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CUSTOMER

RELATIONSHIP

MANAGEMENT

By Engr.Md.Khairul Bashar

ORGANIZATIONAL HIERARCHIAL

DIAGRAM

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Who is a customer ?

• A customer is someone who makes use of

the paid products of an individual or

organization. This is typically through

purchasing or renting goods or services.

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Customer Satisfaction..

• When customer’s expectations are met

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• When Customer’s expectations are exceeded

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Customer dissatisfaction..

• When customer’s expectations are not met

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Why do customers quit ?

• 1% Die

• 3% Move away

• 5% Form other friendship

• 9% For competitive reasons

• 14% Due to product dissatisfaction

• 68% due to indifferent attitude by the staff

towards customers.

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What does an unhappy customer do?

• Suffers in silence

• Switches to the competitor in silence

• Tells friends and neighbors

• Talks to third parties like Press, lawyers..

• Talks to the Company

– Whom do you feel the best ?

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Customer (dis)satisfaction

• 96% of dissatisfied customers never complain to the business, but 91% will not make return purchases

• 70-85% of dissatisfaction is due to customer service not product; 68% of customers who stop buying do so

because they perceive an employee as discourteous or indifferent

• dissatisfied customers on average tell 12 friends of the poor service; satisfied people tell 5 friends (2:1 ratio)

• 70% will return if complaint is resolved, and 95% of customers would do business again if a problem is

resolved quickly and effectively

• highly effective companies spend 10% of their operations budget on fixing problems related to customer

complaints; ineffective ones spend 40%

• the average business loses 10-30% of its customers each year

(without knowing which, when or why lost)

• it’s more costly to win a new customer than to lose an existing one (5-

7 times greater); it takes 12 positive incidents to make up for a

negative one

• Customers are three times more likely than service providers to

recall the quality of the personal element in a transaction

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Customer expectations

influence the evaluation of quality

and forecast (from customers’ pre-

purchase perspective) how well the

product or service will perform.

Perceived quality

refers to overall quality,

reliability, and the extent

to which a product or

service meets the

customer’s needs; this

shows the greatest impact

on customer satisfaction.

Perceived value is measured

through overall price given quality

and overall quality given price; it

has somewhat less impact on

satisfaction and repeat purchase.

Customer complaint activity is

measured as the percentage of respondents

who reported a problem with the measured

companies’ product or service within a

specified time frame; it has an inverse

relationship to customer complaints.

Customer Loyalty is measured by likelihood to

purchase a company’s products or services at

various price points. Customer satisfaction has a

positive effect on retention, but the magnitude of

that effect varies greatly across companies and

industries.

ACSI

Components (American

Customer

Satisfaction Index)

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Some key points on developing loyalty

• Since what was once unexpected/unstated becomes

expected/stated, you must keep innovating

• Performance excellence occurs by design, not

default

• All parts of the organization are part of creating

customer loyalty

• Reliability: Keeping your promise, doing what you said you will do. Doing things

right the first time.

• Assurance: Making the customer feel safe in their dealings with you, being

thoroughly professional and ethical.

• Tangibles: How the product/service looks to the client, the appearance of

personnel and equipment, etc.

• Empathy: The degree to which the organization and service personnel

understand the individual client and their needs, the ability to adapt the service to

each client, the willingness to 'go the extra' for the client.

• Responsiveness: The availability, accessibility and timeliness of the service.

The ability to respond to enquiries and complaints in a timely fashion.

Dealing with difficult customers..

• Don’t return anger to anger

• Take control- assert yourself

• Never promise what can’t deliver

• Let them vent their anger

• Show concern and sympathy

• Apologize, even if it is not your fault

• Offer solution

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You don’t understand.

I don’t know.

I can’t…

You don’t see my point.

Hold on (or hang on) a second.

Our policy says (or prohibits)…

That’s not my job/responsibility.

You must/should…

You’ll have to…

What you need to do is…

What’s your problem?

Why don’t you…?

I never said…

Words & phrases that damage customer

relationship

“I’ll find out for you”;

“I’ll need to check on that

and get back to you”;

“I’ll have to look that up,

when is a good time for me to

call you back?”

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Words & phrases that build customer

relationship

• Please.

• Thank you.

• I can/will…

• How may I help?

• I was wrong.

• You’re right.

• I understand how you feel.

• May I …? / Could we try …?

• Have you considered …

• I’m sorry for …

• It’s my/our fault.

• What do you think?

• Would you mind?

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Express empathy to customers

Use empathic phrases:

• “I can see why you feel that way”

• “I see what you mean”

• “That must be very upsetting”

• “I understand how frustrating this must be”

• “I’m sorry about this”

• Always say you’re sorry

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Golden rules for listening..

• Put yourself in customer’s shoes

• Stop the chatter inside your head

• Concentrate on what is being said

• Show that you are listening

• Check details if you are in doubt

• Be aware of what is being missed by customer

• Write down the details..

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FEEDBACK

• Comment Card.

• Customer Questionnaire.

• Focus Groups.

• Toll Free Telephone No.

• Customer Visits.

• Report Card.

• Internet & Computer.

• Employee Feedback.

• Customer complaints

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ONCE U HAVE IDENTIFIED THE

COMPLAINTS/ PROBLEMS

NOW TURN TO ELIMINATION.

INCORPORATE CUSTOMER VOICE

INTO PRODUCT/ SERVICE

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Thank you..

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