The document discusses managing customer relationships and loyalty. It describes the four stages of brand loyalty as cognitive, affective, conative, and action loyalty. Loyal customers are more profitable over time as they spend more, cost less to serve, and recommend new customers. The document also discusses measuring customer lifetime value, developing relationships through database marketing and interaction marketing, segmenting and targeting customers, and strategies for building and maintaining customer loyalty.
Significance of Service quality is very important for the success of a service company :
1. To win credibility & get repeat customers : If a company offers quality service consistently, It enjoys repeat business, i.e., customers visit it repeatedly. They may even refer it to their friends & relatives and provide positive word-of-mouth publicity to the quality service offered by the company.
2. To charge premium price : When a company offers superior quality service, compared to its competitors, customers who value quality will always prefer this company to other players in the market. So, the company will be in a position to charge a premium price from customers.
According to Berry & A Parasuraman, service quality is determined by customers using various criteria like credibility, security, access, communications, tangibles, responsiveness, reliability, competence, courtesy, tangibles, understanding, etc. Gronoos also suggested another list of criteria as professionalism & skills, attitude & behaviour, accessibility & flexibility, reliability & trustworthiness, reputation & credibility, and recovery. Since some of these factors are similar or overlapping, the authors have consolidated these into five distinct dimensions,
These dimensions represent how consumers organise information about service quality in their minds. These five dimensions were found relevant for banking, insurance, appliances repair, & maintenance, securities brokerage, long distance tele-service, auto repair service, & others. The dimensions are also applicable to retail & business services. This can be logically extended to internal services as well.
Services Marketing - Service Encounter Failure & RecoveryHimansu S Mahapatra
Services Marketing
CHAPTER – 5
Service Encounters, Service Failure and Recovery
Service Recovery Strategies
Most companies have to learn the importance of excellent service recovery for disappointed customers and practice them.
This in reality is a combination of several different strategies that need to work together, as given below in the presentation
Consumer needs and wants are filled with market offering of products and strong customer brand
engagement. In organizations importance of marketing process, orientation elements, STP,
Marketing Mix, Consumer Insights are being illustrated here. Above all the role of marketing in
creating values for customers and ways of maintaining strong brand loyalty and customer
engagement with practical examples are described in this assignment. Authoritative achievement
to a great extent relies on upon the dynamic promoting techniques it takes to maintain in the
aggressive commercial center.
Significance of Service quality is very important for the success of a service company :
1. To win credibility & get repeat customers : If a company offers quality service consistently, It enjoys repeat business, i.e., customers visit it repeatedly. They may even refer it to their friends & relatives and provide positive word-of-mouth publicity to the quality service offered by the company.
2. To charge premium price : When a company offers superior quality service, compared to its competitors, customers who value quality will always prefer this company to other players in the market. So, the company will be in a position to charge a premium price from customers.
According to Berry & A Parasuraman, service quality is determined by customers using various criteria like credibility, security, access, communications, tangibles, responsiveness, reliability, competence, courtesy, tangibles, understanding, etc. Gronoos also suggested another list of criteria as professionalism & skills, attitude & behaviour, accessibility & flexibility, reliability & trustworthiness, reputation & credibility, and recovery. Since some of these factors are similar or overlapping, the authors have consolidated these into five distinct dimensions,
These dimensions represent how consumers organise information about service quality in their minds. These five dimensions were found relevant for banking, insurance, appliances repair, & maintenance, securities brokerage, long distance tele-service, auto repair service, & others. The dimensions are also applicable to retail & business services. This can be logically extended to internal services as well.
Services Marketing - Service Encounter Failure & RecoveryHimansu S Mahapatra
Services Marketing
CHAPTER – 5
Service Encounters, Service Failure and Recovery
Service Recovery Strategies
Most companies have to learn the importance of excellent service recovery for disappointed customers and practice them.
This in reality is a combination of several different strategies that need to work together, as given below in the presentation
Consumer needs and wants are filled with market offering of products and strong customer brand
engagement. In organizations importance of marketing process, orientation elements, STP,
Marketing Mix, Consumer Insights are being illustrated here. Above all the role of marketing in
creating values for customers and ways of maintaining strong brand loyalty and customer
engagement with practical examples are described in this assignment. Authoritative achievement
to a great extent relies on upon the dynamic promoting techniques it takes to maintain in the
aggressive commercial center.
Strategi Pemasaran Jasa - Garuda Indonesia AirlinesMuhdi Kurnianto
Strategi yang digunakan Perusahaan Garuda Indonesia untuk mencapai target 5 (five) Star Ailines tahun 2015 ditinjau dari strategi sektor jasa yaitu People, Process, dan Physical
Solving business problems using mekko graphics: This presentation shows you how to improve customer loyalty by identifying reasons for churn and ways to reduce them
The HR Business Partner is the most difficult role Human Resources can offer. Becoming the HRBP is a long journey, because the fresh college graduate has to learn many things about the HR Management.
This presentation covers foreign exchange risk definition, types, management and measurement. Hedging tools and techniques; both internal and external are also discussed.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
Social: Session 7: Turbocharging Customer Service Through Social TechnologiesSugarCRM
Social media - Twitter, Facebook, discussion forums, ideation communities, social listening platforms to name a few - can be used to help companies deliver a customer service experience that aligns with customer expectations. This alignment ultimately results in a more loyal customer base and a quantifiably larger wallet share. However, the value of these social technologies can’t be realized by just bolting them onto a suboptimal contact center. This presentation describes the foundational elements that your contact center must get right before you consider adding social technologies, and how social technologies can be deployed in a manner that extends current capabilities, and reinforces the customer experience and company brand.
Webinar on the shift in measuring customer differentiation from satisfaction to engagement, where customers emotionally connect with the service organization versus simply receive service within preestablished time limits. Source of competition for companies looking to differentiate themselves on other than simply price.
Achieving Dialogue In The Age Of The Omni-Channel CustomerG3 Communications
"Blast" marketing strategies of the past are no longer sufficient to engage today's customers and foster loyalty. Typical campaign response rates have plummeted while customer opt-out rates have ascended, limiting your ability to converse with even your most valuable customers. New automated dialogue strategies can help retailers create a seamless experience across all channels and engage with each of their customers as individuals, connecting every customer communication - outbound, inbound, marketing, sales or service - into an ongoing dialogue where customer insight and understanding forms the basis for each and every interaction.
Make money with big data by organizing your company around your customers. I presented this deck at the Cybera Big Data #cybersummit 2012 in Banff, Canada. In it, I talk about customer loyalty, how to use driver and linkage analysis to sort out both what's important to your customers and what will drive sustainable revenue for your business. Case studies include a SaaS software company, and U.S. Hospital patient experience data based on HCAHPS patient surveys from 4,610 health care facilities nationwide.
Both large organisations and start-ups need to think about new ways to offer services. London Business School Professor Kamalini Ramdas shares her research, highlighting opportunities that exist through innovating different aspects of a service, including the service product and the way in which it is delivered.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
2. Four Stages of Brand Loyalty in a
Consumer
• Cognitive loyalty – perception from brand
attribute information that one brand is preferable
to its alternatives
• Affective loyalty – developing a liking for the
brand based on cumulatively satisfying usage
occasions
• Conative loyalty – commitment to rebuying the
same brand
• Action loyalty – exhibiting consistent repurchase
behavior
3. Loyalty is Important to Profitability :
Index of Customer Profits over Time (Fig.
12.1)
(Year 1=100)
350 –
300
250
200
150
100
50
0
Year 1 Year 2 Year 3 Year 4 Year 5
Credit card Industrial laundry Industrial distribution Auto servicing
Based on data from Reichheld and Sasser
4. What Makes Loyal Customers More
Profitable?
• Tend to spend more as relationship develops
– customer’s balances may grow
– may consolidate purchases to one supplier
• Cost less to serve
– less need for information and assistance
– make fewer mistakes
• Recommend new customers to firm (act as unpaid
sales people)
• Trust leads to willingness to pay regular prices vs.
shopping for discounts
5. Analyzing Why Customers Are More
Profitable over Time (Fig. 12.2)
Profit from price
premium
Profit from references
Profit from reduced
op. costs
Profit from increased
usage
Base Profit
1 2 3 4 5 6 7
Year Source: Reichheld and Sasser
6. Measuring Customer Equity:
Calculating Life Time Value of Each
Customer
• Value at Acquisition
– revenues (application fee + initial purchase)
– Less costs (marketing +credit check + account set up)
• Annual Value (project for each year of relationship)
– revenues (annual fee + sales + service fees + value of referrals)
– Less costs (account management + cost of sales + write-offs)
• Net Present Value
– Determine anticipated customer relationship lifetime
– Select appropriate discount figure
– Sum anticipated annual values (future profits) at chosen discount
rate
• Customer Equity is total sum of NPVs of all current customers
7. Customer-Firm Relationship
Today’s marketers seek to develop long-term relationships
with customers. Relationship marketing includes:
• Database Marketing: Involves the use of technology by delivering
differentiated service levels to consumers and subsequently tracking
the relationship.
• Interaction Marketing: Usually in B2B context where people and the
social process also add mutually beneficial value.
• Network Marketing: Common in B2B context where companies
commit resources to develop positions in a network of relationships
with the stakeholders and relevant agencies.
8. Types of Relationships with Customers
(Table 12.1)
Type of Relationship--Firm and
Customer
Nature of
Service Delivery
“Membership” No formal relationship
Continuous Cable TV Radio station
Insurance Police
College enrollment Lighthouse
Discrete transactions Subscriber phone Pay phone
Theater subscription Movie theater
Warranty repair Public transport
9. Basic Segmentation Issues:
Building an Appropriate Customer
Portfolio
• Target customers whose needs match firm’s
capabilities
• Focus on value of prospective customers within
each segment, not just numbers
• Avoid targeting customers who might abuse:
– our employees, facilities
– other customers
• Create a mix of segments to reduce risks of
volatility during swings of economic cycles
10. Service-Relevant Segmentation
Variables
• Timing of service use (e.g., by hour, day,
season)
• Level of skill and experience as co-
producer/self-server
• Preferred language in face-to-face contact
• Access to electronic delivery systems (e.g.,
Internet)
• Attitudes toward use of new service
technologies
11. Identifying and Selecting Target
Segments
(Mgt Memo 12.2)
User characteristics
demographics
psychographics
geographic location
benefits sought
User behavior
when, where, how services used
quantity/value of purchases
frequency of use
profitability of relationship
sensitivity to marketing variables
12. Portfolio of Professional
Assignments (Fig. 12.4)
Major, State-of-the-art challenges for the firm’s
principals that give the firm high visibility
Demanding client assignments offering a
“Pacesetters” learning experience for the firm’s most
experienced associates
Significant Projects Routine client projects shared
among principals and associates
“Bread and Butter” Projects
Entry-level tasks for new
associates or for research
assistants & paraprofessionals
Analytical Work on Project Data
13. The Customer Pyramid (Fig. 12.5)
Good Relationship
Customers
Which segment sees high value in
our offer, spends more with us over
Platinum time, costs less to maintain, and
spreads positive word-of-mouth?
Gold
Which segment costs us in time,
Iron
effort and money, yet does not
provide the return we want?
Which segment is difficult to do
Lead business with?
Poor Relationship
Customers
14. How Customers See Relational
Benefits in Service Industries (Research
Insights 12.1)
• Confidence benefits
– less risk of something going wrong, less anxiety
– ability to trust provider
– know what to expect
– get firm’s best service level
• Social benefits
– mutual recognition, known by name
– friendship, enjoyment of social aspects
• Special treatment benefits
15. The Customer Satisfaction-Loyalty
Relationship (Fig. 12.6)
Apostle
100
Zone of Affection
80
Loyalty (Retention)
Near Apostle
60 Zone of Indifference
40 Zone of Defection
20
Terrorist 0
1 2 3 4 5
Very Neither Very
dissatisfied Dissatisfied satisfied Satisfied Satisfied
nor dissatisfied
Satisfaction
16. The Wheel of Loyalty (Fig. 12.7)
3. Reduce 1. Build a
Churn Drivers Foundation
for Loyalty
Conduct churn diagnostic
Segment the market
Address key churn drivers
Be selective in acquisition
Enabled through: Implement complaint
handling & service Use effective tiering of
Frontline staff
recovery Customer service.
Account
managers Increase switching Loyalty Deliver quality
Membership costs service.
programs
CRM
Systems 2. Create Loyalty
Bonds
Build higher level Deepen the
bonds relationship
Give loyalty
rewards
17. Rewarding Value of Use, Not Just
Frequency at British Airways (Best Practice
in Action 12.2)
Dedicated reservations
Reservations assurance
Priority waitlist and standby
Advance notification of delays
exceeding 4 hours
Upgraded check-in
Preferred boarding
Special services assistance
Bonus air miles
Upgrade for two
18. Drivers of Service Switching (Fig. 12.9)
Service Failure / Recovery Value Proposition
Core Service Failure
• Service Mistakes
Pricing
• Billing Errors • High Price
• Service Catastrophe • Price Increases
• Unfair Pricing
Service Encounter Failures • Deceptive Pricing
• Uncaring Service Inconvenience
• Impolite
• Unresponsive Switching • Location/Hours
• Unknowledgeable • Wait for Appointment
• Wait for Service
Response to Service Failure
• Negative Response Competition
• No Response • Found Better Service
• Reluctant Response
Others
Involuntary Switching Ethical Problems
• Customer Moved • Cheat • Unsafe
• Provider Closed • Hard Sell • Conflict of Interest
19. Common CRM Applications (Mgt Memo
12.2)
• Signifies the whole process by which
relationships with customers are built and
maintained.
• CRM as an enabler, offering a “unified customer
interface” and allow firms to better understand
and segment the customers etc. Applications
include:
– Data collection
– Data analysis
– Sales force automation
20. Customer Relationship Strategies
with CRM Systems: Key Questions
• How should our value proposition change to increase customer
loyalty?
• How much customization or one-to-one marketing and service
delivery is appropriate and profitable?
• What is the incremental profit potential of increasing share of wallet
with current customers? How much does this vary by customer tier
and/or segment?
• How much time and resource can we allocate to CRM right now?
• If we believe in CRM, why have we not taken steps in that direction
before? What can we do today to develop customer relationship
without spending on technology?