Encouraging Customer Loyalty – Flashcards
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customer loyalty
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Term used to describe the tendency of customers to return to a product or organization regularly because of the service and satisfaction they receive.
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trust
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Key element in cementing interpersonal relationships.
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touch point
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Any instance in which a service provider or organization (e.g., face to face, in writing, through tech.) comes in contact with a customer; it is an opportunity to influence cusotmer loyalty and enhance the customer relationship.
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customer relationships
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The practice of building and maintaining oncoing friendships with customers in an effort to make them feel comfortable with an organization and its service providers and to enhance customer loyalty.
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customer relationship management (CRM)
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Concept of identifying customer needs: understanding and influencing customer behavior through ongoing communication strategies in an effort to acquire, retain, and satisfy the customer.
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customer retention
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The ongoing effort by an organization to meet customer needs and desires in aneffort to build long-term relationships and keep them for life.
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Technical Assistance Research Program (TARP) Worldwide
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An Arlington, Virginia, based firm specializing in customer service research studies for call centers and many other industries.
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cost of dissatisfied customers
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Phrase that refers to any formula used to calculate the cost of acquiring a new customer or replacing a current one as a result of having a dissatisfied customer leave an organization.
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channel partner
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Relationship of two organizations in which they are able to build a larger and stronger competitive presence in the marketplace.
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code of ethics
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A set of standards, often developed by employees, which guide the conduct of all employees.
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contingency plans
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Backup systems or procedures that are implemented when regular ones break down or fail to function as intended.
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Planning Process Model
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Five-step process for creating contingency or backup plans to better serve customers when problems arise or things do not go as expected. (1: set a goal, 2: examine & evaluate, 3: Identify alternatives, 4: Select best alternatives, 5: Create)
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churn
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The process of a customer switching between products or companies, often simply to get a better price, rebate, or warrenty.
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moment of truth
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A phrase popularized by Scandinavian Airlines System President Jan Carlzon in his popular 1987 book of the same name. it is defined as any instance when a customer comes into contacts with any element or representative of an organization.
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contact points
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Instances in which a customer connects with a service provider or some other aspect of an organization.
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relationship-rating points
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Values mentally assigned by customers to a service provider and his or her organization. They are based on a number of factors starting with initial impressions and subsequently by the quality and level of service provided.
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relationship-rating point scale
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The netal ratin gsystem that customers apply to service and service providers. Ratings range from exemplary to unsatisfactory, with average being assigned when service occurs as expected.
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total quality management (TQM) and continuous quality improvement (CQI)
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A systematic approach to identifying and quantifying best practices in an organization and/or industry in order to make improvements in effectiveness and efficiency.
