Who are Customers?

Relevant customers are those who are interested in products or services produced by an organization. A customer is relevant if they have interest and desire, access to the products, and income to purchase the products. All firms have relevant customers and customers who are not relevant. This applies to both profit and non-profit companies (Kaplan, 2010).
For-profit companies, the relevant customers are those that support the organization. For instance, the Coca Cola Company has relevant customers who purchase the products that the company offers and, in so doing, support company operations. Non-profit making companies like the Red Cross society also have relevant customers like war victims, which the organization directly supports. Non relevant customers are basically investors mainly because a company does not directly impact them. Without relevant customers, there would be no company as all companies work to meet the needs of the relevant customers.
A Balanced Scorecard is a performance management system that organizations use to align their mission and vision with daily operations and customer requirements. The scorecard allows a business to measure operations, organizational capacity and financial and customer results. Balance Scorecard systems are applicable to all companies, including public, private, profit-making and non-profit making companies (Kaplan, 2010).
Organizations that have all parts of the Balanced Scorecard operate equally are able to view three dimensions of organization performance which include Operations, Capacity, and results (both financial and customer). Such a company is different from a company without relevant customers because a balanced scorecard enables a company to assess customer satisfaction and whether it has achieved its vision. Companies without relevant customers cannot use the balanced scorecard because the three dimensions of organizational performance cannot be measured.

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