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Customer Service: Gain and Retain Customers- Bowman, 2016
The document discusses the importance of customer service in retaining customers and enhancing satisfaction, highlighting key issues customers face, such as low-quality goods and poor service. It emphasizes the statistics surrounding customer behavior, including the high costs of acquiring new customers versus retaining existing ones and the necessity for timely, effective responses to complaints. Additionally, the document outlines the necessary mindset and practices for delivering quality service, as well as the impact of service on business reputation and customer loyalty.
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Customer Service: Gain and Retain Customers- Bowman, 2016
- 1. Glenn Muske Rural andAgribusiness Enterprise Development Specialist Glenn.Muske@ndsu.edu October, 2016 Service: A Tool for Gaining and Retaining Customers Bowman, ND
- 2. 5 Things CustomersMost Often Discuss with Friends, Relatives and Just About Anyone 5. Low quality of goods and services 4. Price 3. Hidden information and costs 2. Inaccessibility 1. Service including: • Not listening • Unresolved issues • Rude staff or no staff • Not keeping promises • Poor signage • Messy store
- 3. Traditional Marketing OnlineMarketing PR Paid Promotion Distribution Channels Customer Service Visual Mix One-on-one & Networking Word-of- mouth & Reviews Reputation YOU Marketing
- 4. Customer Service =Customer Satisfaction •Gaining the Customer • Good service gets talked about – Your customer is your ambassador • Good service will bring the first-timer back to see if this was a one-time event or if it continues. • The “WOW” experience good but fades if only a one-time event • Mark Twain – “Always do right! This will gratify some people and astonish the rest.” •Retaining the Customer – Why? • 80/20 rule • Expense • $20-$50 to gain a new customer • $1-$3 to retain an existing customer • Ability to learn more about them • Make new ambassadors
- 5. Write downan example of a missed customer service experience you have experienced. Write down an example of one great customer service experience.
- 6. Steps in theConsumer Buying Behavior Need recognition/Problem identification Information Search Alternative Evaluation Purchase Decision Post-Purchase Behavior
- 7. Consumer Buying BehaviorSteps Need recognition/Problem identification Information Search Alternative Evaluation Purchase Decision Post-Purchase Behavior
- 8. Customer Service includes: •After purchase support • Warranty/Guarantee • Refunds • Tips and ideas how to use • Product updates • Staying in touch • Delivery/pick-up/disposal/wrapping • ?????????
- 9. Details Do Matter! As aconsumer, do you pay attention to details? What are some examples?
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- 11. Service Statistics • Only4% of customers ever complain. • For every complaint there are 26 other customers with unresolved complaints • Six have serious problems. • A dissatisfied customer will tell up to 10 people. Approximately 13% will tell up to 20 people. (And these numbers were pre-Internet)
- 12. Service Statistics • Happycustomers will tell between 3 and 5 people about their positive experiences. • Costs 5-6 times more to attract customers than to keep old ones. • 89% of consumers will go to a competitor following a poor customer experience • 75% of customers who leave cite “rude staff.” And 50 % indicate a lack of a timely response
- 13. Act fast! 82 to95 percent of dissatisfied customers will come back if a problem is resolved quickly and sincerely. 95 percent will come back if a problem is solved on the spot.
- 14. Service and SocialMedia • Nearly 50% of people expect a response in 60 minutes • 32% expect a response in 30 minutes • Response expected 24/7 • The possible audience is immense for failure • United Airlines and broken guitar – 12 million views • https://www.youtube.com/watch?v=5YGc4zOqozo&feature=youtu.be • 22% will post a positive comment when they get a positive response • It can happen immediately
- 15. Why Customers StopDoing Business • 1% Die • 3% Move away • 5% Other reasons • 9% Competition • 14% Don’t like the product or service • 68% Indifferent attitude of sales people About 95% of the customers that quit will not tell you when or why they quit, they just leave.
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- 17. "Attitude precedes service.Your positive mental attitude is the basis for the way you act and react to people. – Jeffrey Gitomer
- 18. Examples of “Service”Found in Mission Statements: “We are committed to helping people identify and meet their needs by offering quality services in a caring, professional manner, providing a profitable outcome for everyone.” - Bank “Satisfy the customer, satisfy the customer, satisfy the customer.” ---Henry Ford “Have it your way.” ---Burger King
- 19. Is 99.9% goodenough? • 5,516,200 cases of flat soft drinks • The IRS losing 2 million documents • 811,000 faulty rolls of film • 12 babies given to wrong parents – each day • 1,312 calls per second misplaced
- 20. Face to Face 55percent 38 percent 7 percent 100 percent Body language Tone Words
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- 22. Building a Customer-serviceFocus • Build the type of service response that you like to get • You can’t always be there. Give people: • Training • Flexibility • Responsibility and authority • Your support (Miracle on 34th St - https://www.youtube.com/watch?v=lKfBUUhFueI )
- 23. Building a Customer-serviceFocus • The phone – Do you get a real person? How quickly? Does that person listen? • Your website – Is your contact information easy to find? Do you clearly outline how a person should file a complaint?
- 24. How do Ilearn more? LISTEN!!!! Barriers • Listening with “half an ear” • Acting as the judge and jury • Tuning in and tuning out • Little empathy • Pre-judge • Turning off ideas you don’t agree with • Jumping to conclusions
- 25. Reinforce the: 5 Keysto Quality Service • Reliability • Live up to promises, dependable • Assurance • Offer sense of confidence in you & your skills by answering questions & offering product knowledge • Look at the tangibles • Seen & felt, equipment, staff, physical facility • Empathy • Responsiveness – listen, provide a fair solution, & do it quickly
- 26. Understand Service Gaps– Expectation vs Reality • knowledge: • retailers’ perception of customer’s expectations • standards: • retailers’ standards that do not match customer expectations • delivery: • difference between standards and reality • communication: • promises in promotional campaign vs. reality
- 27. Caution! Service must increase sales enoughto offset costs
- 28. The Moment ofTruth The point at which your actions cause your customer to form an impression about you and your business.
- 29. There are NOsecond first impressions!
- 30. How do youknow how you are doing? •Ask •Listen •Survey •Pet Peeve – Don’t tell me what to say •Check with others (Secret Shopper)
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- 32. Welcome to OurTown “How may I help you?”
- 33. What you willgain? • An understanding of why tourism is important • Knowledge about the “secrets of service” • Skills in giving directions • Skills in answering visitor questions • Knowledge about local attractions, events and resources • An appreciation of the front-line professional’s role
- 34. REMEMBER: How service impactSyour business? A happy customer is: • Satisfied • Stays longer • Spends more money • Tells family and friends
- 35. Glenn Muske Rural andAgribusiness Enterprise Development Specialist NDSU Extension Center for Community Vitality Glenn.Muske@ndsu.edu Questions?? Resources: http://www.ag.ndsu.edu/smallbusiness http://powerofbusiness.net http://www.extension.org/entrepreneurship