Customer Service & Loyalty Dr. Mark Rosenbaum University of Hawaii.
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Transcript of Customer Service & Loyalty Dr. Mark Rosenbaum University of Hawaii.
Customer Service & Customer Service & LoyaltyLoyalty
Customer Service & Customer Service & LoyaltyLoyalty
Dr. Mark RosenbaumDr. Mark RosenbaumUniversity of HawaiiUniversity 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• 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
Steps• Train your staff (if you have
any) to be ALWAYS helpful, courteous, and knowledgeable.
• Take the extra step. • Throw in something extra.
Survey Customers• Are current customers satisfied?• What about customers who
defect?• Why do 90% of all customers
defect?• Satisfaction is temporal.
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
The forgotten fact
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
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.
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.
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.
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.
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.
But, what about employees
• Internal Service Quality:– Workplace design– Job design– Employee selection & development– Employee rewards & recognition– Tools for serving customers
Employee Satisfaction
• Surveys• Frequent interviews• Roundtable discussions
Leads to…• Employee Retention
– Avg. tenure of employees
• Employee Productivity– Sales per employee
Value
• Perceived Benefits/Costs• Wal-mart vs. small town America• Without value, no sales, no traffic
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
Customer Loyalty• Retention• Repeat Business• Referrals
Results• Revenue Growth• Profitability
– How to measure profitability:– http://www133.americanexpress.com/osbn/
tool/ratios/financialratio.asp– Thomson Analytics– Yahoo financialsStudents 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.