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Unit 3: Customer Accommodation




          Firms typically assess their customer service performance relative to how well these internal  Notes
          standards are accomplished. The customer satisfaction platform is built on the recognition that
          customers have expectations regarding performance and the only way to ensure that customers
          are satisfied is to assess their perceptions of performance relative to those expectations.
          Customer  success  shifts  the focus from expectations  to  the  customers’ real  requirements.
          Customer requirements, while forming the basis for expectations, are not the same as expectations.
          Requirements are frequently downgraded into expectations due to  perceptions of  previous
          performance, word-of-mouth, or communications from the firm itself. This explains why simply
          meeting expectations may not result in happy customers.

                 Example: A customer may be satisfied with a 98 percent fill rate, but for the customer to
          be successful in executing its own strategy, a 100 percent fill rate on certain products or components
          may be necessary.

          3.4.1 Achieving Customer Success

          Clearly, a customer success program involves a thorough understanding of individual customer
          requirements and a  commitment to  focus on long-term business  relationships having  high
          potential for growth and profitability. Such commitment most likely  cannot be  made to  all
          potential customers. It  requires that  firms work intensively with  customers to understand
          requirements, internal processes, competitive environment, and whatever else it takes for the
          customer to be successful in its own competitive arena. Further, it requires that an organization
          develop an understanding  of how  it can  utilize its  own capabilities  to enhance  customer
          performance.

             

             Caselet     Dow Plastics, a Division of Dow Chemical

                n 1988, Dow hired the Anderson & Lembke ad agency, which is known for its cutting-
                edge creativity. Dow had just realigned its various plastics businesses into a single
             Iunit called Dow Plastics. Anderson & Lembke’s tasks were to publicize the new entity
             and assist in its competitive positioning. Dow’s customers and its competitors’ customers
             were surveyed. They ranked Dow a distant third behind industry leaders DuPont and GE
             Plastics. However, customers were unhappy with the service level they received from all
             three. “Vendors peddled resins as a commodity,” says Hans Ullmark, president of Anderson
             & Lembke. “They competed on price and delivered on time, but gave no service.” These
             findings, confirmed by about 200 qualitative interviews, led to a positioning strategy that
             exceeded the standard customer service guarantee to promise customer success.
             This strategy, which began as a tag line for a division, grew in influence until it became the
             core of the parent company’s mission statement: “We don’t succeed unless you do.” It was
             concluded that whether a customer was using Dow plastics to manufacture grocery bags
             or complex  aerospace applications, Dow Plastics needed to help them succeed in their
             markets. A campaign was developed which included print ads, direct-mail pieces, and
             supportive materials. The targeted communications promoted the different virtues of
             Dow Plastics’ disparate products, but all carried the tag line “We don’t succeed unless you
             do.” This slogan and underlying philosophy tied the units together and created a brand
             identity for the division. These campaigns were instrumental in changing Dow Plastics
             from a sales-oriented company into a market-oriented company-from selling plastics to
             selling customer success.  Dow has become the most preferred plastics supplier. Dow’s
             philosophy is so transformed that when a new product or market is encountered, they ask,
             “How does this fit in with ‘We don’t succeed unless you do’?”
          Source: Naney Amott, “Getting the Picture,” Sales and Marketing Management, June  1994, p. 74



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