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Creating And Maintaining Good Customer Relationships

Presentation for "Creating and Maintaining Good Customer Relationships", Eastern New Mexico University Ruidoso Campus, October 28, 2010

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Creating And Maintaining Good Customer Relationships

  1. 1. Eastern New Mexico University Ruidoso Thursday, October 28, 2010
  2. 2.  Business is a “give and take”  Great relationships are based on great service  “Great” customers are loyal  “Great” customers are your best sales people  “Great” customers help you to improve  “Great” customers help grow your business  So, how do you create these “great” relationships?
  3. 3.  You want to make money  You want to grow your business  You want loyal, repeat business as well as continuing new business  YOU WANT CUSTOMERS, NOT JUST CUSTOMERS….what’s the difference?
  4. 4.  What’s the difference between satisfied customers and loyal customers? Satisfied: content, completely paid, as a bill, convinced, as in an argument. Loyal: faithful to one’s oath, commitments, or obligation, faithful to any leader, party, or cause, or to any person or thing conceived as deserving fidelity. Characterized by or showing faithfulness to commitments, vows, allegiance, obligations, etc.
  5. 5.  Satisfied customers are easy to get-just do most things right most of the time, and generally give them what they want.  Satisfaction is based on basic and predictable expectations  For example, when you go to a McDonald’s drive through window, you expect that they will be offering french fries on the menu. Ordering french fries and receiving them results in satisfaction.
  6. 6.  In his book Build Your Customer Strategy, James Barnes says “Loyalty comes through the creation of an emotional connection. Satisfaction is a step along the way.”  Loyalty comes from the emotional connection with a customer’s subconscious expectations, one that they cannot verbalize.  You must EXCEED their expectations, and impress them.  “I didn’t expect you to do THAT for me!”
  7. 7.  Satisfaction is fleeting  Once a competitor comes along who is better, faster, or cheaper, satisfaction becomes irrelevant and customers will leave, unless they have an emotional connection  Loyal customers  Rely on certain brands, products, or services  Trust them  Feel comfortable doing business with them  “My hairdresser….My butcher…My shoe store…My favorite restaurant…”
  8. 8.  Service beyond satisfaction  “Better than your mother..” EXCEPTIONAL service  Class Acts: Service and Inequality in Luxury Hotels in describing excellent customer service at a particular luxury hotel, one guest said: “Well, their linens and their services, and they bring things, they’re so accommodating. They go out of their way to make you feel, y’know, like you matter…they zero in on you and make you feel like you’re not lost in this huge crowd…when we’re travelling, we’re not home, and to be taken care of and have somebody who’s gonna do things for you in a way that’s like, better than your mother!....It makes you feel good”.
  9. 9.  From material items (linens and things, or conscious expectations) to the workers’ treatment of guests (emotional attachment)  Personalized, genuine attention  Exertion of extra effort  Cared for and made to feel special in a way that exceeds expectations of even your mother!
  10. 10. Top Excuses:  “It’s so hard to find employees around here, much less ones who care”  “We can’t afford to pay enough to get quality people”  “The younger generation doesn’t care”  “Our customers are too difficult”  “Employees just don’t get it”  “We are understaffed” Slides 10-20: John R. DiJulius: What’s the Secret to Providing World Class Customer Experience
  11. 11.  Lack of service aptitude  Decline in “people skills”  Inability (of management) in connecting employees jobs and their importance to the success of the company  Poor hiring standards  Lack of experiential training  Not letting employees have input  Failure to implement and execute consistently  Lack of a strong employee culture  Lack of measurements and accountability  Focus on artificial growth
  12. 12.  Lack of Service Aptitude:  Establish your company’s definition of “world class” service  Remove gray area for your employees and provide protocol for service scenarios  Make sure your employees have the tools they need to not only get the job done, but exceed customers’ expectations
  13. 13.  Decline in “People Skills”  Technology/Automation  Customers have become “transactions”  Companies need to “humanize” their systems  Inability to Connect Employee Jobs and Company Success  Every employee, regardless of their position, has an impact on the company’s bottom line  A solid service vision is the foundation of every business’ success-all employees play a part in that vision
  14. 14.  Poor Hiring Standards  Hire Pro-Actively, rather than Re-actively  Lack of Ongoing Experiential Training  Train employees in customer service  Ongoing customer service training for existing employees  Not letting employees have input on systems  Many companies have senior management meetings without including employees who work in the front lines  Including employees allows you to get commitment and buy in from people working with your customers  New perspectives, great ideas
  15. 15.  Failure to implement and execute consistently  Document your protocols  Be consistent  Don’t try to do too much at once  Create a “roll-out” plan for customer service ideas, implement ideas one at a time
  16. 16.  Lack of a Strong Employee Culture  Employees who do not receive exceptional service will never deliver it  Any “world class” organization has these elements:  It is a “world-class” place to work  It has a “world-class” reputation in its community  It helps employees lead “world-class” lives  Management sometimes are the worst role models. They often forget to treat employees as customers.
  17. 17.  Lack of Measurements and Accountability  You must track and measure your customer service systems  Customer surveys  Secret Shoppers  Third Party Companies  Benchmarks & Goals
  18. 18.  Focus on Artificial Growth  Mergers  Acquisitions  Price Cutting  “Fire Sales” or Novelty Marketing Promotions  None of these Result in higher customer satisfaction, exceeding customer expectations, repeat business, or sustainable growth.
  19. 19.  USAA Insurance  Southwest Airlines  The Ritz Carlton Hotels
  20. 20. USAA has consistently received the highest customer service ratings available to all financial services companies, including those not in its niche. 2002: JD Power Chairman’s award 2007 & 2008: Business Week ranked USAA #1 in Customer Service Champs, a list of 25 national businesses A 2007 Forrester Research report referenced in the San Antonio Express-News on June 27, 2007, identified USAA as the leader in customer advocacy based on a customer survey. Eighty-eight percent of the USAA customers surveyed said "My financial provider does what's best for me, not just its own bottom line." No other company evaluated scored higher than 78%. USAA retained the top spot on Forrester Research's study in 2008 and 2009. In their May 2009 issue, Consumer Reports named USAA's brokerage division as the top rated discount brokerage service in the United States. In a survey of 145 companies conducted by Zogby International, USAA ranked #1 in customer service out of 145 American companies, and was subsequently awarded first place in the 2009 MSN Money Customer Service Hall of Fame. USAA employs more than 21,500 personnel at its offices throughout the country. In 2010, USAA was ranked 45th on Fortune Magazine's list of the "100 Best Companies to Work For.” USAA has also been recognized for many years as one of the 50 best corporations for career advancement for Latinas in the US. It has been recognized as a "Military Spouse-Friendly Employer“ and has also been recognized by GI Jobs as one of America's best employers for veterans and reservists.
  21. 21. USAA
  22. 22. Our Mission Statement “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” from www.southwest.com
  23. 23.  Commitment to Customer Service  Keeping customers at the forefront of employees minds  VICE PRESIDENT OF CUSTOMERS  Immerse employees in company culture  Empower employees to make decisions  For the tenth year in a row, Fortune magazine recognized Southwest Airlines in its annual survey of corporate reputations. Among all industries in 2005, FORTUNE has listed Southwest Airlines as number three among America’s Top Ten most admired corporations.  FORTUNE has ranked Southwest Airlines in the top five of the “Best Companies to Work For” in America. Southwest ranked first in 1997 and 1998, second in 1999, and fourth in 2000.  For 2007, the eighth year in a row, Business Ethics magazine lists Southwest Airlines in its "100 Best Corporate Citizens", a list that ranks public companies based on their corporate service to various stakeholder groups. Southwest is one of only 11 repeat winners that have made the list all eight years.  In 2005 and again in 2008 The American Customer Satisfaction Index (ACSI) recognized Southwest Airlines as leading the industry in customer satisfaction. The ACSI, conducted by the University of Michigan, independently tracks customer satisfaction levels by measuring the household consumption experience.
  24. 24. Southwest Airlines
  25. 25.  AAA Four and Five Diamond Hotel and Restaurant Awards  Mobile Five and Four Star Awards  Conde Naste Traveler Gold List  Travel & Leisure 500 Greatest Hotels in the World
  26. 26.  Gold Standards  The Credo  The Motto  The Three Steps of Service  Service Values  The 6th Diamond  The Employee Promise
  27. 27. Ritz Carlton