Chapter Ten Customer Retention & Measurement Of Satisfaction

What is customer retention? The continuous attempt to satisfy and keep current customers actively involved in conducting business.

Understanding Churn Churn (or churn rate) is the number of customers who leave in a year’s time divided by the number of new customers in the same period.

Defection Rate Is the percentage of customers who leave in one year. Customer lifetime value: Is the net present value of the profits a customer generates over the average customer life. Customer lifetime value= yearly profit x customer life in years

Do you need to improve your customer retention program? 1. Is customer satisfaction your primary management objective? 2. Is there effort to enhance customer satisfaction? 3. How do you get lost customers back? (see page 137 for reference)

Establish a customer retention program Remember to: 1. Examine who your customers are. 2. Identify specific objectives. 3. Create a manageable program of customer retention. 4. Create a culture that stimulates customer interest. 5. Evaluate.

Chapter Eleven Delivering Customer Service to the Changing Marketplace

Understanding the customer of the 21 st Century They will expect 1. Availability: service designed to meet their schedule 2. Accessibility: when customer needs to talk, provider can be reached 3. Accountability: customers prefer quick and accurate answers to questions

New Technology Tips: 1. Prepare your staff 2. Train supervisors first and get them to buy in 3. Sell your vision 4. Praise success 5. Resist temptation to complain 6. Celebrate small success

Chapter Twelve Excellence in Customer Service

Rewards of Providing Excellent Customer Service 1. Customers approach business expecting a positive experience 2. Work is more personally fulfilling 3. Customers act as co-produces 4. A unique competitive edge is achieved 5. Customer challenges are recognized 6. Problems are creatively solved in an effective and efficient manner

CONT… 7. Customer service providers and management feel positive about the roles that they are playing in creating positive exchanges between customers and their organization 8. Work environment is more pleasant and productive 9. Businesses earn a positive reputation and the respect of customers and peers 10. Profit goals are more successfully accomplished because business focus is on satisfying the customers