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The Customers Perspective of the Balanced Scorecard

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❶Another issue that an organization must tackle is retaining customers that are profitable and attracting new customers that can help maintain financial gain.

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Other perspectives of the Balanced Scorecard
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The balanced scorecard demands that managers translate their general mission statement on customer service into specific measures that reflect the factors that really matter to customers. Customers’ concerns tend to fall into four categories: time, quality, performance and service, and cost.

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View Customer Perspective online But who is the customer in this case? The answer is not always obvious. The Balanced Scorecard is strategy execution framework (not a CRM), so here we are talking not only about those who pay for your products or services, but about your partners as well.

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In the past, the customer perspective was not the focal point of the Balanced Scorecard, as companies believed product performance and technology innovation to be the backbones of business success. Nowadays, both of these take a backseat to customer satisfaction. The Balanced Scorecard introduced customer metrics into performance management systems. Scorecards feature all manner of wonderful objectives relating to the customer value proposition and customer outcome metrics—for example, market share, .

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A high level of customer satisfaction can dramatically impact your company’s strategic success (and your bottom line). That’s why for-profit companies usually rank the customer perspective second on their Balanced Scorecard—just below the financial perspective. (Nonprofits and municipalities sometimes put this perspective at the top of their strategy map.). & Associates Balanced Scorecard for Customer Support recognizes the strains placed on the organization by including apparently contradictory outcomes – such as reduced cost and increased customer loyalty – in the same model.