customer service boot camp
TRANSCRIPT
S E R V I C E M A R K E T I N G & E X C E E D I N G C U S T O M E R E X P E C TAT I O N S
CUSTOMER SERVICE BOOT CAMP FEB 2016
PRESENTED BY:KATHERINE WOODE
TWITTER: @FAIRWOODEEMAIL:
WHAT IS SERVICE MARKETING?
The promotion of intangible activities offered by a
business to its clients. Service marketing might include
the process of selling telecommunications, health
treatment, financial, hospitality, car rental, air travel,
and professional services.
HOW DO WE DEFINE THIS?
Intangibility: Services are intangible and do not have a physical existence. Hence services cannot be touched, held, tasted or smelt. Also, it poses a unique challenge to those engaged in marketing a service as they need to attach tangible attributes to an otherwise intangible offering.
Lack of Ownership: You can not own a service and you can not store a service like you can store a product. Services are used or hired for a period of time. For example when you buy an aeroplane ticket to fly to the USA, you are buying a service which will start at the beginning of the flight and finish at the end of the flight. You can not take the aeroplane flight home with you
Heterogeneity/Variability: Given the very nature of services, each service offering is unique and cannot be exactly repeated even by the same service provider.
Perishability: Services cannot be stored, saved, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer.
Inseparability/Simultaneity of production and consumption: This refers to the fact that services are generated and consumed within the same time frame. Eg: a haircut is delivered to and consumed by a customer simultaneously unlike, say, a takeaway burger which the customer may consume even after a few hours of purchase. Moreover, it is very difficult to separate a service from the service provider. Eg: the barber is necessarily a part of the service of a haircut that he is delivering to his customer.
WHICH ONE IS SERVICE MARKETING?
Product Marketing of
GoodsPhysical Commodity
Tangible
Homogenous
Production can be separate from consumption
Can be stored/Owned
Transfer of ownership is possible
Service Marketing
A continuous process
Intangible
Heterogeneous
Production, distribution
Cannot be stored/Owned
Transfer of ownership is not possible
THE 6P’s ofService
Marketing
Product
Price
Promotion
Processes
Physical Evidence
People
METHODS OF MARKETING YOUR SERVICE
RESOURCINGBRANDING &
PERSONAL Branding
TARGET MARKET or AUDIENCE
PRICING & PITCHING
SWOT ANALYSIS (Corporate & Personal)
COST EFFECTIVE MARKETING
How to Establish Service Marketing
Awareness Stage• Discovery of
your service product
Attraction Stage• Interaction with
your service
Retention Stage• Sampling of
your product
Cultivation Stage• Advocacy for
your service
LoyaltyHow to make your customer your personal sales agent
ESTABLISHING THE JOURNEY
GENERAL RETURN BUSINESS JUST FILL YOUR BUCKETS…
Attraction• Awareness• Product & Price• Promotions & Place
Retention• Customer Relations• Ensure your process
charter• Consistency &
Communication
Defense & Growth• Loyalty• Dealing with Lapses• Moments of Truth• Moments of Magic• Moments of Misery
Bucket Approach
Attraction Retention Defense & Growth
WHAT IS SERVICE BREAKDOWN?
It is the unfortunate LAPSE or GAP in the intended service of the provider and the perceived or demonstrated delivery to the customer.
It is the distance between zero tolerance delivery and human error output
It is the difference between what the customer wants and what the provider gives.
THE INGREDIENTS OF CUSTOMER DELIGHT
ingredient #1: It Produces A ‘Wow’ Reaction!
Ingredient #2: It Appears Spontaneous Or Unexpected!
Ingredient #3: It’s The Personal Touch!
Ingredient #4: It Makes Customers Feel Valued!
Ingredient #5: It’s Genuine!
Ingredient #6: It Creates A Talking Point!
Surprising customers with the level of service you provide’
Exceeding customer expectations
THE 4 D’S OF SERVICE
A ‘poor’ experience
A ‘great’ experience
Low Expectations
High Expectations
‘disappointed’
‘disaffected’
‘devoted’
‘delighted’
EXCEEDING CUSTOMER EXPECTATION & RETAINING CUSTOMERS
LETS SIMPLIFY THIS….TRIPLE ‘A’
LETS DEEPEN THIS….Service breakdowns are uncomfortable, and they require training to resolve. But you’ll find an opportunity hidden inside your company’s worst moments: the opportunity to help you to create loyal customers
Step 1: Apologize and Ask for Forgiveness. What’s needed here is a sincere, personal, non-
mechanical apology.
Step 2: Go Over the Complaint with Your Customer. In Step 1, you’ve begun an alliance with
your customer; in Step 2, those collaborative feelings will let you explore what she needs for a
good outcome.
Step 3: Fix the Problem and Then Follow Up. Remember that the customer has been stressed,
inconvenienced, and slowed down by your company.
Various approaches to the follow-up are appropriate in different service settings, but they all
should include immediate, internal, and wrap-up components.
Step 4: Document the Problem in Detail. It’s natural to want to give yourself a breather after
solving a customer’s problem. Still, make sure your staff is trained to record, every single time,
the details of what went wrong—promptly, before the memory can fade or distort.
WHY KEEP CUSTOMERS? Key finding #1 – Many organisations have no idea how many
customers they are losing each year Key finding #2 – Lapsed customers make for better prospects:
firms have a much better chance of winning business from lost customers than from new prospects
Key finding #3 – The majority (96%) of Customers won’t tell you why they stopped buying … unless you ask: An upset customer tells an average of eleven people about an unhappy experience and that those eleven people tell five others. it is about protecting your brand reputation too.
Key finding #4 – New customers are rarely as profitable as long-term customers:
Key finding #5 – Customer win back initiatives ARE worth the effort: Furthermore, those customers will go on to refer, on average, five new customers.
Key finding #6 – Lowering customer defection rates has a massive impact on your profit: A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry. Or put another way, a 2% increase in customer retention has the same effect as decreasing costs by 10%.
THE RELATIONSHIP TRIANGLE
Satisfied Customer
A great product,
price, promotion
& place
YOU!!
Supportive Company
Management & Policies