Podcast
Questions and Answers
What is the simplest definition of a customer?
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?
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?
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)?
What term is used in the context of business-to-business transactions/interactions (B2B)?
What is an internal customer?
What is an internal customer?
Why is market research important?
Why is market research important?
What is the main goal of marketing?
What is the main goal of marketing?
What is an external customer?
What is an external customer?
What is the purpose of gap analysis in service delivery?
What is the purpose of gap analysis in service delivery?
How many types of service gaps are identified in the SERVQUAL model?
How many types of service gaps are identified in the SERVQUAL model?
What is Gap 1 in the SERVQUAL model?
What is Gap 1 in the SERVQUAL model?
What causes the Performance Delivery Gap?
What causes the Performance Delivery Gap?
Why is it important to continually improve service delivery standards?
Why is it important to continually improve service delivery standards?
Under the RATER dimensions, what does 'Reliability' refer to?
Under the RATER dimensions, what does 'Reliability' refer to?
Why do customers expect accuracy as a matter of course?
Why do customers expect accuracy as a matter of course?
What do customers expect from a website?
What do customers expect from a website?
What can happen if an organization does not meet customer expectations?
What can happen if an organization does not meet customer expectations?
What is the main cause of Gap 5 in the SERVQUAL model?
What is the main cause of Gap 5 in the SERVQUAL model?
What do customers increasingly expect from businesses?
What do customers increasingly expect from businesses?
What do customers expect in terms of communication?
What do customers expect in terms of communication?
What is responsiveness in customer service?
What is responsiveness in customer service?
What are satisfiers in the Kano Model?
What are satisfiers in the Kano Model?
What happens when the basics are not achieved in customer service?
What happens when the basics are not achieved in customer service?
What is a delighter in the Kano Model?
What is a delighter in the Kano Model?
What can dissatisfy customers when missing?
What can dissatisfy customers when missing?
What do customers expect from service providers in terms of communication?
What do customers expect from service providers in terms of communication?
What is the definition of functionality in customer service?
What is the definition of functionality in customer service?
What is important to note about customer expectations?
What is important to note about customer expectations?
What is an internal customer?
What is an internal customer?
What is the likelihood of customers buying from an organization they follow on Twitter?
What is the likelihood of customers buying from an organization they follow on Twitter?
Why is it important to prioritize internal customers?
Why is it important to prioritize internal customers?
How many times more likely is a repeat customer to make a transaction than a new customer?
How many times more likely is a repeat customer to make a transaction than a new customer?
What is a customer relationship?
What is a customer relationship?
How is a customer relationship measured?
How is a customer relationship measured?
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?
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?
What is the key aspect of Competence in customer service?
What is the key aspect of Competence in customer service?
What is the chance that a customer will return to make another purchase after one purchase?
What is the chance that a customer will return to make another purchase after one purchase?
Why is customer loyalty important?
Why is customer loyalty important?
What is the result of a 10% increase in customer retention?
What is the result of a 10% increase in customer retention?
What is the main consequence of not delivering the service factors efficiently?
What is the main consequence of not delivering the service factors efficiently?
What is the term for someone who has bought from you more than once?
What is the term for someone who has bought from you more than once?
What is the benefit of good customer service?
What is the benefit of good customer service?
Why is building a customer relationship important?
Why is building a customer relationship important?
What is the primary goal of businesses in terms of customer service?
What is the primary goal of businesses in terms of customer service?
What is the probability of selling to an existing customer?
What is the probability of selling to an existing customer?
What is the model used to assess the quality of service?
What is the model used to assess the quality of service?
What is the key aspect of Responsiveness in customer service?
What is the key aspect of Responsiveness in customer service?
What is the primary consequence of not being responsive to customer needs?
What is the primary consequence of not being responsive to customer needs?
What does the RATER model stand for?
What does the RATER model stand for?
What is the value of a loyal customer?
What is the value of a loyal customer?
Why is it important to keep existing customers?
Why is it important to keep existing customers?
What is a gap analysis?
What is a gap analysis?
What is the key aspect of Care in customer service?
What is the key aspect of Care in customer service?
What is the primary goal of Availability in customer service?
What is the primary goal of Availability in customer service?
What is the result of poor customer service?
What is the result of poor customer service?
What is the key aspect of Courtesy in customer service?
What is the key aspect of Courtesy in customer service?
What is the primary goal of Friendliness in customer service?
What is the primary goal of Friendliness in customer service?
What is the key aspect of Commitment in customer service?
What is the key aspect of Commitment in customer service?
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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
- Suspect: someone who might buy your product or service.
- Prospect: someone who needs your product/service and can afford it.
- First-Time Customer: someone who has made one purchase.
- Repeat Customer: someone who has made multiple purchases.
- Client: someone who buys from you regularly.
- 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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