Bsbcus401 a.ppt overview introduction

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Bsbcus401 a.ppt overview introduction

  1. 1. CUSTOMER FOCUSSuccessful organisations are customer focused! They plan to meet customer needs, wants and expectations. 1
  2. 2. THE CUSTOMER DRIVEN ORGANISATION Escalating environmental change requiring more imagination/intellect/ creativity. De-construction/ Structuring products/service Entrepreneurial decentralisation- around customer interests. managers and effective resource employees. and information Effective internal sharing. supplier customer PERPETUAL REVOLUTION chains. Point of difference.Encouragement Competitive and reward edge. Current systems for and future creativity and success. Internal and innovation. external NEW IDEAS relationships/ networks. Legislative Market research. Feedback. compliance Plans and strategies for and ethical meeting and anticipating practice. customer interests. Sustainability. 2
  3. 3. PITFALLSCOMPLACENCYKILLS BUSINESS! 3
  4. 4. CUSTOMERSCustomers are people, work-teams, businesses or otherorganisations which utilise goods and services fromanother. 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. 4
  5. 5. CHANGING ATTITUDESThe customer, not the organisation, should determine product style , product quality and the service offered. 5
  6. 6. MARKET IDENTIFICATION Market research and analysis – vital activities –identify your customers, their needs and their prospective purchasing intentions 6
  7. 7. ASK THE CUSTOMERNever assume that you know what the customer wants or will buy. 7
  8. 8. THE SUPPLIER/CUSTOMER CHAIN Customer research Product design INTERFACE Supply/sale/delivery S Supply/sale/delivery Other inputs and constraints EndRefining Manufacturing Manufacturing Wholesale Retail useroperations or processing or processing operations operations operations operations Internal customers/suppliers Stakeholder/shareholder customer interests INTERFACE S 8
  9. 9. EMPLOYEES AND SHAREHOLDERSOrganisations 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. 9
  10. 10. CUSTOMER TYPES Customers are either external or internal to your organisation.External customers buy or use the goods andservices of your organisation and are notemployed by or directly associated with theselling organisation.Internal customers are the people, groups orteams in an organisation to whom completedwork, resources or information is passed byfellow employees. 10
  11. 11. GIVING LESS THAN 100%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. 11
  12. 12. FOR INTERACTIVE DISCUSSIONHow can an organisation encouragecustomer awareness in employees likecleaners, maintenance staff,storekeepers and pay administrators,whose work never brings them intocontact with external customers?What benefits should flow on frommaking backroom staff more aware ofexternal customers?Is it possible for an organisation toprovide excellent customer servicewithout every employee having a jobthey feel makes a real contribution? 12
  13. 13. WORK-PLACE CULTUREEffective and efficient information sharing atall levels within the organisation is essentialto fostering a customer focused work-place culture.A customer focused culture is one in whichexcellent customer service is accepted as the norm. 13
  14. 14. WHO PAYS YOUR WAGES? 14
  15. 15. FOR INTERACTIVE DISCUSSIONWho pays for your equipment,machinery,computers, stationery?Who pays the maintenance divisions’ wages?Who pays the wages of the person who cleansthe toilets? 15
  16. 16. TEAMSTeams:• Have a shared purpose and goals• Are able to take advantage of collective and shared skills of membersEffective 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 16
  17. 17. CUSTOMER NEEDS, WANTS AND EXPECTATIONSNeed food what we must haveWant caviar and what we would truffles like to haveExpectation chicken and what we can vegetables have 17
  18. 18. PRODUCT SALE PLUS SERVICEIn most instances, when customers make apurchase they have an expectation that the purchase will be accompanied by an associated service of acceptable quality and standard. This is called bundling. 18
  19. 19. THE SERVICE FACTORCustomer service can be defined as:The range of help and support offered tocustomers before, during and after a salehas been made.It begins with the first contact and only endswhen the customer ceases interaction withyou. 19
  20. 20. SERVICE COMPONENTS• 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 20
  21. 21. PERCEPTIONS OF VALUE ‘You get what you pay for.’Customers purchase:• Features• BenefitsThey want:• Value for money• The product/service bundle must meet the customer’s value proposition 21
  22. 22. BENEFITS 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? 22
  23. 23. CUSTOMER RELATIONSHIPS Relationships imply trust and dependability. Effective internal and externalcustomer relationships are the key to business success. 23
  24. 24. FOR INTERACTIVE DISCUSSIONWhat level of customer servicedo you think you should receivefrom your internal suppliers?What level do you consistentlygive your internal and externalcustomers?How do you know that they arehappy with the service youprovide? 24
  25. 25. RETURN BUSINESS Value adding comprises the actions anorganisation 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 25
  26. 26. FOR INTERACTIVE DISCUSSIONHow can a business exploit,for example, old‑fashionedsnobbery?How can an intangible suchas after‑sales service bemade into a value addedsales component? 26
  27. 27. INNOVATIONUtilise the innovative and creativetalents of your employees to designand develop methods by which yourorganisation can improve/increase sales and profits. 27
  28. 28. RELATIONSHIPS AND LOYALTY Client/customer loyalty means that a client/customer retains some sense of commitment to the seller; some notion ofsatisfaction that will cause them to return on thenext occasion when they want similar goods or services. 28
  29. 29. ATTITUDE Your attitude and that of every person in theorganisation determines the extent of customer loyalty. Treat every customer as an appreciating assetProvide top quality as perceived by the customer Build relationships Create uniqueness Under promise - over deliver 29
  30. 30. CUSTOMER INFORMATION Long term profit EQUALS revenue from continuing satisfied customer relationships MINUS costs. (Tom Peters)Monitoring, measurement and evaluation of processes and outputsare 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. 30
  31. 31. CURRENT INFORMATIONMeasurements• 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. 31
  32. 32. SURVEYS AND RESULTS Take care when designing and administering surveys Target your respondents correctlyAsk the hard questions and act on the answers 32
  33. 33. QUALITY PERCEPTIONS You are not the customer! What the customer perceives as quality isnot necessarily what the supplier considers a quality product or service. 33
  34. 34. ENCOURAGE EXCELLENT CUSTOMER SERVICE Every job description should include a qualitativedescription 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. 34
  35. 35. DISSATISFACTIONENCOURAGE YOUR CUSTOMERS TO COMPLAINWHEN CUSTOMERS COMPLAIN THANK THEM FOR DOING SO 35
  36. 36. COMPLAINTS – YOUR LIFELINE 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. 36
  37. 37. USING DATA Plan to act on the data you collect.Collecting data that is not used wastes time and resources. Follow through on your plan 37
  38. 38. IMPORTANCEARE ALL YOUR CUSTOMERS AS VALUABLE AS EACH OTHER?A POINT WORTH CONSIDERING IS WHETHER YOU NEED OR WANTALL THE CUSTOMERS YOU HAVE 38
  39. 39. FOR INTERACTIVE DISCUSSIONCan you refuse to serviceunprofitable customers?Can Telstra and Australia Postrefuse to serve non - profitablecustomers?Should you pay more attention toyour bigger customers?Why persevere with insignificant orunprofitable customers? 39
  40. 40. PARETO’S RULE80 percent of profits are likely to come from 20 percent of customers. 40
  41. 41. FOR INTERACTIVE DISCUSSION What happens to customer service when the extraordinary comes to beaccepted as ordinary by the customer? 41
  42. 42. EXPECTATIONS 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 42
  43. 43. MANAGING CUSTOMER SERVICECustomer service doesn’t just happen.Good customer service is dependent onyour employees - your most valuable assetLook after your assets and they will look after your customers. 43
  44. 44. COMPETENT STAFF KNOWLEDGE OF GOODCUSTOMER PROCEDURES IS NOT INNATE An effective induction and training program, matched to appropriateperformance appraisals will benefit you, your organisation and all the customer supplier interface members. 44
  45. 45. SUMMARYCustomer driven organisations are successful organisations in which:Products, services and bundles are designed around customerinterests and purchasing prospectsInternal customer service is recognised as being of equal importanceas external customer serviceOrganisational plans and strategies for meeting customer needs andexpectations are supported by management, staff, systems,technology and constant information gathering processesCustomer feedback is constantly sought, recorded and analysed aspart of the continuous improvement cycle and to solve problemsefficientlyProducts and services are adjusted to meet customer expectationsStaff are trained and empowered to meet customer expectations andto provide excellence in customer serviceWorkplace culture supports quality and excellence at everyinterface of the supplier-customer chain 45

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