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WHY SATISFIED CUSTOMERS
DEFECT?
THE GULF BETWEEN SATISFIED CUSTOMERS AND
COMPLETELY SATISFIED CUSTOMERS CAN SWALLOW
A BUSINESS
Learning Objectives:
 Survey: Assumptions
 Satisfaction-Loyalty Relationship
 How to listen to customers?
 Types of Customers
 How to Secure your Customers’ loyalty
Survey: Assumptions
Response Description Loyalty
5 Completely satisfied Very loyal
3 – 4 Satisfied Easily switched to a
competitor
1 – 2 Dissatisfied Very disloyal
Providing customers with outstanding values even in a less
competitive market
Choice of wrong customers can lead to high dissatisfaction
Different satisfaction levels Different issues Different actions
Complete customer satisfaction: key to high loyalty
Relying solely on customer satisfaction surveys can be fatal
Satisfaction-Loyalty Relationship
Non competitive
zone
Competitive zone
Regulated monopoly of
substitutes
Dominant brand equity
High cost of switching
Powerful loyal program
Proprietary technology
Commoditization or
low differentiation
Consumer
indifference
Many substitutes
Low cost of
switching
How to listen to customers?
•Customer-Satisfaction indices
•Feedback
•Market research
•Frontline personnel
•Strategic activities
•Satisfied customers don’t give negative feedback
oThe reliability of customer research falls
•Consistent
oPeriod-to-period changes have to be evaluated
•Capture information on individual level to tailor individual experiences
Types of customers:
Satisfaction Loyalty Behavior
Loyalist/Apostle High High Staying and
supportive
Defector/Terrorist Low to medium Low to medium Leaving or having
left and unhappy
Mercenary High Low to medium Coming and
going; low
commitment
Hostage Low to medium High Unable to switch;
trapped
How to Secure your Customers’ Loyalty
Clearly define target customers
Measure Customer Satisfaction Systematically
Variety of Measurement Methods
Customer Satisfaction Information into Loyalty
measurements
Completely Satisfy Customers
Thank
You

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Bc final ppt

  • 1. WHY SATISFIED CUSTOMERS DEFECT? THE GULF BETWEEN SATISFIED CUSTOMERS AND COMPLETELY SATISFIED CUSTOMERS CAN SWALLOW A BUSINESS
  • 2. Learning Objectives:  Survey: Assumptions  Satisfaction-Loyalty Relationship  How to listen to customers?  Types of Customers  How to Secure your Customers’ loyalty
  • 3. Survey: Assumptions Response Description Loyalty 5 Completely satisfied Very loyal 3 – 4 Satisfied Easily switched to a competitor 1 – 2 Dissatisfied Very disloyal Providing customers with outstanding values even in a less competitive market Choice of wrong customers can lead to high dissatisfaction Different satisfaction levels Different issues Different actions Complete customer satisfaction: key to high loyalty Relying solely on customer satisfaction surveys can be fatal
  • 4. Satisfaction-Loyalty Relationship Non competitive zone Competitive zone Regulated monopoly of substitutes Dominant brand equity High cost of switching Powerful loyal program Proprietary technology Commoditization or low differentiation Consumer indifference Many substitutes Low cost of switching
  • 5. How to listen to customers? •Customer-Satisfaction indices •Feedback •Market research •Frontline personnel •Strategic activities •Satisfied customers don’t give negative feedback oThe reliability of customer research falls •Consistent oPeriod-to-period changes have to be evaluated •Capture information on individual level to tailor individual experiences
  • 6. Types of customers: Satisfaction Loyalty Behavior Loyalist/Apostle High High Staying and supportive Defector/Terrorist Low to medium Low to medium Leaving or having left and unhappy Mercenary High Low to medium Coming and going; low commitment Hostage Low to medium High Unable to switch; trapped
  • 7. How to Secure your Customers’ Loyalty Clearly define target customers Measure Customer Satisfaction Systematically Variety of Measurement Methods Customer Satisfaction Information into Loyalty measurements Completely Satisfy Customers