Unit U608: Customer Insight Analysis for Sales and Service Improvement

This report, focusing on Unit U608, comprehensively examines the critical role of customer insight in driving sales results, enhancing customer service levels, and contributing to the development of targeted products and services. It explores how customer insight supports sales-related decisions, ...Read More

Running Head: Unit U608
Unit U608- Developing and using customer insight

2
Unit U608
Table of Contents
LO1 Understand how customer insight can contribute to sales results.....................................3
AC1.1 Evaluate how customer insight can be used to support sales-related decisions.........3
AC1.2 Evaluate the role of customer insight in achieving sales objectives...........................3
AC 1.3 Evaluate the role of customer insight in prioritizing levels of customer service
offered....................................................................................................................................4
AC 1.4 Evaluate the role of customer insight in contributing to the development of targeted
products and services.............................................................................................................4
LO2 Be able to analyze information to provide customer insight.............................................5
AC 2.1 Evaluate methods to review, develop and manage the implementation of processes
to synthesize existing data into customer insight...................................................................5
AC2.2 Evaluate methods to employ data, tools, and techniques to generate an in-depth
understanding of the customer...............................................................................................6
LO3 Be able to use customer insight to support sales-related activities....................................7
AC 3.1 Evaluate methods to use customer insight to focus on the use of resources.............7
AC 3.2 Communicate customer insight to the sales team and/or account managers for use
in the sales process.................................................................................................................7
AC 3.3 Communicate customer insight to stakeholders involved in delivering service to
customers................................................................................................................................7
AC 3.4 Communicate customer insight to marketers and Research and Development to
support the development of new products and services.........................................................8
AC 3.5 Critically evaluate the contribution of customer insight to sales results...................8
References................................................................................................................................10

3
Unit U608
LO1 Understand how customer insight can contribute to sales results
AC1.1 Evaluate how customer insight can be used to support sales-related
decisions
In modern sales account management, the role of customer insight is quite significant. Every
interaction or conversation with the customer requires to be recorded in a particular format so
that overall account view can be ensured. The customer insight is used in supporting sales-
related decisions depending on sales types which are being undertaken. This provides a
performance reference concerning the volume of the sales and profit margins. In the case of
commoditized sales or transactional sales, the customers and found to be highly
price-.oriented and they always seek a simple and quick solution for the business needs in this
types of sales, customer insights are limited and therefore, the organizations get limited
opportunity to accumulate information in assisting sales-related decisions. On the other hand,
the key accounts which have huge requirements need strategic account management
information to be captured effectively to retain ongoing relationship (Beard, 2014). These
sets of information can be obtained from different sources such as billing, trading, logistics,
accounts, customer service, marketing, and sales. It is also very important to analyze
customer value to understand the progress of individual account. Customer insight is very
important in the case of contract renewal where the changing needs of the customers can be
understood to analyze the overall competitive landscape (Climis, 2017).
AC1.2 Evaluate the role of customer insight in achieving sales objectives
In achieving sales objective, the role of customer insight is highly significant because it
serves as an important source of information which is implemented in strategic formulation
and decision-making process. The ultimate objectives of the sales can be achieved by these
sets of information. In the case of value-based marketing, the customer value needs to be
understood and developed so that it can be delivered effectively. Customer value can be
obtained from marketing information systems, research, and analysis of the core
competencies of the organization. The information would help the organization in identifying
opportunities in emerging markets (Dejen & Sekandary, 2008). The new market opportunities
along with emerging market trends can be physically obtained. Market maturity of the
customers can also be understood. Different factors such as fragmentation and consolidation,
strategic performance, buying behaviors, and technology can be identified from the

4
Unit U608
information obtained through the analysis of customer insight. Customer value needs to be
analyzed by the organization so that the profitability, net present value, the difference
between current cost and future value, and the overall customer value could be understood
and implemented in the vital process of decision-making (Hartikka, 2015).
AC 1.3 Evaluate the role of customer insight in prioritizing levels of
customer service offered
The role of customer insight in prioritizing customer service levels is also highly important.
Like the development of strategies and sales objectives, the business efforts and resources are
also needed to be prioritized in addressing customer service needs. Marketing or sales
spectrum that can be applied to different customer service levels which are provided through
various business interactions are also important. Service always has an associated cost which
needs a huge percentage of resources to enhance the level of service. This cost is used in
driving customers to get engage- in self-service (Hashemi & Hajiheydari, 2011). For
example, the customers in the modern scenario, can access online accounts and use local
authorities and kiosks in banks on their own. The transactional sales engage the customers by
providing them with the options of standardized and commoditized products and services
which are repeatable. It develops a point of contact and connection between the customers
and the organization. In this case, the sales become highly transactional and interactional at
the same time and can come up with queries or grievances. The customer service executives
come up with various options to support such feedback and grievances. The organization can
tailor the services as per the requirements of the customers based on transactional sales and
services which help the organization to achieve trust and faith of the customers. This
enhances customer retention opportunities of the organization.
AC 1.4 Evaluate the role of customer insight in contributing to the
development of targeted products and services
In developing target products and services, the role of customer insight needs to be evaluated
by the organization. The customer insight understanding of customer insight helps in driving
the development of products and services to a great extent. The marketers of the business
organization can understand the hidden problems and unmet needs of the customers while
developing the products and services (Johnson & Scholes, 2002). With the help of the
information, the organization can develop a competitive advantage by developing the product
which can fulfill the unmet needs of the customers. It is very important to ensure product

5
Unit U608
performance improvements with the understanding of customer insight. The organization can
also achieve marketing synergies and integrate the contributions of research, marketing, and
development from the information obtained on customer insights. The top management can
also provide ample support to the phases of product development which in turn helps in faster
development. The customers are needed to be involved through several interactive sessions.
With the help of online surveys or feedback session, the customers could be involved. This
could help the organization to gather instant messages and feedback from the customers
based on which different strategies of product and service development can be formulated
(Kumar, 2018).
LO2 Be able to analyze information to provide customer insight
AC 2.1 Evaluate methods to review, develop and manage the
implementation of processes to synthesize existing data into customer
insight
Knowledge management is an area which is quite crucial for the business organization.
Knowledge management can lead the organization to have an understanding of explicit
communication, tactics to explicit communication, explicit communication to tactic
communication, and sharing of experiences and knowledge. With the help of effective
knowledge management, the organization can emphasize on effectiveness and efficiency.
With the help of knowledge management, the organization can enhance its effectiveness and
efficiency. The organization can have a better knowledge of resources, skills, organization,
and planning. This information helps in developing suitable strategies. The knowledge of
customer insights helps in developing new ideas and strategies in getting effectively
connected with the customers. There can be different learning styles which the organization
needs to adopt (Stone, Bond, & Foss, 2004). For example, the organization can adopt
congenital learning, experimental and vitreous learning, grafting, and searching. The
organization also needs ample information on customer intelligence, legal information,
business driver information, financial data, and personal information of the customers.
Knowledge of these aspects will help the organization to understand the ways the customers
can be retained. Relationship building objective can be achieved by comprehensive
knowledge on the factors mentioned above. The organization also needs to comply with the

6
Unit U608
data protection act to protect the information of the customers from any kind of fraudulent
and unauthorized third party access (Lee & Hwan, 2005).
AC2.2 Evaluate methods to employ data, tools, and techniques to generate
an in-depth understanding of the customer
The organization can use several techniques and tools to support its analysis. It can use sets
of data along with new tools to analyze customer insights. The organization can use various
tools and techniques such as customer segmentation, customer journey mapping, market
research methods, market research tools, internal sources, repositories of data, external
sources along with data repositories. These are important analytical techniques which can be
used by the organization in understanding customer insights in an effective manner.
Customer journey mapping can help the organization in designing service improvements
which would get reflected in customers’ experiences. By the help of surveys, consultation,
focus groups, mystery shopping, social media use, website analysis, usability testing, and
other relevant market research tools, the organization can collect feedback and information
on customers (Stone, Bond, & Foss, 2004). The customer service staffs or executives can
interact with the customers on a direct platform can also gather important information. The
relationship management system is one of the significant tools which help in gathering ample
information about customers and enhances the connection between the business organization
and the customers. Marketing Information System can also be implemented which highlight
marketing research, marketing intelligence, and internal accounting system. There are certain
external sources along with data repositories which also help to understand customers
effectively. The business organization can retrieve data sets which are present in private
sector sources or government sources regarding consumers. Internal consumer intelligence
along with external sources can help the organization in shaping its competitive landscape
and building opportunities (Meek, Meek, Palmer, & Parkinson, 2008).

7
Unit U608
LO3 Be able to use customer insight to support sales-related activities
AC 3.1 Evaluate methods to use customer insight to focus on the use of
resources
Strategic options are needed to be evaluated to outline the methods to corporate strategy. This
helps in understanding the areas where customer insight information can be applied in
prioritizing resources. Strategic options should be evaluated by the organization on its
feasibility, suitability, and acceptability. The feasibility can be evaluated by analyzing fund
flow, break-even, and resource deployment. On the other hand, acceptability can be evaluated
by analysing profitability, cost-benefit, shareholder benefit, financial ratio, sensitivity
analysis, and decision matrices. Stakeholders’ mapping can also be analysed to investigate
acceptability. The organization can also analyze insights for up-selling and cross-selling to
customers to identify the feasible opportunities (Nojitter, 2019).
AC 3.2 Communicate customer insight to the sales team and/or account
managers for use in the sales process
The customer insights can be communicated to the sales team or account managers through to
developing information and sales engagement techniques. The users would be initiating a
purchase by defining the specification. The influencers help in defining the product and
service and evaluating the alternatives. The deciders finally decide the suppliers and the
requirements. The approvers authorize the proposals of the buyers. The buyers, on the other
hand, have the formal authority for choosing the organization and negotiating terms.
Structured engagement can also be used in developing good terms with the customers. This
will help the organization to obtain certain information (Wilson & Gilligan, 2012). Market
plans and research should be shared with the sales team so that the sales personnel can
understand the objectives and action plan. The insight to be shared with the sales team must
support one-to-one relationships, quality customers improved short-term revenues and win-
win scenarios, coordinated approaches along with integrated approaches to the customers
(Johnson & Scholes, 2002).

8
Unit U608
AC 3.3 Communicate customer insight to stakeholders involved in
delivering service to customers
Marketing communications can help the organization in communicating customer insights to
the key stakeholders involved in the delivery of the services to the target customers. The
organization can initiate marketing communication by circulating prospectus, any format of
contact, by building relationships and impacting behaviors. Internal marketing considerations
include cultural perspective and information processing perspective. Cultural perspective
includes strong orientation to the competitors, market profit, and top-to-bottom learning. It
also includes responsiveness and open-mindedness. On the other hand, information
processing perspective involves the development of market intelligence across the
organization and dissemination of the same across every department. Responsiveness of each
department of the organization to such marketing intelligence is also an important aspect to
be ensured by the organization (Andersen & Ritter, 2008).
AC 3.4 Communicate customer insight to marketers and Research and
Development to support the development of new products and services
The organization can communicate customer insights to its marketers and the department of
Research and Development to support new product and service development. By the help of
the product development support, the requirements of the clients or customers concerning
service expectations, product attributes, and price sensitivity needed to be communicated.
There is an inevitable risk in evaluating information. The organization should pay attention to
the demands of the customers and their relevance, time involvement, accuracy, and
maintenance. These areas if taken well care of by the organization, the quality of the
outcomes will be communicated effectively. The relationship with the key stakeholders can
be improved by improving quality data systems (Wilson & Gilligan, 2012).
AC 3.5 Critically evaluate the contribution of customer insight to sales
results
Customer insights contribute to sales results to a great extent. These insights not only act as
financial measures but also help in understanding the economic value of the deliverables,
indicators of success, marketing measures, performance reliability, and cost-effectiveness.
With the help of different ratios, such as marketing expenditure to sales revenue ratio or
marketing expenditure to new customers ratio, the effectiveness, and efficiency of the
marketing functions and sales can be assessed. The performance of the deliverables of the

9
Unit U608
organization concerning particular market segments of the customers can be assessed by the
help of profit margin ratio, break-even, volume margin of safety ratio, contribution sales
ratio, and stock turnover ratio. Customer insights also help in the understanding the short-
term tactical decision-making process and identifying incremental or differential cost and
opportunity cost.

10
Unit U608
References
Andersen, G., & Ritter, T. (2008). Inside the Customer Universe, . Wiley and Sons.
Beard, R. (2014, January 20). Why Customer Satisfaction Is Important (6 Reasons). Retrieved
from clientheartbeat: http://blog.clientheartbeat.com/why-customer-satisfaction-is-
important/
Climis, R. (2017). Factors Affecting Customer Retention in the Airline Industry. Journal of
Management and Business Administration. Central Europe Volume 24: Issue 424,
24(4), 49–69.
Cooper, C. ( 2012, DECEMBER 11). 5 strategies for developing customer service. Retrieved
from hotelnewsnow: http://www.hotelnewsnow.com/Articles/17550/5-strategies-for-
developing-customer-service
Dejen, M., & Sekandary, H. (2008). CUSTOMER VALUE. Seminar in Electronic Customer
Relationship Management, 1-24.
Hartikka, T. (2015). Designing a Customer Value Proposition and Marketing
Recommendations for Direct Sales Customers. Industrial Management Master’s
Thesis, 1-71.
Hashemi, N., & Hajiheydari, N. (2011). Customer Knowledge Management Framework in E-
commerce . 2011 International Conference on E-business, Management and
Economics IPEDR Vol.25, 129-132.
Johnson, G., & Scholes, H. (2002). Exploring Corporate Strategy, . Prentice-Hall.
Kumar, A. (2018). Effect of service quality on customer loyalty and the mediating role of
customer satisfaction: an empirical investigation for the telecom service industry.
Journal (Academy of Hospital Administration (India), 159-166.
Lee, M. C., & Hwan, I. S. (2005). Relationships among Service Quality, Customer
Satisfaction and Profitability in the Taiwanese Banking Industry. International
Journal of Management 22, 4, 635-647.

11
Unit U608
Meek, Meek, Palmer, & Parkinson. (2008). Managing marketing performance. Butterworth
Heinemann, Oxford.
Nojitter. (2019). How Text Messaging is Changing the Customer Experience. Retrieved from
nojitter: https://www.nojitter.com/how-text-messaging-changing-customer-experience
Stone, M., Bond, A., & Foss, B. (2004). Consumer Insight - How to use data and market
research to get closer to your customer, Market Research in Practice. Kogan Page
Publishers.
Wilson, R., & Gilligan, C. (2012). Strategic marketing management, planning
implementation and control,. Routledge.