E3-E4 Management For internal circulation of BSNL only

Transcription

1 E3-E4 Management Customer Orientation

2 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 You can also visit the Digital Library of BSNL to see this topic

3 Agenda Fundamentals of Customer Orientation. How to Build Customer Orientation? Pro-active Customer care. Customer Orientation-self assessment.

4 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.

5 Major Components of Market Orientation Customer Orientation. Competitor Focus. Cross-functional Coordination/Inter functional Coordination.

6 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.

7 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.

8 Competitor focus Knowing about: Who are the competitors? What are their strengths, weaknesses, short-term and long-term capabilities? Competitive intelligence

9 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.

10 Service and customer satisfaction Understand the expectations of the customerstry to exceed them Retention of existing customer costs only about 1/5 th 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.

11 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.

12 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.

13 CUSTOMER NEEDS THE RIGHT PRODUCT AT RIGHT TIME AT RIGHT PLACE AT RIGHT PRICE

14 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.

15 CVM shifts the focus to managing the profitability of each customer over the life-time

16 CVM- the three steps: Right Customers (acquisition) Right relationship (development) Right retention (keeping valuable customers)

17 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.

18 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

19 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.

20 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

21 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.

22 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.

23 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.

24 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.

25 Proactive customer care-some Tips 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.

26 KEY TO SUCCESS PERSONALISE YOUR SERVICE. TREAT EVERY CUSTOMER DIFFERENTLY.

27 AN ORGANISATION MUST HAVE r PRODUCT CENTRIC APPROACH CUSTOMER CENTRIC APPROACH

28 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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