Customer OrientationCustomer Orientation
E3-E4 Management
18-03-2011 For internal circulation of BSNL only
WELCOME
• This is a presentation for the E3-E4 Management
for all streams for the Topic:
Customer Orientation
• Eligibility: Those who have got the Up gradation
from E3 to E4.
• This presentation is last updated on 18-3-2011.
• You can also visit the Digital Library of BSNL to
see this topic.
18-03-2011For internal circulation of BSNL only
Agenda
� Fundamentals of Customer Orientation.
� How to Build Customer Orientation?
� Pro-active Customer care.
� Customer Orientation-self assessment.
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Fundamentals
�Market oriented Culture leads to value-creating
capabilities and sustainable competitive
advantage.
�Committed to create superior Customer value.
�Collecting and coordinating information about
customers.
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Major Components of Market Orientation
� Customer Orientation.
� Competitor Focus.
� Cross-functional Coordination/Inter functional
Coordination.
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Customer Orientation
• Understand the (buyer’s) value chain
Over a time.
• Cost and revenue dynamics of immediate
Customer as well as markets beyond.
• More time for customers and constant touch
with them.
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Customer Orientation
• Improved Customer Satisfaction -as an
objective and commitment.
• To maintain relationships to deliver superior
value, monitor the sales as well as the after
sales service.
• motivated employees are to be there
-special recruitment, training and retention of
such personnel.
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Competitor focus
• Knowing about:
� Who are the competitors?
� What are their strengths, weaknesses,
short-term and long-term capabilities?
�Competitive intelligence
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Inter functional coordination
• Coordination among various departments within.
• Coordination of the personnel and all other
resources of the company - to focus for creating
value for the customers.
• Role identification by everyone and to act
accordingly
• Horizontal structures as small project teams for
quick movements - to focus on building value
such as time to market new products/services.
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Service and customer satisfaction
• Understand the expectations of the customers-
try to exceed them
• Retention of existing customer costs only
about 1/5th as acquisition of new customer.
• Declare Customer Satisfaction as the main
objective of the organization and create
awareness of the same amongst the employees.
• Monitor the Customer Satisfaction.
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Developing Customer Orientation
• Develop a Customer oriented culture
• Empowering the various levels appropriately , to
expedite decision making- result in good
initiatives and strengthen the value chain.
• Top management-to facilitate and provide policy
guidelines and broad framework
• Encourage internal communication: upwards and
learning.
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Steps To Build Customer Orientation
• Customer need assessment.
• Tracking and Analysis of competitor strategies.
• Customer segmentation.
• Developing and launching new products/services
with better Customer Value management .
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THE RIGHT PRODUCT
AT
RIGHT TIME
AT
RIGHT PLACE
AT
RIGHT PRICE
CUSTOMER NEEDS
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Customer Value Management- CVM
• CVM is managing each Customer relationship
with the goal to maximize the lifetime profit from
the entire customer base.
• Increasing retention, reducing risk and
amortizing acquisition cost over a longer and
more profitable period.
• Increasing the aggregate value of customer base
through managing individual customer.
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CVM
• – shifts the focus to
“managing the profitability of
each customer over the life-time”
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CVM- the three steps:
• Right Customers (acquisition)
• Right relationship (development)
• Right retention (keeping valuable customers)
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Acquisition of the right customers
• Identifying and acquiring the customers who will
be most valuable to our business.
• Repeated small purchases also indicative of a
long-term, valuable customer.
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Development of right relationship
• Right touch at the right time- not too less, not too
much of personal attention.
• No confusing nor conflicting offers.
• Know the LTV (Life Time Value) of the
customers.
• LTV=purchase size x frequency x duration
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Retention of right customers
• Retaining the right customers, not every customer
• Retention of customers with high LTV.
• Need not focus on unprofitable customers.
Giving equal weightage to those who do high
volume purchase in a short span as well as to
those who do modest purchase repeatedly and
are loyal.
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CVM tips:
• Coordination among all customer touch points
for consistent but not redundant and uniform
customer experience
• Aggregate and consolidate all information within
and outside the organization
• Personalize the experience and value
proposition for each customer
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CVM tips:
• Broad awareness about the importance of the
customer.
• Improve the product development /service
delivery process.
• Deliver value added and new services which
cannot be easily replicated.
• Be innovative and creative.
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Proactive customer care-objectives:
“Go to the customers before they come to you”
� Increases the long-term value and loyalty.
� Increases customer retention.
� Increases revenue and explores new revenue
streams.
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Proactive customer care
� Increases job satisfaction and thus the retention
of employees.
� Increases retention of the customers as well as
the agents.
�Mitigates the impact of telemarketing regulations.
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Proactive customer care-Some Tips
�Develop suitable strategy –in tune with your
business and the customer needs
�Closely observe the customers;
accordingly leverage their buying patterns
�Assess the CLTV, segment the customers as
per that, focus more on profitable customers.
�Be creative and provide new services.
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�Match the agents and the customers, streamline
the interactions and ensure high-quality
experience
�Train the agents on how to up-sell and cross-sell
new offerings.
�Balance between containing cost and delivering
value.
�Ensure customer loyalty by building intimacy.
Proactive customer care-Some Tips
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KEY TO SUCCESS
�PERSONALISE YOUR SERVICE .
�TREAT EVERY CUSTOMER DIFFERENTLY.
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AN ORGANISATION MUST HAVE
PRODUCT CENTRIC APPROACH
CUSTOMER CENTRIC APPROACH
rrrr
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Sum Up
• Organization has to develop a Customer
Oriented Culture.
• Innovative strategies are to be formulated for
retention of the high valued customers.
• Identify the profitable customers wrt the LTV.
• CRM, CVM and Pro-active Customer Care are
some methods to be adopted for customer
orientation.
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29For internal circulation of BSNL only