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Module 1: An overview of the Customer

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@OrganizedEmpowerment1022
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What is the simplest definition of a customer?

Someone who purchases a good or service, for themselves or for somebody else

Why is it important to know your customer?

So you can meet and anticipate their needs

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

A customer buys, a consumer uses

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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