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Assignment Activity 1: Be able to use environmental scanning to find and retain customers.

AC 1.1 Conduct an environmental scan of the business environment in which your organisation operates.

An environmental scan refers to scanning the environment where an organisation will be doing business. This will include not only the influence of the external environment on an organisation’s operations but also the factors determining the organisation’s strengths, weaknesses, resources, and internal organisational culture. The process in such a case will help businesses identify both opportunities and threats and understand which kind of capabilities will be needed to adapt or mitigate these external pressures. The systematic scanning of the environment allows an organisation to remain competitive, agile, and constantly aligned with industry changes.

AC1.2 Analyse factors that impact upon the organisation’s ability to find new customers and retain existing customers.

The factors that could impact the ability of an organisation to attract new customers or retain present customers include:

  • Market Conditions and Competition: This refers to alterations in the economic condition and strategy used by the competitors, and may eventually have an impact on bringing new customers and retaining the existing customers.
  • Customer Experience/Service Quality: Quality products, and good customer service with personalisation help make the customers loyal, attract new customers, and also serve to retain the existing ones.
  • Brand Reputation: A good trustworthy brand becomes a loyal one to a customer, and a bad reputation would drive the customers further.
  • Technology & Innovation: A strong presence of digital platforms and continuous innovation helps touch and engage the customers.
  • Marketing & Promotions: Proper marketing, well-targeted advertisement, and loyalty programs can attract new customers and support repeated business.
  • Pricing: The competitive pricing with an offer of value for money attracts and retains customers.
  • Customer Feedback & Adaptation: Customer needs are listened to and adapted to ensure satisfaction and loyalty.
  • CRM Systems: Proactive engagement and CRM tools work to fortify customer relationships, retention, and growth.

AC 1.3 Use the results of the environmental scan, to plan strategies to improve the organisation’s ability to find and retain customers.

The results of this environmental scanning can then be used to identify key trends, opportunities, and challenges within the market that can help improve the organisation’s capacity for finding and retaining customers. By being able to analyze what customers prefer, the behavior of competitors, and economic conditions, strategies can then be devised to effectively respond to customer needs. 

This may be accomplished by refining marketing tactics, improving customer service, and even offering custom-made products or services. With the help of digital tools and data analytics, the organisation would gain more insight into the consumers and ensure that it will not fall behind competitors in building long-term customer loyalty.

AC1.4 Lead the implementation of strategies to improve the organisation’s ability to find and retain customers.

To make the organisation find and retain customers more effectively, they must:

  • Know the Market: Carry out research on the target market of needs of customers for targeting specific segments.
  • Develop Marketing Strategies: Undergo content marketing, digital campaigns, and personalized outreach to attract new leads.
  • Improve the Customer Experience: Offers excellent services, offers easy communication, and optimizes your website.
  • Build Loyalty: Sellers offer rewards, seek suggestions from customers, and talk to them after selling.
  • Measure Success: Track key metrics such as acquisition costs, retention rates, and satisfaction.
  • Enrich Relationships: Use e-mail nurturing to keep the customers involved. Engage them through online communities.
  • Adapt and Innovate: Take advantage of any trends that surface, experiment with new ideas, and refine strategies.

Assignment Activity  2: Understand how the customer supplies the chain operates to meet customer requirements.

AC2.1 Appraise the customer supply chain to identify any strengths, weaknesses, opportunities or threats.

Appraisal of the customer’s supply chain includes its SWOT analysis: strength points that the customer’s supply chain harbors positive aspects and; weaknesses, opportunities, and also threats. Strengths may be such a robust network of reliable suppliers or efficient inventory systems that enable smooth running. Weaknesses could involve a lack of sufficient supplier diversity or dependence on one single logistics provider. 

Here, the threat lies in the vulnerabilities that these factors may expose. Opportunities include new supplier explorations or new technology integrations to enhance efficiency and deliver lower costs. However, there are many potential threats to the stability of the supply chain- market volatility, transportation problems, etc as well as cost increases in materials. 

However, a good SWOT analysis can provide insights into areas that may be improved upon as well as strategic directions that may deserve attention.

AC2.2 Use the results of the audit to recommend strategies to improve your organisation’s ability to meet customer requirements.

To capitalize on the opportunities created by the audit results to serve customers better as below:

  • Audit Findings Analysis: Identify what must change – the gap between current processes and desired outcomes of the customers. For instance, what appears to be long service times or low-quality output.
  • Set measurable objectives: Objectives have to be measurable, like delivery time or customer service. This will ensure the audit findings are translated directly into fulfilling that objective.
  • Establish Strategies:
  1. Improve Communication: Implement effective systems and employee training in order to reduce response times.
  2. Improve Quality: Apply quality checking and change products or services as required.
  3. Balance Support: Add manpower or introduce multichannel support, providing an efficient resolution process.
  4. Simplify Process: Automate tasks and develop CRM systems.
  5. Review Policy: Re-model pricing or return policy as the requirement of customers matches.
  6. Train Employees: Motivate all employees to participate in customer-centric training
  • Monitor Performance: Success through performance like customer satisfaction and review feed.
  • Action plan: The strategy requires role assignments, limits of time, and resources needed for the proper implementation.
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