Treating Employees as Customers


If employees feel valued and their needs are taken care of, they are more likely to stay with the organization. The CEO’s primary job is cultivating a corporate culture that benefits all employees and customers. If you build a company and a product or service that delivers high levels of customer satisfaction, and if you spend responsibly and manage your human capital assets well, the other external manifestations of success, like market valuation and revenge growth, will follow.

 

Many companies have adopted the idea that employees are also customers of the organization, and the basic marketing strategies can be directed at them. The products that the organization has to offer its employees are a job (with assorted benefits) and quality of work life. To determine whether the job and work-life needs of employees are being met, organizations conduct periodic internal marketing research to assess employee satisfaction and needs. Become the best place to work by doing the following:

  • Treating employees as customers;
  • Using employee input and a fact-based approach for decision-making in the design and implementation of human resources policies, programs, and processes.
  • Measuring employee satisfaction and trying to continuously improve the workplace environment.
  • Benchmarking and incorporating best practices.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Usage Analysis and Customer Retention


Segmenting markets by consumption patterns can be quite insightful for understanding your customer mix. Differentiated marketing strategies are needed for the various user groups—first-time users, repeat customers, heavy users, and former users. By classifying customer accounts based on usage frequency and variety, companies can develop effective strategies to retain and upgrade customers. There are many highly informative, low-cost applications of usage analysis that should be considered by management.

By classifying customers into usage categories, management can design appropriate strategies for each market segment. The objective is to move customers up the ladder, where possible. The implication of usage analysis is that all customers are not equal; some (the heavy users) are clearly more important than other categories.

The Pareto principle, or 80/20 rule, is insightful in the context. In a typical business, approximately 80% of sales comes from about 20% of customers (also, note that generally about 80% of your sales comes from 20% of your goods or services). It is important to defend this core business, as heavy users are primary attraction targets to key competitors. These highly valued customers require frequent advertising, promotions, and sales calls and ongoing communication efforts.

By knowing who better customers are—through geographic, demographic, psychographic, and benefit research—we have a solid profile of “typical users.” This information is very helpful in playing subsequent customer attraction/conquest marketing efforts. Realize that the marketing information system, the database, plays a key role in customer analysis and decision making.

For unprofitable customers, the company often needs to find new ways to serve them more effectively. Technology such as ATM machines, ICT, can be used in this regard. Quarterly contact through a newsletter and direct mail or access options such as toll-free telephone numbers and websites maintain adequate communication with low-volume users. In some cases, it may even be desirable to sever the relationship with certain unprofitable customers.

A good understanding of our customers’ purchasing patterns helps us keep our customers and gain a larger share of their business. Share of customer (customer retention focus) has supplanted market share (customer attraction focus) as a relevant business performance dimension in many markets. Share of customer is adapted by industry and goes by such names as share of care (health care), share of stomach (fast food), and share of wallet (financial services). If a company can increase a customer’s share of business from 20 to 30 percent, this will have a dramatic impact on market share and profitability.

Recency, frequency, and monetary value (RFM) analysis is a helpful tool in evaluation customer usage and loyalty patterns. Recency refers to the last service encounter/transaction, frequency assesses how often these customer-company experiences occur, and monetary value probes the amount that is spent, invested, or committed by customers for the firm’s products and services.

A more effective strategy is to classify customers via usage analysis and design differentiated marketing approaches for each target market. In sum, usage analysis can greatly assist us in our customer retention activities. Think about how to “hold” heavy users and key accounts, upgrade light and medium users, build customer loyalty, understand buying motives to meet or exceed expectations, use appropriate selling strategies for each targeted usage group, win back “lost” customers, and learn why nonusers are not responding to your value proposition.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com

Strategy-making Outcomes


  1. Identification of a system of strategies that reinforce one another and allow the issues and concerns of those participating to be managed and the new strategic future to be realized.
  2. Production of a set of strategies that protect the identified core distinctive competencies.
  3. Renewal/development of new patterns of competences and distinctive competences.
  4. Agreed plans for diminishing arresting or outsourcing activities that enable resources to be made available for other activities.

Once the business model has been developed, it is important to review the original set of issues. This is partly to ensure that those issues which group members feel important are being considered but also to review their prioritization and therefore where management attention and resources should be focused. Developing the business model will almost certainly have suggested a rethink of the importance of managing the issues.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir.

Corporate Citizenship


Effective leaders are usually good stewrads who make wise and careful use of all resources–personal time and energy, material and physical resources, and other people. They take a holistic view of the community and the business enterprise, recognizing that what happens in one area inevitably affects the other. My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir

Targetting the Gap


Gap exists between aspirations and results or the desired or target state and what actual accomplishment is. Organizations must see how such gaps are bridged. They may often be accomplished by backward-chaining logical sequences of actions or intermediate states from the desired state to the present state. In other words, asking the question: “What must be in place, or must have happened in order that this desired state can exist?”

Nonetheless, “what ought to be” is a highly variable target. Also, some problems have many alternative solutions, in which case backward-chaining search strategies may have little practical use. What matters at the end is proper planning and right prescription to the specific situation. My Consultancy–Asif J. Mir – Management Consultant–transforms organizations, makes them relevant, and suggests solutions for succes. For details please contact Asif J. Mir