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Customer Loyalty Going Beyond Satisfaction

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					  Customer Loyalty
  Going Beyond
  Satisfaction


Norm Williams
Vice President Brand &
Customer Experience
March 30, 2010
Customer
 Loyalty
Service expectations today are very high.

Consumer awareness of service standards
has increased tremendously.
A customer has an opportunity to form an
impression of the service they receive
from a company at any point of contact.

Research has shown that it takes, on
average, 12 shining moments of truth to
compensate for one dull moment of truth.
     What is Customer Loyalty?



A customer who repurchases year after
year is not necessarily a loyal customer
           What is Customer Loyalty?

     Satisfied customers are not necessarily
     loyal customers.


     20% of                           28% of
   “satisfied”                    “dissatisfied”
   customers                        customers
intend to leave                   intend to stay
     What is Customer Loyalty?


Loyalty is driven primarily by a company’s
interaction with its customers and how well
it delivers on their wants and needs.

Loyalty is based on likelihood to:
   continue as a customer
   buy more
   recommend
         Why is it so Important?

Several studies have shown that loyalty drives
real financial results.
         Why is it so Important?

Several studies have shown that loyalty drives
real financial results.
It cost 5-6 times more to attract new customers
than to keep old ones.
Loyal B2B customers:
 – spend 31% more with their suppliers than the
   average customer .
                                    s
 – 50% more likely to try a supplier' new products.
 – word-of-mouth is a top driver of consumer
   purchase decisions.
10 Commandments of Customer Loyalty




 1. The customer is king (but not always right).
10 Commandments of Customer Loyalty




   2. Know what customers you want.
10 Commandments of Customer Loyalty



3. Know what your customers want and make
   sure they get it.
     Listen well. It takes effort. Concentrate on what the
     customer is really saying.
     Beware of making assumptions.
     Ask questions.
     Listen to their words, tone of voice, body language,
     and how they feel.
             10 Commandments of Customer Loyalty


         4. Making things easy.
                              Identify, understand, and prevent points of needless
                              customer effort. (e.g. # of transfers, first contact
                              resolutions, etc).

                              Help set customer expectations – no surprises; be
                              consistent.

                              Have knowledgeable employees.




Source: ‘Shifting the Loyalty Curve’ (MREB, 2008)
          10 Commandments of Customer Loyalty

             5. Make the overall experience pleasant.
                                   Improve the soft skills of front-line staff.
                                   -         e.g.: Rep confidence, genuine concern/empathy (non-
                                             robotic) , listening ability, understanding the customer,
                                             service personalization, and good follow-through.

                                   Treat them as individuals:
                                                                             •   Welcomed
                                            Make them feel:                  •   Important
                                                                             •   Appreciated
                                                    Use their name           •   That their business is valued

                                                 Thank them when you get a
                                              chance

                                                    Be sincere

Source: ‘Shifting the Loyalty Curve’ (MREB, 2008)
             10 Commandments of Customer Loyalty

        6. Focus on reducing disloyalty.
                             Problems are emotional…. and memories are lasting.
                             Customers speak more negatively about their
                             experiences with services vs. products.
                             Customers are far more likely to spread negative word
                             of mouth than positive word of mouth.
                             Negative word of mouth has greater impact than
                             positive word of mouth.
                             Proactively engage “At-Risk” customers.


Source: ‘Shifting the Loyalty Curve’ (MREB, 2008)
                         Customers view only 20% of the companies
                             they do business with as different.

                                                             30%


                                                                        23%
                                                    21%
            Percentage
                of
            Companies
                                                                                 12%

                                            6%
                                                                                             6%
                                                                                                        2%


                                         Very       Similar Somewhat   Neutral   Somewhat Different   Very
                                        Similar              Similar              Different         Different




Source: ‘Shifting the Loyalty Curve’ (MREB, 2008)
10 Commandments of Customer Loyalty


7. Dare to Be Different.

     You can’t be great at everything.

     Be exceptional in a few areas that are important
     to your customers (and commit to doing better
     than your competitors).

     Invest in other areas to make them good enough,
     but no better than your competitors.

     Look for emotional as well as rational benefits.
10 Commandments of Customer Loyalty


8. Always look for ways to say yes to
   reasonable requests .

     Do what you say you are going to do.

     Show some flexibility.

     Don’t make the 90% who are good customers
     suffer the same rules as the 10% who aren’t.
 10 Commandments of Customer Loyalty

9.
10 Commandments of Customer Loyalty


         Some Startling Statistics


  Only 4% of customers actually complain.

  Around 75% of complaining customers will do
  business with you again, if you act quickly.
10 Commandments of Customer Loyalty


9. When something goes wrong, apologize.


      I’m Sorry
  Value their complaints –it gives us an opportunity to improve.
  Make it simple for customers to complain.
  Deal with problems immediately and let customers know
  what you have done.
10 Commandments of Customer Loyalty


Listen      Sincerely, with full attention; do not
            interrupt.
            Allow the customer to vent.
Empathize   Understand their point of view.
            Show that you care; Be sincere.

Apologize   For the inconvenience caused.
            Be sincere.


Respond     Offer a solution (replace, refund, fix,
            discount, etc.).


No Delay    Act quickly.
            Advise how long.
10 Commandments of Customer Loyalty


   10. Treat Employees Well.

         Treat them with respect.

         Ask for their input.

         Show them they are important.
"If you're not serving the customer, you'd
    better be serving someone who is."

             - Karl Albrecht
“Well done is better than well said.”
            -Benjamin Franklin

				
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