OE21 3.2 Customer Engagement

Strategic Objective:

Strategic Objective:

Engage customers for long-term marketplace and financial success

Quality Objective:

Quality Objective:

Translate customer needs into product and service offerings and support

Responsibility:

Approved: DD-MMM-YY

Responsibility:

Approved by: (Name) Chair, Leadership Focus Team (LFT)

Lead: Customer Focus Team (CFT)  Support: All focus teams

VALUE ADDED        

1. Prioritize target customers, prospects, and key stakeholders

 

2. Product/Service/Program Positioning

 

3. Implement Opportunity Marketing to capture target customers

 

4. Create or update Product/Service/Program Requirements Specifications

 

5. Design and produce new products, services or programs that meet customer requirements and expectations

 

6. Estimate product/service/program costs, and cycle time to design, produce, deliver and support them

 

7. Update Customer Excellence Action Plan

 

8. Select and Input Customer Engagement metrics into the Performance Measurement System (PMS)

POLICY          3.2 COMMENTARY

The organization has adopted the Baldrige Framework Items 3.2 Customer Engagement and 7.2a Customer-Focused Results as the internal policy, including the following sub-items:

3.2a Product Offerings and Customer Support

 

(1) Product Offerings - The organization determines customer and market needs and requirements for product offerings and services, and adapts product/service offerings to meet these requirements. Then the organization makes extra efforts to exceed the expectations of our customer groups and market segments and identifies and adapts the product/service offerings to enter new markets, to attract new customers, and to create opportunities to expand relationships with our current customers, prospective customers, and key stakeholders.

 

(2) Customer Support - The organization enables customers to seek information and support, and to conduct business with us. The organization has identified our critical means of customer support, including our key communi­cation mechanisms, and how they vary for different customers, customer groups, or market segments. Our organization deploys these requirements to all people and processes involved in customer support.

 

(3) Customer Segmentation - The organization determines its customer groups and market segments, and uses information on customers, markets, and product offerings to identify current and anticipated future customer groups and market segments. Our customer segmentation process considers competitors’ customers and other potential customers and markets and helps determine which customers, customer groups, and market segments to emphasize and pursue business growth.

 

3.2b Customer Relationships

 

(1) Relationship Management - The organization markets, builds, and manages customer relationships, to acquire customers and grow market share; manage and enhance our brand image; retain customers, meet their requirements, and exceed their expectations in each stage of the customer lifecycle to increase their engagement with us. The organization leverages social media to manage and enhance our brand and to enhance customer engagement and relationships, as appropriate.

 

(2) Complaint Management - The organization manages customer complaints and resolves complaints promptly and effectively. The organization's complaint management process enables us to recover our customers’ confidence, enhance their satisfaction and engagement, and avoid similar complaints in the future.

 

7.2a(2) - Customer engagement results. The organization tracks progress and outcomes of customer engagement, including results that are indicators of key engagement and customer relationships. These results are segregated by product/service and by customer and market groups or segments, as appropriate.

PROCESS

Standard 3.2 Flow Diagram (Figure 3.2-1 Customer Engagement)

3.2 Process Chart (Figure 3.3-2 Customer Engagement)

NOTICE: Refer to OE21 Standard 3.2a Opportunity Marketing Process Chart for

detailed steps within PHASE 1, 2 and 3 

Inputs to 3.2 Customer Engagement

  • Lists of Customers, Stakeholders and Prospects 

Measurement and Analysis Tools and Techniques

Outputs from 3.2 Customer Engagement

Case Study

  • Read the 3.2 Case Study 

Implementation Instructions

Key Decision: The OE21 focus team responsible for this standard should begin by deciding whether or not the OE21 standard adds value (on is non-value added) when compared to any existing standard, SOP, or process the organization uses now. The decision process is:

 

1. The focus team studies all Tasks and tools used in the OE21 standard.

2. The focus team answers the questions:

  • NON-VALUE ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If YES, then the focus team should document that this standard is deemed as NVA, and then the focus team should proceed ahead to the next OE21 standard.

  • VALUE-ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If NO, then the focus team should proceed ahead to complete the following OE21 Implementation instructions.

 

Note: The NVA finding will be used later in the OE21 Certification Audit process.

START IMPLEMENTATION

SPECIAL CUSTOMER ENGAGEMENT TOOLS AND TECHNIQUES:

(a) Product/Service/Program Requirements Specifications - The CFT and the OFT create or update the Product/Service/Program Requirements for use in design, production, delivery, support, and marketing of the required products, services, and program offerings.

 

(b) Product/Service/Program Offering Information - The CFT reviews and updates the organization's product, service and program offerings and descriptions, including datasheets, sales flyers, brochures, technical specifications, web page descriptions, price lists, delivery information, and other characteristics of the offerings. Appropriate work units, customers, and prospective customers receive these items.

 

(c) Product/Service/Program Positioning - The CFT conducts prioritization processes to rate lists of customers, prospective customers, and stakeholders against critical criteria questions. The results are used to position the products, services, and program offerings for success in the markets they serve. 

 

(d) Customer/Prospect/Stakeholder Prioritization Matrix - A matrix spreadsheet tool that is used to rate and select lists of customers, prospective customers, and stakeholders against key criteria questions. Ratings are scored to determine the estimated success of each product, service, or program, including those the organization intends to provide in the future.

 

(e) Sample Size Calculator - see Oe21 Guide to Assessment and Survey Process

 

(f) Opportunity Marketing - The OE21 Opportunity Marketing Guide is used to pursue and capture essential and competitive customer opportunities. The Guide provides a standardized process for boosting marketplace performance as well as sales marketing management, and including: 

 

  • Intake or Pre-Screening

  • Referral Generators

  • Contact Lists (customers and prospects)

  • Value Propositions for each market segment and customer group

  • Touch 1 to "n" communications: phone calls, voice mail, emails, letters, social media

  • Opportunity Presentations and Proposals

 

  • NOTE: The OE21 Opportunity Marketing Guide is comprised of "best practices" often used in fortune 500 corporate sales management teams. The "guide" is adaptable to fit the environment of a variety of organizational and program scenarios, including business-to-business, business-to-government, and nonprofit strategies to capture customers, prospective customers, and stakeholders in target market segments and customer groups.

 

(f) CFT 3.2 Prioritization of Customers and Stakeholders - A matrix spreadsheet tool that is used to rate and select lists of customers, prospective customers, and stakeholders against key criteria questions. Ratings are scored to determine the estimated success of each product, service, or program, including those the organization intends to provide in the future.

 

(g) CFT 3.2 Opportunity Manager - A spreadsheet model that contains tabs for tracking sales (touch) steps for capturing and persuading target customers/participants and key stakeholders to accept the organization's products/services/programs.

 

(h) OFT 6.1a Process Designer - A spreadsheet model used by the CFT and OFT to determine the costs of goods sold (COGS) and cycle time to create, produce, deliver and support critical products, services or program offerings. 

 

IMPLEMENTATION

 

Task 3.2.1 Prioritize Target Customers, Prospects, and Stakeholders - The LFT and CFT use the CFT 3.2 Prioritization of Customers and Stakeholders tool to rate and select lists of customers, prospective customers and key stakeholders based on key questions in the matrix.

 

  • CFT_3.2_Prioritization_Customers_Stakeholders (.xlsx)

 

Ratings are scored to determine the estimated success of each product, service, or program the organization provides or intends to offer in the future. The process for prioritization is as follows:

 

  • (Step 1) Select participants who will input information and data into the Matrix

  • (Step 2) Open the ACI-Customer/Prospect/Stakeholder Prioritization Matrix (online sharing mode)

  • (Step 3) Input list of customers, prospects or stakeholders in the Matrix

  • (Step 4) Rate (1-5) each item in the list

  • (Step 5) Observe the rating scores and sort (highest to lowest) to prioritize the list

  • (Step 6) Share results of prioritization with the LFT and CFT

 

After prioritization, the LFT (senior marketing/sales manager) and the CFT use the prioritization results to allocate time and resources to the customers, prospects and key stakeholders who are most likely to be successful. Ideally, the customer, prospect, or stakeholder with the highest prioritization score would receive a proportionally higher amount of revenue and support for marketing and sales campaigns.

 

  • PROGRESS: You have reached Milestone 1 (good work). Input the status [3%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 3.2.2 Execute Opportunity Marketing - The LFT, CFT, and facilitator implement the tactics and steps in the CFT 3.2a Opportunity Marketing Guide.

The Opportunity Marketing Guide is used to establish a systematic and holistic approach to optimizing the marketing and sales process, including a three (3) phase campaign for focusing on market segments and groups, preparing for and implementing engagement; including:

 

PHASE 1 - FOCUSING ON MARKET SEGMENTS & GROUPS

  • TACTIC 1: Identify High-Value Targets

  • TACTIC 2: Implement In-take Process

  • TACTIC 3: Implement Referral Generators

  • TACTIC 4: Implement Contact Lists Management

  • TACTIC 5: Research and Listen to Prospects

  • TACTIC 6: Create Potential Solutions for Targets

  • TACTIC 7 - Implement Online Meeting System

 

  • PROGRESS: You have reached Milestone 2 (good work). Input the status [17%] on the organization's OE21 Intranet Main page alongside the title of this standard.

PHASE 2 - PREPARE FOR TARGET CUSTOMER/STAKEHOLDER ENGAGEMENT

  • Step 1: Prioritize Targets

  • Step 2: Create/Update Value Propositions

  • Step 3: Create Touch 1 Content

  • Step 4: Create Standardized Voice Mail

  • Step 5: Create a Standardized Telephone Dialogue

  • Step 6: Create Marketing Presentation

  • Step 7: Prepare Follow-on Presentation

  • Step 8: Practice Presentations

 

  • PROGRESS: You have reached Milestone 3 (good work). Input the status [45%] on the organization's OE21 Intranet Main page alongside the title of this standard.

PHASE 3 - CUSTOMER AND STAKEHOLDER ENGAGEMENT

  • Step 1: Locate and Engage with Internal Sponsor

  • Step 2: Send Touch 1 to Internal Sponsor

  • Step 3: Present Solution to Internal Sponsor

  • Step 4: Present Solution to Influencer(s)

  • Step 5: Set Meeting with Decision Maker

  • Step 6: Presentation to Decision Maker

 

  • NOTE: The implementation of the OE21 Marketing Opportunity Guide will require a substantial effort. The outcomes of this effort are designed to help sustain and grow the organization and to boost its marketplace and financial performance.

 

Task 3.2.3 Implement the Opportunity Manager - The CFT_3.2_Opportunity_Manager (.xlsx) is a spreadsheet tool used to track the progress of opportunities.

 

The LFT, CFT, and facilitator use the Opportunity Manager to track progress ("touch steps") of the steps in Opportunity Marketing Phase 3. The Opportunity Manager tool includes a "Win Probability" estimator used to measure progress in capturing revenue or funding or from persuading the target customer, prospect or stakeholder to support a suggested initiative or strategy (e.g. "the deal"). The process for implementing the Opportunity Manager is as follows:

 

  • (Step 1) Select sales or contact people who will input info/data into the Opportunity Manager

  • (Step 2) Open the Opportunity Manager (online sharing mode recommended)

  • (Step 3) Input touch tracking numbers as specified in the Opportunity Manager

  • (Step 4) The CFT marketing/sales leaders observe progress and coach sales/contact people

  • (Step 5) Motivate (reward) the sales or contact people for outstanding progress

  • (Step 6) Use the Win Probability estimator to boost the probability of winning the deal

  • (Step 7) Share results of marketplace performance with all focus teams

 

  • PROGRESS: You have reached Milestone 4 (good work). Input the status [62%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 3.2.4 Product/Service/Program Requirements Specifications - The CFT supports the OFT in creating or updating of Product/Service/Program Requirements and Specifications for use in design, production, delivery, support, and marketing of the required products, services, and program offerings. Inputs to these Requirements Specifications include:

 

  • (a) Type of products, services or programs required

  • (b) Requirements or specifications needed for products, services or programs

  • (c) Typical order quantities or frequency of delivery expected

  • (d) The customer desired order-to-delivery cycle time

  • (e) Customer desired costs

  • (f) Competitor/comparative organization costs for similar products or services

  • (g) Quality requirements for products, services or programs

  • (h) Organizational Profile Part 1 of 2 (from Topic 1.1)

  • (i) Strategic Action Plans (from Strategic Plan)

  • (j) Results of Voice of Customer, Voice of Prospect and Customer Satisfaction Assessments

  • (k) Value Ratings (1-5) for products, services or programs

 

Go to: CFT 3.2 Product Service Requirements Specifications (template) 

 

Task 3.2.5 Create or Update Product/Service/Program Offering Information - The CFT, with support from other focus teams, reviews and updates the organization's product, service, and program offerings, performance, and positioning in the marketplace vs. competitors or comparative organizations. As necessary, new or revised products, services, or programs offering information (i.e., datasheets, sales flyers, brochures, technical specifications, web page descriptions, price lists, delivery information, etc.) are developed and distributed to appropriate focus teams, work units, customers, prospective customers, and key stakeholders. The CFT maintains protected files containing all current and updated product/service/program descriptions and details.

 

  • PROGRESS: You have reached Milestone 5 (good work). Input the status [90%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 3.2.6 Program Outputs Costs, Cycle Time and Financials - The LFT, CFT, and OFT in determining the financial contributions and other revenue intake and costs (i.e., revenue outflow, or costs of goods sold) of each product, service or program to examine the financial contributions of key products, services or programs.  The Product/Service Value Contribution model is used in determining the financial contributions and other revenue intake and costs (i.e., revenue outflow, or costs of goods sold) of each product, service or program.

 

Go to CFT_3.2_Product_Service_Value_Contribution (.xlsx)

  • PROGRESS: You have reached Milestone 6 (good work). Input the status [90%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Task 3.2.7 Update the Customer Excellence Action Plan - The CFT updates the Customer Excellence Action Plan, with tasks, responsibilities, and other information necessary to implement product, service, or program performance improvements.

 

  • CFT_3.1_Customer_Excellence_ Action_Plan (.xlsx)

 

Task 3.2.8 Input Customer Engagement Metrics into PMS - If the OE21 Intranet PMS tools are used, then the CFT should open the Excel Workbook named: PMS Customer Excellence Metrics. This PMS workbook includes a tab called "Metrics List" that displays a table of suggested measures and goals (targets) applicable to Baldrige Framework Item 3.2 Customer Engagement.

 

  • CFT_7.2_PMS_Customer_Excellence_Metrics (.xlsx)

 

  • Note: The PMS workbook includes a tab named "Guidelines" that serve as a guide for selecting appropriate types and numbers of measures for this Item.  The PMS workbook contains tabs for the input of dates, measures, targets, and two benchmarks (alpha and bravo competitor or comparative organizations). The result of data entry creates a Trend Chart for each of the measures selected.

 

Task 3.2.9 Use PMS to Review Standard 3.2 Measures - Conduct regular (at least monthly) reviews of Standard 3.2 Measures. See OE21 4.1 Task 4.1.5 for guidance.

The CFT monitors customer trends as they are updated. The CFT takes appropriate action to assess and improve Customer Engagement as necessary. As a minimum, the CFT selects, input, and tracks key measures for Customer Engagement, including:

 

  • Customer Ratings of Products (average of all) vs. target of = > 90% or 4.5 of 5)

  • Customer Ratings of Services (average of all) (vs. target of = > 90% or 4.5 of 5)

  • Customer Ratings of Programs (average of all) vs. target of = > 90% or 4.5 of 5)

  • Customer Support Transactions (# calls for support; cycle time to provide support)

  • Customer Complaints (# complaints; cycle time to resolve complaint issue)

 

The CFT with support from all focus teams uses the PMS to monitor trends of program output improvement initiatives versus goals. Usually, these measures are updated quarterly or when changes require updates. The CFT takes appropriate action to drive measures towards their goals. When performance goals are met, the CFT may raise the goals higher.

 

Figure 3.2-3 presents an example Trend Chart for Standard 3.2 Results

PROGRESS: The status (Milestone 7 = 100%) is input on the organization's OE21 Intranet Main page alongside the title of this standard.

  • PROGRESS: You have reached Milestone 7 (congratulations). Input the status [100%] on the organization's OE21 Intranet Main page alongside the title of this standard.

Figure 3.2-3 Example Trend Chart for Standard 3.2 Results