The World of Customer Service, 2e Odgers 1 Chapter 3 Chapter 3 Customer Behavior, Customer Loyalty, and Exceptional Service Objectives Describe customers’ buying behavior relative to their basic needs. Distinguish between customer satisfaction and customer loyalty. State the relationship between customer expectations and customer perceptions. Describe methods companies use to measure customer satisfaction.

The World of Customer Service, 2e Odgers 2 Chapter 3 Understanding Customer Behavior Basic Customer Behavior involves: Why they buy How they buy What causes them to return Four Customer Needs: 1. Need to be understood 2. Need to feel welcome 3. Need to feel important 4. Need for comfort

The World of Customer Service, 2e Odgers 3 Chapter 3 Earning Customer Loyalty Tips to Earn Repeat Business from Customers Ask questions Be honest Fix problems Learn from the competition Back up your company’s promises Offer one-stop service Build on emotion-friendly service culture

The World of Customer Service, 2e Odgers 4 Chapter 3 Customer Turnoffs Value turnoffs Include inadequate guarantees, a failure to meet quality expectations, and high prices relative to value received System turnoffs Include irritations relative to the way a company delivers its products or services People turnoffs Include showing lack of courtesy or attention, showing an unprofessional behavior, projecting an indifferent attitude

The World of Customer Service, 2e Odgers 5 Chapter 3 Offering Exceptional Customer Service Exceptional customer service occurs when the customer gets more than they expected Customer expectations What a customer wants before a transaction Customer perceptions What a customer identifies as quality of service during and after the transaction

The World of Customer Service, 2e Odgers 6 Chapter 3 Critical First Impressions “You never get a second chance to make a first impression” Baseline standard The minimum level of service it takes to satisfy customers under ordinary circumstances

The World of Customer Service, 2e Odgers 7 Chapter 3 Empowerment “Giving somebody power or authority” Benefits The elimination of nearly all multilevel problem solving that involves management An empowered staff reduces the amount of time customers spend reaching satisfactory conclusions

The World of Customer Service, 2e Odgers 8 Chapter 3 Measuring Customer Satisfaction Customer satisfaction is in the eye of the beholder (the customer) The best way to measure customer service is to Ask Your Customers

The World of Customer Service, 2e Odgers 9 Chapter 3 Measuring Customer Satisfaction When customers are asked about the level of service they receive, it Helps the company set realistic goals and monitor trends Provides critical input for analyzing problem areas Assists the company in monitoring progress toward improvements Keeps the company close to its customers

The World of Customer Service, 2e Odgers 10 Chapter 3 Measurable Customer Service Standards Examples: Answer telephones by the third ring. Serve hot food at a temperature of at least 140 degrees. Smile and greet all guests within 10 feet of you. Respond to each shopper, so that he or she does not stand in line more than two minutes. Offer bellman or concierge service to every hotel guest. Speak professionally to clients and avoid the use of slang expressions.