encouraging customer loyalty

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Chapter 10Encouraging Customer Loyalty

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Strategies to gain trust

• Communicate effectively and convincingly

• Display caring• Be fair• Admit errors or lack of knowledge• Trust your customer• Keep your word• Provide peace of mind

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Customer Relationship Management (CRM)

• The relationship with customer

• To make sure that you can stay in the

business

• Know your customers personally

• Long-term customer relationship

(customer retention)

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Benefits of CRM

• Less need to obtain new customers

through marketing

• Reduced marketing costs

• Increase Return On Investment

• Enhanced customer loyalty due to

products that meet customer wants

• Target market based on previous sales

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Effective product/service delivery

Proactive relationship building

Elimination of dissatisfiers

Resolution of Problems

Follow up

CUSTOMER SATISFACTION AND LOYALTY

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Provider characteristics affecting customer loyalty

• Responsiveness• Adaptability• Communication skill• Decisiveness• Ethical behavior• Initiative• Knowledge• Planning ability

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5Create

implementation plan

3Identify

alternatives

4Select bestalternative

1 Set a goal

2Examine

and Evaluate

…planning process model

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Identify the problem

Analyze the problem

Identify alternatives

Evaluate alternatives

Make a decision

Monitor the results

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Responsible for customer relationship

• Personalize your approach

• Listen actively

• Keep an open mind

• Individualized service

• Show respect

• Elicit input

• Use effective closing statement

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Gathering information from customer

• Customer comment card

• Toll-free number

• Verbal comment

• Follow-up telephone survey

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• Service contact surveys

• Exit interviews

• Shopper/customer surveys

• Focus group

• Sales and service records

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Enhance customer satisfaction

• Pay attention

• Deal with one customer at a time

• Know your customers

• Give customer a special treatment

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• Service each customer at least

adequately

• Do the unexpected

• Handle complaints effectively

• Sell benefits not features

• Know your competition

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