2. Customer Relations LAP 1 Nature of Customer Relations

3. Discuss the importance of positive customer relations. Describe ways that organizations can build positive customer relations. Objectives: Nature of Customer Relations

4. Discuss the importance of positive customer relations.

5. “Every great business is built on friendship.” View their customers as people, not just numbers or dollar signs Build relationships with customers Serve customers with courtesy and respect This statement still applies today! – J.C. Penney Businesses should:

6. Customer relations: Refers to all the activities a business engages in to interact with its customers Is often used interchangeably with the term customer service They are more than just satisfied. Their expectations are exceeded. Having positive customer relations = making customers happy

7. You listen to their feedback. You take their needs seriously. Having positive customer relations = making customers feel important You establish relationships with them. You strive to keep problems from happening. You create positive customer experiences. Having positive customer relations = being proactive

8. Importance of Building Positive Customer Relations They know how they want to be treated. They will take their business elsewhere if you fail to meet their expectations. Customers are tough to please.

9. Importance of Building Positive Customer Relations Customers are knowledgeable. They spend their money wisely. “Shopping around” for better service is easy to do. Customer relations often makes the difference in the choice between two businesses offering the same product at the same price. Competition is fierce. Building positive customer relations is one of the least expensive ways to compete. A smile, a “thank you,” and a helpful attitude are free. Even the smallest business can afford to provide them.

10. Importance of Building Positive Customer Relations Positive customer relations encourages repeat business and customer loyalty. Over time, long-term customers can spend a lot of money with the business. Retaining current customers costs less than reaching brand-new customers. Loyalty is valuable.

11. Importance of Building Positive Customer Relations Word-of-mouth promotion—when customers tell their family and friends about your business Potential customers take it very seriously since it comes from trusted sources. Warning: The information can be negative as well. Word-of-mouth promotion is priceless.

12. Importance of Building Positive Customer Relations Productivity matters—spending extra time and effort on positive customer relations can actually increase productivity. Create satisfied customers Contribute to overall business success Employees are key.  Valuing customer relations creates a positive working environment for employees.  Satisfied employees help to:

13. Describe ways that organizations can build positive customer relations.

14. Business processes Approach all decisions and activities with customers in mind. Make customer relations a priority in the overall organizational plan. Identify and focus on target markets. Continuously evaluate customer needs and wants. Even if you have no control over organizational planning, Approach your daily job tasks with customers in mind. Be attentive to feedback.

15. Business environment Tangible (physical)—facilities, waiting rooms, etc. Intangible—the way customers and employees feel when they interact with the business Known as corporate culture for employees Should promote teamwork, respect, and professionalism

16. Technology Allows customers greater access to the business Answers to FAQs Product photos and information Order forms Shipping trackers  Web sites Example:

17. Technology Allows customers greater access to the business  Call centers Technical support Feedback  More personalized attention  Better targeted marketing campaigns Allows businesses to track and organize customer information more efficiently and effectively

18. People Most important factor in customer relations Employees can “make it or break it.” Customer relations skills are important in: Recruiting Hiring Training Promoting

19.  The customer comes first.  Put this “rule” into practice during every customer interaction.  It applies even when a customer is being difficult or demanding. Be “ customer-centric. ” Techniques for Building Positive Customer Relations

20.  Building positive customer relations depends on employees: Pay attention to internal customers. Techniques for Building Positive Customer Relations They are the “face” of the company to the public. Their actions greatly impact how customers feel about the business.  Attitude is contagious—unhappy employees have difficulty creating and maintaining positive customer relations.

21.  The best form of communication is listening respectfully.  Customers have valuable information to give—they will: Communicate. Techniques for Building Positive Customer Relations Tell you about their wants and needs Let you know what you’re doing well and what you can improve Explain how you’re stacking up to the competition  Encourage customers to give feedback: Make it easy for them to do. Offer incentives.

22.  View them as opportunities rather than annoyances.  Successfully resolving a complaint can lead to an even better customer relationship.  Fix the problem with courtesy.  Apologize! Resolve complaints in a quick, satisfactory manner. Techniques for Building Positive Customer Relations

23.  Businesses’ success depends on customer loyalty.  Customers appreciate it when businesses show gratitude.  Saying “thanks”: Be thankful. Techniques for Building Positive Customer Relations Is often simple and free Can sometimes be shown through special benefits or perks

24.  Always treat customers with respect.  Smile.  Offer handshakes.  Use customers’ names. Display courtesy, friendliness, and professionalism at all times. Techniques for Building Positive Customer Relations

25.  Broken promises = poor customer relations  Better to under-promise and over-deliver than to break a promise Keep your promises. Techniques for Building Positive Customer Relations

26.  Know how to handle customers’ basic questions and problems.  If you can’t help, know who can. Be helpful. Techniques for Building Positive Customer Relations

27.  They can happen: Remember your touch points. Techniques for Building Positive Customer Relations Over the phone Online Through the mail Through marketing communications  Create a positive experience for every customer, every time.

28.  How does your school or educational institution build positive “customer” relations with its students?  What steps does it take to: Make students feel important? Demonstrate that it takes their needs seriously?  Does it encourage feedback and communication?  Are you a happy “customer”?

29.  How should you treat a customer who is difficult or dishonest?  Example: You’re working at the customer-service counter of a retail store. A customer attempts to return an item that has clearly been damaged after the sale. Company policy says that you cannot accept returns of damaged merchandise. Unfortunately, you have no way to prove the customer is at fault. The customer says he received the item in damaged condition.

30.  What should you do? Accept the return without question? Or, refuse?  How do you decide between losing revenue and creating negative customer relations?

31. Acknowledgments Original Developers: Sarah Bartlett Borich and Lelia Ventling, MBA Research Version 1.0 Copyright © 2010 MBA Research and Curriculum Center Acknowledgments Original Developers: Sarah Bartlett Borich and Lelia Ventling, MBA Research Version 1.0 Copyright © 2010 MBA Research and Curriculum Center

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