Service Management

Specialization
Service Culture

Importance of the Customer

Version 1.0 – May 2012

Objectives

By the end of this session, students should be able to:

• Draw a concrete image of the customer as a

driver of business success

• Describe the connection between the development

of critical personal leadership and social
competencies to understanding the customer
Objectives

By the end of this session, students should be

able to:

• Recommend business practices that will

make customers happy
Introduction

This module identifies the customer as subject,

goal, objective, and condition that determines the
success of any effort towards providing excellent
customer service.

It was designed to equip students with an

understanding of the customer service mindset.
Customer Value

Direct Value
Customer contributes directly to “our” business

Direct Value:
• Transactions in a year? Revenue per
transaction? Revenue per year?
Customer Value

Example:

$21.95 subscription rate x 12 months = $263.40

total subscription / year

$263.40 + (200.00 average transaction per year

x 2) = $663.40 total revenue per year

$663.40 / 12 months = $55.28 / average worth

of transaction / month
Customer Value

Direct and Indirect Value

Direct Value:
• Direct Lifetime value?

$663.40/year* 15 years = $9,951.00 customer

lifetime value (15 years)
Customer Value

Indirect Value

• Value that the customer causes for us as a result

word-of-mouth, positive reviews, or referrals.
Customer Value

Indirect Value

Example:

$9,951.00 * 5 = $49,755.00 revenue / year for 5

referred customers

IF $9,951.00 * 1,500 customers = $14,926,500

from 1500 customers/year
Customer Value

$14,926,500 * 0.25 (realistic indirect value)=

$3,731,625 / year from 25% referrals

$3,731,625 + 14,926,500 = $18,658,125.00

/ year from combined direct and indirect values
of 1500 customers
Customer Value

Customer Types

Three Major Classifications:

1. In relation to the business

Internal - fellow employees and managers

within a place of business
Customer Value

Customer Types

Three Major Classifications:

1. In relation to the business

External - people and organizations who have

a need for your product or service and
purchased your products/services in exchange
for money
Customer Value

Customer Types

Three Major Classifications:

• In relation to support required

Novice – little to no experience with a product

Advanced – have understanding of
hardware/software
Customer Value

Customer Types

Three Major Classifications:

2. In relation to support required

Talkative – poor listeners who probably don’t

listen to directions
Passive – needs more guidance than most
customer types
Customer Value

Customer Types

Three Major Classifications:

2. In relation to support required

Special Needs – may have speech

impediments, hearing/visual difficulties
Demanding – quick to show authority,
demands action
Customer Value

Customer Types

Three Major Classifications:

3. Rapport-based

Stable/even-tempered – 70% of population,

dependable and honest, matter-of-fact
Logical/rational – 15% of the population,
readers of brochures and manuals, attention to
details
Customer Value

Customer Types

Three Major Classifications:

3. Rapport-based

Talkative/social – 10% of the population, may

take advise based on rapport
Doer/driver – Less than 5%, like to challenge
service personnel and expect technical
expertise
The Customer

As Value

Customers represent that part of a business that

adds to the company’s value proposition.
The Customer

As Goal

Goals specify what we want to achieve; in

recognizing customers as goals, we seek to align not
only with their expectations but with their ultimate
needs.
The Customer

In Customer Service

Discuss:

1. Identify and differentiate the different types of

customers.
2. What makes a customer important?
3. What is the relative value of each customer based
on the interactions BPOs establish every day?
The Customer

In Customer Service

Discuss:

4. Based on actions the company has taken to so far,

would you say that their methods are effective or
not? Why?
5. Who are the main stakeholders in a
customer-service oriented organization?
The Customer