IMPROVING YOUR CUSTOMER SERVICE
Donna J. Hill, PhD
Professor of Marketing
Foster College of Business Administration
Bradley University
Satisfaction
Loyalty andRetention
Financial Performance
Service Performance
Current Belief About Outcomes of Customer Satisfaction With Service
1. Customer referrals
2. Long-term customer loyalty
3. Streamlined service delivery
4. Positive word of mouth
5. More cross-selling
6. Employee Satisfaction and Retention
Happy Customers
Retaining customers costs one-fifth of getting new ones
Loyalty and customer retention rates increase Less emphasis on price as customers seek
augmented benefits associated with their broader set of expectations
Share of account rises as customers increase their level of purchases
Customers are more open to cross-selling of multiple products
Highly satisfied customers recommend the organization to other prospectsEach completely satisfied customer will tell five other
people about the good or service
Service Quality Dimensions
Cues used to assess service
Reliability
Assurance
Tangibility
Empathy
Responsiveness
Perceived Services – evaluations are based on perception
The Five Dimensions of CustomerService Quality - RATER
Ability to perform the promised service dependably and accurately.
Credibility, security, competence and courtesy.Physical facilities, equipment, and appearance of personnel. Approachability, listening, understanding the customer
Willingness to help customers and provide prompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy
Reliability
Performing the service accurately and consistently.Performing services right the first time.Maintaining error free records.Dependability in handling customers’ service
problems.Providing service as promised.Giving estimated time for service whether it is room
service, laundry service, delivery, or simply how long it will take to be seated at a restaurant.
Always giving accurate information
Responsiveness Hours open are convenient to customers Answering the phone and email Answering questions. Keeping customers informed as
to when services will be performed. Prompt service to customers. Willingness to help customers. Readiness to respond to customer’s requests.
“Because I don't want to waste my time, I don't frequent shops that do not have consistent hours.”
“Very few stores in the downtown are open past 5:00. Very few stores are open on Sunday. Increasing the hours of operation would allow those of us that work out of town or until 5:00 each day the opportunity to shop more locally”.
Assurance Employees who instill confidence in
customers. Making customers feel safe in their
transactions. Employees who are consistently courteous. Employees who have the knowledge to
answer customer questions.
“Employers need to screen their employees better. Have seen the young girls in stores with feet up on the desk kicked back and using their cell phones. They were too busy to help me”.
Empathy Giving customers individual attention. Employees who deal with customers in a caring
fashion. Having the customer’s best interest at heart. Employees who understand the needs of their
customers. Personalized attention
“I want to spend my money in Canton but it makes it very difficult when the service is subpar”.
Tangibles Employees who have a neat,
professional appearance. Visually appealing facilities. Modern equipment. Visually appealing
materials associated
with the service. Web pages
“I would love to see some downtown businesses take more pride in their storefronts. Some owners do not shovel snow, do not clear leaves in the fall, and if they would invest a little time and effort enhance their facade, they would make a much more positive first impression on their customers.”
In order of importance Reliability (32%) Responsiveness (22%) Assurance (19%) Empathy (16%) Tangibles (11%) Note: Different for different services, different
contexts, and different people. Note: What shows up as unimportant becomes
important if it crosses a certain failure threshold.
Note one study found that 68% of dissatisfactioncould be traced to rude or indifferent treatment!
Studies Consistently Find Customers Judge You “On the Little Things”
Treat the customer like a somebody. Greet the customer. Be polite! Appearances do count! Do what you say you will. Listen to your customers. Repeat back to the
customer what it is you heard them say. Mea Culpa. Avoid “pinging”
Secret Shoppers Experiences
Negative:• One place in particular: did not
greet when we entered the door—not welcoming
• Answered a personal phone call while I was checking out/paying for my product
• Assumed we were local and didn’t need any assistance while shopping
Positive: Very friendly, personable,
helpful, went out of their way to help you
Gave suggestions on other stores to visit
Suggested things to do in Canton—knowledgeable about other local businesses
Very
Dissat
isfied
Dissat
isfied
Somew
hat D
issat
isfied
Neutra
l
Somew
hat S
atisf
ied
Satisf
ied
Very
Satisf
ied0
5
10
15
20
25
30
35
Convenience of Business Hours
Level of Satisfaction
# o
f R
esp
on
ses
Very
Dissat
isfied
Dissat
isfied
Somew
hat D
issat
isfied
Neutra
l
Somew
hat S
atisf
ied
Satisf
ied
Very
Satisf
ied0
5
10
15
20
25
30
35
Customer Service Provided
Level of Satisfaction
# o
f R
esp
on
ses
The Customer Satisfaction Loyalty Relationship
0
20
40
60
80
100
1 2 3 4 5
Lo
yalt
y (R
eten
tio
n)
VeryDissatisfied
Dissatisfied Neither Satisfied VerySatisfied
Satisfaction
Near Apostle
Zone of Defection
Zone of Indifference
Zone of Affection
Terrorist
Apostle
Source: Adapted from Thomas O. Jones and W. Earl Sasser, Jr., “Why Satisfied Customers Defect,” Harvard Business Review, November-December 1995, p. 91.
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