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Customer Retention and Satisfaction Measurement

Learn about customer retention strategies, churn rate, defection rate, and customer lifetime value. Identify areas for improvement and establish a customer retention program. Understand the changing marketplace and deliver excellent customer service for success.

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Customer Retention and Satisfaction Measurement

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  1. Chapter Ten Customer Retention & Measurement Of Satisfaction

  2. What is customer retention? • The continuous attempt to satisfy and keep current customers actively involved in conducting business.

  3. Understanding Churn • Churn (or churn rate) is the number of customers who leave in a year’s time divided by the number of new customers in the same period.

  4. Defection Rate • Is the percentage of customers who leave in one year. • Customer lifetime value: • Is the net present value of the profits a customer generates over the average customer life. • Customer lifetime value= yearly profit x customer life in years

  5. Do you need to improve your customer retention program? • 1. Is customer satisfaction your primary management objective? • 2. Is there effort to enhance customer satisfaction? • 3. How do you get lost customers back? • (see page 137 for reference)

  6. Establish a customer retention program • Remember to: • 1. Examine who your customers are. • 2. Identify specific objectives. • 3. Create a manageable program of customer retention. • 4. Create a culture that stimulates customer interest. • 5. Evaluate.

  7. Chapter Eleven Delivering Customer Service to the Changing Marketplace

  8. Understanding the customer of the 21st Century • They will expect • 1. Availability: service designed to meet their schedule • 2. Accessibility: when customer needs to talk, provider can be reached • 3. Accountability: customers prefer quick and accurate answers to questions

  9. New Technology • Tips: • 1. Prepare your staff • 2. Train supervisors first and get them to buy in • 3. Sell your vision • 4. Praise success • 5. Resist temptation to complain • 6. Celebrate small success

  10. Chapter Twelve Excellence in Customer Service

  11. Rewards of Providing Excellent Customer Service • 1. Customers approach business expecting a positive experience • 2. Work is more personally fulfilling • 3. Customers act as co-produces • 4. A unique competitive edge is achieved • 5. Customer challenges are recognized • 6. Problems are creatively solved in an effective and efficient manner

  12. CONT… • 7. Customer service providers and management feel positive about the roles that they are playing in creating positive exchanges between customers and their organization • 8. Work environment is more pleasant and productive • 9. Businesses earn a positive reputation and the respect of customers and peers • 10. Profit goals are more successfully accomplished because business focus is on satisfying the customers

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