Module 1: An overview of the Customer
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Questions and Answers

What is the simplest definition of a customer?

  • Someone who sells a good or service
  • Someone who purchases a good or service for someone else
  • Someone who purchases a good or service, for themselves or for somebody else (correct)
  • Someone who uses a good or service

    • Why is it important to know your customer?

  • So you can focus on marketing
  • So you can meet and anticipate their needs (correct)
  • So you can increase prices
  • So you can ignore their needs

    • What is the main difference between a customer and a consumer?

  • A customer buys, a consumer uses (correct)
  • A customer is an individual, a consumer is a business
  • A customer uses, a consumer buys
  • A customer is a business, a consumer is an individual

    • What term is used in the context of business-to-business transactions/interactions (B2B)?

    <p>Client</p> Signup and view all the answers

    What is an internal customer?

    <p>Not mentioned in the content</p> Signup and view all the answers

    Why is market research important?

    <p>To know the customer's needs and expectations</p> Signup and view all the answers

    What is the main goal of marketing?

    <p>To target both customers and consumers</p> Signup and view all the answers

    What is an external customer?

    <p>A customer who will pay for a service and if they are not happy, they will find another service provider</p> Signup and view all the answers

    What is the purpose of gap analysis in service delivery?

    <p>To highlight gaps between customer expectations and perceptions of a product and/or service</p> Signup and view all the answers

    How many types of service gaps are identified in the SERVQUAL model?

    <p>7 types of gaps</p> Signup and view all the answers

    What is Gap 1 in the SERVQUAL model?

    <p>The gap between customer expectations and management perception of the service</p> Signup and view all the answers

    What causes the Performance Delivery Gap?

    <p>Lack of training, poor internal processes, and no guidelines</p> Signup and view all the answers

    Why is it important to continually improve service delivery standards?

    <p>To keep customers happy and meet changing customer expectations</p> Signup and view all the answers

    Under the RATER dimensions, what does 'Reliability' refer to?

    <p>Providing the promised service consistently, accurately, and timeously</p> Signup and view all the answers

    Why do customers expect accuracy as a matter of course?

    <p>Because they have access to more information</p> Signup and view all the answers

    What do customers expect from a website?

    <p>A clear, easy-to-navigate, and up-to-date website</p> Signup and view all the answers

    What can happen if an organization does not meet customer expectations?

    <p>Customers will escalate their complaints through social media</p> Signup and view all the answers

    What is the main cause of Gap 5 in the SERVQUAL model?

    <p>Gaps 1 to 4</p> Signup and view all the answers

    What do customers increasingly expect from businesses?

    <p>To be open 24/7</p> Signup and view all the answers

    What do customers expect in terms of communication?

    <p>Seamless communication across all channels</p> Signup and view all the answers

    What is responsiveness in customer service?

    <p>Providing a rapid and helpful service</p> Signup and view all the answers

    What are satisfiers in the Kano Model?

    <p>Standard expectations</p> Signup and view all the answers

    What happens when the basics are not achieved in customer service?

    <p>Customers will be extremely dissatisfied</p> Signup and view all the answers

    What is a delighter in the Kano Model?

    <p>An unexpected and surprising offering</p> Signup and view all the answers

    What can dissatisfy customers when missing?

    <p>All of the above</p> Signup and view all the answers

    What do customers expect from service providers in terms of communication?

    <p>Clear, complete, and accurate communication</p> Signup and view all the answers

    What is the definition of functionality in customer service?

    <p>Services that facilitate and goods that are fit for purpose</p> Signup and view all the answers

    What is important to note about customer expectations?

    <p>Customer expectations are ever-changing</p> Signup and view all the answers

    What is an internal customer?

    <p>An individual who receives services from colleagues within an organization</p> Signup and view all the answers

    What is the likelihood of customers buying from an organization they follow on Twitter?

    <p>75%</p> Signup and view all the answers

    Why is it important to prioritize internal customers?

    <p>Because their dissatisfaction can affect external customers</p> Signup and view all the answers

    How many times more likely is a repeat customer to make a transaction than a new customer?

    <p>Nine times</p> Signup and view all the answers

    What is a customer relationship?

    <p>A long-term relationship between a customer and an organization</p> Signup and view all the answers

    How is a customer relationship measured?

    <p>By the satisfaction of the customer during the purchase cycle</p> Signup and view all the answers

    What is the average spend per transaction of the top 10% of customers compared to the average spend per transaction of the lower 90% of customers?

    <p>Three times more</p> Signup and view all the answers

    What is the key aspect of Competence in customer service?

    <p>Following procedures and implementing customer instructions correctly</p> Signup and view all the answers

    What is the chance that a customer will return to make another purchase after one purchase?

    <p>27%</p> Signup and view all the answers

    Why is customer loyalty important?

    <p>Because it leads to repeat business and increased profits</p> Signup and view all the answers

    What is the result of a 10% increase in customer retention?

    <p>A 30% increase in company value</p> Signup and view all the answers

    What is the main consequence of not delivering the service factors efficiently?

    <p>Customer dissatisfaction</p> Signup and view all the answers

    What is the term for someone who has bought from you more than once?

    <p>Repeat Customer</p> Signup and view all the answers

    What is the benefit of good customer service?

    <p>All of the above</p> Signup and view all the answers

    Why is building a customer relationship important?

    <p>Because it makes good business sense</p> Signup and view all the answers

    What is the primary goal of businesses in terms of customer service?

    <p>To delight customers</p> Signup and view all the answers

    What is the probability of selling to an existing customer?

    <p>60% to 70%</p> Signup and view all the answers

    What is the model used to assess the quality of service?

    <p>SERVQUAL</p> Signup and view all the answers

    What is the key aspect of Responsiveness in customer service?

    <p>Providing a speedy service delivery</p> Signup and view all the answers

    What is the primary consequence of not being responsive to customer needs?

    <p>Customer dissatisfaction</p> Signup and view all the answers

    What does the RATER model stand for?

    <p>Reliability, Assurance, Tangibles, Responsiveness, and Empathy</p> Signup and view all the answers

    What is the value of a loyal customer?

    <p>10 times the value of their first purchase</p> Signup and view all the answers

    Why is it important to keep existing customers?

    <p>Because it costs six times more to acquire a new customer than to keep a current customer</p> Signup and view all the answers

    What is a gap analysis?

    <p>A process to compare actual performance data to potential performance data</p> Signup and view all the answers

    What is the key aspect of Care in customer service?

    <p>Treating customers with care, concern, and sympathy</p> Signup and view all the answers

    What is the primary goal of Availability in customer service?

    <p>To provide a wide range of product choices</p> Signup and view all the answers

    What is the result of poor customer service?

    <p>Loss of sales</p> Signup and view all the answers

    What is the key aspect of Courtesy in customer service?

    <p>Being polite and respectful towards customers</p> Signup and view all the answers

    What is the primary goal of Friendliness in customer service?

    <p>To make customers feel genuinely welcome</p> Signup and view all the answers

    What is the key aspect of Commitment in customer service?

    <p>Demonstrating pride and satisfaction in helping customers</p> Signup and view all the answers

    Study Notes

    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.

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