6 focusing on customers

8/8/2019 6 Focusing on Customers

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Focusing On CustomersFocusing On CustomersAssoc. Prof. Ir. Dr. Cheong KY

School of Materials & Mineral Resources Engineering

Engineering Campus

UNIVERSITI SAINS MALAYSIA


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IntroductionIntroduction

y To create satisfied customers, the

organization needs to identify customers

needs, design the production and service

systems to meet those needs, andmeasure the results as the basis for

improvement.


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Importance of CustomerImportance of Customer

Satisfaction & LoyaltySatisfaction & Loyaltyy Customers wants and needs drive

competitive advantages, and statistics

show that growth in market share is

strongly correlated with customersatisfaction.

y A firm cannot create loyal customers

without first creating satisfied customers.


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y The econometric model used to produce

American Customer Satisfaction Index

(ACSI) links customer satisfaction to its

determinants:

customer expactations, preceived quality, and

preceived value.

y Customer satisfaction, in turn, is linked tocustomer loyalty, which has an impact on

profitability.


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Creating Satisfied CustomersCreating Satisfied Customers

y Actual quality vs preceived quality

y Many organizations still focus more on

processes and products from an internal

perspective, rather than taking the

prespective of the external customer.


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Identifying CustomersIdentifying Customers

y The natural customer-supplier linkages

among individuals, departments, and

functions build up the chain of customers

throughout an organization that connectevery individual and function to the

external customers and customers, thus

characterzing the organizations valuechain.


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y Customer segmentation might be based

on geography, demographic factors, ways

in which products are used, volumes, or

expected levels of service.

y Segmentation allows a company to

priotize customer groups.


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Gathering & Analyzing CustomerGathering & Analyzing Customer

InformationInformationy Companies uses a variety of methods or

listening posts to collect information

about customer needs and expectations,

their importance, and customersatisfaction with the companys

performance on these measures.


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Customer Relationship ManagementCustomer Relationship Management

y An organization builds customer loyalty

by developing trust, communicating with

customers, and effective managing the

interactions and relationships withcustomers through approaches and its

people.


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y Excellent customers relationship

management depends on 5 aspects:

Accessibility and commitments

Selecting and developing customer contact

employee

Relevant customer contact requirement

Effective complaint management Strategic partnerships and alliances


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Measuring Customer SatisfactionMeasuring Customer Satisfaction

y An effective customer satisfaction

measurement systems result in reliable

information about customer ratings of

specific product and service features andabout the relationship between these

ratings and the customers likely future

market behaviour.

6 focusing on customers

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