CUSTOMER EVALUATION One who uses the product or service, the one who purchases the product or service or the one who influences the product or service. Two types of customers: Who is the customer? Internal Customers External Customers Customer satisfaction Model: (Teboul Model) Company offer (product or service) Needs not fulfilled Customer needs Customer satisfaction Total satisfaction is achieved when offer matches the need (circle is superimposed on the square) Customer Perception of Quality An American Society for quality (ASQ) survey on customer perception about quality of product or service shows the following ranking. Performance Features Service Warranty Price Reputation Service organizations and customer satisfaction • Difficult but not impossible Determine key performance indicators Set Targets – SMART goals Make teams Analyze them on weekly basis Standardize Sustain Why Customers Leave? Others, 9% Better prices elsewhere, 9% Product dissatisfaction, 13% Poor service 69% Good Customer Service Good service is when the customer gets treatment that meets his/her expectations. Customer Expectation What Customer receives Bad Customer Service Bad Service is when customer gets treatment which is less than his/her expectations Customer Expectation What Customer receives Excellent Customer Service When the customer gets a little more than what he/she expected, Good Service becomes Excellent Service + Customer Expectation What Customer receives Measuring CustomerSatisfaction Customer Satisfaction A measure of how products and/or services supplied by a company meet or surpass customer expectation. It is also a key performance indicator (measure) within business and is often part of the Balanced Scorecard. Customer •Delighted customers or clients are Satisfaction? profitable in every company / business. •It can be use as a basis of monitoring, evaluating and developing new products and process that contribute to company’s performance management. •Provides an indication of how successful the organization is at providing products and/or services to the marketplace. Satisfaction is perhaps the best indicator of how likely it is that the organizations’ customers will make further purchases in the future. Since current research has now focusing on the relationship between customer satisfaction and retention. Customer Satisfaction? Two Methods in Managing Customer Satisfaction 1. Direct Methods Directly contacting customersand getting their valuable feedback is very important. Following are someof the waysby which customers could be directly tabbed: Getting customer feedback through third party agencies. Direct marketing, in-house call centers, complaint handling department could be treated as first point of contact for getting customer feedback. (thesefeedbacks arecompiledtoanalyzecustomers’ perception) Gettingcustomerfeedbackthroughface-to-face conversationormeeting. Feedback through appreciation letter Directcustomerfeedbackthroughsurveysand questionnaires. Indirect Methods: The following are indirect methods of getting feedback regarding customer satisfaction: Customer Complaints: Customer’s complaints are the issues and problems reported by the customer to supplier with regards to any specific product or related service. These complaints can be classified under different segments according to the severity and department. Customer Loyalty: A customer is said to be loyal if he revisits supplier on regular basis for purchases. These loyal customers are the satisfied ones and hence they are bounded with a relationship with the supplier. Hence by obtaining the customer loyalty index, suppliers can indirectly measure customer satisfaction. QUALITY OF SERVICE SPEED OF SERVICE EMPLOYEE TRUST AND RELATIONSHIP TYPES OF OTHER SERVICES NEEDED PRICING POSITIONING IN CUSTOMER’S MIND COMPLAINTS OR PROBLEMS Dimensions to Measure in an Organization 1. Survey Customers This is probably the only way to get customer feedback unless they use a direct contact to your organization, which most people are too busy to bother with unless they are extremely upset for some reason. We can provide surveys in several ways (through mail, email, over the phone or websites) and in order to get the best information, we should allow customers to answer questions on a weighted scale like: (“Rate your experience on a scale of 1 to 5 with 1 indicating complete dissatisfaction and 5indicating complete satisfaction”). 2. Understand Expectations If we know what our customers expect from us, it logically follows that we will be better able to offer them an enjoyable experience. Therefore, make an effort to discover the expectations of your customers in terms of both service and products in order to ensure that you’re meeting their needs. 3. Are customer service representative dropping the call on customer concerns and managing their complaints? Find Out Where You’re Failing If you’re not meeting customer requirements, you need to find out where the failure is occurring. Examples of general questions that would behave the company to know where the lines of communication are breaking down so that relationship with customers can be mended are as follows: Are the products less than what is advertised? Are employees making promises that cannot be met? 4. Pinpoint Specifics Whether a customer is satisfied or not, the data we collect will need to accurately assess what is working and what isn’t. So inquiries into level of satisfaction should include more than just the overall experience. We need to determine the products and/or services they purchased, what they liked or disliked about their sales interaction, how the actual purchase compared to their expectations, and any suggestions they have for improvement. 5. Assessthe Competition If we don’t know why customers prefer another brand over ours, we cannot hope to keep them from flocking to the competition. So as part of the survey process, we may want to consider inviting customers to compare and contrast similar products or companies to find out what they are offering that you are not. Customer SatisfactionSurvey EMAILS WEBSITE / ONLINE Customer Loyalty WINNING CUSTOMER LOYALTY IS THE KEY TO A WINNING CRM STRATEGY “Not all customers were created equal” Customer Loyalty Programmes The systematic collection of customer data in return for rewards or benefits, often used to give customer additional privileges or services to best/loyal customers Some Bottom Facts Reduction of 5% of defective customers may result in 80% increase in profitability 60% to 80% of lost customers were satisfied 90% of customers who love a company will repeat but only 30% of customers who like the company will repeat 20-40% of your customers bring 80% of your profits It costs a business about 5-10 times more to acquire a new customer Current customers of yours spend 67% more than a new one According to the 2011 Colloquy Customer Loyalty Census, Of the $48 billion worth of perceived value in reward points and miles distributed by American businesses annually, one-third goes unredeemed by consumer Need For Loyalty Programmes • Reward them for being special • Create jump in enrollments • Create interest for current members • New members getting attracted to new offers Loyalty Programme Options Points Discount Rebate Privilege Plastic Reward Cards vs Mobile Phones Most loyalty programs require the business to print thousands of plastic loyalty cards. This means the business must spend hundreds or even thousands of dollars in upfront cost to launch their loyalty program. Check-in based loyalty programs utilize guests’ mobile phones as their loyalty cards, enabling guests to “check-in” anytime they’re at your venue. Because you are utilizing your patrons’ phones as their loyalty card, the start-up cost to launch a loyalty program is dramatically reduced. POS vs Online Dashboard Most traditional, card-based loyalty programs are connected to a point-ofsale system installed at each store. These POS systems enable each business to track customers’ rewards points. However, these POS systems cost thousands of dollars to buy and maintain, further increasing the cost of operating a loyalty program. Most check-in based loyalty programs are packaged with an online dashboard that your business can access to update its loyalty program and view reports on customer visits and rewards. These dashboards are typically provided for free or for a minimal cost for more advanced programs. Printable Coupons vs Mobile Coupons Oftentimes, traditional loyalty programs deliver coupons and rewards via a mailed coupon or through an email that the guest must print out. These rewards require the guest to remember to save the coupon and bring it with them when they next visit your store. Check-in based programs, which are typically tied to a guest’s mobile phone, deliver coupons and rewards directly to your guests phones. This provides guests with a 24/7 link to your business and enables them to redeem their rewards whenever they have their phone. Social Media Integration Traditional loyalty programs are stuck in a silo. Only your business knows when a guest earns a reward or visits your business. Check-in programs are social by nature. When your guests checkin, they tell all of their friends they are visiting your business and provide an inherent recommendation. This is a huge benefit to businesses looking to expand their reach to new customers. Check- ins on social networks like Foursquare and Facebook Places increase your social media presence and help new customers discover your business. Golden rules of loyalty program Identify type of benefits Design programmes based on customer needs and aspirations Keep programmes fresh and updated Use technology to personalize benefits Seek constant feedback Reinvest regularly in refinement Upselling Upselling is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable services or products but can also be simply exposing the customer to other options that were perhaps not considered previously. Building a Community Community 1. Use a newsletter to share news about customers 2. Develop an online forum for customers to stay in touch 3. Organize annual events “by invitation” for VIP customers 4. Facilitate picture / story sharing 5. Help customers help each other 6. Give a name to the community Events Weekly emails with different themes Personalized Rotating offers Regular Communication Four Ways to Turn CRM into Customer Loyalty Satisfaction does not equal Loyalty if you are thirsty and I give you a Diet Pepsi, while it may “satisfy” your thirst, your true loyalty may still be to Diet Coke Know your Best Customers system of scoring customers based profitability and future growth potential on both current Treat Different Customers Differently grow those with the greatest future potential Understand and Use Marketing ROI focus on clear, highly targeted and measurable solutions that clearly show the returns that they produce The Tesco Loyalty Card is one of the most exciting and interesting marketing tales of this generation. Tesco’s have gained the reputation as sophisticated loyalty scheme marketers In 1995 Tesco introduced their Tesco Club card Tesco Clubcard holders benefit when shopping at Tesco as they receive 1 point for every £1 they spend, and double points on special offers The Tesco Club card has become the successful retail loyalty scheme world’s most The Year of Loyalty Programs During the past year, several mobile loyalty programs sprang up to entice small business owners with limited resources to create low-cost programs to reward frequent customers for purchases All the big brands that have existing reward programs are purchased- based or reward for purchases. Now they are starting to recognize that they need a digital layer that sits on top of these programs to reward customers for all of the actions that are taking place, whether it’s when they’re on social media or on the brand’s site The b i g q u e s t i o n w i l l b e w h e t h e r consumers a r e w i l l i n g t o simply hand over their identity t o e v e r y business f o r a d d e d benefits and r e w a r d s . N o w this is a matter of p r i v a c y a n d s e c u r i t y.
