Evaluating Internal and External Customer Focus at Steven Madden Ltd

This essay analyzes the treatment of internal and external customers at Steven Madden Limited, a publicly traded fashion accessories and shoe company. It highlights that while the company prioritizes external customers, potentially impacting employee morale and service quality. The essay emphasizes the importance of balancing the satisfaction of both internal and external customers to improve overall organizational performance and customer satisfaction, suggesting that treating employees well ultimately leads to better service and increased sales. The analysis is supported by academic research on service quality and customer relationship management.

Running head: INTERNAL AND EXTERNAL CUSTOMERS 1
TREATMENT OF INTERNAL AND EXTERNAL CUSTOMERS: A CASE OF STEVEN
MADDEN LIMITED
Name
Student ID
Institutional Affiliation

INTERNAL AND EXTERNAL CUSTOMERS 2
Introduction
People who buy a company’s services and products are invested in the utility and
pleasure of the services and products the company provides (Raza & Hanif, 2013). In addition,
managers and employees are invested in the organization as a workplace, and to grow
professionally and personally so as to earn a livelihood, hence may as well use the organization’s
services and products.
Introduction of Your Organization/Business and a Review of Internal Customers
My organization is a publicly traded organization known as Steven Madden Limited.
Based in Long Island City, New York, the organization’s operations are designing and marketing
fashion accessories and shoes for children, women, and men. Employees are the internal
customers, and the organization gives them a satisfying experience so that they can have a reason
to continue working for the company. Steven Madden meets the needs of its employees hence
they come to work with an intention of doing a good job and a positive attitude.
A Review of External Customers
Steven Madden’s external customers include children, women, and men. According to
Chuang & Liao (2010) without external customers, a company would lack a reason to be in
business due to a lack of revenue. The organization designs and markets fashion accessories and
shoes with an aim of satisfying the needs of customers and pleasing them. To achieve this, the
organization solicits the customers’ opinions via informal conversations and formal surveys and
has adopted “the customer is always right” adage.

INTERNAL AND EXTERNAL CUSTOMERS 3
Comparison of the Treatment of Internal and External Customers in Your Organization--
Review of Which Is Treated Better (And Examples)
In the organization, Internal and external customers are not treated the same. The external
customers are somehow treated much better as compared to external customers. Furthermore, the
organization has already developed a culture that “only external customers’ needs should be
prioritized and external customers are always right”. For example, if both external and internal
customers’ orders the product at the same time, then it is clear that the external customer
products are placed in urgent delivery and in case of queries and issues, the organization
responds to their issues urgently. The internal customers get products in lower rates and few
margins as compared to external customers because they know actual manufacturing costs thus
they have the high bargaining power to the organization and get products at reasonable prices
(Lings & Greenley, 2009). Therefore, it is clear this is the main reason why external customers
are treated better as an organization believes they generate a significant profit margin as
compared to internal customers.
Summary of How either Focus on External or Internal Customer Can Affect “Quality” In
the Organization
According to Bouranta, Chitiris & Paravantis (2009) if the internal customers are not
treated the same as external customer’s they may feel not satisfied with the environment they are
working on and therefore fail to offer quality services and products. Therefore, too much focus
on external customer affects employee’s morale to put extra effort on customer satisfaction, as
they feel not part of the organization. The organization should focus on treating everyone as a
customer as it encourages employees to consider others with seriousness.

INTERNAL AND EXTERNAL CUSTOMERS 4
Conclusion
The Improvement of Internal customer’s satisfaction results in the high level of
satisfaction on external customers. Therefore, the best way of organization improving sales and
enhancing customer satisfaction is by treating both internal and external customers equally.
References
Bouranta, N., Chitiris, L., & Paravantis, J. (2009). The relationship between internal and external
service quality. International Journal of Contemporary Hospitality Management, 21(3),
275-293.
Chuang, C. H., & Liao, H. U. I. (2010). Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
Psychology, 63(1), 153-196.
Lings, I. N., & Greenley, G. E. (2009). The impact of internal and external market orientations
on firm performance. Journal of Strategic Marketing, 17(1), 41-53.
Raza, S. A., & Hanif, N. (2013). Factors affecting internet banking adoption among internal and
external customers: a case of Pakistan. International Journal of Electronic Finance, 7(1),
82-96.