Post Purchase CustomerConsumer Satisfaction and Commitment Behaviour Week

Post Purchase, Customer/Consumer Satisfaction and Commitment/ Behaviour Week 1 -4

Basic Framework Motivation Perception Search Evaluation Choice Learning 28/10/2021 HAUT Transfer abroad programme

28/10/2021 HAUT Transfer abroad programme

Who are your customers? • External – Direct - Primary – End -user – Suppliers • Internal – Other parts of the organisation no under your control 28/10/2021 HAUT Transfer abroad programme

Your People • Capability – all your people, whether in the front line or not, are recruited and trained against a customer service competency blueprint NVQ • Continuity – You have retention, reward and recognition strategies which encourage people to remain • Courtesy – Your people are polite, considerate, tolerant and friendly when dealing with customers • Creativity – Your people produce ideas for service innovations 28/10/2021 HAUT Transfer abroad programme and improvements

Your Strategy • Commitment – Customer service is a key corporate scorecard indicator: transformational and incremental goals, action programmes and top level accountabilities • Credibility – Your customers have grounds for believing your promises • Classification – You segment your customers, periodically review your segmentation profiles and vary your product / service offer across segment boundaries • Concentration – You focus your marketing efforts on your most 28/10/2021 profitable customers HAUT Transfer abroad programme

Your Customers • Consistency – Your customers always know what to expect from you • Communication – Your customers understand what you say to them; equally you actively promote opportunities for twoway dialogue • Comfort – Your customers feel comfortable with everything which collectively comprises your company’s reputational asset • Contact – You offer customers service at times to suit your customers, not merely at times which suit you. 28/10/2021 HAUT Transfer abroad programme

The Service / Profit Cycle REF The Loyalty Effect (Reichheld) 28/10/2021 HAUT Transfer abroad programme

The 4 Cs approach • Kotler proposition based on the consumer point of view of the 4 Ps • Customer Value • Convenience • Cost • Communication 28/10/2021 HAUT Transfer abroad programme

Who/what is the ideal customer? • • Knows the rules Wants a mutually beneficial relationship Communicates Complains – Constructively – Feedback – The class from hell 28/10/2021 HAUT Transfer abroad programme

Strategic Issues in RM • Mc. Kinsey & Co Framework • The Seven S’s – Strategy – Structure – Systems – Shared Values – Skills/Staff – Style • More applicable in a matrix organisation 28/10/2021 HAUT Transfer abroad programme

Strategy is the key • What is (a) strategy? • Integrated plan for development of marketing orientation SYSTEMS/STRUCTURE • Formalised definitions of markets and mission -SHARED VISION/STYLE • Detailed specification of marketing objectives • Commitment to implementation SKILLS/STAFFING 28/10/2021 HAUT Transfer abroad programme

• Strategy is a coherent set of actions aimed at gaining a sustainable advantage over the competition. . 28/10/2021 HAUT Transfer abroad programme

Shared values • The ideas of what is right and desirable - the mores of the organisation / individuals • Typified by catch phrases / sound bites – – – “We will become a fully customer driven organisation Customers come first Marketing expenditures are an investment Service is paramount” ? ? 28/10/2021 HAUT Transfer abroad programme

Style • The way that management behaves. . . • Top management support - visible commitment to customer related activities • Open communications between all functional groups and marketing staff • Recognition/reward of customer /market oriented behaviour 28/10/2021 HAUT Transfer abroad programme

Structure • Clearly defined responsibilities and reporting lines • Key accounts - recognising important customers • Decentralised marketing staff to provide close and fast support to customers • Staff rotation of non-marketing staff through customer contact positions 28/10/2021 HAUT Transfer abroad programme

Systems • • • Procedures and processes Information - flow Customer intelligence Competitor intelligence Marketing planning and control systems Providing information to customer facing staff • Process easy for both customers and staff. 28/10/2021 HAUT Transfer abroad programme

Skills/Staffing • People in the organisational rather than personal context • Recruitment of people with requisite skills / ability to acquire • Provision of adequate number of customer service staff • Marketing training -programmes and market • Analytical skills in segmentation 28/10/2021 HAUT Transfer abroad programme

Richer Sounds How to make money from old fashioned sales Five basic principles • • • Work should be fun People should get recognition Service rather than sales should be rewarded Inform people and listen to ideas You must show people loyalty 28/10/2021 HAUT Transfer abroad programme

The need for customer obsession Customers are: The most important people in any business Not dependent on us - we depend on them Not an interruption to our work - they are the purpose of it Not doing us a favour Part of the business Not a cold figure on a sales report Not someone to fight People who have wants -we have satisfaction for them Deserve respect The life blood of the HAUT business 28/10/2021 Transfer abroad programme

High level service providers have/ enjoy • • • High staff Low staff Purchase levels = Customer retention levels = Promotional costs = so cost of sales = Number of referrals and recommendations = Prices = so profit levels = 28/10/2021 HAUT Transfer abroad programme

The customer focused company has two layers! • LAYER 1 People who directly serve customers • LAYER 2 People who serve people in layer 1 28/10/2021 HAUT Transfer abroad programme

Lifetime customer value and loyalty • How can it be calculated? • Specifically in your business field • Think of some consumer markets and calculate a value! • Do the same for business to business 28/10/2021 HAUT Transfer abroad programme

This thing called loyalty Incentive loyalty Inertia loyalty Lazy - Habitual loyalty Monopoly loyalty Price loyalty Trend loyalty True - lifetime loyalty 28/10/2021 HAUT Transfer abroad programme

Satisfaction • What is it 28/10/2021 HAUT Transfer abroad programme

Involvement • Is “a reflection of how much the customer has invested* in the relationship and how difficult it would be to sever links” *financially or emotionally This means treating the customers as…. ? 28/10/2021 HAUT Transfer abroad programme

Affinity • How the customers feel emotionally about the brand the would-be alternatives. • This can only be determined after establishing satisfaction and involvement levels… • Hewlett-Packard, • Tesco • Co-op Travelcare. 28/10/2021 HAUT Transfer abroad programme

Customer Loyalty • What is it? • Willingness to keep on doing business with you no matter what. • Share of spending - not market share • The extent to which they will recommend you. 28/10/2021 HAUT Transfer abroad programme

What happens when things go wrong - inevitably • • • Empathy + restoration Dealing with demanding customers* - SARAH at the sharp end. . Stop talking Adopt active listening Reflect content or feeling Act with empathy - Your own mother! Handle the subject matter *David Martin Person first problem second 28/10/2021 HAUT Transfer abroad programme

Training aspects Wide breadth of training needs/methods • Job skills - obviously • Cross training • General business training • Peer training • Off the job • Self -improvement training holistic 28/10/2021 HAUT Transfer abroad programme

WOW FACTORS • Instantly recognisable and valued by customer • They are quick and easy to do • They cost little or nothing! • Tissues? Smile? 28/10/2021 HAUT Transfer abroad programme

Make sure you’re not rewarding the wrong customers • Buy early and pay top prices - leave it until the last minute and get a great deal! • Small purchasers get dealt with quickly - big spenders can wait in line! • The quicker you become a customer - the worse the deal you will get! • Banks? • If you’re a new customer you can have the latest ? ? ? At a give away price if you’re an existing customer you’ll have to pay a lot more. . 28/10/2021 HAUT Transfer abroad programme

Consumers and choice • I just have too much choice. 1980 s Supermarkets - 4, 000 lines now 40, 000 lines • By the year 2020 we will all be clinically stupid, because of the bewildering choices presented to us and lack of time to really understand. . IDM 28/10/2021 HAUT Transfer abroad programme

Bewildering choice • There are - “ thousands of mundane choices [about] these kinds of orange juice and cereal … you lose your life in these things. Your life becomes shallow” • Natan Sharansky 28/10/2021 HAUT Transfer abroad programme

Background to Relationship Marketing DAVIDSON • Cheaper costs of IT = collecting and processing data • More sophisticated and robust databases • Better knowledge of customers • Decline in growth markets - focus of competition • 28/10/2021 Consumers more demanding HAUT Transfer abroad programme

Relationship Marketing means • Long term commitment – NOT JUST FOR CHRISTMAS! • • Building a two way relationship Transparency Total company commitment Listening 28/10/2021 HAUT Transfer abroad programme

Customer Care - the payback! • • Customer service equals quality = success Good image to underpin expansion Increased profitability Happier staff. . . 28/10/2021 HAUT Transfer abroad programme

Satisfied Customer? Rank Xerox Research found that. . . The difference between a satisfied and a very satisfied customer in terms of their willingness to buy again is SIX times 28/10/2021 HAUT Transfer abroad programme

Your customer can be your USP • The quality and history of your relationship is perhaps the only source of competitive advantage that ultimately cannot be copied 28/10/2021 HAUT Transfer abroad programme

Promus Hotels • The promise at Promus is. . If a guest complains to any member of staff that things are not quite right, that member of staff is empowered to cancel their bill! • Madness? Discuss. . . 28/10/2021 HAUT Transfer abroad programme

Promus Hotel - the result • Happy customers • Happier staff - less turnover lower training costs driven by info systems • Assured quality standards • Complaints mean something - they drive service improvements • Refunds = 0. 3% of revenues • Intent to return = 50% higher for customers who were refunded than others. 28/10/2021 HAUT Transfer abroad programme • INNOVATIONS CATALOGUE

Serial complainers • A nice letter to the customer lamenting the fact that the hotel chain cannot meet his/her quality standards and inviting him to stay in a competitor’s facility. . • In UK Forte Hotel group matched expectations by segmenting into Travelodge/ Post House / Crest/ Heritage / Grand. . . 28/10/2021 HAUT Transfer abroad programme

Rank Xerox how they lost the copier market. . • Machines were failure prone. . • So they had to set up a Service departtment • Machines still failured so … do you improve the product? OR. . • Strengthen the service support • Customers wanted machines that did not breakdown … FULL STOP • Rank had no incentive to improve their machines - it would affect the profitability of the service section CIRCLE? 28/10/2021 HAUT Transfer abroad programme

28/10/2021 HAUT Transfer abroad programme

Customer Loyalty Ladder 28/10/2021 HAUT Transfer abroad programme