With the increased globalization of markets, competition among market players has become more severe. In this competitive market, one of the most important factors is the achievement of customer satisfaction and excellence in service. Although the concept of customer satisfaction in customer oriented management is not new, the relationship between customers and corporations has been changing almost daily.
Customers are becoming the absolute entity for corporations as the final decision makers for business deals and purchases of products. All organizations exist to serve a customer.
Customers are real people, not account numbers or enterprise names. Because of this, customer buying decisions are very often made for emotional reasons. It is therefore most important to understand customers, their level of satisfaction, and their opinions of an enterprise, as well as their opinions of its competitors, if the enterprise is to grow and improve its market share.
SWOT analysis can also play a role in understanding customers. Peter Drucker, the highly regarded management scholar and writer, stated, “The only valid definition of business purpose is to create a customer.
” Successful organizations of the future will be those that can provide goods and services to the customers who want it, where they want it, and in the quantity and at the price they want it, thereby delighting rather than merely satisfying customers.
Customer delight will lead to loyalty, which is one of the critical indicators used to measure the success of a marketing strategy. Services cannot, however, be performed without some form of relationship between the producer and the consumer and cannot be stored and retained for later use in the way typical of many tangible goods.
Business corporations make efforts to create and provide their customers with higher value added, which consists of elements such as lower prices, additional benefits, and uniqueness in services.
With rapid advances in information and communications technology, corporations can take advantage of the emerging IT systems to create infrastructure within the organization to improve responsiveness to customer needs and to track those needs, thereby improving customer satisfaction significantly. Top management should be aware of how to tap the power of IT to enhance customer services, resulting in better service quality and streamlining of processes. Here is an example where you can find that why customers are important for the existence of a company or organization
EXAMPLE 1: Auto insurance companies require information about people who live with you Are car insurers allowed to require information about the people who live with you for your auto insurance policy? The very idea of an auto insurance company demanding such information from you may seem offensive. After all, what business is it of theirs, who lives in your house—particularly if you are the only person driving the insured car? Insurance companies must consider a variety of factors before determining the final price of your auto insurance policy.
Remember that the insurance provider is not only insuring the price of the car, but also insuring the welfare and wellbeing of each passenger involved in a collision The insurance company will insist that anyone who lives in the same house, and who frequently or irregularly operates the same vehicle as an insured driver, must be accounted for on the policy and must take accountability as a second driver. Therefore, if a child becomes of legal age, then the insurance company will usually insist that he or she is officially added to the policy, unless they have their own separate policy.
Does the insurance company have the right to ask about other drivers in your home? Definitely. The insurance company is trying to decide if they want to invest in your driving safety. Also bear in mind that the National Highway Traffic Safety Administration (NHTSA) requires insurance companies to ask for this information, as this shows the company to be a legitimate and licensed insurance provider. Since the insurance company is required to ask this question, they must be given an answer pertaining to all members of the immediate family, and their driving history.
This information will help the company to assign a proper auto insurance rating, and will ultimately decide the amount of risk involved. Always answer this question truthfully. Though nobody enjoys invasive questioning, when it comes to insurance policies, these questions must be answered. After all, you as a primary motorist want to disclose any possible scenarios to the insurance company well in advance of a contract being signed. Whenever a surprise scenario occurs (something not listed on the policy) then it is usually not covered.
Not truthfully answering questions is tantamount to misrepresentation. This will result in a denial of all claims and a cancellation of the policy. So you may easily conclude that why organization need people as customers. Let’s take one more example The marketing concept and philosophy is one of the simplest ideas in marketing, and at the same time, it is also one of the most important marketing philosophies. At its very core are the customer and his or her satisfaction.
The marketing concept and philosophy states that the organization should strive to satisfy its customers’ wants and needs while meeting the organization’s goals. In simple terms, “the customer is king”. The implication of the marketing concept is very important for management. It is not something that the marketing department administers, nor is it the sole domain of the marketing department. Rather, it is adopted by the entire organization. From top management to the lowest levels and across all departments of the organization, it is a philosophy or way of doing business.