Building Customer Loyalty and Advocacy Course Summary

© Jaguar Land Rover 2016

Course Objectives In this online course you will explore why customer loyalty and advocacy are important and how everyone at Jaguar Land Rover has a role in driving loyalty and advocacy. Customer First Principles Customer First Principles are a key tool to help us build customer loyalty and advocacy in everything we do. Review the Customer First Principles in the download document that accompanies this course. Customer Loyalty and Advocacy What are customer loyalty and advocacy?

A loyal customer is a buyer who returns and buys another JLR product or service and is not solely interested in the price.

Advocacy means your customer is so pleased that they actively tell others how good your products and services are.

Loyalty and Advocacy applies only to existing Jaguar Land Rover customers. Conquest customers, for example, may well be prepared to pay more for Jaguar Land Rover products and services but they are not yet loyal customers. Genuine advocate customers will provide referrals but will also make it their business to promote your Retailer and Jaguar Land Rover whenever possible. Why are loyalty and advocacy important? The statistics on customer loyalty and advocacy speak for themselves:

It’s 6-10 times more expensive to acquire a new customer than to sell to an existing one.

On average, a 5% increase in customer retention can generate a 25% increase in profit.

According to a Harvard Business School study, 48% of customers who have had a bad experience with a company will personally tell 10 or more people.

Brands who deliver a bad customer experience can lose up to 65% of revenue from that customer in the flowing year and 64% of those customers will stop recommending the brand, leave or give a bad internet review

JLR’s global percentage of returning customers is currently 56%. Our target for 2020 is 75%. We will achieve this by delivering a premium service to our customers the first and every time. Digital channels and customer loyalty and advocacy Social media and other digital channels can have a big impact on customer loyalty and advocacy. Take a look at these accounts to see the JLR social presence: https://www.facebook.com/JaguarUK https://www.youtube.com/user/JaguarCarsLimited https://www.instagram.com/landrover https://twitter.com/LandRover https://plus.google.com/+jaguarcars Digital and social media have changed the way businesses interact with customers and prospects. They can drive customer loyalty and advocacy, but there are pitfalls too.

Building Customer Loyalty and Advocacy Course Summary

© Jaguar Land Rover 2016

The best way of building customer loyalty and advocacy is by delivering consistent product quality and premium service. Your Role in Customer Loyalty and Advocacy We all play a part in customer loyalty and advocacy because everything we do has an impact on the customer. It’s a mind-set; everyone who represents Jaguar Land Rover needs to share responsibility, whether in an internal role or a customer-facing role. We need to be proactive and take personal responsibility for getting things done. We need to make it effortless and simple for the customer. We need to work as a single team not a series of departments or individuals. The first touch point with our customers, whether by phone or email, on the forecourt or in the sales office, is the one that will stick. So we need to make it a good one! Measuring Customer Loyalty and Advocacy If you can’t assess it, you can’t manage it! We use a selection of different tools to assess customer loyalty and advocacy so that we can continue to improve it: The Customer Experience Insight Programme (CEIP) is the process that helps us to assess customer satisfaction levels. This is achieved using a questionnaire sent to customers which assesses the service they have received from their retailer. The questions measure customer satisfaction at key ‘touch-points’. The results are structured to benchmark against other JLR retailers and also industry levels as well, e.g. New Car Buyer Survey. ‘Voice of the Customer’ (VoC) are verbatim comments from customers taken from various Jaguar Land Rover surveys such as the CEIP survey. VoC tells us exactly what they think of the service they have received and, for example, what you could change or improve. These are the customers’ own words. They give critical insight into exactly how the customer feels and can apply to both direct and indirect contact with retailer staff. VoC comments should be reviewed immediately to identify changes in processes or behaviour which would meet customer needs more directly. The Net Promoter Score (NPS) is a key measure of customer advocacy. It measures the degree to which your customer would recommend your retailer to others. The score is calculated by deducting the percentage of ‘detractors’ (low scores) from the percentage of ‘promoters’ (high scores). All Jaguar land Rover NPS scores are based on Question 1 of the CEIP survey - “Would you recommend this retailer?” Customers who score 9 or 10 in Q1 are considered to be ‘Promoters’.