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Customer Service & Loyalty

Customer Service & Loyalty. Dr. Mark Rosenbaum University of Hawaii. Satisfaction. Customer Delight. To meet or to exceed expectations Precursor to loyalty. Loyalty. Commitment Despite situational forces that encourage switching behaviors. Steps to satisfaction. Answer your phone

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Customer Service & Loyalty

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  1. Customer Service & Loyalty Dr. Mark Rosenbaum University of Hawaii

  2. Satisfaction • Customer Delight. • To meet or to exceed expectations • Precursor to loyalty

  3. Loyalty • Commitment • Despite situational forces that encourage switching behaviors.

  4. Steps to satisfaction • Answer your phone • Don’t make promises unless you WILL keep them • Listen to your customers • Deal with complaints • Be helpful - even if there’s no immediate profit in it

  5. Steps • Train your staff (if you have any) to be ALWAYS helpful, courteous, and knowledgeable. • Take the extra step. • Throw in something extra.

  6. Survey Customers • Are current customers satisfied? • What about customers who defect? • Why do 90% of all customers defect? • Satisfaction is temporal.

  7. Loyalty • Why are customers loyal? • Habit, after 5 years, 80% usually stay • Convenience • Beyond the product and into the social • Loyalty is not necessarily forever

  8. The forgotten fact

  9. Service Quality a. Reliability--ability to perform the promised service dependably and accurately. b.Tangibles--appearance of physical facilities, equipment and personnel. c.Responsiveness--willingness to help customers and to provide prompt service d.Assurance--knowledge and courtesy of employees and their ability to inspire trust and confidence. e.Empathy--caring individualized attention the form provides its customers

  10. The questions • Tangibles: • X has modern-looking equipment • X’s physical facilities are visually appealing • X’s employees are neat-appearing • Materials associated with the service, such as statements, are visually appealing.

  11. Reliability • When X promises to do something by a certain time, it does so. • When you have a problem, X shows a sincere interest in solving it. • X performs the service right the first time. • X provides its services at the time it promises to do so. • X insists on error free records.

  12. Responsiveness • Employees of X tell you exactly when services will be performed. • Employees of X give you prompt service. • Employees of X are always willing to help you. • Employees of X are never too busy to respond to your requests.

  13. Assurance • The behavior of employees of X instills confidence in customers. • You feel safe in your transactions with X. • Employees of X are consistently courteous with you. • Employees of X have the knowledge to answer your questions.

  14. Empathy • X gives you personal attentions. • X has operating hours convenient to all its customers. • X has employees who give you personal attention. • X has your best interests at heart. • Employees of X understand your specific needs.

  15. But, what about employees • Internal Service Quality: • Workplace design • Job design • Employee selection & development • Employee rewards & recognition • Tools for serving customers

  16. Employee Satisfaction • Surveys • Frequent interviews • Roundtable discussions

  17. Leads to… • Employee Retention • Avg. tenure of employees • Employee Productivity • Sales per employee

  18. Value • Perceived Benefits/Costs • Wal-mart vs. small town America • Without value, no sales, no traffic

  19. Customer Satisfaction • Current • Defects • Don’t aim for 100% it’s impossible. • In fact, it’s not feasible! • http://www.theacsi.org/ • Mark’s hypothesis

  20. Customer Loyalty • Retention • Repeat Business • Referrals

  21. Results • Revenue Growth • Profitability • How to measure profitability: • http://www133.americanexpress.com/osbn/tool/ratios/financialratio.asp • Thomson Analytics • Yahoo financials Students should realize that a balance sheet without rations is like a house without a roof—it’s not complete and I wouldn’t want to live in it on a cloudy day.

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