CUSTOM

ER
PERSPEC
TIVE
 CUSTOMER
PERSPECTIVE
Companies identify the customer and market segments in
which they have chosen to compete. These segments represent
the source that will deliver revenue component of the company’s
financial objectives. The customer outcome measures –
satisfaction, loyalty, retention, acquisition and profitability to
targeted customers and market segments. It also enables them
to identify and measure, explicity, the value proposition they will
deliver to targeted customers and market segments.
MARKET
SEGMENTATION
Strategy formulation process in depth
market research, should reveal the
different market or customers
segment.
Price
Some managers object
to choosing targeted
Quality customer segments.
They have never seen a
customer they didn’t
Functionality
like, and want to be able
DIMENSION to satisfy all customers
Image preferences.

But this approach runs

Reputation the risk of doing nothing
well for anybody. The
Relationship essence of strategy is
not just choosing what
to do it also requires
Service choosing what not to do.
CUSTOMER
CORE
MEASUREMEN
- Market Share
- Customer Retention
T GROUP.
-
-
Customer Acquisition
Customer Satisfaction
- Customer Profitability
Market Share
Measuring market share is
straightforward once the
tarheted customer group or
market segment has been
specified. Industry groups,
trade assosciations,
government statistics, and
other public source can
often provide estimates of
the total market size.
Customer
Retention
Clearly, a desirable way for
maintaining or increasing
market share targeted
customer segments is to
start by retaining existing
customers in those
segments. Beyond just
keeping customers, many
companies will want to
measure customer loyalty
by the percentage growth
of business with existing
customers
 Customer Customer Customer
Acquisitio Satisfactio Profitabilit
seeking ton
In general, companies Customer
grow their
business will have an
n
Satisfaction
One way to have
y
extremely
measures provide sastisfied
objective to increase their feedback on how
customers base in targeted customers ( and
well the company angry
segments. Could be
measure by either the is doaing. competitors ) is to
number of new customers or sell products and
the total sales to the services at very
customers in these low prices.
segments.
MEASURING
CUSTOMER
VALUE
- Product/Service attributes
- Customer relationship
PROPOSITION.
- Image and Reputation
 Product / Customer
Services Relationship
Attribute
Product and service The customer relationship
dimension includes the
attributes encompass the
functionality of the product/ delivery of the product/
service, its price, and its service to the customer,
quality. including the response and
delivery time dimension,
and how the customer feels
about purchasing from the
company.
 IMAGE AND
The image andREPUTATION
reputation dimension reflects the
intangible factors that attract a customer to a
company. Some companies are able, through
advertising and delivered quality of product and
service, to generate customer loyalty well
beyond tangible aspects of the product and
service.
The example is like The Marlboro man, The Pepsi
Generation.