sect 5, satisfied customers, why are they really important to my net profit
DESCRIPTION
Customer satisfaction is what everyone is talking about, but how does it impact my dealer workshop bottom line.TRANSCRIPT
Section 5
Satisfied Customers – Why Are They Really Important For My Net Profit
5.1 Why Customers Run Away and How to Get Them Back
5.3 How to Build Up a Service Culture
5.2 What is Customer Service?
Customer Satisfaction
5.4 Identifying a Customer Service Strategy
5.5 Customer Equity
5.7 Managing Success
5.6 10-Point Customer Service Commitment
Customer Satisfaction
5.8 Why We Fail
Food For Thought
“If it costs 1 to maintain an old customer, it will cost 6 to get a new and 21 to regain a lost one.”
Study by Volvo CE
5.1
Why Customers Run Away and How to Get
Them Back
5.1
Customer Satisfaction
5.1
Why Customers Run Away, Typical
Perceptions
Gone After Warranty
5.1
Customer Satisfaction
Workshop Rips Us OffWorkshop is Too SlowReplaces More Than Required
5.1
Why Customers Run Away, Typical
Perceptions
Cont’d
They Don’t Follow Up
5.1
Customer Satisfaction
Poor Parts AvailabilityOpening Hours
5.1.1
Customers Only Use the Distributor
Workshop During the Warranty Period.
After That They Are Gone
5.1
Customer Satisfaction
5.1.1
Customers Only Use the Distributor
Workshop During the Warranty Period.
After That They Are Gone
Biggest Issue for Most Workshops
5.1
Customer Satisfaction
Build Relation During Warranty
Repair/Maintenance Agreements
Show Them That You Add Value
5.1.2
The Workshop is Just Trying to Rip Us Off
5.1
Customer Satisfaction
5.1.2
The Workshop is Just Trying to Rip Us Off
Add Value Through:
5.1
Customer Satisfaction
Better unit Uptime
Menu Pricing
Standard Times
Repair/Maintenance Agreements
5.1.3
Time – When Repaired By The
Distributor Workshop It Can Be Gone For
Months
5.1
Customer Satisfaction
5.1.3
Time – When Repaired By The
Distributor Workshop It Can Be Gone For
Months
Prevention
5.1
Customer Satisfaction
Parts Forecasting
Improve Diagnostic Skills
Show the Customer You Care
5.1.4
Lack of Trust – They Replace More Parts Than Is Required To
Generate More Income For
Themselves
5.1
Customer Satisfaction
5.1.4
Lack of Trust – They Replace More Parts Than Is Required To
Generate More Income For
Themselves
Menu Prices/Std Times
5.1
Customer Satisfaction
Workshop Fill-rate UpImprove Skills
Show the Customer You Care
5.1.5
They Don’t Follow Up
5.1
Customer Satisfaction
5.1.5
They Don’t Follow Up
Improve Work Order Management
5.1
Customer Satisfaction
If Delay, Call CustomerParts Order Follow-UpImprove Skills
5.1.6
Poor Spare Parts Availability
5.1
Customer Satisfaction
5.1.6
Poor Spare Parts Availability
Service To Assist in Forecasting
5.1
Customer Satisfaction
Population List - Prioritize Models
Reduce Dead-Stock
Reduce Cycle-Time
5.1.7
Opening Hours – Workshop Not Open
When It Suits The Customer
5.1
Customer Satisfaction
5.1.7
Opening Hours – Workshop Not Open
When It Suits The Customer
What Are Suitable Opening Hours?
5.1
Customer Satisfaction
How Much Extra Business?Start With Small TeamMeasure Results - Correct And Improve
5.1.8
They Cheat Their Customers
5.1
Customer Satisfaction
5.1.8
Customers Run Away Because They Think
You:
Over-charge
5.1
Customer Satisfaction
Don’t Care
Don’t Follow Up
Have No Parts
Take Too Long
5.1
Customer Satisfaction
Change All That To Stay In Business!
5.1.9
Make Your Customers Your Greatest Asset
5.1
Customer Satisfaction
5.1.9
Loyal and Happy Customers:
Spend More
5.1
Customer Satisfaction
Come Back
Pay Their Bills
Don’t Dispute
Stay In Tough Times
Refers You To Others
5.2
What Is Customer Service?
5.2
Customer Satisfaction
5.2
What is Customer Service?
It Is Intangible
5.2
Customer Satisfaction
2 Dimensions
5 Key Elements
5.2.1
Customer Service Is Intangible
5.2
Customer Satisfaction
5.2.1
Customer Service Is Intangible And Is
About:
Satisfaction
5.2
Customer Satisfaction
Attentiveness
Flow
Helpfulness
Sensitivity
5.2.1
Customer Service Is Intangible And Is
About:
Cont’d
Tone
5.2
Customer Satisfaction
Attitude
Knowledge
Understanding
Tact and Guidance
5.2.2
The 2 Dimensions of Customer Service
5.2
Customer Satisfaction
5.2.2
The 2 Dimensions of Customer Service
Procedural
5.2
Customer Satisfaction
Personal
5.2
Customer Satisfaction
The Freezer The Friendly Zoo
The Factory Quality Service
We Don’t CareProcedural - LowPersonal Service - Low
We try, but don’t know what happensProcedural - LowPersonal Service - High
You are a number to be processedProcedural - HighPersonal Service - Low
We care and we deliverProcedural - HighPersonal Service - High
Personal
Pro
ced
ura
l
5.2.3
5 Key Elements of Customer Service
5.2
Customer Satisfaction
5.2.3
5 Key Elements of Customer Service
Reliability
5.2
Customer Satisfaction
Responsiveness
Assurance
Tangible
Empathy
5.2.3.1
Reliability
Deliver as Promised
5.2
Customer Satisfaction
Correctly Identify Customer Needs
Promise Only What You Can Deliver
Follow Through
5.2.3.2
Assurance
Knowledge/Courtesy
5.2
Customer Satisfaction
Convey Trust and ConfidenceServe One Customer at a Time
Positive CommunicationDescribe Products Well
5.2.3.3
Tangible
Suitable Facilities
5.2
Customer Satisfaction
Proper Appearance
Functional
Clean Environment
Well Groomed
5.2.3.4
Empathy
Care and Individual Attention
5.2
Customer Satisfaction
Listen For Emotions
“Walk in Their Shoes”Respond Compassionately
Address Their Needs
5.2.3.5
Responsiveness
Willingness to Help
5.2
Customer Satisfaction
Positive Can-do AttitudeAct Immediately
Satisfy Their Needs
Follow Up
5.3
Building Up A Customer Service
Culture
5.3
Customer Satisfaction
5.3.1
Service Culture
5.3
Customer Satisfaction
5.3
Customer Satisfaction
Delivery System
Training
Motivators/Rewards
Service Mission
Products/ Services
Employee Roles
Policies/ Procedur
es
Management Support
Service
Culture
5.3.1.1
Service Mission
5.3
Customer Satisfaction
5.3.1.1
Service Mission
A Direction/Vision That Sets the Spirit of the Day-to-Day Activities and The Interaction With Customers
5.3
Customer Satisfaction
5.3.1.2
Products/Services
5.3
Customer Satisfaction
5.3.1.2
Products/Services
All Products and Services Offered by The Organization That Meet The Needs of Its Customers
5.3
Customer Satisfaction
5.3.1.3
Delivery Systems
5.3
Customer Satisfaction
5.3.1.3
Delivery Systems
The Way an Organization is Set Up To Deliver Its Products and Services to The Customers
5.3
Customer Satisfaction
5.3.1.4
Training
5.3
Customer Satisfaction
5.3.1.4
Training
Various Ways to Improve the Employees Knowledge, Skills and Attitude Towards Customer Service
5.3
Customer Satisfaction
5.3.1.5
Motivators/Rewards
5.3
Customer Satisfaction
5.3.1.5
Motivators/Rewards
Monetary and/or Recognition Drivers to Boost Customer Service Excellence
5.3
Customer Satisfaction
5.3.1.6
Employee Role and Expectations
5.3
Customer Satisfaction
5.3.1.6
Employee Role and Expectations
Definition of the Employees Role in Customer Service and How Such Performance Will Be Measured
5.3
Customer Satisfaction
5.3.1.7
Policies and Procedures
5.3
Customer Satisfaction
5.3.1.7
Policies and Procedures
Guidelines Describing How Different Situations and Interactions Should Be Handled
5.3
Customer Satisfaction
5.3.1.8
Management Support
5.3
Customer Satisfaction
5.3.1.8
Management Support
How and To What Extent Management Will Be Available To Assist in Critical Situations
5.3
Customer Satisfaction
5.3.2
What You Should Know As a Customer
Service Person = Everyone in The
Organization
5.3
Customer Satisfaction
5.3.2
What You Should Know As a Customer
Service Person = Everyone in The
Organization
Your Organization
5.3
Customer Satisfaction
Your Products/ServicesYour Customers
Your Market
Your Competitors
5.3.2.1
Know Your Organization
Mission and Vision
5.3
Customer Satisfaction
Company Culture
Customer Interaction Policies and ProceduresCompany Support For Products/Services
5.3.2.2
Know Your Products/Services
Data And Specification
5.3
Customer Satisfaction
Configuration
Maintenance And CarePrice And Delivery
5.3.2.3
Know Your Customers
Customer Needs
5.3
Customer Satisfaction
Customer Concerns
Customer Personality
5.3.2.4
Know Your Market
Market Size
5.3
Customer Satisfaction
Application Profile
Geographical Issues
Commercial Issues
Legislative Issues
5.3.2.5
Know Your Competitors
Main Competitors
5.3
Customer Satisfaction
Their Offerings
Their Strengths
Their Weaknesses
Their Strategy
5.3.3
The 5 “C” in Giving Good Customer
Information
5.3
Customer Satisfaction
5.3.3
The 5 “C” in Giving Good Customer
Information
Clear
5.3
Customer Satisfaction
Concise
Correct
Complete
Courteous
5.3.4
What Makes a Good Listener?
5.3
Customer Satisfaction
5.3.4
What Makes a Good Listener?
Empathy
5.3
Customer Satisfaction
Understanding
Patience
Attentiveness
Objectivity
5.3.5
Customer Focused Behavior
5.3
Customer Satisfaction
5.3.5
Customer Focused Behavior
Act Promptly
5.3
Customer Satisfaction
Guide Instead of DirectDon’t Rush The Customer
Offer Assistance
Avoid Unprofessional Actions
5.3.6
Addressing Customer Needs
5.3
Customer Satisfaction
5.3.6
Addressing Customer Needs
To Feel Welcome
5.3
Customer Satisfaction
To Be Understood
To Feel Comfortable
To Feel Appreciated
To Feel Important
To Be Respected
5.3.6.1
To Feel Welcome
5.3
Customer Satisfaction
5.3.6.1
To Feel Welcome
Enthusiastic Greeting
5.3
Customer Satisfaction
Warm/Friendly Smile
Use Customer’s NameThank The Customer
Be Positive
5.3.6.2
To Feel Understood
5.3
Customer Satisfaction
5.3.6.2
To Feel Understood
Listen Actively
5.3
Customer Satisfaction
Paraphrase
Ask Key Questions
Give Positive FeedbackEmpathize
5.3.6.3
To Feel Comfortable
5.3
Customer Satisfaction
5.3.6.3
To Feel Comfortable
Enthusiastic Welcome
5.3
Customer Satisfaction
Relieve Anxiety
Explain Actions CalmlyEnsure Physical Comfort
5.3.6.4
To Feel Appreciated
5.3
Customer Satisfaction
5.3.6.4
To Feel Appreciated
Thank The Customer
5.3
Customer Satisfaction
Follow Up
Over-Deliver
Special Offers
Remember Details About The Customer
5.3.6.5
To Feel Important
5.3
Customer Satisfaction
5.3.6.5
To Feel Important
Use Customer’s Name
5.3
Customer Satisfaction
Special Treatment Whenever Possible
Extract Customer’s Opinions
5.3.6.6
To Feel Respected
5.3
Customer Satisfaction
5.3.6.6
To Be Respected
Listen
5.3
Customer Satisfaction
Don’t Interrupt
Acknowledge Customer’s ConcernsTake Time To Serve
Ask Advice and Feedback
5.3.8
Dealing With Difficult Customers
5.3
Customer Satisfaction
5.3.8
Dealing With Difficult Customers
Never Take It Personal
5.3
Customer Satisfaction
Remain Calm - ListenFocus On The ProblemReward Yourself When SuccessfulWhen All Else Fail, Ask For Help
5.4
Identifying a Customer Service
Strategy
5.4
Customer Satisfaction
5.4.1
Step 1
Determine What Is Most Important For Your Customers
5.4
Customer Satisfaction
5.4.1
Step 2
Determine The Weakest Areas Of Your Competitors
5.4
Customer Satisfaction
5.4.1
Step 3
Determine The Company’s Current And Potential Resources and Capabilities
5.4
Customer Satisfaction
5.4.1
Step 4
Develop a Strategy That:
5.4
Customer Satisfaction
Addresses Important Customer NeedsExploits Competitor’s Weak AreasFits Company’s Capabilities and Potentials
5.4.2
4 Core Elements Of Service Strategy
5.4
Customer Satisfaction
5.4.2
4 Core Elements Of Service Strategy
Service Reliability
5.4
Customer Satisfaction
Service Surprise
Service Recovery
Service Fairness
5.4.2.1
Service Reliability
Accurate
5.4
Customer Satisfaction
Dependable
Keep Promises
Is Attitude and Design
5.4.2.2
Service Surprise
The Unexpected Extra
5.4
Customer Satisfaction
Surprise with Details
The “Wow Factor”
“Majors with Minors”
5.4.2.3
Service Recovery
How to Regain Customer Confidence?
5.4
Customer Satisfaction
Stand Behind Your ServiceIdentify the ProblemsResolve Effectively
Improve the System
5.4.2.4
Service Fairness
Level Playing Field Company - Customer
5.4
Customer Satisfaction
Ethical
Keep Promises - Reliability
Give Prompt Service - Responsiveness
Offer Clean Premises - Tangibles
Customer Satisfaction
Be Competent/Courteous - Assurance
5.4
Extend Caring Individualized Attention - Empathy
5.5
Customer Equity
5.5
Customer Satisfaction
5.5
Definitions
The Total of the Discounted Lifetime Values of All the Firm’s Customers
5.5
Customer Satisfaction
A Firm is Only as Good as its Customer Think it Will Be the Next Time They Will Do Business With That Firm
5.5.1
3 Drivers of Customer Equity
5.5
Customer Satisfaction
5.5.1
3 Drivers of Customer Equity
Value Equity
5.5
Customer Satisfaction
Brand Equity
Retention Equity
5.5.1.1
Value Equity
The Customer’s Objective Evaluation of the Firm’s Offerings
5.5
Customer Satisfaction
Drivers of Value Equity:Quality of Offerings
Price
Convenience To Do Business With The Firm
5.5.1.2
Brand Equity
The Customer’s Subjective View of the Firm And Its Offerings
5.5
Customer Satisfaction
Drivers of Value Equity:Brand Awareness
Attitude Towards BrandPerception of Brand Ethics
5.5.1.3
Retention Equity
The Customer’s View of Strength of the Relationship Between the Customer and the Firm
5.5
Customer Satisfaction
5.5.1.3
Retention Equity
5.5
Customer Satisfaction
Does the Customer Benefit From the Relationship?
Does the Firm Benefit From the Relationship?Does the Customer Stand to Lose if the Relationship Ends?
5.5.1.3
Drivers of Retention Equity
5.5
Customer Satisfaction
Loyalty Programs
Special Recognition and Treatment ProgramsAffinity (Emotional Connections) ProgramsCommunity ProgramsKnowledge Building Programs
5.6
10-Point Customer Service Commitment
5.6
Customer Satisfaction
Customers Must Have Service Available When They so Require
Customers Must Be Able To Find Knowledgeable Service Staff
Customers Must Be Able To Schedule a Service Promptly
Customer Satisfaction
Customers Must Have Their Problems Diagnosed Within 24 Hours
5.6
Customers Must That Parts Are Available When They Need Them
Customers Must Be Notified Promptly Of Completed Repairs
Customers Must Be Updated During The Repair Process
Customer Satisfaction
Customer Repairs Must Be Finished When Promised at The Price as Promised
5.6
Customers Problems Must Be Resolved Correctly the First Time
Customers Must Have Assistance in Understanding Warranty Coverage and Resolving Warranty Issues
Customer Satisfaction
5.6
5.7
How to Manage Success
5.7
Customer Satisfaction
5.7
How to Manage Success
5.7
Customer Satisfaction
Success - ComplacencyComplacency - the Architecture to Your Downfall
Incentive= Motivation= Success
Reward Decisions Not Outcome
5.7
How to Manage Success, Cont’d
5.7
Customer Satisfaction
Win Like You Are Used To It
Lose Like You Enjoy It
5.7
7 Essential Habits of a Successful Team
5.7
Customer Satisfaction
5.7.1
Commitment
5.7
Customer Satisfaction
5.7.2
Teamwork
5.7
Customer Satisfaction
5.7.3
Clear Targets
5.7
Customer Satisfaction
5.7.4
Sound Game Plan
5.7
Customer Satisfaction
5.7.5
Leadership and Followership
5.7
Customer Satisfaction
5.7.6
Celebrate Successes
5.7
Customer Satisfaction
5.7.7
Want To Win
5.7
Customer Satisfaction
5.7.8
7 Elements of Success Mindset
5.7
Customer Satisfaction
5.7.8.1
Desire
5.7
Customer Satisfaction
5.7.8.1
Desire
5.7
Customer Satisfaction
“What the Mind of a Man Can Conceive and Believe, the Mind Can Achieve”
Napoleon Hill
5.7.8.2
Commitment
Built on Integrity and Wisdom
5.7
Customer Satisfaction
5.7.8.3
Responsibility
5.7
Customer Satisfaction
5.7.8.4
Hard Work Through Sacrifice and Self-
Discipline
5.7
Customer Satisfaction
5.7.8.5
Positive Believing
Reason to Believe Positive Attitude
Making the Effort
5.7
Customer Satisfaction
5.7.8.6
Power of Persistence
CommitmentDetermination
Comes From Purpose
5.7
Customer Satisfaction
5.7.8.7
Pride of Performance
5.7
Customer Satisfaction
5.7.8.7
Pride of Performance
5.7
Customer Satisfaction
Represents Pleasure with Humility
Half-Hearted Efforts Does not Produce Half Results, it Produces Nothing
Every Job is a Self-Portrait of the Doer
Pride Comes From Within. Gives the Winning Edge
5.8
Why We Fail
5.8
Customer Satisfaction
5.8
Achieving Failure
5.8
Customer Satisfaction
Successfully Executing a Bad Plan
5.8.1
Lack of Persistence
5.8
Customer Satisfaction
5.8.1
Lack of Persistence
5.8
Customer Satisfaction
Persistence in What We Do
Resistance Against What Should Not Be Done
Winners Are Struck, Not Destroyed
We Quit
5.8.2
Lack of Conviction
Lack of Confidence and Courage
5.8
Customer Satisfaction
5.8.3
Rationalizing
5.8
Customer Satisfaction
5.8.3
Rationalizing
5.8
Customer Satisfaction
Winners Analyze But Never Rationalize
Losers Have a Big Book of Excuses
5.8.4
Not Learning From Past Mistakes
5.8
Customer Satisfaction
5.8.4
Not Learning From Past Mistakes
5.8
Customer Satisfaction
Failure is a Detour Not a Dead End
Experience is the Name Given to Past Mistakes
5.8.5
Lack of Discipline
5.8
Customer Satisfaction
5.8.5
Discipline Takes:
5.8
Customer Satisfaction
Self Control
Sacrifice
Avoiding Distractions and TemptationsStaying Focused
5.8.6
Poor Self-Esteem
5.8
Customer Satisfaction
5.8.6
Poor Self-Esteem
5.8
Customer Satisfaction
Lack of Self-Respect
Lack of Self-Worth
One’s Self is Not to Be Found But to Be Created
Idleness, Laziness and Making Excuses Are Consequences
5.8.7
Fatalistic Attitude
5.8
Customer Satisfaction
5.8.7
Fatalistic Attitude
5.8
Customer Satisfaction
Prevents People From Accepting Responsibilities For Their Position In Life
They Attribute Success And Failure to LuckThey Wait For Things to Happen Rather Than Make Them Happen
Section 5 Summary
Customer Satisfaction
You Can Stop Your Customers From Running Away
Customer Service Is Not Rocket Science – You Can Create It
TooService Culture – Make It a Natural
Part of Your Business
Identify a Service Strategy The Suits
Your Business
Customer Satisfaction
Find Out What Your Customers Think of
Your Service
Create Your Own Customer Service
Commitment
Learn How to Manage The
Success You Will Create
Avoid The Pitfalls That Will Make All Your Efforts Fail
Customer Satisfaction
Satisfied Customers Cause Less
Problems Than Others
Satisfied Customers Give You More of Their Business
Satisfied Customers Cost Much Less
Than Others
Satisfied Customers Refers Your Business To Other Customers
Customer Satisfaction