IMPROVING YOUR CUSTOMER SERVICE

Donna J. Hill, PhDProfessor of Marketing

Foster College of Business AdministrationBradley 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”

SURVEY RESULTS

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

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Convenience of Business Hours

Level of Satisfaction

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Customer Service Provided

Level of Satisfaction

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The Customer Satisfaction Loyalty Relationship

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20

40

60

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1 2 3 4 5

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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.