6 mba conceptual is ing the customer

8/3/2019 6 Mba Conceptual is Ing the Customer

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Conceptualizing the

Customer

Prof Michael Munkumba

MichaelMunkumba

Digitally signed by MichaelMunkumbaDN: CN = Michael Munkumba, C =US, O = ESAMIDate: 2007.03.14 14:22:49 +03'00'


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The Customer Platinum

Rule:

Do unto the customers as

they

Would have you do unto them


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Quotes

This is the age of

theNeverSatisfied CustomerRegis McKenna


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Quotes

The purpose of a business is to

create and to keep customers (Peter

Drucker , management consultant)

Customers are assets to be valued,developed and retained (Valarie &

Bitner 2003)


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Quotes

Rules of Radical Marketing

Love + Respect Your Customers!Hire only Passionate Missionaries!

Create a Community of Customers!Celebrate Craziness!Be insanely True to the Brand!

Sam Hill & Glenn Rifkin, Radical Marketing(e.g., Harley, Virgin, The Dead, HBS, NBA)


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Context Todays competitive environment is characterized

by

More sophisticated customers

Product proliferation

Shorter product development times & life

cycles Rapid changes in technology

More customized products Customers seeking emotional engagement


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Module Contents

The Customer paradigm shift

The shift drivers

CRM

The 10 commandments of CS

Defining a customer

Moments of truth

Best Practice


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Customer paradigm shift

The shift occurred around 1980

Until then, the organisation was

central, the customer peripheralThe Focus was purely internal

Organisations were highly centralised

Then Tom Peters, Walterman, Drucker

and others started writing revolutionary

philosophies


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Top Mgt

Managers

Frontline employees

Top

Mgt

Managers

Frontline employees

FROM

TOTh

eS

hift CUSTOMERS

CUSTOMERS


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Shift Drivers

Management Literature : e.g. Peters Books

Uncertainty due to changing environment

Competition due to liberalisation

Changing tastes and customer assertiveness


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Customer Relationship

Management- CRM

CRM can be defined as:

increasing the number of profitable

customers and

retaining those customers; with the purpose of maximizing their

contribution to the institutions profit


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CRM

Relationship management is aparadigm shift away from anacquisitions/transactions focus

towards a retention/relationship focuswith the goal of:

acquiring, satisfying, retaining and

increasing good customers


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CRM

CRM focuses on both human andcommercial values

CRM follows the following phases of

customer engagement: informing: this is what we are doing

Involving to: What do you think? Participation: What should we do?


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The New Paradigm

Customer lock - on

Flatter customer focussed structures

Quality consciousness

Listening to the customer

Innovation

Empowerment of the front-liners

Innovation and flexibility backstopping systems


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Customer Service

Customer service has been defined as:

everything an institution does and

everything it doesnt do to createpersonally pleasing memorableinteractions (PPMI) with the companysmany constituencies (Karr & Blohowiak

1998)

Th 10 d t fC t S i


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The 10 commandments of Customer Service

1 Ask customers what they want and give them2 Have systems that guarantee right, first time

3 Under-promise, over-deliver

4 When the customer asks the answer is always yes

5 Empower employees to handle complaints

6 Cherish complaints7 Measure everything

8 Pay people like partners

9 Show people respect

10Japanese them!


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Who is a Customer?

There are internal and external customers

There are trapped customers

There are apostles There are members

There are terrorists and defectors

Delighted, wowed


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Complaining Customers

Only 4% of the customers complain

96% vote with their feet 68% quit because of an attitude of indifference

by the owner, manager or some employee A dissatisfied customer will tell 8 to 10 others

1 in 5 will tell 20


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Complaining customers

95% will come back if the response is immediate

It costs 6 times more to win a customer than to retain oneCustomer focussed organisations average 12% returns

with market share growth of 6% p.a.


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Managing Customer Complaints

1 Apologise regardless

2 Restate the complaint to ensure you understand

3 Empathise with the customer and appreciate

their bringing the problem to you

4 Restitution. Do what ever it takes tosatisfy the customer

5 Follow up. Ensure all customers are satisfied

before they leave


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Moments of Truth

An opportunity for customers to make

judgement about the organisation

B tP ti


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Best PracticeToyota:

Dont just meet customer needs, exceed them

Dont just answer questions, anticipate them

Dont just do good work, provide an unparalleled service

Dont just work, work smarter I.e. team through teams

Dont just be courteous, make every customer feel special

Pay attention to detail

Fedex : 100 % satisfied customer at the end of

each transaction

BestPractice otherexamples


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Best Practiceother examples

1. KQ and the seat mix up, Nairobi

2. SAA and the missed flight, Dar

3. Hotel Carlton? And the housekeeping staff4. Kilaguni Lodge


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Govt. of Singapore

Connected CitizensSupporting Active Citizenry

Networked Government

Delighted Customerse-Services Advantage

3 Desired Outcomes3 Desired Outcomes

6 mba conceptual is ing the customer

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