Internal customer satisfaction leads toExternal customer satisfactionV i I n t e r n a l C u s t o m e r S a t i s f a c t i o n . 0 9 V i i I n t e r n a l C u s t o m e r S a t i s f a c t i o n P r o c e s s . 1 1 V i i i I n t e r n a l a n d E x t e r n a l C u s t o m e r S e r v i c e . 1 1 I x T h e L i n k B e t w e e n I n t e r n a l C u s t o m e r S e r v i c e and Customer Loyalty.14x C a t e r i n g t o C u s t o m e r S e r v i c e N e e d s . 1 4 X i C o n t r i b u t i n g f a c t o r s t o s a t i s f a c t i o n . 1 6 X i i H o w t o K e e p I n t e r n a l C u s t o m e r s H a p p y a n d S a t i s f i e d ?

1 6 xiiiTips for building relationships with employees.17 INTRODUCTION First of all we must define the internal and external customers before discussingt h e relationship between the internal customers satisfaction and e x t e r n a l customer satisfaction. Internal Customers: Internal customer is a technical term used inmanagement sciencepopularizedby Joseph M. Juran.He defined internal and external customers as anyone affected by the product or b y t h e process used to produce the product, in the context of q u a l i t y management. Internal customers may play the role as supplier, processor, andcustomer in the sequence of product development.A n i n t e r n a l c u s t o m e r o r i n t e r n a l s e r v i c e p r o v i d e r c a n b e a n y o n e i n t h e organization. An internal customer can be a co-worker, another department, or a 4

Internal customer satisfaction leads toExternal customer satisfactiondistributor who depends upon us to provide products or services which in turn areutilized to create a deliverable for the external customer. In general, internalcustomers don't have a choice. For example, if the sales department doesn't likeaccounting's credit policies, they can't fire that department and hire another. He claimed that the organization must understand and identify both internal andexternal customers and their needs. The organization must focus on its primarytask of satisfying the customers requirements and expectations.If one department, individual or process within an organization supplies

another such within the same organization with goods, information or services then thelatter is described as the internal customer of the former.For example, a dispatch department may be the internal customer of a packingdepartment, which in turn may be the internal customer of the manufacturingprocess. Juran advocated 'exceeding the customer's expectations.' External Customers: External customers are those persons who come from the outside to fulfill their needs.e.g.the common peopleThe external customer is someone who signs a check, pays our employer, andultimately makes our paycheck possible. External customers have choice, and if they don't like your product or service can take their business elsewhere WHY INTERNAL CUSTOMERS ARE IMPORTANT? Why they are so important? Because how we service each other is how we probably service our customers. What are the benefits of selling (ourselves) and servicing our fellowemployees (our internal customers?) 1.First of all they are they fundamental asset of an organization, withoutwhich an organization cant run its business2 . S e r v i c i n g t h e i n t e r n a l c u s t o m e r c r e a t e s o p p o r t u n i t i e s t o e x p a n d o u r network of people available to assist us in a variety of situations. The moreyou meet with fellow employees or talk to them, the more you are aware of how they can assist you and in turn assist the customer. You have better opportunities for advancement because your interest in others increasesy o u r k n o w l e d g e o f y o u r i n s t i t u t i o n . Y o u p r o v i d e q u a l i t y s e r v i c e o n a consistent basis to all customersinternal or externa nternal customer satisfaction leads toExternal customer satisfactionAnd if we talk in terms of satisfied internal customers than they become importantbecause.1.Unhappy employees are less productive and more likely to have higher absence rates2.Satisfied employees are more productive, innovative, and loyal 3. Increases in job satisfaction lead to increases in employee morale, whichlead to increased employee productivity4.Employee satisfaction leads to cust omer retention 5. Between 40 and 80 percent of customer satisfaction and loyalty isdetermined by the customeremployee relationship, depending upon theindustry and market segment.Internal customer service is recognizing that everyone has a role in servicing theneeds of the external customer. One branch customer service representative stated how she feels about internal customers: "I need the expertise of our backoffice people. I realize that if I provide the necessary information, they can cutt h r o u g h m a n y o f t h e o b s t a c l e s a n d s o l v e c u s t o m e r p r o b l e m s q u i c k l y . I ' v e developed a relationship with them, and call them as needed. And, when the problem is solved, I call to thank them. Also, our office sends cards to back officedepartments to show our appreciation. I think it is that recognition that lets themk n o w t h e y h e l p e d u s a n d t h e c u s t o m e r i s s a t i s f i e d ow Poor Internal Customer Service Affects ExternalCustomers While companies focus thousands of dollars on external customer service inhopes of wooing and retaining customers, little attention is being paid to

theeffect poor internal customer service has on overall customer satisfaction. It allstarts within your organization! Sooner or later the rip ple effect reaches your external customers. To really walk your service talk, your commitment to internalcustomer service must match your company's external focus on customer care. When we think of customer service we think of staff serving customers over acounter or over the phone. But customer service occurs within your organizationas well. How well does staff serve its internal customers: other departments, itsmanagement, vendors and consultants? Believe it or not, it all counts. Internalcustomer service refers to service directed to others within your organization. Itrefers to your level of responsiveness, quality, communication, teamwork andmorale. We can define Internal Customer Service as effectively s e r v i n g o t h e r departments within your organization. How w e l l a r e y o u p r o v i d i n g o t h e r departments with service, products or information to help them do their jobs? How well are you listening to and understanding their concerns? How well areyou solving problems for each other to help your organization succeed?It effects in following ways. 1. Its a general phenomenon that being an employee you can only satisfyyour customer when you are being satisfied by the organization, otherwisein case of dissatisfaction surely you will not treat your customers in wellmanner and this can result in external customer dissatisfaction. 2. It can result in absenteeism, which will affect the service level and will ultimately results in external customer satisfaction. 3. It can also result in employees turnover, which as a result can affect theservice level of the organization, and hence can dissatisfy the external customers eventuall Defining customer satisfaction Because the concept of customer satisfaction is new to many companies, it'simportant to be clear on exactly what's meant by the term.Customer satisfaction is the state of mind that customers have about a companywhen their expectations have been met or exceeded over the lifetime of theproduct or service. The achievement of customer satisfaction leads to companyloyalty and product repurchase. There are some important implications of thisdefinition:Because customer satisfaction is a subjective, non quantitative state,measurement won't be exact and will require sampling and statistical analysis.Customer satisfaction measurement must be undertaken with anunderstanding of the gap between customer expectations and attributeperformance perceptions.There should be some connection between customer satisfactionmeasurement and bottom-line results Satisfaction" itself can refer to a number of different facts of the relationship witha customer. For example, it can refer to any or all of the following:Satisfaction with the quality of a particular product or serviceSatisfaction with an ongoing business relationshipSatisfaction with the price-performance ratio of a product or serviceSatisfaction because a product/service met or exceeded the customer's expectation ustomer Satisfaction Measurement Facts

A 5-percent increase in loyalty can increase profits by 25%-85%. A very satisfied customer is nearly six times more likely to be loyal and torepurchase and/or recommend your product than is a customer who is justsatisfied. Only 4 percent of dissatisfied customers will complain. The average customer with a problem eventually tells nine other people. Satisfied customers tell five other people about their good treatment. Production planning, etc.; and to instill in every individual the constant awarenessthat customer service is everyone's business.t h i s d e s c r i p t i o n e m p h a s i z e s t h e i m p o r t a n c e o f c u s t o m e r s e r v i c e a s a n organizational responsibility. However, too o f t e n , a s i n g l e d e p a r t m e n t i n a vertically structured organization is held accountable for apparent customer s e r v i c e f a i l u r e s t h a t , f o r t h e m o s t p a r t , o r i g i n a t e o u t s i d e t h a t d e p a r t m e n t ' s responsibility and are beyond its control.deductions and disputes are prime examples of costly process problems within ac o m p a n y that could often be avoided or at least, the resolution could b e hastened, through better customer service or communication.a key premise in customer satisfaction understands the needs and meeting, or e x c e e d i n g , t h e e x p e c t a t i o n s o f c u s t o m e r s . F u r t h e r m o r e , t h i s i s d o n e w h i l e optimally using resources. While most companies have developed strategies toimprove quality and external customer service, internal customer satisfaction is amuch neglected component of quality improvement. To this end, it is important toemphasize that total customer satisfaction can be attained only if all employees,devoted to external customer satisfaction, can work together and assist eachother to achieve the common objective. In this case, each person must improvewhat is around them and look for ways to satisfy the requirements of others in theorganization efficiently. This requires a climate that encourages and supportst e a m w o r k i n a d d i t i o n t o t h e p r o m o t i o n o f a g e n e r a l e t h i c o f c o n t i n u o u s improvement. The basis of this stems from the fact that there cannot be totalcustomer service unless all employees are supporting each other and workingtogether toward common goals. In short, total customer service means meetingthe needs and expectations of both internal and external customers. Internal Customer Satisfaction Customer is the king; this is all the more apt for today's business environmentwhere, all other factors remaining more or less constant, it is the value addition tothe customer that is making all the difference.Customer satisfaction depends on the performance relative to expectations.Customer satisfaction survey is the process to monitor the satisfaction quotient of their people. In internal satisfaction surveys therefore tracks the return on your investments in keeping your people happy, high salaries, a quality culture, a healthy work environment.Last, but not the least internal customer satisfaction survey helps in finding thecritical

areas, which need further improvement.Need of Internal Customer Satisfaction Survey arises due to following reasons Rapidly growing organization. High or growing turnover rate. Excessive rumor's Highly competitive industry. Planned and recent organizational changes. BENEFITS OF AN INTERNAL CUSTOMER SATISFACTION SURVEY It creates better teamwork and much improved work process. It leads to higher output and superior quality product. It decreases the turnover. Reduced overheads, and increase customer satisfaction level's inter departmental. It enhances communication and hence helped in team building, hence there is less wasted effort caused by lack of common purpose and poor communication. A good employee feedback survey improves employee attitude andboosts morals. NTERNAL CUSTOMER-SUPPLIER RELATIONSHIP In an organization, from procuring an order to delivering the final product, as e r i e s o f a c t i v i t i e s t a k e s p l a c e . T h e r e a r e d i f f e r e n t d e p t t s . T o w h i c h t h e s e activities are assigned e.g. Raw material for production is purchased by onedeptt. And supplied to other deptt. Where the production initiates. Thus everydeptt. Play an important role of a customer and supplier as well.The importance of a customer is well known from the maxim, Customer ist h e k i n g . E a r l i e r , o r g a n i z a t i o n a l a d m i n i s t r a t o r s c o n c e n t r a t e d o n l y o n t h e satisfaction of external customers i.e. the target market. But now it is being realized that if the internal customer is satisfied the quality as well as the quantityis also appreciable. Higher the customer satisfaction index, higher will be the uality of the production. This results in the satisfaction of external customersand ultimately brings profits & prosperity to the organization. It can benefit theorganization in following ways:-1) There will be less employee turnover.2) Optimum utilization of available resources will take place.3) High job satisfaction and feeling of belongingness in employees.4) Qualitative product.5) Least conflicts in the departments.6) Good reputation in the market and many more benefits can be accrued.Thus, every deptt. Should ensure that the customer deptt. is satisfied with the product and services provided by it as it will result into an overall improvement of the organization

Internal customer satisfaction leads toExternal customer satisfactionquality of the production. This results in the satisfaction of external customers and ultimately brings profits & prosperity to the organization. It can benefit theorganization in following ways:-1) There will be less employee turnover.2) Optimum utilization of available resources will take place.3) High job satisfaction and feeling of belongingness in employees.4) Qualitative product.5) Least conflicts in the departments.6) Good reputation in the market and many more benefits can be accrued.Thus, every deptt. Should ensure that the customer deptt. is satisfied with theproduct and services provided by it as it will result into an overall improvement of the organization. Internal Customer Satisfaction Process It consists of the following major steps.1.Identify internal customers.2.Evaluate the role of the credit, collection and accounts receivablesadministration (as a functional group) within the organization (self evaluation).3.Determine actual performance level through survey of internal customers.4.Determine the level of satisfaction required within the organization throughsurvey of internal customers.5.Measure satisfaction level of internal customer with respect to needs andexpectations.6.Identify improvement opportunities in work process required.7.Determine process potential and develop action plans for better service.8 . M o n i t o r , c o n t r o l a n d u p d a t e nternal and External Customer Service Why is this important? It is the fastest and best way to increase sales and productivity. Whats in it for you? You will put more money in the bank, get new customers automatically, beadmired by the competition, and have the highest possible productivity. External customer service Customer loyalty is created by strong relationships where the customer feelsspecial and important. People buy products and services on an emotional feeling.T h e f e e l i n g c a n b e t o f e e l g o o d , s a f e , e f f e c t i v e a n d e v e n t o i n c r e a s e t h e i r confidence. Customers buy a product for the same reason. If the product or service gives them a good feeling, they will continue to buy that over and over a g a i n . B u t , i f t h e c o m p a n y t h a t s e l l s t h a t p r o d u c t d o e s n ' t m a k e t h e m f e e l important or special, they will buy it somewhere else. T h e c u s t o m e r i s y o u r p a y c h e c k ! This is what most companies fail to realize! The customer pays for the entirestaffs living, car payments, vacations, food, etc. The employees think that themoney they make comes from the company. Yes, someone at the companysigns their checks, but the money comes from the customers. If the staff beginsto understand this, they will treat every single customer differently. They wouldmake sure that the customer service and customer relations would be on top,always.Lets look at how we treat our guests at home. We dress nice, plan and preparefor their arrival, set the table with the nicest chinaware, glasses, and silverware,etc. When our guests arrive, we smile and say welcome. We compliment themon their choice of clothing, and our highest priority is that they will have a greattime. When they leave we thank them for visiting, and we dont mind if they

tellsome friends what a great time they had at our house.Imagine if you and your associates put the same effort into every customer thatwalks in your front door. After all it is the customers that make it possible for youto invite your friends into your home. It is the customers that pay for everythingyou own and will buy in the future. Imagine that every customer will feel the sameway your friends do when they leave your house after a dinner or a party. Do youthink they will come back over and over again? Do you think they will recommendy o u a n d refer you to everybody they know that can use your products o r services? C u s t o m e r s a c t a c c o r d i n g t o s e r v i c e a n d r e l a t i o n s . Lets look at how customers really act according to the experiences they getw h e n b u y i n g f r o m y o u . A s y o u c a n s e e , s a t i s f i e d c u s t o m e r s a r e n o t l o y a l . Satisfied customers dont refer you to other customers like loyal customers do.Which would you rather have, 100 satisfied customers or 100 loyal customers? Internal Customer service Your employees and coworkers are your internal customers and the care for t h e m i s a c t u a l l y t h e s a m e a s f o r y o u r e x t e r n a l c u s t o m e r s . Their loyalty and productivity also depend on how they feel at work. Do they feelimportant and special? Do they get attention for their ideas and work effort?J u s t l i k e c u s t o m e r s , e m p l o y e e s a l s o p e r f o r m a c c o r d i n g t o r e l a t i o n s a n d environment at their work. What kind of employees would you rather have? If you give more than expected you will get more than expected in r e t u r n . To get loyal employees, you need to go beyond their expectations, just like your customers. They expect you to provide them with proper training to be able toperform their job duties. What if you go far beyond that? What would happen if you gave them training on personal growth? I am talking about growth in their careers and in their personal lives as well.Can you imagine what an impact it would make on each employee, if you taughtthem the habits of successful people? Why are so me people successful andothers not? Its not that they are smarter or better than others. Theyve justl e a r n e d h o w t o d e v e l o p t h e h a b i t s a n d a t t i t u d e s t h a t a r e n e c e s s a r y t o b e productive at work and to have a productive and happy life. The company thatwill provide this for their employees will have the most loyal staff and have peoplestanding in line to work there. Imagine what that will do for the marketing of your company.Todays companies are facing their toughest competition ever. These companiescan outdo their competition if they can move from product and sales philosophyto a marketing philosophy. We spell out in detail how companies can go aboutwinning customers and outperforming competitors. The answer lies in doing abetter job of meeting and satisfying customers needs. Only customer-centered companies are adept at building customers, not just building product. They areskilled in market engineering, not just product engineering.Too many companies think that it is the marketing/sales departments job to procure customers. If that department cannot, the company draws the conclusionthat its marketing people arent very good. But in fact, marketing is only onefactor in attracting and keeping customers. The best marketing department in theworld cannot spell products that are poorly made or fail to meet anyones need.The marketing department can be effective only in companies whose

variousdepartments and employees have designed and implemented a competitivelysuperior customer value-delivery system.Although the customer oriented firms seek to create high customer satisfaction,i t s m a i n g o a l i s t o m a x i m i z e c u s t o m e r s a t i s f a c t i o n , f i r s t t h e c o m p a n y c a n increase customer satisfaction by lowering its prices, but results may be lower profits second the company might be able to increase prices. Third the companyhas many stake-holders including employees, dealers, suppliers and stockholders spending more to increase customer satisfaction might divert funds fromincreasing the satisfaction of other partner. Estimate the company must operateon the philosophy that it is trying to deliver a high level of satisfaction to the other stake-holder within the constrains of its resources. From the past studies of lastthree decades we observed that the companys first task is to create and satisfycustomers. But todays customers face a vast array of product and brand choiceprices and suppliers.It is generally believed that customers estimate which offer will deliver the mostvalue customers are like value maximizes, within the bounds of search costs andlimited knowledge, mobility income, they form an expectation of value and act onit, whether or not the offer lives up to the value expectations affects customerssatisfaction and their repurchase probability The Link between Internal Customer Service andCustomer Loyalty There is compelling evidence that a strong connection between internal customer Service and customer loyalty exists. What was once described as a "mixed, complex relationship" between internal customer service and customer loyalty isn o w s e e n as a much clearer and reliable causal construct. "The b a s i c assumption is that if everybody strives to provide their internal customer withbetter service, then the end customer will receive higher quality service," has nowbeen empirically validated. The Strategy to Results Equation Includes Internal Customer Service The Strategy to Results approach to improve external customer loyalty mustinclude an internal customer service component. Why? Research has proventhat employees will only provide superior service to each other and to externalcustomers when they receive the same sort of service in return.Implementation of a Comprehensive Change Initiative Improving internal customer service is a major change initiative. In order to bes u c c e s s f u l , i t m u s t i n c l u d e a l i g n i n g s e n i o r m a n a g e m e n t , r e organizing andr e f i n i n g s y s t e m s , i m p l e m e n t i n g c u s t o m e r s e r v i c e t r a i n i n g , a n d s e r v i c e guarantees. Employees function as Internal Customers and Service Chain Partners Measuring the Impact of Internal Customer Service on External Customer LoyaltyIf a claim is made that improving internal customer service will result in increasedl e v e l s o f c u s t o m e r l o y a l t y e m p i r i c a l e v i d e n c e s h o u l d a l s o s u p p o r t i t . T h e measurement process that evaluates the impact of internal customer service improvement normally involves a number of methodologies including: Reviewing existing information Gathering new information as needed Analyzing data to answer key decision-maker questions Creating a credible findings report Catering to Customer Service Needs

Here are five tips for your organization to help strengthen its internal customer service orientation. 1. Employees should never complain within earshot of customers. It gives themthe impression your company isn't well run, shaking their confidence in you. 2. Employees should never complain to customers about other department'semployees. Who wants to patronize a company whose people don't get alongwith each other? 3. Employees at every level should strive to build bridges between departments.This can be done through cross training, joint picnics, parties or off-sites, or creative gatherings, as well as day-to-day niceties. 4 . U t i l i z e p o s t m o r t e m s a f t e r j o i n t p r o j e c t s s o e v e r y o n e c a n l e a r n f r o m t h e experience. You can mend fences and gain new understandings when everyonereviews what went right...or wrong. By doing so after the project the immediatepressure is off, yet stronger bonds can be forged while the experience is fresh inp e o p l e s ' m i n d s . N o t d o i n g s o c a n r e s u l t i n l i n g e r i n g a n i m o s i t i e s t h a t w i l l exacerbate future collaborations. 5. Let your employees become "Customer for a Day" to experience firsthandwhat your customers experience when doing business with you.Congratulations on turning customer service inside out! By improving internalcustomer service you have just enhanced the customer service your externalcustomers receive. You're walking your talk regarding customer service. Types of marketing to serve the relevant customers To serve a final customer first of all a company has to satisfy his employees. If employees are satisfied then they will ultimately satisfy the final customer. Threetypes of marketing arise. These are a follows:1) Internal marketing: It is defined as when company communicates its policies to the employees. Int h i s understands their employees & provides good working c o n d i t i o n , compensation and incentives so as to satisfy their employees. Company satisfiestheir employees because they are the person in touch with the final users. 2) External marketing: When company communicates with its final end user regarding the productcomplaints & suggestions so as to satisfy them. 3) Interactive marketing: In this, employees communicate company product to its final end usersWhat steps can I take to improve my customer satisfaction system? Contributing factors to satisfaction With that said, lets take a look at the factors which contribute to employeesatisfaction. Specifics has developed, and for over thirteen years has been usingan employee satisfaction questionnaire with questions centered around ten broadhuman resources categories: Communication Empowerment Performance Support

Development Recognition Compensation Benefits Client / Customer Relations Overall Satisfaction. How to Keep Internal Customers Happy and Satisfied Keeping your internal customers satisfied is the key to creating loyal externalcustomersWhen you think of a business, it is really composed of many customers and suppliers internally within the organization itself. In a manufacturing company for example, the sales department usually starts the process by getting an order from a customer. They pass this order to the Purchasing department, who sendsit to the Engineering department and from there it goes to Manufacturing and then is passed on to Shipping. Each of these departments has certain things theyneed from the prior department or internal supplier. Therefore each departmentis a supplier and a customer to each other. There is a domino effect betweeninternal customer satisfaction and external customer satisfaction. In order to produce happy external customers (the ones who buy your product/service), it isimportant and imperative to build customer satisfaction between the internal customers. Steps to build internal customer Satisfaction How do you do this? It consists of five simple steps:1. Have each department identify who is their internal customer and who is their internal supplier/s.2. Request each department to talk to their internal customers and ask themspecifically what is needed for them to do their jobs that they provide.3. Have them ask these internal customers what they currently do thatdisappoints them in delivering what they provide.4. Request they ask these internal customers what they could do that woulddelight them and make their jobs easier.5. Document all of the above.Keeping internal customers satisfied and happy is the first step towards creatingexternal customer loyalty. According to the Service Profit Chain (developed bythe Harvard Business School) this is where it begins. Yet, from what Ive seen,there are so few businesses that look at their organization as a microcosm of m a n y c u s t o m e r s a n d suppliers within the overall company and within epartments themselves. For instance, the telephone receptionist is a supplier tom o s t e v e r y individual and department delivering the product of calls o r messages.It is a like a chain, each link is important to the overall strength of the chain.When there is a broken link, the whole organization is weakened. When oneinternal department supplier is always late, delivers bad or wrong output, actsdiscourteously and disrespectfully to the next department it makes it muchmore difficult for the other departments to ensure the final external customer ishappy and satisfied. This is what creates the tension and stress that frustratesemployees and causes their job dissatisfaction. Customer service must

becomea requirement for all employees within an organization, not just those that dealwith external customers Internal customer satisfaction leads toExternal customer satisfactiondepartments themselves. For instance, the telephone receptionist is a supplier tom o s t e v e r y i n d i v i d u a l a n d d e p a r t m e n t d e l i v e r i n g t h e p r o d u c t o f c a l l s o r messages.It is a like a chain, each link is important to the overall strength of the chain.When there is a broken link, the whole organization is weakened. When one internal department supplier is always late, delivers bad or wrong output, actsdiscourteously and disrespectfully to the next department it makes it muchmore difficult for the other departments to ensure the final external customer ishappy and satisfied. This is what creates the tension and stress that frustratesemployees and causes their job dissatisfaction. Customer service must becomea requirement for all employees within an organization, not just those that dealwith external customers. Tips for building relationships with employees So what can you as a progressive leader - take from the above example?Below are few tips that can help you out on building excellent relationships withyour employees and making sure that they will want to give all they can. Consider your employees as your customers . Too often employers forgetthis. Without them you are not going to succeed. This is your first step: toacknowledge them as the most valuable members of the team. Be available and present for them . You would always make yourself availableto your clients do the same for your employees. They need to know that youare there for them, and that everyone is playing on one team. Be willing to share the companys goodies . Does your office purchase holidaygifts? Purchase additional items for your employees. If you as a manger receive a gift from a vendor, share it with your team. It is not the actual item thathas so much value but your willingness to treat your internal customers withkindness and respect. Exceed your employees expectations . You can create great relationships if you focus on this. Do more for them than it is expected. Take them out for dinner or lunch once a month just as a gesture of team spirit. Offer unexpected theater tickets or restaurant gift certificates for those who have few or no sick days withina period of time. Host a company play day at a local park. The possibilities arewide open the results are longlasting. Communicate the companys direction . Keeping employees informed offersthem a feeling of empowerment. It cements the fact that they ARE part of theteam. It also helps with aligning individual goals with those of the organization.Take time to provide detailed information about the businesss future and your internal customers place in it Performance measurement is integrated with prioritizing work. It identifies andmeasures those activities that are important to serving customers, whether internal or external. There is always the old adage, "what gets measured getsdone." Measures help management manage by fact. Production may haveperformance goals such as the completion of work orders on time. Purchasingmay be measured on frequency or percent of materials out of stock. Questionslike, "What does an employee do to support product and/or service

delivery?" or "What deliverables do they have?" help identify what to measure. Measurementshelp employees focus on the priorities and serving their internal customers. Improvement strategies may include sharing of successful strategies acrossthe company, recognition and reward programs for innovation, information fromcustomers of the internal processes, use of alternative technology and processanalysis. Some firms may require a redesign of the complete system to achieveeffective internal customer service.Established internal processes, training, measuring performance andimprovement strategies are all important to orienting and expecting your peopleto recognize their internal customers. They help build satisfaction with the workenvironment and loyalty to the firm. When employees recognize who they servewithin the organization, and treat them as a high priority like an external customer would be, not only does performance improve, employee satisfaction and loyaltyincrease. Internal Marketing The aim of internal marketing on a strategic level is the creation of an appropriateE n v i r o n m e n t that will support employees' interest in external c u s t o m e r satisfaction. It is the application of marketing inside an organization to instillcustomer-focused values. As such, it joins marketing with human resources toattract, motivate and retain employees, with an emphasis on getting employeecommitment to provide customer satisfaction and achieve organizational goals.Internal marketing is for the care of both customers and employees. It is basedon the relationship between employee satisfaction and customer satisfaction(take care of the employees, and they'll take care of the customers). It has beenproposed as a way of increasing lower level commitment to corporate strategiesand improving organizational integration. Internal marketing can be used toincrease employee involvement in reaching decision, making commitments andtaking action.Employees are a particularly important participant in the formulation of the imageT h o s e c u s t o m e r s g e t i n r e l a t i o n t o t h e o f f e r e d s e r v i c e . E x t e r n a l c u s t o m e r satisfaction can not be achieved withou t the fundamental contribution of thecustomer- contact employees who provide the service. The frontline employeesof the retail store interact with the majority of customers and generally handle awide range of customer transactions. Grnroos mentioned that the emergingimportance of services in almost every business has led to the recognition thatwell-trained and service- oriented employees are the most important resource of a company, rather than raw materials, production technology or the a c t u a l products. Since the employees meet the external customers and responsible for the offered service quality, they impact heavily on how the organization is viewedby the customers. It further states that the focus upon employee satisfaction inInternal marketing is due to the fact that in the marketing of services a large partof what customers ask for is in fact labor, or human acts of performance.Internal Marketing comes from the concept of services marketing. It is viewingEmployees as internal customers and jobs as internal products that satisfy theneeds and wants of these internal customers while addressing the objectives of the firm.In a definition of internal marketing this fact gets illustrated: Internal marketingis attracting, developing, motivating, and retaining qualified employees through job products that satisfy their needs. Internal Marketing is the philosophy of treating employees as customersand it is the strategy of shaping job-productsto fit human needs. Kotler explains that internal marketing is more importantthan conventional external marketing. The key to have

satisfied customers lies inh a v i n g s a t i s f i e d e m p l o y e e s . T h e o v e r a l l p u r p o s e o f i n t e r n a l m a r k e t i n g i s explained by Grnroos in three steps: To attract appropriate employees as contact persons and in management positions To retain good and appropriate employees And, to influence and motivate employees in order to make them customer oriented, marketing oriented and thereby make an effort as good as possiblein the interactive marketing process