MindMap Gallery Part 3 Understanding Customer Needs
The third article is a mind map to understand customer needs, in which relationship marketing is an empirical concept and a strategic guide that focuses on retaining and improving existing customers rather than acquiring new customers.
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This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
Part 3 Understanding Customer Needs
Chapter 6 Building Customer Relationships
Relationship Marketing
meaning
It is an empirical concept and a strategic guide that focuses on retaining and improving existing customers rather than acquiring new customers.
The evolution of customer relationships
customer as stranger
customer as acquaintance
customers as friends
Customers as partners
Purpose
Build and maintain a loyal customer base that benefits the organization
Customer-Business Relationship Benefits
customer benefits
confidence benefit
Contains a feeling of trust or confidence in the supplier, a comfortable feeling of reduced anxiety and greater understanding of expectations
social interests
Customers develop a sense of intimacy with service providers and establish a social relationship
special treatment benefits
Get a good deal or price, receive priority, or receive understanding and goodwill from the service provider
corporate interests
economic benefit
Growing sales, customers across industries are spending more money on their pending relationships year over year
customer behavioral benefits
Customer behavior benefits customers’ strong word-of-mouth recognition, spontaneous behavior, guidance of other customers, social benefits to other customers
Human Resource Management Benefits
Easier work for employees, social benefits for employees, and employee retention
customer relationship value
meaning
It is a concept or calculation method that looks at customers from the perspective of revenue and profit contributions that customers bring to the company during their lifetime.
Customer Profitability Segmentation
Classification of Profitability Levels—Customer Pyramid
The platinum tier represents the company’s most valuable customers
The gold tier represents customers who expect discounts, but to minimize risk they tend to choose multiple suppliers rather than just one business
The iron tier includes some important customers, but their spending levels, loyalty, and return rates are not high enough to warrant special treatment.
The lead tier is made up of customers who waste the business money
Profit level customer view
Make business decisions using profit levels
Develop relationship strategies
Core services provided
The service base is built on providing quality services
conversion disorder
customer inertia
One reason customers focus on building a relationship with a business is that switching businesses requires a certain amount of effort
switching cost
Part of the reason a customer is loyal to an organization is the cost involved in moving to a different business and spending money there
relational connection
Level 1: Financial linkage
Customers initially bond with a business through financial incentives, giving low prices for bulk purchases, or relatively low prices to customers who have long-term business dealings with the business
Level Two: Social Connections
Bring customers closer to the business than financial incentives
The third layer: customized connection
More than social connections and financial excitement
Level 4: Structured connections
The most difficult to imitate, including the structural, financial, social and customized connections between customers and enterprises
relationship challenges
The customer is not always right
Error segmentation
No profit in the long run
difficult customer
Termination of business relationship
end of relationship
Should businesses “fire” their customers?
Chapter 7 Service Recovery
Impact of service failures and remediation
meaning
Service performance falls below customer expectations, resulting in customer dissatisfaction
Actions an organization takes to address service failures to improve customer satisfaction
effect
Stimulate consumers’ desire to repurchase
Improve customer satisfaction, loyalty, word-of-mouth and negative impressions
Customer reaction to service failure
Reasons why people complain or don’t complain
waste your time and energy
Believe that complaining will not lead to satisfactory results
The complaint process is too cumbersome and feels like punishing myself
Types of customer complaints
Take the initiative to complain
Make a complaint online or through social media
Complain to a third party like the Better Business Bureau
complainer
Negative
Speakers
angry person
Activists
Service Recovery Strategy: Appease Customers
Quick response
Complaining customers expect quick response
Provide reasonable communication
Demonstrate understanding and responsibility
give reasonable explanation
Treat customers fairly
fair result
fair process
interactional fairness
Cultivate relationships with customers
When a business fails to deliver service, customers who have a solid relationship with the business are more likely to forgive the service failure and are more receptive to the business's service recovery efforts.
Service Remedy: Solve the Problem
Encourage and track complaints
Learn from remedial experiences
Learn from lost customers
Avoid service errors and try to do it right the first time
Pledge
meaning
Promise is a special patching tool that both reassures customers and solves problems
Characteristics of effective commitment
limited restrictions
Significant
easy to understand
Easy to implement
Types of service commitments
Unconditional satisfaction commitment or service attribute commitment
Feature Commitment
Benefits of Service Commitment
A good promise motivates a company to pay attention to its customers
An effective commitment sets clear standards for the organization
A good promise gets quick and relevant feedback from customers
A quick opportunity for remediation when implementing commitments
Information generated through commitments can be tracked
Commitment reduces customers' sense of risk and builds trust in the service organization
When to use or not use service promises
The company’s existing service quality is poor
Commitments are inconsistent with corporate image
Service quality is really uncontrollable
Potential for customer deception or fraud
The cost of the commitment exceeds the profit
Customers do not feel risk in the service
Replace or receive remedial service
Reason for changing service
price
inconvenient
Core service failure
Accidental service error
Response to service failure
compete
ethical issues
involuntary switching
Chapter 5 Listening to Customers through Research
Apply customer surveys to understand customer expectations
Goals of service research
Discover customer requirements and expectations for service
Monitor and track service performance
Comprehensive comparison of performance with industry competitors
Assess the gap between customer expectations and perceptions
Identify dissatisfied customers and provide remedial services
Evaluate the effectiveness of changes in service delivery
Evaluate the service performance of individuals or groups to determine their evaluation, recognition and compensation
Identify customer expectations for new services
Monitor changing customer expectations within an industry sector
Anticipate future customer expectations
Criteria for effective investigation planning
Market research includes qualitative and quantitative surveys
Market research includes customer perceptions and expectations
Balancing investigation costs with the value of information
Market research including statistical validity when necessary
Priority and importance of measurement
Conduct surveys with appropriate frequency
Market research includes assessment of loyalty, behavioral motivations or behavior
Elements of an Effective Services Market Research Plan
Complaint solicitation
critical incident technology
A qualitative interview procedure in which customers are asked to verbally tell stories of satisfaction and dissatisfaction during their service experiences.
demand survey
Used to identify the benefits and features expected by customers in a service
RELATIONSHIP AND SERVQUAL SURVEY
Addressing all elements of the service relationship with the customer can help the company diagnose the strengths and weaknesses of the relationship
Follow-up calls or post-trade surveys
Immediately after a transaction is completed, customers are asked a series of questions about their satisfaction with the transaction and which employees they interacted with during the service encounter.
Service expectations collection and evaluation
Evaluation of process checkpoints
Market Oriented Ethnology
secret purchasing
The company hires an external investigation agency and sends personnel to enter the service system as a customer and experience the service.
customer group
A group of customers who are brought together to provide information on their attitudes and expectations about service over a period of time
Lost customer survey
Carefully identify a type of customer and ask them why they left
Future Expectations Survey
Analyze and study market research results
Customer journey and experience map
Importance/Performance Matrix
Use market research information
Understanding how to best use survey information is an important way to bridge the gap between customer expectations and what managers understand about customer expectations
Communicate upward
Target
First-hand information about customers, improving internal service quality, obtaining first-hand information from employees, and obtaining ideas for improving service
investigation
Senior managers visit customers
Senior executive or manager listens to customers
Investigate intermediate customers
Survey internal customers
Senior executives or managers listen to employees
Employee suggestions
The benefits of upward communication
It provides upper management with information about the actions and performance of the entire organization, not only keeping employees happy but also learning more about their customers.