5 Understanding Customer Needs
- 1. “ The real issue is value, not price.” - Robert T. Lindgren
- 2. Understanding Customer Needs Customer Care
- 3. Objectives Describe customer service Discuss the implications of achieving good customer service Discuss the insights obtained from a the triangle of services marketing
- 4. Learning Criteria Describe the differing and specific needs of a range of business and services customers Provide customer care and service in a business and services environment Explain the benefits of improved customer service to a given business and services operation.
- 5. Needs, Wants, and Demands A human need is a state of felt deprivation Wants are how people communicate their needs When backed by buying power, wants become demands
- 6. Understanding Customer Needs Customers of a Service Organization. Internal Customers. External Customers. Measurement of Service Quality. Employee Research.
- 7. Customer satisfaction Source; Johnson and Clark 2009
- 8. The satisfaction continuum Source; Johnson and Clark 2009
- 10. Values: A combination of our beliefs, perceptions, and ideas about the appropriate response to a situation.
- 11. Customer Delivered Value Customer-delivered value is the difference between total customer value and total customer cost of a marketing offer Customer satisfaction depends on the product’s performance relative to a buyer’s expectations Companies must be customer centered and deliver superior value to target customers
- 12. Customer Satisfaction Buying decisions are based on judgments formed about the value of marketing offers Customer expectations are based on past buying experiences Today’s most successful companies are raising expectations and delivering performance to match
- 13. Product Quality Quality is THE vital area in hospitality Product features enhance customer satisfaction Freedom from deficiencies increases customer satisfaction Produces Competitive Advantage
- 14. Expectations: Our personal vision of the result that will come from our experience.
- 15. Levels of Expectations Primary expectations: the customer’s most basic requirements of an interaction. Secondary expectations: Expectations based on our previous experiences that are enhancements to our primary expectations.
- 16. Expectations – key influences Source; Johnson and Clark 2009
- 17. Techniques for Exceeding Customers’ Expectations Become familiar with your customers. Ask your customers what their expectations are. Tell your customers what they can expect. Live up to their expectations. Maintain consistency.
- 18. Range of expectations and the zone of tolerance or acceptable outcomes Source; Johnson and Clark 2009
- 19. Credibility: Made up of the combination of our current knowledge, reputation, and professionalism.
- 20. Tips for cultivating credibility Practice consistency Keep your word Develop your expertise Become a teammate with your coworkers Show your dedication to customers Treat all of your customers and coworkers with the same high level of respect Apologize if you are wrong Remember that credibility is much harder to regain than it is to keep
- 21. Does the strive for quality always add to the cost of production? Discuss…
- 22. Five Premises of Consumer Behaviour Consumer behaviour is purposeful and goal oriented The consumer has free choice Consumer behaviour is a process Consumer behaviour can be influenced There is a need for consumer education
- 25. Expectations – key influences
- 27. Moments of Truth Each customer contact is called a moment of truth. You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.
- 28. Reputation Management: The process of identifying how a company is perceived and establishing a action plan to correct, maintain, or enhance the company’s reputation.
- 29. A company with a good reputation Is very responsive to customers Is a company you can trust Delivers on its promises to customers Provides excellent value to customers Has excellent communications Is ethical and honest Conducts business in a human/caring way Has excellent top management Is able to adapt to changes in the industry
- 30. A company with a good reputation (continued) Is a good citizen Is a progressive company Is cooperative Has a record of strong financial performance Treats employees with respect Is a technological leader in the industry Is committed to the environment Complies with state/federal regulations Is successful in diversifying operations
- 31. Managing perceptions Johnston, Robert (1995)
- 32. Figure 4.14 Adequate performance satisfies the customer Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46–61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
- 33. Figure 4.15 Using enhancers to delight the customer Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
- 34. Figure 4.16 A dissatisfying outcome Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
- 35. Figure 4.17 Enhancers compensate for failure Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
- 36. Figure 4.18 Dissatisfaction shifts the zone of tolerance Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
- 37. Figure 4.19 Delight shifts the zone of tolerance Adapted from Johnston, Robert (1995) ‘The zone of tolerance: exploring the relationship between service transactions and satisfaction with the overall service’, International Journal of Service Industry Management , 6 (2)46-61. Reprinted by permission of Emerald Group Publishing Limited, www.emerald insight.com/ijsim.htm.
- 38. Seminar Favourite Brands and why…
- 39. Next week Kanos model – look up