CUSTOMER SERVICE

AND

LOYALTY DEVELOPMENT

S E S S I O N S I X

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Mostafa Purmehdi

HEC Montreal

Understand Customer Service

Expectations, Satisfaction, Loyalty, Profitability

O B J E C T I V E S

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Services are

PERISHABLE

INTANGIBLE

VAIRABLE

INSEPARABLE

of Canadian employment

in 2009

75%

of Canadian GDP

in 2009

2/3

INTANGIBLE

TANGIBLE

SERVICE

ORGANIZATION

EMPLOYEES

CONSUMERS

INTERNAL

MARKETING

EXTERNAL

MARKETING

INTERACTIVE

MARKETING

Components of Customer Service

O B J E C T I V E S

CUSTOMER SERVICE

A Compnay's

Relationship

w i t h i t s

CUSTOMERS

E v e r y t h i n g t h a t

customers experience

when doing business

w i t h a c o m p a n y

T h e O B J E C T I V E i s

to best satisfy customers

in a cost - effective way

and build customer loyalty

MANAGING CUSTOMER SERVICE

m e a n s m a n a g i n g a l l

experiences and expectations

WHO IS THE CUSTOMER HERE?

CUSTOMERS

deciders

buyers

gatekeepers

initiators

influencers

end user

PROFITABILITY

SATISFACTION

LOYALTY

Studying customer expectations
Establishing a customer service vision
Enhancing moments of truth
Measuring customer satisfaction
Delivering customer service interactions, in line with the customer service vision
Customer databases
Selecting and implementing loyalty-building strategies
Continuously reinforcing the quality of customer service

Customer Service

Components

Honesty

Accessibility

Attentiveness

Speed

Competence

Helpfulness

Courtesy & Respect

Advice

Empathy

Discretion

Customer Recognition

Confidentiality

Flexibility

Convenience

Adaptation

Protection

there are 2 more missing.

EXP

ECT

AT I

ON

Establishing a customer service vision: Type and Level of customer service, not necessarily the maximum level or an exceptional level

CONSISTENT

SIMPLE

MOTIVATING

PROFITABLE

YET REALISTIC

DEMANDING

EASY to UNDERSTAND

CUSTOMER SERVICE VISION

ENHAN

CING

MOMENTS

of TRUTH

SATISFACTION

MEASURING

CUSTOMER SATISFACTION

SINCE

1990s

ACSI

American Customer Satisfaction Index

Hitler finds out his IT support team

doesn't measure customer satisfaction

Importance of

Building a Relationship

O B J E C T I V E S

romantic

DEFINITION

behavioral

DEFINITION

Length of

Customer Retention

5 years

80%

50%

33%

3%

FIRST

W H A T I S T H E

QUESTION

A B O U T L O Y A L T Y ?

WHOSE LOYALTY SHOULD WE DEVELOP ?

Loyalty Building STRATEGIES

Customer satisfaction
Reasonable constraints (switching costs)
Promotional loyalty programs
Direct efforts to increase customer share
Maximum customer service
Personalization
Systematic customer recovery and win-box

Customer Satisfaction

Reasonable Constraints

Promotional
Loyalty Programs

Personalization

Systematic Recovery

and customer win-back

CUSTOMER SERVICE

LOYALTY DEVELOPMENT

Mostafa Purmehdi

Understand Customer Service

in 2009

75%

in 2009

2/3

Components of Customer Service

CUSTOMER SERVICE

WHO IS THE CUSTOMER HERE?

CUSTOMERS

deciders

buyers

gatekeepers

initiators

influencers

end user

Components

EXP

ECT

AT I

ON

ENHAN

CING

MOMENTS

of TRUTH

SATISFACTION

MEASURING

1990s

ACSI

Importance of

Building a Relationship

Length of

Customer Retention

80%

50%

33%

3%

FIRST

QUESTION

WHOSE LOYALTY SHOULD WE DEVELOP ?

Loyalty Building STRATEGIES

Customer Satisfaction

Reasonable Constraints

Promotional Loyalty Programs

Personalization

Systematic Recovery

THANK YOU

For Your Attention

Promotional
Loyalty Programs