Watch this with a 10-15 minute audiotrack at http://vimeo.com/novusprogram/lesson16 This lesson discusses customer service and why preserving long-term customer satisfaction is as important as other business assets and how it can be used as a competitive tool. It examines strategies to maintain customer relationships and describes the value of Customer Lifetime Value (CLV) as a business concept. The Novus project is a combination of video tutorials designed to be used in conjunction with a free business simulation software program. The Novus Business and IT Program contains 36 business and IT training videos, covering basic finance, accounting, marketing, economics, business strategy, Word, Excel, and PowerPoint. Users will have an opportunity to apply the lessons in the Novus Business Simulator. Over six rounds, the user or teams will have to make decisions on capital purchases, financing, production, financing, and human resources for a microbrewery. This channel has arranged the 36 video lessons into the order in which they are meant to be used with the simulator. To watch this slideshow as a video, please go to our Vimeo page at: https://vimeo.com/novusprogram. To download our free business simulation software, please go to our SourceForge page at: http://sourceforge.net/projects/novus/.

1. Customer Relationship
Management
Objective: This lesson discusses customer service and why preserving long-
term customer satisfaction is as important as other business assets and how
it can be used as a competitive tool.
Novus Business and IT Training Program

2. Customer Service
Poor Customer Service can ruin a
business,
but…
Great Customer Service can overcome
almost anything!
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3. Satisfy Your Customers
Good Customer Service :
• Provides sincere, honest, and reliable service
• Listens to customers
• Helps customers even if it means sending them elsewhere
• Ensures the customer understands the product
• Deals kindly with complaints on a timely basis
• Employs a knowledgeable and trained staff
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4. Employees Are Your Representatives
• Treat employees well
• They are as important as customers
• Both are vital to your business
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5. Keep Customers Coming Back
What you can do:
• Offer Personalized Treatment
• Be Reliable
• Be Flexible
• Build Trust
• Get Personal
• Be Here to Stay
• Do Something Unexpected
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6. Continued and Consistent Communication
What you can do:
• Focus on current customers
• Get personal
• Write Thank-You notes
• Telephone customers
• Reward repeat customers with small gifts or discounts
• Ask your customers for comments
• Have a “Customer Appreciation Day”
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7. Customer Lifetime Value (CLV)
Aprediction of the net profit attributed to the
entire future relationship with a
customer, sometimes known as Customer
Equity.
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8. How to Determine CLV
• Gross Profit, Customer Retention Costs, and
Customer Retention Percentage
• Divide into Customer Groups:
- For each group, determine “purchasing lifetime”.
- Count the total number of purchases they make over a
length of time.
- Determine average amount purchased in a single visit.
- Calculate the CLV for each segment.
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