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.