The World of Customer Service, 2e Odgers

1Chapter 3

Chapter 3Chapter 3Customer Behavior, Customer Customer Behavior, Customer

Loyalty, and Exceptional ServiceLoyalty, and Exceptional Service

ObjectivesDescribe customers’ buying behavior relative to their basic needs.Distinguish between customer satisfaction and customer loyalty.State the relationship between customer expectations and customer perceptions.Describe methods companies use to measure customer satisfaction.

The World of Customer Service, 2e Odgers

2Chapter 3

Understanding Customer Understanding Customer BehaviorBehavior

Basic Customer Behavior involves:

Why they buyHow they buyWhat causes them to return

Four Customer Needs:1. Need to be

understood2. Need to feel

welcome3. Need to feel

important4. Need for comfort

The World of Customer Service, 2e Odgers

3Chapter 3

Earning Customer LoyaltyEarning Customer Loyalty

Tips to Earn Repeat Business from CustomersAsk questions

Be honest

Fix problems

Learn from the competition

Back up your company’s promises

Offer one-stop service

Build on emotion-friendly service culture

The World of Customer Service, 2e Odgers

4Chapter 3

Customer TurnoffsCustomer Turnoffs

Value turnoffsInclude inadequate guarantees, a failure to meet quality expectations, and high prices relative to value received

System turnoffsInclude irritations relative to the way a company delivers its products or services

People turnoffsInclude showing lack of courtesy or attention, showing an unprofessional behavior, projecting an indifferent attitude

The World of Customer Service, 2e Odgers

5Chapter 3

Offering Exceptional Offering Exceptional Customer ServiceCustomer Service

Exceptional customer service occurs when the customer gets more than they expected

Customer expectationsWhat a customer wants before a transaction

Customer perceptionsWhat a customer identifies as quality of service during and after the transaction

The World of Customer Service, 2e Odgers

6Chapter 3

Critical First ImpressionsCritical First Impressions

“You never get a second chance to make a first impression”

Baseline standardThe minimum level of service it takes to satisfy customers under ordinary circumstances

The World of Customer Service, 2e Odgers

7Chapter 3

EmpowermentEmpowerment

“Giving somebody power or authority”

BenefitsThe elimination of nearly all multilevel problem solving that involves management

An empowered staff reduces the amount of time customers spend reaching satisfactory conclusions

The World of Customer Service, 2e Odgers

8Chapter 3

Measuring Customer Measuring Customer SatisfactionSatisfaction

Customer satisfaction is in the eye of the beholder (the customer)

The best way to measure customer service is to

Ask Your Customers

The World of Customer Service, 2e Odgers

9Chapter 3

Measuring Customer Measuring Customer SatisfactionSatisfaction

When customers are asked about the level of service they receive, it

Helps the company set realistic goals and monitor trendsProvides critical input for analyzing problem areasAssists the company in monitoring progress toward improvementsKeeps the company close to its customers

The World of Customer Service, 2e Odgers

10Chapter 3

Measurable CustomerMeasurable CustomerService StandardsService Standards

Examples:Answer telephones by the third ring.

Serve hot food at a temperature of at least 140 degrees.

Smile and greet all guests within 10 feet of you.

Respond to each shopper, so that he or she does not stand in line more than two minutes.

Offer bellman or concierge service to every hotel guest.

Speak professionally to clients and avoid the use of slang expressions.