internal customer satisfaction leads to external customer satisfaction

Umer Farooq BBAUmer Farooq BBAZaman Hayaat MBAZaman Hayaat MBA

Internal customer satisfaction Internal customer satisfaction leads to external customer leads to external customer

satisfactionsatisfaction

Internal CustomersInternal Customers

An internal customer or internal service provider An internal customer or internal service provider can be anyone in the organization. An internal can be anyone in the organization. An internal customer can be a co-worker, another department, customer can be a co-worker, another department, or a distributor who depends upon us to provide or a distributor who depends upon us to provide products or services which in turn are utilized to products or services which in turn are utilized to create a deliverable for the external customer. In create a deliverable for the external customer. In general, internal customers don't have a choice. For general, internal customers don't have a choice. For example, if the sales department doesn't like example, if the sales department doesn't like accounting's credit policies, they can't fire that accounting's credit policies, they can't fire that department and hire another.department and hire another.

External CustomersExternal Customers

►External customers are those persons External customers are those persons who come from the outside to fulfill who come from the outside to fulfill their needs.e.g.the common peopletheir needs.e.g.the common people

►The external customer is someone The external customer is someone who signs a check, pays our employer, who signs a check, pays our employer, and ultimately makes our paycheck and ultimately makes our paycheck possible. External customers have possible. External customers have choice, and if they don't like your choice, and if they don't like your product or service can take their product or service can take their business elsewherebusiness elsewhere

WHY INTERNAL CUSTOMERS WHY INTERNAL CUSTOMERS ARE IMPORTANT?ARE IMPORTANT?

► Asset of an organization.Asset of an organization.► Servicing the internal customer Servicing the internal customer

creates opportunities to expand our creates opportunities to expand our network of people available to assist network of people available to assist us in a variety of situations. us in a variety of situations.

► Unhappy employees are less Unhappy employees are less productive and more likely to have productive and more likely to have higher absence rateshigher absence rates

WHY INTERNAL CUSTOMERS WHY INTERNAL CUSTOMERS ARE IMPORTANT?ARE IMPORTANT?

► Increases in job satisfaction lead to Increases in job satisfaction lead to increases in employee morale, which increases in employee morale, which lead to increased employee lead to increased employee productivityproductivity

► Employee satisfaction leads to Employee satisfaction leads to customer retentioncustomer retention

How Poor Internal Customer How Poor Internal Customer Service Affects External Service Affects External

CustomersCustomers► It’s a general phenomenon that being an It’s a general phenomenon that being an

employee you can only satisfy your customer employee you can only satisfy your customer when you are being satisfied by the organization, when you are being satisfied by the organization, otherwise in case of dissatisfaction surely you will otherwise in case of dissatisfaction surely you will not treat your customers in well manner and this not treat your customers in well manner and this can result in external customer dissatisfaction.can result in external customer dissatisfaction.

► It can result in absenteeism, which will affect the It can result in absenteeism, which will affect the service level and will ultimately results in lower service level and will ultimately results in lower external customer satisfaction.external customer satisfaction.

► It can also result in employee’s turnover, which as It can also result in employee’s turnover, which as a result can affect the service level of the a result can affect the service level of the organization, and hence can dissatisfy the organization, and hence can dissatisfy the external customers eventually.external customers eventually.

Defining customer Defining customer satisfactionsatisfaction

► Customer Customer satisfaction is the satisfaction is the state of mind that state of mind that customers have customers have about a company about a company when their when their expectations have expectations have been met or been met or exceeded over the exceeded over the lifetime of the lifetime of the product or service. product or service.

Satisfaction in different waysSatisfaction in different ways

►Satisfaction with the quality of a Satisfaction with the quality of a particular product or service particular product or service

► Satisfaction with an ongoing business Satisfaction with an ongoing business relationship relationship

► Satisfaction with the price-performance Satisfaction with the price-performance ratio of a product or service ratio of a product or service

► Satisfaction because a product/service Satisfaction because a product/service met or exceeded the customer's met or exceeded the customer's expectations expectations

Satisfaction system Satisfaction system weaknessesweaknesses

► It is measured too infrequently.It is measured too infrequently.►Customers needs not defined clearly.Customers needs not defined clearly.►People are not trained well.People are not trained well.►Feedback is not specific and frequent Feedback is not specific and frequent

from the customer side.from the customer side.►Service and morale levels are not Service and morale levels are not

upgraded.upgraded.

Measuring Internal Measuring Internal Customer SatisfactionCustomer Satisfaction

►Rapidly growing organization.Rapidly growing organization.►High or growing turnover rate.High or growing turnover rate.►Excessive rumor'sExcessive rumor's►Highly competitive industry.Highly competitive industry.►Planned and recent organizational Planned and recent organizational

changes.changes.

BENEFITS OF AN INTERNAL BENEFITS OF AN INTERNAL CUSTOMER SATISFACTION CUSTOMER SATISFACTION

SURVEYSURVEY► It creates better teamwork and much improved work It creates better teamwork and much improved work

process.process.► It leads to higher output and superior quality product.It leads to higher output and superior quality product.► It decreases the turnover.It decreases the turnover.► Reduced overheads, and increase customer Reduced overheads, and increase customer

satisfaction level's inter departmental.satisfaction level's inter departmental.► It enhances communication and hence helped in It enhances communication and hence helped in

team building, hence there is less wasted effort team building, hence there is less wasted effort caused by lack of common purpose and poor caused by lack of common purpose and poor communication.communication.

► A good employee feedback survey improves A good employee feedback survey improves employee attitude and boosts morals. employee attitude and boosts morals.

INTERNAL CUSTOMER-INTERNAL CUSTOMER-SUPPLIER RELATIONSHIPSUPPLIER RELATIONSHIP

► There will be less employee turnover.There will be less employee turnover.►Optimum utilization of available resources Optimum utilization of available resources

will take place.will take place.►High job satisfaction and feeling of High job satisfaction and feeling of

belongingness in employees.belongingness in employees.►Qualitative product.Qualitative product.► Least conflicts in the departments.Least conflicts in the departments.►Good reputation in the market and many Good reputation in the market and many

more benefits can be accrued. more benefits can be accrued.

Internal Customer Internal Customer Satisfaction ProcessSatisfaction Process

► Identify internal customers.Identify internal customers.► Evaluate the role of the employees(as a functional group) Evaluate the role of the employees(as a functional group)

within the organization (self evaluation).within the organization (self evaluation).► Determine actual performance level through survey of Determine actual performance level through survey of

internal customers.internal customers.► Determine the level of satisfaction required within the Determine the level of satisfaction required within the

organization through survey of internal customers.organization through survey of internal customers.► Measure satisfaction level of internal customer with respect Measure satisfaction level of internal customer with respect

to needs and expectations.to needs and expectations.► Identify improvement opportunities in work process Identify improvement opportunities in work process

required.required.► Determine process potential and develop action plans for Determine process potential and develop action plans for

better service.better service.► Monitor, control and update.Monitor, control and update.

Consequences of Internal & Consequences of Internal & External customer External customer

satisfactionsatisfaction►Alienation Alienation ► CoercionCoercion► Internal euphoriaInternal euphoria► SynergySynergy

Internal and External Customer Internal and External Customer ServiceService

External customer External customer serviceservice

► Customers act Customers act according to service according to service and relations.and relations.

► The customer is The customer is your paycheck!your paycheck!


Internal Customer serviceInternal Customer service►How they feel at work How they feel at work ►Do they feel important and special? Do they feel important and special? ►Do they get attention for their ideas Do they get attention for their ideas

and work effort? and work effort? ►What kind of relations and What kind of relations and

environment they have at their environment they have at their workplaceworkplace


►Through proper trainingThrough proper training►Tell them the stories of successful Tell them the stories of successful

peoplepeople►Team work should be appreciated Team work should be appreciated

The Link between Internal The Link between Internal Customer Service and Customer Customer Service and Customer

LoyaltyLoyalty► Employees Employees

function as function as Internal Internal Customers and Customers and Service Chain Service Chain PartnersPartners

► The Strategy to The Strategy to Results Equation Results Equation Includes Internal Includes Internal Customer ServiceCustomer Service

Catering to Customer Catering to Customer Service NeedsService Needs

► Employees should never complain within earshot of Employees should never complain within earshot of customers. It gives them the impression your company isn't customers. It gives them the impression your company isn't well run, shaking their confidence in you.well run, shaking their confidence in you.

► Employees should never complain to customers about other Employees should never complain to customers about other department's employees. Who wants to patronize a company department's employees. Who wants to patronize a company whose people don't get along with each other? whose people don't get along with each other?

► Employees at every level should strive to build bridges Employees at every level should strive to build bridges between departments. This can be done through cross between departments. This can be done through cross training, joint picnics, parties or off-sites, or creative training, joint picnics, parties or off-sites, or creative gatherings, as well as day-to-day niceties.gatherings, as well as day-to-day niceties.

► Utilize post mortems after joint projects so everyone can learn Utilize post mortems after joint projects so everyone can learn from the experience. from the experience.

► Let your employees become "Customer for a Day" to Let your employees become "Customer for a Day" to experience firsthand what your customers experience when experience firsthand what your customers experience when doing business with you. doing business with you.

Types of marketing to serve Types of marketing to serve the relevant customersthe relevant customers

►External marketingExternal marketing►Internal marketingInternal marketing►Interactive marketingInteractive marketing

Contributing factors to Contributing factors to satisfactionsatisfaction

► CommunicationCommunication► EmpowermentEmpowerment► PerformancePerformance► SupportSupport►DevelopmentDevelopment► RecognitionRecognition► CompensationCompensation► BenefitsBenefits► Client / Customer RelationsClient / Customer Relations►Overall Satisfaction.Overall Satisfaction.

Steps to build internal Steps to build internal customer Satisfactioncustomer Satisfaction

► Have each department identify who is their internal Have each department identify who is their internal customer and who is their internal supplier/s customer and who is their internal supplier/s

► Request each department to talk to their internal Request each department to talk to their internal customers and ask them specifically what is needed customers and ask them specifically what is needed for them to do their jobs that they provide.for them to do their jobs that they provide.

► Have them ask these internal customers what they Have them ask these internal customers what they currently do that disappoints them in delivering what currently do that disappoints them in delivering what they provide.they provide.

► Request they ask these internal customers what they Request they ask these internal customers what they could do that would delight them and make their jobs could do that would delight them and make their jobs easier.easier.

Tips for building Tips for building relationships with relationships with

employeesemployees► Consider your employees as your Consider your employees as your

customerscustomers. . ►Be available and present for themBe available and present for them. . ►Be willing to share the company’s Be willing to share the company’s

goodiesgoodies. . ► Exceed your employees’ expectationsExceed your employees’ expectations. . ► Communicate the company’s directionCommunicate the company’s direction► Say thank you.Say thank you. ► Follow-up and ask for their feedbackFollow-up and ask for their feedback. .

Supporting Processes for Supporting Processes for Internal customer Internal customer

satisfactionsatisfaction►Human resource supportHuman resource support includes includes

facilitating the selection, development and facilitating the selection, development and motivation of employees within the motivation of employees within the organization. organization.

► Facility managementFacility management is concerned with not is concerned with not only the protection of the company's assets; its only the protection of the company's assets; its highest priority is to the health and safety of highest priority is to the health and safety of the employees. In addition to the obvious the employees. In addition to the obvious safety precautions, a careful analysis of safety precautions, a careful analysis of ergonomics ensures that the workplace is ergonomics ensures that the workplace is suitable for the work being done. suitable for the work being done.


satisfactionsatisfaction►Technology support Technology support can make the can make the

difference in a company's competitive difference in a company's competitive edge. Technology can be used to edge. Technology can be used to reduce costs and improve information reduce costs and improve information flow and availability. flow and availability.

►Performance measurement Performance measurement is is integrated with prioritizing work. It integrated with prioritizing work. It identifies and measures those activities identifies and measures those activities that are important to serving that are important to serving customers, whether internal or external. customers, whether internal or external.


satisfactionsatisfaction►Improvement strategiesImprovement strategies may include may include

sharing of successful strategies across the sharing of successful strategies across the company, recognition and reward company, recognition and reward programs for innovation, information from programs for innovation, information from customers of the internal processes, use of customers of the internal processes, use of alternative technology and process alternative technology and process analysis. Some firms may require a analysis. Some firms may require a redesign of the complete system to redesign of the complete system to achieve effective internal customer achieve effective internal customer service.service.


satisfactionsatisfaction► Internal MarketingInternal Marketing

It is the application of marketing inside It is the application of marketing inside an organization to instill customer-an organization to instill customer-focused values. As such, it joins focused values. As such, it joins marketing with human resources to marketing with human resources to attract, motivate and retain attract, motivate and retain employees, with an emphasis on employees, with an emphasis on getting employee commitment to getting employee commitment to provide customer satisfaction and provide customer satisfaction and achieve organizational goals.achieve organizational goals.

Internal MarketingInternal Marketing

SUMMING UPSUMMING UP

ConclusionConclusion

internal customer satisfaction leads to external customer satisfaction

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