1. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-1 Why we lose customers 4% - natural attrition (die, move away) 5% - referred to competitor by a friend 9% - lower price/better product 14% - product/service dissatisfaction 68% - Indifference!

2. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-2 C USTOMER S ERVICE The ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner which satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business.

3. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-3 C USTOMER S ERVICE The ability of knowledgeable, capable, and enthusiastic employees.  Training  Hiring  Motivation

4. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-4 C USTOMER S ERVICE to deliver products and services to their internal and external customers

5. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-5 C USTOMER S ERVICE in a manner which satisfies identified and unidentified needs  Would you like fries with that?  Sales training

6. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-6 C USTOMER S ERVICE ultimately results in positive word-of- mouth publicity and return business  Remember the gain or retain equation

7. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-7 C USTOMER S ERVICE Is this a change in thinking about customers? Yes!

8. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-8 C USTOMER S ERVICE Without good customer service you eventually end up competing on what factor? Price!

9. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-9 Focus on S ERVICE Customer Focused Organizations Focus is on determining and meeting customer needs Products and services are based on what the customer wants. Policies are in place to allow employee decision making.

10. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-10 Emphasize the Customer Must provide service excellence Anticipate customer needs Train employees Give employees authority to resolve issues Must become “Learning Organizations”

11. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-11 Learning Organizations: Use service as a tool for competitiveness Provide ongoing training and development for employees Have reward systems in place Learn from mistakes and adapt Train employees to spot potential problems and to proactively make adjustments Give employees authority to make decisions Empowerment

12. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-12 C USTOMER S ERVICE is everything! CUSTOMER Company Focus Mission Statement Products Information Services