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Chapter 2 - Customers

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Chapter 2 - Customers

Uploaded by

Leonard Abarra
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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CUSTOMER

AND CUSTOMER NEEDS


Presented by BSCE-3H (Group 1)
PART ONE
PRESENTED BY: ROXAS, JOEL JOCH
WHAT IS CUSTOMER?
A customer is a person or company that receives, consumes, or buys a
product or service and can choose between different goods and
suppliers. The main goal of all commercial enterprises is to attract
customers or clients, and make them purchase what they have on sale.
They also try to encourage them to keep coming back. At the core of
marketing is having a good understanding of what the customer needs
and values.
“CUSTOMERS” vs “CONSUMERS”
The terms customer and consumer are nearly synonymous and are
often used interchangeably. However, there exists a slight difference.
Consumers are defined as individuals or businesses that consume or
use goods and services. Customers are the purchasers within the
economy that buy goods and services, and they can exist as
consumers or alone as customers.
CUSTOMER SERVICE
Customer service, which strives to ensure positive experiences, is key
to a successful seller/customer dynamic. Loyalty in the form of
favorable online reviews, referrals, and future business can be lost or
won based on a good or bad customer service experience. In recent
years, customer service has evolved to include real-time interactions
via instant message chats, texting, and other means of communication.
The market is saturated with businesses offering the same or similar
products and services. What distinguishes one from another is
customer service, which has become the basis of competition for most
businesses. This is a key element of Sigma Six.
CUSTOMER’S NEED
Customer needs are the motivations that make customers want to
purchase a product or service and stay loyal to a business. They can be
psychological or physical, and they can vary from basic needs like food
and shelter to social needs like affection and admiration. Businesses
study customer needs to provide better products, services, and
marketing strategies that match or exceed their expectations.
METHODS TO IDENTIFY
CUSTOMER NEEDS

Reflect on your experiences

Observe Behaviors

Conduct Interviews
TYPES OF CUSTOMERS
Loyal Customers

Discount Customers

Impulsive Customers

Need Based Customers

Wandering Customers
TYPES OF CUSTOMERS
Loyal Customers

It describes a customers’ willingness to return to a company in order to


purchase its services or products. It is manifested when a customer makes
repeat purchases, choosing a specific company over its competitors. This is
usually because they developed a positive emotional relationship with the
brand as a result of the delightful experiences they had with that company.
TYPES OF CUSTOMERS
Discount Customers

Discount customers play an important role in turning over a company’s


inventory. Therefore, discount customers are a key contributor to a
company’s cash flow. This type of customer seldom purchases products at
full price and shops around for the best markdowns.

Discount customers are resilient to upselling, are usually the least loyal
segment of customers, and generally move on when better markdowns are
available elsewhere.
TYPES OF CUSTOMERS
Impulsive Customers

Impulse customers are the best customers to upsell to and are the second
most attractive segment (after loyal customers) to focus on. Impulse
customers do not have a specific shopping list in mind and purchase
products spontaneously. In addition, impulse customers are typically
receptive to recommendations on products.

Impulse customers are second to loyal customers in the generation of sales


revenue. Keeping these customers in the loop on new product offerings goes
a long way in improving a company’s profitability.
TYPES OF CUSTOMERS
Need Based Customers

Need-based customers are driven by a specific need. In other words, they


enter the store quickly, purchase what they need, and leave. These customers
buy for a specific need or occasion and are hard to upsell. It is important to
note that need-based customers can be easily drawn to other businesses.

Therefore, it is important to initiate positive personal interaction with this


customer segment in order to retain them. Converting need-based customers
to loyal customers is attainable with proper positive personal interactions.
TYPES OF CUSTOMERS
Wandering Customers

Customers draw the largest amount of traffic to the company while making
up the smallest percentage of sales revenue. They have no specific need or
desire in mind and are attracted by the location of the business more than
anything else. These customers enjoy the social interaction of the shopping
experience. Therefore, spending too much time trying to appease this
segment can draw away from the more profitable segments. Although this
segment generates the least amount of sales revenue, providing insightful
information about products to these customers can stimulate interest and
ultimately result in a purchase.
PART TWO
PRESENTED BY: APON, STEPHANIE GRACE
HOW TO MEET CUSTOMER NEEDS
Consumer Needs is a consumer's desire for a product category's specific
benefit on a functional or emotional level during a specific time or situation.
HOW TO MEET CUSTOMER NEEDS
Identify what a customer wants.

According to a Salesforce survey, 76% of consumers expect companies to


understand their expectations and needs. Identify what a customer wants.

Distribute feedback throughout your organization.

Conducting this type of research effort and sharing results regularly with your
team will lead to more proactive, strategic, and data-oriented marketing
efforts, hopefully replacing more reactive ones.
HOW TO MEET CUSTOMER NEEDS
Create product/service features based on customer feedback.

Design
Innovation
Implementation

Collect further customer feedback on changes you’ve made.

Restarting the whole process from identifying customer wants.


VOICE OF THE CUSTOMER
Voice of the Customer (VoC) is a term that describes your customer’s
feedback about their experiences with and expectations for your
products or services. It focuses on customer needs, expectations,
understandings, and product improvement.

Consumer research provides more in-depth information about the


needs, wants, expectations and behavior analytics of clients.
VOICE OF THE CUSTOMER
Consumer research provides more in-depth information about the
needs, wants, expectations and behavior analytics of clients.

VoC is based on two things:


1. Comprehensive insight into customer requirements
2. The use of data to propel product development.
HOW TO APPLY VOC
THE VOICE OF CUSTOMER
METHODOLOGY
Types of Conducting Consumer Research
- Customer Interviews
- Surveys
- Focus Groups
- Social Listening
THE VOC METHODOLOGY
Product Needs
- Price
- Features
- Effectiveness
Service Needs
- Empathy
- Clarity
- Information
Feedback Analysis
PART THREE
PRESENTED BY: SANTOS, ROMMEL
VOICE OF CUSTOMER
METHODS
Surveys – Surveys are a designed set of questionnaire which is sent out to
potential or existing customers.

Interviews – Interviews are individual meetings with potential or existing


customers where a set of questions are asked and answers are discussed
to understand customer voices.

Focus Group – A group of people are called together in one conference


room and a discussion is held on specific topics that need to be addressed.
VOICE OF CUSTOMER
METHODS
Suggestions – Client/Customer/Employee feedback is received and treated
as suggestion to improve product or service.

Observations – During the course of the process, individuals can have


observations and can provide feedback to the process which does act as a
Voice of Customer.
DISTINCT CATEGORIES OF VOC
Voice of Associate: The feedback that we get from our Employees

Voice of Investor: The feedback that we get from our Management and
Shareholders

Voice of Customer: The feedback that we get from our Clients and End-
customers

Voice of Process: The feedback that we get from our our CTPs(Critical
To Process) and CTQs(Critical To Quality)
Six Sigma - Voice of AICP
(Associate, Investor, Customer and Process)
Six Sigma is a set of methodologies and tools used to improve business processes by reducing
defects and errors, minimizing variation, and increasing quality and efficiency.
HOW IT IMPACTS YOUR
BUSINESS?
According to the research by the Aberdeen Group, best in class VoC
users enjoy an almost 10x greater increase year-over-year in annual
company revenue. This is because by capturing VoC, you can connect
and engage with customers at very touchpoint in customer journey.
This technique helps you

Spot early warning and potential brand crisis


Evaluate new concepts, ideas, and solutions
Customize your products, services, add-ons, and features
to meet the needs and wants of your customers
Increase customer retention
PART FOUR
PRESENTED BY: SOLIDOR, CHARLES MATTHEW
BUILDING A SUCCESSFUL
VOC PROGRAM
Before you jump in and begin building a step-by-step plan for achieving
customer experience maturity, you’ll want to set the stage. Too often people
rush into building a program without aligning all the necessary factors to
move forward with creating a customer-centric organization.

By focusing on the following five factors, you can successfully establish


organization-wide customer centricity
BUILDING A SUCCESSFUL
VOC PROGRAM
Strong Leadership Listening and Learning

Patience and Commitment Alignment and Action

Engagement and Collaboration

PRESENTED BY: VERZO, LHEA BETH


VOC TECHNIQUES
It’s a well-known fact that it costs organizations five times more to attract a
new customer than it does to retain an existing one. The value of retaining
existing customers over acquiring a new one can’t be overstated.
Understanding your customers and building a solid customer relationship is a
methodical, insightful process. There are certain techniques that you can
follow to get reliable answers. Companies often use a mixture of different
techniques to ensure they're getting the most from their research. Let’s take a
look at some of the Voice of the Customer methods that you can use to collect
data.
CUSTOMER LIVE
INTERVIEWS CHAT

SOCIAL
MEDIA
VOC ONLINE CUSTOMER
SURVEYS
TECHNIQUES
RECORDED WEBSITE
CALL DATA BEHAVIOR
IN PERSON NET PROMOTER
SURVEYS SCORE

FOCUS
GROUPS
VOC ONLINE CUSTOMER
REVIEWS
TECHNIQUES
DEDICATED EMAIL
FEEDBACK FORM
THANK YOU
PRESENTED BY BSCE-3H (GROUP 1)

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