CUSTOMER LOYALTY List characteristics of loyal customers Lesson 1.3 9/13/2018 LESSON 1.3 CUSTOMER LOYALTY List characteristics of loyal customers Describe the benefits to companies of building a loyal customer base CUSTOMER SERVICE

The Value of Loyal Customers 1.3 The Value of Loyal Customers Satisfied customers and loyal customers are not the same. Loyal customers do the following: Purchase repeatedly from a company Tend to buy a variety of items or services Refer others to the seller Believe that what they buy is worth what they pay Know the company’s policies and procedures Don’t stop buying even if the company has small price increases

Turn Satisfied Customers Into Loyal Customers Lesson 1.3 9/13/2018 1.3 Turn Satisfied Customers Into Loyal Customers Exceed a customer’s expectations Provide the best possible services Listen to what the customer wants and needs Respond as needed CUSTOMER SERVICE

Retaining Loyal Customers 1.3 Retaining Loyal Customers During a poor economy The lure of the Web Cellular One case study

The Dollars and Sense of It 1.3 The Dollars and Sense of It Keeping customers happy makes good business sense. Lowering defections by 5% can increase profits by as much as 85%. Acquiring new customers costs 5 to 10 times more than keeping existing customers happy. The 20/80 rule—20 percent of a company’s customers generate 80 percent of the company’s profit. Canon U.S.A. case study Get personal