{"id":154,"date":"2015-07-30T00:34:45","date_gmt":"2015-07-30T00:34:45","guid":{"rendered":"https:\/\/courses.candelalearning.com\/salesx17xmaster\/?post_type=chapter&p=154"},"modified":"2015-07-30T21:39:24","modified_gmt":"2015-07-30T21:39:24","slug":"13-2-customer-satisfaction-isnt-enough","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/cerritos-sales-1\/chapter\/13-2-customer-satisfaction-isnt-enough\/","title":{"raw":"Customer Satisfaction Isn\u2019t Enough","rendered":"Customer Satisfaction Isn\u2019t Enough"},"content":{"raw":"
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Learning Objective<\/h3>\r\n
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  1. Understand how customer satisfaction relates to customer loyalty.<\/li>\r\n<\/ol>\r\n<\/div>\r\nCustomer loyalty and retention are the holy grail in sales\u2014and in all areas of business, for that matter. Loyal customers are how successful businesses are built. Not only is it easier to sell more to existing customers, it is financially prudent to do so. Some companies have increased their profit by as much as 100 percent by focusing on retaining an additional 5 percent of customers. Since it costs about five times more to acquire a new customer than to retain an existing customer, companies are well served to focus on retaining existing customers and making them into advocates for their brand.[footnote]Chia-Chi Chang, \u201cWhen Service Fails: The Role of the Salesperson and the Customer,\u201d Psychology & Marketing<\/em> 23, no. 3 (March 2006): 204.[\/footnote]<\/span> In other words, \u201cCustomer acquisition is an investment, but customer retention delivers profitability.\u201d[footnote]Guy Maser, \u201cHow to Earn Your Customers\u2019 Loyalty,\u201d CRMBuyer.com, July 16, 2009, http:\/\/www.crmbuyer.com\/story\/67608.html<\/a> (accessed November 23, 2009).[\/footnote]<\/span>\r\n
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    Follow-Up, Feedback, and Fans<\/h2>\r\nEarlier in this chapter, the five elements of follow-up were discussed including getting feedback from customers. This concept is so important, it\u2019s worth drilling a little deeper into it. It is loyal customers who buy more from you in the form of more products and services more often. Companies that focus on creating customer loyalty usually invest in developing an effective customer feedback loop<\/span><\/span>, a formal process for gathering, synthesizing, and acting on customer feedback. The most successful customer feedback loops are simple, focus on understanding what is important to customers, and empower front-line employees<\/span><\/span> (i.e., those who interact with customers on a day-to-day basis, such as salespeople). For example, Charles Schwab, an online investment services company, has a process whereby managers review customer feedback daily from comments on the company Web site, transactions, and other communications with the company. Managers and sales reps respond personally to negative customer comments. Cheryl Pasquale, a branch manager, says she looks forward to customer calls to follow up on complaints or less-than-positive comments. She feels she has an opportunity to turn \u201ccritics into fans.\u201d[footnote]Rob Markey, Fred Reichheld, and Andreas Dullweber, \u201cClosing the Customer Feedback Loop,\u201d Harvard Business Review<\/em>, http:\/\/hbr.harvardbusiness.org\/2009\/12\/closing-the-customer-feedback-loop\/ar\/pr<\/a> (accessed November 23, 2009).[\/footnote]<\/span>\r\n\r\nThere are several different types of customer feedback loops that companies use such as mystery shopper programs, customer satisfaction surveys, and other measurement tools. Some of these methods are expensive, require elaborate reporting, and take a long time to compile and act on the data.[footnote]Rob Markey, Fred Reichheld, and Andreas Dullweber, \u201cClosing the Customer Feedback Loop,\u201d Harvard Business Review<\/em>, http:\/\/hbr.harvardbusiness.org\/2009\/12\/closing-the-customer-feedback-loop\/ar\/pr<\/a> (accessed November 23, 2009).[\/footnote]<\/span> Simply asking customers what they think can defeat the purpose if companies don\u2019t act quickly on the feedback. It raises customer expectations that action is going to be taken.[footnote]Dr. Laura Brooks, \u201cClosing the Loop on Customer Feedback,\u201dSales & Marketing Management, April 23, 2009, http:\/\/www.salesandmarketing.com\/article\/closing-loop-customer-feedback<\/a> (accessed November 23, 2009).[\/footnote]<\/span>\r\n
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    Power Selling: Lessons in Selling from Successful Brands<\/h3>\r\nFollow-Up Is Just a Tweet Away\r\n\r\nPersonal follow-up meets technology with more than half of Fortune<\/em> 100 companies using Twitter as one of the tools in their arsenal to respond to customer service issues. Comcast is a leader in this area. The company believes that Twitter has provided more transparency and improved communication with customers in multiple channels.[footnote]Jon Swartz, \u201cTwitter Helps Customer Service,\u201d USA Today<\/em>, November 18, 2009, 3B.[\/footnote]<\/span> Comcast uses Twitter to address follow-up issues such as a service call that didn\u2019t happen on time, service that isn\u2019t operating properly, and even billing issues. According to Frank Eliason, director of digital care at Comcast, Twitter is not a replacement for phone and e-mail follow-up. However, he says, \u201cIt gives immediacy to interactions.\u201d He finds that customers are surprised\u2014and pleased\u2014to hear from him so quickly on Twitter.[footnote]Rebecca Resisner, \u201cComcast\u2019s Twitter Man,\u201d BusinessWeek<\/em>, January 13, 2009, http:\/\/www.businessweek.com\/managing\/content\/jan2009\/ca20090113_373506.htm<\/a> (accessed January 8, 2010).[\/footnote]<\/span> The bottom line is to take care of the customer, no matter what method you use for follow-up.\r\n\r\n<\/div>\r\n<\/div>\r\n
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    One Simple Question<\/h2>\r\nSuccessful companies have found that customers can be more than customers; they can be advocates, supporters, promoters, and fans. It\u2019s these passionate fans that not only spend their money with these companies but also tell their friends and ultimately their friends\u2019 friends to patronize the company. The mutual admiration of brand and customer starts with the culture of the company. Those companies that not only listen to their customers but also engage them in communities, new product development, and other improvements are the ones that have a maniacal focus on the customer. They get it. For example, watch this video of a Southwest Airlines flight attendant that was posted to YouTube by a passenger. Talk about being a fan of the brand\u2014it\u2019s hard not to be after you watch this video.\r\n
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    Video Clip<\/h3>\r\nSouthwest Gets It\r\n\r\nhttps:\/\/youtu.be\/zT6YMnA2CgU\r\n\r\nSee how an ordinary activity can create an extraordinary customer experience.\r\n\r\n<\/div>\r\nIn another example, it\u2019s no surprise that Zappos, the dominant online shoe and apparel retailer, has a maniacal focus on the customer when you listen to CEO Tony Hsieh talk about his philosophy of customer service. Zappos has grown to be a billion-dollar business in just ten years. Although shoes have a notoriously high return rate due to fit problems, Zappos offers free shipping both ways to encourage purchases. Hsieh\u2019s vision for the ultimate experience in customer service is clear throughout the company (try calling their 800 number for customer service and experience Zappos\u2019 unique telephone greeting).\r\n
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    Video Clip<\/h3>\r\nZappos Gets It\r\n\r\nhttps:\/\/youtu.be\/py1iRsBcYMc\r\n\r\nHear CEO Tony Hsieh talk about why Zappos is a fan favorite.\r\n\r\n<\/div>\r\nMany companies have found that Net Promoter Score (NPS)<\/span><\/span> is the ideal customer feedback tool because it is simple, keeps the customer at the forefront, allows frontline employees to act, thereby closing the customer feedback loop.[footnote]Rob Markey, Fred Reichheld, and Andreas Dullweber, \u201cClosing the Customer Feedback Loop,\u201d Harvard Business Review<\/em>, http:\/\/hbr.harvardbusiness.org\/2009\/12\/closing-the-customer-feedback-loop\/ar\/pr<\/a> (accessed November 23, 2009).[\/footnote]<\/span> Net Promoter Score is based on asking customers the ultimate question: \u201cHow likely are you to recommend this product or company to a colleague or friend?\u201d The response is based on a ten-point scale and categorizes responses as follows:\r\n