creating and maintaining good customer relationships

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Eastern New Mexico University Ruidoso Thursday, October 28, 2010 CREATING AND MAINTAINING GOOD GREAT CUSTOMER RELATIONSHIPS

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Presentation for "Creating and Maintaining Good Customer Relationships", Eastern New Mexico University Ruidoso Campus, October 28, 2010

TRANSCRIPT

Page 1: Creating And  Maintaining  Good  Customer  Relationships

Eastern New Mexico University RuidosoThursday, October 28, 2010

CREATING AND MAINTAININGGOOD GREAT

CUSTOMER RELATIONSHIPS

Page 2: Creating And  Maintaining  Good  Customer  Relationships

WHAT ARE GOOD GREAT CUSTOMER RELATIONSHIPS? Business is a “give and take” Great relationships are based on great

service “Great” customers are loyal “Great” customers are your best sales

people “Great” customers help you to improve “Great” customers help grow your

business

So, how do you create these “great” relationships?

Page 3: Creating And  Maintaining  Good  Customer  Relationships

WHAT’S IN IT FOR ME? You want to make money You want to grow your business You want loyal, repeat business as well

as continuing new business YOU WANT LOYAL CUSTOMERS, NOT

JUST SATISFIED CUSTOMERS….what’s the difference?

Page 4: Creating And  Maintaining  Good  Customer  Relationships

“SATISFIED” CUSTOMERS VS.“LOYAL” CUSTOMERS

What’s the difference between satisfied customers and loyal customers?

Satisfied: content, completely paid, as a bill, convinced, as in an argument.

Loyal: faithful to one’s oath, commitments, or obligation, faithful to any leader, party, or cause, or to any person or thing conceived as deserving fidelity. Characterized by or showing faithfulness to commitments, vows, allegiance, obligations, etc.

Page 5: Creating And  Maintaining  Good  Customer  Relationships

SATISFIED VS. LOYAL, CON’T Satisfied customers are easy to get-just

do most things right most of the time, and generally give them what they want.

Satisfaction is based on basic and predictable expectations

For example, when you go to a McDonald’s drive through window, you expect that they will be offering french fries on the menu. Ordering french fries and receiving them results in satisfaction.

Page 6: Creating And  Maintaining  Good  Customer  Relationships

LOYALTY In his book Build Your Customer

Strategy, James Barnes says “Loyalty comes through the creation of an emotional connection. Satisfaction is a step along the way.”

Loyalty comes from the emotional connection with a customer’s subconscious expectations, one that they cannot verbalize.

You must EXCEED their expectations, and impress them.

“I didn’t expect you to do THAT for me!”

Page 7: Creating And  Maintaining  Good  Customer  Relationships

SATISFACTION VS. LOYALTY Satisfaction is fleeting Once a competitor comes along who is

better, faster, or cheaper, satisfaction becomes irrelevant and customers will leave, unless they have an emotional connection

Loyal customersRely on certain brands, products, or

servicesTrust themFeel comfortable doing business with them“My hairdresser….My butcher…My shoe

store…My favorite restaurant…”

Page 8: Creating And  Maintaining  Good  Customer  Relationships

LOYAL CUSTOMERS EXPERIENCE

Service beyond satisfaction “Better than your mother..” EXCEPTIONAL

service Class Acts: Service and Inequality in

Luxury Hotels in describing excellent customer service at a particular luxury hotel, one guest said: “Well, their linens and their services, and they bring things, they’re so accommodating. They go out of their way to make

you feel, y’know, like you matter…they zero in on you and make you feel like you’re not lost in this huge crowd…when

we’re travelling, we’re not home, and to be taken care of and have somebody who’s gonna do things for you in a way that’s

like, better than your mother!....It makes you feel good”.

Page 9: Creating And  Maintaining  Good  Customer  Relationships

LOYAL CUSTOMERS, CON’T. From material items (linens and things,

or conscious expectations) to the workers’ treatment of guests (emotional attachment)

Personalized, genuine attention Exertion of extra effort Cared for and made to feel special in a

way that exceeds expectations of even your mother!

Page 10: Creating And  Maintaining  Good  Customer  Relationships

WHAT KEEPS COMPANIES FROM PROVIDING EXCEPTIONAL CUSTOMER SERVICE?

Top Excuses: “It’s so hard to find employees around

here, much less ones who care” “We can’t afford to pay enough to get

quality people” “The younger generation doesn’t care” “Our customers are too difficult” “Employees just don’t get it” “We are understaffed”Slides 10-20: John R. DiJulius: What’s the Secret to Providing World Class

Customer Experience

Page 11: Creating And  Maintaining  Good  Customer  Relationships

NONE OF THESE ARE THE REASONS

COMPANIES FAIL TO PROVIDE

EXCEPTIONAL CUSTOMER SERVICE.

THEY ARE THE RESULTS OF THE

REASONS.

Page 12: Creating And  Maintaining  Good  Customer  Relationships

TOP TEN OBSTACLES TO PROVIDING EXCEPTIONAL CUSTOMER SERVICE Lack of service aptitude Decline in “people skills” Inability (of management) in connecting

employees jobs and their importance to the success of the company

Poor hiring standards Lack of experiential training Not letting employees have input Failure to implement and execute consistently Lack of a strong employee culture Lack of measurements and accountability Focus on artificial growth

Page 13: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Lack of Service Aptitude:

Establish your company’s definition of “world class” service

Remove gray area for your employees and provide protocol for service scenarios

Make sure your employees have the tools they need to not only get the job done, but exceed customers’ expectations

Page 14: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Decline in “People Skills”

Technology/AutomationCustomers have become “transactions”Companies need to “humanize” their

systems Inability to Connect Employee Jobs and

Company SuccessEvery employee, regardless of their

position, has an impact on the company’s bottom line

A solid service vision is the foundation of every business’ success-all employees play a part in that vision

Page 15: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Poor Hiring Standards

Hire Pro-Actively, rather than Re-actively Lack of Ongoing Experiential Training

Train employees in customer service Ongoing customer service training for existing

employees Not letting employees have input on systems

Many companies have senior management meetings without including employees who work in the front lines

Including employees allows you to get commitment and buy in from people working with your customers

New perspectives, great ideas

Page 16: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Failure to implement and execute

consistentlyDocument your protocolsBe consistentDon’t try to do too much at onceCreate a “roll-out” plan for customer service

ideas, implement ideas one at a time

Page 17: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Lack of a Strong Employee Culture

Employees who do not receive exceptional service will never deliver it

Any “world class” organization has these elements: It is a “world-class” place to work It has a “world-class” reputation in its

community It helps employees lead “world-class” lives

Management sometimes are the worst role models. They often forget to treat employees as customers.

Page 18: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Lack of Measurements and

AccountabilityYou must track and measure your customer

service systems Customer surveys Secret Shoppers Third Party Companies Benchmarks & Goals

Page 19: Creating And  Maintaining  Good  Customer  Relationships

OBSTACLES Focus on Artificial Growth

MergersAcquisitionsPrice Cutting“Fire Sales” or Novelty Marketing

Promotions

None of these Result in higher customer satisfaction, exceeding customer expectations, repeat business, or sustainable growth.

Page 20: Creating And  Maintaining  Good  Customer  Relationships

CASE STUDIES: EXAMPLES OF COMPANIES WHO SUCCEED BASED

ON PROVIDING EXCEPTIONAL SERVICE

USAA Insurance Southwest Airlines The Ritz Carlton Hotels

Page 21: Creating And  Maintaining  Good  Customer  Relationships

USAA USAA has consistently received the highest customer service ratings available to all

financial services companies, including those not in its niche.

2002: JD Power Chairman’s award

2007 & 2008: Business Week ranked USAA #1 in Customer Service Champs, a list of 25 national businesses

A 2007 Forrester Research report referenced in the San Antonio Express-News on June 27, 2007, identified USAA as the leader in customer advocacy based on a customer survey. Eighty-eight percent of the USAA customers surveyed said "My financial provider does what's best for me, not just its own bottom line." No other company evaluated scored higher than 78%. USAA retained the top spot on Forrester Research's study in 2008 and 2009.

In their May 2009 issue, Consumer Reports named USAA's brokerage division as the top rated discount brokerage service in the United States.

In a survey of 145 companies conducted by  Zogby International, USAA ranked #1 in customer service out of 145 American companies, and was subsequently awarded first place in the 2009 MSN Money Customer Service Hall of Fame.

USAA employs more than 21,500 personnel at its offices throughout the country. In 2010, USAA was ranked 45th on Fortune Magazine's list of the "100 Best Companies to Work For.” USAA has also been recognized for many years as one of the 50 best corporations for career advancement for Latinas in the US. It has been recognized as a "Military Spouse-Friendly Employer“ and has also been recognized by GI Jobs as one of America's best employers for veterans and reservists.

Page 22: Creating And  Maintaining  Good  Customer  Relationships

USAA-VOTED #1 IN IT BY COMPUTERWORLD, JUNE 2010

USAA

Page 23: Creating And  Maintaining  Good  Customer  Relationships

SOUTHWEST AIRLINESOur Mission Statement

“The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a

sense of warmth, friendliness, individual pride, and Company

Spirit.”

from www.southwest.com

Page 24: Creating And  Maintaining  Good  Customer  Relationships

SOUTHWEST AIRLINES, CON’T Commitment to Customer Service Keeping customers at the forefront of

employees minds VICE PRESIDENT OF CUSTOMERS Immerse employees in company culture Empower employees to make decisions For the tenth year in a row, Fortune magazine recognized Southwest Airlines in its annual survey

of corporate reputations. Among all industries in 2005, FORTUNE has listed Southwest Airlines as number three among America’s Top Ten most admired corporations.

FORTUNE has ranked Southwest Airlines in the top five of the “Best Companies to Work For” in America. Southwest ranked first in 1997 and 1998, second in 1999, and fourth in 2000.

For 2007, the eighth year in a row, Business Ethics magazine lists Southwest Airlines in its "100 Best Corporate Citizens", a list that ranks public companies based on their corporate service to various stakeholder groups.  Southwest is one of only 11 repeat winners that have made the list all eight years.

In 2005 and again in 2008 The American Customer Satisfaction Index (ACSI) recognized Southwest Airlines as leading the industry in customer satisfaction. The ACSI, conducted by the University of Michigan, independently tracks customer satisfaction levels by measuring the household consumption experience.

Page 25: Creating And  Maintaining  Good  Customer  Relationships

SOUTHWEST AIRLINESSouthwest Airlines

Page 26: Creating And  Maintaining  Good  Customer  Relationships

RITZ – CARLTON HOTELS AAA Four and Five Diamond Hotel and

Restaurant Awards Mobile Five and Four Star Awards Conde Naste Traveler Gold List Travel & Leisure 500 Greatest Hotels in

the World

Page 27: Creating And  Maintaining  Good  Customer  Relationships

RITZ-CARLTON HOTELS, CON’T Gold Standards

The CredoThe MottoThe Three Steps of ServiceService ValuesThe 6th DiamondThe Employee Promise

Page 28: Creating And  Maintaining  Good  Customer  Relationships

RITZ-CARLTON HOTELSRitz Carlton

Page 29: Creating And  Maintaining  Good  Customer  Relationships

CONCLUSION TREAT YOUR EMPLOYEES AS

CUSTOMERS CREATE A CULTURE OF CUSTOMER

SERVICE WITHIN YOUR BUSINESS DON’T SETTLE FOR CUSTOMER

SATISFACTION-STRIVE TO ANTICIPATE AND EXCEED CUSTOMERS’ EXPECTATIONS (SERVICE BEYOND SATISFACTION)

FOLLOW THE EXAMPLE OF COMPANIES WITH PROVEN WORLD CLASS SERVICE