Download - Internal Customer Satisfaction Leads ToExternal Customer SatisfactionViInternal Customer Satisfaction

7/31/2019 Internal Customer Satisfaction Leads ToExternal Customer SatisfactionViInternal Customer Satisfaction

1/13

Internal customer satisfaction leads toExternal customersatisfactionV i I n t e r n a lC u s t o m e rS a t i s f a c t i o n

. 0 9 V i i I n t e r n a lC u s t o m e rS a t i s f a c t i o nP r o c e s s . 1 1 V i i i I n t e rn a l a n d E x t e r n a lC u s t o m e rS e r v i c e . 1 1 I x T h e L i n kB 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 andCustomer Loyalty.14x C a t e r i n gt o C u s t o m e rS e r v i c e

N e e d s . 1 4 X i C o n tr i b u t i n gf a c t o r s t os a t i s f a c t i o n . 1 6 Xi 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 sH a p p y a n d S a t i s f i e d ? 1 6 xiiiTips for building relationships withemployees.17

INTRODUCTIONFirst of all we must define the internal and external customers before discussingthere la t i onsh ip be tween the in te rna l cus tomers sa t i s fac t i on andexte rna lcustomer satisfaction.

Internal Customers:Internal customer is a technical term used inmanagement sciencepopularizedby Joseph M. Juran.Hedefined internal and external customers as anyone affected by the product or b y t h ep r o c e s s u s e d t o p r o d u c e t h e p r o d u c t , i n t h e c o n t e x t o fq 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 rin te rn a l se rv i c e p ro v i de r c an be an yo ne in th e organization. Aninternal customer can be a co-worker, another department, or a4

Internal customer satisfaction leads toExternal customer satisfactiondistributor who depends upon usto provide products or services which in turn areutili zed to create a deli verable for theexternal customer. In general, internalcustomers don't have a choice. Forexample, if the sales department doesn't likeaccounting's credi t pol icies, they can' tfire that department and hire another.He claimed that the organization mustunderstand and identify both internal andexternal customers and their needs. Theorganization must focus on its primarytask of satisfying the customers requirements andexpectations.If one department, individual or process within an organization supplies
http://en.wikipedia.org/wiki/Management_sciencehttp://en.wikipedia.org/wiki/Management_sciencehttp://en.wikipedia.org/wiki/Management_science


2/13

another such within the same organization with goods, information or services thenthelatter is described as the internal customer of the former.For example, a dispatch departmentmay be the internal customer of a packingdepartment, which in turn may be theinternal customer of the manufacturingprocess. Juran advocated 'exceeding thecustomer's expectations.'

External Customers:External customers are those persons who come from the outside to fulfill their needs.e.g.the commonpeopleThe external customer is someone who signs a check, pays our employer,andultimately makes our paycheck possible. External customers have choice, and if theydon't like your product or service can take their business elsewhereWHY 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 internalcustomers?)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 so 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 ofsituations. The moreyou meet with fellow employees or talk to them, the more you are aware of howthey can assist you and in turn assist the customer. You have better opportunities for

advancement because your interest in others increasesyour knowledge of yourinstitution. You provide quality service on aconsistent basis to all customers-internal or externanternal customer satisfaction leads toExternal customer satisfactionAnd if we talk in terms of satisfiedinternal customers than they become importantbecause.1.Unhappy employees are lessproductive and more likely to have higher absence rates2.Satisfied employees are moreproductive, innovative, and loyal3.Increases in job satisfaction lead to increases in employee morale, whichlead to increased employeeproductivity4.Employee satisfaction leads to cust omer retention5.Between 40 and 80 percent of customer satisfaction and loyalty isdetermined by the customer-employee relationship, depending upon theindustry and market segment.Internal customerservice is recognizing that everyone has a role in servicing theneeds of the externalcustomer. One branch customer service representativestated how she feelsabout internal customers: "I need the expertise of our backoffice people. I realize that if Iprovide the necessary information, they can cutthrough many of the obstaclesand sol ve c ust ome r p rob lem s qu ick ly. I ' ve developed a relat ionship withthem, and call them as needed. And, when theproblem is solved, I call to thankthem. Also, our office sends cards to back officedepartments to show our appreciation. Ithink it is that recognition that lets themk n o w t h e y h e l p e du 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 ExternalCustomersWhile companies focus thousands of dollars on external customer serviceinhopes of wooing and retaining customers, little attention is being paid to


3/13

theeffect poor internal customer service has on overall customer satisfaction. Itallstarts within your organization! Sooner or later the ripple effect reachesyour external customers. To really walk your service talk, your commitment tointernalcustomer service must match your company's external focus on customercare. When we think of customer service we think of staff serving customers

over acounter or over the phone. But customer service occurs within yourorganizationas well. How well does staff serve its internal customers: otherdepartments, 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.W e c a n d e f i n e I n t e r n a l C u s t o m e r S e r v i c e a s e f f e c t i v e l ys e r v i n g o t h e r d e p a r t m e n ts w i t h i n y o u r o r g a n i z a t i on . H o ww e l l a r e yo u p ro v i d i n g o t he r departments with service, products orinformation to help them do thei r jobs?How well are you listening to andunderstanding their concerns? How well areyou solving problems for each other to help yourorganization succeed?It effects in following ways.

1.Its a general phenomenon that being an employee you can only satisfyyour customerwhen you are being satisfied by the organization, otherwisein case of dissatisfaction surely youwill not treat your customers in wellmanner and this can result in external customerdissatisfaction.2.It can result in absenteeism, which will affect the service level and will ultimatelyresults in external customer satisfaction.3.It can also result in employees turnover, which as a result can affect theservice levelof the organization, and hence can dissatisfy the externalcustomers eventuallDefining customer satisfactionBecause the concept of customer satisfaction is new to many companies, it'simportant to be clear onexactly what's meant by the term.Customer satisfaction is the state of mind that customers have abouta companywhen their expectations have been met or exceeded over thelifetime of theproduct or service. The achievement of customer satisfaction leads tocompanyloyalty and product repurchase. There are some importantimplications of thisdefinition:Because customer satisfaction is a subjective, non quantitativestate,measurement won't be exact and will require sampling and statistical analysis.Customersatisfaction measurement must be undertaken with anunderstanding of the gap between customerexpectations and attributeperformance perceptions.There should be some connection betweencustomer satisfactionmeasurement and bottom-line resultsSatisfaction" 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


4/13

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 torepurchaseand/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

cu s t om er se r v i c e a s a no rgan i za t i ona l r espons ibi l i ty . Howeve r , t oo

often, a single department in avertically structured organization is held

accountable for apparent customer se rvi ce fai lur es tha t, fo r the mos t

par t , o r i g inate outs ide tha t depar tmen 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

t h a t c o u l d o f t e n b e a v o i d e d o r a t l e a s t , t h e r e s o l u t i o n c o u l d

b e hastened, through better customer service or communication.a key premise in customer

satisfaction understands the needs and meeting, or exceed ing, the exp ecta t ions

of customers. Furthermore, this is done whileoptimally 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 externa l customer satisfact ion, can work together and

assist eachother to achieve the common objective. In this case, each person mustimprovewhat 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 businessenvironmentwhere, all other factors remaining more or less constant, it is the value addition tothecustomer that is making all the difference.Customer satisfaction depends on the performance relativeto expectations.Customer satisfaction survey is the process to monitor the satisfaction quotient of theirpeople. In internal satisfaction surveys therefore tracks the return on your investmentsin keeping your people happy, high salaries, a quality culture, ahealthy workenvironment.Last, but not the least internal customer satisfaction survey helps in finding thecritical


5/13

areas, which need further improvement.Need of Internal Customer Satisfaction Survey arises due tofollowing reasonsRapidly growing organization.High or growing turnover rate.

Excessive rumor'sHighly competitive industry.Planned and recent organizational changes.BENEFITS OF AN INTERNAL CUSTOMER SATISFACTION SURVEYIt 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, hencethere isless wasted effort caused by lack of common purpose and poor communication.A good employee feedback survey improves employee attitude andboosts morals.NTERNAL CUSTOMER-SUPPLIER RELATIONSHIPIn an organization, from procuring an order to delivering the final product,aser ies o f ac t iv i t ies takes p lace. There are d i f fe rent dept ts . To whichtheseactivities are assigned e.g. Raw material for production is purchasedby 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 acustomer is well known from the maxim, Customer isthe k ing . Ea r l ie r , o rgan iza t iona ladministrators concentrated only on thesatisfact ion of externalcustomers i .e. the target market. But now it is beingrealized that if the internalcustomer is satisfied the quality as well as the quantityis also appreciable. Higherthe customer satisfaction index, higher will be theuality 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 ofavailable 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


6/13

Internal customer satisfaction leads toExternal customer satisfactionquality of the production.This results in the satis faction of external customersand ultimately brings profits& prosperity to the organization. It can benefit theorganization in following ways:-1) There willbe less employee turnover.2) Optimum utilization of available resources will take place.3) High jobsatisfaction 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 withtheproduct and services provided by it as it will result into an overall improvement of theorganization.Internal Customer Satisfaction ProcessIt consists of the following major steps.1.Identify internal customers .2.Evaluate the role ofthe credit, collection and accounts receivablesadministration (as a functional group) within theorganization (self evaluation).3.Determine actual performance level through survey ofinternal customers.4.Determine the level of satisfaction required within the organizationthroughsurvey of internal customers.5.Measure satisfaction level of internal customer withrespect to needs andexpectations.6.Identify improvement opportunities in work process

required.7.Determine process potential and develop action plans for betterservice.8. Mon ito r, con tro l an d u pda tenternal and External Customer ServiceWhy 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 serviceCustomer loyalty is created by strong relationships where the customer feelsspecial and important.People buy products and services on an emotional feeling.The fee l ing can be to fee lgood, safe, ef fe ct ive and even to incre ase thei r confidence. Customersbuy a product for the same reason. I f the product or service gives them a goodfeeling, they will continue to buy that over and over aga in . Bu t , i f the companytha t se l ls tha t p roduct doesn ' t make them fee l important or special, they will buy itsomewhere else.T h e c u s t o m e ri s y o u rp a y c h e c k !This is what most companies fail to realize! The customer pays for theentirestaffs living, carpayments, vacations, food, etc. The employees think thatthemoney they make comes from the company. Yes, someone at thecompanysigns their checks, but the money comes from the customers. If the staffbeginsto understand this, they will treat every single customer differently. Theywouldmake sure that the customer service and customer relations would beon top,always.Lets look at how we treat our guests at home. We dress nice, plan andpreparefor their arrival, set the table with the nicest chinaware, glasses, andsilverware,etc. When our guests arrive, we smile and say welcome. We complimentthemon their choice of clothing, and our highest priority is that they will have agreattime. When they leave we thank them for visiting, and we dont mind if they


7/13

tellsome friends what a great time they had at our house.Imagine if you and your associates putthe same effort into every customer thatwalks in your front door. After all it is thecustomers that make it possible for youto invite your friends into your home. It is thecustomers that pay for everythingyou own and will buy in the future. Imagine that every customerwill 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 recommendyo u a n dr e f e r y o u t o e v e r y b o d y t h e y k n o w t h a t c a n u s e y o u r p r o d u c t so r services?C u s t o m e r s a c t a c c o r d i n g t os 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 theygetwhen buy ing f rom you. As you can see, sa t is f ied customers arenot loya l .Satisfied customers dont refer you to other customers like loyal customersdo.Which would you rather have, 100 satisfied customers or 100 loyal customers?Internal Customer serviceYour 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 re x t e r n a l c u s t o m e r s . Their loyalty and productivity also dependon how they feel at work. Do they feelimportant and special? Do they get attentionfor their ideas and work ef fort?Ju s t l i ke cu s t o me rs , em p lo ye e s a l sop 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 ofemployees would you rather have?I f you g ive more than expected you wi l l ge t more than expected in

re tu rn .To get loyal employees, you need to go beyond their expectations, just likeyour customers. They expect you to provide them with proper training to be abletoperform their job duties. What if you go far beyond that? What would happen if yougave them training on personal growth? I am talking about growth in their careers and intheir personal lives as well.Can you imagine what an impact it would make on eachemployee, if you taughtthem the habi ts of successful people? Why are somepeople successful andothers not? Its not that they are smarter or better thanothers. Theyve just learned how to deve lop the hab i ts and a t t i tudestha t a re necessary to be productive at work and to have a productive and happylife. The company thatwill provide this for their employees will have the most loyal staff and havepeoplestanding in line to work there. Imagine what that will do for the marketing ofyour company.Todays companies are facing their toughest competition ever. These companiescanoutdo their competition if they can move from product and sales philosophyto amarketing philosophy. We spell out in detail how companies can go aboutwinningcustomers and outperforming competitors. The answer lies in doing abetter job ofmeeting and satisfying customers needs. Only customer-centeredcompanies 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 toprocure 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


8/13

variousdepartments and employees have designed and implemented a

competitive lysuperior customer value-delivery system.Although the customer oriented firms

seek to create high customer satisfaction,its main goal is to maximize

cu st om er sa ti sf ac ti on , fi rs t th e co mp an y ca 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 inc luding

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 actonit, whether or not the offer lives up to the value expectations affects

customerssatisfaction and their repurchase probability

The Link between Internal Customer Service andCustomer LoyaltyThere is compelling evidence that a strong connection between internal customer Service andcustomer loyalty exists. What was once described as a "mixed,complexrelationship" between internal customer service and customer loyalty isn o w s e e na s a m u c h c l e a r e r a n d r e l i a b l e c a u s a l c o n s t r u c t . " T h eb a s i c assumption is that if everybody strives to provide their internal customerwithbetter service, then the end customer will receive higher quality service," has nowbeen empirically

validated.The Strategy to Results Equation Includes Internal Customer ServiceThe Strategy to Results approach to improve external customer loyaltymustinclude an internal customer service component. Why? Research hasproventhat employees will only provide superior service to each other and toexternalcustomers when they receive the same sort of service in return.Implementation of aComprehensive Change InitiativeImproving internal customer service is a major change initiative. In order tobesuccessfu l , i t m ust inc lude a l i gn ing sen ior management , re -o rga ni zin g a nd r 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 etraining, and serviceguarantees.

Employees function as Internal Customers and Service Chain PartnersMeasuring the Impact of Internal Customer Service on External Customer LoyaltyIf a claim is madethat improving internal customer service will result in increasedleve ls o f cus tomer loya l t yempi r ica l ev id ence shou ld a lso suppo rt i t . The measurement processthat evaluates the impact of internal customer serviceimprovement normally involvesa number of methodologies including: Reviewing existing information Gathering new information asneeded Analyzing data to answer key decision-maker questions Creating a credible findings reportCatering to Customer Service Needs


9/13

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 yourcompany isn't well run, shaking their confidence in you. 2. Employees should never complain tocustomers about other department'semployees. Who wants to patronize a company whose peopledon'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 creativegatherings, as well as day-to-day niceties. 4 . Ut i l i ze post mor tems a f te r jo in tpr oj ec ts so ev er yo ne ca n le ar n fr om th e experience. You can mend fencesand gain new understandings when everyonereviews what went right...or wrong. Bydoing so after the project the immediatepressure is off, yet stronger bonds can beforged 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 nr 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. Letyour employees become "Customer for a Day" to experience firsthandwhat your customersexperience when doing business with you.Congratu lations on turn ing customer serv iceinside out! By improving internalcustomer service you have just enhanced thecustomer service your externalcustomers receive. You're walking your talk regarding

customer service.Types of marketing to serve the relevant customersTo 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. Threetypesof marketing arise. These are a follows:-1) Internal marketing:It is defined as when company communicates its policies to the employees. Int h isunders tands the i r employees & prov ides good work ingcond i t ion , compensation and incentives so as to satisfy their employees. Company satisfiestheiremployees 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 & suggestionsso as to satisfy them.3) Interactive marketing:In this, employees communicate company product to its final end usersWhat steps can I take toimprove my customer satisfaction system?Contributing factors to satisfactionWith that said, lets take a look at the factors which contribute toemployeesatisfaction. Specifics has developed, and for over thirteen years has been usinganemployee satisfaction questionnaire with questions centered around ten broadhuman resourcescategories:CommunicationEmpowermentPerformanceSupport


10/13

DevelopmentRecognitionCompensation

BenefitsClient / Customer RelationsOverall Satisfaction.How to Keep Internal Customers Happy and SatisfiedKeeping your internal customers satisfied is the key to creating loyal externalcustomersWhen youthink of a business, it is really composed of many customers andsuppliersinternally within the organization itself. In a manufacturing company for example, thesales department usually starts the process by getting an order from a

customer. They pass this order to the Purchasing department, who sendsit to theEngineering department and from there it goes to Manufacturing and then ispassed on to Shipping. Each of these departments has certain things theyneed from the priordepartment or internal supplier. Therefore each departmentis a supplier and acustomer to each other. There is a domino effect betweeninternal customersatisfaction and external customer satisfaction. In order to produce happyexternal customers (the ones who buy your product/service), it isimportant andimperative to build customer satisfaction between the internalcustomers.Steps to build internal customer SatisfactionHow do you do this? It consists of five simple steps:1. Have each department identify who is theirinternal customer and who is their internal supplier/s.2. Request each department to talk to theirinternal customers and ask themspecifically what is needed for them to do their jobs that theyprovide.3. Have them ask these internal customers what they currently do thatdisappoints them indelivering what they provide.4. Request they ask these internal customers what they could do thatwoulddelight them and make their jobs easier.5. Document all of the above.Keeping internalcustomers satisfied and happy is the first step towards creatingexternal customer loyalty.According to the Service Profit Chain (developed bythe Harvard Business School) this iswhere it begins. Yet, from what Ive seen,there are so few businesses that look atthe ir o rgan ization as a microcosm of m a n y c u s t o m e r s a n ds u p p l i e r s w i t h i n t h e o v e r a l l c o m p a n y a n d w i t h i nepartments 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 thechain.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


11/13

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 dd ep a r t m en t d e l i ve r i n g t h e p ro d u c t o f ca l l s o r messages.It is a like achain, each link is important to the overall strength of the chain.When there is abroken link, the whole organization is weakened. When oneinternal departmentsupplier is always late, delivers bad or wrong output, actsdiscourteously anddisrespectfully to the next department it makes it muchmore difficult for theother departments to ensure the final external customer ishappy and satisfied. This iswhat creates the tension and stress that frustratesemployees and causes their jobdissatisfaction. Customer service must becomea requirement for all employees withinan 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 thatcan help you out on building excellent relationships withyour employees and making sure that they willwant 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. Theyneed 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

mangerreceive a gift from a vendor, share it with your team. It is not the actual item thathas so muchvalue 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. Takethem out for dinner or lunch once a month just as a gesture of team spirit. Offer unexpectedtheater tickets or restaurant gift certificates for those who have few or no sick days withina period oftime. Host a company play day at alocal park. The possibilities arewide open the results are long-lasting.Communicate the companys direction. Keeping employees informed offersthem a feeling of empowerment. It cements the fact that theyARE part of theteam. It also helps with aligning individual goals with those of the organization.Taketime to provide detailed information about the businesss future and yourinternal customers place in itPerformance measurementis integrated with prioritizing work. It identifies andmeasures those activities that are important toserving customers, whether internal or external. There is always the old adage, "what gets measuredgetsdone." Measures help management manage by fact. Production may haveperformance goalssuch as the completion of work orders on time. Purchasingmay be measured on frequency or percentof materials out of stock. Questionslike, "What does an employee do to support product and/or service


12/13

delivery?" or "What deliverables do they have?" help identify what to measure. Measurementshelpemployees focus on the priorities and serving their internal customers.Improvement strategiesmay include sharing of successful strategies acrossthe company, recognition and reward programsfor innovation, information fromcustomers of the internal processes, use of alternative technology and

processanalysis. Some firms may require a redesign of the complete system to achieveeffectiveinternal customer service.Established internal processes, training, measuring performanceandimprovement strategies are all important to orienting and expecting your peopleto recognize theirinternal customers. They help build satisfaction with the workenvironment and loyalty to the firm. Whenemployees recognize who they servewithin the organization, and treat them as a high priority like anexternal customer would be, not only does performance improve, employee satisfaction andloyaltyincrease.Internal MarketingThe aim of internal marketing on a strategic level is the creation of an appropriateE n v i r o n m e n tt h a t w i l l s u p p o r t e m p l o y e e s ' i n t e r e s t i n e x t e r n a lc u s t o m e r satisfaction. It is the application of marketing inside an

organization to inst il lcustomer-focused values. As such, it joins marketing withhuman resources toattract, motivate and retain employees, with an emphasis on gettingemployeecommitment to provide customer satisfaction and achieve organizationalgoals.Internal marketing is for the care of both customers and employees. It is basedonthe relationship between employee satisfaction and customersatisfaction(take care of the employees, and they'll take care of the customers). It hasbeenproposed as a way of increasing lower level commitment to corporatestrategiesand improving organizational in tegration. Internal marketing can beused to increase employee involvement in reaching decision, making commitmentsandtaking action.Employees are a particularly important participant in the formulation of theimageThose custom ers get in re lat ion to th e of f ered serv i ce. Exter nalcu st om er satisfaction can not be achieved without the fundamentalcontribution of thecustomer- contact employees who provide the service. The front-line employeesof the retail store interact with the majority of customers and generallyhandle awide range of customer transactions. Grnroos mentioned that theemergingimportance of services in almost every business has led to the recognitionthatwell-trained and service- oriented employees are the most important resource ofa company, ra ther than raw mater ia ls , p roduct ion techno logy or theactua lproducts. Since the employees meet the external customers and responsiblefor 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 inthe marketing of services a large partof what customers ask for is in fact labor, or human acts ofperformance.Internal Marketing comes from the concept of services marketing. It isviewingEmployees as internal customers and jobs as internal products that satisfy theneeds andwants of these internal customers while addressing the objectives of the firm.In a definition of internalmarketing this fact gets illustrated: Internal marketingis attracting, developing, motivating, andretaining qualified employees through job products that sat isfy their needs.Internal Marketing is the philosophy of treating employees as customersand it isthe strategy of shaping job-productsto fit human needs. Kotler explains thatinternal marketing is more importantthan conventional external marketing. The key to have


13/13

satisfied customers lies inhaving satisfied employees. The overall purpose ofin te rna l market ing i sexplained by Grnroos in three steps:To attract appropriate employees as contact persons and in management

positionsTo retain good and appropriate employeesAnd, to influence and motivate employees in order to make them customer oriented, marketingoriented and thereby make an effort as good as possiblein the interactive marketing process