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Glenn MuskeRural and Agribusiness Enterprise Development Specialist
[email protected], 2016
Service:A Tool for Gaining and Retaining Customers
Bowman, ND
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5 Things Customers Most Often Discuss with Friends, Relatives and
Just About Anyone5. Low quality of goods and services4. Price3. Hidden information and costs2. Inaccessibility1. Service including:
• Not listening• Unresolved issues• Rude staff or no staff• Not keeping promises• Poor signage• Messy store
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Traditional Marketing Online Marketing
PRPaid
Promotion
Distribution Channels
Customer ServiceVisualMix
One-on-one & Networking
Word-of-mouth & ReviewsReputation
YOUMarketing
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Customer Service = Customer Satisfaction•Gaining the Customer
• Good service gets talked about – Your customer is your ambassador• Good service will bring the first-timer back to see if this was a one-time event or if it
continues. • The “WOW” experience good but fades if only a one-time event• Mark Twain – “Always do right! This will gratify some people and astonish the rest.”
•Retaining the Customer – Why?• 80/20 rule• Expense
• $20-$50 to gain a new customer• $1-$3 to retain an existing customer
• Ability to learn more about them • Make new ambassadors
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Write down an example of a missed customer service experience you have experienced.
Write down an example of one great customer service experience.
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Steps in the Consumer Buying Behavior
Need recognition/Problem identification
Information Search
Alternative Evaluation
Purchase Decision
Post-Purchase Behavior
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Consumer Buying Behavior Steps
Need recognition/Problem identification
Information Search
Alternative Evaluation
Purchase Decision
Post-Purchase Behavior
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Customer Service includes:• After purchase support• Warranty/Guarantee• Refunds• Tips and ideas how to use• Product updates• Staying in touch• Delivery/pick-up/disposal/wrapping• ?????????
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Details Do Matter!
As a consumer, do you pay attention to details?What are some examples?
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What We Know
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Service Statistics
• Only 4% of customers ever complain.
• For every complaint there are 26 other customers with unresolved complaints• Six have serious problems.
• A dissatisfied customer will tell up to 10 people. Approximately 13% will tell up to 20 people. (And these numbers were pre-Internet)
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Service Statistics• Happy customers will tell between 3 and 5 people about their positive
experiences.
• Costs 5-6 times more to attract customers than to keep old ones.
• 89% of consumers will go to a competitor following a poor customer experience
• 75% of customers who leave cite “rude staff.” And 50 % indicate a lack of a timely response
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Act fast! 82 to 95 percent
of dissatisfied customers will come back if a problem is resolved quickly
and sincerely.95 percent
will come back if a problem is solved on the spot.
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Service and Social Media• Nearly 50% of people expect a response in 60 minutes
• 32% expect a response in 30 minutes
• Response expected 24/7
• The possible audience is immense for failure• United Airlines and broken guitar – 12 million views
• https://www.youtube.com/watch?v=5YGc4zOqozo&feature=youtu.be
• 22% will post a positive comment when they get a positive response
• It can happen immediately
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Why Customers Stop Doing Business
• 1% Die• 3% Move away• 5% Other reasons• 9% Competition• 14% Don’t like the product or service• 68% Indifferent attitude of sales people
About 95% of the customers that quit will not tell you when or why they quit, they just leave.
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Developing the “Service” Mindset
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"Attitude precedes service. Your positive mental attitude is the basis for the way you act and react to people. – Jeffrey Gitomer
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Examples of “Service” Found in Mission Statements:
“We are committed to helping people identify and meet their needs by offering quality services in a caring, professional manner, providing a profitable outcome for everyone.” - Bank
“Satisfy the customer, satisfy the customer, satisfy the customer.”---Henry Ford
“Have it your way.” ---Burger King
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Is 99.9% good enough?
• 5,516,200 cases of flat soft drinks
• The IRS losing 2 million documents
• 811,000 faulty rolls of film
• 12 babies given to wrong parents – each day
• 1,312 calls per second misplaced
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Face to Face
55 percent38 percent7 percent
100 percent
Body languageToneWords
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Telephone
ToneWords
84 percent16 percent
100 percent
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Building a Customer-service Focus
• Build the type of service response that you like to get
• You can’t always be there. Give people:• Training• Flexibility• Responsibility and authority• Your support
(Miracle on 34th St - https://www.youtube.com/watch?v=lKfBUUhFueI )
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Building a Customer-service Focus
• The phone – Do you get a real person? How quickly? Does that person listen? • Your website – Is your contact information easy to find? Do you
clearly outline how a person should file a complaint?
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How do I learn more? LISTEN!!!!Barriers• Listening with “half an ear”• Acting as the judge and jury• Tuning in and tuning out• Little empathy• Pre-judge• Turning off ideas you don’t agree with• Jumping to conclusions
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Reinforce the:5 Keys to Quality Service
• Reliability• Live up to promises, dependable
• Assurance• Offer sense of confidence in you & your skills by answering
questions & offering product knowledge
• Look at the tangibles• Seen & felt, equipment, staff, physical facility
• Empathy• Responsiveness – listen, provide a fair solution, & do it
quickly
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Understand Service Gaps – Expectation vs Reality
• knowledge:• retailers’ perception of customer’s expectations
• standards: • retailers’ standards that do not match customer
expectations
• delivery:• difference between standards and reality
• communication:• promises in promotional campaign vs. reality
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Caution!
Service must increase sales
enough to offset costs
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The Moment of Truth
The point at which your actions cause your
customer to form an impression about you and
your business.
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There are NO second
first impressions!
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How do you know how you are doing?
•Ask•Listen•Survey•Pet Peeve – Don’t tell me what to say
•Check with others (Secret Shopper)
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Service and Community
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Welcome to Our Town“How may I help you?”
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What you will gain?• An understanding of why tourism is important • Knowledge about the “secrets of service”• Skills in giving directions• Skills in answering visitor questions• Knowledge about local attractions, events
and resources• An appreciation of the front-line professional’s
role
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REMEMBER: How service impactS your business?
A happy customer is:• Satisfied• Stays longer• Spends more money• Tells family and
friends
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Glenn MuskeRural and Agribusiness Enterprise Development Specialist
NDSU Extension Center for Community [email protected]
Questions??Resources:
http://www.ag.ndsu.edu/smallbusiness http://powerofbusiness.nethttp://www.extension.org/entrepreneurship