Literature review Introduction Within this chapter I will discuss customer service and its benefits. What Customer Loyalty is and factors that influence customer loyalty and rewards. What is Customer Service The concept of Customer service can be multifactorial, but I feel that ultimately it involves customer’s satisfaction and how companies strive to retain their customer base by implementing certain customer service procedures to keep the customer happy, in the hope that they can retain their custom and that the customer will then spread the news about the excellent service that was provided by the company. (Twomey, 2012, p. 2), defined it as, The provision of a product or service of a sufficient quality and in a sufficient manner that reaches or exceeds the customer’s expectations However, (Leland & Bailey, 2006, p. 12) expands on this definition by discussing the concept of being “customer focused” and that by appeasing the needs of your customers by any means possible your company will meet the requirements of being customer focused this in turn will improve “customer Loyalty” and “word of mouth”. This would suggest that being customer focused in terms of their needs and expectations can have a major impact on how and why customers use or continue to use your company or
B. Quality customer service requires meeting and exceeding the presumption of others by interacting in a cordial and positive way. C. According to (Sparks, 1992) “…customer service is all about attracting, retaining and enhancing customer relationships”). VII. Retail customer service provides favorable chances to connect with customers and clients by utilizing Godly values that conform to scripture.
They point to the benefits of improved communication, better understanding customer expectations and perceptions of service quality leading to improved sales, increased profitability, reduced customer turnover, service cost and time. Maintaining existing loyal customers giving rise to a stable customer base is widely acknowledged as one of the key benefits of good customer relationships. Tao F (2014) refers to a study which showed that the cost of developing a new customer is six times higher than maintain an existing customer. While a loyal customer is less costly they also become advocates for the brand and can generate new business through recommendations to others. With good customer relationship a company gains better information and insight into the customer, their behaviours, preferences and needs.
Keeping service quality high enables a service firm to achieve customer loyalty and thus retain the existing customers as well as attract new customers to it. Advantages of customer retention is a crucial factor in a service’s growth and development for which reason the firm maintain understanding, meeting and delivering customer expectations as its primary goal. These are strategized as reference points. The customer’s perception about performance is based on these references by which he evaluates the service quality. A thorough understanding of customer expectations is indispensable to marketers.
The Benefits of a Good Customer Relationship From the company 's point of view some of the benefits of a good customer relationship are: • Economic o Your administration and marketing costs are reduced as it 's cheaper to retain an existing customer than trying to attract a new one. (Reichheld & Sasser, 1990) cite the example of the $51/customer that it costs credit card companies to recruit and set up a new customer. o It 's generally takes a lower overhead on the company to maintain a relationship with the customer as the length of the relationship increases. (Rosenberg & Czepiel, 1984) claim that the cost of maintaining an existing customer is up to five times less than the cost of attracting a new one. (Reichheld & Sasser, 1990) claim that a retention rate increase of just 5% can boost profits by almost 100%.
It also exposed that link exist between customer satisfaction and customer loyalty. With help of this study we can finish that services quality leads to happy customers and customer satisfaction leads to customer loyalty. In today s’ compititative world banks
Customer Experience: An Organizational Skill With time, the global business paradigm is changing fast and so is changing the way business is conducted. For example, a few years ago, business houses used to consider product quality, competitive price, and customer service the essential trios for customer retention. However, over the years, customer experience has joined the list. Indeed, in today’s time, customer experience is increasingly being touted by modern marketers across industries. Before we go into further details, we need to know what exactly ‘customer experience’ is.
A great customer service person fixes customer problems without belittling them or making them feel like a fool – even if they were the fool! • Great problem solving skills – another obvious point but crucial, nonetheless. You’ll never know what type of problem your customer throws at you, so you need to be able to think fast and solve issues with speed. Some of the above skills can naturally be developed and enhanced by training. Indeed, training is a crucial part of your customer service department and you should regularly provide employees the opportunities for
2000: 826).The individual market segments should be targeted in terms of developing customer loyalty. Customer loyalty is one of the most important and critical factors for a company's success. Customer loyalty happens when customers have a great experience, and it leads to many benefits: loyal customers return for future business, refer friends and family to a business, and spread positive comments about a company through word-of-mouth advertising. With social media and the ease of rating companies. There are several factors that can influence customer loyalty.
This has been as a result as new technologies available to assist companies in reducing their costs and an increase in market diversity. Although it can be argued that to decide which approach is the most superior depends on the circumstances. The benefits of customer-centric behaviour are evident. These include advantages such as efficiency. This is key to any firm.