© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 1 McGraw-Hill part Establish and maintain trust with customers. 2.Explain customer relationship management and explain its importance to quality service. 3.Develop the service provider characteristics that will enhance customer loyalty. 4.Describe the provider’s responsibility for establishing and maintaining positive customer relationships. Building and Maintaining Relationships Encouraging Customer Loyalty Learning Objectives, Chapter 10

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2 McGraw-Hill Encouraging Customer Loyalty Learning Objectives, continued 4.Identify strategies that can be used to make customers feel like they are number one. 5.Discuss strategies that can enhance customer satisfaction. 6.Define quality service.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 3 McGraw-Hill The Role of Trust: What does customer loyalty mean? It is a term to describe the tendency of customers to return to a product or organization regularly because of the service and satisfaction they receive.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 4 McGraw-Hill The Role of Trust What is trust? Trust is the most important criteria for a relationship. The key element in cementing interpersonal relationships is trust.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 5 McGraw-Hill Customer Relationships: What does customer relationship management mean and why are they so vulnerable? Customer relationships—the practice of building and maintaining ongoing friendships with customers in an effort to enhance customer loyalty. The dimensions of trust: personal experience, organizational knowledge, deference, reference, and glitz.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill The Loyalty Equation Effective product/service delivery Proactive relationship building +Elimination of dissatisfiers +Resolution of problems +Follow up =Customer satisfaction and loyalty

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Characteristics Affecting Customer Loyalty Twelve Common Qualities of Service Providers Responsiveness Adaptability Communication Skills Decisiveness Enthusiasm Ethical Behavior

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Characteristics Affecting Loyalty Twelve Qualities of Service Providers (continued) Initiative Knowledge Problem-solving ability Professionalism Perceptiveness Planning ability

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill Be Responsible for Customer Relationships Make customers feel special Personalize your approach Listen actively Keep an open mind

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 10 McGraw-Hill Be Responsible for Customer Relationships Make customers feel special Individualize service Show respect Elicit input—review p. 265 information gathering Use effective closing statements

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 11 McGraw-Hill Strategies for Making Customers Feel Like # 1 Satisfy customer’s needs Make positive initial contact Establish rapport Identify and satisfy customer needs quickly

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 12 McGraw-Hill Strategies for Making Customers Feel # 1 Satisfy Customers’ Needs Exceed expectations Follow up Encourage customers to return

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 13 McGraw-Hill Enhancing Customer Satisfaction as a Strategy for Retaining Customers Build good relationships Pay attention Deal with one customer at a time Know your customers Give customers special treatment

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 14 McGraw-Hill Enhancing Customer Satisfaction as a Strategy for Retaining Customers Build good relationships Service each customer at least adequately Do the unexpected Handle complaints effectively See benefits, not features Know your competition

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 15 McGraw-Hill Strive for Quality Total Quality Management (TQM) and Continuous Quality Improvement (CQI) These are systematic approaches to identifying and quantifying best practices in an organization and/or industry in order to make improvements in effectiveness and efficiency.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 16 McGraw-Hill Importance of Customer Loyalty, Fig. 10.2

© 2009 The McGraw-Hill Companies, Inc. All rights reserved. 17 McGraw-Hill Addressing Customer Needs Customer Needs and Strategies to Satisfy Them