By Thomas O. Jones and W. Earl Sasser, Jr. Harvard Business Review (November-December 1995) Marko...
-
Upload
alvin-hopkins -
Category
Documents
-
view
220 -
download
1
Transcript of By Thomas O. Jones and W. Earl Sasser, Jr. Harvard Business Review (November-December 1995) Marko...
by Thomas O. Jones and W. Earl Sasser, Jr.Harvard Business Review (November-December 1995)
Marko [email protected]
S-72.2530 Acceptability and Quality of Service4.12.2008
AgendaThe ArticleLevels of SatisfactionHow to Listen to Customers?The ResearchConclusion of the ResearchThoughts About the Article
4.12.2008 2Marko Seikola - Why Satisfied Customers Defect
The ArticleHarvard Business PreviewNovember-December 1995
Still relevant after 13 yearsRelationship between customer satisfaction
and loyaltyPresents a research of five different business
areasNot fully applicable in Finland
4.12.2008 3Marko Seikola - Why Satisfied Customers Defect
Levels of SatisfactionTrue long-term loyalty vs. false loyaltyScale 1 – 5Different satisfaction levels reflect different issues
Dissatisfied: problem with core productNeutral: probably happy with core product but
would like to get set of support services
4.12.2008 4Marko Seikola - Why Satisfied Customers Defect
Response Description Loyalty
5 Completely satisfied
Very loyal
3 – 4 Satisfied Easily switched to a competitor
1 – 2 Dissatisfied Very disloyal
Listen to CustomersFeedback, inquiryMarket researchFrontline personnelStrategic activitiesCustomers with reasonably good product or
service quality doesn’t give negative feedback easilyThe reliability of customer research falls
4.12.2008 5Marko Seikola - Why Satisfied Customers Defect
Listen to CustomersConsistent
Period-to-period changes has to be evaluatedBroadly appliedCapture information also on individual level
in order to tailor individual experiences
4.12.2008Marko Seikola - Why Satisfied Customers Defect 6
Marketer’s Point of View
4.12.2008Marko Seikola - Why Satisfied Customers Defect 7
High Margin
Medium Margin
Low Margin
Many customersAccountabl
eReactive
Basic or reactive
Medium number of customers
Proactive Accountable Reactive
Few customersPartnership Proactive
Accountable
Source: P. Kotler & K. Keller – Marketing Management 12e, page 157
The Research30 Different companies5 Different markets
4.12.2008 8Marko Seikola - Why Satisfied Customers Defect
The Research – Local TelephoneMonopolies
Not applicable in Finland
RegulationsMobility
The article was issued 1995
No fixed phones No locality
4.12.2008 9Marko Seikola - Why Satisfied Customers Defect
The Research – AirlinesVirtual monopolies
with routesService on these
routes affect on loyalty on other routes
Frequent-flier programs
PriceTime of departureReliability &
security4.12.2008 10
Marko Seikola - Why Satisfied Customers Defect
The Research – HospitalsVery different type
of healthcare in Finland and in USFinland: public
healthcareInsurer often
determines the hospital (US)
Location
4.12.2008 11Marko Seikola - Why Satisfied Customers Defect
The Research – Personal ComputersComputers in
business useIntegrationHuge effort
needed in order to change system
How about home users? Any difference?
4.12.2008 12Marko Seikola - Why Satisfied Customers Defect
The Research – AutomobilesHigh comptetitionHuge difference
between merely and completely satisfied
Expensive productBought very rarelyThe research
included cars with wide price range
4.12.2008 13Marko Seikola - Why Satisfied Customers Defect
Conclusion of the ResearchPeople are hard to pleaseClearly: loyalty ~ satisfaction
Differs between marketsDifferent levels <=> different problemsComplete satisfaction
Difference between merely and completely satisfied customers is huge
Loyalty Long-term financial performance
Satisfaction affects more than managers assumeFocus on how to correct the biggest factors of
dissatisfaction
4.12.2008 14Marko Seikola - Why Satisfied Customers Defect
Thoughts about the articleIs the question relevant to monopolies?End-to-end qualityThe research is not 100% applicable to
Finnish societyFixed phones losing the game to mobile phonesNo monopolies in local phonesPublic healthcare
4.12.2008 15Marko Seikola - Why Satisfied Customers Defect