Business today faces great challenges from global competition, technology advancements, digital transformation, cyber security threats, and ever rising customer expectations. Customer focus should ideally be the primary focus of any Quality Management process. Which is there to meet customer requirements and to strive to exceed their expectations, these are the set of principles of fundamental beliefs, norms, rules, and values that are accepted as true and can be used as a basis for quality management.
Customer focus
7 Key Benefits of customer focus in QM
1. Increased customer value
When it comes to customer value it can be functional, social, emotional, epistemic, and conditional values. Every aspect of customer interaction provides an opportunity to create more value for the customer be it in sales or aftersales., Every customer touch point has more than or equal opportunity to serve your customer better to create undeniable values.
2. Increased customer satisfaction
How delighted customers are with your products, services, and capabilities will solely determine how focused you are with your customer experience. Right from the prospecting, purchase, ownership, and retention so on and so forth.
3. Improved customer loyalty
Once the customer is gone there are gone! Customers are pretty much like your teeth ignore them they will go away. since we cannot ensure customer loyalty for granted, we need to put every effort to get the customer loyalty with a systematic, well-structured, and client-driven solutions to stick with every customer you come across.
4. Enhanced customer retention
The process of acquiring new customers is more expensive than maintaining customers and transitioning them into recurring customers. It is just as important of a process as gaining new ones. If an organization does not focus on customer retention but instead focuses solely on expanding its customer base, it is potentially losing out on repeat customers.
How to measure customer retention
CRR = E-N/S x 100
E = Number of customers at the end of the period
N = number of new customers acquired during the period
S = The Number of customers at the start of the period
For example, if an organization starts with 850 customers (S) and ends with 1050 (E), but acquires 575 (N) during the period, then the customer Retention Rate (CRR) would be 55.8% ((1050- 575)/850) X 100
5. Enhanced brand value
Brand value determine your brand’s identity and the beliefs that you stand for. It is the amount of money a company determines it could get on the open market at reasonable value. In simple terms brand value is the net worth and value of the brand compared to other brands. So, if customers recognise, understand, and connect with your brand provided their experiences are positive then your brand value beyond doubt goes up.
6. Expanded customer base.
The customer base refers to a group of people who constantly buy or use your product or services. A good customer base helps the business grow and generate revenue it is an indicator that shows how your business works. In marketing terms, a customer base definition is the target market that a company wants to reach out to sell its products or services.
7. Improved revenue and market share.
These are the indicators of an organization’s growth and success. The higher the market share the more the sales a company has than its competitors and it further depicts the influence of your company in its industry.
To sum up focusing on the customer benefits sales supports new customers and reduce cost to serve thus improves operational efficiency.
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