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CHAPTER TWELVE

CHAPTER TWELVE. Encouraging Customer Loyalty. L EARNING O BJECTIVES. Establish & maintain trust Develop characteristics that enhance loyalty Recognize provider’s responsibility Help customers feel important Select strategies to enhance satisfaction and build loyalty.

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CHAPTER TWELVE

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  1. CHAPTER TWELVE Encouraging Customer Loyalty

  2. LEARNING OBJECTIVES • Establish & maintain trust • Develop characteristics that enhance loyalty • Recognize provider’s responsibility • Help customers feel important • Select strategies to enhance satisfaction and build loyalty

  3. Relationshipsare Builton Trust!

  4. IMPORTANCE OF LOYALTY • Cost 5 times more to acquire new customers • 50% of consumers will complain to frontline • 75% complain in B2B • Small-ticket = 96% do not complain • Large-ticket = 50% complain to frontline • Large-ticket = 5-10% escalate to mgt • 50% simply go away • Tell up to 16 friends • Businesses lose 10-15 per year Source: TARP

  5. STRATEGIES FORBUILDING TRUST • Communicate effectively & convincingly • Display caring • Be fair • Admit errors/lack of knowledge • Trust customers • Keep your word • Provide peace of mind

  6. Customer Relationship Management (CRM) involves identifying customer needs, understanding and influencing customer behavior through ongoing communication strategies in an effort to acquire, retain, and satisfy the customer. The ultimate goal is customer loyalty.

  7. BENEFITS OF CRM • Less need to obtain new customers • Reduced marketing costs • Increased ROI • Enhanced loyalty • Elevated profitability • Targeted marketing

  8. ADDRESSING CUSTOMER NEEDS • To feel welcome • To be understood • To feel comfortable • To feel appreciated • To feel important • To be respected

  9. PROVIDER CHARACTERISTICS AFFECTING LOYALTY (1) • Responsiveness • Adaptability • Communication skills • Decisiveness • Enthusiasm • Ethical behavior

  10. CHARACTERISTICS AFFECTING LOYALTY (2) • Initiative • Knowledge • Perceptiveness • Planning ability • Professionalism • Problem-solving ability

  11. PLANNING PROCESS MODEL

  12. Identify the problem Generate ideas Evaluate alternatives Choose among alternatives Implement chosen alternative Learn from feedback

  13. BE RESPONSIBLE FOR RELATIONSHIPS • Personalize approach • Listen actively • Keep open mind • Individualize service • Show respect • Elicit input • Use effective closing statements

  14. ELICITNG CUSTOMER INPUT (1) • Customer comment cards • Toll-free numbers • Verbal comments • Telephonesurveys • Service contact surveys

  15. ELICITING CUSTOMER INPUT (2) • Exit interviews • Shopper/customer surveys • Focus groups • Sales and service records

  16. MAKING THE CUSTOMER #1 • Positive initial contact • Establish rapport • Identify/satisfy needs • Exceed expectations • Follow up • Encourage return

  17. RELATIONSHIP-RATINGPOINT SCALE • Exemplary = 4 • Above average = 3 • Average = 2 • Below average = 1 • Unsatisfactory = 0

  18. ENHANCING SATISFACTION (1) • Pay attention • One customer at a time • Know your customers • Give special treatment • Service at least adequately

  19. ENHANCING SATISFACTION (2) • Do the unexpected • Handle complaints effectively • Sell benefits not features • Know your competition

  20. RATER MODEL • Reliability • Assurance • Tangibles • Empathy • Responsiveness

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