Describe HOW your organization determines requirements, needs, expectations, and preferences of CUSTOMERS and markets to ensure the continuing relevance of your products and services and to develop new business OPPORTUNITIES.

Within your response, include answers to the following questions:

3.1a. CUSTOMER and Market Knowledge

a(1)  HOW do you identify CUSTOMERS, CUSTOMER groups, and market SEGMENTS?

HOW do you determine which CUSTOMERS, CUSTOMER groups, and market SEGMENTS to pursue for current and future products and services?

HOW do you include CUSTOMERS of competitors and other potential CUSTOMERS and markets in this determination?

a(2)  HOW do you use the voice of the CUSTOMER to determine KEY CUSTOMER requirements, needs, and changing expectations
        (including product and service features) and their relative importance to CUSTOMERS’ purchasing or relationship decisions?

HOW do your listening methods vary for different CUSTOMERS or CUSTOMER groups, or market SEGMENTS?

HOW do you use relevant information and feedback from current and former CUSTOMERS, including marketing and sales information, CUSTOMER loyalty and retention data, win/loss ANALYSIS, and complaint data for purposes of planning products and services, marketing, making WORK SYSTEM and work PROCESS improvements, and developing new business OPPORTUNITIES?

HOW do you use this information and feedback to become more CUSTOMER focused and to better satisfy CUSTOMER needs and desires?

a(3)  HOW do you use voice-of-the-CUSTOMER information and feedback to become more CUSTOMER-focused, to better satisfy
        CUSTOMER needs and desires, and to identify OPPORTUNITIES for INNOVATION?

a(4)  HOW do you keep your CUSTOMER and market listening and LEARNING methods current with business needs and directions,
        including changes in your marketplace.

Notes:

N1. Your responses to this Item should include the CUSTOMER groups and market SEGMENTS identified in P.1b(2).

N2. If your products and services are sold or delivered to end-use CUSTOMERS via other businesses or organizations (e.g., those businesses that are part of your “VALUE chain”, such as retail stores, dealers, or local distributors), CUSTOMER groups (3.1a[1]) should include both the end users and these intermediate organizations.

N3. The “voice of the CUSTOMER” (3.1a[2]) is your PROCESS for capturing CUSTOMER-related information. Voice-of-the-CUSTOMER PROCESSES are intended to be proactive and continuously innovative to capture stated, unstated, and anticipated CUSTOMER requirements, needs, and desires. The GOAL is to achieve CUSTOMER loyalty and build CUSTOMER relationships, as appropriate.

The voice of the CUSTOMER might include gathering and integrating survey data, focus group findings, Web-based data, warranty data, complaint logs and field reports, and other data and information that affect CUSTOMERS’ purchasing and relationship decisions.

N4. “Product and service features” (3.1a[2]) refers to all the important characteristics of products and services and to their PERFORMANCE throughout their full life cycle and the full “consumption chain.” This includes all CUSTOMERS’ purchase and interaction experiences with your organization that influence purchase and relationship decisions. The focus should be on features that affect CUSTOMER preference and loyalty—for example, those features that differentiate your products and services from competing offerings or other organizations’ services. Those features might include price, reliability, VALUE, delivery, timeliness, ease of use, requirements for hazardous materials use and disposal, CUSTOMER or technical support, and the sales relationship. KEY product and service features and purchasing and relationship decisions (3.1a[2]) might take into account HOW transactions occur and factors such as confidentiality and security. Your RESULTS on PERFORMANCE relative to KEY product and service features should be reported in Item 7.1, and those concerning CUSTOMER perceptions and actions (outcomes) should be reported in Item 7.2.

N5. For additional considerations on products, services, CUSTOMERS, and the business of nonprofit organizations, see Item P.1, Notes 6 and 7, and Item P.2, Note 5.

For additional description of this Item, see 3.1 Customer and Market Knowledge Description.