1. Model of Service Loyalty AntecedentsModeratorsOutcomes Overall Evaluation Satisfaction Perceived Service Quality Perceived Value Impersonal Bonds Switching Costs (effort, search/setup costs) Continuity Bonds (customer learning, continuity, optimum service, loyalty programs) Interpersonal Bonds Familiarity Care Friendship Rapport Trust Services Characteristics Interaction Intensity Level of Standardization Level of Personalization Perceived Alternatives Customer Characteristics Level of Involvement Loyalty Coefficient Age Socioeconomic Factors Affective Loyalty Cognitive Loyalty Behavioral Loyalty Future Loyalty Intention Service Loyalty Components Individual (Customer) Social Benefits Psychological Benefits Economic Benefits Customization Benefits Competitive Factors Competitors’ Marketing Mix Competitive Offerings Relative Price Service Guarantees Firm (Service Provider) Economic Benefits Customer Behavior Benefits Human Resource Benefits

2. Points to Ponder in Designing the Customer Experience What must be distinctive about our people? What must be unique about our products and services? How must our customers behave to achieve our growth goals? Who are our most profitable customers? How can our processes deliver our products and services in a valuable way? What experience must we provide to meet the needs and expectations of these customers to achieve that? People Customer Behavior Process Customer Experience Product/Service OfferingCustomer Growth Goals Source: Smith and Wheeler (2002) How can our design be functional, yet elicit the desired internal customer response? Physical Evidence/ Service Environment

3. Customer Value Equation  Core product quality: Those aspects of your service offering that meet basic customer expectations. These represent expectations that customers would have for any provider in your business’ market category.  Supplemental product quality: This reflects the characteristics of your service offering that sets you apart from your competitors and delivers something of unique value to the consumer.  Experiential product quality: Experiential product quality reflects the aspects of your service design that creates a positive emotional response in the consumer. Positive emotions (such as warmth, happiness, calm, joy, love, interest, enthusiasm, empathy, curiosity, etc.) are largely a function of customer interactions with the physical environment (lighting, music, cues in the environment, etc.), uniquely designed processes and other human beings.  Monetary costs: $  Non- monetary costs: Costs that customers incur that are not typically reflected in monetary costs, but rather in the psychological toll that they have on the customer, such as waiting time, stress, etc.

4.  Branch is clean, bright, safe, welcoming  Employees’ appearance is professional  Welcomes customer to branch, asks “May I help you?”  Well communicated time for waiting  Rep greets customers with “How can I help?”  Transaction completed accurately, quickly  Path between teller counter and exit is unobstructed  Bank has comfortable coffee bar available  No admin tasks are visible to customers  Greeter offers customer a beverage  Backup greeter always available  No idle staff while customers are waiting  Rep offers suggestions when appropriate  Customer never has to ask for same info twice  Customer is asked, “Is there anything else I can do for you today?”  Customers are provided information about ancillary benefits (movie tickets, etc.) when appropriate  Engaged and welcomed by the environment  Personalized and caring attention upon entry. Greeted by first name, if known.  Plasma screen with MSNBC broadcast  Employees monitor waiting line and offer service, by name  Rep anticipates customer needs based on identification of customer  Rep asks “Is there anything more I can do for you today?”  Rep thanks customer using customer name in a sincere manner  Customer is thanked by unoccupied reps. as customer exits branch  N/A  Strong customer orientation  Stand, smile, make eye contact, and deliver personal greeting  Responsive and empathetic and able to monitor customer body language.  Strong customer orientation  Stand, smile, make eye contact, and deliver personal greeting  Responsive and empathetic and able to monitor customer body language.  Engage coffee service  Purchase lounge furniture  Develop employee profile for HR  Develop standards of service  Provide training and feedback  Develop employee profile for HR  Develop standards of service  Provide training and feedback  Develop employee profile for HR  Develop standards of service  Provide training and feedback  Develop employee profile for HR  Develop standards of service  Provide training and feedback First impression Wait in line Met by greeter Complete my transactions Exit the branch Enablers Employee Experiential Supplemental Core Behaviors

5. Enablers Employee Experiential Supplemental Core Behaviors