James River Air Conditioning Company specializes in commercial and home comfort air conditioning systems in addition to building automation systems. The company stands upon the philosophy of an entrepreneurial spirit that seeks to provide world class service. The mission of the Company is to do what it says it will do, when it says it will do it, right the first time, with a positive outcome from everyone concerned. The company uses a practical energy strategy that makes sense to customers in terms of sustainability and reduction of foreign oil dependence.
Customer perspective objectives are based on how a customer sees the company. The first objective identified is customer satisfaction. This objective relates to the organization’s mission and strategy in the sense that the company strives to satisfy the needs of the customers. Through providing world class service and ensuring that its products make sense to customers’ needs, the company is able to satisfy its customers. In order to develop a performance measure for this objective, the company can use the customer satisfaction index. Being an American company, James River Air conditioning Company should strive to appear among the top performance in the American customer satisfaction index. Based on this information, the company should make an initiative to focus on improving its operations and ensuring high quality products.
The second identified objective is efficiency. This relates to the company’s mission, vision, and strategy in the sense that through efficient operation, the company is able to meet its goals and live according to its mission statements. The only way in which the company can provide world class service is by ensuring that its operations are efficient and focused on the needs of the customers. In order to develop a performance measure for this objective, the company can ensure that the average time to process an order meets the required standard. The company can also use the number of complaints as a meaningful way of measuring this second objective. The target for this performance measure is to ensure that the time that customers wait for the delivery of an order is as short as possible. At same time, the company could target for fewer customer complaints about their services and products. Based on this objective, the company can make an initiative to improve its operations as well as production by using the latest technology in the market.
The third identified objective is customer retention. This objective relates to the company’s mission, vision, and strategy in the sense it helps the company’s sustainability, growth, and expansion of its operation to a wider market. It is the intention of the company to be sustainable for a long time and continue to engage in development of products that make sense to the customers’ needs. In order to measure this objective, the company needs to ensure that its market share remains the same or increased. If the market share remains the same, the company can be sure that it has managed to maintain customer loyalty. An additional approach that can be used to measure the performance of this third goal is repeat purchases. Target for these performance measures should include an increase in market share and an increase in sales respectively. This means that the company should aim at increasing its market shares and also increasing revenue through high sales. Based on this objective, the company can take an initiative to focus its attention on customer relationship management.
One of the company’s biggest competitors in the HVAC industry is Warwick Plumbing and Heating Corporation. The company is committed to ensure that the HVAC facilities provide the clients with a solution to their needs based on their own financial objective and operational objective. The company financial objective therefore is to identify areas where it incurs unnecessary costs and come up with strategies to reduce the amount of money spent in these areas. This is in addition to focusing much attention on profitability and increasing revenue. The three customer service objectives relate to the financial objective of the Warwick Plumbing Corporation. Once the customer service objectives are realized, the company can begin to also realize its financial objectives. Therefore, the financial objectives are dependent on the customer service objectives.
Customer satisfaction
- American Customer satisfaction index
- To appear among the top companies
- Focusing on improving its operations and ensuring high quality of its products
- Efficiency
- Average time to process and order
- Ensuring that the time that customers wait for the delivery of an order is as short as possible
- Fewer customer complaints
- Improving its operations as well as production by using the latest technology in the market
- Customer retention
- Market share
- Repeat purchases
- Increasing market share
- Increasing revenue through high sales
- Focusing its attention on customer relationship management.
References
Anderson, E., Fornell, C., & Mazvancheryl, S. (2004). Customer Satisfaction and shareholder value. Journal of Marketing, 172-185.
Evans, G. (2002). measuring and managing customer value. Work study, 51(3).
Kaplan, R., & Norton, P. (1999). he Balanced Scorecard: measures that drive performance. Harvard Business Review, 71–80.
Kirkman, L., & et al. (2008). High-performance work organizations: Definitions, practices, and analysis . New York: Center for Creative Leadership.
