
4. Focus groups
5. Customer visits
6. Front line personnel
7. Critical incidents technique
2 indicators of customer
satisfaction:

1. Key indicators for Physical Products
Reliability
Aesthetics
Adaptability
Usability
Functionality
Appropriateness
 2. Key indicators for Services

Friendliness/courteousness of employees
Safety/risk of service
Billing/ invoicing procedure
Responsiveness to requests
Appearance of physical facilities
Approachability of the service provider
Willingness to listen to customer
Honesty and an ability to communicate in clear
language
 Customer Focus

Whatever companies do for quality
improvement, it must always be remembered
that only customers determine the level of
quality.
The customers are the valuable assets for any
organization.
Focusing on the customer involves designing
products or services that meet or exceed the
customers expectations.
 Customer Service

QUALITY ASSURANCE
Means developing operational controls to ensure
that the results match the desired outcomes.
Customer service operations are designed to
keep customers satisfied while protecting the
organization.
Customer Service Quality
Goals

Customer service means helping
customers solve problems.
To carry out this function effectively,
customer service has to be easily
accessible, knowledgeable, reliable and
deliver reults.