Importance of the

Customer
Version 1.0 – May 2012
 Objectives
By the end of this session, students should be able to:

• Draw a concrete image of the customer as a driver of

business success

• Describe the connection between the development of

critical personal leadership and social competencies to
understanding the customer
 Objectives
By the end of this session, students should be able to:

• Recommend business practices that will make

customers happy
 Introduction
This module identifies the customer as subject, goal,
objective, and condition that determines the success of
any effort towards providing excellent customer
service.

It was designed to equip students with an

understanding of the customer service mindset.
 Customer Value
Direct Value
Customer contributes directly to “our” business

Direct Value:
• Transactions in a year? Revenue per transaction?
Revenue per year?
 Customer Value
Example:
$21.95 subscription rate x 12 months = $263.40 total
subscription / year
$263.40 + (200.00 average transaction per year x 2) =
$663.40 total revenue per year
$663.40 / 12 months = $55.28 / average worth of
transaction / month
 Customer Value
Direct and Indirect Value

Direct Value:
• Direct Lifetime value?

$663.40/year* 15 years = $9,951.00 customer

lifetime value (15 years)
 Customer Value
Indirect Value

• Value that the customer causes for us as a result

word-of-mouth, positive reviews, or referrals.
 Customer Value
Indirect Value

Example:

$9,951.00 * 5 = $49,755.00 revenue / year for 5

referred customers

IF $9,951.00 * 1,500 customers = $14,926,500 from

1500 customers/year
 Customer Value
$14,926,500 * 0.25 (realistic indirect value)=
$3,731,625 / year from 25% referrals

$3,731,625 + 14,926,500 = $18,658,125.00 / year

from combined direct and indirect values of 1500
customers
 Customer Value
Customer Types

Three Major Classifications:

1. In relation to the business

• Internal - fellow employees and managers within a

place of business
 Customer Value
Customer Types

Three Major Classifications:

1. In relation to the business

• External - people and organizations who have a

need for your product or service and purchased
your products/services in exchange for money
 Customer Value
Customer Types

Three Major Classifications:

2. In relation to support required

• Novice – little to no experience with a product

• Advanced – have understanding of
hardware/software
 Customer Value
Customer Types

Three Major Classifications:

2. In relation to support required

• Talkative – poor listeners who probably don’t

listen to directions
• Passive – needs more guidance than most
customer types
 Customer Value
Customer Types

Three Major Classifications:

2. In relation to support required

• Special Needs – may have speech impediments,

hearing/visual difficulties
• Demanding – quick to show authority, demands
action
 Customer Value
Customer Types

Three Major Classifications:

3. Rapport-based

• Stable/even-tempered – 70% of population,

dependable and honest, matter-of-fact
• Logical/rational – 15% of the population, readers
of brochures and manuals, attention to details
 Customer Value
Customer Types

Three Major Classifications:

3. Rapport-based

• Talkative/social – 10% of the population, may take

advise based on rapport
• Doer/driver – Less than 5%, like to challenge
service personnel and expect technical expertise
 The Customer
As Value

Customers represent that part of a business that adds to

the company’s value proposition.
 The Customer
As Goal

Goals specify what we want to achieve; in recognizing

customers as goals, we seek to align not only with their
expectations but with their ultimate needs.
 The Customer
In Customer Service

Discuss:

1. Identify and differentiate the different types of

customers.
2. What makes a customer important?
3. What is the relative value of each customer based on
the interactions BPOs establish every day?
 The Customer
In Customer Service

Discuss:

4. Based on actions the company has taken to so far,

would you say that their methods are effective or not?
Why?
5. Who are the main stakeholders in a customer-service
oriented organization?
The Customer