CHAPTER TWELVE Encouraging Customer Loyalty. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies,...
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Transcript of CHAPTER TWELVE Encouraging Customer Loyalty. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies,...
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CHAPTER TWELVE
Encouraging Customer Loyalty
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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
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Relationships
are Built
on Trust!
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IIMPORTANCE MPORTANCE OOF F LLOYALTYOYALTYCost 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 yearSource: TARP
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SSTRATEGIES TRATEGIES FFORORBBUILDING UILDING TTRUSTRUST
Communicate effectively & convincingly
Display caring
Be fair
Admit errors/lack of knowledge
Trust customers
Keep your word
Provide peace of mind
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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.
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BBENEFITS ENEFITS OOF F CCRMRM
Less need to obtain new customers
Reduced marketing costs
Increased ROI
Enhanced loyalty
Elevated profitability
Targeted marketing
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AADDRESSING DDRESSING CCUSTOMER USTOMER NNEEDSEEDS
To feel welcome
To be understood
To feel comfortable
To feel appreciated
To feel important
To be respected
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PPROVIDER ROVIDER CCHARACTERISTICS HARACTERISTICS AAFFECTING FFECTING LLOYALTY (1)OYALTY (1)
Responsiveness
Adaptability
Communication skills
Decisiveness
Enthusiasm
Ethical behavior
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CCHARACTERISTICS HARACTERISTICS AAFFECTING FFECTING LLOYALTY (2)OYALTY (2)
Initiative
Knowledge
Perceptiveness
Planning ability
Professionalism
Problem-solving ability
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PLANNING PROCESS MODELPLANNING PROCESS MODEL
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Identify the problem
Generate ideas
Evaluate alternatives
Choose among alternatives
Implement chosenalternative
Learn from feedback
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BBE E RRESPONSIBLE ESPONSIBLE FFOR OR RRELATIONSHIPSELATIONSHIPS
Personalize approach
Listen actively
Keep open mind
Individualize service
Show respect
Elicit input
Use effective closing statements
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EELICITNG LICITNG CCUSTOMER USTOMER IINPUT (1)NPUT (1)
Customer comment cards
Toll-free numbers
Verbal comments
Telephonesurveys
Service contact surveys
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EELICITING LICITING CCUSTOMER USTOMER IINPUT (2)NPUT (2)
Exit interviews
Shopper/customer surveys
Focus groups
Sales and service records
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MMAKING AKING TTHE HE CCUSTOMER USTOMER #1#1
Positive initial contact
Establish rapport
Identify/satisfy needs
Exceed expectations
Follow up
Encourage return
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RRELATIONSHIP-ELATIONSHIP-RRATINGATINGPPOINT OINT SSCALECALE
Exemplary = 4
Above average = 3
Average = 2
Below average = 1
Unsatisfactory = 0
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EENHANCING NHANCING SSATISFACTION (1)ATISFACTION (1)
Pay attention
One customer at a time
Know your customers
Give special treatment
Service at least adequately
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EENHANCING NHANCING SSATISFACTION (2)ATISFACTION (2)
Do the unexpectedHandle complaints effectivelySell benefits not featuresKnow your competition
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RRATER ATER MMODELODEL
Reliability
Assurance
Tangibles
Empathy
Responsiveness