The Public Strategies Group

The Customer Strategy: Putting the Customer in the Driver’s Seat

 

Customers are the principal intended beneficiaries of a government service.  Government organizations that make themselves accountable to customers will experience improved performance (especially in combination with the consequences strategy) because customers are in the best position to judge the quality and value of a service.

The customer strategy is not about teaching employees to be polite.  It is much more fundamental.  It makes organizations accountable to their customers, and it helps employees understand whom they are there to serve.  When the State Printer in Minnesota had press operators deliver finished products to the agencies that had ordered the work, he was employing the customer strategy.  He knew that just the act of facing the customer would improve quality and timelines.  It worked!

Making Customers Powerful:

  • Customer Choice

This approach gives the customer a choice between service providers; however, it must be a real choice for it to be effective. The choice may be between public agencies, between public and private agency among private service providers.

  • Competitive Choice

This approach also gives the customer a choice between services but it carries with it consequences of possible revenue loss for the service provider if the number of customers served decreases. This tool is used when the service is a public good and we want to ensure that the service is equally  available to all citizens (e.g., public schools).

  • Customer Quality Assurance

This approach does not give the customer choice of services but gives them evaluative information on the level of service quality. It can also offer customers “guarantees” or “redress” if the service does not live up to specified standards.

 

 

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