customer attrition vs customer retention

2. LETTER FROM A NICE CUSTOMER
I am a nice customer. You all know me. I am the one who never complains, no matter
what kind of service I get.
I will go into a restaurant and sit quietly while the waiters and waitresses gossip and never
bother to ask if anyone has taken my order, but I don’t complain, I just wait.
And when I go to a store to buy something, I don’t throw my weight around. I try to be
thoughtful of the other person. If a snooty sales person gets upset because I want to look
at several things before making up my mind, I’m just as polite as can be. I don’t believe
rudeness in return is the answer. The other day I stopped at a full service gas station and
waited for almost five minutes before the attendants took care of me. And when he did, he
spilled gas and wiped the wind shield with an oily rag. But did I complain about the
service? Of course not.
I never kick. I never nag. I never criticize, and I wouldn’t dream of making a scene, as I
have seen some people do in public places. I think that’s uncalled for. no, I am the nice
customer. And I will tell who else I am.
I am the customer who never comes back.

3. When I get pushed too far, I just take my business down the street to
places where they are smart enough to hire and train people who
appreciate nice customers. And the world is filled with nice customers,
just like me, who can put anyone out of business.
I laugh when I see you frantically spending your money on expensive
advertising to get me back, when you could have kept me with a few kind
words, a smile, and some good service.
I don’t care what business you are in. Maybe you live in a different town;
maybe I have never heard of you. But if you are going broke or your
business is bad, maybe there are enough people like me who do know you.
I am your customer who never comes back -
Author Unknown.

4. There is only one boss. It is the customer!
The purpose of every business is to create and keep customers. And no
business can thrive without happy customers.
The average business loses around 20% of its customers annually, simply
by failing to attend to customer relationships.
The most profitable businesses thrive on one fundamental - repeat
customer. Getting a customer is important. But keeping the customer
satisfied and happy always is the key to loyalty, retention, growth, and
long-term profitability.
Introduction

5. What We Are Learning Today
At the end of this interactive seminar participants will:
 Understand what exceptional customer service is, and the benefits to an
organization.
 Apply outstanding customer service principles to generate return business
 Recognise how one's attitude affects service standards, and master ways to
develop and maintain a positive, customer focused, attitude
 Identify ways they can add value to customer relationships and exceed
expectations
 Learn how to manage the three most critical customer service encounters
 Discover proactive strategies for regaining customer’s confidence when
things go wrong
 Discover proactive strategies for converting profitable customers into loyal
lifetime partners

6. CUSTOMER SERVICE FACTS
1. A typical business hears from only 4% of
its dissatisfied customers. The other 96% just
quietly go away, and 91% will never come
back. That represents a serious financial loss
for companies whose people don’t know how
to treat customers, and a tremendous gain to
those that do.

7. 2. A survey on “why customers quit” found the
following:
3% move away
5% develop other friendships
9% leave for competitive reasons
14% are dissatisfied with the product
68% quit because of an attitude of indifference toward
the customer by owner, manager, or some
employee.

8. 3. A typical dissatisfied customer will tell
eight to ten people about his problem.
One in five will tell twenty. It takes twelve
positive service incidents to make up for
on negative incidents.

9. 4. Seven out of ten complaining customers will do
business with you again if you resolve the
complaint in their favour. If you resolve it on the
spot 95 percent will do business with you again. On
average a satisfied complainer will tell five people
about the problems and how it was satisfactorily
resolved.

10. 5. The average business spends six
times more to attract new customers
than it does to keep old ones. Yet
customer loyalty is in most cases worth
tem times the price of a single
purchase.

11. 6. Business having low service quality average only
a 1 percent return on sales, and lose market share
at the rate of 2 percent per year. Businesses with
high service quality averaged a 12 percent return on
sales, gain market share at the rate of 6percent, and
charge significantly higher price.

12. 7. A typical corporation loses half of its
customers every five years. Yet, by
increasing the yearly customer retention
rate by as little as five percent,
companies can increase their bottom
line profits from 25- 100 percent.

13. HOW DO YOU DEFINE
EXCEPTIONAL CUSTOMER
SERVICE?

14. DEFINING EXCEPTIONAL CUSTOMER SERVICE
 Customer service is the process of delivering high quality services that satisfies
the needs/wants of a customer and keeps them coming back.
 Delivering EXCEPTIONAL customer service means creating memorable and
extraordinary experiences for customers
 Outstanding Service should provide the customer with more than a product or
action taken on his/her behalf. It should provide satisfaction.
 In essence, the customer should walk away pleased at the result of the
transaction – not just content but actually happy. A happy customer will
continue to be a buying customer and a returning customer.
 Great customer service always results in high levels of customer satisfaction,
return customers, long-term buying relationships and growth in business. Poor
customer service, generally results in customer dissatisfaction, lack of
returning customers and dwindling business.

15. Why Delivering Exceptional Customer Service
Is Important
 Emotional Connection
 Generates Repeat Business
 Improves long-term profitability
 Premium pricing
 Differentiation
 Better Morale
 Positive Word Of Mouth
 Brand Engagement

16. CHARACTERISTICS OF HIGHLY CUSTOMER
ORIENTED ORGANIZATIONS
 High quality products and services
 A high standard of after sales services
 Friendly and helpful staff
 A positive response to customer inquiries and demands
 A “can do”, rather than a “can’t do” approach
 A regular appraisal of the service they provide

17. BUILDING BLOCKS FOR DELIVERING
SERVICE EXCELLENCE

18. 1. The Customer Is The Revenue Generating Side Of Business,
And So Must Be Rewarded First.
 Wal-Mart; founder Sam Walton stated, “There is only one boss-The
customer. And, he can fire everybody in the company from the
chairman on down, simply by spending his money somewhere else."
 You create value when you empower your customers to achieve their
goals with greater satisfaction.
 It is the satisfied customer that tells people how well your products
and services are which in return creates more customers. It is only a
satisfied customer that becomes a loyal lifetime partner.

19. 2. The Most Important Goal Of Any Employee Is To Create And Keep
Customers
Who is responsible for customer service?
 Creating and keeping customers is everyone’s job. Anyone
interacting with the end user of a product or service is
involved in the delivery of customer service.
 Everyone in the organization must work to give the
customer every possible advantage.
 Everyone must focus on keeping customers satisfied.
Delighting the customer is everybody’s responsibility.

20. 3. Only One Thing Really Matter In A Service Encounter-
The Customers Perception Of What Happened.
 The customer’s perception is everything.
 It is not the quality of services you deliver, but
the quality the customer perceives he is getting
that matters.
 Every customer has an opinion of the quality of
services he is receiving. Your job is to shape the
customers perception of the value you are
delivering.

21. Keys To Shaping The Customers Perception
 Develop a customer profile
 Look at your business through your customers eyes.
 Every single contact with the customer is shaping his perception of
your business for better or worse.
 Set Expectations
 Use Problems To Demonstrate What Great Service Your Company
Gives.
 Develop unique relationship with your customers and treat everyone
as someone special.
 Keep in touch and keep them informed

22. 4. To Win The Loyalty Of Your Customers Just Focus On
Solving Their Problems
 People don’t buy goods, they buy solutions to problems.
Customers don’t buy what your company sells or the
services you provide- they buy what these goods and
services can do for you.
 Always maintain a problem solving approach
 Whenever a customer has a problem, calmly ask, what is
the situation now? And what would you like it to be?
 Remember that customers buy for their reasons not
yours.

23. 5. Lasting Impressions- Not First Impressions- Endure
 We prefer doing business with those we like and trust. Impressions are the
key to developing trust and confidence in the customer.
 Customer service represents the face of a company, where first
impressions are created and lasting impressions will either result in repeat
patrons or just a one-time transaction.
 You will never get a second chance to make a first impression. This is why
the first impression is extremely important and can set the tone for all
future transactions.
 Making sure that the customer feel wanted and appreciated can turn him
or her into a lifetime advocate for your service or product offerings,
whether he buys or not.
 The very last thing every customer will remember about your company is
the last service they received.
 Sell satisfaction to people on a daily basis.

24. Factors that create a negative impression:
• Making the customer wait
• Not answering the phone promptly
• Not saying “please” and/or “thank you”
• Raising your voice to customers or colleagues
• Making faces, frowning, not smiling
• Looking dishevelled or like you do not care about your
appearance
• A poor handshake
• Focusing on another task while addressing or servicing a
customer.

25. CREATING POSITIVE LASTING IMPRESSIONS
• Thoughtfulness in meeting the customer’s needs
• Personal responsibility for a customer
• Quick problem solving for customer
• Offering immediate assistance
• Friendliness
• Using customer’s name in a conversation
• Pleasant voice tone
• Polite and courteous manners
• Neatness
• A genuine smile
Remember, impressions stay with those you meet, especially customers, and
once registered; negative impressions are difficult to overcome.

26. 6. Build Trust In Your Customer Relationships
Outstanding service starts with building solid relationships.
 Don’t criticize, condemn, or complain.
 Give honest, sincere appreciation.
 Arouse in the other person an eager want.
 Develop genuine interest in and admiration for your customers.
 Smile.
 Talk in terms of the other person’s interests.
 Make the other person feel important— and do it sincerely.
 Show compassion in your actions affecting the relationship
 Be honest, credible and keep your integrity (if you say something, make sure you do it, on
time!)
 Show you have the competence to act for the mutual benefit of your relationship
 Let them know you are thinking about them.

27. 7. Think Long Term – A Customer Is For Life
Think long term when dealing with customers.

28. SESSION 2:
THE POWER OF YOUR
ATTITUDE

29. SESSION 2:
THE POWER OF YOUR ATTITUDE
A survey on “why customers quit” found the following:
3% move away
5% develop other friendships
9% leave for competitive reasons
14% are dissatisfied with the product
68% quit because of an attitude of indifference toward the customer by
owner, manager, or some employee.
The difference between providing a service and providing an excellent
service is your ATTITUDE. Attitude is everything!

30. What Is An Attitude ?
 A simpler definition of attitude is a mindset or a tendency to act in a particular
way due to both an individual’s experience and temperament.
 Attitudes help us define how we see situations, as well as define how we behave
toward the situation or object. Attitudes include feelings, thoughts, and actions.
 Attitudes cause us to behave in a particular way toward an object or person.
 We can view a person’s attitude from his or her resulting behaviour.
 Your attitude can either be positive or negative.
 If we have a positive upbeat attitude our customers will like and trust us. Being
positive and friendly in customer interactions plays a major part in ensuring that
a customer walks away from the experience having felt that everything was done
in a way that suggested the customer is valued.

31. DIFFERENCES BETWEEN A
POSITIVE AND A NEGATIVE
ATTITUDE AS IT RELATES TO
CUSTOMER SERVICE.

32. Negative Attitude Positive Attitude
Complaining customers are an
inconvenience.
Complaining customers are an
opportunity to get back on track.
It’s management’s responsibility to
solve customers’ problems.
Everyone is responsible for solving
customers’ problems.
Discourage complaints. Encourage complaints.
Attend to problems as they arise. Fix problems before they arise.
Shut the customer up. Hear the customer out.
It’s not my fault. Take responsibility.

33. IMPACT OF A BAD ATTITUDE
 Customer will go elsewhere.
 Sales and profits will be negatively affected.
 Customers will tell their friends and family about
the bad experience.
 A bad attitude has an adverse effect on the
organisation's reputation
 It may have personal consequences for a
customer.
 The customer is dissatisfied.

34. ESTABLISHING A SUPERIOR CUSTOMER SERVICE ATTITUDE
 Make helping the customer the top priority in your job
 Develop a contagious enthusiasm for what you do. People don’t care how much
you know until you show how much you care about what you do-your products
and services, and them –the customers.
 Listen to the customer's problem. Put yourself in the customers’ shoes and show
empathy and compassion for their problem.
 Maintain a sharp appearance. Your appearance counts!
 Smile, it adds value to your face. Smiling is a non-verbal way to communicate a
positive attitude.
 Make each of your customers feel like they are getting 100% of your time.
 Be cheerful and eager to help with any request, problem or complaint.
 Be competent when errors are made since customers will usually forgive you for
an honest mistake that’s fixed immediately.
 Treat customers as you would be treated yourself.

35. Session 3:
`MANAGING THE THREE MOST CRITICAL
MOMENTS OF TRUTH

36. Customer loyalty can only be derived from
exceeding customers' expectations each time
they interact with your company. These
service interactions are referred to as
"moments of truth."

37. 1. DEALING WITH ANGRY OR DEFENSIVE CUSTOMERS
 Stay calm. Try to remain diplomatic and polite. Getting angry will
only make the customer angrier.
 Try to see things from the customer’s point of view.
 Thank the person for raising the concern and do it sincerely.
 Listen for understanding.
 Ask questions to get their facts and feelings
 Find points of agreement with their concerns
 Always show a willingness to resolve the problem or conflict.
 Respond as an understanding friend rather than citing policies.

38. 2. DEALING WITH CUSTOMER
COMPLAINTS
 Begin in a friendly way. Listen with understanding
 Give them an opportunity to vent some of their
frustration. Be empathetic.
 Ask questions to clarify the concern.
 Show the customer that you heard and understood their
concern, and you recognize that it is important to them.
 Find out what the customer wants

39.  Propose a solution and get his support
 Do everything in your power to resolve the practical
aspects of the complaint.
 Ask questions to be sure if you have satisfactorily resolved
the emotional and practical sides of the complaint.
 Turn the conversation away from the complaint, to end on
a positive note.
 Follow Through Make a follow up call to ensure the customer is
satisfied
DEALING WITH CUSTOMER COMPLAINTS

40. 3. SERVICE RECOVERY
 Service recovery processes are those activities in which
a company engages to address a customer complaint
regarding a perceived service failure. It encompasses
all the actions taken to get a disappointed customer
back to a state of satisfaction.
 If service recovery is not regarded as important or
handled well, customer satisfaction can be eroded.
Ultimately, the service provider’s profitability may
diminish.

41. Service Recovery Strategies
 Apologize sincerely, and let the customer know that
you are willing to do whatever it takes to make things
right
 Be positive by telling the customer what you can do
for him
 Do something special for the inconvenienced
customer to regain his confidence and create a
positive impression about the quality of your service.
 Prevent disappointments by planning to always do
things right the first time.

42. SESSION 4:
CUSTOMER RETENTION
STRATEGIES

43. CUSTOMER RETENTION
What is it?
 RETENTION is the act of keeping your current
customers on the books. This action should be an
integral part of the day-to-day activity of running a
business.
 Your retention strategy is how you plan on keeping the
customers you have invested into to acquire.

44. Why it matters
 Reichheld and Sasser (1990) found that by retaining five per cent more
customers, a service provider can increase profits by almost 100 per cent.
 It costs five to ten times more to sell a new customer than to sell an existing
one.
 The odds of selling to a new customer are a challenging 15%, but they
improve to 50% if you are selling to an existing customer
 On the average, the customers you retain provide a much more consistent
and predictable cash flow than that generated from new business.
 Findings have also shown that the practice of building loyalty in customers
is the most important factor to keeping customers in a company or agency.
 Businesses focused on loyalty outperformed their competition when
measured on earnings or profitability.

45. What's Causing Businesses to Lose
Customers?
68% leave because they are unhappy with the
service they receive.
14% are unhappy with the product or service.
9% decide to use a competitor.

46. THE COST OF A DISSATISFIED CUSTOMER
 When customer dissatisfaction goes unnoticed, it can slowly kill a company.
 Dissatisfaction with service providers leads to boycotts
 Accompanying loss of revenue as customer lifetime value decreases.
 Negative word-of-mouth communications
 Dissatisfied—and even customers who are only passively satisfied but not
enthusiastically loyal—typically take a toll on employees and increase
service costs.
 Every dissatisfied customer represents a missed opportunity to add a
promoter to the customer population.
Companies need to go beyond new customer acquisition to customer retention-
nurturing existing customers.

47. PROACTIVE STRATEGIES
FOR BOOSTING CUSTOMER
RETENTION

48. 1. PUT FOCUS ON THE CUSTOMER EXPERIENCE
Defining the customer experience
 Wikipedia® defines customer experience: “…The sum of all experiences
at various touch points a customer has with a supplier of goods and/or
services, over the duration of their relationship with that supplier. This
can include awareness, discovery, attraction, interaction, purchase, use,
cultivation, and advocacy.”
 Burrowing a definition from Forrester Research, we can say that the
customer experience is how customers perceive their interactions with
your organization.

49. A clear customer experience strategy and vision
for your business:
 Paints a vivid picture of how the company wants customers to perceive its
performance
 Clarifies decisions about what employees need to start doing, stop doing, or
do differently.
 Steer customer experience efforts toward long-term business goals.
To really get a handle on the customer experience, you have to step into the
shoes of your customers and see it through their eyes.

50. WHAT EVERY CUSTOMER WANTS FROM THEIR EXPERIENCE
Be Reliable
 Reliability is defined as the ability to provide what was promised,
dependably and accurately.
 Consistent performance is what customers want more than anything. More
than anything else the customer wants service he can depend on.
Be Credible
 In every interaction you want customers to feel like they made the right
choice in choosing your products and services.
 Customers want security, integrity, and the assurance that if there is a
problem, it will be promptly handled at no extra cost.
 In your partnership with customers, you might not always agree, but you
have to make certain that they know you are on their side.
 Credibility brings customers back.

51. WHAT EVERY CUSTOMER WANTS FROM THEIR EXPERIENCE
Be Attractive
 Make the effort to put forth a first class image
 Anything the customer sees, feels, touches, or smells, concerning your
business is shaping his or her opinion about your service for better for worse.
 The physical facilities and equipment and the appearance of personnel is not a
frivolity, it is an investment.
Be Responsive
 Being responsive means being accessible, available, and willing to help
customers whenever they have a problem.
 It also means keeping them informed and providing the service as soon as
possible.
 Make sure you deal with issues as quickly as possible

52. WHAT EVERY CUSTOMER WANTS FROM THEIR EXPERIENCE
Be Empathic
Being empathic, means putting yourself in the shoes of the customer, trying to
understand his point of view, and feeling what he feels.
It means listening intently, asking the right questions, speaking his language,
and tailoring your services to help him as best as you can.
Treat the customer the way he wants to be treated. Customers buy for their
reasons, not ours.
Respect
It’s essential to remember that the customer is paying for your product or
services. This requires a deep level of respect that includes the willingness to
listen and the patience to empathize. That should be obvious in everything from
social media posts to contact with the front office staff.

53.  Define and Design. You have to start by articulating the attributes
you want the customer experience to have.
 Training. It’s not safe to assume staff, will intuitively know how to
create parent experiences that meet your above criteria. This will
require training, and modelling.
 Organizational Alignment. Every department—from marketing
and communications, IT/new media, and the business office—must
have a common understanding of the customer experience that your
business wants to deliver.
STEPS TO CREATING A POSITIVE CUSTOMER EXPERIENCE

54.  Stakeholder Engagement. There has to be buy-in from staff members and lay
leaders. They all need to agree on the importance of creating a positive customer
experience and be prepared to contribute.
 Communications. To be successful, you’ll need feedback mechanisms so
customers can tell you how they perceive their experience.
 Define Expectations. What do customers want from their experience with your
company, products, and services? What are their dreams about using your
products and services, doing business with your company? What do they want
most from your staff? It’s essential to be able to answer these questions in order to
develop a customer experience that is focused on what they really want.
STEPS TO CREATING A POSITIVE CUSTOMER EXPERIENCE

55. EXAMPLES OF A CUSTOMER EXPERIENCE STATEMENT
Maersk Line’s Customer Experience Statement

56. EXAMPLES OF A CUSTOMER EXPERIENCE STATEMENT
Source: EasyJet website

57. YOUR CHALLENGE: Define The Intended Experience
Think about how you are relevant to customers—what do customers really want, what
are the goals and the needs that they really have?”
What do customers want from their experience with your company, products, and
services? What are their dreams about using your products and services, doing business
with your company?
What positive experience do you want your customers to have? What memories do you
want your customers to have at the end of interacting with you, your products, services?
What emotions do you want customers to feel that should drive value for your business?

58. 2. TRACK CUSTOMER SATISFACTION
 John R. DiJulius III notes that while 80% of companies surveyed
reported providing superior customer service, only 8% of customers
surveyed described their experience with those companies as superior.
 The best companies in the world focus heavily on creating amazing
customer experiences. To create amazing experiences, you first need to
measure and track customer satisfaction.
 Customers have an opinion about the quality of service you offer, and
collecting, gathering, and measuring those opinions on a regular basis
provides the crucial information that you need to keep them buying,
multiplying, and coming back.

59. TRACK CUSTOMER SATISFACTION
 It is important for your employees to know how they are doing, and it is
important for you to know if your customers are satisfied with your services.
 Have a regular systematic effort to ask your customers regularly, “how are we
doing?”, and “how can we get better?”
 Feedback from a survey gives you the opportunity to follow up with your
happiest customers (to turn them into advocates), and your unhappiest
customers (to fix problems and retain their business).
 Look for answers, suggesting strengths, weaknesses, and ideas for
improvements.
 The end goal of a customer satisfaction survey is to get actionable customer
feedback that you can use to improve the overall customer experience.

60. HOW TO BEGIN
1. Construct a brief written survey
questionnaire.
 To get a clearer picture of what customers
perceive as your strengths and weaknesses,
construct a list of questions about how
important specific aspects of your service, and
ask customers to rate you on a scale of 1-5 or
1-10 on each question.

61. 2. Survey your customers by telephone
 Overall how would you rate the quality of our
service? How willing would you be to buy from us
again? Would you recommend us to your friends?
How can we better serve you? What parts of our
service are most important to you?
 The idea is to get an accurate reading on specific
aspects of your services that the customer’s feels
are important.

62. 3. By all means get feedback from your ex
customers
 When customers stop returning, someone in the
organization needs to find out why. The beginning
is leadership and soliciting customer feedback; the
end is a great customer experience.
 When customers quit, you need to know why they
quit, and what you can do to get them back.
Whatever you do don’t let regular customers quit
without finding out why.

63. 4. Once you start getting information, put the
information you get to work.
 Make a list of problem areas that need improvement most
and rank them in order of importance.
 Target the most important ones for immediate
improvement, and ask everyone, what can each of us do to
improve this?
 Build on your perceived strengths as you discover them, and
emphasize them in your marketing and advertising. This will
remind your existing customers of the good reasons of
staying with you, and give potential customers reasons to
buy.

64. 5. Keep asking and improving.
 It is best to gather data on a regular
basis; monthly, quarterly, twice a
year, or annually to how your
customers view your business
overtime.

65. 3. YOUR UNIQUE VALUE
PROPOSITION IS KEY TO LOYALTY
Customers are the most important asset of
any business, so, the number one priority to
acquire and retain customers is by creating a
compelling value proposition that resonates
with customers.

66. Value Proposition: What is it?
 A value proposition is a statement that describes
the benefits customers can expect from using
your products and services, and why it is a better
choice than the alternatives.
 It is a concise, memorable statement that
answers the question, “Why should I buy from
you and not somebody else?”
 It presents all the benefits and values that the
business promises to deliver to its customers.

67. Identifying your unique value propositions
requires three somewhat simple steps:
 Identify your ideal prospect
 Understand how you bring them value
 Know what you offer uniquely well, or at least
better than most

68. A good value proposition statement is built on the
below fundamental framework:
 For ( the target customer)
 Who (specific needs, demands, buying criteria etc.)
 We provide (solution name / brand description)
 That ( specifies benefits and business values to clients)
 Unlike (the competition)
 Who ( provide solution, features, functions, benefits)
 Our company (better approach, solution, functions, benefits)
 That (offers a better customer experience)

69. YOUR CHALLENGE: Define Your Unique Value Proposition
 What problems are you motivated to solve for your customers?
 How are your customers’ lives improved after they’ve used your
service/product?
 What is it that makes you or your business different from others?
 How is what you do different than all the other potential solutions?
What do you bring to the table that the majority of others don’t?
 What makes your offer impossible to duplicate or imitate?
 Which is the reason why your solution is better than the competition’s
in some notable way. What can your solution do that the others can’t?
 What does your product or service offer that our competitors’ products
or services don’t offer, and what is the specific benefit for our
customers?”

70. 4. Effective Complaint Management Leads to
Loyal Customers
Customer complaints are important and they
should be encouraged. Having a process to resolve
complaints helps assure that we deal with the
emotional and practical aspects of the issue.

71. HERE ARE SOME FACTS
• The average business never hears from 96% of its unhappy customers.
• For every complaint received, the average company has 26 customers with
problems—six of which are “serious.”
• Complainers are more likely than noncomplainers to do business again with
the company that upset them even if the problem is not resolved satisfactorily.
• 54%-70% of customers who register a complaint will do business again with
the organization if the complaint is resolved. That figure goes up to a
staggering 95% if the customer feels that the complaint was resolved quickly.

72. Importance Of Complaints
 Complaints point out areas that need
improvements
 Complaints give you a second chance to provide
service and satisfaction to dissatisfied customers
 Complaints are a wonderful opportunity to
strengthen customer loyalty

73. USING COMPLAINTS
PRODUCTIVELY

74. 1. Make it easy for your customers to complain and your customers
will make it easy for you to improve.
 Informed customers know how your services should work. If things are not
working, customers are the first to know.
 Use feedback from calls, letters, and surveys to identify and resolve root
causes of dissatisfaction and change your services to ensure that the customer
will be quickly satisfied.
 Respond to complaints quickly and courteously with common sense and you
will improve customer loyalty.
 Customers reward companies that quickly solve problems by remaining loyal
customers.
 A speedy response can add 25 percent to customer loyalty.
USING COMPLAINTS PRODUCTIVELY

75. Toyota Motor Sales USA, Inc. has adopted a
formula for customer satisfaction; doing the job
right the first time + effective complaint
management = maximum customer
satisfaction/loyalty.
USING COMPLAINTS PRODUCTIVELY

76. 2. Resolve complaints on the first contact
 This saves money by eliminating unnecessary
additional contacts that escalate costs and
 This builds customer confidence.
USING COMPLAINTS PRODUCTIVELY

77. 3. Technology utilization is critical in complaint
handling systems.
Use your computers electronically compile customer
complaint information and present it to everyone, including
management, so that the organization could better align
services and products to meet customer expectations.
USING COMPLAINTS PRODUCTIVELY

78. 4. Recruit and hire the best for
customer service jobs
It is important to remember that a customer
that complains is doing you a great service!
USING COMPLAINTS PRODUCTIVELY

79. 5. Reward Customer Loyalty
 Customers like hearts go where they are appreciated.
 Customers want to be appreciated. You must understand
the crucial importance of rewarding customers who have
been loyal to your company.
 The organization and leaders should give serious
consideration to how they plan on saying thank you to
their customers.

80. Some Ideas you can implement to Reward Customer Loyalty
 You recognize your valued customers with gestures that say, "We
appreciate you for giving us your business".
 Reward with more for less: give your most loyal customers access to
special discounts, and special promotion offers.
 Develop non-monetary rewards around what your loyal customers
value the most. Special occasions – be they seasonal holidays or
birthdays of the customer – are great opportunities to offer discount
deals or special offerings to loyal customers, who feel as if you value
them as individuals rather than as just another person to make a sell
from.
 Use branded gifts

81. • Something that will help bring customers back to
your brand again and again is a feeling of
empowerment. Asking for feedback makes
customers feel valued, and you might receive some
useful recommendations in the process.
 Reward your customers with quality products and
services that deliver more value for their money
Some Ideas you can implement to Reward customer Loyalty

82. Other common customer loyalty programs
 Points-based loyalty program
 Use a tier system (special status) loyalty program
to reward initial loyalty and encourage more
purchases.

83. 6. Employee Engagement Drives Customer
Satisfaction and Loyalty
 Happy employees create happy customers
 Engaged employees can be described as being fully immersed in and
enthusiastic about their work.
 Engaged employees usually have an emotional attachment to their work
and will go above and beyond what is expected of them on the job.
 This enthusiasm and emotional attachment fuel employee actions in ways
that support the organization’s interest and move it forward.

84. Customer Care Fact:
 Employee engagement is integral to customer satisfaction. A 2009 Gallup report
looked at the impact of customer and employee engagement. Companies in the
upper half of both customer and employee engagement get a 240% boost in
bottom line results.
 A key finding by the Northwestern University Forum for People Performance
Management and Measurement is that organizations with engaged employees
have customers who use the company’s products and services more often and
with higher satisfaction than customers of companies with disengaged
employees.
 A report by the Aberdeen group shows that, companies that have an employee
engagement program enjoy 233% greater customer loyalty.

85. How do companies cultivate employee engagement in order to drive
customer satisfaction and loyalty?
 Value Employees -- Employees are a source of ideas for product and service
enhancements. Treat your employees the way you want them to treat your
customers.
 Set customer focus standards -- Decide standards your company stands for.
What service values you want to hold. Transfer it to everyone in the organization.
Stick with it, and back it up with performance.
 Carefully Select The Right People -- Hiring the right people for the right
position in the right job influences the potential for employee engagement. If
employees are passionate about what they do and the business they are in, they will
deliver products and services that exceed expectations. Employee passion is
contagious and stimulates customer satisfaction and return business.

86.  Set up your employees for success with the right training and tools to
deliver quality customer experience. Quality employees are crucial
ingredients for quality service. Customer service training should be thorough and
a continuing part of every employees job.
 Set service performance goals. Connecting the work of individual employees
to your organization’s vision can provide a similar sense of purpose for them.
The leader should set his performance goal first and then share it with the team,
and then ask them to set goals that will contribute to the achievement of your
goal. Make delivering great customer experience a purpose of all work for
employees.

87.  Recognise and reward employees for great customer service
Recognition is also important in creating an engaged workforce. And, that
recognition need not be costly. A verbal ‘thank you’ and a smile go a long way
to personalize and acknowledge a job well done.
Everyone from top to down should be rewarded on the basis of some
measurable contribution to service quality.
 Ask everyone in the organization for service improvement ideas.
Employees want to have an impact, and they want to do a good job. Ask and
listen.
 Empower your employees to solve problems for the customer. Give
employee the autonomy to do what is right for the customer.

88. 7. Make Customer Advocacy A Strategic Goal
• Customer advocacy is important for all businesses because
we now live in a world where the most important person
selling your product or service is no longer you – it’s your
customer.
• Customer advocates are your brand ambassadors and
biggest marketing asset
• As a company, you need to be creative and find a way to
put your happy customers in front of these buyers.

89. Four reasons why customer advocacy is important to your
business.
1. Word of mouth is the primary factor behind purchasing
decisions
A study by McKinsey & Company found that word of mouth is the
primary factor behind 20-50% of all purchasing decisions.
Interestingly, the same study found that word of mouth is most
influential when a customer is buying a product for the first time or
the product is relatively expensive.

90. 2. People trust friends and family more than any
other information source
According to research by Nielsen that looked at
consumer trust, 92% of respondents trust
recommendations from people they know, which is well
above any other information source. Ads on TV are only
trusted by 47% of respondents, while online banner ads
are trusted by a measly 33%.

91. 3. Referred customers typically cost less to
acquire and are less price sensitive
Customers acquired through customer advocacy can
cost less to acquire and be more profitable than
customers acquired through other paid and unpaid
marketing channels.

92. 4. Advocates are repeat customers who
spend more money
Customer advocates don’t just refer new customers
– they are also valuable repeat customers. They
come back and buy from you regularly.

93. Converting Customers into Loyal Advocates
1. Identify potential advocates, and tailor
your offerings to their interest
Spend time identifying potential advocates,
understanding what would be of value to them and
then building a reward system that is aligned to
their profiles and preferences.

94. 2. Ask for referrals
 Remind customer of their specific benefits.
 Describe the challenges faced and benefits
received by your customers.
 Identify a benefit for giving a referral. How
 could your current customer (or anyone)
 benefit from referring this person to you?
 Suggest they already know someone.
 Ask for an introduction.

95. 8. STRIVE FOR ZERO DEFECTION
“Rule No.1-never lose a customer,
Rule No.2- refer to rule No.1”.
-Warren Buffet

96.  Make everyone in the organization understand that zero
defection is the goal
 Get employees understand the lifetime value of a
customer
 Design employee training to emphasize the importance of
keeping customers
 Leadership must learn from defecting customers
 Use incentives to drive customer retention targets

97. THANK YOU!!!