© 2012 by robert w. lucas chapter 10: encouraging customer loyalty

© 2012 by Robert W. Lucas

Chapter 10: Encouraging Chapter 10: Encouraging Customer LoyaltyCustomer Loyalty

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Learning OutcomesLearning Outcomes

• 10-1 10-1 Establish and maintain trust with customers.Establish and maintain trust with customers.• 10-210-2 Explain customer relationship management and Explain customer relationship management and

explain its importance to quality service.explain its importance to quality service.• 10-310-3 Develop the service provider characteristics Develop the service provider characteristics

that will enhance customer loyalty.that will enhance customer loyalty.• 10-410-4 Describe the provider’s responsibility for Describe the provider’s responsibility for

establishing and maintaining positive customer establishing and maintaining positive customer relationships.relationships.

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Learning OutcomesLearning Outcomes

• 10-510-5 Identify strategies that can be used to make Identify strategies that can be used to make customers feel like they are number one.customers feel like they are number one.

• 10-610-6 Discuss strategies that can enhance customer Discuss strategies that can enhance customer satisfaction.satisfaction.

• 10-710-7 Define quality service. Define quality service.

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Trust and Customer ServiceTrust and Customer Service

• Customer loyalty• Trust and customer relationships

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• The dimensions of customer trust and loyalty – Experience– Knowledge– Deference– Reference– Glitz

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• Strategies for Building Trust– Communication– Display caring– Be fair– Admit errors

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• Strategies for Building Trust– Trust your customers– Keep your word– Provide peace of mind– Take responsibility for customer relationships– Personalize your approach– Keep and open mind– Individualize service

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• Strategies for Building Trust– Show respect for the customer– Elicit feedback

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Customer Relationship ManagementCustomer Relationship Management

• What is CRM?• CRM Concept• Fostering relationships with CRM

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Customer Relationship ManagementCustomer Relationship Management

• The benefits of CRM– Costs– ROI– Loyalty– Profitability– Targeted marketing

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Channel PartnershipsChannel Partnerships

• The Role of Channel Partnerships• Types of Channel Relationships

– Transactional– Tactical– Strategic

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Service Provider CharacteristicsService Provider Characteristics

• Characteristics that affect customer loyalty– Responsiveness– Adaptability– Communication skills– Decisiveness– Enthusiasm

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• Characteristics that affect customer loyalty– Ethical Behavior

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• Characteristics that affect customer loyalty– Taking initiative– Knowledge– Perceptiveness– Ability to plan– Problem solving ability– Professionalism

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Making the Customer Number OneMaking the Customer Number One

• Service churn– Define

• Initial contact• Rapport• Identify/satisfy needs• Exceed expectations• Follow up

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Customer Service StrategyCustomer Service Strategy

• Increased satisfaction = increased profits• Tips

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Customer Service StrategyCustomer Service Strategy

• Quality– Define

• Total Quality Management (TQM)– Define

© 2012 by robert w. lucas chapter 10: encouraging customer loyalty

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