7 factors for building extreme customer loyalty rita schnarr ppt

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Customer Loyalty depends on factors such as satisfaction, performance, economic value and alignment, but also on dependence that is emotional, structural and business-related. Come and learn some new marketing techniques for your business and assess those you are using now with Rita Schnarr .

Rita Schnarr is President of Schnarr & Associates and a Partner with Profiles International Inc ~ the world’s innovator in online employment assessments and talent management solutions serving over 40,000 companies worldwide.

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7 factors for building extreme customer loyalty rita schnarr ppt

  1. 1. Welcome ~ Seven Factors for Building Extreme Customer Loyalty Presented By: Rita Schnarr www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  2. 2. Sound Familiar?? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  3. 3. Today’s Presentation Topics: • Why Build Extreme Customer Loyalty? • Customer Loyalty vs. Customer Satisfaction • What Drives Customer Loyalty: “ 1. Emotional Dependence 2. Structural Dependence Two-thirds of business 3. Business Dependence from existing accounts 4. Satisfaction and one-third from new 5. Performance 6. Economic Value Proposition accounts is the common ” 7. Alignment and Fit balance. • Solutions www.profilesinternational.com Six Crucial Behaviors for Customer-Facing Employees | 3 ©2010 Profiles International, Inc. All rights reserved.
  4. 4. Seven Factors for Building Extreme Customer Loyalty Why Build Customer Loyalty? • More predictable revenue • Command premium prices • Lower cost of sales • Higher margins • Word-of-mouth promotion • More open and honest feedback • Willingness to test new ideas • More satisfying work www.profilesinternational.com People Practices for Building Extreme Customer Loyalty | 4 ©2010 Profiles International, Inc. All rights reserved.
  5. 5. Background to “Loyalty”… Josiah Royce: An American Philosopher in the mid-late 1800’s claimed that the trait of loyalty was most often associated with political institutions, religion, war, and family. In these situations, people had one key influence in common ~ ‘A PASSIONATE LINK TO A ‘COMMON CAUSE.’ You build loyalty when you and your customer are ALIGNED on Seven Key Factors… www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  6. 6. 1. Emotional Dependence: ~ The Customer’s psychological commitment to an organization. Factors influencing emotional dependence include: Integrity, reliability, depth of relationship, and empathy. i.e. An online flower shop botches their order and his wife doesn’t get her birthday gift. Others? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  7. 7. …1. Emotional Dependence Learn what your customers value on a personal level and go beyond their expectations to demonstrate that you care about them. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  8. 8. …1. Emotional Dependence Show a high degree of empathy and responsiveness when you sense your customer is getting emotional about an issue. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  9. 9. Put the right person on the job who can really connect with the customer… Your customer-facing people are your brand! It takes 12 good service experiences to overcome a single bad one. 7 of 10 customers who switch to the competition do so because of poor service. 91% of unhappy customers won’t buy again from the company that displeased them. And not only will they defect, they will grumble to 9 of their friends. www.profilesinternational.com People Practices for Building Extreme Customer Loyalty | 9 ©2010 Profiles International, Inc. All rights reserved.
  10. 10. Individual Exercise: 1. Choose One of your Key Customers 2. What Do They Value? ~ Record in your Box www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  11. 11. 2. Structural Dependence: The operational foundation of the relationship. It consists of people, facilities, systems, and distribution channels. i.e. Outsourcing non-core operations such as I.T. Services. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  12. 12. 2. Structural Dependence: Understand how your customers’ businesses operate. Determine where they have gaps or inefficiencies that would enable you to operate portions of their businesses better, cheaper and with fewer headaches or risks for your customer. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  13. 13. In Your Box Record Your Answer to: How can you strengthen this customers’ weak links? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  14. 14. 3. Business Dependence: • ~ The marketing position of the relationship. This includes the way you help your customer create go- to-market solutions, grow and retain customers, and be competitively sound. • Conduct an analysis and identify opportunities for building on each other’s strengths and minimizing each other’s weaknesses. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  15. 15. …3. Business Dependence i.e. Apple distributed the iPhone through AT&T’s massive retail network and, in turn, AT&T built its subscriber base by attracting customers from competing providers. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  16. 16. In Your Box Record the Answer to: How can this relationship work both operationally and financially to build mutual value? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  17. 17. 4. Satisfaction: ~ Customer satisfaction influences loyalty but it isn’t the only predictor! • It is usually an indication of how well your organization performed during a recent event. • This might include elements of service, support, delivery, solving a service issue, or executing a campaign. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  18. 18. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  19. 19. … 4. Satisfaction • Starts with a careful assessment to determine needs and uncover expectations with regard to price, impact and level of service. • Then you must meet or exceed expectations. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  20. 20. … 4. Satisfaction: • “How” you deliver can be as important as “what” you deliver. • Don’t underestimate the impact emotions play in satisfaction scores. • Formal surveys and properly designed questionnaires are a big help. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  21. 21. Harvard Business Review Study… • On more than 75,000 customers interacting with contact center reps/self-service channels found that firms encourage loyalty not by indulging in over-the-top efforts but “by helping (customers) solve their problems Quickly and Easily.” ~ Only “Emotionally satisfied customers increased their spending significantly…” Source: HBR by Matthew Dixon, Karen freeman, and Nicholas Toran, July/Aug 2010 www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  22. 22. With a Partner Discuss: How well has your organization performed for this customer during a recent event? What can you do to better uncover their expectations? (Record answers in your box) 2 min. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  23. 23. 5. Performance • “Not too hot; not too cold – Just right!” • ~ Refers to how a product or service holds up against expectations and required industry standards. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  24. 24. If IKEA Took Over G.M. Unacceptable “Expectations” for the typical car buyer… www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  25. 25. … 5. Performance • Performance is typically measured over a longer period of time and with more objective criteria than the measurement of satisfaction, which is event-based and emotionally influenced. • Know what matters and what is expected. i.e. Don’t assume that a 97% on-time delivery is acceptable. Your customer might need 98% and your competition might boast 99%! www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  26. 26. In your box, record your answer to: What performance factor is expected from this customer? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  27. 27. 6. Economic Value Proposition ~ “Show me the money!” YouTube - JERRY MAGUIRE (Tom Cruise) - SHOW ME THE MONEY (clean edit) ~Answers the question: “How do we help each other make more money and stay in business?” www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  28. 28. 6. Economic Value Proposition You typically help your customer create value through one or more of the following 3 ways: 1. Reduce Expenses 2. Avoid Expenses 3. Increase revenue and profit www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  29. 29. Your Economic Value Proposition could be worth “A Million Dollars!” www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  30. 30. 6. Economic Value Proposition ~ When value is one-sided, loyalty suffers. i.e. If a customer only buys from you at the lowest possible price, ties up your support resources, and pays only after repeated collection calls, then you’ll come to the conclusion that you can’t afford to keep them as a customer. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  31. 31. Be their SuperHero By Finding a “Win-Win” Solution and You will reap the $$$. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  32. 32. Record in your box… How do your solutions/products create economic value for your customer? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  33. 33. 7. Alignment and Fit In a buy/sell relationship this includes the commonality in mission and vision, culture, collaborative practices, leadership, and expectations. The more commonality, the greater the loyalty. Determine the common characteristics that predict good and poor fit. Use your criteria to segment your customers into those who fit well and those who don’t. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  34. 34. Alignment & Fit www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  35. 35. Record in your box… Think back to the customers who work best with you. Why do you think this is the case? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  36. 36. Bringing Your Customer Loyalty Program to Life: • You don’t need to track all seven indicators; a minimum of five is recommended (only those applicable to your business). • Gather insights from multiple contacts in an account – This will get you the most accurate measure of loyalty. Knowledge + Relationships + Economic Value = Exponential Success www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  37. 37. Prioritizing your loyalty-building activity: Where are you today? Where do you need to go? What needs to happen to get you there? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  38. 38. Solutions to Help With Extreme Customer Loyalty Profiles Loyalty Pro™ (PLP) Web-based customer loyalty surveying tool. Loyalty, as determined through the “voice of the customer”, is a leading indicator that predicts the “staying power” of an account. Offers companies a tool to gather ongoing, critical account intelligence that helps to assess the relationship between the buyer and the supplier, ultimately driving the action plan to improve customer service. www.profilesinternational.com Six Crucial Behaviors for Customer-Facing Employees | 38 ©2010 Profiles International, Inc. All rights reserved.
  39. 39. Profiles Loyalty Pro™ (PLP) Having insight into your customer’s perception of your relationship allows you to steer the strategic business efforts and initiatives of the account management teams to continually improve customer relationships and build a network of loyal customers. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  40. 40. Do you have the RIGHT PEOPLE on board who will help you Build Extreme Customer Loyalty?? www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  41. 41. Solutions to Help You Hire/Develop The Right People… Profiles Skills Tests: Consider checking your service people’s abilities to acquire and/or keep your ‘loyal’customers! Do they have the characteristics and skills? Remember: 91% of unhappy customers won’t buy again from the company that displeased them. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  42. 42. Special Offer For Today’s Attendees: Free Customer Service Online Profiles Skills Test (Use for New Hires or Existing Staff) If you’re interested in using it, please give me your business card and I’ll send you more information and I’ll email the test invitation to your candidate of choice. www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  43. 43. Seven Factors for Building Extreme Customer Loyalty Q&A www.profilesinternational.com People Practices for Building Extreme Customer Loyalty | 43 ©2010 Profiles International, Inc. All rights reserved.
  44. 44. Thank You for your Attention! www.profilesinternational.com ©2010 Profiles International, Inc. All rights reserved.
  45. 45. Profiles International – Who We Are Profiles International helps organizations worldwide create high-performing workforces. Through our comprehensive employment assessments and innovative talent management solutions, our clients gain a competitive advantage by selecting the right people and managing them to their full potential. Where We Are Profiles serves 122 countries around the globe and has material in 32 languages. Contact Us Profiles International Rita Schnarr rita@schnarrassociates.com 604-313-4893 ©2009 Profiles International, Inc. All rights reserved. People Practices for Building Extreme Customer Loyalty | 45

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