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Customer Service: Gain and Retain Customers- Bowman, 2016

Customer service can be a great way to both gain as well as retain customers. While we often think of service only after a transaction, it actually starts long before and goes on forever. It is a key marketing tool.

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Customer Service: Gain and Retain Customers- Bowman, 2016

  1. 1. Glenn Muske Rural and Agribusiness Enterprise Development Specialist Glenn.Muske@ndsu.edu October, 2016 Service: A Tool for Gaining and Retaining Customers Bowman, ND
  2. 2. 5 Things Customers Most Often Discuss with Friends, Relatives and Just About Anyone 5. Low quality of goods and services 4. Price 3. Hidden information and costs 2. Inaccessibility 1. Service including: • Not listening • Unresolved issues • Rude staff or no staff • Not keeping promises • Poor signage • Messy store
  3. 3. Traditional Marketing Online Marketing PR Paid Promotion Distribution Channels Customer Service Visual Mix One-on-one & Networking Word-of- mouth & Reviews Reputation YOU Marketing
  4. 4. Customer Service = Customer Satisfaction •Gaining the Customer • Good service gets talked about – Your customer is your ambassador • Good service will bring the first-timer back to see if this was a one-time event or if it continues. • The “WOW” experience good but fades if only a one-time event • Mark Twain – “Always do right! This will gratify some people and astonish the rest.” •Retaining the Customer – Why? • 80/20 rule • Expense • $20-$50 to gain a new customer • $1-$3 to retain an existing customer • Ability to learn more about them • Make new ambassadors
  5. 5.  Write down an example of a missed customer service experience you have experienced.  Write down an example of one great customer service experience.
  6. 6. Steps in the Consumer Buying Behavior Need recognition/Problem identification Information Search Alternative Evaluation Purchase Decision Post-Purchase Behavior
  7. 7. Consumer Buying Behavior Steps Need recognition/Problem identification Information Search Alternative Evaluation Purchase Decision Post-Purchase Behavior
  8. 8. Customer Service includes: • After purchase support • Warranty/Guarantee • Refunds • Tips and ideas how to use • Product updates • Staying in touch • Delivery/pick-up/disposal/wrapping • ?????????
  9. 9. Details Do Matter! As a consumer, do you pay attention to details? What are some examples?
  10. 10. What We Know
  11. 11. Service Statistics • Only 4% of customers ever complain. • For every complaint there are 26 other customers with unresolved complaints • Six have serious problems. • A dissatisfied customer will tell up to 10 people. Approximately 13% will tell up to 20 people. (And these numbers were pre-Internet)
  12. 12. Service Statistics • Happy customers will tell between 3 and 5 people about their positive experiences. • Costs 5-6 times more to attract customers than to keep old ones. • 89% of consumers will go to a competitor following a poor customer experience • 75% of customers who leave cite “rude staff.” And 50 % indicate a lack of a timely response
  13. 13. Act fast! 82 to 95 percent of dissatisfied customers will come back if a problem is resolved quickly and sincerely. 95 percent will come back if a problem is solved on the spot.
  14. 14. Service and Social Media • Nearly 50% of people expect a response in 60 minutes • 32% expect a response in 30 minutes • Response expected 24/7 • The possible audience is immense for failure • United Airlines and broken guitar – 12 million views • https://www.youtube.com/watch?v=5YGc4zOqozo&feature=youtu.be • 22% will post a positive comment when they get a positive response • It can happen immediately
  15. 15. Why Customers Stop Doing Business • 1% Die • 3% Move away • 5% Other reasons • 9% Competition • 14% Don’t like the product or service • 68% Indifferent attitude of sales people About 95% of the customers that quit will not tell you when or why they quit, they just leave.
  16. 16. Developing the “Service” Mindset
  17. 17. "Attitude precedes service. Your positive mental attitude is the basis for the way you act and react to people. – Jeffrey Gitomer
  18. 18. Examples of “Service” Found in Mission Statements: “We are committed to helping people identify and meet their needs by offering quality services in a caring, professional manner, providing a profitable outcome for everyone.” - Bank “Satisfy the customer, satisfy the customer, satisfy the customer.” ---Henry Ford “Have it your way.” ---Burger King
  19. 19. Is 99.9% good enough? • 5,516,200 cases of flat soft drinks • The IRS losing 2 million documents • 811,000 faulty rolls of film • 12 babies given to wrong parents – each day • 1,312 calls per second misplaced
  20. 20. Face to Face 55 percent 38 percent 7 percent 100 percent Body language Tone Words
  21. 21. Telephone Tone Words 84 percent 16 percent 100 percent
  22. 22. Building a Customer-service Focus • Build the type of service response that you like to get • You can’t always be there. Give people: • Training • Flexibility • Responsibility and authority • Your support (Miracle on 34th St - https://www.youtube.com/watch?v=lKfBUUhFueI )
  23. 23. Building a Customer-service Focus • The phone – Do you get a real person? How quickly? Does that person listen? • Your website – Is your contact information easy to find? Do you clearly outline how a person should file a complaint?
  24. 24. How do I learn more? LISTEN!!!! Barriers • Listening with “half an ear” • Acting as the judge and jury • Tuning in and tuning out • Little empathy • Pre-judge • Turning off ideas you don’t agree with • Jumping to conclusions
  25. 25. Reinforce the: 5 Keys to Quality Service • Reliability • Live up to promises, dependable • Assurance • Offer sense of confidence in you & your skills by answering questions & offering product knowledge • Look at the tangibles • Seen & felt, equipment, staff, physical facility • Empathy • Responsiveness – listen, provide a fair solution, & do it quickly
  26. 26. Understand Service Gaps – Expectation vs Reality • knowledge: • retailers’ perception of customer’s expectations • standards: • retailers’ standards that do not match customer expectations • delivery: • difference between standards and reality • communication: • promises in promotional campaign vs. reality
  27. 27. Caution! Service must increase sales enough to offset costs
  28. 28. The Moment of Truth The point at which your actions cause your customer to form an impression about you and your business.
  29. 29. There are NO second first impressions!
  30. 30. How do you know how you are doing? •Ask •Listen •Survey •Pet Peeve – Don’t tell me what to say •Check with others (Secret Shopper)
  31. 31. Service and Community
  32. 32. Welcome to Our Town “How may I help you?”
  33. 33. What you will gain? • An understanding of why tourism is important • Knowledge about the “secrets of service” • Skills in giving directions • Skills in answering visitor questions • Knowledge about local attractions, events and resources • An appreciation of the front-line professional’s role
  34. 34. REMEMBER: How service impactS your business? A happy customer is: • Satisfied • Stays longer • Spends more money • Tells family and friends
  35. 35. Glenn Muske Rural and Agribusiness Enterprise Development Specialist NDSU Extension Center for Community Vitality Glenn.Muske@ndsu.edu Questions?? Resources: http://www.ag.ndsu.edu/smallbusiness http://powerofbusiness.net http://www.extension.org/entrepreneurship