Customer Service

Patty Rai Smith, Cooperative Extension Service,

University of Kentucky

Barbara Cunningham, University Outreach and Extension, Missouri SBDC

Customer Loyalty Ladder

Suspect Prospect Customer Client Advocate

*One Stop Marketing by Jonathan Trivers

Advocate

Client

Customer

Prospect

Suspect

Customer Loyalty Ladder

Suspect

Anyone who reads or hears an ad, looks at a brochure or

encounters some other type of promotion is a suspect

Customer Loyalty Ladder

Prospect

Someone who pays attention to your promotion

Customer Loyalty Ladder

Customers

Those who buy your product or service

Customer Loyalty Ladder

Client

A customer who buys a second time

Customer Loyalty Ladder

Advocate

A customer who gives unpaid advertising for the

products or services of a business

It takes a least 3 times as much money to attract a

new customer via traditional forms of advertising as

to re-attract a repeat customer

It takes at least 30 times as much marketing money to

attract a new customer via traditional forms of

advertising as to have a satisfied customer find new

customers for you

Satisfied Customer Referral

Traditional Advertising

Most business owners spend less than 5% of their

marketing dollars on their customers and spend 95%

of their marketing dollars trying to find new customers

Traditional Investment

Advocate

Client

Customer

Prospect

Suspect

5% Marketing $

95% Marketing $

Customer Loyalty Ladder

Goal:

Invest in developing satisfied customers

It takes at least 30 times as much marketing money to

attract a new customer via traditional forms of

advertising as to have a satisfied customer find new

customers for you

Satisfied Customer Referral

Traditional Advertising

Remember:

How Can You Accomplish This?

How?

Know who your customers are

Know that your best customer is your most recent satisfied customer

Know that your best word-of-mouth advertising comes from your most recent satisfied customer

Act in a way that moves people up the ladder

Lesson Learned

The most recent satisfied customer who has purchased

products from you is the least expensive marketing

way to find new customers. People love to tell if they

are happy.

Lesson Learned

Your worst customer, who will rip you apart to all

their friends, is your most recent unhappy customer.

Advocate

Client

Customer

Prospect

Suspect

Traditional Advertising

Nontraditional Advertising

A great marketing company spends money here

Recommendation

30% of your marketing dollars should be spent on

keeping customers…..keeping them happy.

Not 5%…..30%.

Invest in Keeping Customers

Advocate

Client

Customer

Prospect

Suspect

To Keep Customers:30% Marketing $

To Find Customers:70% Marketing $

Lessons Learned

To climb the loyalty ladder, business owners must

exceed customer expectations

FISH

Choose Your Attitude Play Make Their Day Be Present

Sample Company

First Guarantee Financial

Play

Benefits of Play

Happy people treat others well Fun leads to creativity The time passes quickly Having a good time is healthy Work becomes a reward not just a way to rewards

Implementing Play

Post signs saying, This is an Adult Playground. Watch out for Adult Children

Start a joke of the month contest with its own bulletin board

Add more color and make the environment more interesting

Add more life with plants and an aquarium

Special events such as a lunchtime comedian

Form an ongoing play committee to keep ideas flowing

Make Their Day

Survey results

Customers dread working with us

Quality of work is adequate but you never extend yourself

You treat customers like they are interrupting

You pass customers around

Your department is the subject of jokes

Customers believe the department should be replaced with an outside contractor

Make Their Day

Benefits

It is good for business

Serving our customers well will give satisfaction

It will focus our attention away from our problems

It is healthy, it feels good and will unleash more energy

Implementing Make Their Day

Stagger hours so there is coverage from 7 am until 6 pm. This will be good for customers and some of us

Pull together focus groups to study ways we can be of service to customers

Have a monthly and annual award for service based on customer recommendations

Appoint a special task force dedicated to surprising and delighting our customers

Ask key customers to “come out & play” once a month

                   

                                                      

                                        

Be Present

Benefits

Customers know if you are listening

Customers feel important

Important opportunities do not escape

Be Present

Encourage one another to be present. Ask: “Is this a good time? Are you present?”

Establish a code phrase: “You seem distracted” to signal a present moment issue

Choose Your Attitude

Benefits

By accepting that you choose your attitude, you demonstrate personal accountability and proactivity

Choosing your attitude and acting like a victim are mutually exclusive

While we may not be able to do what we love, if we choose to love what we do, our work area will become an oasis of energy, flexibility and creativity

Implementing Choose Your Attitude

Purchase copies of Personal Accountability: The Road to a Rewarding Work Life for Everyone. Organize discussion groups around the book - follow with similar topics

Prepare an attitude menu to post in the office

FISH

By: Stephen C. Lundin, Ph.D.

Harry Paul

John Christensen

www.fishphilosophy.com

Tired of Smile-Free Service?

Article - Newsweek – March 6, 2000

Employers having difficulty finding good people

Managers have no control over workers who give poor service – pointing out deficiencies leads to high turnover

Research

Turnover is higher in companies where employees have a poor view of customer service

Employees are good predictors of customers’

perceptions

Conclusion

Increasing the quality of service can increase both customer loyalty and employee retention significantly

People may “job hop” because they haven’t found acceptable work environments