The document discusses how to create a customer measurement and management system focused on gathering and utilizing customer information to enhance product quality and organizational value. It highlights the relationship between customer satisfaction, loyalty, and financial performance, using case studies of Volvo and Sears to illustrate significant shifts in profitability. Additionally, it compares the roles of external versus internal specialists in the data analysis process, emphasizing the importance of understanding customer perspectives.

1. CREATING A
CUSTOMER
MEASUREMENT AND
MANAGEMENT
SYSTEM
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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
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3. LENS OF CUSTOMER V/S LENS OF
ORGANIZATION
Value for
Money
People
Lens of
Organization
Products
Operations
Lens of
Customer
Convenience
Ambience
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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
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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
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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
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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
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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
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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
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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
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11. TRANSFORMATION OVER TIME
Role of
External
Specialist
Role of
Internal
Specialist
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12. An OD & Business Advisory
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