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Execution-MiH ENCYCLOPEDIA →
Execution Making-it-Happen →
SECTION - Focus & Money-Machine →
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CHAPTER - Customer Focus and Alignment
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Customer Loyalty is critical to success but it is not synonymous to success. Customer objectives are subordinate to the share-holder objectives. Customer focus will mean that one will maintain focus on customer acquisition and retention, while being driven by the organization priorities and profitability objectives.
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Topics
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Aligned customer value & profitability matrix
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Customer is a core stakeholder but shareholder comes first (which does not mean that one has to make money for the shareholder through unethical means). Strategy blueprint will also produce the customer strategy. An organization will segment the customers and the associated level of services and products. It will spend more on customers with higher value or at least potential value. It will not give business class service at economy class rates. It will not spend more than a threshold to retain a customer. It will not be working endlessly for the customer satisfaction index for the customer segments, which are not adding value.
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Prioritized customer matrix
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Apart from customer value and profitability, there are other factors, which will drive the customer focus. A business also has to prioritize its customer-base on other considerations like building critical mass of customer base, customers buying strategic products and customers, which can be good ambassadors. An organization would ideally 'tag' a customer as per the priority. The customer services and retention efforts have to work accordingly.
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Aligned customer management performance matrix
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It is important to know and track on what we want to achieve with the customers as per their current priority, value and profitability. The customer management matrix will typically include the measures and standards across all customer management domains including customer acquisition, retention, servicing and profitability.
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Customer Service Alignment
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The level and sophistication of customer service and the money & effort spent on the same should be governed by the priority index of the customers. One will not have a sophisticated customer service centre for customers giving under USD 25 billing every month, but you will have one for platinum card customers.
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Customer Relationship alignment
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The customer's sales, post-sale, servicing and other relationship experience would need to be in line with the priority index of the customers.
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All Chapters in "Focus & Money-Machine." Section
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