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"Customer service is a series of activitiesdesigned to enhance the level of
customer satisfaction that is, the feelingthat a product or service has met thecustomer expectation."
https://www.youtube.com/watch?v=bTbHwnxCGaI
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For every customer complaint, there are 26other customers who have remained silentSource: Lee Resource Inc
It takes 12 positive service experiences tomake up for one negative experienceSource: Understanding Customers by Ruby Newell -Legner
Happy customers who get their issueresolved tell about 4 to 6 people about theirexperience.Source: White House Office of Consumer Affairs, Washington, DC
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Personal Service Industries Intangible purchases ExperiencesExamples: business and personal
Temp Agencies Dry Cleaning Tax Preparation Hair/Nail services Landscaping Gyms
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No customers, no businessno business, noprofit!Service industry businesses sustain throughthe satisfaction of their customersThe top three drivers for investing in
customer experience management are:1. Improve customer retention (42 %)2. Improve customer satisfaction (33 %)3. Increase cross-selling and up-selling (32 %)Source: Aberdeen report Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand
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It is important to not only gain newcustomers, but to retain them
Profitability of customer retention higherprofit margins
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Do customers switch service
providers to avoid having to beopen and honest about bad
situations?
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1. What factors affect a consumers desire to beopen and honest after a negative experience?
H01: The perception of intimacy a consumerhas with his/her service provider has no effector a negative effect on their willingness to beopen after a negative service experience
HA1: A consumer who has an intimaterelationship with his/her service provider has ismore likely to be open after a negative serviceexperience.
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2. What factors affect the perception consumershave about their relationship with their serviceprovider?
H02: The frequency in which a consumer
receives a service has no effect or a negativeeffect on the perception of intimacy he/shehas with their service provider.
HA2: Consumers who receive a servicefrequently are more likely to develop aperception of intimacy with their serviceprovider.
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3. What are the driving forces of a consumer givingfeedback?
H03: The perception that a consumer has abouta service being a reflection of who they are hasno effect or a negative effect on their willingnessto complain after a bad service experience.
HA3: Consumer who feel a service is a reflectionof who they are, are more likely to complainafter a bad service experience.
H04: Customers satisfaction with a service has
no effect or negative effect on their opennesswith his/her service provider.
HA4: Customers satisfaction with a service has apositive effect with their openness with his/herservice provider
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4. What factors impact how a consumer reactsto a negative service experience?
H05: The perception a consumer has that aservice provider does not want to know their
opinion has no effect or a negative effecton their willingness to switch serviceproviders after a bad experience.
HA5: When consumers feel their serviceprovider do not want to know their opinions,they are more likely to switch serviceproviders after a bad experience.
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Survey 10 questions 25 respondents
Sent via GoogleDocs
In-depth Interviews 10 questions 5 stylists
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Driving forces of customer retentionReasons behind switching service
providers
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Age range 24-50
8 Males and 17 females
Atlanta area
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The average number of repeatcustomers was 82%All of the respondents would fix right
away and the customer was likely toreturn3 respondents salons had standardrecovery plans
Additional service/reimbursement Week Adjustment Policy Free service by higher level stylist
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When asked about a difficult experiencewith a client, most respondentsmentioned miscommunication or lackof shared opinions
All respondents mentioned when bothparties worked together to achieve astyle, the satisfaction rate was higher4 out 5 respondents managementencouraged personal relationships withtheir clients
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Linear RegressionChi Square
Content AnalysisProportionsSummary Statistics
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H01: The perception of intimacy aconsumer has with his/her serviceprovider has no effect or a negativeeffect on their willingness to be openafter a negative service experience.
HA1: A consumer who has an intimaterelationship with his/her service provideris more likely to be open after a negative
service experience.
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Linear Regression
Regression Statistics
R 0.40228
R Square 0.16183
Adjusted R Square
0.15709
S 1.73501
Total number of observations 179
open = 3.5719 + 0.4379 * intimate
ANOVA
d.f. SS MS F p-level
Regression 1. 102.87094 102.87094 34.17343 0.
Residual 177. 532.81621 3.01026
Total 178. 635.68715
Coefficients Standard Error t Stat p-level H0 (5%) rejected?
Intercept 3.57192 0.23944 14.91749 0.E+0 Yes
intimate 0.43789 0.07491 5.8458 0. Yes
T (5%) 1.97346
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H05: The perception a consumer has that aservice provider does not want to knowtheir opinion has no effect or a negativeeffect on their willingness to switch serviceproviders after a bad experience.
HA5: When consumers feel their serviceprovider do not want to know their opinions,they are more likely to switch serviceproviders after a bad experience.
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Linear Regression
Regression Statistics
R 0.53426
R Square 0.28543
Adjusted R Square 0.2814
S 1.77922
Total number of observations 179
considernew = 2.4527 + 0.5862 * dontwanttoknow
ANOVA
d.f. SS MS F p-level
Regression 1. 223.81924 223.81924 70.70312 1.34337E-14
Residual 177. 560.31484 3.16562
Total 178. 784.13408
Coefficients Standard Error t Stat p-level H0 (5%) rejected?
Intercept 2.45275 0.28357 8.64964 3.10862E-15 Yes
dontwanttoknow 0.58625 0.06972 8.40851 1.34337E-14 Yes
T (5%) 1.97346
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Standard Service Recovery ProtocolProviders should leverage relationship
with customer to promote openness andintimacy One size fits one
Providers must immediately correct apoor service to earn a customers loyalty Invest in training practices
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