Customer Care Without Customer Care Without Pulling Out Your HairPulling Out Your Hair

Presented by Gary Hall, Extension AgentPresented by Gary Hall, Extension Agent

CSU Cooperative ExtensionCSU Cooperative Extension

Developed by Mike D. Woods, Oklahoma State UniversityDeveloped by Mike D. Woods, Oklahoma State University

Why Do Customers Quit?Why Do Customers Quit?Dr. Michael LeBoeuf, in his book, “How to Win

Customers and Keep Them for Life” reported from a survey on why customers quit that:

• 3% move away• 5% develop other friendships• 9% leave for competitive reasons• 14% are dissatisfied with the product• 68% quit because of an attitude of indifference or

rudeness toward the customer by the owner, manager or some employee

Creating and keeping Creating and keeping customers is the single customers is the single most important goal of most important goal of

any employee.any employee.

Cost of Lost CustomerCost of Lost CustomerMrs. Smith 1 Person

• Tells eleven others +11 People

• Who tell 5 each +55 PeopleTotal who heard 67 People

• Maybe 25% decide not to shop

Only 1 of those 25 dissatisfied customers will ever tell you that they

are dissatisfied.

It costs $19 to keep a customer

It costs $118 to get a new customer in the store

Cost to keep Mrs. Smith happy $19Cost of attracting 17 new customers $2,006

Source:Dr. Paul TimmSeven Power Strategies for Building Customer Loyalty

By knowing the customer’s By knowing the customer’s needs and meeting their needs and meeting their

expectations, they are satisfied expectations, they are satisfied and will return. and will return.

As Employees we are hospitality As Employees we are hospitality representatives or ambassadors representatives or ambassadors

for both the business and for both the business and community.community.

No matter what your No matter what your business, business,

customers buy only two customers buy only two things:things:

Good Feelings&

Solutions to Problems

Customers are not Customers are not always right,always right,

but they are alwaysbut they are alwaysthe the BOSSBOSS..

Guest FriendlyGuest Friendly

• Moment of Truth– The point at which your actions cause a guest

to form an impression about you, the business or organization you represent, and your community.

• Positive• Negative• Neutral

Moment of TruthMoment of Truth

• Positive Experience– Customer tells 5 people

• Neutral Experience– We don’t know– survey

Moment of TruthMoment of Truth

• Negative Experience– Customer tells 9-10 – 13% of them will tell 20– Every complaint represents 26 customers

who didn’t complain…they just don’t come back.

• Good News– 54-70% will do business again if complaint

resolved– 90% will do business again if resolved

quickly.

““The average business The average business spends 6 times more $$$ to spends 6 times more $$$ to attract new customers than attract new customers than

to keep existing ones.”to keep existing ones.”

(Bill Evans, Institute of Professional Training)(Bill Evans, Institute of Professional Training)

You Are The ValueYou Are The Value

• You provide a positive experience for our customers.

• You help in providing an answer to their problem.

• You are critical in retaining customers.• Thank you!