SERVICE CULTURE

Session 18: Importance of Customer

Session 19: Interaction with Customer

Session 20: Dealing with Customer

GROUP 7

Imperial, Christine D.

Irinco, Mary Anna

Llarenas, Jhonie

Magpantay, Nicolle

Velasco, Aimie Noreen C.

Villafuerte, Maria Reina Gabrielle P.

BSBA-HRDMMSM 3-1D
PROF. MELINDA DEL MUNDO DE GUZMAN
FEBRUARY 26, 2018
 SESSION 18: Importance of Customer

CUSTOMER VALUE
Reported by: Velasco, Aimie Noreen C.

Customers are the heartbeat of all businesses; therefore, developing a healthy relationship with
them is crucial to the success of your business. They have an overwhelming abundance of
choice. They have high expectations and little loyalty to spare if brands fail to meet them that’s
why customer value is important.

Customer Value
Customer value is what they get after the purchase. It is the difference between what a
customer gets from a product, and what he or she has to give in order to get it. This customer
value is weighed against the customer values assigned for similar products and services that
would provide a similar benefit. Consumers will typically purchase the item with the highest
customer value among all offerings in the marketplace. Value does not refer to price. It refers
to the perceived benefits stood to be gained in the context of price.

2 Ways of Viewing Customer Value

1. How they contribute to the business
2. How they define the value they receive from making a product or service purchase.

2 Types of Customer Value

o Direct Value - customer directly contributes to the business.

It can be computed by:

number of transaction each year X average revenue per month = Direct Customer
Value

o Indirect Value - value that customer causes as a result of word-of-mouth,

positive reviews and referrals.

Taking great care of your customers by satisfying them can bring you higher revenue.
Conversely, that’s much money the business has to lose if your customers are unhappy and
unsatisfied.
 CUSTOMER TYPES & THE CUSTOMER

Reported by: Villafuerte, Maria Reina Gabrielle P.

Customer Types

Customer may be classified as:

 Internal - employees who receive goods or services produced elsewhere in an

organization as inputs to their work; these are fellow employees and managers within a
place of business.
 External - someone who uses or is directly affected by a company's products; people
and organizations who have a need for your product or service and purchased your
products/services i exchange for money.

Another classification is based on customer's technical expertise:

 Novice - little or no experience with a product.

 Advanced - have a good understanding of hardware and peripherals.
 Talkative - poor listeners who most probably aren't following instruction.
 Passive - may not be reacting or responding and may seem like a joy to work with but
actually need more guidance.
 Special needs - customers who may have speech impediments or hearing and visual
difficulties.
 Demanding - quick to show authority, demand action, and usually get to the point
immediately, quick to get irate.

There is another customer classification based on dispositions when we attempt to build

rapport:

 Stable/even-tempered - make up approximately 70% of the population, dependable

and honest, very matter-of-fact, and interested in keeping things moving.
 Logical/rational - approximately 15% of the population, the ones we write brochures
and manuals for because they read directions and manuals and expect service
personnel to have utmost attention to details.
 Talkative/social - approximately 10% of the population, most likely to take advice
because of rapport.
 Doer/driver - less than 5% of the population; customers who like to challenge service
personnel and expect to be talking to experts.

The Customer

AS VALUE

Retaining a customer is ultimately to a business' benefit. Apart from trust and their direct and
indirect values, customers who stay are priceless contributors to a company's life success.
Indeed, they represent that part of a business that adds to the company's value proposition.
Also, the cost of acquiring new customers is actually very high part of the equation is advertising
and promotions, not to mention the amount to time that needs to be spent on educating on a
customer about a company's values, processes, and products.

AS GOALS

When we define customers as goals, we're really talking about customer satisfaction and how to
build on it.

When we look at customers as service goals, we should always be customer-facing when

determining how to improve overall customer experience, improve productivity, reduce attrition,
increase retention, and support regulation improvements.

The fact is that businesses need customers if they are to flourish.

SESSION 19: Interaction with Customer

Types of Customer Interactions

Reported by: Llarenas, Jhonie

Types of Customer Interactions

Two basic forms

1. Encounters: Short-term and based on minimal contact, customers are treated the
same, with no personal basis for service; there is a lack of individual recognition from
both sides and no special considerations.

2. Relationships: Customers bring in repeat service, relatioship evolves over time, there
is a personal elements of trust between two parties; the same relatioship is important to
maintaining the business, the nature of the relatioship may result in special
considerations, and relatioships are cultivated for quality service.
 SESSION 20: Dealing with Customer

CUSTOMER RELATIONSHIP MANAGEMENT

Reported by: Imperial, Christine D.

Other than Total Quality Management or TQM another very important innovation that is
now a known among customer service professional is Customer Relationship Management or
CRM Process.

What is CRM Process?

 It is a widely implemented strategy for managing of all company and sales

prospect

CRM system it allows business to manage business relationship and data

and information associated with customer. With CRM, it can store customer and
prospect contact information accounts, leads and sales opportunities in one
central location and can be accessible of the members of the organization
(Salesforce.com, 2017)

 It is a strategy to attract new customer and retaining current or winning back the
old one
According to Salesforce.com CRM are known to improve customer
retention by as much as 27% percent and 3 out of 4 consumer says they
spent more money with a company because of positive customer
experience. Meaning the key to giving customer what they want lies in
understanding them and CRM system does just that. (Salesforce.com,
2017)

How does CRM Work?

A business should start out with a foundation of great customer relation. The
organization or the seller needs to connect with people who needs the product which is also the
customer. The connection between the seller and customer should never stop after the
transaction. It needs to share information across various teams within the members of the
organization who are the one who making contact with customer. CRM serves as vital nerve
centers to manage the connections that happens in the business. Within the data that gathered
from sales, customer service, marketing and sales media monitoring CRM translates it for an
easy access and clear overview of customer’s profile.
 Today, growing business manage customer connection and information in variety of
ways. Some use old fashioned note cards and rolodex. Other stores information on their mobile
phones while on go. Others use Excel, Spreadsheet or Google Documentaries. This tools or
platform helps a small teams and don’t plan to scale their business, but for fast growing and
large companies they make it accessible via the cloud to help collect precious data. It freed up
much time to focus on customer satisfaction rather than letting valuable information gone.

Example of CRM Strategy

SM Advantage Card is an example of CRM strategy. SM customers can get it at a

minimal cost, and the card gives them access to special deals and discounts. The card in turn
tracks everything they buy, and allows SM to create customer profile based on their purchasing
habits.

Elements of successful CRM initiatives

1. People

People are one of the most important elements of successful CRM. If the people
in organization aren’t committed enthusiastically and well train, the CRM effort are
doomed to failure.

2. Process

Processes are the methods by which you achieve your strategic goals. They
need to be clearly defined, carefully set out and consistently followed. In some ways
processes are the most difficult part of the CRM pillars. They not only must be
defined, they must be followed constantly. Monitoring processes and keeping them
on track is a day to day job.

3. Technology

The fourth and last elements of a successful CRM implementation is the

technology. It is in last place because a common error is to put it in first place and try
to build a CRM implementation around the technology. This is a mistake and it never
works well. Technology is an important part of a CRM implementation, but it exists to
support strategy and processes, not the other way around.

Why some CRM fails?

Installing of technology without business strategy

Although software is important to making CRM work, customer

relationship management is not a technology. Customer relationship
management is an ongoing effort to focus the company on its customers and
their needs for mutual benefits. One of the most common causes of CRM failure
is to approach CRM strategy as a software project. Too many adopters have the
IT department install the system, get it running and then wonder why the
strategic benefits fail to be realized CRM must be a company wide effort that
starts with customer strategies which are then automated with application
software. You can't just concentrate on the software and ignore the rest.