Customer Satisfaction, Retention, and Loyalty

Question 1

Identifying External Customer Needs in 6 steps:

Answer 1

1. speculate about results
2. develop an information-gathering plan
3. gather information
4. analyze the results
5. check the validity of conclusions
6. take action

Question 2

The value of a product/service is the sum of a customer’s perception of the following factors:

Answer 2

1-product or service quality
2-service provided by the organization
3-the organization’s personnel
4-the organization’s images
5-selling price of the product/service
6-overall of the product/service

Question 3

Customer Value Analysis through 2 questions:

Answer 3

1. What is it that customers want from our organization?
2. What is it about our products/services that customers value?

Question 4

what happen if an organization doesn’t know their customers value?

Answer 4

1-high risk of waste valuable resources, and in turn
2- improve the wrong things

Question 5

Characteristics of companies that have a customer focus:

Answer 5

1. Vision, commitment and climate
2. Alignment with customers
3. Willingness to find and eliminate customers’ problems
4. Use of customer information
5. Reaching out the customers
6. Competence, capability and empowerment of people
7. Continual improvement of product and process

Question 6

A customer driven organization can be recognized by the following characteristics:

Answer 6

1. Promptly follows through on all promises
2. Can be trusted
3. Has credibility (honesty)
4. Attend to even smallest details
5. responsiveness

Question 7

How to generate customer loyalty?

Answer 7

By providing superior value

Question 8

Superior value =

Answer 8

1. superior quality
2. superior cost
3. superior service

Question 9

The customer loyalty model consists of four components:

Answer 9

1) business performance
2) global perceptions
3) loyalty behaviors
4) financial outcomes

Question 10

There is five steps for implementing the innovation partnership approach to product development:

Answer 10

1. develop a tool kit for customers that is easy to use
2. increase the flexibility of your own production processes
3. carefully select the first customers to use your tool kit
4. continually improve your tool kit
5. adapt your business practices to suit the innovation partnership approach.