Download Encouraging Customer Loyalty

CHAPTER TWELVE
Encouraging
Customer Loyalty
12-2
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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12-3
Relationships
are Built
on Trust!
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12-4
STRATEGIES FOR
BUILDING TRUST
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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12-5
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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12-6
BENEFITS OF CRM
Less need to obtain new
customers
Reduced marketing costs
Increased ROI
Enhanced loyalty
Elevated profitability
Targeted marketing
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12-7
IMPORTANCE OF LOYALTY
Cost 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 year
Source: TARP
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12-8
ADDRESSING CUSTOMER NEEDS
To feel welcome
To be understood
To feel comfortable
To feel appreciated
To feel important
To be respected
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12-9
PROVIDER CHARACTERISTICS
AFFECTING LOYALTY (1)
Responsiveness
Adaptability
Communication skills
Decisiveness
Enthusiasm
Ethical behavior
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12-10
CHARACTERISTICS AFFECTING
LOYALTY (2)
Initiative
Knowledge
Perceptiveness
Planning ability
Problem-solving ability
Professionalism
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12-11
PLANNING PROCESS MODEL
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12-12
BE RESPONSIBLE FOR
RELATIONSHIPS
Personalize approach
Listen actively
Keep open mind
Individualize service
Show respect
Elicit input
Use effective closing statements
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12-13
ELICITNG CUSTOMER INPUT (1)
Customer comment cards
Toll-free numbers
Verbal comments
Telephone
surveys
Service contact surveys
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12-14
ELICITING CUSTOMER INPUT (2)
Exit interviews
Shopper/customer surveys
Focus groups
Sales and service records
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12-15
MAKING THE CUSTOMER #1
Positive initial contact
Establish rapport
Identify/satisfy needs
Exceed expectations
Follow up
Encourage return
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12-16
RELATIONSHIP-RATING
POINT SCALE
Exemplary = 4
Above average = 3
Average = 2
Below average = 1
Unsatisfactory = 0
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12-17
ENHANCING SATISFACTION (1)
Pay attention
One customer at a time
Know your customers
Give special treatment
Service at least adequately
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12-18
ENHANCING SATISFACTION (2)
Do the unexpected
Handle complaints effectively
Sell benefits not features
Know your competition
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12-19
RATER MODEL
Reliability
Assurance
Tangibles
Empathy
Responsiveness
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