CHAPTER 8

CUSTOMER
VALUE
STRATEGY
 IDENTIFYING
CUSTOMERS
There are two distinct types of customers
namely:
INTERNAL
CUSTOMERS
Internal customers are within the company. They
are the colleagues working together for delivering a
service or product for the external.
EXTERNAL
CUSTOMER
External Customer may be an individual or an
enterprise that hires or purchases the product or
services from another person or business in
exchange of money.
EXTERNAL CUSTOMERS CAN BE
DEFINED IN MANY WAYS, SUCH AS:
1. The one who use the product or service.

2. The one who purchases the product or service.

3. The one who influences the sale of the product

or service.
ONE OF THE MOST IMPORTANT
FACTORS FOR THE SUCCESS
OF AN ENTERPRISE IS ITS
CUSTOMERS.
Without them, a business cannot exist.
CUSTOMER
SATISFACTION
It is not an absolutely measures but
more of a feeling or attitude.

It enhances Customer loyalty, which is the feeling of

attachment to affection for a company’s people, product or
services.
Loyalty generates constant purchases
and increased revenues, therefore
leading to organizational excellence.
Satisfaction can be expressed in many ways, like positive
word of mouth, giving compliments to the service provider
and brand loyalty to the service organization.
CUSTOMER
SATISFACTION
Customer Satisfaction is defined as the number of customers,
or percentage of total customers, whose reported experience
with a firm, its products or its services exceeds specified
satisfaction goals.
CUSTOMER DELIGHT ARISES WHEN PERCEPTIONS
EXCEED EXPECTATIONS.
1. Uses methods for determining and monitoring external
customer perceived quality and value.
2. Uses customer feedback to improve product/service quality.
3. Handles complaints, resolve them and uses complaint
information for quality improvement and prevention of the
recurrence of problems.
4. Measures performance against customer targets.
5. Compares its customer satisfaction results with that of main
competiton
 A SUMMARY OF WAYS TO IMPROVE INTERNAL
CUSTOMER SATISFACTION IS GIVEN BELOW:
Treat employees as the company would treat its
customers
Share the company vision
Surpass their expectations
Take feedback and suggestions
Show appreciation for good work
 CUSTOMER
SATISFACTION
METHODS
 CUSTOMER SATISFACTION
Encouraging face to face dealing with customer

Respond to messages promptly and keep the clients

informed
Being friendly and approachable by customers

Having a clearly defined customer service policy

APPROACHES TO
CUSTOMER
SATISFACTION
1. Regular Customer feedback system
2. Market Research
3. New or Last Customer survey
4. Focus Groups
5. Customer Visits
6. Front Line personnel
7. Critical Incidents technique
DETERMINANTS OF
CUSTOMER
SATISFACTION
1. Key Indicators for Physical Products
Reliability
Aesthetics
Adaptability
Usability
Functionability
Appropriateness
2. Key Indicators for Services
Friendliness/Courteousness of employees
Safety/Risk of Service
Billing/Invoicing procedure
Responsiveness to Requests
Appearance of Physical Facilities
Approchability of the Service Provider
Willingness to Listen to Customer
Honesty and an ability to communicate in clear language
CUSTOMER FOCUS
CUSTOMER
FOCUS
Focusing on the customer involves designing products or
services that meet or exceed the customers’ expections.

This involves the product itself, its functionality, attributes,

convenience and even the means by which the information
about a product is received by a client.
•CUSTOMER SERVICE
• CUSTOMER SERVICE
QUALITY GOALS
• RELIABILIT Y
•COMPETENCE
•DELIVERY
•SOLUTIONS 
 CUSTOMER SERVICE
Customer service operations are designed to
keep customers while protecting the
organization.
 CUSTOMER SERVICE
QUALITY GOALS
Customer service means helping customers solve
problems. To carry out this function effectively,
customer service has to be easily accessible,
knowledgeable, reliable, and deliver results.
 RELIABILIT Y
The quality assurance system can compare
w hat the company promises the customer to
w ha the customer expects and what the
customer service delivers.
 COMPETENCE
Customers expect competent delivery of their
services, and the definition of quality assurance
includes tracking competence.
 DELIVERY
Customer service delivery is typically over the
phone or other means of electronic
communication.
 SOLUTIONS
Customers are mainly interested in solutions
to their problems.
THANK YOU