Customer Loyalty Dps

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1. Customer LoyaltyT hat DrivesBusiness ResultsDavid P. ScurlockTraining and Development thatDrives Business Results 2. Research Field Experience Business Week March 9th The Customer Service Elite Harvard Business Review (Feb. 07) Understanding the customer experience The Ultimate Question Driving GoodProfits and True Growth Fred Reichheld - author 3. Definitions Customer Satisfaction State of being gratified Compensation for a wrong Act of fulfilling a desire or need Customer Loyalty Feelings of allegiance The act of binding yourself (intellectually or emotionally) to a course of action Commitment, dedication. 4. Satisfaction=Loyalty Short Term Long Term Can be costly Profitable 5. True Customer Loyalty Customer Loyalty measures the emotional attachment that a customer has with your product/service/organization. That attachment is created throughrelationships developed by youremployees. 6. Business Week(March 9, 2007) The Customer Service Elite Companies rated very high in customerloyalty. Survey asked how many wouldrecommend the company to others.. # 1 company79% would # 25 company 40% would 7. The Loyalty Effect* Products are homogenous Technology is leveling the playing field Lots of information available Customer service is the difference and a link to loyalty. *The Ultimate Question- Driving Good Profits and True Growth Fred Reichheld 8. The Loyalty Effect*Employee LoyaltyCustomer LoyaltyInvestor Loyalty Adapted from the Loyalty Effect , Fred Reichheld 9. The Loyalty Effect Central gauge that integratesall dimensions of business and measures how well company is creating value for its customers.What do they want? What do they likeabout your offer? What is missing?What can be improved ? Why do they goto the competitor? 10. The Loyalty Impact Competitive Advantage Employee Morale Unexpected gains in Productivity Growth Reduced cost 11. Customer LoyaltyStarts With TheEmployees Southwest Airlines Example Hire Attitude Look for the followingskills Empathy Listening Skills Problem Solving Skills Dont rely on resumes Use behavior based interviewing Past experiences predicts future behavior 12. Train ExistingEmployees Listening Skills Pivotal communication skill Key to internal communication between employees. Key to developing emotional connection between front-line employees and customers. 13. Active Listening Skills Hearing vs. Listening Start with empathy (others shoes) Do not react or take personally when the otherperson is expressing their feelings andemotions. Listen for the key message that person issending or expressing. Restate in your own words what the otherperson has stated. Confirm that the other person agrees with yourunderstanding. 14. Creating CustomerLoyalty A Greatly Exceed B Exceed C Meet D Disappointed F FailExpectations Perceptions 15. Creating Customer Loyalty If the customers perceptions exceed theirexpectations customers are highly satisfiedand develop loyalty. If their perceptions are about equal thecustomers are neither satisfied or dissatisfied.They are somewhere in the zone ofindifference. If their perceptions are below expectationscustomers move to a degree ofdissatisfaction resulting in disloyalty. 16. Satisfaction Dissatisfaction ModelSatisfaction HighCustomer Loyalty Zone of Indifference exist in this areaHigh Dissatisfaction Service providers need to understand how to move customers to a level of high satisfaction 17. What CustomersExpect Process Execution Predictable Repeatable Empower them with information First Time Resolutions 18. Do you have any FredTaylors ? Southwest Airlines Customer Communications Specialist Focuses on Service Recovery Communicates resolutions to field 19. Service Recovery Listen to the concerns of the customer Listen to what the customer wants. Make it easy for the customer to resolvetheir concern. One size solution doesnt fits all 20. The Four Steps ofService Recovery Apologize sincerely- dont becomedefensive or make excuses. Showempathy. Fix the problem- Listen, empathize, andask open-ended questions that allow thecustomer to express what they reallywant. Act quickly with a sense ofurgency 21. The Four Steps ofService Recovery Do something extra as atonement- does not have to be expensive or elaborate. Show the customer that you appreciate their business, youre sorry for what happen, and you want to add value to the relationship. Follow up- A call from management or the service person to ensure that the customer is satisfied. 22. U.S. Office of Consumer Affairs Findings Of the customers who register a complaint,between 54 and 70 percent will do businessagain with the organization if their complaintsare resolved. That figure goes up to astaggering 95 percent if customers feel thatcomplaints are resolved quickly! 23. Service Sells Enhance the perception of your brand in the eyes of the customers during the service interaction. Service Margins (post sale) 30% to 200% greater than product margins 25% of total revenue 50% of operating profits 24. T hank youDavid P. Scurlock