1 successful organisations are customer focused! they plan to meet customer needs, wants and...
TRANSCRIPT
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Successful organisations are customer focused!
They plan to meet customer needs, wants and expectations.
CUSTOMER FOCUS
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THE CUSTOMER DRIVEN ORGANISATION
Encouragement and reward systems for
creativity and innovation.
Market research.Plans and strategies for
meeting and anticipating customer interests.
Entrepreneurial managers and
employees.Effective internal supplier
customer chains.
Escalating environmental change requiring more imagination/intellect/
creativity.Structuring products/service around customer interests.
De-construction/
decentralisation- effective
resource and information
sharing.Point of
difference. Competitive
edge. Current and future success.
Legislative compliance and ethical practice.
Sustainability.
Internal and external
relationships/ networks.Feedback.
NEW IDEAS
PERPETUAL REVOLUTION
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COMPLACENCY
KILLS BUSINESS!
PITFALLS
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Customers are people, work-teams, businesses or other organisations which utilise goods and services from another. This may be in exchange for money (payment) but does not necessarily involve the exchange of money.
We must know who our customers are, where they come from, their needs and their buying intentions.
CUSTOMERS
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The customer, not the organisation,
should determine product style, product quality and the service
offered.
CHANGING ATTITUDES
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Market research and analysis – vital activities –
identify your customers, their needs and their prospective
purchasing intentions
MARKET IDENTIFICATION
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Never assume that you know what the customer wants or will
buy.
ASK THE CUSTOMER
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THE SUPPLIER/CUSTOMER CHAIN
Refining operations
Manufacturing or processing operations
Manufacturing or processing operations
Wholesale operations
Retail operations
Enduser
Internal customers/suppliersStakeholder/shareholder customer interests
Supply/sale/delivery Supply/sale/delivery Other inputs and constraints
Customer research
Product design
INTERFACES
INTERFACES
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Organisations have customers, stakeholders and shareholders.
They all have an interest in your organisation and its performance.
Employees are internal customers. They are also stakeholders.
Shareholders (owners) have a direct financial interest in the organisation’s profits.
EMPLOYEES AND SHAREHOLDERS
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Customers are either external or internal to your organisation.
External customers buy or use the goods and services of your organisation and are not employed by or directly associated with the selling organisation.
Internal customers are the people, groups or teams in an organisation to whom completed work, resources or information is passed by fellow employees.
CUSTOMER TYPES
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The repercussions of giving less than 100%If 99.9% is good enough, then, in America:• 12 newborns will be given to the wrong parents daily.• 114,500 mismatched pairs of shoes will be shipped/year.• 18,322 pieces of mail will be mishandled/hour.• 2,000,000 documents will be lost by the IRS this year.• 2.5 million books will be shipped with the wrong covers.• Two planes landing at Chicago’s O’Hare airport will be unsafe every day.• 315 entries in Webster’s dictionary will be misspelled.• 20,000 incorrect drug prescriptions will be written this year.• 880,000 credit cards in circulation will have incorrect cardholder
information on their magnetic strips.• 103,260 income tax returns will be processed incorrectly during the year.• 5.5 million cases of soft drinks produced will be flat.• 291 pacemaker operations will be performed incorrectly.• 3,056 copies of tomorrow’s Wall Street Journal will be missing one of the
three sections.
GIVING LESS THAN 100%
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How can an organisation encourage customer awareness in employees like cleaners, maintenance staff, storekeepers and pay administrators, whose work never brings them into contact with external customers?
What benefits should flow on from making backroom staff more aware of external customers? Is it possible for an organisation to provide excellent customer service without every employee having a job they feel makes a real contribution?
FOR INTERACTIVE DISCUSSION
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Effective and efficient information sharing at all levels within the
organisation is essential to fostering a customer focused work-place culture.
A customer focused culture is one in which excellent customer service is
accepted as the norm.
WORK-PLACE CULTURE
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WHO PAYS YOUR WAGES?
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Who pays for your equipment, machinery,computers, stationery?
Who pays the maintenance divisions’ wages?
Who pays the wages of the person who cleans the toilets?
FOR INTERACTIVE DISCUSSION
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Teams:• Have a shared purpose and goals• Are able to take advantage of collective
and shared skills of members
Effective teams have:• Strong leadership• Support for each other and the
organisation• The ability to work together to achieve
greater results than individuals working toward the same objectives
TEAMS
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CUSTOMER NEEDS, WANTS AND EXPECTATIONS
Need food what we must have
Want caviar andtruffles
what we would like
to haveExpectation chicken and
vegetableswhat we can
have
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In most instances, when customers make a purchase they have an
expectation that the purchase will be accompanied by an associated service of acceptable quality and standard.
This is called bundling.
PRODUCT SALE PLUS SERVICE
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Customer service can be defined as:
The range of help and support offered to customers before, during and after a sale has been made.
It begins with the first contact and only ends when the customer ceases interaction with you.
THE SERVICE FACTOR
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• First impressions• Moments of truth• Response skills• Communication / interpersonal skills• Active listening and questioning• Product knowledge• Conflict management• Problem solving • Negotiation• Last impressions• Professionalism.
Customer service ends only when the customer is satisfied
SERVICE COMPONENTS
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‘You get what you pay for.’
Customers purchase:• Features• Benefits
They want: • Value for money• The product/service bundle must
meet the customer’s value proposition
PERCEPTIONS OF VALUE
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Products and product descriptions have
attached features and benefits.
Customers do not purchase product features, they purchase benefits.
They ask:
• What’s in it for me?
• How will I benefit?
BENEFITS
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Relationships imply trust and dependability.
Effective internal and external customer relationships are the
key to business success.
CUSTOMER RELATIONSHIPS
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What level of customer service do you think you should receive from your internal suppliers?
What level do you consistently give your internal and external customers?
How do you know that they are happy with the service you provide?
FOR INTERACTIVE DISCUSSION
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Value adding comprises the actions an organisation or supplier takes to
ensure that customers perceive their products/services as value for money
-because they provide something extra.
Value added products and services contribute to relationship building
RETURN BUSINESS
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How can a business exploit, for example, old‑fashioned snobbery?
How can an intangible such as after‑sales service be made into a value added sales component?
FOR INTERACTIVE DISCUSSION
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Utilise the innovative and creative
talents of your employees to design
and develop methods by which your
organisation can improve/increase sales and profits.
INNOVATION
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Client/customer loyalty means that a client/customer retains some sense of
commitment to the seller; some notion of satisfaction that will cause them to return
on the next occasion when they want similar goods or services.
RELATIONSHIPS AND LOYALTY
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Your attitude and that of every person in the organisation determines the extent of
customer loyalty.
Treat every customer as an appreciating asset
Provide top quality as perceived by the customer
Build relationships
Create uniqueness
Under promise - over deliver
ATTITUDE
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Long term profit
EQUALS
revenue from continuing satisfied customer relationships
MINUScosts. (Tom Peters)
Monitoring, measurement and evaluation of processes and outputs are part of the continuous improvement cycle. If you do not monitor, measure and evaluate you will never know
how well, or how poorly the organisation is meeting its goals.
CUSTOMER INFORMATION
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Measurements• The results of customer feedback -
should be widely shared so that everyone in the organisation is aware of customer satisfaction levels.
• Post key customer satisfaction measures and the results of current surveys (internal and external) everywhere in the organisation.
Encourage self-monitoring by employees.
CURRENT INFORMATION
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Take care when designing and administering surveys
Target your respondents correctly
Ask the hard questions and act on the answers
SURVEYS AND RESULTS
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You are not the customer!
What the customer perceives as quality is not necessarily what the
supplier considers a quality product or service.
QUALITY PERCEPTIONS
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Every job description should include a qualitative description of the person-
connection to the customer.
Link role and task KPIs to customer service practice.
Use performance evaluations and appraisals to assess and improve customer orientation.
Recognise and reward high levels of internal and external customer service.
ENCOURAGE EXCELLENT CUSTOMER SERVICE
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ENCOURAGE YOUR CUSTOMERS TO COMPLAIN
WHEN CUSTOMERS COMPLAIN THANK THEM FOR DOING SO
DISSATISFACTION
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Never assume that because no-one is complaining everything is going well.
"Think of customer complaints as the voice of God and accept them."
Konosuke Matsushita
Matsushita Electric Industries
(National Panasonic) Japan.
COMPLAINTS – YOUR LIFELINE
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Plan to act on the data you collect.
Collecting data that is not used wastes time and resources.
Follow through on your plan
USING DATA
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ARE ALL YOUR CUSTOMERS AS VALUABLE AS EACH OTHER?
A POINT WORTH CONSIDERING IS WHETHER YOU NEED OR WANT
ALL THE CUSTOMERS YOU HAVE
IMPORTANCE
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Can you refuse to service unprofitable customers?
Can Telstra and Australia Post refuse to serve non - profitable customers?
Should you pay more attention to your bigger customers?
Why persevere with insignificant or unprofitable customers?
FOR INTERACTIVE DISCUSSION
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80 percent of profits are likely to come from 20 percent of
customers.
PARETO’S RULE
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What happens to customer service when the extraordinary
comes to be accepted as ordinary by the customer?
FOR INTERACTIVE DISCUSSION
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IS THE CUSTOMER ALWAYS RIGHT?
By virtue of the fact that the customer can choose not to use your product/service -
YES!
However, customer expectations are not always reasonable, or able to be serviced
by your organisation.
EDUCATE YOUR CUSTOMERS
EXPECTATIONS
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Customer service doesn’t just happen.
Good customer service is dependent on your employees - your most
valuable
asset
Look after your assets and they will look after your customers.
MANAGING CUSTOMER SERVICE
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KNOWLEDGE OF GOOD CUSTOMER PROCEDURES IS NOT INNATE
An effective induction and training program, matched to appropriate
performance appraisals will benefit you, your organisation and all the
customer supplier interface members.
COMPETENT STAFF
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Customer driven organisations are successful organisations in which:
Products, services and bundles are designed around customer interests and purchasing prospects
Internal customer service is recognised as being of equal importance as external customer service
Organisational plans and strategies for meeting customer needs and expectations are supported by management, staff, systems, technology and constant information gathering processes
Customer feedback is constantly sought, recorded and analysed as part of the continuous improvement cycle and to solve problems efficiently
Products and services are adjusted to meet customer expectations
Staff are trained and empowered to meet customer expectations and to provide excellence in customer service
Workplace culture supports quality and excellence at every
interface of the supplier-customer chain
SUMMARY