1. Chapter 1 Know Why Service Matters
Chapter One
Chapter 1
Know Why Service Matters

2. Healthy relationships: Key to business and personal success
Succeed by attracting, keeping loyal customers
“Service economy” not as it should be

3. What Happened to the Service Economy?
Ignoring customers
Unmet promises
Incomprehensible customer service people
Jargon instead of answers

4. Ockham’s razor
Wal-Mart vs. K-mart

5. Satisfied customers lead to success
K-mart sales about $50 Billion/yr
Wal-Mart sales about $400 Billion/yr
But they sell the same stuff for about the same prices from the same type stores in the same locations . . .
Same, same, same DIFFERENT

6. A “customer” is someone with whom we exchange value
Money for a product or service
Work for wages
Time as a volunteer

7. No one succeeds without loyal customers
External customers: transactions involving an exchange of money
Internal customers: employees and co-workers

8. Relationships with customers can become partnerships
Ongoing relationships
Service intimacy
Generosity, trust
Share joint purpose
Speak truth with compassion and care
Pursue equality with grace

9. Positive word of mouth gets and keeps customers
Cost of getting a new customer
A friends’ advice or recommendation
Turbocharge with , blogs, or other electronic communication
“word of mouse”

10. How do you calculate the cost of a lost customer?
10-30% loss of customers per year
Customer retention programs= profits jump %
Ripple effects

11. What are the numbers behind an unhappy customer?
An upset customer tells other people
These tell five more
The total number affected by one poor experience = 50 to 100!

12. How much does it cost to replace the unhappy customer?
Five to six times more than keeping existing one
About $118 to get a new customer
About $19 to keep one

13. Some key change in the diverse nature of customers
Most diverse customer base ever
Wider age range of employees and customers
More 60+ customers
Broader globalization means customers from all around the world
More work/life balance

14. Few companies fully back their promise with strategy that
Makes customer satisfaction/loyalty key strategic goal
Trains all employees to use behaviors that make customer feel important
Translates slogans into actions that convey caring to customers

15. Your number one task, regardless of your job title, will always be to attract, satisfy, and preserve loyal customers.