Better service

18. Sep 2013

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Better service

  3. Who is a customer ? • A customer is someone who makes use of the paid products of an individual or organization. This is typically through purchasing or renting goods or services. Walton
  4. Customer Satisfaction.. • When customer’s expectations are met Walton
  5. • When Customer’s expectations are exceeded Walton
  6. Customer dissatisfaction.. • When customer’s expectations are not met Walton
  7. Why do customers quit ? • 1% Die • 3% Move away • 5% Form other friendship • 9% For competitive reasons • 14% Due to product dissatisfaction • 68% due to indifferent attitude by the staff towards customers. Walton
  8. What does an unhappy customer do? • Suffers in silence • Switches to the competitor in silence • Tells friends and neighbors • Talks to third parties like Press, lawyers.. • Talks to the Company – Whom do you feel the best ? Walton
  9. Customer (dis)satisfaction • 96% of dissatisfied customers never complain to the business, but 91% will not make return purchases • 70-85% of dissatisfaction is due to customer service not product; 68% of customers who stop buying do so because they perceive an employee as discourteous or indifferent • dissatisfied customers on average tell 12 friends of the poor service; satisfied people tell 5 friends (2:1 ratio • 70% will return if complaint is resolved, and 95% of customers would do business again if a problem is resolved quickly and effectively • highly effective companies spend 10% of their operations budget on fixing problems related to customer complaints; ineffective ones spend 40% • the average business loses 10-30% of its customers each year (without knowing which, when or why lost) • it’s more costly to win a new customer than to lose an existing one (5- 7 times greater); it takes 12 positive incidents to make up for a negative one • Customers are three times more likely than service providers to recall the quality of the personal element in a transaction Walton
  10. Customer expectations influence the evaluation of quality and forecast (from customers’ pre- purchase perspective) how well the product or service will perform. Perceived quality refers to overall quality, reliability, and the extent to which a product or service meets the customer’s needs; this shows the greatest impact on customer satisfaction. Perceived value is measured through overall price given quality and overall quality given price; it has somewhat less impact on satisfaction and repeat purchase. Customer complaint activity is measured as the percentage of respondents who reported a problem with the measured companies’ product or service within a specified time frame; it has an inverse relationship to customer complaints. Customer Loyalty is measured by likelihood to purchase a company’s products or services at various price points. Customer satisfaction has a positive effect on retention, but the magnitude of that effect varies greatly across companies and industries. ACSI Components (American Customer Satisfaction Index) Walton
  11. Some key points on developing loyalty • Since what was once unexpected/unstated becomes expected/stated, you must keep innovating • Performance excellence occurs by design, not default • All parts of the organization are part of creating customer loyalty • Reliability: Keeping your promise, doing what you said you will do. Doing things right the first time. • Assurance: Making the customer feel safe in their dealings with you, being thoroughly professional and ethical. • Tangibles: How the product/service looks to the client, the appearance of personnel and equipment, etc. • Empathy: The degree to which the organization and service personnel understand the individual client and their needs, the ability to adapt the service to each client, the willingness to 'go the extra' for the client. • Responsiveness: The availability, accessibility and timeliness of the service. The ability to respond to enquiries and complaints in a timely fashion.
  12. Dealing with difficult customers.. • Don’t return anger to anger • Take control- assert yourself • Never promise what can’t deliver • Let them vent their anger • Show concern and sympathy • Apologize, even if it is not your fault • Offer solution Walton
  13. You don’t understand. I don’t know. I can’t… You don’t see my point. Hold on (or hang on) a second. Our policy says (or prohibits)… That’s not my job/responsibility. You must/should… You’ll have to… What you need to do is… What’s your problem? Why don’t you…? I never said… Words & phrases that damage customer relationship “I’ll find out for you”; “I’ll need to check on that and get back to you”; “I’ll have to look that up, when is a good time for me to call you back?” Walton
  14. Words & phrases that build customer relationship • Please. • Thank you. • I can/will… • How may I help? • I was wrong. • You’re right. • I understand how you feel. • May I …? / Could we try …? • Have you considered … • I’m sorry for … • It’s my/our fault. • What do you think? • Would you mind? Walton
  15. Express empathy to customers Use empathic phrases: • “I can see why you feel that way” • “I see what you mean” • “That must be very upsetting” • “I understand how frustrating this must be” • “I’m sorry about this” • Always say you’re sorry Walton
  16. Golden rules for listening.. • Put yourself in customer’s shoes • Stop the chatter inside your head • Concentrate on what is being said • Show that you are listening • Check details if you are in doubt • Be aware of what is being missed by customer • Write down the details.. Walton
  17. FEEDBACK • Comment Card. • Customer Questionnaire. • Focus Groups. • Toll Free Telephone No. • Customer Visits. • Report Card. • Internet & Computer. • Employee Feedback. • Customer complaints Walton
  19. Thank you.. Walton