Customer Relationship Building Module 1

Defining the Customer

• A customer is someone who purchases a good or service for themselves or others.
• They can make one or more purchases.
• Loyal customers are more likely to purchase from certain brands or stores, while others shop around.
• A successful business knows its customers to meet their needs and anticipate their expectations.
• Market research is essential to understand the customer base and their needs.

Customer vs Consumer vs Client

• A customer is the purchaser of a good or service.
• A consumer is the user of a good or service (not always the customer).
• Marketing often targets consumers, not customers.
• Businesses should target both customers and consumers for successful marketing.
• Clients are used in business-to-business (B2B) transactions and service organizations (e.g., legal, healthcare, consulting).

Internal Customer

• An external customer pays for a service and can switch providers if unhappy.
• An internal customer is within an organization, receives services from colleagues, and has no choice in changing providers.
• Examples of internal customers include individuals receiving services from colleagues and franchisees/business partners distributing goods/services to external customers.
• Dissatisfied internal customers can affect external customers, leading to negative outcomes.

The Customer Relationship

• A customer relationship is built over time through marketing, sales, technical help, customer service, and after-sales service.
• The goal is to create loyal customers who repeat business and bring in new customers.
• A successful organization prioritizes building loyal customers over one-time sales.
• Customer loyalty comes from individuals who feel a strong relationship with the organization.
• First impressions are crucial in building customer relationships.

Benefits of Good Customer Service

• Good customer service increases customer loyalty and repeat business.
• Loyal customers are more likely to refer others and spend more money.
• Poor customer service leads to lost sales, reduced customer loyalty, and negative word-of-mouth.

The Six Loyalty Stages

1. Suspect: someone who might buy your product or service.
2. Prospect: someone who needs your product/service and can afford it.
3. First-Time Customer: someone who has made one purchase.
4. Repeat Customer: someone who has made multiple purchases.
5. Client: someone who buys from you regularly.
6. Advocate: someone who buys from you regularly and recommends you to others.

Satisfying Customer Expectations

• Good customer service meets and exceeds customer expectations.
• Poor customer service negatively impacts profit margins.
• The RATER model (Reliability, Assurance, Tangibles, Empathy, Responsiveness) assesses service quality from the customer's perspective.
• Gap analysis identifies the difference between customer expectations and perceptions of a product/service.

Changing Customer Expectations

• Customer expectations are increasing in all RATER dimensions.
• Customers expect consistency, accuracy, and rapid responses.
• They also expect seamless communication across all channels.
• Businesses must continually improve service delivery standards to meet changing customer expectations.### Delighting Customers
• Delighting customers results from delivering service factors brilliantly, leading to customer satisfaction.

Factors that Delight Customers

• Friendliness: warm, approachable, positive attitude, and making the customer feel welcome.
• Commitment: demonstrating pride and satisfaction in helping the customer, going above and beyond the expected standard of delivery.
• Attentiveness/Helpfulness: demonstrating a commitment to work, being diligent and thorough, and helping the customer beyond expected standards.

Importance of Investing in Delight Factors

• Organizations must invest in these factors to delight customers.