1
Marketing,
financial,
operations and
HRM
2
•
•
•
•
•
•
•
•
•
•
Common research objectives
for services that help us listen to the
customer
To identify dissatisfied customers
To discover customer requirements or expectations
To monitor and track service performance
To assess overall company performance compared to competition
To assess gaps between customer expectations and perceptions
To gauge effectiveness of changes in service
To appraise service performance of individuals and teams for rewards
To determine expectations for a new service
To monitor changing expectations in an industry
To forecast future expectations
3
Criteria for an effective
service research program
5
6
• Executive visits to customers
• Management listing to customers
• Research on intermediate
customers
• Research on internal customers
7
Relationship marketing
• is a philosophy of doing business that focuses on
keeping current customers and improving
relationships with them
• does not necessarily emphasize acquiring new
customers
• is usually cheaper (for the firm)
– keeping a current customer costs less than attracting a new
one
• thus, the focus is less on attraction, and more on
retention and enhancement of customer relationships
8
7-9
“Bucket theory of marketing”
The “80/20” Customer pyramid
Most Profitable
Customers
Best
Customers
What segment spends more with
us over time, costs less to maintain,
spreads positive word of mouth?
Other
Customers
Least Profitable
Customers
What segment costs us in
time, effort and money yet
does not provide the return
we want? What segment is
difficult to do business with?
10
7-11
Profit generated by a customer over time
7-12
Relationship development model
Levels of retention strategies
Stable
Pricing
Volume and
Frequency
Rewards
Bundling and
Cross Selling
Continuous
Relationships
I. Financial
Bonds
Integrated
Information
Systems
Joint
Investments
Customer satisfactio
Excellent
Quality
and
Value
IV.
Structural
Bonds
Shared
Processes and
Equipment
II.
Social
Bonds
Social Bonds
Among
Customers
III. Customization
Bonds
Anticipation/
Innovation
Mass
Customization
Personal
Relationships
Customer
Intimacy
13
14
8-15
Service Recovery Paradox
 “A good recovery can turn angry, frustrated
customers into loyal ones. ..can, in fact, create
more goodwill than if things had gone smoothly in
the first place.” (Hart et al.)
 HOWEVER:
 only a small percent of customers complain
 service recovery must be SUPERLATIVE
 only with responsiveness, redress, and empathy/courtesy
 only with tangible rewards
 even though service recovery can improve satisfaction, it
has not been found to increase purchase intentions or
perceptions of the brand
 service recovery is expensive