Chapter 7 : Building Customer Relationships Flashcards
What kind of customer expectations relationships exists ?
Customer Expectations of relationships :
1) Transactional expectations (Ex: Fast-food restaurants)
2) Active relational expectations (Ex: Barbershop, Primary care center)
3) Passive relationship expectations (Ex: Building company)
What are the 4 relationship stages ?
The 4 relationship stages :
1) Customers as Strangers (Ex: A customer who doesn’t want any relationship)
2) Customers as Acquaintances
3) Customers as Friends (Ex: Hairdressers)
4) Customers as Partners - You are cooperating to solve customer problems
What are the 4 benefits of relationship marketing for customers ?
Benefits of relationship marketing for customers :
1) Receipt of greater value
2) Confidence and trust benefits
3) Social benefits (People like being known)
4) Special treatment benefits
What are the 3 benefits of relationship marketing for firms ?
3 Benefits of relationship marketing for firms :
(more money if you know more the customer and have loyal customer)
2) Customer behaviour benefits
3) Human resource management benefits (If you know each other, you get information that will ease your situation)
What is the profit impact of 5% increase in retention rate ?
96% advertising agency bank branch deposits 85% publishing 85% Car/home insurance 84% -> It is very costly to have new customers
What is the customer pyramid ?
Ex; Barbershop different type of customers:
- Platinum = Most profitable customers - The customer who buy extra shampoo and gadgets
- Gold
- Iron
- Lead customer never buy other shampoo
What are the 3 types of customers which are not right ?
Not all customers are good relationship customers:
1) Wrong segment
2) Not profitable in the long term
3) Difficult customers
What are the reasons customer don’t want a relationship ?
Some customers may see relationships as:
- Irritating
- Intrusive
- Time-consuming
- Unattractive
What are the relationship from service dominant logic perspective ?
3 relationships from SD logic perspective :
1) The customer provides a supply of money and promoting the brand
2) The value created may develop over time
3) Dynamic networks of relationship : the customer is a mean for other networks.
What are the factors necessary for appropriate service standards ?
Standardisation of Service Behaviours and Actions.
Formal Service Targets and Goals.
Customer-not Company-Defined Standards.
What are the customer-defined standard for complaint handling by segment ?
Ex : DHL Customer priorities = On-time delivery Customer-defined standard - Number of packages right day late Number of packages wrong day late Number of missed pickups
Dell Computer
Customer priorities = On-time delivery and computer works properly
Customer-defined standard = Ship to target
Initial field incident rate and Missing, wrong and damaged rate.
Process for setting customer defined standard
9 steps in the process for setting customer defined standard :
1) Identify existing or desired service encounter sequence
2) Translate customer expectations into behaviours
3) Select behaviour for standards
4) Set hard or soft standards
5) Measure by audits or operating data < Hard Soft > Measure by transaction-based surveys
6) Establish measures and target levels
7) Track measures against standards
8) Provide feedback about performance to employees
9) Update target levels and measures.
What are the criteria for creating service standards ?
1) Be based on behaviours and actions valued by customers
2) Be accepted by employees
3) Be challenging but realistic
Importance/performance Matrix from 7 to 10
if you are under 8 you have to improve the service
