Chapter 3 Customer Behavior, Customer Loyalty, and Exceptional Service

1. Chapter 3Customer Behavior, Customer Loyalty, and Exceptional Service Objectives • Describe customers’ buying behavior relative to their basic needs. • Distinguish between customer satisfaction and customer loyalty. • State the relationship between customer expectations and customer perceptions. • Describe methods companies use to measure customer satisfaction. The World of Customer Service, 2e Odgers

2. Basic Customer Behavior involves: Why they buy How they buy What causes them to return Four Customer Needs: Need to be understood Need to feel welcome Need to feel important Need for comfort Understanding Customer Behavior The World of Customer Service, 2e Odgers

3. Earning Customer Loyalty • Tips to Earn Repeat Business from Customers • Ask questions • Be honest • Fix problems • Learn from the competition • Back up your company’s promises • Offer one-stop service • Build on emotion-friendly service culture The World of Customer Service, 2e Odgers

4. Customer Turnoffs • Value turnoffs • Include inadequate guarantees, a failure to meet quality expectations, and high prices relative to value received • System turnoffs • Include irritations relative to the way a company delivers its products or services • People turnoffs • Include showing lack of courtesy or attention, showing an unprofessional behavior, projecting an indifferent attitude The World of Customer Service, 2e Odgers

5. Offering Exceptional Customer Service • Exceptional customer service occurs when the customer gets more than they expected • Customer expectations • What a customer wants before a transaction • Customer perceptions • What a customer identifies as quality of service during and after the transaction The World of Customer Service, 2e Odgers

6. Critical First Impressions • “You never get a second chance to make a first impression” • Baseline standard • The minimum level of service it takes to satisfy customers under ordinary circumstances The World of Customer Service, 2e Odgers

7. Empowerment • “Giving somebody power or authority” • Benefits • The elimination of nearly all multilevel problem solving that involves management • An empowered staff reduces the amount of time customers spend reaching satisfactory conclusions The World of Customer Service, 2e Odgers

8. Measuring Customer Satisfaction • Customer satisfaction is in the eye of the beholder (the customer) • The best way to measure customer service is to Ask Your Customers The World of Customer Service, 2e Odgers

9. Measuring Customer Satisfaction • When customers are asked about the level of service they receive, it • Helps the company set realistic goals and monitor trends • Provides critical input for analyzing problem areas • Assists the company in monitoring progress toward improvements • Keeps the company close to its customers The World of Customer Service, 2e Odgers

10. Measurable CustomerService Standards • Examples: • Answer telephones by the third ring. • Serve hot food at a temperature of at least 140 degrees. • Smile and greet all guests within 10 feet of you. • Respond to each shopper, so that he or she does not stand in line more than two minutes. • Offer bellman or concierge service to every hotel guest. • Speak professionally to clients and avoid the use of slang expressions. The World of Customer Service, 2e Odgers