Post Purchase, Customer/Consumer Satisfaction and Commitment/ Behaviour

1. Post Purchase, Customer/Consumer Satisfaction and Commitment/ Behaviour Week 1 -4

2. Basic Framework Motivation Perception Search Evaluation Choice Learning HAUT Transfer abroad programme

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5. Who are your customers? • External • Direct - Primary • End -user • Suppliers • Internal • Other parts of the organisation no under your control HAUT Transfer abroad programme

6. Your People • Capability • all your people, whether in the front line or not, are recruited and trained against a customer service competency blueprint NVQ • Continuity • You have retention, reward and recognition strategies which encourage people to remain • Courtesy • Your people are polite, considerate, tolerant and friendly when dealing with customers • Creativity • Your people produce ideas for service innovations and improvements HAUT Transfer abroad programme

7. Your Strategy • Commitment • Customer service is a key corporate scorecard indicator: transformational and incremental goals, action programmes and top level accountabilities • Credibility • Your customers have grounds for believing your promises • Classification • You segment your customers, periodically review your segmentation profiles and vary your product / service offer across segment boundaries • Concentration • You focus your marketing efforts on your most profitable customers HAUT Transfer abroad programme

8. Your Customers • Consistency • Your customers always know what to expect from you • Communication • Your customers understand what you say to them; equally you actively promote opportunities for two-way dialogue • Comfort • Your customers feel comfortable with everything which collectively comprises your company’s reputational asset • Contact • You offer customers service at times to suit your customers, not merely at times which suit you. HAUT Transfer abroad programme

9. The Service / Profit CycleREF The Loyalty Effect (Reichheld) HAUT Transfer abroad programme

10. The 4 Cs approach • Kotler proposition based on the consumer point of view of the 4 Ps • Customer Value • Convenience • Cost • Communication HAUT Transfer abroad programme

11. Who/what is the ideal customer? • Knows the rules • Wants a mutually beneficial relationship • Communicates • Complains - • Constructively • Feedback • The class from hell HAUT Transfer abroad programme

12. Who/what is the ideal customer? • Knows the rules • Wants a mutually beneficial relationship • Communicates • Complains - • Constructively • Feedback • The class from hell HAUT Transfer abroad programme

13. Strategic Issues in RM • McKinsey & Co Framework • The Seven S’s • Strategy • Structure • Systems • Shared Values • Skills/Staff • Style • More applicable in a matrix organisation HAUT Transfer abroad programme

14. Strategy is the key • What is (a) strategy? • Integrated plan for development of marketing orientation SYSTEMS/STRUCTURE • Formalised definitions of markets and mission -SHARED VISION/STYLE • Detailed specification of marketing objectives • Commitment to implementation SKILLS/STAFFING HAUT Transfer abroad programme

15. Strategy is a coherent set of actions aimed at gaining a sustainable advantage over the competition.. HAUT Transfer abroad programme

16. Shared values • The ideas of what is right and desirable - the mores of the organisation / individuals • Typified by catch phrases / sound bites • “We will become a fully customer driven organisation • Customers come first • Marketing expenditures are an investment • Service is paramount” • ?? HAUT Transfer abroad programme

17. Style • The way that management behaves... • Top management support - visible commitment to customer related activities • Open communications between all functional groups and marketing staff • Recognition/reward of customer /market oriented behaviour HAUT Transfer abroad programme

18. Structure • Clearly defined responsibilities and reporting lines • Key accounts - recognising important customers • Decentralised marketing staff to provide close and fast support to customers • Staff rotation of non-marketing staff through customer contact positions HAUT Transfer abroad programme

19. Systems • Procedures and processes • Information - flow • Customer intelligence • Competitor intelligence • Marketing planning and control systems • Providing information to customer facing staff • Process easy for both customers and staff. HAUT Transfer abroad programme

20. Skills/Staffing • People in the organisational rather than personal context • Recruitment of people with requisite skills / ability to acquire • Provision of adequate number of customer service staff • Marketing training -programmes and market • Analytical skills in segmentation HAUT Transfer abroad programme

21. Richer SoundsHow to make money from old fashioned sales Five basic principles • Work should be fun • People should get recognition • Service rather than sales should be rewarded • Inform people and listen to ideas • You must show people loyalty HAUT Transfer abroad programme

22. The need for customer obsession Customers are:- The most important people in any business Not dependent on us - we depend on them Not an interruption to our work - they are the purpose of it Not doing us a favour Part of the business Not a cold figure on a sales report Not someone to fight People who have wants -we have satisfaction for them Deserve respect The life blood of the business HAUT Transfer abroad programme

23. High level service providers have/ enjoy • High staff • Low staff • Purchase levels = • Customer retention levels = • Promotional costs = • so cost of sales = • Number of referrals and recommendations = • Prices = • so profit levels = HAUT Transfer abroad programme

24. The customer focused company has two layers! • LAYER 1 People who directly serve customers • LAYER 2 People who serve people in layer 1 HAUT Transfer abroad programme

25. Lifetime customer value and loyalty • How can it be calculated? • Specifically in your business field • Think of some consumer markets and calculate a value! • Do the same for business to business HAUT Transfer abroad programme

26. This thing called loyalty Incentive loyalty Inertia loyalty Lazy - Habitual loyalty Monopoly loyalty Price loyalty Trend loyalty True - lifetime loyalty HAUT Transfer abroad programme

27. Satisfaction • What is it HAUT Transfer abroad programme

28. Involvement • Is “a reflection of how much the customer has invested* in the relationship and how difficult it would be to sever links” *financially or emotionally This means treating the customers as….? HAUT Transfer abroad programme

29. Affinity • How the customers feel emotionally about the brand and the would-be alternatives. • This can only be determined after establishing satisfaction and involvement levels… • Hewlett-Packard, • Tesco • Co-op Travelcare. HAUT Transfer abroad programme

30. Customer Loyalty • What is it? • Willingness to keep on doing business with you no matter what. • Share of spending - not market share • The extent to which they will recommend you. HAUT Transfer abroad programme

31. What happens when things go wrong - inevitably Empathy + restoration • Dealing with demanding customers* - SARAH at the sharp end.. • Stop talking • Adopt active listening • Reflect content or feeling • Act with empathy - Your own mother! • Handle the subject matter *David Martin Person first problem second HAUT Transfer abroad programme

32. Training aspects Wide breadth of training needs/methods • Job skills - obviously • Cross training - • General business training - • Peer training - • Off the job - • Self -improvement training holistic HAUT Transfer abroad programme

33. WOW FACTORS • Instantly recognisable and valued by customer • They are quick and easy to do • They cost little or nothing! • Tissues? Smile? HAUT Transfer abroad programme

34. Make sure you’re not rewarding the wrong customers • Buy early and pay top prices - leave it until the last minute and get a great deal! • Small purchasers get dealt with quickly - big spenders can wait in line! • The quicker you become a customer - the worse the deal you will get! • Banks? • If you’re a new customer you can have the latest ????? At a give away price if you’re an existing customer you’ll have to pay a lot more.. HAUT Transfer abroad programme

35. Consumers and choice • I just have too much choice. 1980s Supermarkets - 4,000 lines now40,000 lines • By the year 2020 we will all be clinically stupid, because of the bewildering choices presented to us and lack of time to really understand .. IDM HAUT Transfer abroad programme

36. Bewildering choice • There are - “ thousands of mundane choices [about] these kinds of orange juice and cereal … you lose your life in these things. Your life becomes shallow” • Natan Sharansky HAUT Transfer abroad programme

37. Background to Relationship Marketing DAVIDSON • Cheaper costs of IT = collecting and processing data • More sophisticated and robust databases • Better knowledge of customers • Decline in growth markets - focus of competition • Consumers more demanding HAUT Transfer abroad programme

38. Relationship Marketing means • Long term commitment - • NOT JUST FOR CHRISTMAS! • Building a two way relationship • Transparency • Total company commitment • Listening HAUT Transfer abroad programme

39. Customer Care - the payback! • Customer service equals quality = success • Good image to underpin expansion • Increased profitability • Happier staff..... HAUT Transfer abroad programme

40. Satisfied Customer? Rank Xerox Research found that ... The difference between a satisfied and a very satisfied customer in terms of their willingness to buy again is SIX times HAUT Transfer abroad programme

41. Your customer can be your USP • The quality and history of your relationship is perhaps the only source of competitive advantage that ultimately cannot be copied HAUT Transfer abroad programme

42. Promus Hotels • The promise at Promus is .. If a guest complains to any member of staff that things are not quite right, that member of staff is empowered to cancel their bill! • Madness? Discuss... HAUT Transfer abroad programme

43. Promus Hotel - the result • Happy customers • Happier staff - less turnover lower training costs - driven by info systems • Assured quality standards • Complaints mean something - they drive service improvements • Refunds = 0.3% of revenues • Intent to return = 50% higher for customers who were refunded than others. • INNOVATIONS CATALOGUE HAUT Transfer abroad programme

44. Serial complainers • A nice letter to the customer lamenting the fact that the hotel chain cannot meet his/her quality standards and inviting him to stay in a competitor’s facility.. • In UK Forte Hotel group matched expectations by segmenting into Travelodge/ Post House / Crest/ Heritage / Grand... HAUT Transfer abroad programme

45. Rank Xerox how they lost the copier market.. • Machines were failure prone.. • So they had to set up a Service departtment • Machines still failured so … do you improve the product? OR .. • Strengthen the service support • Customers wanted machines that did not breakdown … FULL STOP • Rank had no incentive to improve their machines - it would affect the profitability of the service section CIRCLE? HAUT Transfer abroad programme

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47. Customer Loyalty Ladder HAUT Transfer abroad programme