Business Context
Research shows that the most critical driver
of sustainable business growth is an expanding base of loyal
customers. Unfortunately, research also tells us that the average
company loses 10% of its customer base every year and it costs
five times more to acquire a new client than to retain an existing
one. It is no longer enough to just provide a quality product
since this is now a baseline expectation of most customers. The
ability to create a cadre of truly loyal customers is dependent on
the ability to deliver superior service.
68% of customers stop doing
business with a company because of a bad service encounter. 96% of
these customers never let a business know they are unhappy. But
these same customers will tell five times as many people outside
the company about their bad experience as any good experience—50
times as many if they perceive the company contact person was
argumentative.
It pays to manage customer
contacts effectively and maintain a loyal customer base.
Statistics show that a 5% reduction in customer defection can
increase profits by 25% or more.
Target Audience
Target participants include the executive team, customer service
organization, sales organization, and internal support functions,
in an organization committed to pursuing customer excellence as a
key business strategy.
Key Topics
Economics of Customer Loyalty is a ½-day program that focuses
on the following:
-
The service-profit chain
-
Calculating the value of
an existing customer
-
Calculating the costs
associated with poor customer management
-
Economic impact of “Word
of Mouth”
-
Relationship between
customer satisfaction and loyalty
-
Measuring customer
disaffection
-
Service recovery and the
impact on loyalty
-
Relationship between
customer satisfaction and customer attitudes regarding price
-
Key drivers of customer
value
-
How to identify your most
profitable customers
-
Application to real world
situation
Outcomes
At the conclusion of this course participants will be able to:
-
Calculate the costs and
potential ROI of their own customer opportunities
-
Understand the
interconnectedness of different functions in support of the
customer
-
Understand the business
implications of negative customer experiences
-
Define what their
customers value and/or understand how to secure that information
-
Define potential business
vulnerabilities for their business and how to validate those
assumptions
-
Identify an action plan
for addressing vulnerabilities
For More Information
For more information, contact Carpe Diem Consultants, Inc. at
info@loyalty-cdci.com or call us at 877-733-1320
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