Business Environment

Topics: Demographics, Customer, Customer service Pages: 14 (4143 words) Published: July 30, 2013
Customers

Customers
* Sometimes known as a client, buyer, or purchaser
* The recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration * one who absorb organizational outputs
* represent potential uncertainty to an organization
* Their taste can change and they can become dissatisfied with organization’s product or service Customers are generally categorized into two types:
* An intermediate customer or trade customer (more informally: "the trade") who is a dealer that purchases goods for re-sale. * An ultimate customer who does not in turn re-sell the things bought but either passes them to the consumer or actually is the consumer. A customer may or may not also be a consumer, but the two notions are distinct, even though the terms are commonly confused. A customer purchases goods; a consumer uses them. An ultimate customer may be a consumer as well, but just as equally may have purchased items for someone else to consume. An intermediate customer is not a consumer at all. In the world of customer service, customers are categorized more often into two classes: * An external customer of an organization is a customer who is not directly connected to that organization. * An internal customer is a customer who is directly connected to an organization, and is usually (but not necessarily) internal to the organization. Internal customers are usually stakeholders, employees, or shareholders, but the definition also encompasses creditors and external regulators. Why customers are important?

Customers are the most important people for any organization. They are the resource upon which the success of the business depends. When thinking about the importance of customers it is useful to remember the following points: 

1. Repeat business is the backbone of selling. It helps to provide revenue and certainty for the business.  2. Organizations are dependent upon their customers. If they do not develop customer loyalty and satisfaction, they could lose their customers.  3. Without customers the organization would not exist. 

4. The purpose of the organization is to fulfill the needs of the customers.  5. The customer makes it possible to achieve business aims.

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Customer satisfaction
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Customer satisfaction is at the heart of the selling process. One estimate is that it costs five times as much to attract new customers as it does to keep an existing one. The relationship between the customer and the organization is, therefore, an important one.  -------------------------------------------------

Building customer relationships can be seen as moving up a ladder. At the top rung of the ladder are your loyal customers (advocates). The ladder consists of four main rungs (with 4 being the highest): * 4 - Advocates

* 3 - Regular customers
* 2 - Occasional users
* 1 - One-off purchasers
The extent to which customers move up the ladder depends on how well they are treated by the organization. Well focused sales methods and attention to individual detail is likely to encourage customers to move up the ladder. * The Times 100 focuses on organizations which illustrate excellence in building relationships with customers over time such as Argos, which spends a lot of energy, and time on finding out what customers want. Other organizations like Nestle and Cadbury Schweppes place great store on building strong links with all their stakeholder groupings and with their customers through extensive market research. Providing customer service excellence is what will keep your customers coming back. Customer service excellence will give you the competitive advantage you need to survive in a tough and increasingly uncertain business climate. In today’s customer-oriented business environment, "people skills" are...
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