Chapter 10 and 11

Chapter 10 and 11
Exceed and Communicate Value
Expectations
February 21, 2013
CTC Customer Service class

Customer Service, 5e
Paul R. Timm 2
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
 Value is personal utility
 Value is a tradeoff
 Benefits gained- costs expended
 Value can be seen in terms of the product or
service’s quantity as well as quality

Paul R. Timm 3
A customer’s perception of value
includes:
 Internal (core) value
 External value
 Perception of the exchange experience

Paul R. Timm 4
Intrinsic value must be
satisfactory in the short run to
produce the exchange/purchase.
Yet, Extrinsic value that exceeds
expectations can create long-term
customer relationships

Paul R. Timm 5
If a product or service exceeds
customer expectations, the customer is
highly likely to become a loyal, long-
term customer. If it does not meet
expectations, it may depend on how
many substitutes there are as to how
long the purchaser may ‘hang in there’
before switching.

Paul R. Timm 6
You may be able to enhance the
perception of value with Packaging
 Boxed items vs. items lying on a shelf
 “Facing” items to the front
 Gift wrapping
 Notes or engravings

Paul R. Timm 7
Enhance the perception of value with:
Guarantees or Warranties
 Long-term guarantees may encourage purchase
 Short guarantees may encourage returns

Paul R. Timm 8
Enhance the perception of value with
Goodness of Fit
 Think of customers as individuals
 Avoid stereotyping
 Create “industrial intimacy”
 Use intelligent systems to know the customer,
such as Tapestry Segmentation (BAO)

Paul R. Timm 9
Enhance the perception of value
with Memorable Experiences
 The experience may be the highest level of
economic value
 Connect with customers through experiences,
not just products- especially important in the
service industry.

Paul R. Timm 10
Enhance the perception of value with
Uniqueness and Shared Values
 Employees sharing corporate values
 Customers sharing corporate values
 Customers bonding with employees
 Outside organization can ‘coach’ customers and
companies

Paul R. Timm 11
with Credibility
 The degree of trust for a company
 Initially, communicate clearly to build trust
 Follow up with customers to build trust

Paul R. Timm 12
with Add-ons
 Give customers something unexpected
 Sell them something else they will need, but
don’t promote unneeded items…
 Add-ons make customers feel cared for

Paul R. Timm 13
Use the principles of exceeding
expectations and A-Plus value with
employees/internal customers as well
as with paying customers.

Paul R. Timm 14
Even if customers don’t consciously
realize that you are giving them
“external value” with their purchase,
they will believe that you offer them
greater value when you exceed their
expectations.
(Survey- know their expectations, and
then follow up to communicate and
demonstrate that you know them)

Paul R. Timm 15

Paul R. Timm 16
Notice communications fromNotice communications from
customerscustomers
 Ignoring will damage goodwill
 Take time to answer email/letters- as they
are taking time out of their schedule to
reach out to you!

Paul R. Timm 17
E-commerce has specific communicationE-commerce has specific communication
requirementsrequirements
 Customers value speed, convenience
 Makes customer support accessible
 Honor the customer feedback loop
 Make it interactive- don’t rely entirely on
FAQ’s

Paul R. Timm 18
Provide informational hand holdingProvide informational hand holding
 Personal guides
 Personal shoppers
 Private bankers
 Backup phone numbers

Paul R. Timm 19
Select media carefullySelect media carefully
 Efficiency (cost ÷ number of people reached)
WITH a retention of the message….
 Sometimes doesn’t pay to be efficient
 Use active, multi-faceted communication-
even on the web (website, YouTube, blogs,
etc.. )

Paul R. Timm 20
Achieve message clarity withAchieve message clarity with short, clear
sentences, logical sequencing, and repetition

Paul R. Timm 21
Make information visuallyMake information visually
accessible and helpfulaccessible and helpful
 Use graphics and icons for key information
 Use color to direct and focus attention
 Focus on accessing the most important facts

Paul R. Timm 22
Create user groupsCreate user groups
 Bring customers together
 Offer additional product information or training
 Build relationships/loyalty
 Harley Owner’s Group (HOGs)
 BeMoneySmart.org
 Mac Forums for Apple computer users
 Communities of practice (along the lines of certain
standards)

Paul R. Timm 23
Requiring too much info from customer and
making users repeat selves

Paul R. Timm 24
Build internal and external customer loyalty by
analyzing the quality, quantity, and usability of
messages conveyed in every venue!

Paul R. Timm 25
Audit your companyAudit your company’s messages to’s messages to
eliminateeliminate
 Abrupt tone
 Clichés or jargon
 Stock numbers and acronyms
 Failure to offer an alternative

Chapter 10 and 11

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