Customer conflict negatively impacts customer satisfaction and profitability. Research shows that a single negative customer experience can reduce overall satisfaction and that multiple negative experiences create lasting negative perceptions of a company. Additionally, there is a direct link between customer satisfaction and profitability - a 5% increase in customer retention can lead to a 25-55% increase in profits. Each dissatisfied customer also tells an average of 9-10 people about their negative experience, representing lost future business. Even with a 99.5% satisfaction rate, a company with 40,000 annual transactions could face 200 dissatisfied customers and significant lost revenue each year from failure to address conflicts.
This document discusses how customer experience is transforming business-to-business selling due to the rise of social media. It notes that social media allows customers to easily share their experiences, both positive and negative, with large audiences. This means companies must focus on delivering a positive customer experience at every touchpoint to build loyalty and avoid negative feedback being widely shared. The document also discusses how customer experience management programs can help companies improve sales effectiveness by shifting their focus to downstream customer interactions and relationships rather than just product development.
Business And Brand Leadership after a recessionRichard Meyer
85% of leading brands are going to lose their dominant market share position because they followed the wrong path to improve business metrics. Consumer behavior has changed forever.
B2B Marketing: Situational Characteristics as Moderators of the Satisfaction-...Anna Rellama
The study investigated how situational characteristics moderate the relationship between customer satisfaction and loyalty in a business-to-business context. A survey of 425 European businesses found that the satisfaction-loyalty link depends on factors like perceived purchase importance, uncertainty, and switching costs. It also found that the relationship is stronger for existing versus new customers. The results partially supported the hypotheses and provided implications for investing more in satisfying long-term versus new customers.
Blinded By Delight Executive Guidance 2015Erica Hayman
This document discusses how organizations should focus on providing effortless customer service experiences rather than exceptional ones. It argues that exceeding customer expectations does not increase loyalty and is costly, while high customer effort interactions strongly drive disloyalty. The key is making the customer service experience require low effort for the customer. Organizations should track customer effort, provide guided resolutions, solve customers' next problems, engineer low-effort experiences, and empower frontline staff to deliver tailored service.
Accenture 2009 Global Consumer Satisfaction ReportTRG
This document summarizes key findings from Accenture's 2009 global consumer satisfaction survey. The survey found that customer expectations and demands are higher than ever, while many companies are not keeping pace, resulting in increased switching between providers. Younger consumers have even higher expectations and are more likely to switch providers due to poor service. The document recommends that companies differentiate their customer service experiences based on individual customer segments and value to improve satisfaction and performance.
This document discusses the importance of improving customer service experiences for retailers to increase profits. It emphasizes that resolving customer issues quickly across all communication channels, providing a "one face of the brand" experience, can reduce resolution costs by up to 170% compared to slower resolution. Faster resolution, within 24 hours on the first contact, creates a better experience for customers and positively impacts loyalty, word-of-mouth, and future revenue. The proliferation of communication channels poses a challenge but can also break down silos if companies provide seamless support across all channels.
Business to business customer satisfaction surveysDonald Perkins
This document discusses customer satisfaction surveys and how to design them effectively. It notes that survey design, including the questions asked, format, and data collection method can dramatically impact results. Key factors that influence accuracy include question types, design, response rates, and how satisfaction is measured. Done properly, surveys can provide valuable strategic insights, but flaws in design may yield inaccurate representations of customer opinions.
1) The document discusses the importance of aligning a brand's promised experience with what customers actually experience. Research shows around 14% of customers feel their experience is worse than promised.
2) When the experience does not match the promise, customers report feeling misled, not valued, and treated unfairly. This can negatively impact loyalty and increase churn.
3) Aligning the promise and experience builds trust, satisfaction, emotional connection and other key metrics. It also reduces complaints and churn, benefiting the bottom line. The challenge is that customers' perceptions of a brand's promise evolves based on various influences beyond just advertising.
This document discusses how customer experience is transforming business-to-business selling due to the rise of social media. It notes that social media allows customers to easily share their experiences, both positive and negative, with large audiences. This means companies must focus on delivering a positive customer experience at every touchpoint to build loyalty and avoid negative feedback being widely shared. The document also discusses how customer experience management programs can help companies improve sales effectiveness by shifting their focus to downstream customer interactions and relationships rather than just product development.
Business And Brand Leadership after a recessionRichard Meyer
85% of leading brands are going to lose their dominant market share position because they followed the wrong path to improve business metrics. Consumer behavior has changed forever.
B2B Marketing: Situational Characteristics as Moderators of the Satisfaction-...Anna Rellama
The study investigated how situational characteristics moderate the relationship between customer satisfaction and loyalty in a business-to-business context. A survey of 425 European businesses found that the satisfaction-loyalty link depends on factors like perceived purchase importance, uncertainty, and switching costs. It also found that the relationship is stronger for existing versus new customers. The results partially supported the hypotheses and provided implications for investing more in satisfying long-term versus new customers.
Blinded By Delight Executive Guidance 2015Erica Hayman
This document discusses how organizations should focus on providing effortless customer service experiences rather than exceptional ones. It argues that exceeding customer expectations does not increase loyalty and is costly, while high customer effort interactions strongly drive disloyalty. The key is making the customer service experience require low effort for the customer. Organizations should track customer effort, provide guided resolutions, solve customers' next problems, engineer low-effort experiences, and empower frontline staff to deliver tailored service.
Accenture 2009 Global Consumer Satisfaction ReportTRG
This document summarizes key findings from Accenture's 2009 global consumer satisfaction survey. The survey found that customer expectations and demands are higher than ever, while many companies are not keeping pace, resulting in increased switching between providers. Younger consumers have even higher expectations and are more likely to switch providers due to poor service. The document recommends that companies differentiate their customer service experiences based on individual customer segments and value to improve satisfaction and performance.
This document discusses the importance of improving customer service experiences for retailers to increase profits. It emphasizes that resolving customer issues quickly across all communication channels, providing a "one face of the brand" experience, can reduce resolution costs by up to 170% compared to slower resolution. Faster resolution, within 24 hours on the first contact, creates a better experience for customers and positively impacts loyalty, word-of-mouth, and future revenue. The proliferation of communication channels poses a challenge but can also break down silos if companies provide seamless support across all channels.
Business to business customer satisfaction surveysDonald Perkins
This document discusses customer satisfaction surveys and how to design them effectively. It notes that survey design, including the questions asked, format, and data collection method can dramatically impact results. Key factors that influence accuracy include question types, design, response rates, and how satisfaction is measured. Done properly, surveys can provide valuable strategic insights, but flaws in design may yield inaccurate representations of customer opinions.
1) The document discusses the importance of aligning a brand's promised experience with what customers actually experience. Research shows around 14% of customers feel their experience is worse than promised.
2) When the experience does not match the promise, customers report feeling misled, not valued, and treated unfairly. This can negatively impact loyalty and increase churn.
3) Aligning the promise and experience builds trust, satisfaction, emotional connection and other key metrics. It also reduces complaints and churn, benefiting the bottom line. The challenge is that customers' perceptions of a brand's promise evolves based on various influences beyond just advertising.
- High levels of customer dissatisfaction with service quality in restaurants poses a challenge for the industry. One proposed approach is for restaurants to offer service guarantees to demonstrate they will deliver a satisfying dining experience.
- Previous studies have identified key criteria customers use in choosing restaurants, such as food quality, service, price, and atmosphere. However, these studies did not examine whether service guarantees impact customer choice.
- The literature discusses theories on how service guarantees may increase customer satisfaction by improving business focus and standards. However, guarantees may not benefit all restaurants and could reduce perceptions of lower-quality establishments. This study aims to address the gap in understanding how service guarantees influence customer choice.
The document discusses investments in extended supply chains and the importance of properly defining problems before implementing solutions. It provides an example of two companies that were experiencing issues like slow inventory turns and stockouts. Through collaborative root cause analysis, they identified key issues like a lack of consensus planning and a focus on slow-moving products. Working together to resolve these clearly defined problems quickly reduced inventory by 35% and improved their working relationship. The document advocates for openly identifying and addressing real problems in order to build trust and ensure sustainability of improvements.
Relationship marketing practices and customer loyaltyAlexander Decker
This document summarizes a study that explored the relationship between relationship marketing practices and customer loyalty in Ghana's banking industry. The study found that six relationship marketing constructs (trust, competence, conflict handling, commitment, communication, and social and financial bonds) cumulatively had a significant positive effect on customer loyalty. Individually, competence, commitment, and communication were found to be the most significant drivers of customer loyalty. The study recommends that banks focus on relationship marketing strategies to improve customer loyalty and retention.
Customer Insight Findand Keepthe Customers You WantAnil Kumar
This document discusses how companies can improve customer acquisition and retention by developing stronger insights into their customers. While many companies have invested in CRM systems, capabilities for generating and acting on customer insights are still lacking. The document examines how a single customer view can provide a more complete understanding of customers. It also provides examples of companies that have improved marketing, sales, service and operational effectiveness by developing robust customer insight capabilities, including a country's postal service. Overall, the key message is that deep customer understanding is needed to build loyal, profitable customer relationships.
The document provides seven opportunities for companies to out-service their competition and position themselves as leaders when exiting the current recession:
1. Accelerate customer loyalty and profits by focusing on customer retention, lifetime value, and tapping into unrealized customer potential.
2. Enhance the customer experience while also saving money by reducing unsatisfactory experiences and leveraging self-service options.
3. Close gaps between recognizing the importance of customer service, best practices, and potential customer share by increasing relevant investments.
4. Leverage empathetic experiences to strengthen relationships during difficult economic times.
5. Improve the multichannel customer experience across all touchpoints.
6. Use a centralized knowledge
This document discusses applying the customer lifetime value (LTV) concept to casino table gaming customers to improve casino profitability. It presents sample LTV calculations for two table games to demonstrate how targeting marketing resources to increase retention of prime customers and upgrading middle-tier customers could significantly increase long-term profits. Implementing an LTV-based strategy would reduce a casino's reliance on the high-risk "junket" segment.
The document outlines an agenda for a presentation on customer loyalty, discussing what loyalty is, how to set up loyalty programs and examples, trends and challenges in loyalty programs, alternatives to traditional loyalty programs called "Loyalty 2.0", and concludes with a case study. It explores shifting from traditional loyalty programs to more customized experiences that engage customers across channels like social media and mobile using data and technology.
Impact of Gender on Customer Satisfaction for Service Quality: A Case Study o...deshwal852
This study examines the impact of gender on customer satisfaction levels for service quality in hyper stores. A survey was conducted of 70 customers (30 male and 40 female) who shop at hyper stores in South Delhi. The Retail Service Quality Scale was used to measure customer perceptions across 5 dimensions of service quality. Statistical analysis found no significant difference between male and female customers' satisfaction levels across the service quality dimensions. Therefore, the study concludes that gender does not impact customer satisfaction for service quality in hyper stores.
1) A field experiment was conducted at an electronics retail store to examine if giving customers a gift coupon during a sales pitch would increase the likelihood of them purchasing a computer and the amount they would spend.
2) Customers were randomly assigned to one of three conditions that varied the discount amount provided (no discount, 10% off, or 10% + 5% off).
3) The results showed that while the 10% + 5% off condition approached a significant effect on purchase likelihood, overall the reciprocity manipulation did not significantly affect purchase rates or spending amounts. However, some trends in the data suggested reciprocity may have had an effect warranting further research.
1) Superior customer service is critical for high-tech companies to ensure repeat business and loyalty, but many companies overestimate how satisfied their customers are with the service.
2) Research shows that customers who have an extremely high satisfaction experience are nearly 300% more loyal than those with average satisfaction and those with average satisfaction are unlikely to purchase from the provider again.
3) There is a large disparity between how companies perceive their customer service capabilities and customer satisfaction, with customers generally being more angry and seeking alternative providers.
This document discusses the importance of trust in sales and business relationships. It notes that sellers are often stereotyped as untrustworthy but that building trust with customers through honesty and fulfilling promises can lead to higher profits. The document provides facts showing that high levels of trust within companies and between businesses and customers results in better financial and operational performance. It argues that trust is quantifiable and that trust-centered selling focuses on building trusting relationships rather than just making sales.
Verde is a market research consultancy that has been in the industry for over 17 years, with strong experience in numerous therapeutic areas and a client base that includes numerous global pharma clients. Clients hire Verde to solve for specific business issues: Increasing market share, gaining insights into the marketplace for product launch, sales force effectiveness, etc. Our methodologies provide clients with a holistic and granular view of the relationships customer facing employees (reps, reimbursement specialists, etc.) have with key stakeholders, but also an understanding of competitors’ relationships with those same stakeholders so that competitive advantages can be realized.
www.verdegroup.com
CXPA Networking event Jhb May 2016 - Overview of Customer Experience in South...Adre Schreuder
During May 2016 the South African chapter of CXPA hosted a networking event where Prof Adré Schreuder (CEO of Consulta & Founder of SAcsi) was asked to present an industry overview of customer experience in South Africa. The presentation covers a divergent, well grounded view to customer experience concepts, principles, models & aims to dispel some of the most prevailing myths.
The document summarizes a study on the impact of after-sales service on customer satisfaction and loyalty in the automotive industry. It discusses key topics like customer satisfaction, loyalty, after-sales service, product support, and presents data from a survey of 120 automotive after-sales service customers. The results indicate that after-sales service has a positive effect on customer satisfaction and loyalty, and higher after-sales service satisfaction is correlated with greater customer loyalty. Different companies' approach to after-sales service delivery can significantly impact customer satisfaction levels.
Prime Performance 2011 Investment Call Center Satisfaction SurveyJim S Miller
The document summarizes a survey of over 2,000 clients who recently interacted with call centers at major investment firms. Key findings include:
- Overall client satisfaction with call center service was 74%, with a net satisfaction score of 71% across all firms.
- T. Rowe Price had the highest net satisfaction score of 80%, followed by Charles Schwab at 77% and Vanguard at 76%.
- Younger generations, such as Gen Y, reported lower satisfaction levels than older generations such as Boomers and Pre-Boomers. Client satisfaction levels tended to increase with age.
- Satisfaction levels varied somewhat across firms for different age groups, with T. Rowe Price performing best
This document discusses customer service and identifies the seven most common sins of poor customer service according to a customer service ratings organization. The seven sins are: not paying attention to customers, keeping customers waiting too long, lack of product or service knowledge, being pushy and upselling, being unhelpful or uncaring, breaking promises or providing false information, and being rude to customers. The document also identifies the top 10 and worst 10 companies for customer service according to customer surveys. The top companies provide excellent customer service while the worst companies have poor customer experiences and customer satisfaction.
This document provides tips and strategies for improving sales and marketing in today's economy. It discusses the importance of expanding relationships within organizations, creating urgency, and linking return on investment to emotional benefits. It also provides seven tips for improving cold calling, including sustaining calling efforts, making every call count, using call guides instead of scripts, respecting executive assistants, always being relevant and informed, gaining opt-ins, and following up. Finally, it discusses four levels of customer satisfaction and four strategies for cracking into corporate accounts, including using an objection elimination strategy, shouting out your value proposition clearly, leveraging triggering events, and employing a multi-touch campaign strategy.
Are Satisfied Tourists Loyal Tourists? A Case Study in Algarve, PortugalPedro Cravo
We present a reflection about the relation that may exist between consumers’ behaviour, quality and satisfaction with the tourist experience, and loyalty to a destination. Some authors state that satisfaction doesn’t guarantee loyalty, although some studies show that there is a bigger intention to return or recommend a destination in satisfied tourists. After exploring the different ideas of the main authors that have approached the subjects of consumer behaviour, quality of tourist experience and loyalty, as a case study we tried to verify the situation of tourists that visit the Arade municipalities, in Algarve, Portugal. For that, we analysed part of the results from a study carried out by CIDER (Regional Economy Research and Development Centre), an organization based in the University of Algarve. This study aimed to evaluate the degree of satisfaction of tourists with their experiences in these municipalities and their intentions to return or recommend this destination. Although there are some limitations in the results obtained, we can confirm that tourist satisfaction contributes to a higher probability of loyalty to this destination.
Customer satisfaction surveys a practical guide to making them workDung Tri
Here are the key points about telephone surveys:
- Response rates are typically under 50% and decline rapidly as the number of questions increase due to the intrusive nature of phone calls.
- Accuracy is compromised as respondents give little thought to answers after the first few questions. Responses are also prone to interviewer influence.
- The Cassandra Phenomenon undermines the honesty of 70% of respondents who will not provide negative feedback out of fear of consequences when they believe their identity may be known.
- Due to time constraints, telephone surveys are best suited for qualitative data collection with a narrow focus using 5 minutes and 10-12 questions to maintain response rates.
- Telephone surveys are perceived very negatively and are
- High levels of customer dissatisfaction with service quality in restaurants poses a challenge for the industry. One proposed approach is for restaurants to offer service guarantees to demonstrate they will deliver a satisfying dining experience.
- Previous studies have identified key criteria customers use in choosing restaurants, such as food quality, service, price, and atmosphere. However, these studies did not examine whether service guarantees impact customer choice.
- The literature discusses theories on how service guarantees may increase customer satisfaction by improving business focus and standards. However, guarantees may not benefit all restaurants and could reduce perceptions of lower-quality establishments. This study aims to address the gap in understanding how service guarantees influence customer choice.
The document discusses investments in extended supply chains and the importance of properly defining problems before implementing solutions. It provides an example of two companies that were experiencing issues like slow inventory turns and stockouts. Through collaborative root cause analysis, they identified key issues like a lack of consensus planning and a focus on slow-moving products. Working together to resolve these clearly defined problems quickly reduced inventory by 35% and improved their working relationship. The document advocates for openly identifying and addressing real problems in order to build trust and ensure sustainability of improvements.
Relationship marketing practices and customer loyaltyAlexander Decker
This document summarizes a study that explored the relationship between relationship marketing practices and customer loyalty in Ghana's banking industry. The study found that six relationship marketing constructs (trust, competence, conflict handling, commitment, communication, and social and financial bonds) cumulatively had a significant positive effect on customer loyalty. Individually, competence, commitment, and communication were found to be the most significant drivers of customer loyalty. The study recommends that banks focus on relationship marketing strategies to improve customer loyalty and retention.
Customer Insight Findand Keepthe Customers You WantAnil Kumar
This document discusses how companies can improve customer acquisition and retention by developing stronger insights into their customers. While many companies have invested in CRM systems, capabilities for generating and acting on customer insights are still lacking. The document examines how a single customer view can provide a more complete understanding of customers. It also provides examples of companies that have improved marketing, sales, service and operational effectiveness by developing robust customer insight capabilities, including a country's postal service. Overall, the key message is that deep customer understanding is needed to build loyal, profitable customer relationships.
The document provides seven opportunities for companies to out-service their competition and position themselves as leaders when exiting the current recession:
1. Accelerate customer loyalty and profits by focusing on customer retention, lifetime value, and tapping into unrealized customer potential.
2. Enhance the customer experience while also saving money by reducing unsatisfactory experiences and leveraging self-service options.
3. Close gaps between recognizing the importance of customer service, best practices, and potential customer share by increasing relevant investments.
4. Leverage empathetic experiences to strengthen relationships during difficult economic times.
5. Improve the multichannel customer experience across all touchpoints.
6. Use a centralized knowledge
This document discusses applying the customer lifetime value (LTV) concept to casino table gaming customers to improve casino profitability. It presents sample LTV calculations for two table games to demonstrate how targeting marketing resources to increase retention of prime customers and upgrading middle-tier customers could significantly increase long-term profits. Implementing an LTV-based strategy would reduce a casino's reliance on the high-risk "junket" segment.
The document outlines an agenda for a presentation on customer loyalty, discussing what loyalty is, how to set up loyalty programs and examples, trends and challenges in loyalty programs, alternatives to traditional loyalty programs called "Loyalty 2.0", and concludes with a case study. It explores shifting from traditional loyalty programs to more customized experiences that engage customers across channels like social media and mobile using data and technology.
Impact of Gender on Customer Satisfaction for Service Quality: A Case Study o...deshwal852
This study examines the impact of gender on customer satisfaction levels for service quality in hyper stores. A survey was conducted of 70 customers (30 male and 40 female) who shop at hyper stores in South Delhi. The Retail Service Quality Scale was used to measure customer perceptions across 5 dimensions of service quality. Statistical analysis found no significant difference between male and female customers' satisfaction levels across the service quality dimensions. Therefore, the study concludes that gender does not impact customer satisfaction for service quality in hyper stores.
1) A field experiment was conducted at an electronics retail store to examine if giving customers a gift coupon during a sales pitch would increase the likelihood of them purchasing a computer and the amount they would spend.
2) Customers were randomly assigned to one of three conditions that varied the discount amount provided (no discount, 10% off, or 10% + 5% off).
3) The results showed that while the 10% + 5% off condition approached a significant effect on purchase likelihood, overall the reciprocity manipulation did not significantly affect purchase rates or spending amounts. However, some trends in the data suggested reciprocity may have had an effect warranting further research.
1) Superior customer service is critical for high-tech companies to ensure repeat business and loyalty, but many companies overestimate how satisfied their customers are with the service.
2) Research shows that customers who have an extremely high satisfaction experience are nearly 300% more loyal than those with average satisfaction and those with average satisfaction are unlikely to purchase from the provider again.
3) There is a large disparity between how companies perceive their customer service capabilities and customer satisfaction, with customers generally being more angry and seeking alternative providers.
This document discusses the importance of trust in sales and business relationships. It notes that sellers are often stereotyped as untrustworthy but that building trust with customers through honesty and fulfilling promises can lead to higher profits. The document provides facts showing that high levels of trust within companies and between businesses and customers results in better financial and operational performance. It argues that trust is quantifiable and that trust-centered selling focuses on building trusting relationships rather than just making sales.
Verde is a market research consultancy that has been in the industry for over 17 years, with strong experience in numerous therapeutic areas and a client base that includes numerous global pharma clients. Clients hire Verde to solve for specific business issues: Increasing market share, gaining insights into the marketplace for product launch, sales force effectiveness, etc. Our methodologies provide clients with a holistic and granular view of the relationships customer facing employees (reps, reimbursement specialists, etc.) have with key stakeholders, but also an understanding of competitors’ relationships with those same stakeholders so that competitive advantages can be realized.
www.verdegroup.com
CXPA Networking event Jhb May 2016 - Overview of Customer Experience in South...Adre Schreuder
During May 2016 the South African chapter of CXPA hosted a networking event where Prof Adré Schreuder (CEO of Consulta & Founder of SAcsi) was asked to present an industry overview of customer experience in South Africa. The presentation covers a divergent, well grounded view to customer experience concepts, principles, models & aims to dispel some of the most prevailing myths.
The document summarizes a study on the impact of after-sales service on customer satisfaction and loyalty in the automotive industry. It discusses key topics like customer satisfaction, loyalty, after-sales service, product support, and presents data from a survey of 120 automotive after-sales service customers. The results indicate that after-sales service has a positive effect on customer satisfaction and loyalty, and higher after-sales service satisfaction is correlated with greater customer loyalty. Different companies' approach to after-sales service delivery can significantly impact customer satisfaction levels.
Prime Performance 2011 Investment Call Center Satisfaction SurveyJim S Miller
The document summarizes a survey of over 2,000 clients who recently interacted with call centers at major investment firms. Key findings include:
- Overall client satisfaction with call center service was 74%, with a net satisfaction score of 71% across all firms.
- T. Rowe Price had the highest net satisfaction score of 80%, followed by Charles Schwab at 77% and Vanguard at 76%.
- Younger generations, such as Gen Y, reported lower satisfaction levels than older generations such as Boomers and Pre-Boomers. Client satisfaction levels tended to increase with age.
- Satisfaction levels varied somewhat across firms for different age groups, with T. Rowe Price performing best
This document discusses customer service and identifies the seven most common sins of poor customer service according to a customer service ratings organization. The seven sins are: not paying attention to customers, keeping customers waiting too long, lack of product or service knowledge, being pushy and upselling, being unhelpful or uncaring, breaking promises or providing false information, and being rude to customers. The document also identifies the top 10 and worst 10 companies for customer service according to customer surveys. The top companies provide excellent customer service while the worst companies have poor customer experiences and customer satisfaction.
This document provides tips and strategies for improving sales and marketing in today's economy. It discusses the importance of expanding relationships within organizations, creating urgency, and linking return on investment to emotional benefits. It also provides seven tips for improving cold calling, including sustaining calling efforts, making every call count, using call guides instead of scripts, respecting executive assistants, always being relevant and informed, gaining opt-ins, and following up. Finally, it discusses four levels of customer satisfaction and four strategies for cracking into corporate accounts, including using an objection elimination strategy, shouting out your value proposition clearly, leveraging triggering events, and employing a multi-touch campaign strategy.
Are Satisfied Tourists Loyal Tourists? A Case Study in Algarve, PortugalPedro Cravo
We present a reflection about the relation that may exist between consumers’ behaviour, quality and satisfaction with the tourist experience, and loyalty to a destination. Some authors state that satisfaction doesn’t guarantee loyalty, although some studies show that there is a bigger intention to return or recommend a destination in satisfied tourists. After exploring the different ideas of the main authors that have approached the subjects of consumer behaviour, quality of tourist experience and loyalty, as a case study we tried to verify the situation of tourists that visit the Arade municipalities, in Algarve, Portugal. For that, we analysed part of the results from a study carried out by CIDER (Regional Economy Research and Development Centre), an organization based in the University of Algarve. This study aimed to evaluate the degree of satisfaction of tourists with their experiences in these municipalities and their intentions to return or recommend this destination. Although there are some limitations in the results obtained, we can confirm that tourist satisfaction contributes to a higher probability of loyalty to this destination.
Customer satisfaction surveys a practical guide to making them workDung Tri
Here are the key points about telephone surveys:
- Response rates are typically under 50% and decline rapidly as the number of questions increase due to the intrusive nature of phone calls.
- Accuracy is compromised as respondents give little thought to answers after the first few questions. Responses are also prone to interviewer influence.
- The Cassandra Phenomenon undermines the honesty of 70% of respondents who will not provide negative feedback out of fear of consequences when they believe their identity may be known.
- Due to time constraints, telephone surveys are best suited for qualitative data collection with a narrow focus using 5 minutes and 10-12 questions to maintain response rates.
- Telephone surveys are perceived very negatively and are
This document discusses two approaches for demonstrating the financial impact of customer satisfaction, value, and loyalty: assumptive linkage and direct linkage. Assumptive linkage makes estimates and assumptions to project the financial impact, but relies heavily on assumptions and behavioral intentions rather than actual outcomes. Direct linkage focuses on establishing relationships between customer metrics and actual financial or market performance results through surveys and data analysis. The article examines benefits and limitations of each approach, and emphasizes the importance of selecting the right customer and financial metrics to measure, ensuring relevant integrated data is available, and choosing an appropriate unit of analysis for linking the data.
An introduction to Customer Experience ManagementOnno Romijn
Customer experience management (CEM) is a strategic process that manages a customer's entire experience with a company across all touchpoints. CEM focuses on consistently meeting both functional and emotional customer needs and expectations. While related concepts like customer relationship management and customer satisfaction are important, CEM takes a more holistic view. Implementing CEM can help companies differentiate their offerings, improve reputation, reduce costs, drive employee satisfaction, and increase customer retention and acquisition rates. However, many companies only make superficial changes and fail to fully implement CEM. Successful CEM requires identifying key experience drivers, considering the customer experience in all decisions, and coordinating efforts across departments.
A detailed investigation to validate the popular marketing concept of custome...Charm Rammandala
Understanding customers expectation is one of the fundamental factor’s to retain in the business, whether the business is a service provider or a manufacturer. Simply because if a business fails to understand the customer needs and satisfy the expectations, its running the risk of losing customers instead of gaining. Unsatisfied customer is a liability for any business as it will bring numerous negative outcomes. Apart from losing the business of affected customers, the bad reviews, blog posts and word of mouth will put off many more potential customers.
The notion of customer is always right is a century old concept and it’s becoming more relevant to the current market conditions than ever.
The purpose of this essay is to take an in-depth look in to the concept of customer is always right and evaluate how relevant said concept to the modern market conditions
Slide share The Case for Customer Relationship Excellence - European Qualit...Dr. Ted Marra
Ted Marra argues that many companies focus too much on cost reduction and not enough on customer relationships during economic downturns. He recommends focusing on revenue growth by prioritizing customers and delivering value rather than constantly pursuing lower costs. While cost reduction approaches are tempting, they can weaken companies in the long run. True competitiveness comes from adding value for customers through people, technology, processes, and support rather than just lowering prices.
002 a paper_on_customer_loyalty_white_paper_imc_researchimcResearch
This document discusses the importance of customer satisfaction and loyalty for businesses. It makes three key points:
1. Customer satisfaction alone does not guarantee loyalty, as satisfied customers may still be persuaded to switch suppliers. True loyalty requires satisfaction scores of 9/10 on important issues and an emotional connection to the brand.
2. Many customers remain with suppliers out of inertia rather than true loyalty. Small issues over time can undermine satisfaction without prompting a change, so loyalty requires more than the absence of problems.
3. Loyalty is driven by soft factors like quality, satisfaction, image and little details of the customer experience rather than just price and product parity. Extra efforts that differentiate the customer experience and engagement build an emotional
The case of missing customer 99.06.outside inSergiu Rusu
The document discusses rethinking business from the customer's perspective. It summarizes how Sprint improved customer experience by addressing small issues like dropped calls, which reduced customer complaints and costs. Research shows companies with better customer experiences significantly outperform competitors financially. However, customer experience problems are difficult to solve because they are rooted across a company's policies, partnerships and processes. Fixing billing issues at Charter by simplifying legal disclaimers improved the customer experience ecosystem.
This document discusses how improving the customer experience is critical for insurance companies to drive growth. It states that customer experience, especially during the claims process, has become the new battleground for attracting and retaining customers. The document recommends that insurance companies implement "next practices" like automated claims processing using capture technologies to streamline the claims process and enhance the customer experience. This improves customer satisfaction and loyalty, reduces churn, and boosts the bottom line through increased revenue and customer retention.
Amid a drastically changed industry landscape characterized by choosier customers and tightening regulations, insurance companies are scrambling to sustain growth and profits.
Stop Trying to Delight Your Customers.pdfIQbal KHan
The notion that companies must go above and beyond in their customer service activities is so entrenched that managers rarely examine it. But a study of more than 75,000 people interacting with contact-center representatives or using self-service channels found that over-the-top efforts make little difference: All customers really want is a simple, quick solution to their problem.
The Corporate Executive Board’s Dixon and colleagues describe five loyalty-building tactics that every company should adopt: Reduce the need for repeat calls by anticipating and dealing with related downstream issues; arm reps to address the emotional side of customer interactions; minimize the need for customers to switch service channels; elicit and use feedback from disgruntled or struggling customers; and focus on problem solving, not speed.
The authors also introduce the Customer Effort Score and show that it is a better predictor of loyalty than customer satisfaction measures or the Net Promoter Score. And they make available to readers a related diagnostic tool, the Customer Effort Audit. They conclude that we are reaching a tipping point that may presage the end of the telephone as the main channel for service interactions—and that managers therefore have an opportunity to rebuild their service organizations and put reducing customer effort firmly at the core, where it belongs
This document contains two questions related to customer relationship marketing and sales management.
Question 1 discusses evaluating the comment that "the ultimate accountability of marketing [and sales] activities lies in their contribution to the life-time value that the customer base represents." It also identifies limitations a sales manager may face developing a strategy from transactional to relationship-based.
Question 2 discusses the extent to which sufficient customer data can be collected to inform future marketing decisions and product alignment. It provides examples of how organizations can analyze customer data to improve customer service, marketing strategy, segmentation, and cost savings.
Le lien entre la mesure de l’effort client et les indicateurs globaux, que sont notamment l’intention de continuer à travailler avec l’entreprise et la recommandation de celle-ci, n’est plus à prouver. Globalement, le principe est que moins le client a d’effort à fournir lors d’une interaction, plus il recommandera et sera fidèle à l’entreprise. Cela est tout particulièrement vrai dans un contexte/situation de réclamations ou d’incidents.
The document discusses how customer experience is transforming business-to-business sales due to the rise of social media. It argues that companies must shift their focus to downstream customer interactions in order to build loyalty and competitive advantage. A good customer experience is crucial as negative feedback on social media can now be easily shared with large audiences, while positive experiences help build trust and advocacy.
This document summarizes a research study on the effectiveness of relationship marketing strategies used by department stores. The study found that customers perceive relationships exist between themselves and department stores due to positive interactions with staff and value-driven relationship marketing strategies. Customer satisfaction is key, as satisfied customers are more likely to become loyal and develop relationships with specific stores. The challenge for department stores is to identify drivers of satisfaction to build positive customer relationships.
The document discusses five keys to future-proofing customer service success: 1) Empathy is important for customer satisfaction and retention. 2) Frequent and open communication helps resolve issues and anticipate customer needs. 3) Using multiple platforms meets customers where they are and uses automation appropriately. 4) Ensuring a good fit between support solutions and agents creates loyalty. 5) Technology and automation improve the customer experience when handled simply while leaving complex issues to agents. The keys emphasize adapting customer service to meet changing customer expectations and using tools to enhance empathy and resolution.
Good performance alone cannot crack the complex code that governs the strength of your customer relationships and the sustainability of your business. As competition intensifies, it is essential to get smarter about the experiences that matter, and deliver return on the bottom line.
Good performance alone cannot crack the complex code that governs the strength of your customer relationships and the sustainability of your business. As competition intensifies, it is essential to get smarter about the experiences that matter, and deliver return on the bottom line.
1. THE IMPORTANCE OF REDUCING AND RESOLVING
CUSTOMER CONFLICT
by Shaun Belding
It always seems to be the popular question with people charged with serving customers – how do you deal with
difficult customers or situations? In today’s fast-paced, high stress environment, conflict with customers may
be inevitable. Customer expectations of quality, speed of delivery and price competitiveness have become so
high, it has become virtually impossible to please everyone. The big question for business leaders, though, is, is
there really a benefit in trying to reduce customer conflict, or training people how to deal with it more
effectively? Is it worth the investment of time and financial resources, or is the best strategy to simply accept
that there will always be some unhappy customers, and to learn to live with it?
There are really two questions that have to be answered. The first is, to what degree does customer conflict
actually impact overall customer satisfaction, if at all? The second is, is there really support to the common
belief that a link exists between customer satisfaction and profitability? Most everyone intuits this to be the
case. At some “the good guys always win in the end” level we want it to be true. But does it really make a
difference? The available research indicates that, not only does customer conflict negatively impact customer
satisfaction, and that there is a direct link to profitability, but that failure to address negative customer service
experiences can have profound consequences.
Does Conflict with Customers Affect Overall Customer Satisfaction?
As to the first question about the degree to which customer conflict impacts overall customer satisfaction, there
is growing evidence to suggest that customer conflict actually has a far greater impact than most people realize.
As it turns out, not only will people tend to make negative assumptions about an entire organization based on a
single, isolated negative occurrence, but that multiple negative occurrences create virtually unbreakable
negative predispositions toward the company that can become devastating over a period of time.
In their study of Frequency of Negative Critical Incidents and Satisfaction with Public Transport Services,
Margareta Friman and Tommy Gärling proved that all it took was one, single Negative Critical Incident (NCI)
to reduce overall satisfaction with the entire public transport system. Robert Greene, in 1984 (“Incidental
Learning of Event Frequency,”); and John Jonides and Moshe Navah-Benjamin in 1987 (“Estimating
Frequency of Occurrence”), confirmed that multiple negative events became stored in memory; and in 1986,
Reid Hastie and Bernadette Park linked this frequency to people’s judgments and perspectives. In a following
1999 study, Friman, Edvardsson, and Gärling confirmed that the total frequency of the NCIs dramatically
affected the ratings of overall satisfaction. They also determined that different types of NCIs created different
impacts. The way in which someone was treated by an employee, for example, ranked amongst the highest in
negative impact. Reliability of service was similarly high in negative impact.
In 1990, a study of 700 critical incidents (Bitner, et al., "The Service Encounter: Diagnosing Favorable and
Unfavorable Incidents") found that it is the employees’ responses to negative incidents, not the incidents
themselves, that most often leads to dissatisfaction.
These findings support the concept that each single conflict within an organization can have far-reaching
consequences in long-term customer satisfaction, and that the human element – the way an employee interacts
with a customer – plays the dominant role. They also strongly support that service recovery skills and
procedures are critical in maintaining customer satisfaction.
2. THE IMPORTANCE OF REDUCING AND RESOLVING CUSTOMER CONFLICT pg. 2/3
The Importance of Reducing and Customer Conflict. Shaun Belding. July, 2004
How much of a Role does Customer Satisfaction Play in Profitability?
An immense amount of research has been conducted linking customer satisfaction to profitability. Vic Hunter,
author of Business to Business Marketing, has identified that it can be 30 to 40 times more expensive to acquire
new customers than it is to manage existing customers. He points out that in some industries a 5% increase in
overall customer retention equates to a 25% to 55% increase in the profitability of a business . This is
supported by a study by Reichheld and Kenny in 1990 that actually demonstrates that a five-point improvement
in customer retention can lead to an increase in profits from 25% to 80%. Gerard King and Gus Geursen, (“A
System Dynamics Investigation Of The Linkage Between Customer Satisfaction And Firm Profitability”)
demonstrated the clear link between customer satisfaction and profitability, and showed that customer
satisfaction is influenced by a number of factors. One of the most prevalent of these factors has to do with the
degree to which customer expectations are met. A company which is performing well, they point out, may still
have unsatisfied customers if a marketing campaign has over-promised.
The link between conflict resolution, service recovery and profitability is both clear and predictable. Using
some of the statistical data, following is a model that illustrates the potential cost of a lost customer due to
service failure:
Calculating The Potential Cost Of A Lost Customer Due To Service Failure
There are two factors involved in calculating the potential cost of a lost customer due to service failure:
a. The average Customer Lifetime Value (CLV)
b. The ripple effect
Calculating a CLV
The Customer Lifetime Value is the average amount one customer might be expected to spend
with one business over a lifetime. It involves three components:
i. The average dollar amount per transaction
ii. The average number of transactions per year
iii. The average number of years a customer remains in a business’s primary target group
Let’s use a toy store as an example. Assume an average dollar amount per transaction of $13.00,
and an average of 22 transactions per year per customer. (Kids Corp., 1986 – 1991). The
average annual value of a customer, therefore, is $13 x 22 = $286.00.
Now assume that the average customer remains in the toy store’s primary target group for 12
years. The Customer Lifetime Value, therefore, is the annual value, ($286.00), multiplied by 12
years, equaling $3,432.00
Calculating the Ripple Effect
The Ripple Effect is the impact of a service failure beyond the initial incident. David Collier in
1995 (“Modeling the relationships between process quality errors and overall service process
performance”), showed that the average customer experiencing a service failure told nine-to-ten
people about the experience, where they would tell only half as many about service which
exceeded their expectations. Subsequent research has demonstrated the impact of this - that
3. THE IMPORTANCE OF REDUCING AND RESOLVING CUSTOMER CONFLICT pg. 3/3
The Importance of Reducing and Customer Conflict. Shaun Belding. July, 2004
people will tend to avoid businesses they have heard negative things about, and patronize
businesses they have heard positive things about.
Now, assume the worst case scenario: that a customer has a negative experience, that they tell
ten people about their experience, that all ten people are also in the primary target group, and that
all ten choose to avoid the toy store in the future. The CLV is now multiplied by 11 (the initial
customer, plus the ten others). With the Ripple Effect, therefore, the potential cost of a single
service failure over a twelve year period in a toy store, therefore, is as high as $37,752.00.
It is unlikely, of course, that every negative incident, or even the majority of negative incidents, will
result in the worst case scenario. Having said this, failure to address them, or minimize the number of
negative incidents has significant consequences. A toy store for example, might have a conservative
40,000 transactions a year. Even if the store had an unlikely 99.5% service satisfaction rate, that still
represents 200 service failures per year. And even if we choose to calculate the actual cost of a single
unrecovered service failure as only a small fraction of the worst case scenario, the financial
consequences are profound. It is easy to see how strategies and skills for reducing service failures and
recovering service failures are equally important to those designed for proactively building sales. The
analogy is that of bailing water out of a leaking boat. Faster bailing can improve conditions, but faster
bailing plus filling in some of the holes will have a much more positive effect.
Calculating The Potential Business Loss Represented by Customer Complaint
Part of the challenge of management is that only 5 to 10 percent of dissatisfied customers actually take
the time to complain following a service failure (Tax and Brown, 1998). This makes it difficult to assess
customer satisfaction for a business, when 90 to 95 percent of service failures remain unreported.
Knowing this, however, can provide an indication as to the potential business loss that the complaint
represents.
What Tax & Brown’s findings demonstrate is that each complaint typically represents 10-20
unrecovered service failures. And, as discussed, each of those unrecovered service failures in a toy store
can represent as much as $37,752.00 in lost revenue over twelve years. A manager of a toy store who
receives a complaint, therefore, can assume that a single complaint has the potential of representing
10-20 negative incidents, or $377,520.00 to $755,040 in lost revenue over a twelve year period. Again,
even at a small fraction of the worst case scenario, the financial implications of a complaint are
profound. This dramatically illustrates the importance of responding to the red flags raised when a
customer takes the time to bring a service failure to light.
While it may be true that, even in the best of companies, a certain amount of service failure is to be expected,
there are clear financial consequences to not making efforts to minimizing them. The models above make it
easy to understand how companies with high levels of service failures seem to perish so quickly. It is also easy
to understand why companies which focus on minimizing negative incidents, and train people to effectively
recover from the service failures they do have, can prosper even in the most competitive of industries.
Shaun Belding is president of Belding Skills Development Corporation, and author of Winning with the Customer from Hell
– a survival guide, Winning with the Employee from Hell – a guide to coaching and motivation, and Winning with the Boss
from Hell – a guide to life in the trenches.