Umer Farooq BBA Umer Farooq BBAZaman Hayaat NBA Zaman Hayaat NBA!nternal customer satisfaction leads to !nternal customer satisfaction leads to external customer satisfaction external customer satisfaction!nternal Customers !nternal CustomersAn internal customer or internal service provider can be An internal customer or internal service provider can be anyone in the organization. An internal customer can be a anyone in the organization. An internal customer can be a co coworker, another department, or a distributor who worker, another department, or a distributor who depends upon us to provide products or services which in depends upon us to provide products or services which in turn are utilized to create a deliverable for the external turn are utilized to create a deliverable for the external customer. !n general, internal customers don't have a customer. !n general, internal customers don't have a choice. For example, if the sales department doesn't like choice. For example, if the sales department doesn't like accounting's credit policies, they can't fire that department accounting's credit policies, they can't fire that department and hire another. and hire another.xternal Customers xternal Customersxternal customers are those persons who xternal customers are those persons who come from the outside to fulfill their come from the outside to fulfill their needs.e.g.the common people needs.e.g.the common peopleThe external customer is someone who The external customer is someone who signs a check, pays our employer, and signs a check, pays our employer, and ultimately makes our paycheck possible. ultimately makes our paycheck possible. xternal customers have choice, and if they xternal customers have choice, and if they don't like your product or service can take don't like your product or service can take their business elsewhere their business elsewhere !NT%NAL CUSTON%S !NT%NAL CUSTON%S A% !NPO%TANT? A% !NPO%TANT? Asset of an organization. Asset of an organization. Servicing the internal customer creates Servicing the internal customer creates opportunities to expand our network of opportunities to expand our network of people available to assist us in a variety of people available to assist us in a variety of situations. situations. Unhappy employees are less productive Unhappy employees are less productive and more likely to have higher absence and more likely to have higher absence rates rates !NT%NAL CUSTON%S !NT%NAL CUSTON%S A% !NPO%TANT? A% !NPO%TANT? !ncreases in job satisfaction lead to !ncreases in job satisfaction lead to increases in employee morale, which lead increases in employee morale, which lead to increased employee productivity to increased employee productivity mployee satisfaction leads to customer mployee satisfaction leads to customer retention retentionow Poor !nternal Customer ow Poor !nternal Customer Service Affects xternal Customers Service Affects xternal Customers !t's a general phenomenon that being an employee you !t's a general phenomenon that being an employee you can only satisfy your customer when you are being can only satisfy your customer when you are being satisfied by the organization, otherwise in case of satisfied by the organization, otherwise in case of dissatisfaction surely you will not treat your customers in dissatisfaction surely you will not treat your customers in well manner and this can result in external customer well manner and this can result in external customer dissatisfaction. dissatisfaction. !t can result in absenteeism, which will affect the service !t can result in absenteeism, which will affect the service level and will ultimately results in lower external level and will ultimately results in lower external customer satisfaction. customer satisfaction. !t can also result in employee's turnover, which as a !t can also result in employee's turnover, which as a result can affect the service level of the organization, and result can affect the service level of the organization, and hence can dissatisfy the external customers eventually. hence can dissatisfy the external customers eventually.efining customer satisfaction efining customer satisfactionustomer satisfaction ustomer satisfaction is the state of mind is the state of mind that customers have that customers have about a company about a company when their when their expectations have expectations have been met or exceeded been met or exceeded over the lifetime of the over the lifetime of the product or service. product or service. Satisfaction in different ways Satisfaction in different waysSatisfaction with the quality of a particular Satisfaction with the quality of a particular product or service product or service Satisfaction with an ongoing business Satisfaction with an ongoing business relationship relationship Satisfaction with the price Satisfaction with the priceperformance performance ratio of a product or service ratio of a product or service Satisfaction because a product/service met Satisfaction because a product/service met or exceeded the customer's expectations or exceeded the customer's expectations Satisfaction system weaknesses Satisfaction system weaknesses!t is measured too infrequently. !t is measured too infrequently.ustomers needs not defined clearly. ustomers needs not defined clearly.People are not trained well. People are not trained well.Feedback is not specific and frequent from Feedback is not specific and frequent from the customer side. the customer side.Service and morale levels are not upgraded. Service and morale levels are not upgraded.Neasuring !nternal Customer Neasuring !nternal Customer Satisfaction Satisfaction%apidly growing organization. %apidly growing organization.High or growing turnover rate. High or growing turnover rate.xcessive rumor's xcessive rumor'sHighly competitive industry. Highly competitive industry.Planned and recent organizational changes. Planned and recent organizational changes.N!TS O AN !NT%NAL N!TS O AN !NT%NAL CUSTON% SAT!SACT!ON SU% CUSTON% SAT!SACT!ON SU% !t creates better teamwork and much improved work !t creates better teamwork and much improved work process. process. !t leads to higher output and superior quality product. !t leads to higher output and superior quality product. !t decreases the turnover. !t decreases the turnover. %educed overheads, and increase customer satisfaction %educed overheads, and increase customer satisfaction level's inter departmental. level's inter departmental. !t enhances communication and hence helped in team !t enhances communication and hence helped in team building, hence there is less wasted effort caused by lack building, hence there is less wasted effort caused by lack of common purpose and poor communication. of common purpose and poor communication. A good employee feedback survey improves employee A good employee feedback survey improves employee attitude and boosts morals. attitude and boosts morals. !NT%NAL CUSTON% !NT%NAL CUSTON% SUPPL!% %LAT!ONS!P SUPPL!% %LAT!ONS!PThere will be less employee turnover. There will be less employee turnover.Optimum utilization of available resources will take Optimum utilization of available resources will take place. place.High job satisfaction and feeling of belongingness High job satisfaction and feeling of belongingness in employees. in employees.Oualitative product. Oualitative product.Least conflicts in the departments. Least conflicts in the departments.Cood reputation in the market and many more Cood reputation in the market and many more benefits can be accrued. benefits can be accrued. !nternal Customer Satisfaction !nternal Customer Satisfaction Process Process !dentify internal customers. !dentify internal customers. valuate the role of the employees(as a functional group) within the valuate the role of the employees(as a functional group) within the organization (self evaluation). organization (self evaluation). Determine actual performance level through survey of internal Determine actual performance level through survey of internal customers. customers. Determine the level of satisfaction required within the organization Determine the level of satisfaction required within the organization through survey of internal customers. through survey of internal customers. Neasure satisfaction level of internal customer with respect to needs Neasure satisfaction level of internal customer with respect to needs and expectations. and expectations. !dentify improvement opportunities in work process required. !dentify improvement opportunities in work process required. Determine process potential and develop action plans for better Determine process potential and develop action plans for better service. service. Nonitor, control and update. Nonitor, control and update.Consequences of !nternal S Consequences of !nternal S xternal customer satisfaction xternal customer satisfactionAlienation Alienation Coercion Coercion!nternal euphoria !nternal euphoriaSynergy Synergy!nternal and xternal Customer !nternal and xternal Customer Service Servicexternal customer xternal customer service serviceustomers act ustomers act according to service according to service and relations. and relations.The customer is your The customer is your paycheck! paycheck!!nternal and xternal Customer !nternal and xternal Customer Service Service!nternal Customer service !nternal Customer serviceHow 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 and Do they get attention for their ideas and work effort? work effort? What kind of relations and environment What kind of relations and environment they have at their workplace they have at their workplace!nternal and xternal Customer !nternal and xternal Customer Service ServiceThrough proper training Through proper trainingTell them the stories of successful people Tell them the stories of successful peopleTeam work should be appreciated Team work should be appreciated The Link between !nternal Customer The Link between !nternal Customer Service and Customer Loyalty Service and Customer Loyaltymployees function mployees function as !nternal as !nternal Customers and Customers and Service Chain Service Chain Partners PartnersThe Strategy to The Strategy to %esults quation %esults quation !ncludes !nternal !ncludes !nternal Customer Service Customer ServiceCatering to Customer Service Catering to Customer Service Needs Needs mployees should never complain within earshot of customers. !t gives mployees should never complain within earshot of customers. !t gives them the impression your company isn't well run, shaking their them the impression your company isn't well run, shaking their confidence in you. confidence in you. mployees should never complain to customers about other mployees should never complain to customers about other department's employees. Who wants to patronize a company whose department's employees. Who wants to patronize a company whose people don't get along with each other? people don't get along with each other? mployees at every level should strive to build bridges between mployees at every level should strive to build bridges between departments. This can be done through cross training, joint picnics, departments. This can be done through cross training, joint picnics, parties or off parties or offsites, or creative gatherings, as well as day sites, or creative gatherings, as well as dayto today day niceties. niceties. Utilize post mortems after joint projects so everyone can learn from Utilize post mortems after joint projects so everyone can learn from the experience. the experience. Let your employees become "ustomer for a Day" to experience Let your employees become "ustomer for a Day" to experience firsthand what your customers experience when doing business with firsthand what your customers experience when doing business with you. you. Types of marketing to serve the Types of marketing to serve the relevant customers relevant customersxternal marketing xternal marketing!nternal marketing !nternal marketing!nteractive marketing !nteractive marketingContributing factors to Contributing factors to satisfaction satisfactionommunication ommunicationmpowerment mpowermentPerformance PerformanceSupport SupportDevelopment Development%ecognition %ecognitionompensation ompensationBenefits Benefitslient / ustomer %elations lient / ustomer %elationsOverall Satisfaction. Overall Satisfaction.Steps to build internal customer Steps to build internal customer Satisfaction 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 %equest each department to talk to their internal %equest each department to talk to their internal customers and ask them specifically what is needed for customers and ask them specifically what is needed for them to do their jobs that they provide. 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 they currently do that disappoints them in delivering what they provide. provide. %equest they ask these internal customers what they could %equest they ask these internal customers what they could do that would delight them and make their jobs easier. do that would delight them and make their jobs easier.Tips for building relationships Tips for building relationships with employees with employeesConsider your employees as your customers Consider your employees as your customers. . e available and present for them e available and present for them. . e willing to share the company's goodies e willing to share the company's goodies. . xceed your employees' expectations xceed your employees' expectations. . Communicate the company's direction Communicate the company's directionSay thank you. Say thank you.ollow ollow up and ask for their feedback up and ask for their feedback. . Supporting Processes for Supporting Processes for !nternal customer satisfaction !nternal customer satisfactionuman resource support uman resource support includes facilitating includes facilitating the selection, development and motivation of the selection, development and motivation of employees within the organization. employees within the organization. acility management acility management is concerned with not only is concerned with not only the protection of the company's assets, its highest the protection of the company's assets, its highest priority is to the health and safety of the priority is to the health and safety of the employees. !n addition to the obvious safety employees. !n addition to the obvious safety precautions, a careful analysis of ergonomics precautions, a careful analysis of ergonomics ensures that the workplace is suitable for the work ensures that the workplace is suitable for the work being done. being done. Supporting Processes for Supporting Processes for !nternal customer satisfaction !nternal customer satisfactionTechnology support Technology support can make the can make the difference in a company's competitive edge. difference in a company's competitive edge. Technology can be used to reduce costs and Technology can be used to reduce costs and improve information flow and availability. improve information flow and availability. Performance measurement Performance measurement is integrated is integrated with prioritizing work. !t identifies and with prioritizing work. !t identifies and measures those activities that are important measures those activities that are important to serving customers, whether internal or to serving customers, whether internal or external. external. Supporting Processes for Supporting Processes for !nternal customer satisfaction !nternal customer satisfaction!mprovement strategies !mprovement strategies may include may include sharing of successful strategies across the sharing of successful strategies across the company, recognition and reward programs company, recognition and reward programs for innovation, information from customers for innovation, information from customers of the internal processes, use of alternative of the internal processes, use of alternative technology and process analysis. Some technology and process analysis. Some firms may require a redesign of the firms may require a redesign of the complete system to achieve effective complete system to achieve effective internal customer service. internal customer service.Supporting Processes for Supporting Processes for !nternal customer satisfaction !nternal customer satisfaction!nternal Narketing !nternal Narketing!t is the application of marketing inside an !t is the application of marketing inside an organization to instill customer organization to instill customer focused focused values. As such, it joins marketing with values. As such, it joins marketing with human resources to attract, motivate and human resources to attract, motivate and retain employees, with an emphasis on retain employees, with an emphasis on getting employee commitment to provide getting employee commitment to provide customer satisfaction and achieve customer satisfaction and achieve organizational goals. organizational goals.!nternal Narketing !nternal NarketingSUNN!NC UP SUNN!NC UPConclusion Conclusion