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E STABLISH C USTOMER L OYALTY Creating a Culture of Customer Care LO 1.

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Presentation on theme: "E STABLISH C USTOMER L OYALTY Creating a Culture of Customer Care LO 1."— Presentation transcript:

1 E STABLISH C USTOMER L OYALTY Creating a Culture of Customer Care LO 1

2 CUSTOMER LOYALTY Refers to: A customer whom an organisation has managed to retain over a period of time A customer who continually returns to purchase the organisation’s goods or services (customer retention) Loyal customers will: Bring new customers by recommending your product or service Continue to purchase the product or service

3 CUSTOMER SATISFACTION To satisfy customers organisations must understand customer: Requirements and needs Expectations Attitudes Perception of the product or service

4 E STABLISHING CUSTOMER LOYALTY THROUGH CUSTOMER SATISFACTION The Institute of Customer Services indicates that customers now Demand more access/time Are less willing to wait Demand faster responses Want more information Have less patience with broken service promises Complain more, and are increasingly assertive This applies to both internal and external customers – none are easy factors to satisfy

5 A CTIVITY As a customer choose a particular organisation you use – make a list of your needs and expectations Choose an organisation that you feel gives satisfaction, and list in detail, the points that made you feel satisfied with their service

6 A NSWERS TO ACTIVITY The answers here will effectively be down to you. You may find your perception of the organisations you chose to be changing! The interesting thing to emerge from this activity is whether, or not, fellow students were satisfied with the same organisations.

7 C USTOMER LOYALTY SCHEMES One way to encourage loyalty is to offer discounts on future purchases. This could be money off the same item or related items These discounts encourage the customer to save money, with the ideal outcome being a satisfied customer who becomes loyal to your business. ‘introduce a friend’ discounts, (when the customer and friend both get discounts) encourages customers to return and be loyal, but also introduces new customers

8 A CTIVITY Give some examples of Customer Loyalty Schemes you are aware of Briefly explain if you think they work for yourself or others

9 A NSWERS TO A CTIVITY Here are some examples Tesco Club Card Marks & Spencer Co-operative Hotel chains, eg Marriot Hotels Morrisons – reduced price of petrol depending on amount purchased in store B&Q Homebase

10 C USTOMER SATISFACTION AND LOYALTY Based on customer perception – entirely the customer’s decision whether or not he or she is satisfied with a product or service If completely satisfied the customer will return Customer experience of purchasing a product or service from the organisation must always be positive A satisfied or delighted customer be will a loyal customer – the perception of this is entirely in the hands of the customer

11 ACTIVITY Think of the organisation you return to again and again Why do you do so? Do you ever ask to see the same member of staff you dealt with previously. If so why?

12 A NSWERS TO ACTIVITY You got good service? What was it? Do you find the staff helpful and encouraging? Are you recognised and welcomed? Do you receive updated information on products/services? Because of your loyalty do you get good deals? Is the aftercare especially good? Do staff know your likes and dislikes? Does the management know you?

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