Issue March 2008
Overview

The new success strategy

Customer Excellence

The customer in the focus Success is the goal for every company. And the strategy of placing the customer at the centre of things is well-known by every manager. What though are the success secrets of really successful companies? It’s worth taking a few minutes here to decipher these secrets.

Ten years after the publication of his international bestseller “Hidden Champions”, Professor Dr. Hermann Simon, Chief Executive of corporate consultants Simon, Kucher & Partners, brought out his new book in the fall of 2007 "Hidden Champions of the 21st Century – Lessons from the world’s best unknown companies”. Professor Simon analyses the success factors of these exceptionally booming companies.

At the same time, the “Hidden Champions’” outstanding customer proximity is highlighted: Five times more employees than in large corporations are in regular contact with the customer in these companies. Simon shows how customer proximity becomes an important success factor through a strategy of decentralisation and diverse interaction with the customer; one of the reasons why “Hidden Champions” compete less over the price than other companies. At the same time, according to Professor Simon, customisation is more important than competitive orientation. Then long-lasting success is based on constant innovation in order to fulfil customer wishes or even to surpass these. Those in the know call it pithily Customer Excellence when they talk of especially customer-orientated companies.

What is Customer Excellence?

“Customer Excellence is the authentic fulfilment or exceeding of customers’ concrete and emotional key expectations, wherever and whenever they are in contact with the company,” is our definition.

It involves providing your customers with the best solution, thus creating customer enthusiasm and making the company enduringly successful. For your employees Customer Excellence translates into more enjoyment and fulfilment at work. In companies whose orientation revolves around the customer, much more scope is suddenly available: The magic of human cooperation where everyone is inspired by one objective is apparent to all. The customer also sees the sparkle in the employees’ eyes.

In one sentence: Customer Excellence creates success. Your employees are highly motivated and full of energy. The customers feel the commitment in each interaction and in the solutions. The personnel and customers recommend your company to others and attract new customers and employees.

Strategy is a key factor

At the outset, the company’s orientation is based on Customer Excellence and a matching corporate culture. Customisation is an inner attitude which requires a positive concept of people and colleagues. Personnel become self-reliant, constantly optimise in critical identification the image of their own company, an individual, sympathetic reciprocity creates happiness and these processes are consistently orientated to the customer requirements. Customer Excellence also means though that the objective is the market leadership through customer enthusiasm even if this is only in a market niche or at one location.

The Kano model

Professor Dr. Kano from the University of Tokyo has evolved the Kano model from the analysis of customer requirements; this records the customer expectations in order to take these into account in the product development. It is sub-divided into basic attributes, performance attributes and enthusiasm attributes. If basic attributes are lacking, then the customer is disappointed. Performance attributes can lead to customer zeal. The customer does not expect enthusiasm attributes but these highlight the product against the competition and lead to active additional recommendations through the customer.

In short: Customer enthusiasm involves surpassing customer expectations. It is nothing special to obtain a good product in good quality at an acceptable price. Only when your customers’ expectations are regularly exceeded does the customer come back or recommends you to others. Personal privileges for important customers are especially effective. Privileges that you cannot buy but only receive as a gift e.g. the invitation to an innovators’ circle for an improved product.

Customer Excellence

The start: A look in the mirror

Carry out an honest stocktaking in your company. The easiest option: Visit your company as a customer. Record everything as if through the lens of a camera. Are there sufficient parking lots for visitors, do you understand the signs in the reception area, is the receipt informed, do the coffee stains on the floor irritate you? Take a look around and change the minor details immediately.

Now to your offer: Where are you better than your competitors? What are the strengths and weaknesses of the location, the products and services and the employees themselves? What are your customers’ distinct and common wishes; what is important to him or her? Customer enthusiasm is the quotient between the customer’s expectation and the service offered, i.e. you must exceed these expectations in order to enthuse your customers.

Talk to your customers, your employees and your suppliers. Where do you stand in the area of Customer Excellence? The shortest question is: “Would you recommend us to others?” Now if you have communicated an objective assessment we can go on to the measures.

Customer enthusiasm with the right product

Consistent market orientation provides many improvement suggestions. Let’s start with the attitude of the company management, the supervisors, each individual employee. The consciousness of the effects of Customer Excellence is a first step. The positive recoupling of the first measures through customer feedback reinforces the efforts and establishes the process.

Market-orientated products and solutions must exceed customer expectations. Ask yourself: What properties do your products and services have that create enthusiasm? How do you manage to establish these special performances as standard in your market?

Look for the right customers. Customers to whom you really offer the best service in comparison to the competition. In the so-called service trap companies lose a lot of money: With the wrong customers, customer satisfaction is purchased with expensive service.

Boost Customer Excellence in all corporate areas. Always having the target in mind to safeguard the enduring success of the company.

What does CAS do?

CAS Software AG has taken on an exciting, challenging task. Under the rubric “Customer Excellence for mid-size companies” our vision is: “The most successful mid-sized companies make use of our market-leading CRM solutions for profitable customer relations.” We are totally convinced that European mid-size companies can be permanently competitive and successful through consistent customisation, through motivated employees and through innovative products and services.

The requirements of our customers is our driving force: We are committed to being the provider in our market with the best Customer Excellence. Please support us in this goal through constructive feedback and demands of our products and services. We’re looking forward to seeing your reactions.