CREATING A
CUSTOMER
MEASUREMENT AND
MANAGEMENT
SYSTEM
1
PURSUING SUCCESS THROUGH CUSTOMER
MEASUREMENT AND MANAGEMENT
GATHER CUSTOMER
INFORMATION

BUILD
ORGANIZATIONAL
VALUE
USE I...
LENS OF CUSTOMER V/S LENS OF
ORGANIZATION

Value for
Money

People
Lens of
Organization

Products
Operations

Lens of
Cust...
LINKING QUALITY TO FINANCIAL
PERFORMANCE
INTERNAL
QUALITY

EXTERNAL
QUALITY AND
SATISFACTION

CUSTOMER
LOYALTY AND
RETENTI...
VOLVO AND SEARS WENT
THROUGH TREMENDOUS
CHANGES WITH RESPECT
TO THEIR CUSTOMER
ORIENTATION WHICH
FINALLY LED TO IMMENSE
CH...
VOLVO’S MODEL OF FACTORS
AFFECTING FINANCIAL PERFORMANCE
Improved
Internal Quality

Improved
External Quality

Improved
Pr...
THE EMPLOYEE-CUSTOMER-PROFIT
CHAIN AT SEARS
Customer
Recommendations
Service
(Helpfulness)

Attitude
About Job

Customer
I...
STRATEGIC SATISFACTION MATRIX
HIGH IMPACT AND
STRONG
PERFORMANCE
Maintain or improve
performance Competitive
advantage

LO...
CREATING A CUSTOMER MEASUREMENT
AND MANAGEMENT SYSTEM
Identifying
the Purpose
(Strategy
Planning)

From
Information
to Dec...
EXTERNAL SPECIALISTS V/S INTERNAL
SPECIALISTS
EXTERNAL
SPECIALIST

Offers specific skills
related to
collecting and
analyz...
TRANSFORMATION OVER TIME
Role of
External
Specialist

Role of
Internal
Specialist
11
An OD & Business Advisory
www.trellisadvisory.com
Follow us @trellisadvisory
Write to us at info@trellisadvisory.com

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Creating a Customer Management System

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With an effective customer measurement and management system, you can build organizational value. To do so, you will continually pursue three key activities: (1) gather customer information (2) spread that information throughout the organization and (3) use the information to maintain, improve and innovate in products and processes.

This presentation uses some common examples and case study of Customer management and measurement from Volvo and Sears.

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Creating a Customer Management System

  1. 1. CREATING A CUSTOMER MEASUREMENT AND MANAGEMENT SYSTEM 1
  2. 2. PURSUING SUCCESS THROUGH CUSTOMER MEASUREMENT AND MANAGEMENT GATHER CUSTOMER INFORMATION BUILD ORGANIZATIONAL VALUE USE INFORMATION TO MAINTAIN, IMPROVE, OR INNOVATE IN PRODUCTS AND PROCESSES SPREAD THAT INFORMATION THROUGHOUT THE ORGANIZATION 2
  3. 3. LENS OF CUSTOMER V/S LENS OF ORGANIZATION Value for Money People Lens of Organization Products Operations Lens of Customer Convenience Ambience 3
  4. 4. LINKING QUALITY TO FINANCIAL PERFORMANCE INTERNAL QUALITY EXTERNAL QUALITY AND SATISFACTION CUSTOMER LOYALTY AND RETENTION FINANCIAL PERFORMANCE Production Processes Benefits offered by products and services as against cost Customer’s intention to buy Cost Saving Maintenance Processes Conclusions drawn by the customer about the company Customer’s intention to repeat purchase Revenue Growth 4
  5. 5. VOLVO AND SEARS WENT THROUGH TREMENDOUS CHANGES WITH RESPECT TO THEIR CUSTOMER ORIENTATION WHICH FINALLY LED TO IMMENSE CHANGES IN THE COMPANY’S PROFITABILITY AND SALES 5
  6. 6. VOLVO’S MODEL OF FACTORS AFFECTING FINANCIAL PERFORMANCE Improved Internal Quality Improved External Quality Improved Productivity Customer Satisfaction Cost Reductions Customer Loyalty Improved Profitability 6
  7. 7. THE EMPLOYEE-CUSTOMER-PROFIT CHAIN AT SEARS Customer Recommendations Service (Helpfulness) Attitude About Job Customer Impression Employee Behavior Attitude About Company Return on Assets, Margins, Revenue Growth Merchandise (Value) Employee Retention Customer Retention 7
  8. 8. STRATEGIC SATISFACTION MATRIX HIGH IMPACT AND STRONG PERFORMANCE Maintain or improve performance Competitive advantage LOW IMAPCT AND WEAK PERFORMANCE Inconsequential – Do not waste resources HIGH IMPACT AND WEAK PERFORMANCE Focus improvements here – Competitive vulnerability 8
  9. 9. CREATING A CUSTOMER MEASUREMENT AND MANAGEMENT SYSTEM Identifying the Purpose (Strategy Planning) From Information to Decisions (Priority Setting) From Data to Information (Data Analysis) A Customer Measurement and Management System Building the “Lens“ of the Customer (Qualitative Research) Building the QualitySatisfaction Loyalty Survey 9
  10. 10. EXTERNAL SPECIALISTS V/S INTERNAL SPECIALISTS EXTERNAL SPECIALIST Offers specific skills related to collecting and analyzing customer data Apt to be a necessity early on in the process. INTERNAL SPECIALIST Enables direct contact with the customer – critical to customer information Takes ownership of the system 10
  11. 11. TRANSFORMATION OVER TIME Role of External Specialist Role of Internal Specialist 11
  12. 12. An OD & Business Advisory www.trellisadvisory.com Follow us @trellisadvisory Write to us at info@trellisadvisory.com 12

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