Building Customer Loyalty Through Quality

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Chapter 11

• Building Customer Loyalty Through Quality

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• To win in todays marketplace companies must be
  customer-centered they must deliver superior
  value to their target customers

3
Value

• Customer-delivered value total customer value
  total customer cost
• Value
• Costs
• Customer satisfaction
• Customer loyalty

4
Relationship Marketing

• Creating, maintaining, enhancing strong
  relationships with customers
• The cost of lost customers
• Resolving customer complaints
• Link between marketing and quality

5
What is quality?

• Product features
• Freedom from deficiencies
• Three categories of service quality
• Technical
• Functional
• Societal

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Benefits of Service Quality

• Retaining customers
• Avoidance of price competition
• Retention of good employees
• Reduction of costs
• Internal costs
• External costs
• Quality systems

7
Managing Capacity

• Involve the customer in the service delivery
  system
• Cross-train employees
• Use part-time employees
• Rent or share extra facilities and equipment
• Schedule downtime during periods of low capacity
• Extend service hours
• Use technology
• Change configuration of the service

8
Managing demand

• Use price to create or reduce demand
• Use reservations
• Overbook
• Use booking curve analysis
• Use queuing
• Shift demand
• Change the salespersons assignment
• Create promotional events