CUSTOMER PERSPECTIVE

ANDRIS
MARSHA ANNISA EL FIRDAUSY
RIDHA FAUZIYAH
RINDO WIFARSYAH
Who is the Customer?

On the Customer perspective of the Balanced

Scorecard you need to reflect expectations of:
a. Partners (dealer, distributor), and
b. Customers
 A template for customer perspective

Customer perspective two umbrella-objectives:

Add and retain high-value customers. We need to support this objective with customer
value proposition details, such as product quality, shopping experience and other.
Achieve and retain win-win partner relations. This umbrella objective need to be
supported with the specific objectives that form the value for the partners, for example
reduced product price, product availability, and a partner support program.
 Background
This perspective is very instrumental, because without customers,
how can a company survive?
In the Past, companies could concentrate on internal capabilities,
empahasizing product performance, and technology innovation, but
they did not understand their customers needs.
Thus, now companies are shifting their externally, to customers
They must create and deliver products and services that are valued
by customers
The customer perspective of the scorecard translates an
organization mission and strategy into specific objective about
targeted customer and market segments that can be communicated
throughtout the organization.
 OBJECTIVES OF CUSTOMER
PERSPECTIVE
1. Enables companies to align their core
customer outcome measures- satisfaction,
loyalty, retention, acquisition, and
profitability- to targeted customers and
market segments
2. Enables them to identify and measure,
explicity, the value propositions they will
deliver to targeted customers and market
segments
 MARKET SEGMENTATION
Companies that try to be everything to be everybody
usually end up being nothing to everyone
Businesses must identify the market segments in their
existing and potential customer populations and then
select the segments in which they choose to compete
Once a business has identified and targeted its market
segments, it can address the objectives and measures
for its targeted segements.
Now, What are measures of customers perspective?
 Two sets of Measures of Customers
Perspectives
1. Customers Core Measurement Group
Customers Core Measurement Group is generic
across all kinds of organizations. They are :
Market Share
Customer Retention
Customer Acquisition
Customer Satisfaction
Customer Profitabilty
1. Market and Account Share
It reflects the proportion of business in a given
market ( in term of number customers, dollars
spent, or unit volume sold) that a business unit
sells.
2. Customer Acquisition
Measures, the rate at which a business unit attracts
or wins a new customers
3. Customer Retention
Tracks, the rate at which a business unit retains or
maintains ongoing relationship with its customers
4 . Customer Satisfaction
Assesses the satisfaction level of customer along
specific performance criteria within the value
proposition
5. Customer profitability
Measures the net profit of a customer, or a
segment, after allowing for the unique expenses
required to support that customer
2. Customer Value Proposition
It represents the attributes that supplying
companies provide, through their products
and services, to create loyalty and satisfaction
in targeted customer segments.
The Value proposition is the key concept for
understanding the drivers of core
measurements of satisfaction, acquisition,
retention, and market and account share.
 Value propositions vary across industries and
across market segments within industries.
Here is common set of attributes that
organizes the value propositions in all of the
industries
Product/service attributes
Customer Relationship
Image and Reputation