1. 2 marketing, financial, operations and hrm common research objectives for services that help us...
TRANSCRIPT
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Marketing, financial,
operations and HRM
Common research objectives for services that help us listen to the
customer• To identify dissatisfied customers• To discover customer requirements or expectations• To monitor and track service performance• To assess overall company performance compared to competition• To assess gaps between customer expectations and perceptions• To gauge effectiveness of changes in service• To appraise service performance of individuals and teams for rewards• To determine expectations for a new service• To monitor changing expectations in an industry• To forecast future expectations 3
Criteria for an effectiveservice research program
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6
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• Executive visits to customers• Management listing to customers• Research on intermediate
customers• Research on internal customers
Relationship marketing• is a philosophy of doing business that focuses on
keeping current customers and improving relationships with them
• does not necessarily emphasize acquiring new customers
• is usually cheaper (for the firm)– keeping a current customer costs less than attracting a new
one
• thus, the focus is less on attraction, and more on retention and enhancement of customer relationships
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7-9
“Bucket theory of marketing”
Most ProfitableCustomers
Least ProfitableCustomers
What segment spends more withus over time, costs less to maintain,spreads positive word of mouth?
What segment costs us intime, effort and money yetdoes not provide the returnwe want? What segment isdifficult to do business with?
OtherCustomers
BestCustomers
The “80/20” Customer pyramid
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7-11
Profit generated by a customer over time
7-12
Relationship development model
ExcellentQuality
andValue
I. Financial Bonds
II. Social Bonds
IV. Structural
Bonds
III. CustomizationBonds
Volume and Frequency Rewards
Bundling and Cross Selling
Stable Pricing
Social Bonds Among Customers
Personal Relationships
Continuous Relationships
Customer Intimacy
Mass Customization
Anticipation/ Innovation
SharedProcesses and Equipment
Joint Investments
Integrated Information Systems
Levels of retention strategies
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Customer satisfaction
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8-15
Service Recovery Paradox
“A good recovery can turn angry, frustrated customers into loyal ones. ..can, in fact, create more goodwill than if things had gone smoothly in the first place.” (Hart et al.)
HOWEVER: only a small percent of customers complain service recovery must be SUPERLATIVE
only with responsiveness, redress, and empathy/courtesy only with tangible rewards
even though service recovery can improve satisfaction, it has not been found to increase purchase intentions or perceptions of the brand
service recovery is expensive