1 2007 appa national conference 25 june, 2007 presented by: will guild, ph.d. and keith owen, ph.d....

1

2007 APPA National Conference25 June, 2007

Presented by:Will Guild, Ph.D. and Keith Owen, Ph.D.

SomersetGuildwww.somersetguild.com

The Road toThe Road toCustomer Loyalty and SupportCustomer Loyalty and Support

© 2007 SomersetGuild2

Who are These Guys?Who are These Guys?

Consultants with over 25 years experience conducting hundreds of research studies for industries such as utilities, oil and gas, technology, and health

Clients have included:• LCRA • Nebraska Public Power• TXU• Reliant Energy• Bluebonnet• American Electric Power

© 2007 SomersetGuild3

Building loyalty creates ‘trust credits’

Trust credits can be ‘redeemed’ when:• You need support in a bond election to make

capital improvement

• You need a rate increase

• You experience reliability issues

• Competition should occur

Why You Must Care aboutWhy You Must Care aboutCustomer Loyalty and SupportCustomer Loyalty and Support

© 2007 SomersetGuild4

Necessary, but not enough to create customer loyalty and support

Satisfaction is volatile; customer loyalty and support is more enduring

You can develop customer loyalty and support by managing the experiences that create it

Satisfaction Is Not EnoughSatisfaction Is Not Enough

© 2007 SomersetGuild5

The Road toThe Road toCustomer Loyalty and SupportCustomer Loyalty and Support

Delivering on Needs and

Expectations

© 2007 SomersetGuild6

Not All Organizations Are EqualNot All Organizations Are Equal

Expectation Scores

Lo

yalt

y S

co

re

1

2

3

4

5

6

78

9

10

11

12

13

14

15

1618

19

20

21

17

Excellent

ExcellentPoor MeanPoor

Mea

n

© 2007 SomersetGuild7

CreatingCreatingCustomer Loyalty and SupportCustomer Loyalty and Support

Creating Emotional

Connectedness

1. Delivering on Needs and Expectations

© 2007 SomersetGuild8

Creating Creating Customer Loyalty and SupportCustomer Loyalty and Support

Creating Emotional

Connectedness

1. Delivering on Needs and Expectations

© 2007 SomersetGuild9

CreatingCreatingCustomer Loyalty and SupportCustomer Loyalty and Support

ShowingYou Care

1. Delivering on Needs and Expectations

2. Creating Emotional Connectedness

© 2007 SomersetGuild10

Creating Creating Customer Loyalty and SupportCustomer Loyalty and Support

ProvidingValue

1. Delivering on Needs and Expectations

2. Creating Emotional Connectedness

3. Showing You Care

© 2007 SomersetGuild11

CreatingCreatingCustomer Loyalty and SupportCustomer Loyalty and Support

1. Delivering on Needs and Expectations

2. Maintaining Emotional Connectedness

3. Showing You Care

4. Providing Value

Loyal, Supportive Customers

12

The Road toThe Road toCommitted Motivated EmployeesCommitted Motivated Employees

© 2007 SomersetGuild13

Customer Loyalty and Support: Customer Loyalty and Support: A Function of Level ofA Function of Level of Employee Commitment and Employee Commitment and

MotivationMotivation

© 2007 SomersetGuild14

The Distribution of Employee Attitudes The Distribution of Employee Attitudes toward Their Organization toward Their Organization

© 2007 SomersetGuild15

The Road toThe Road toCommitted Motivated EmployeesCommitted Motivated Employees

Providing Meaning

© 2007 SomersetGuild16

The Road toThe Road toCommitted Motivated EmployeesCommitted Motivated Employees

Creating a Sense of

Belonging

1. Providing Meaning

© 2007 SomersetGuild17

The Road toThe Road toCommitted Motivated EmployeesCommitted Motivated Employees

Enabling a Sense of

Accomplishment

1. Providing Meaning

2. Creating a Senseof Belonging

© 2007 SomersetGuild18

The Road toThe Road toCommitted Motivated EmployeesCommitted Motivated Employees

Ensuring Fairness, Health,

and Safety

1. Providing Meaning

2. Creating a Senseof Belonging

3. Enabling a Sense of Accomplishment

© 2007 SomersetGuild19

Research and Change Pays OffResearch and Change Pays Off

Measure Change

Safety +88%

Customer Satisfaction +80%

Productivity +90%

Long Term Goals Reached +63%

© 2007 SomersetGuild20

The Road toThe Road toCommitted Motivated EmployeesCommitted Motivated Employees

1. Providing Meaning

2. Creating a Senseof Belonging

3. Enabling a Sense of Accomplishment

4. Ensuring Fairness, Health, and Safety

Committed Motivated Employees

© 2007 SomersetGuild21

An Integrated ApproachAn Integrated Approach

Loyal, Supportive Customers

Delivering on Needs and Expectations

Maintaining Emotional Connectedness

Showing You Care

Providing Value

Providing Meaning

Creating a Senseof Belonging

Enabling a Sense of Accomplishment

Ensuring Fairness, Health, and Safety

22

2007 APPA National Conference25 June, 2007

Presented bySomersetGuild

www.somersetguild.com

The Road toThe Road toCustomer Loyalty and SupportCustomer Loyalty and Support