Customer and Market Knowledge 40 pts.

N1. Your responses to this Item should include the customer groups and market segments identified in P.1b2. N2. If your products and services are sold or delivered to end-use customers via other businesses e.g., those businesses that are part of your “value chain” such as retail stores or dealers, customer groups 3.1a[1] should include both the end users and these interme- diate businesses. N3. “Product and service features” 3.1a[2] refers to all the important characteristics of products and ser- vices and to their performance throughout their full life cycle and the full “consumption chain.” This in- cludes all customers’ purchase experiences and other interactions with your organization that influence purchase decisions. The focus should be on features that affect customer preference and repeat business— for example, those features that differentiate your products and services from competing offerings. Those features might include price, reliability, value, delivery, requirements for hazardous materials use and disposal, customer or technical support, and the sales relation- ship. Key product and service features and purchasing decisions 3.1a[2] might take into account how trans- actions occur and factors such as confidentiality and security. N4. Listening and learning 3.1a[2] might include gathering and integrating surveys, focus group findings, Web-based data, and other data and information that bear upon customers’ purchasing decisions. Keeping your listening and learning methods current with business needs and directions 3.1a[3] also might in- clude use of newer technology, such as Web-based data gathering. For additional description of this Item, see page 37. 3 Customer and Market Focus 85 pts. C USTOMER The and Market Focus Category examines HOW your organization determines the requirements, expectations, and preferences of CUSTOMERS and markets. Also examined is HOW your organization builds relationships with CUSTOMERS and determines the KEY factors that lead to CUSTOMER acquisition, satisfaction, loyalty and retention, and to business ex- pansion and SUSTAINABILITY .

3.1 Customer and Market Knowledge 40 pts.

Process Describe HOW your organization determines requirements, expectations, and preferences of CUSTOMERS and markets to ensure the continuing relevance of your products and services and to develop new opportunities. Within your response, include answers to the following questions: a. C USTOMER and Market Knowledge 1 H OW do you identify CUSTOMERS , CUSTOMER groups, and market SEGMENTS ? H OW do you determine which CUSTOMERS , CUSTOMER groups, and market SEGMENTS to pursue for current and future products and services? H OW do you include CUSTOMERS of competitors and other potential CUSTOMERS and markets in this determination? 2 H OW do you listen and learn to determine KEY CUSTOMER requirements and changing expectations including product and service features and their relative importance to CUSTOMERS’ purchasing decisions? H OW do your determination methods vary for different CUSTOMERS or CUSTOMER groups? H OW do you use relevant information and feedback from current and former CUSTOMERS , including marketing and sales information, CUSTOMER loyalty and retention data, winloss ANALYSIS, and complaint data for PURPOSES of product and service planning, marketing, PROCESS improvements, and other business development? H OW do you use this information and feedback to become more CUSTOMER focused and to better satisfy CUSTOMER needs? 3 H OW do you keep your listening and LEARNING methods current with business needs and directions, including changes in your marketplace? Notes: 2005 Criteria for Performance Excellence 17 18 2005 Criteria for Performance Excellence N1. Customer relationship building 3.2a might in- clude the development of partnerships or alliances with customers. N2. Determining customer satisfaction and dissatis- faction 3.2b might include use of any or all of the following: surveys, formal and informal feedback, cus- tomer account histories, complaints, winloss analysis, and transaction completion rates. Information might be gathered on the Internet, through personal contact or a third party, or by mail. N3. Customer satisfaction measurements 3.2b[1] might include both a numerical rating scale and de- scriptors for each unit in the scale. Actionable cus- tomer satisfaction measurements provide useful infor- mation about specific product and service features, delivery, relationships, and transactions that bear upon the customers’ future actions—repeat business and positive referral. N4. Your customer satisfaction and dissatisfaction results should be reported in Item 7.2. For additional description of this Item, see pages 37–38.

3.2 Customer Relationships and Satisfaction 45 pts.