customer service: gain and retain customers- bowman, 2016
TRANSCRIPT
Glenn MuskeRural and Agribusiness Enterprise Development Specialist
[email protected], 2016
Service:A Tool for Gaining and Retaining Customers
Bowman, ND
5 Things Customers Most Often Discuss with Friends, Relatives and
Just About Anyone5. Low quality of goods and services4. Price3. Hidden information and costs2. Inaccessibility1. Service including:
• Not listening• Unresolved issues• Rude staff or no staff• Not keeping promises• Poor signage• Messy store
Traditional Marketing Online Marketing
PRPaid
Promotion
Distribution Channels
Customer ServiceVisualMix
One-on-one & Networking
Word-of-mouth & ReviewsReputation
YOUMarketing
Customer Service = Customer Satisfaction•Gaining the Customer
• Good service gets talked about – Your customer is your ambassador• Good service will bring the first-timer back to see if this was a one-time event or if it
continues. • The “WOW” experience good but fades if only a one-time event• Mark Twain – “Always do right! This will gratify some people and astonish the rest.”
•Retaining the Customer – Why?• 80/20 rule• Expense
• $20-$50 to gain a new customer• $1-$3 to retain an existing customer
• Ability to learn more about them • Make new ambassadors
Write down an example of a missed customer service experience you have experienced.
Write down an example of one great customer service experience.
Steps in the Consumer Buying Behavior
Need recognition/Problem identification
Information Search
Alternative Evaluation
Purchase Decision
Post-Purchase Behavior
Consumer Buying Behavior Steps
Need recognition/Problem identification
Information Search
Alternative Evaluation
Purchase Decision
Post-Purchase Behavior
Customer Service includes:• After purchase support• Warranty/Guarantee• Refunds• Tips and ideas how to use• Product updates• Staying in touch• Delivery/pick-up/disposal/wrapping• ?????????
Details Do Matter!
As a consumer, do you pay attention to details?What are some examples?
What We Know
Service Statistics
• Only 4% of customers ever complain.
• For every complaint there are 26 other customers with unresolved complaints• Six have serious problems.
• A dissatisfied customer will tell up to 10 people. Approximately 13% will tell up to 20 people. (And these numbers were pre-Internet)
Service Statistics• Happy customers will tell between 3 and 5 people about their positive
experiences.
• Costs 5-6 times more to attract customers than to keep old ones.
• 89% of consumers will go to a competitor following a poor customer experience
• 75% of customers who leave cite “rude staff.” And 50 % indicate a lack of a timely response
Act fast! 82 to 95 percent
of dissatisfied customers will come back if a problem is resolved quickly
and sincerely.95 percent
will come back if a problem is solved on the spot.
Service and Social Media• Nearly 50% of people expect a response in 60 minutes
• 32% expect a response in 30 minutes
• Response expected 24/7
• The possible audience is immense for failure• United Airlines and broken guitar – 12 million views
• https://www.youtube.com/watch?v=5YGc4zOqozo&feature=youtu.be
• 22% will post a positive comment when they get a positive response
• It can happen immediately
Why Customers Stop Doing Business
• 1% Die• 3% Move away• 5% Other reasons• 9% Competition• 14% Don’t like the product or service• 68% Indifferent attitude of sales people
About 95% of the customers that quit will not tell you when or why they quit, they just leave.
Developing the “Service” Mindset
"Attitude precedes service. Your positive mental attitude is the basis for the way you act and react to people. – Jeffrey Gitomer
Examples of “Service” Found in Mission Statements:
“We are committed to helping people identify and meet their needs by offering quality services in a caring, professional manner, providing a profitable outcome for everyone.” - Bank
“Satisfy the customer, satisfy the customer, satisfy the customer.”---Henry Ford
“Have it your way.” ---Burger King
Is 99.9% good enough?
• 5,516,200 cases of flat soft drinks
• The IRS losing 2 million documents
• 811,000 faulty rolls of film
• 12 babies given to wrong parents – each day
• 1,312 calls per second misplaced
Face to Face
55 percent38 percent7 percent
100 percent
Body languageToneWords
Telephone
ToneWords
84 percent16 percent
100 percent
Building a Customer-service Focus
• Build the type of service response that you like to get
• You can’t always be there. Give people:• Training• Flexibility• Responsibility and authority• Your support
(Miracle on 34th St - https://www.youtube.com/watch?v=lKfBUUhFueI )
Building a Customer-service Focus
• The phone – Do you get a real person? How quickly? Does that person listen? • Your website – Is your contact information easy to find? Do you
clearly outline how a person should file a complaint?
How do I learn more? LISTEN!!!!Barriers• Listening with “half an ear”• Acting as the judge and jury• Tuning in and tuning out• Little empathy• Pre-judge• Turning off ideas you don’t agree with• Jumping to conclusions
Reinforce the:5 Keys to Quality Service
• Reliability• Live up to promises, dependable
• Assurance• Offer sense of confidence in you & your skills by answering
questions & offering product knowledge
• Look at the tangibles• Seen & felt, equipment, staff, physical facility
• Empathy• Responsiveness – listen, provide a fair solution, & do it
quickly
Understand Service Gaps – Expectation vs Reality
• knowledge:• retailers’ perception of customer’s expectations
• standards: • retailers’ standards that do not match customer
expectations
• delivery:• difference between standards and reality
• communication:• promises in promotional campaign vs. reality
Caution!
Service must increase sales
enough to offset costs
The Moment of Truth
The point at which your actions cause your
customer to form an impression about you and
your business.
There are NO second
first impressions!
How do you know how you are doing?
•Ask•Listen•Survey•Pet Peeve – Don’t tell me what to say
•Check with others (Secret Shopper)
Service and Community
Welcome to Our Town“How may I help you?”
What you will gain?• An understanding of why tourism is important • Knowledge about the “secrets of service”• Skills in giving directions• Skills in answering visitor questions• Knowledge about local attractions, events
and resources• An appreciation of the front-line professional’s
role
REMEMBER: How service impactS your business?
A happy customer is:• Satisfied• Stays longer• Spends more money• Tells family and
friends
Glenn MuskeRural and Agribusiness Enterprise Development Specialist
NDSU Extension Center for Community [email protected]
Questions??Resources:
http://www.ag.ndsu.edu/smallbusiness http://powerofbusiness.nethttp://www.extension.org/entrepreneurship