Internal Customer Satisfaction
INTRODUCTION
Customer is the king, this is all the
more apt for today's business environment where, all other factors remaining
more or less constant, it is the value addition to the customer that is
making all the difference.
Customer satisfaction depends on the performance relative to a expectations.
A key premise in customer satisfaction
is understanding the needs and meeting or exceeding the expectations of
customers. Further more, this is done while optimally using resources. While
most companies have developed strategies to improve quality and external
customer service, internal customer satisfaction is a much neglected
component of quality improvement. To this end, it is important to emphasize
that total customer satisfaction can be attained only if all employees
devoted to external customer satisfaction can work together and assist
each other to achieve the common objective, when the internal customer isn't
satisfied, Relationships with the external customer suffer. So, it is
suggested to adopt customer oriented approach to keep the internal customer
satisfied and motivated, who in turn will focus their attention and energy
upon meeting the requirements of their customers, thereby maximizing the
customer, thereby maximizing the customer satisfaction.
Customer satisfaction survey is the
process to monitor the satisfaction quotient of their people. In internal
satisfaction surveys therefore tracks the return on your investments in
keeping your people happy, high salaries, a quality culture, a healthy work
environment.
Last, but not the least internal
customer satisfaction survey helps in finding the critical areas, which need
further improvement.
Need of Internal Customer
Satisfaction Survey arises due to following reasons.
Ø
Rapidly growing organization.
Ø
High or growing turnover rate.
Ø
Excessive rumor's
Ø
Highly competitive industry.
Ø
Planned and recent organizational changes.
BENEFITS OF A INTERNAL CUSTOMER SATISFACTION SURVEY
Ø
It creates better teamwork and much
improved work process.
Ø
It leads to higher output and
superior quality product.
Ø
It decreases the turnover.
Ø
Reduced overheads, and increase
customer satisfaction level's inter departmental.
Ø
It enhance communication and hence
helped in team building, hence there is less wasted effort caused by lack of
common purpose and poor communication.
Ø
A good employee feedback survey
improves employee attitude and boosts morals.
INTERNAL
CUSTOMER-SUPPLIER RELATIONSHIP
In an
organization, from procuring an order to delivering the final product, a
series of activities takes place. There are different deptts. To which these
activities are assigned eg. Raw material for production is purchased by one
deptt. And supplied to other deptt. Where the production initiates. Thus
every deptt. play an important role of a customer and supplier as
well.
The importance of a customer is well known from the maxim, “ Customer is the
king”. Earlier, organizational administrators concentrated only on the
satisfaction of external customers i.e. the target market. But now it is
being realized that if the internal customer is satisfied the quality as
well as the quantity is also appreciable. Higher the customer satisfaction
index, higher will be the quality of the production. This results in the
satisfaction of external customers and ultimately brings profits &
prosperity to the organization. It can benefit the organization in following
ways:-
1)
There will be less employee turnover.
2)
Optimum utilization of available resources will
take place.
3)
High job satisfaction and feeling of
belongingness in employees.
4)
Qualitative product.
5)
Least conflicts in the departments.
6)
Good reputation in the market and many more
benefits can be accrued.
Thus,
every deptt. should ensure that the customer deptt. is satisfied with the
product and services provided by it as it will result into an overall
improvement of the organization.
To
serve a final customer first of all a company has to satisfy his employees.
If employees are satisfied then they will ultimately satisfy the final
customer. Three types of marketing arises. These are a follows:-
1)
Internal marketing:
It is
defined as when company communicates its policies to the employees. In this
understands their employees & provides good working condition, compensation
and incentives so as to satisfy their employees. Company satisfy their
employees because they are the person in touch with the final users.
2)
External marketing:
When
company communicates with its final end user regarding the product
complaints & suggestions so as to satisfy them.
3)
Interactive marketing:
In
this employees communicate company product to its final end users.
INTRODUCTION TO CUSTOMER SATISFACTION
Today’s companies are facing their toughest competition ever. These
companies can outdo their competition if they can move from product and
sales philosophy to a marketing philosophy. We spell out in detail how
companies can go about winning customers and outperforming competitors. The
answer lies in doing a better job of meeting and satisfying customers needs.
Only customer-centered companies are adept at building customers, not just
building product. They are skilled in market engineering, not just product
engineering.
Too many companies think that it is the marketing/sales department’s job to
procure customers. If that department cannot, the company draws the
conclusion that its marketing people aren’t very good . but in fact,
marketing is only one factor in attracting and keeping customers. The best
marketing department in the world cannot spell products that are poorly made
or fail to meet anyone’s need. The marketing department can be effective
only in companies whose various departments and employees have designed and
implemented a competitively superior customer value-delivery system.
Although the customer oriented firms seek to create high customer
satisfaction, its main goal is to maximize customer satisfaction ,first the
company can increase customer satisfaction by lowering its prices, but
results may be lower profits second the company might be able to increase
prices. Third the company has many stake-holders including employees,
dealers, suppliers and stock holders spending more to increase customer
satisfaction might divert funds from increasing the satisfaction of other
partner. Estimate the company must operate on the philosophy that it is
trying to deliver a high level of satisfaction to the other stake-holder
within the constrains of its resources. From the past studies of last three
decades we observed that the company’s first task is to create and satisfy
customers. But today’s customers face a vast array of product and brand
choice prices and suppliers.
It is generally believed that customers estimate which offer will deliver
the most value customers are like value maximizes, within the bounds of
search costs and limited knowledge, mobility income, they form an
expectation of value and act on it, whether or not the offer lives up to the
value expectations affects customer’s satisfaction and their repurchase
probability.
CUSTOMER VALUE
Customer delivered value is the difference between the total customer value
and total consumer cost. Consumer value is the bundle of benefits customers
expect from a given product or service. Total consumer cost it the bundle of
costs consumer expect to incur in evaluating, obtaining and using the
product.
That two customers can report being “highly satisfied” for different
reasons. one may be easily satisfied most of the time and other might be
hard to please but was pleased on this occasion. Companies should also note
that managers and salespeople can manipulate their ratings on customer
satisfaction. They can be especially nice just before the survey. They can
also try to exclude unhappy customers from the survey. Another danger is
that if customers will know that the company will go out of its way to
please customers, some customers may express high dissatisfaction (even if
satisfied) in order to receive more concession.
DELIVERING CUSTOMER VALUE AND SATISFACTION:
The value chain is a tool for identifying ways to create more customer
value. every firm is a collection of activities that are performed to
design, produce, market, deliver and support its product. The value chain
identifies nine strategically relevant activities that create value and cost
in a specific business. These nine value-creating activities consist of five
primary activities and four support activities.
INTERNAL RECORD SYSTEM
Marketing managers rely on internal reports on orders, sales, prices, cost,
inventory levels, receivables, payables, and so on. By analyzing this
information, they can spot important opportunities and problems.
THE MARKETING INTELLIGENCE
SYSTEM
A marketing intelligence system is a set of procedures and sources used by
managers to obtain everyday information about developments in the marketing
environment. Marketing managers collect marketing intelligence by reading
books, newspapers and trade publications; talking to customers, suppliers
and distributors; meeting with other company mangers.
First, it can train and motivate
the sales force to spot and report new developments. Sales representatives
are positioned to pick up information missed by other means.
Second, the company can motivate the distributors, retailers, and
other intermediaries to pass along important intelligence.
Third, companies can collect
competitive intelligence by purchasing competitors’ products; attending open
houses and trade shows; reading competitors’ publishing reports; attending
stockholders’ meeting; talking to employees, dealers, distributors,
suppliers, and freight agents; collecting competitors’ ads; and looking up
news stories about competitors on the internet.
SOURCES OF INTERNAL DATA
Sources of internal data are of two types:
1.
Internal or primary data
2.
External or secondary data.
Internal
Sources
Company profit-loss statements, balance sheets, sales figures, sales call
reports, invoices, inventory reports and prior research reports.
External
Sources
A)
Government publications
B)
Periodicals and books
C) Commercial data
