Customer Perspective of The Balanced Scorecard (BSC)

Denton and White (200) argue that customer-perspective indicator represents the company’s sources of demand. They further identify the following indicators for customer perspective:

(1) customer satisfaction,
(2) customer retention and loyalty,
(3) new customer acquisition,
(4) market segments,
(5) market share,
(6) customer profitability,
(7) responsiveness,
(8) associate knowledge and service levels, and
(9) mystery-guest assessments.

According to these authors, firms with higher customer-related scorecard indicators will result in higher profitability of the firm. Olve, Roy and Wetter (1999) prose an alternative model and suggest that customer perspective should concern on (1) superior lead time, (2) low defect levels, (3) on time delivery, (4) responsiveness, and (5) superior price/ cost.