Service profit chain
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The document discusses the service-profit chain and the importance of internal service quality, customer loyalty, and exceptional service. It states that internal service quality leads to employee satisfaction, which drives customer service. Maximizing customer lifetime value through loyalty is key to profitability, as loyal customers result in retention, repeat sales, and referrals. The difference between good and exceptional service determines whether a customer might or will definitely purchase again. Building loyalty requires delivering superior quality and service at all touchpoints from management to frontline staff by gaining customer feedback and implementing quick improvements.
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The document outlines Parasuraman, Berry, and Zeithaml's Gaps Model of Service Quality which identifies gaps between customer expectations and perceptions that can occur within an organization, and it discusses their SERVQUAL framework for measuring service quality across five dimensions: tangibles, reliability, responsiveness, assurance, and empathy. The Gaps Model is used to show how four internal gaps within a company relating to understanding customer expectations, service design, service delivery, and communications can contribute to an overall gap between customer expectations and perceptions of service quality.
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This document discusses various perspectives on defining and measuring service quality. It begins by outlining four common definitions of quality: product-based, user-based, manufacturing-based, and value-based. It then describes two categories of service quality - internal and external quality. Several frameworks for measuring dimensions of service quality are presented, including the eight dimensions identified by David Garvin and the SERVQUAL model developed by Parasuraman, Zeithmal and Berry. The document also discusses tools for collecting customer feedback and analyzing service quality problems.
33.service profit chain
The document discusses the service profit chain framework, which links customer loyalty and satisfaction to employee satisfaction, productivity and retention, and ultimately to profitability. It notes that research has found a direct link between superior customer experiences, loyalty and financial performance, and that a 5% improvement in customer loyalty can result in a 25-85% improvement in profits. The framework emphasizes that internal service quality, including factors like workplace design and employee training, development and rewards, drives employee satisfaction and loyalty, which then drives customer value and satisfaction.
Service quality
This document discusses service quality and its key aspects. It defines service quality as a customer's judgment of the overall excellence of a service in relation to their expectations. It outlines five dimensions of service quality - reliability, responsiveness, assurance, empathy and tangibles. It also discusses the service quality gap model, which identifies five gaps between customer expectations and perceptions: marketing research, design, conformance, communication, and expectations-perceptions. The document provides solutions to minimize these gaps and improve overall service quality.
Gap model
The Gaps Model of Service Quality identifies 4 gaps that can lead to unsatisfactory service quality:
1) The customer gap is the difference between customer expectations and perceptions of service.
2) Provider gap 1 occurs when providers do not understand customer expectations.
3) Provider gap 2 happens when the wrong service designs and standards are selected.
4) Provider gap 3 is the failure to meet intended service standards. Provider gap 4 is the disparity between delivered service and what was promised to customers.
service quality-models-ppt
This document discusses models of service quality including five dimensions of service quality: reliability, responsiveness, assurance, empathy, and tangibles. It describes seven service quality gaps that can occur between customer expectations and the services delivered. It provides prescriptions for closing these gaps such as learning customer expectations and ensuring service performance matches quality standards. The document also discusses hard and soft measures of service quality, return on quality, productivity in a service context, and measuring service productivity focusing on outcomes rather than just outputs.
Employees role in service delivery
This document discusses the critical role of service employees in delivering quality service. It makes three key points:
1. Service employees are the face of the organization and directly interact with customers, so developing a strong service culture where customer service is a priority is important. This involves training employees on service and rewarding good customer service.
2. Service employees play a boundary spanning role between the organization and customers and must be able to handle customer needs, conflicts, and provide quality service.
3. There are various strategies for delivering quality service through employees, such as hiring the right people, training and empowering employees, promoting teamwork, and providing support systems to allow employees to serve customers effectively.
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Gap model
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The document discusses the service profit chain framework, which links customer loyalty and satisfaction to employee satisfaction, productivity and retention, and ultimately to profitability. It notes that research has found a direct link between superior customer experiences, loyalty and financial performance, and that a 5% improvement in customer loyalty can result in a 25-85% improvement in profits. The framework emphasizes that internal service quality, including factors like workplace design and employee training, development and rewards, drives employee satisfaction and loyalty, which then drives customer value and satisfaction.
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This document discusses service quality and its key aspects. It defines service quality as a customer's judgment of the overall excellence of a service in relation to their expectations. It outlines five dimensions of service quality - reliability, responsiveness, assurance, empathy and tangibles. It also discusses the service quality gap model, which identifies five gaps between customer expectations and perceptions: marketing research, design, conformance, communication, and expectations-perceptions. The document provides solutions to minimize these gaps and improve overall service quality.
Gap model
The Gaps Model of Service Quality identifies 4 gaps that can lead to unsatisfactory service quality:
1) The customer gap is the difference between customer expectations and perceptions of service.
2) Provider gap 1 occurs when providers do not understand customer expectations.
3) Provider gap 2 happens when the wrong service designs and standards are selected.
4) Provider gap 3 is the failure to meet intended service standards. Provider gap 4 is the disparity between delivered service and what was promised to customers.
service quality-models-ppt
This document discusses models of service quality including five dimensions of service quality: reliability, responsiveness, assurance, empathy, and tangibles. It describes seven service quality gaps that can occur between customer expectations and the services delivered. It provides prescriptions for closing these gaps such as learning customer expectations and ensuring service performance matches quality standards. The document also discusses hard and soft measures of service quality, return on quality, productivity in a service context, and measuring service productivity focusing on outcomes rather than just outputs.
Employees role in service delivery
This document discusses the critical role of service employees in delivering quality service. It makes three key points:
1. Service employees are the face of the organization and directly interact with customers, so developing a strong service culture where customer service is a priority is important. This involves training employees on service and rewarding good customer service.
2. Service employees play a boundary spanning role between the organization and customers and must be able to handle customer needs, conflicts, and provide quality service.
3. There are various strategies for delivering quality service through employees, such as hiring the right people, training and empowering employees, promoting teamwork, and providing support systems to allow employees to serve customers effectively.
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This document discusses customer behavior in service encounters. It outlines 4 categories of services - people processing, possession processing, mental stimulus processing, and information processing. It also describes the 3 stages of a service encounter: pre-purchase, the service encounter itself, and post-purchase. Finally, it discusses customer service expectations and how customers seek to reduce perceived risks when evaluating service options.
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The document discusses service quality and encounter management. It describes the Gap Model of Service Quality, which identifies four gaps that can occur during service delivery: 1) between customer expectations and management perceptions, 2) between customer expectations and service design, 3) between service design and service delivery, and 4) between service delivery and external communications. It also discusses strategies to minimize each gap. The document then covers the SERVQUAL instrument for measuring service quality and the uses of SERVQUAL surveys. Finally, it defines service encounters, explores the importance of encounters, and categorizes types of encounters.
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Service quality is critical for service companies. Customers perceive quality through their consumption experience and by comparing expectations. There are two dimensions of quality - technical (the service itself) and functional (how it is delivered). Expectations are formed by market communications, image, word of mouth, and customer needs. Perceived quality results from comparing expectations to the actual experience. Several researchers have identified key determinants of perceived quality, including reliability, responsiveness, assurance, and empathy. Managing quality requires coordinated efforts between management, employees, and customers.
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This document discusses improving service quality and productivity. It defines service quality from different perspectives and identifies key factors that influence customer expectations. The five components of service quality are discussed as well as SERVQUAL, a framework for measuring service quality gaps. Tools for measuring and addressing service quality problems are presented, including the gaps model, blueprinting, and cause-and-effect charts. Different types of demand and roles of employees that can influence customers are also summarized.
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The document discusses service quality and encounter management. It describes the Gap Model of Service Quality, which identifies four gaps that can occur during service delivery: 1) between customer expectations and management perceptions, 2) between customer expectations and service design, 3) between service design and service delivery, and 4) between service delivery and external communications. It also discusses strategies to minimize each gap. The document then covers the SERVQUAL instrument for measuring service quality and the uses of SERVQUAL surveys. Finally, it defines service encounters, explores the importance of encounters, and categorizes types of encounters.
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The marketing mix for services is extended beyond the traditional 4Ps of product, price, place and promotion. It also includes people, process and physical evidence. The service marketing mix considers how the organization designs the service, delivers it through processes, and provides tangible evidence to customers through physical surroundings and materials. It also focuses on the important role of employees and customers in service delivery.
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Service quality is critical for service companies. Customers perceive quality through their consumption experience and by comparing expectations. There are two dimensions of quality - technical (the service itself) and functional (how it is delivered). Expectations are formed by market communications, image, word of mouth, and customer needs. Perceived quality results from comparing expectations to the actual experience. Several researchers have identified key determinants of perceived quality, including reliability, responsiveness, assurance, and empathy. Managing quality requires coordinated efforts between management, employees, and customers.
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This document discusses pricing strategies for services. It outlines three key differences in how consumers understand service prices compared to product prices. Namely, service prices are more difficult for customers to know due to variability, individual needs, and non-visible nature. The role of non-monetary costs like time and uncertainty are also examined. Various approaches to determining service prices are then reviewed, including cost-based pricing, competition-based pricing, and demand-based pricing oriented around customer perceptions of value. Specific pricing techniques within each approach are defined.
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Creating customer value is the driving force behind a company's goals, and identifying the appropriate customer value measure is not an easy task. Adding services, relationships, and experiences differentiates company offerings in the market. No real customer value exists without a close relationship with customers to understand their needs and provide sophisticated customer interactions.
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Customer perceptions of service quality and satisfaction are influenced by four key factors: service encounters with staff, tangible evidence like people, processes and facilities, organizational image, and price. Perceptions are formed as customers receive and interpret sensory information from their environment. Managing customer satisfaction requires measuring quality, facilitating adaptability, managing quality dimensions at each customer encounter, and enhancing perceptions of value through pricing.
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The importance of people in the marketing of services is captured in the people element of the services marketing mix, which is described as all of the human actor who play a part in the service delivery and thus influence the buyers perceptions: namely the firm’s personnel, the customer and other customers in the service environment.
Pricing of services
Pricing services is more complex than pricing goods due to several factors: customer knowledge of service prices can vary; services often have high variability between providers; and providers may be unwilling to estimate prices in advance as the nature of the service is not fully known until delivery. Non-monetary costs like time, search, convenience, and psychological costs also influence demand. While reputation and advertising are preferred quality cues, price may be viewed as a quality signal, especially for high-risk services. Common approaches to pricing services include cost-based pricing using direct and overhead costs, competition-based pricing by monitoring competitors, and demand-based pricing by relating price to customer perceived value.
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It then examines the factors that influence customer expectations, such as explicit and implicit promises made by marketers, word of mouth, past experience, and situational factors. Current issues involving customer expectations are also addressed, like how to meet unrealistic expectations and exceed customer expectations.
The presentation concludes by providing strategies for how service marketers can influence expectations, answering frequently asked questions, and highlighting examples of what basic expectations customers have for different service types.
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Customers have both expectations and perceptions of the level of service they will receive. Their expectations are influenced by personal needs, past experiences, and promises made by the service provider. Perceptions are formed through service encounters and compared to expectations. If perceptions meet or exceed expectations, the customer will be satisfied. Key aspects of service quality that influence perceptions are reliability, responsiveness, assurance, empathy, and tangibles. Higher customer value relative to costs also leads to greater satisfaction. Satisfied customers are more loyal and help the business grow through positive word-of-mouth.
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This document discusses improving service quality and productivity. It defines service quality from different perspectives and identifies key factors that influence customer expectations. The five components of service quality are discussed as well as SERVQUAL, a framework for measuring service quality gaps. Tools for measuring and addressing service quality problems are presented, including the gaps model, blueprinting, and cause-and-effect charts. Different types of demand and roles of employees that can influence customers are also summarized.
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Loyalty service profit chain
This document summarizes 5 things that were learned from talking to 100 million customers. (1) Satisfied customers are not necessarily loyal customers. (2) Customer loyalty drives sales more than customer satisfaction alone. (3) Inconsistency in customer experiences is damaging to loyalty. (4) Loyal employees help drive outstanding business performance through better customer service. (5) Resolving customer problems extremely well can turn dissatisfied customers into promoters of the business.
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CRM PPT.pptxlkjlhfhipigiehpighppghilghdhd;
A customer is an individual who purchases goods or services from businesses. Customers are the most important part of any business as businesses depend on customers, not the other way around. Customer satisfaction and loyalty are key to customer retention and driving revenue. Satisfied customers are less likely to switch to competitors. Acquiring new customers can cost 5 times more than retaining existing customers. Customer lifetime value looks at the total profits generated from a customer over their lifetime with the company to help companies decide how much to invest in attracting and retaining each customer.
Building customer satisfaction
The document discusses building customer satisfaction through delivering value and high quality. It defines customer value and satisfaction, and how perceived value is determined by benefits versus costs. Specific strategies are provided, such as enhancing product attributes, improving quality, reducing prices, and focusing on customer service. Measuring satisfaction through surveys and monitoring complaints is also covered. The goal is to turn customers into loyal, long-term partners by continuously discovering ways to provide more value.
CUSTOMER EXPECTATION AND SATISFACTION
The document discusses customer expectations and satisfaction. It states that customers expect certain things from businesses and those that can identify and meet customer expectations will have the highest levels of customer satisfaction. It also notes that customer expectations are dynamic and can change based on various factors. The key to customer satisfaction is meeting or exceeding their expectations through good customer service. The document provides some common customer expectations like fast and friendly service as well as tips for identifying specific customer expectations through surveys. Meeting expectations leads to benefits like loyal customers, increased sales, and more referrals.
Moreyeah
The document discusses a company's mission to provide honest and anticipatory customer service, retain customers through various strategies like regular communication and resolving issues, and outlines their services which include customer engagement, surveys, and interviews to better understand customers and strengthen relationships. It also provides credentials of having 14 years of banking industry experience and working with various customer segments to service their needs.
Customer satisfaction
Relationship marketing is designed to create, maintain, and enhance strong relationships with customers. It is important because it costs five times as much to attract a new customer than retain an existing one, and it is easier to sell additional products and services to existing customers. Relationship marketing involves developing customers from suspects and prospects to advocates and partners through various levels of investment and engagement. The goal is to increase customer lifetime value by improving satisfaction, loyalty, and increasing the share of the customer's purchases. CRM systems can help by allowing the tracking and analysis of customer data to better target marketing, sell additional products and services, and predict customer needs and potential defection.
Client proposition toolkit liberty
The document discusses creating a compelling client proposition. It suggests that clients will expect clear answers about what they are paying for in a more transparent pricing environment post-RDR. A client proposition should explain the services being provided in a way clients understand and demonstrate value. Many advisers currently provide services clients don't need or want. Research shows clients want responsive, personalized service and are willing to pay more for better service. High net worth clients want specialized, independent advice and transparency. An effective proposition must meet rising client expectations.
consumer behaviour Unit III
Customer Loyalty Comprehension
Meaning and definition of customer loyalty, Significance of Customer Loyalty, Customer Loyalty Ladder,
Loyalty Principles, Benefits of Customer Loyalty, Customer Loyalty and its relationship with customer
satisfaction, Customer retention and Brand Loyalty, Factors affecting customer loyalty formation, Rai-Srivastava model of customer loyalty formation, Drivers of Customer Loyalty.
Customer Service Development Programs by CBL Global
Customers today demand world-class service. They’ll reward companies that provide it by remaining loyal, and they’ll take their business elsewhere if service is mediocre. Your customer service representatives are the face and voice of your company. Businesses today realize the value these front-line employees bring. Those that invest in their employees' success see the quick return on investment that customer service training provides.
Customer Serivce Training Representatives
If you want your customer service representatives to provide a world-class experience, then this is the answer you’ve been looking for. This customer service training program teaches your employees all the skills they need to communicate positively and professionally with customers — both internal and external. Students of the course leave the training feeling upbeat, motivated, and ready to deliver the level of world-class service customers expect today!
The results you’ll see from this customer service training program include:
Improved customer satisfaction scores
Reduced escalations
Increased call resolution rates
A common service language
Improved staff morale and reduced turnover
Reduced costs
These customer service training program is perfect for anyone who provides service to internal or external customers including representatives in:
Customer service departments
Inside sales and order desks
Credit and collections
Building Customer Satisfaction.pptx
- Customer satisfaction, value, and loyalty are important for companies to deliver in order to maximize lifetime customer value. Companies should understand customer needs and expectations, deliver high quality products and services, and monitor satisfaction over time.
- It is more profitable to attract and retain existing customers than acquire new ones. Companies should measure customer lifetime value and profitability to understand which customers to prioritize. Building loyalty through programs, interactions, and institutional ties can further increase customer value.
Myths About Customer Service
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The document discusses customer satisfaction, defining it as a measure of how well a company's products and services meet or exceed customer expectations. It notes that customer expectations come from their needs, wants, and preconceptions. The document outlines that internal and external customers are important and discusses factors like price, quality, service, brand, and reputation that influence satisfaction. It describes three levels of customer satisfaction - basic needs, performance needs, and "excitement needs" that delight customers. Methods for managing satisfaction include direct feedback through surveys as well as indirect feedback from complaints, loyalty, and reviews. The goal is to continually monitor feedback to identify issues and improve customer experience.
Customer satisfaction
Customer satisfaction is a measure of how well a company's products and services meet customer expectations. If expectations are met, the customer is satisfied. There are three levels of customer satisfaction: basic needs which prevent dissatisfaction if met, performance needs which increase satisfaction the better they are met, and excitement needs which create customer delight. Factors like price, quality, service, brand, and reputation affect customer satisfaction. Ensuring customer satisfaction through feedback, surveys, and meeting expectations is important as it leads to customer loyalty, retention, and positive word-of-mouth marketing.
Chapter 4 Creating Customer Value, Satisfaction, and Loyalty
1. Conducting periodic customer satisfaction surveys to understand customer perceptions and gather feedback.
2. Monitoring customer loss or defection rates to identify potential issues.
3. Tracking the performance of competitors to benchmark satisfaction levels.
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Stop trying to delight your customers
1) The document discusses how trying to delight customers with over-the-top service does not necessarily build loyalty. Reducing the effort customers have to put in to resolving problems is more effective.
2) Research by the Customer Contact Council examined the links between customer service and loyalty. Results showed that meeting customer needs is as effective as exceeding expectations in building loyalty. Service accounts for most disloyalty despite being a small slice of the loyalty pie.
3) Companies can create loyal customers by helping them solve problems quickly and easily through removing obstacles like repeated contacts and information requests or switching channels. A low "Customer Effort Score" is key to reducing effort.
Service Excellence Powerpoint Presentation Slides
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Keep your audience glued to their seats with this professionally designed service excellence PPT slides. You can represent your customer service programs by including our service excellence PPT visuals in your business presentations. You can save your valuable time, money by representing your important business aspects with our service excellence Presentation slideshow. Our service excellence PowerPoint template explains the significance of customer service programs which are important in every business industry. Being more customer-focused and providing service excellence is becoming a significant advantage and performance differentiator for both, private and public organizations. It helps businesses to win clients in an extremely competitive environment nowadays and it facilitates cost saving. Loyal customers provide positive endorsements and online reviews that can help businesses strengthen their brand. A loyal customer on average is 10 times more valuable than their first purchase. Common and simply click on this exceptionally designed service excellence presentation deck and impress your team. Drastically change circumstances for the better with our Service Excellence Powerpoint Presentation Slides. Convert angry to happy. https://bit.ly/3sKKTQ0
Blinded By Delight Executive Guidance 2015
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.
Emc lec 12 customer retention strategies
The document discusses various strategies for customer retention used by DAWAT, an event management company. It outlines DAWAT's current strategies such as collecting feedback, follow-up calls and gifts, anniversary emails, and inviting top clients to annual dinners. It also provides suggestions for improving retention like implementing net promoter scores, building trust through relationships, increasing commitment, establishing KPIs, knowing clients better, creating employee loyalty, and handling complaints effectively. The overall aim is to strengthen customer loyalty and advocacy through engagement at multiple touchpoints.
Services marketing2821
The document discusses customer perceptions of service quality and satisfaction. It identifies key factors that influence customer satisfaction such as product/service quality and attributes, emotions, and fairness. Increased customer retention and positive word-of-mouth are outcomes of high customer satisfaction. The five dimensions of service quality - reliability, responsiveness, tangibles, empathy and assurance - are also examined. Critical incidents in service encounters that lead to customer satisfaction or dissatisfaction are explored. Effective service recovery strategies like acting quickly and treating customers fairly can help retain unhappy customers.
Customer service principles is a necessary module for every student
At the end of this section candidates should be able to:
• Describe customer service.
• Explain why customer service is important to the
success of every organisation.
• Identify who their customers are.
• Identify the drawbacks of poor customer service.
• Explain how to promote good service.
• Demonstrate an understanding of customer
service needs and expectations.
Indicative content
1.1 Outline knowledge of basic principles - maintaining
good customer service at all times; treating all
customers with respect; identifying and meeting
customer needs; providing the service expected by
the company.
1.2 Understanding why customer service is important to
the company and to you – it helps to make the
organisation successful, generates repeat business,
assists profit and growth.
1.3 Identifying external and internal customers and their
importance to the organisation.
1.4 Appreciate the drawbacks of not serving internal and
external customers effectively, e.g. poor reputation,
loss of business, loss of profit, loss of jobs.
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Customer Service Development Programs by CBL Global
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customer satisfaction, customer feedback customer retention.pptx
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Chapter 4 Creating Customer Value, Satisfaction, and Loyalty
Chapter 4 Creating Customer Value, Satisfaction, and Loyalty
Creating Customer Value, Satisfaction and Loyalty / Marketing Management BY ...
Creating Customer Value, Satisfaction and Loyalty / Marketing Management BY ...
Customer service principles is a necessary module for every student
Customer service principles is a necessary module for every student
Service profit chain
- 2. Internal Service Quality • You might have already noticed the beginning of the chain – Internal Service Quality. It becomes clear that employee satisfaction and loyalty are directly proportional to the service they provide to your customers. • Your business success depends on how you cultivate your employees into a productive, passionate, quality-oriented team.
- 3. Customer Loyalty • Based on the Service Profit Chain model, profitability and growth are determined primarily by maximizing the lifetime value of your customers, and that value is fully realized only when you earn the customer's loyalty. • In one study, a 5% increase in customer loyalty produced profit increases from 25% to 85%. • A loyal customer is one who obeys the three R’s: Retention, Repeat Sales, and Referrals.
- 4. • Service that is good, but not exceptional, can be your worst enemy. • The difference between “good” and “exceptional” is the difference between a customer who “might” buy from you again and one who will “definitely” buy from you again…and again. • Xerox conducted a study which found that a “highly satisfied” customer is six times more likely to buy again as one who is simply “satisfied”.
- 5. • The basic premise of these findings is that customers who say they are “satisfied” or “don’t complain” will not necessarily come back to you when they upgrade their equipment or want to install a new distributed audio system. • They are easily swayed by your competition or by “great deals” on the Internet. “Satisfied” is simply no longer acceptable.
- 6. • Building loyalty means resolving to deliver superior quality and service at every customer touch point. That passion must extend from the highest levels of management to the front lines of your sales staff and installers. • If you're serious about gaining loyal customers, you need to gain customer feedback and document your results. More importantly, you must respond to that feedback quickly with service improvements.
- 7. • Building loyalty means resolving to deliver superior quality and service at every customer touch point. That passion must extend from the highest levels of management to the front lines of your sales staff and installers. • If you're serious about gaining loyal customers, you need to gain customer feedback and document your results. More importantly, you must respond to that feedback quickly with service improvements.