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Chapter One. Chapter 1 Know Why Service Matters. Healthy relationships: Key to business and personal success. Succeed by attracting, keeping loyal customers “Service economy” not as it should be. What Happened to the Service Economy?. Ignoring customers Unmet promises - PowerPoint PPT Presentation
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Chapter One
Chapter 1Know Why Service
Matters
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
2
Healthy relationships: Key to business and personal success
Succeed by attracting, keeping loyal customers
“Service economy” not as it should be
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
3
What Happened to the Service Economy?
Ignoring customers
Unmet promises
Incomprehensible customer service people
Jargon instead of answers
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
4
Ockham’s razor
Wal-Mart vs. K-mart
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
5
Satisfied customers lead to success
K-mart sales about $50 Billion/yr Wal-Mart sales about $400 Billion/yr
But they sell the same stuff for about the same prices from the same type stores in the same locations . . .
Same, same, same . . . DIFFERENT
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
6
A “customer” is someone with whom we exchange value
Money for a product or service
Work for wages
Time as a volunteer
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
7
No one succeeds without loyal customers
External customers: transactions involving an exchange of money
Internal customers: employees and co-workers
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
8
Relationships with customers can become partnerships
Ongoing relationships Service intimacy Generosity, trust Share joint purpose Speak truth with compassion and care
Pursue equality with grace
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
9
Positive word of mouth gets and keeps customers
Cost of getting a new customer A friends’ advice or recommendation
Turbocharge with email, blogs, or other electronic communication “word of mouse”
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
10
How do you calculate the cost of a lost customer?
10-30% loss of customers per year
Customer retention programs= profits jump 25-100%
Ripple effects
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
11
What are the numbers behind an unhappy customer?
An upset customer tells 10-20 other people
These tell five more The total number affected by one poor experience = 50 to 100!
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
12
How much does it cost to replace the unhappy customer?
Five to six times more than keeping existing one
About $118 to get a new customer
About $19 to keep one
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
13
Some key change in the diverse nature of customers
Most diverse customer base ever Wider age range of employees and customers More 60+ customers
Broader globalization means customers from all around the world
More work/life balance
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
14
Few companies fully back their promise with strategy that
Makes customer satisfaction/loyalty key strategic goal
Trains all employees to use behaviors that make customer feel important
Translates slogans into actions that convey caring to customers
Customer Service, 5ePaul R. Timm
© 2011, 2008, 2005, 2001 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
15
Your number one task, regardless of your job title, will always be to attract, satisfy, and preserve loyal customers.
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