The presentation highlights importance of delighting customer. It also present different method of delighting customer.

1. Customer
Delight
Not Customer
Satisfaction, but...
BY: Prof. Jitendra Sharma
Trainer & Consultant
Email:
jitendra777@indiatimes.com

3. Objective of the Session
1.What is delighting the customer?
2.WHY delighting customer is
important ?
3.HOW can we delight customer?

4. What is Delighting
Customer?
PART -A

5. 1-5
Traditional Definition of
Marketing
Simple Definition:
Marketing is managing profitable
customer relationships.
Goals:
Profit, Customer Satisfaction & Long term
relationship
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.

6. What determines Customer
Satisfaction
Customer
Satisfaction
Perceived
Service
Expected
Service

7. Levels of Customer Satisfaction
Perceived
Service
Expected
Service
Customer
Satisfaction
Much Better than
expected
As expected
Worse/Different than expected
Delighted *
Satisfied
Dissatisfied
Loyal
Vulnerable
Walk & Talk

8. WHAT IS IT?
• Customer delight is more
about the experience and
emotion than it is about
the product and its features.
• Its about creating customer life time
value by improving the customer loyalty

9. Delight = Expectation + 1

10. + 1s
+ 1 %
+ 1 more smile
+ 1 additional item
+ 1 more personal contact
+ 1 bit more thought fullness
+ 1 extra minute of your time
+ 1 check to make sure all’s now OK
+ 1 telephone call to ensure the customer’s happy
+ 1 anything else that will delight your customers

11. Modern customer-oriented organization chart
Top
manag
ement
Middle management
Front-line
people
Customers
Customers
Front-line
people
Middle
management
Top
manage
ment
C
u
s
t
o
m
e
r
s
C
u
s
t
o
m
e
r
s
Traditional organization chart

12. All profit comes from customers
So if no customers = no profit
and no profit = no business
then no customers = no business
Therefore customers ARE the
business

13. “The greatest danger for most
of us is not that our aim is too
high and we miss it, but that it
is too low and we reach it”
Michelangelo

14. Why delighting Customer
is Necessary?
PART -B

15. Challenging Scenario
– What are our challenges?
• Attitude towards the customer
• Competition
• Price war
• High quality man power
• Marketing and Selling attitude
• Pace of new service/technology induction

16. “ Customer satisfaction is
no longer good enough to
survive today’s competitive
market place. What is
needed is customer
delight.” - Tom Peters

17. CUSTOMER ?
CUST ME MER
OR
ATITHI DEVO BHAVA

18. “ Figures are your history, customers
are your present and future. “
--- Philip Kotler

19. THINK

20. 20
Customer Service Facts
Why customers leave:
1% die
3% move away
68% quit because of an attitude of indifference
towards the customer by the staff
14% are dissatisfied with the product
9% leave because of competitive reasons
www.CustomerServiceManager.com

21. Lifetime Value of a Customer
Toothpaste Rs. 50 K
Detergents Rs. 100 K
Cigarettes Rs. 300 K
Colour TV Rs. 400 K
Branded Shirt Rs. 500 K
Car Rs. 2.5 M
Software Rs. >> M
Source: Atos Origin

22.  91% of unhappy customers will not willingly do
business with you again.
 70% of complaining customers will do business
with you again if you resolve the complaint in
their favor.
 95% of complaining customers will do business
with you again if you resolve the complaint
instantly.
 A typical business hears from only about 4% of
its dissatisfied customers.
• 96% just go away
• 91% will never come back
(Source: “Understanding Customers” by Ruby Newell-Legner)

23. The Truth About Customers
• Ten times more expensive to
acquire a new customer than
to keep a current customer
- Bain & Company Research
• Customers are lost primarily
due to indifference (68%)
versus dissatisfaction (14%) -
WSJ

24. Adequate Is Not Acceptable
• Most of what we do is adequate
• People talk about Customer
Delight
• People talk about bad service
• People don’t talk about adequate
service

25. Dissatisfied customers can cause a
destructive spiral
Delighted Customers
Customers
Dissatisfied Customers
30%
70%
Complain
Walk & Talk
95% of Satisfied Complainants remain loyal
1 x 11
11 x 5
Total
67
1 x 5 5 x 2
Total
16
Source: PIMS, TARP, IBM & other research studies

26. Delighted customers yield several
benefits
» Lower Cost
» Cost 5x more to gain a new customer than to keep one
» Cost 10x more to get dissatisfied customer back
» Growth
» Win customers trust & confidence
» Repeat business
» Non-competitive, shorter lead-time
» Opportunity to deliver new services
» Higher Profits
» Lower marketing costs
» Less risk; less write-offs; less fee-sensitive
» Higher acceptance to leverage new or junior staff

27. HOW?????
To Delight Customer

28. Actually
• Customer expectations are
typically not very high
• Your job is to surprise them
• Customer Delight is doing what
they haven’t even imagined
• What will cause them to say
WOW!
• You know what you can do - they

29. Creating Customer
Delight
• What’s working?
– How can we do more?
• Any barriers?
– How can we overcome them?

30. Understanding What
Customers Really Value
Perceived
Service
Expected
Service
Customer
Satisfaction
What
Customer
Values
Deliverable
(tangibles,
reliability)
Financial Informational
(ease, access,
responsiveness,
security)
Interpersonal
(credibility,
competence,
contact, empathy)
Environmental
Process
Moment
s
of
Truth

31. Hygiene vs. Enhancing
factors
» Hygiene Factors
» Absence: Dissatisfies

» Presence: Neutral

» Enhancing factors
» Absence: Neutral

» Presence: Satisfies


32. Making Customer Delight A Core
Value
• Staff Meetings
• Board Meetings
• Define and visualize the ideal
experience
• Make a part of each agenda
• What did we do right?
• Missed opportunities?
• Recognition
• Who is the “champion” for Customer
Delight?
• How are we treating customers now?

33. I Will
• Identify crimes committed
against Customers, Donors,
Program Participants and Each
Other
• ……and do SOMETHING

34. Two Things I Will Do…
• 1)
• 2)

35. 35
What
separates the
merely good
organization
from the truly
great?
BEST SELLER!

36. 36
RemarkablRemarkabl
ee
1. A Customer
Service Culture
2. Alignment of
Products and
Services With
Mission
6. Organizational
Adaptability
7. Alliance Building
3. Data-Driven
Strategies
4. Dialogue
and
Engagement
5. CEO as a
Broker of
Ideas
Commitment
to Action
Commitment to
Purpose
Commitment
to Analysis
and
Feedback

37. METHODS
OF
DELIGHTING

38. Selected MethodsSelected Methods
1 Customer Services
2. Improving Employee commitment
3. Innovation
4. Customization
5. Experiential marketing
6. Permission Marketing

39. 39
What is Customer Service?
"Customer service is
the ability to provide a
service or product in
the way that it has
been promised.“
Source: Customer Service Manager

40. "Customer service is about treating
others as you would like to be treated
yourself and how they want to be
treated."
Source: Customer Service Manager

41. "Customer service is a process for
providing competitive advantage and
adding benefits in order to maximize the
total value to the customer."
Source: Customer Service Manager

42. Example

43. 43
2009 Businessweek
Customer Service Champs

44. 44
2009 Business week
Customer Service Champs
1. USAA
2. JAGUAR
3. LEXUS
4. THE RITZ-CARLTON
5. PUBLIX SUPER MARKETS
6. ZAPPOS.COM
7. HEWLETT-PACKARD
8. T. ROWE PRICE
9. ACE HARDWARE
10. KEYBANK
11. FOUR SEASONS HOTELS
& RESORTS
12. AMAZON.COM
1. NORDSTROM
2. CADILLAC
3. AMICA
4. ENTERPRISE RENT-A-CAR
5. AMERICAN EXPRESS
6. TRADER JOE'S
7. JETBLUE AIRWAYS
8. APPLE
9. CHARLES SCHWAB
10. BMW
11. TRUE VALUE
12. L.L. BEAN
13. JW MARRIOTT
Source: BusinessWeek Online

45. 45
Case Study - Zappos.com
Source: The Letter Two.com

46. 46
Zappos is committed to WOWing every customer.
Customers come…
Over 10 million total purchasing customers
Customers come back…
75% of purchases from returning customers
Repeat customers order 2.5x in the next 12 months
Customers come back, order more and order
more often…
Source: TheLetterTwo.com

47. 47
What customers first see
24/7
Toll free phone number
Free shipping and return shipping
365-day return policy
Source: TheLetterTwo.com

48. 48
What customers experience
Fast, accurate fulfillment
Most customers are “surprised”-upgraded to
overnight shipping
Friendly, helpful “above and beyond” customer
service
Occasionally direct customers to competitors’
web sites
Source: TheLetterTwo.com

49. 49
Internal Methods
 5 weeks of culture, core
values, customer
service, and warehouse
training for everyone.
 Culture Book
 Interviews & performance
reviews are 50% based on
core values & culture fit.
Source: TheLetterTwo.com

50. 50
Zappos
Delivering Happiness
(customers and employees)
“People may not remember
exactly what you did or what you
said, but they will always
remember how you made them
feel.”
Source: TheLetterTwo.com

51. 51
Zappos Core Values
Deliver WOW Through Service
Embrace and Drive Change
Create Fun and a Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships With Communication
Build a Positive Team and Family Spirit
Do More with Less
Be Passionate and Determined
Be Humble
Source: TheLetterTwo.com

52. 52
Innovation
Innovation allows organizations to
remain competitive. Nurturing the ideas
of employees is vital to the growth of the
organization.

54. 10 - 54
• $50 billion in profits
over 27 years
• Early new-product
development relied
heavily on copying
the competition
• $4.2 billion
annually invested
in R & D
• Innovation is
critical to
Microsoft’s future
success
• Much of R & D
efforts are
Internet related
• Many new
products and
MicrosoftMicrosoft
Case Study

55. Tablet

56. Copyright 2007, Prentice
Hall, Inc.
8-56
Firm History
• Steve Jobs’s creativity
led to innovation in
user friendliness of
computers.
• LazerWriters and the
Macintosh established
Apple firmly in
desktop publishing
market.
• Status as market
share leader and
innovator was lost in
Apple Computer – Innovation atApple Computer – Innovation at
WorkWork
Case StudyCase Study
Firm Recovery
• Steve Jobs returns in
1997 and revitalizes
Apple by first launching
the iMac.
• The Mac OS X next
breaks ground and acts
as a launching pad for
a new generation of
computers and
software products.
• iPod and iTunes change
the face of music and

57. Google

58. Google Phone- Nexus one
Google’s mobile operating system for phones

59. Gillette Men’s Razors:
Product Modification

60. Gillette Women’s Razors:
Product Modification

62. LG

63. Innovative marketing
Strategy
Future

64. Experiential Marketing
“Experiential Marketing: Beside product features and
benefits, promotion connecting it to unique and
interesting experiences”
 if you charge for the time consumer spend with you, then
& only then you are in experience business
 Employ multiple touch points & multiple senses
 Often involves special events, contests, promotions,
sampling, on-line activities, etc.
 Combine brand education & entertainment
 Distinctive and relevant
 Example: (Disney Village), Rainforest Cafe, Planet
Holywood, Levi‘s and Nike Brand Stores
 Example: Day@Xcellon

65. Requirement –different from
traditional marketing
Focus on consumer experience
Focus on consumption situation
View consumer as rational/emotional
Use eclectic (diverse) methods and tools

66. Example
• Sample house
• Virtual 3 D image
• Test Drive

67. One-to-One Marketing:
Competitive Rationale
“One-to-one Marketing: From transaction-
based marketing towards relationship
marketing including customer databases -
dialog - customization.”
Three things
1.Focus on individual customer through customer
database
2.Respond to consumer dialogue via interactivity
3.Customize product & services as per their requirement

68. One-to-One Marketing:
Five Key Steps
Identify consumers, individually and
addressable
Differentiate them, by value and needs
Interact with them more cost-efficiently
and effectively
Customize some aspect of the firm’s
behavior
Brand the relationship

69. One-to-One Marketing:
Consumer Differentiation
Consumers help to add value by providing
information
Firm adds value by generating rewarding
experiences with consumers
 Creates switching costs for consumers
 Reduces transaction costs for consumers
 Maximizes utility for consumers

70. Web Sites for In-Class Activity
1) Computers:
 Dell - http://www.dell.com/
 Gateway -
http://www.gateway.com/
 Apple - http://store.apple.com/
3) Automobiles:
 Ford -
http://www.forddirect.com/
 BMW - http://www.bmw.com/
 Jaguar -
http://www.jaguar.com/us/
5) Jewelry:
 Mondera -
http://www.mondera.com/
 DeBeers -
http://www.adiamondisforever
2) Clothing:
– Lands’ End -
http://www.landsend.com/
– Shirtcreations -
http://www.shirtcreations.
com/
– Americanfit-
http://www.americanfit.co
m/
4) Bicycles:
– Cambria Bicycles -
http://www.cambriabike.c
om/
– Cannondale -
http://www.cannondale.co
m/

71. http://www.dell.com/

72. http://www.cannondale.com/custbike/c2.html

73. http://www.landsend.com/

74. http://www.FordDirect.com/

75. http://www.smart.com/

76. Permission Marketing
The practice of marketing to consumer only after
gaining express permission…..
Permission marketing can be contrasted to interruption
marketing
Permission marketing “encourages consumers to
participate in a long-term interactive marketing
campaign in which they are rewarded in some way for
paying attention to increasingly relevant messages.”
 Anticipated
 Personal
 Relevant
Marketing based on consumer willingness and that
marketers respect consumers‘ wishes.

77. 5 Steps in Permission
Marketing
Must offer incentive (overt, obvious, and clearly
delivered) to prospect to volunteer
Must offer a curriculum over time, teaching the
consumer about the product or service
Must reinforce the incentive over time that
prospect maintain permission
Offer more incentive to get more permission
from the consumer
Must leverage permission to generate profits

78. Integrating the Brand
Into Supporting Marketing Programs
Product Strategy
− Deliver tangible and
intangible benefits
− Add value through
customer information
Pricing Strategy
− Understand perceptions
of value
− Balance price, cost, &
quality
• Communication
Strategy
• Mix & match communication
options
• Channel Strategy
• Blend channel “push” with
consumer “pull”
• Develop & brand direct
marketing options
Supporting marketing mix should be designed to
enhance awareness and establish desired brand image.

79. 79
Touch Points
Email
Voicemail
Snail Mail (Post)
Phone
Fax
Face-to-face
Social Media

80. 80
Radar On Antenna Up

81. THANK YOU