1. 1 2007 APPA National Conference 25 June, 2007 Presented by: Will Guild, Ph.D. and Keith Owen, Ph.D. SomersetGuild www.somersetguild.com The Road to Customer Loyalty and Support

2. © 2007 SomersetGuild 2 Who are These Guys? Consultants with over 25 years experience conducting hundreds of research studies for industries such as utilities, oil and gas, technology, and health Clients have included: LCRA Nebraska Public Power TXU Reliant Energy Bluebonnet American Electric Power

3. © 2007 SomersetGuild 3 Building loyalty creates ‘trust credits’ Trust credits can be ‘redeemed’ when: You need support in a bond election to make capital improvement You need a rate increase You experience reliability issues Competition should occur Why You Must Care about Customer Loyalty and Support

4. © 2007 SomersetGuild 4 Necessary, but not enough to create customer loyalty and support Satisfaction is volatile; customer loyalty and support is more enduring You can develop customer loyalty and support by managing the experiences that create it Satisfaction Is Not Enough

5. © 2007 SomersetGuild 5 The Road to Customer Loyalty and Support Delivering on Needs and Expectations

6. © 2007 SomersetGuild 6 Not All Organizations Are Equal Expectation Scores Loyalty Score 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 21 17 Excellent PoorMean Poor Mean

7. © 2007 SomersetGuild 7 Creating Customer Loyalty and Support Creating Emotional Connectedness 1. Delivering on Needs and Expectations

8. © 2007 SomersetGuild 8 Creating Customer Loyalty and Support Creating Emotional Connectedness 1. Delivering on Needs and Expectations

9. © 2007 SomersetGuild 9 Creating Customer Loyalty and Support Showing You Care 1. Delivering on Needs and Expectations 2. Creating Emotional Connectedness

10. © 2007 SomersetGuild 10 Creating Customer Loyalty and Support Providing Value 1. Delivering on Needs and Expectations 2. Creating Emotional Connectedness 3. Showing You Care

11. © 2007 SomersetGuild 11 Creating Customer Loyalty and Support 1. Delivering on Needs and Expectations 2. Maintaining Emotional Connectedness 3. Showing You Care 4. Providing Value Loyal, Supportive Customers

12. 12 The Road to Committed Motivated Employees

13. © 2007 SomersetGuild 13 Customer Loyalty and Support: A Function of Level of Employee Commitment and Motivation

14. © 2007 SomersetGuild 14 The Distribution of Employee Attitudes toward Their Organization

15. © 2007 SomersetGuild 15 The Road to Committed Motivated Employees Providing Meaning

16. © 2007 SomersetGuild 16 The Road to Committed Motivated Employees Creating a Sense of Belonging 1. Providing Meaning

17. © 2007 SomersetGuild 17 The Road to Committed Motivated Employees Enabling a Sense of Accomplishment 1. Providing Meaning 2. Creating a Sense of Belonging

18. © 2007 SomersetGuild 18 The Road to Committed Motivated Employees Ensuring Fairness, Health, and Safety 1. Providing Meaning 2. Creating a Sense of Belonging 3. Enabling a Sense of Accomplishment

19. © 2007 SomersetGuild 19 Research and Change Pays Off MeasureChange Safety+88% Customer Satisfaction+80% Productivity+90% Long Term Goals Reached+63%

20. © 2007 SomersetGuild 20 The Road to Committed Motivated Employees 1. Providing Meaning 2. Creating a Sense of Belonging 3. Enabling a Sense of Accomplishment 4. Ensuring Fairness, Health, and Safety Committed Motivated Employees

21. © 2007 SomersetGuild 21 An Integrated Approach Loyal, Supportive Customers Delivering on Needs and Expectations Maintaining Emotional Connectedness Showing You Care Providing Value Providing Meaning Creating a Sense of Belonging Enabling a Sense of Accomplishment Ensuring Fairness, Health, and Safety

22. 22 2007 APPA National Conference 25 June, 2007 Presented by SomersetGuild www.somersetguild.com The Road to Customer Loyalty and Support