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The Art of Customer Delight Seminar Outline : 1. Service Quality Concepts 2. Customer Delight 3. Skills on Delighting Customers
Part I : Service Quality Concepts Coverage : o What is Service Delivery? o Inside the Service Factory o Quotes on Quality o Basic Emotions of Customers o Customer Relationship Management o Different Customer Needs
What is Service Delivery? o A series of overlapping processes o 3 main components : - input : service provider - output : service - recipient : customer Part I : Service Quality Concepts
Inside the Service Factory o Overlapping processes - production, delivery & consumption o Active involvement of customer as a co-producer o Customers behave differently & evaluate services on their own terms Part I : Service Quality Concepts
Inside the Service Factory o Non-standardised service delivery o Difficult to apply quality controls to avoid service defects o Right quality from the start o Staff ’s skills, knowledge & attitude affects service quality Part I : Service Quality Concepts
Quotable Quality Quotes “ Quality is not an act. It is a habit.” (Aristotle) “ Do what you do so well that people will want you to do it again and will tell others what you do. ” (Walt Disney) Part I : Service Quality Concepts
Quotable Quality Quotes “ Quality is never an accident. It is always the results of high intention, sincere effort, intelligent direction and skilful execution; it represents the wise choice of many alternatives. ” (William Foster) Part I : Service Quality Concepts
4 Basic Emotions of Customers o GLAD - happy, cheerful, pleased o SAD - upset, dissatisfied, unhappy o MAD - furious, resentful, aggravated o SCARED - fearful, frightened, nervous Strive for “GLAD” emotional state of mind Part I : Service Quality Concepts
Customer Relationship Management o Know Thy Customers! o Total customer satisfaction o Collaboration with customers via dialogues, feedback & surveys o Lets “I & You” creates the “US” Part I : Service Quality Concepts
4 Rings of Customer Needs o Harvard Business School Professor Theodore Levitt o A unique approach in analysing the concept of ‘total’ product or service o “The product is what the product does. It is the total package of benefits the customer receives when he buys … ” Part II : Different Customer Needs
4 Rings of Customer Needs Core - absolute lowest to be expected. Expected - current expectations. Augmented - differentiated features Potential - needs which customers are not aware of Part II : Different Customer Needs Core Expected Augmented Potential
Class Exercise - Identifying Needs o Divide all participants into 3 groups o Each group will agree on a common type of service provided by Informatics. o Each group will identify the customers ’ needs under each “ring”. Part II : Different Customer Needs
Part II : Customer Delight Coverage : o Customer Delight Pays o How is Extraordinary Service Provided? o CARE Ways of Delighting Customers
Customer Delight Pays o 96% of unhappy customers disappear o 54% - 70% of complainants will return if their complaints are resolved o Costs 5 times to find new customers than it does to retain present ones o Firms with better services charge 9% more & grows by 6% a year Part III : Customer Delight
Providing Extraordinary Service o Exceeds customers ’ expectations o Makes the customers feel you CARE & are doing your best o Value-for-money(time) services o “Under Promise & Over Deliver” Part III : Customer Delight
CARE Ways of Delighting Customers o Show customers that you CARE o CARE builds up customers ’ loyalty o An acronym that stands for: C - credible A - accessible R - responsive E - excellent Part IV : CARE Ways of Customer Delight
Meaning of “CARE” - “C” “ C ARE” - credible o Business continuity depends on credibility o Depends on reliability of service provider o Do what you promise to do o Get it right the first time & on time o Meets the specified service standards Part IV : CARE Ways of Customer Delight
Meaning of “CARE” - “A” “ C A RE” - accessible o Make yourself available to customers o Convenient & easy for customers to access information he wants o “Don’t pass the customer around.” Part IV : CARE Ways of Customer Delight
Meaning of “CARE” - “R” “ CA R E” - responsive o Treat every customer as an individual with unique service needs & expectations o Answer promptly to customer ’s needs o Determined by degree of empathy, caring & individual attention shown Part IV : CARE Ways of Customer Delight
Meaning of “CARE” - “E” “ CAR E ” - excellent o Strive for excellence with your BEST service efforts o What are “BEST” service efforts: B - do your B est always E - E fficient service processes S - S mile all the times T - delivers services on a T imely basis Part IV : CARE Ways of Customer Delight
Quiz : How Well You Listen To Customers Part V : Class Review 1. You're interviewing customers, and an elderly gentleman says something in an accent that's difficult to understand. a. Try to get the gist of what's he saying, but don't insult him by asking him to repeat what you didn't understand b. Have him talk to someone else who may understand his accent better. c. Apologise & ask him to repeat what you didn't understand. Answer : (C)
Part V : Class Review 2. . A customer orders "some paper". He usually buys five boxes of paper at once. a. Ask the customer whether you should ship five boxes. b. Go ahead and send five boxes. c. Wait until the customer tells you how many. Quiz : How Well You Listen To Customers Answer : (A)
3. . A few customers ask for a product that you don't carry.
a. Tell your R & D people about the customers' interest.
b. Explain to the customers why your company doesn't
stock the product.
c . Apologise for not carrying it.
Quiz : How Well You Listen To Customers Answer : (A)
Part V : Class Review 4. There are so many distractions you're unable to concentrate on what a customer is saying. a. Listen as well as you can. b. Postpone the meeting until you can listen. c. Assume what the customer is saying is unimportant and pretend to listen. Quiz : How Well You Listen To Customers Answer : (B)
Part V : Class Review 5. A new customer makes a complaint you've already heard from others. a . Stop the customer, and say you know exactly what the matter is. b. Act like you're listening, but feel free to think of other things until she's finished. c. Hear her out, to be sure the complaint is really what you think it is. Quiz : How Well You Listen To Customers Answer : (C)
Part V : Class Review 6. . A customer sharply criticises your organisation. a. Think up a defense of your organisation. b. Decide how you feel about the criticism. c. Suppress your feelings and evaluate the criticism. Quiz : How Well You Listen To Customers Answer : (C)
Part V : Class Review 7. . A customer gives very abrupt answers to your questions about how you can improve your quality. To learn more: a. Restate what the person has said. b. Ask why the person won't tell you more. c . Conclude that the person has told you all need to know. Quiz : How Well You Listen To Customers Answer : (A)
9. You're trying to listen to a customer who speaks so
slowly that your mind wanders.
a. Use the extra time to ask yourself questions about
what she's saying.
b. Use the extra time to think about personal matters.
c. Look impatient and drum your fingers in order to
hurry her up.
Quiz : How Well You Listen To Customers Answer : (A)
Part V : Class Review 10. You're talking with a customer who uses terms you don't understand. a. . Ask the customer to explain the terms you don't know. b. Try to pick up the meaning of the terms from the context. c. Take notes and later ask someone else to explain the terms. Quiz : How Well You Listen To Customers Answer : (A)
Part V : Class Review Conclusions: a. The answers are based on the principle that what every customer says has value. b. So you need to accept customers as they are. Don't make any assumptions about whether customers have something worthwhile to say. They may surprise you. c. Get the whole message, even if you have to ask questions, suppress your feelings, or go somewhere else to listen. Quiz : How Well You Listen To Customers
Part III : Skills on Delighting Customers Coverage : o Attitudes of Service Champions o Frontline Service Providers ’ Skills o Service Recovery
Attitudes of Service Champions o Take responsibility, put every commitment in writing. o Keep a keen/eager desire to serve others o Show empathy to customers ’ problems o Ability to convey trust, competence & confidence - assuring services Part V : Skills on Delighting Customers
Attitudes of Service Champions o Make the invisible part of service visible o Provide value-added services o Show personal touch & care o Under-promise & over-deliver o Be professional Part V : Skills on Delighting Customers
Frontline Service Providers ’ Skills o You represent the organisation o Every contact offers you a new opportunity for self-enrichment o Handles emotional situations well o Provides positive strokes where appropriate Part V : Skills on Delighting Customers
Frontline Service Providers ’ Skills o Undivided attention to your customer o Be natural, not phoney or mechanical o Be positive, energetic, helpful & cordial o Be your customer ’s agent Part V : Skills on Delighting Customers
Importance of Service Recovery o Complaints - best source of feedback o 54% - 70% of customers return when their complaints are resolved o 95% of customers become loyal when their complaints are resolved quickly o Turn “upset” into “delighted” customers Part VI : Service Recovery
Service Recovery System o Must have a planned service recovery system when things go wrong o Examples - wrong lecture dates, incorrect names on certificates, computer system breakdowns o Good service recovery enhances perceived value of services Part VI : Service Recovery
What Do Customers Want? o To receive an apology o To be offered a “fair fix” for the problem o To be treated in a caring manner o Not treated liked a nuisance o Effective service recovery procedures Part VI : Service Recovery
“ STEW” - Handling Upset Customers S - Shut Up T - Thank Them E - Explain W - Win Them Back Part VI : Service Recovery
Conclusion CARE for your customers - formula to retain customers for a long time. Delivers credible, accessible, responsive & excellent services all the time. Puts in your BEST service efforts Turns “upset” to “delighted” customers Part VI : Service Recovery
Class Exercise Group I : Relate incidents that have made you dissatisfied customers. How do the service staff act & behave? Group II : Relate incidents that have made you delighted customers? How do the service staff act & behave? Group III : List down characteristics of a good service provider who delight their customers. Part IV : CARE Ways of Customer Delight