Sect 5, Satisfied customers, why are they really important to my net profit

Section 5

Satisfied Customers – Why Are They Really Important For My Net Profit

5.1 Why Customers Run Away and How to Get Them Back

5.3 How to Build Up a Service Culture

5.2 What is Customer Service?

Customer Satisfaction

5.4 Identifying a Customer Service Strategy

5.5 Customer Equity

5.7 Managing Success

5.6 10-Point Customer Service Commitment

5.8 Why We Fail

Food For Thought

“If it costs 1 to maintain an old customer, it will cost 6 to get a new and 21 to regain a lost one.”

Study by Volvo CE

Why Customers Run Away and How to Get

Them Back

Why Customers Run Away, Typical

Perceptions

Gone After Warranty

Workshop Rips Us OffWorkshop is Too SlowReplaces More Than Required

Why Customers Run Away, Typical

Perceptions

Cont’d

They Don’t Follow Up

Poor Parts AvailabilityOpening Hours

Customers Only Use the Distributor

Workshop During the Warranty Period.

After That They Are Gone

Customers Only Use the Distributor

Workshop During the Warranty Period.

After That They Are Gone

Biggest Issue for Most Workshops

Build Relation During Warranty

Repair/Maintenance Agreements

Show Them That You Add Value

The Workshop is Just Trying to Rip Us Off

Add Value Through:

Better unit Uptime

Menu Pricing

Standard Times

Repair/Maintenance Agreements

Time – When Repaired By The

Distributor Workshop It Can Be Gone For

Months

Time – When Repaired By The

Distributor Workshop It Can Be Gone For

Months

Prevention

Parts Forecasting

Improve Diagnostic Skills

Show the Customer You Care

Lack of Trust – They Replace More Parts Than Is Required To

Generate More Income For

Themselves

Lack of Trust – They Replace More Parts Than Is Required To

Generate More Income For

Themselves

Menu Prices/Std Times

Workshop Fill-rate UpImprove Skills

Show the Customer You Care

Improve Work Order Management

If Delay, Call CustomerParts Order Follow-UpImprove Skills

Poor Spare Parts Availability

Service To Assist in Forecasting

Population List - Prioritize Models

Reduce Dead-Stock

Reduce Cycle-Time

Opening Hours – Workshop Not Open

When It Suits The Customer

Opening Hours – Workshop Not Open

When It Suits The Customer

What Are Suitable Opening Hours?

How Much Extra Business?Start With Small TeamMeasure Results - Correct And Improve

They Cheat Their Customers

Customers Run Away Because They Think

Over-charge

Don’t Care

Don’t Follow Up

Have No Parts

Take Too Long

Change All That To Stay In Business!

Make Your Customers Your Greatest Asset

Loyal and Happy Customers:

Spend More

Come Back

Pay Their Bills

Don’t Dispute

Stay In Tough Times

Refers You To Others

What Is Customer Service?

What is Customer Service?

It Is Intangible

2 Dimensions

5 Key Elements

Customer Service Is Intangible

Customer Service Is Intangible And Is

About:

Satisfaction

Attentiveness

Helpfulness

Sensitivity

Customer Service Is Intangible And Is

About:

Cont’d

Attitude

Knowledge

Understanding

Tact and Guidance

The 2 Dimensions of Customer Service

Procedural

Personal

The Freezer The Friendly Zoo

The Factory Quality Service

We Don’t CareProcedural - LowPersonal Service - Low

We try, but don’t know what happensProcedural - LowPersonal Service - High

You are a number to be processedProcedural - HighPersonal Service - Low

We care and we deliverProcedural - HighPersonal Service - High

Personal

5 Key Elements of Customer Service

Reliability

Responsiveness

Assurance

Tangible

Empathy

5.2.3.1

Reliability

Deliver as Promised

Correctly Identify Customer Needs

Promise Only What You Can Deliver

Follow Through

5.2.3.2

Assurance

Knowledge/Courtesy

Convey Trust and ConfidenceServe One Customer at a Time

Positive CommunicationDescribe Products Well

5.2.3.3

Tangible

Suitable Facilities

Proper Appearance

Functional

Clean Environment

Well Groomed

5.2.3.4

Empathy

Care and Individual Attention

Listen For Emotions

“Walk in Their Shoes”Respond Compassionately

Address Their Needs

5.2.3.5

Responsiveness

Willingness to Help

Positive Can-do AttitudeAct Immediately

Satisfy Their Needs

Follow Up

Building Up A Customer Service

Culture

Service Culture

Delivery System

Training

Motivators/Rewards

Service Mission

Products/ Services

Employee Roles

Policies/ Procedur

Management Support

Service

Culture

5.3.1.1

Service Mission

5.3.1.1

Service Mission

A Direction/Vision That Sets the Spirit of the Day-to-Day Activities and The Interaction With Customers

5.3.1.2

Products/Services

5.3.1.2

Products/Services

All Products and Services Offered by The Organization That Meet The Needs of Its Customers

5.3.1.3

Delivery Systems

5.3.1.3

Delivery Systems

The Way an Organization is Set Up To Deliver Its Products and Services to The Customers

5.3.1.4

Training

5.3.1.4

Training

Various Ways to Improve the Employees Knowledge, Skills and Attitude Towards Customer Service

5.3.1.5

Motivators/Rewards

5.3.1.5

Motivators/Rewards

Monetary and/or Recognition Drivers to Boost Customer Service Excellence

5.3.1.6

Employee Role and Expectations

5.3.1.6

Employee Role and Expectations

Definition of the Employees Role in Customer Service and How Such Performance Will Be Measured

5.3.1.7

Policies and Procedures

5.3.1.7

Policies and Procedures

Guidelines Describing How Different Situations and Interactions Should Be Handled

5.3.1.8

Management Support

5.3.1.8

Management Support

How and To What Extent Management Will Be Available To Assist in Critical Situations

What You Should Know As a Customer

Service Person = Everyone in The

Organization

What You Should Know As a Customer

Service Person = Everyone in The

Organization

Your Organization

Your Products/ServicesYour Customers

Your Market

Your Competitors

5.3.2.1

Know Your Organization

Mission and Vision

Company Culture

Customer Interaction Policies and ProceduresCompany Support For Products/Services

5.3.2.2

Know Your Products/Services

Data And Specification

Configuration

Maintenance And CarePrice And Delivery

5.3.2.3

Know Your Customers

Customer Needs

Customer Concerns

Customer Personality

5.3.2.4

Know Your Market

Market Size

Application Profile

Geographical Issues

Commercial Issues

Legislative Issues

5.3.2.5

Know Your Competitors

Main Competitors

Their Offerings

Their Strengths

Their Weaknesses

Their Strategy

The 5 “C” in Giving Good Customer

Information

The 5 “C” in Giving Good Customer

Information

Concise

Correct

Complete

Courteous

What Makes a Good Listener?

Empathy

Understanding

Patience

Attentiveness

Objectivity

Customer Focused Behavior

Act Promptly

Guide Instead of DirectDon’t Rush The Customer

Offer Assistance

Avoid Unprofessional Actions

Addressing Customer Needs

To Feel Welcome

To Be Understood

To Feel Comfortable

To Feel Appreciated

To Feel Important

To Be Respected

5.3.6.1

To Feel Welcome

5.3.6.1

To Feel Welcome

Enthusiastic Greeting

Warm/Friendly Smile

Use Customer’s NameThank The Customer

Be Positive

5.3.6.2

To Feel Understood

5.3.6.2

To Feel Understood

Listen Actively

Paraphrase

Ask Key Questions

Give Positive FeedbackEmpathize

5.3.6.3

To Feel Comfortable

5.3.6.3

To Feel Comfortable

Enthusiastic Welcome

Relieve Anxiety

Explain Actions CalmlyEnsure Physical Comfort

5.3.6.4

To Feel Appreciated

5.3.6.4

To Feel Appreciated

Thank The Customer

Follow Up

Over-Deliver

Special Offers

Remember Details About The Customer

5.3.6.5

To Feel Important

5.3.6.5

To Feel Important

Use Customer’s Name

Special Treatment Whenever Possible

Extract Customer’s Opinions

5.3.6.6

To Feel Respected

5.3.6.6

To Be Respected

Listen

Don’t Interrupt

Acknowledge Customer’s ConcernsTake Time To Serve

Ask Advice and Feedback

Dealing With Difficult Customers

Never Take It Personal

Remain Calm - ListenFocus On The ProblemReward Yourself When SuccessfulWhen All Else Fail, Ask For Help

Identifying a Customer Service

Strategy

Step 1

Determine What Is Most Important For Your Customers

Step 2

Determine The Weakest Areas Of Your Competitors

Step 3

Determine The Company’s Current And Potential Resources and Capabilities

Step 4

Develop a Strategy That:

Addresses Important Customer NeedsExploits Competitor’s Weak AreasFits Company’s Capabilities and Potentials

4 Core Elements Of Service Strategy

Service Reliability

Service Surprise

Service Recovery

Service Fairness

5.4.2.1

Service Reliability

Accurate

Dependable

Keep Promises

Is Attitude and Design

5.4.2.2

Service Surprise

The Unexpected Extra

Surprise with Details

The “Wow Factor”

“Majors with Minors”

5.4.2.3

Service Recovery

How to Regain Customer Confidence?

Stand Behind Your ServiceIdentify the ProblemsResolve Effectively

Improve the System

5.4.2.4

Service Fairness

Level Playing Field Company - Customer

Ethical

Keep Promises - Reliability

Give Prompt Service - Responsiveness

Offer Clean Premises - Tangibles

Be Competent/Courteous - Assurance

Extend Caring Individualized Attention - Empathy

Customer Equity

Definitions

The Total of the Discounted Lifetime Values of All the Firm’s Customers

A Firm is Only as Good as its Customer Think it Will Be the Next Time They Will Do Business With That Firm

3 Drivers of Customer Equity

Value Equity

Brand Equity

Retention Equity

5.5.1.1

Value Equity

The Customer’s Objective Evaluation of the Firm’s Offerings

Drivers of Value Equity:Quality of Offerings

Convenience To Do Business With The Firm

5.5.1.2

Brand Equity

The Customer’s Subjective View of the Firm And Its Offerings

Drivers of Value Equity:Brand Awareness

Attitude Towards BrandPerception of Brand Ethics

5.5.1.3

Retention Equity

The Customer’s View of Strength of the Relationship Between the Customer and the Firm

5.5.1.3

Retention Equity

Does the Customer Benefit From the Relationship?

Does the Firm Benefit From the Relationship?Does the Customer Stand to Lose if the Relationship Ends?

5.5.1.3

Drivers of Retention Equity

Loyalty Programs

Special Recognition and Treatment ProgramsAffinity (Emotional Connections) ProgramsCommunity ProgramsKnowledge Building Programs

10-Point Customer Service Commitment

Customers Must Have Service Available When They so Require

Customers Must Be Able To Find Knowledgeable Service Staff

Customers Must Be Able To Schedule a Service Promptly

Customers Must Have Their Problems Diagnosed Within 24 Hours

Customers Must That Parts Are Available When They Need Them

Customers Must Be Notified Promptly Of Completed Repairs

Customers Must Be Updated During The Repair Process

Customer Repairs Must Be Finished When Promised at The Price as Promised

Customers Problems Must Be Resolved Correctly the First Time

Customers Must Have Assistance in Understanding Warranty Coverage and Resolving Warranty Issues

How to Manage Success

Success - ComplacencyComplacency - the Architecture to Your Downfall

Incentive= Motivation= Success

Reward Decisions Not Outcome

How to Manage Success, Cont’d

Win Like You Are Used To It

Lose Like You Enjoy It

7 Essential Habits of a Successful Team

Commitment

Teamwork

Clear Targets

Sound Game Plan

Leadership and Followership

Celebrate Successes

Want To Win

7 Elements of Success Mindset

5.7.8.1

Desire

5.7.8.1

Desire

“What the Mind of a Man Can Conceive and Believe, the Mind Can Achieve”

Napoleon Hill

5.7.8.2

Commitment

Built on Integrity and Wisdom

5.7.8.3

Responsibility

5.7.8.4

Hard Work Through Sacrifice and Self-

Discipline

5.7.8.5

Positive Believing

Reason to Believe Positive Attitude

Making the Effort

5.7.8.6

Power of Persistence

CommitmentDetermination

Comes From Purpose

5.7.8.7

Pride of Performance

5.7.8.7

Pride of Performance

Represents Pleasure with Humility

Half-Hearted Efforts Does not Produce Half Results, it Produces Nothing

Every Job is a Self-Portrait of the Doer

Pride Comes From Within. Gives the Winning Edge

Why We Fail

Achieving Failure

Successfully Executing a Bad Plan

Lack of Persistence

Persistence in What We Do

Resistance Against What Should Not Be Done

Winners Are Struck, Not Destroyed

We Quit

Lack of Conviction

Lack of Confidence and Courage

Rationalizing

Winners Analyze But Never Rationalize

Losers Have a Big Book of Excuses

Not Learning From Past Mistakes

Failure is a Detour Not a Dead End

Experience is the Name Given to Past Mistakes

Lack of Discipline

Discipline Takes:

Self Control

Sacrifice

Avoiding Distractions and TemptationsStaying Focused

Poor Self-Esteem

Lack of Self-Respect

Lack of Self-Worth

One’s Self is Not to Be Found But to Be Created

Idleness, Laziness and Making Excuses Are Consequences

Fatalistic Attitude

Prevents People From Accepting Responsibilities For Their Position In Life

They Attribute Success And Failure to LuckThey Wait For Things to Happen Rather Than Make Them Happen

Section 5 Summary

You Can Stop Your Customers From Running Away

Customer Service Is Not Rocket Science – You Can Create It

TooService Culture – Make It a Natural

Part of Your Business

Identify a Service Strategy The Suits

Your Business

Find Out What Your Customers Think of

Your Service

Create Your Own Customer Service

Commitment

Learn How to Manage The

Success You Will Create

Avoid The Pitfalls That Will Make All Your Efforts Fail

Satisfied Customers Cause Less

Problems Than Others

Satisfied Customers Give You More of Their Business

Satisfied Customers Cost Much Less

Than Others

Satisfied Customers Refers Your Business To Other Customers

Sect 5, Satisfied customers, why are they really important to my net profit

customer satisfaction5

customer needs5

customer equity5

customer satisfactioncare

customer satisfactionwhat

customer satisfactiondeliver

customer satisfactiontone5

customer satisfactiongone

Automotive

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