Chapter 11

Question 1

Example: ACE Hardware

Answer 1

• increase customer satisfaction without adding more costs
• customer ‘quarter back’ role was implemented to help customers, greet them, help them with their mission etc.
• would radio experts and direct customers to specific employees that could help them

Question 2

Example: Dell (Customer Attract, Satisfy, Keep)

Answer 2

• enables customers to rate products
• organizes suggestions and lets them vote on them
• reaches out to bloggers to fix their problems

Question 3

Measuring Customer Satisfaction

Answer 3

1. Overall Satisfaction Score
2. Satisfaction with the goods/service
3. Intention to repurchase from firm
4. Willingness to recommend the firm to others
5. customer demographic information

Question 4

Customer Satisfaction to get ahead of customers

Answer 4

• those that give a score of 5(very satisfied) are 6X more likely to repurchase
• very loyal vs. easily switch vs. disloyal

Question 5

What are the benefits of loyal customers?

Answer 5

• more profitable
• cost less to serve
• price-insensitive
• greater positive word-of-mouth
• more willing to forgive negative experiences
• less likely to listen to competitors
• more willing to try new offerings

Question 6

How to develop customer loyalty?

Answer 6

1. Listen to Customers
2. Understand and communicate
3. Focus on opportunities
4. Take action and sustain improvement

Question 7

Step 2: Understand and Communicate

Answer 7

• classify customers on Loyalty index
• secure, favourable, indifferent, at risk
• have vision of opportunities

Question 8

Step 3: Focus on opportunities

Answer 8

• each classification will have different needs/actions

- for at risk companies, something negative happened, if that can be remedied there will be immediate results!!

Question 9

Occasion Based Marketing Strategy

Answer 9

1. Consumer Group
2. Marketing Goals
3. Usage Occasion
4. Internet Site
5. Marketing Tactic

Question 10

Arbol Steps to Satisfy and Keep Customers

Answer 10

• adopted service profit chain model
• it is employees that deliver customer value propositions
• if employees are given value and satisfied, they will create positive experiences for customers which makes them satisfied and ultimately loyal leading to revenue growth and profitability
• Arbol gave employees greater say in the business, more training, clear functional plans

Question 11

Best indicator of business performance on customer satisfaction survey is??

Answer 11

The average satisfaction score