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customer relationship(retailing relationship)

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customer relationship(retailing relationship)

  1. 1. Retailer RelationshipCustomer Relationship
  2. 2. Factors to consider a. Customer Base b.Customer Service C. Customer Satisfaction D.Loyalty Programs and Defection Rate
  3. 3. a. Customer Base population trends and lifestyle attitudes toward and reasons for shopping 
  4. 4.  the level of loyalty It is worth nurturing relationships with some shoppers more than with others; they are the retailer’s core customers—its best customers.
  5. 5.  the mix of new versus loyal customers. A mature firm is more apt to rely on core customers and supplement its revenues with new shoppers. A new firm faces the dual tasks of attracting shoppers and building a loyal following.
  6. 6. b.Customer Service  refers to the identifiable, but sometimes intangible activities undertaken by a retailer in conjunction with the goods and services it sells. Customer service affects the total retail experience.
  7. 7. 2 Elements of Customer Service a. expected customer service is the service level that customers want to receive from any retailer, such as basic employee courtesy  b. augmented customer service includes the activities that enhance the shopping experience and give retailers a competitive advantage.
  8. 8.  Businesses must not make customer service investments only to keep pace with growth.  employee empowerment- whereby workers have the discretion to do what they believe is necessary—within reason—to satisfy the customer, even if this means bending some rules.  “73 percent of consumers attribute their best customer-service experience to retail employees. Conversely, 81 percent attribute their worst customer-service experience to retail employees.”
  9. 9. DEVELOPING A CUSTOMER SERVICE STRATEGY  What customer services are expected and what      customer services are augmented for a particular retailer? What level of customer service is proper to complement a firm’s image? Should there be a choice of customer services? Should customer services be free? How can a retailer measure the benefits of providing customer services against their costs? How can customer services be terminated?
  10. 10. Customer Service Classification Patronage builder  High-cost activities that are the primary factors behind customer loyalties. Examples: transaction speed, credit, gift registry
  11. 11. Patronage Solidifiers  The “low-cost little things” that increase loyalty. Examples: courtesy (referring to the customer by name and saying thank you), suggestion selling
  12. 12. DISSATISFIERS  Expensive activities that do no real good. Examples: weekday deliveries for two-earner families, home economists
  13. 13. Basic  Low-cost activities that are “naturally expected.” They don’t build patronage, but their absence could reduce patronage.  Examples: free parking, in-store directories
  14. 14. PLANNING INDIVIDUAL CUSTOMER SERVICES  revolving credit account- whereby a customer charges items and is billed monthly on the basis of the outstanding cumulative balance.  option credit account is a form of revolving account; no interest is assessed if a person pays a bill in full when it is due. Should a person make a partial payment, he or she is assessed interest monthly on the unpaid balance.
  15. 15. C. Customer Satisfaction  occurs when the value and customer service provided through a retailing experience meet or exceed consumer expectations.
  16. 16. Weak-to-Powerful Customer Service  Focus on Customer Concerns  Empower Frontline Employees  Show That You Are Listening  Express Sincere Understanding Apologize  Rectify the Situation
  17. 17. Loyalty Programs  Consumer loyalty (frequent shopper) programs reward a retailer’s best customers, those with whom it wants long-lasting relationships
  18. 18.  Loyalty Group  HBC Rewards

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