CHAPTER 3

CUSTOMER
FOCUS
DAISY G. JURILLA
 BUILDING A CUSTOMER-
FOCUSED ORGANIZATION
Creating a CFO takes hard work and
discipline.
 (good policies, good people, good
processes)
Example: Deer Valley Ski Resort
 “Our goal is to make each guest feel like a winner”.
-Bob Wheaton-
VP and General Manager
 BUILDING A CUSTOMER-
FOCUSED ORGANIZATION
An organization fosters customer
satisfaction and engagement by…
 developing trust,
 communicating with customers,
 and effectively managing the interactions
and relationships with customers through
its processes and its people.
Four Key Processes of CFO
1. Making sincere commitments to
customers
2. Ensuring quality contact
- moment of truth
- Every click is a moment of truth
-Google: Zero Moment of Truth
- Customer Contact Requirements
 Four Key Processes of CFO
3. Selecting and developing
customer contact employees
4. Managing complaints and service
recovery
-unhappy customers
 Complaints can adversely affect business if not dealt with
effectively
 Opportunities for improvement
 Service Recovery Steps : CARE, LATTE
 Managing Customer Relationships
o Excellent organizations foster close
relationships with customers that lead
to high levels of satisfaction and loyalty.
o strategic partnerships and alliances

o using technology

o Example: Bank of Monreal

  Customer-Focused
 Strategic Partnerships Technology and Analytics
and Alliances  Technology can greatly
 Customer-supplier
enhance an organization’s
partnerships ability to leverage
customer-related
 Involvement of customer information and provide
in *product or service improved customer
design service.
* delivery processes  Use Advanced Analytics –
to “mine” and understand
customer data
 Example: Tsutaya Online
 Measuring Customer Satisfaction
and Engagement
Feedback
 Standardized surveys
Informal discussions
Focus group discussions
Online Analytical processing
 An effective customer satisfaction
measurement system results in reliable
information about customer ratings of
specific product and service features
and about the relationship between
these ratings and the customer’s likely
future market behavior.
Customer Satisfaction Measures
1. Product attributes
Product quality
Product performance
Usability
Maintainability
Customer Satisfaction Measures
2. Service attributes
 Attitude
 Service time
 On-time delivery
 Exception handling
 Accountability
 Technical support
Customer Satisfaction Measures
3. Image Attributes
Reliability

 Price

4. Overall satisfaction measures

Businesses often rely on third parties to conduct blind surveys to

determine who key competitors are and how their products and services
compare.
Competitive comparisons often clarify how improvements in quality
can translate into better customer satisfaction or whether key quality
characteristics are being overlooked.
DESIGNING SATISFACTION SURVEYS
1. Determine its purpose
2. Who should conduct the survey
3. Select the appropriate survey
instrument
4. Design the reporting format and the
data entry methods
Analyzing and Using Customer
Feedback
One way to evaluate customer
satisfaction and use it effectively
is to collect information on both
the importance and
performance.
Why Many Customer Satisfaction Efforts
Fail? (A. Blanton Godfrey)
 1. Poor measurement schemes
 2. Failure to identify appropriate quality dimensions
 3. Failure to weight dimensions appropriately
 4. Lack of comparison with leading competitors
 5. Failure to measure potential and former customers
 6. Confusing loyalty with satisfaction
Commonly used factors to measure customer
loyalty
 Overall satisfaction
 Likelihood of a first-time purchaser to repurchase
 Likelihood to recommend
 Likelihood to continue purchasing the same products or
services
 Likelihood to purchase different products or services
 Likelihood to increase frequency of purchasing
 Likelihood to switch to a different provider
Commonly used factors to measure customer loyalty
Customer Perceived
Net Promoter Score (NPS) Value (CPV)

 Developed by Fred
 Measures how customers
assess benefits (product
Reichheld, Bain & Co. and performance, ease of use, or
Satmetrix time savings against cost
 NPS is claimed to  CPV measurement includes
correlate strongly with potential buyers
market and revenue
 “What benefits are important
to you? How well do you
growth believe that each product or
 “What is the likelihood supplier will deliver those
benefits?”
that you would
recommend us”
“Without customers, you don’t
have a business”

THANK YOU!