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