Steve Dewar Ron Michel Whats In The Session
- Slides: 50
Steve Dewar Ron Michel
What’s In The Session 1. 2. 3. 4. 5. Customer Focus Vs Customer Value Customer Database Customer Satisfaction Measurement Attractive Customers So How Do We Put All This Into Practise? • A Challenge to the group
Customer Focus from a Road. Tek perspective vs Customer Value from a customer perspective
Customer Focus Highlights the importance to Road. Teks’ business success of determining and satisfying customers’ current and future needs, expectations and wants. To do this, Road. Tek acknowledges that our customers determines the quality of our products and services required and received.
Customer Focus Road. Tek continually interacts, communicates and seeks feedback from our customers, to improve our work systems and resultant outputs. Within Road. Tek, individuals and groups understand that each is a link in the work process which results in the delivery of a product or service to our customers. These links view their interactions with each other as a customer-supplier relationship.
Customer Focus Key Aspects • Our customer is the first and final arbiter of quality. • All work is a process. A process is the steps, tasks and interactions that are required to deliver a product or service which meets customer demands. • Alignment of work processes to continually meet customer needs (current and future) occurs. • Road. Tek direction, behaviour and culture, is actively shaped by seeking feedback (positive and negative) and translating it into the organisation. • The concept of customer-supplier is applied internally. • Customers’ future needs are identified and become the focus of improvement activities. • Maintaining and winning customers is done through continuous improvement.
Customer Value What are our customers’ perceptions of Road. Teks’ products and services, and their perceptions of our competitors? When we’re doing this well, we will have evidence that demonstrates customer loyalty and our success in anticipating and satisfying customers’ needs and expectations.
Customer Value Areas that might be considered include customers’ perception of Road. Tek with respect to: Capability of meeting specifications Defect, error, rejection rates Consistency, standardisation Maintainability Reliability On-time provision In-full provision Logistics information Delivery frequency Responsiveness and flexibility Product availability Accessibility of key staff Product training Sales support Product literature Technical support Awareness of customer problems Complaint handling Simplicity, convenience and accuracy of documentation Call answering Payment terms and financing Warranty and guarantee provisions Spare part availability Innovation in service quality Product development Service assurance/restoration - timeliness and completeness Complaint levels Warranty payments Re-work levels Accolades and awards received Customer relative perceived value of service Customer retention rates Customer advocacy statements Abandoned calls Consultation with industry and customer groups
Becoming Customer Focused is a step by step process …
This means … Step 1 Customers are known and segmented, their needs are explored. Market information is gathered. ` • Customers (internal and external) are known. • They are segmented into groups and data about them is collected and identified. • Contact is made. • Other relevant data regarding specific customer group preferences is collected. • The concept of internal customers is known. • Road. Teks’ performance relevant to its competitors is explored.
This means … Step 2 People in the organisation know the part they play in the process of meeting customer needs. • Customer needs are known, communicated and acted upon. • The internal customer concept and its impact on our external customer is recognised. • All areas of Road. Tek understand the external customer needs. • People understand the contribution they make in the process of satisfying customer needs.
This means … Step 3 Customer perceptions are sought and known. This knowledge is acted upon. • Customer feedback and participation is encouraged • Customer feedback is analysed and disseminated throughout Road. Tek • Processes that cause customer dissatisfaction are changed. • Organisation, communication and processes are shaped to reflect customer perception. • Internal customers’ perception of products and services are sought. • Regular communication with customers at many levels is established.
This means … Step 4 Processes are aligned and designed to meet customers’ needs and expectations • Processes are documented and understood. • Customer needs, perceptions and feedback are the indicators of performance measures and improvement activities. • Process output is measured by customer criteria. • There is a formal mechanism to capture customer needs from all sources which enables design of new products and services. • Road. Teks’ performance relevant to our competitors is known.
Step 5 The customer is the reason for our existence, this is recognised and acted upon throughout the organisation. This means … • Road. Teks’ performance in comparison to its competitors is known and acted upon. • Customers perception are communicated throughout Road. Tek. • The quality of our work processes at all levels provides a competitive and strategic advantage. • Customers are regularly invited to contribute in activities which improve our understanding of their needs.
Step 6 The organisation is adaptive to customers’ changing needs. This means … • Relationships with customers are ongoing to identify their future expectations and opportunities. • In a response to requests, formal and informal channels for information flow are established, recognised and used. • Road. Tek’s structure and processes recognise and support formal access to the customer. • The capability of customers’ existing systems is recognised • Customers’ special needs are met. • There is a formalised process to identify and translate customers’ latest needs into products and services.
Step 7 Our customers are advocates of our organisation. We are partners working towards a mutually beneficial future. This means … • Our customers’ preference for us is based on mutual competitive advantage. • Our business customers and our competitive advantage is quantifiable. • We have created partnerships with key customers to create a sustainable competitive advantage. • Overall our customers are advocates of our responsiveness and service.
Customer Database
Customer Database System Attributes: § Tool to support Road. Tek marketing activities § Detailed information on our customers § Details of key contacts in the customer organisation § Road. Tek Account Manager § Details of customer interaction
Customer Database System Details: § Very Basic System § QSI (standard system) § “Information on Customers” only § Compromise system § Future development to suit long term needs will occur as account management principles develop
Customer Satisfaction Measurement
Customer Satisfaction Measurement What is it? Why Measure it? What is Customer Value? How do we Design and Use the Road. Tek CSM Program
Customer satisfaction is… our customer's perception that Road. Tek has completely satisfied their expectations. Are customers of Road. Tek completely satisfied?
Why Measure Customer Satisfaction? The average business loses between 10% and 30% of its customers each year, often without knowing… Which customers they have lost When they were lost Why there were lost How much sales and profit customer decay has cost them Research has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one.
Why Measure Customer Satisfaction? The most powerful reason for doing anything in business is that it will increase profitability. Measuring customer satisfaction, and acting appropriately on the results, will increase profitability. NOT taking action allows our customer base to decay while permitting our competition to gain market share. Consider these statistics: Only 4% of all customers with problems complain. The average customer with a problem eventually tells 9 others. Satisfied customers tell 5 others about their good service or performance. Cost of acquiring a new customer is 5 to 7 times greater than retaining current ones. Cost of hiring and training a new employee is up to 10 times greater than retaining current ones.
Customer Value Customer perception of the value that Road. Tek provides is based on the following attributes: Organizational Product Service Future Behaviour
Design and Use of the Road. Tek CSM Program Defining the Objectives Develop the Research Design Identify the Attributes Questionnaire Design Using the Data Benefits of Using Satisfaction Surveys
Defining the Objectives Any road will do if you don't know where you want to go. . . Identify customer's priorities Learn customer's tolerance band Receive first-hand input on our performance Obtain performance ratings relative to our customer's priorities Learn performance ratings relative to our competitors‘ performance Establish priorities for improvement
Develop the Research Design & Identify the Attributes Research design is a fundamental part of a CSM process. Research design flows directly from the stated objectives Must be developed to ensure reliability Ability to provide consistent results Measures the original intent Eliminates bias Meaningful questions to the customer
Questionnaire Design Accurate identification of attributes that are important to the customer is the foundation upon which all subsequent parts of the CSM program are built. Product attributes Service attributes Organizational attributes Future behaviour attributes
Using the Data The voice of the customer is used to improve our business, both financially and operationally.
Benefits of Satisfaction Surveys Improve customer and employee loyalty React quickly to changes in the market Identify and capitalise on opportunities Beat the competition Retain or gain market share Increase revenue Reduce costs Successful organisations make satisfaction analysis an integral part of their business. They use statistics to translate responses into meaningful information to get the most out of their data. Surveys are a valuable tool that help us collect the information we need to understand, evaluate, and enhance customer satisfaction.
The Survey Form
The Survey Schedule
The Reporting System
Where we’ve come from… We had multiple Survey Forms We had no Survey Schedule We had no way of Analysing and Reporting performance Where we are now… We now have a single improved Survey Form used throughout Road. Tek We now have a planned and integrated Survey Schedule We now have an efficient Analysis and Reporting System Where we’re going… Publish Survey Form on H 21 Populate Survey Schedule on H 21 Publish Analysis and Reporting System on H 21 Where to from here… RMT Endorsement and Commitment RMT targets – level of surveying? desired rating? BU implementation by BDM’s.
Attractive Customers
So how do we put all this into practice?
You’ve all heard about it, now it’s your chance Here’s what you’re going to do…
Tonight for dinner you will be split into 2 groups of 12 One group will take over the actual running of the restaurant and bar The other group will dine as normal
The challenge for the restaurant and bar staff is to deliver ‘knock your socks off’ service
You will need to work out roles and responsibilities Consider the following; 4 observers, one at each table 4 bar/drinks staff 4 table service staff
You will have the complete run of the restaurant and bar You are responsible for the complete dining experience Good luck!
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