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This is part of a series of AMA management briefings which provide concise reports on current trends for professionals. It considers the question of customer satisfaction and customer loyalty, showing how to maximize profitability.
Everyone knows that the best way to create customer loyalty is with service so good, so over the top, that it surprises and delights. But what if everyone is wrong? In their acclaimed bestseller The Challenger Sale, Matthew Dixon and his colleagues at CEB busted many longstanding myths about sales. Now they’ve turned their research and analysis to a new vital business subject—customer loyalty—with a new book that turns the conventional wisdom on its head. The idea that companies must delight customers by exceeding service expectations is so entrenched that managers rarely even question it. They devote untold time, energy, and resources to trying to dazzle people and inspire their undying loyalty. Yet CEB’s careful research over five years and tens of thousands of respondents proves that the “dazzle factor” is wildly overrated—it simply doesn’t predict repeat sales, share of wallet, or positive wordof-mouth. The reality: Loyalty is driven by how well a company delivers on its basic promises and solves day-to-day problems, not on how spectacular its service experience might be. Most customers don’t want to be “wowed”; they want an effortless experience. And they are far more likely to punish you for bad service than to reward you for good service. If you put on your customer hat rather than your manager or marketer hat, this makes a lot of sense. What do you really want from your cable company, a free month of HBO when it screws up or a fast, painless restoration of your connection? What about your bank—do you want free cookies and a cheerful smile, even a personal relationship with your teller? Or just a quick in-and-out transaction and an easy way to get a refund when it accidentally overcharges on fees? The Effortless Experience takes readers on a fascinating journey deep inside the customer experience to reveal what really makes customers loyal—and disloyal. The authors lay out the four key pillars of a low-effort customer experience, along the way delivering robust data, shocking insights and profiles of companies that are already using the principles revealed by CEB’s research, with great results. And they include many tools and templates you can start applying right away to improve service, reduce costs, decrease customer churn, and ultimately generate the elusive loyalty that the “dazzle factor” fails to deliver. The rewards are there for the taking, and the pathway to achieving them is now clearly marked.
A nationally syndicated columnist and sales trainer shows how to convert "satisfied" customers into "loyal" customers. Includes real-world techniques, helpful checklists, inspiring stories, and thought-provoking self-tests.
This book does a tremendous job of bringing to life customer satisfaction and its significance to modern businesses. The numerous examples contained within the book's pages have proved a fresh and continuous source of inspiration and expertise as I work with my organisation in helping them understand why we should do what matters most to our customers and the lasting effect such actions will have on both our customer loyalty and retention. The authors are to be commended.
This analysis of marketing and loyalty argues that companies need to move away from offering products and services to creating concepts and experiences that can meet the needs of today's self-actualized customer. Since people have now come to expect high quality and good service, the companies that succeed will be those that find unique ways to satisfy their customers' needs. The authors argue that companies need to move well beyond traditional loyalty programmes and develop new systems to manage their customer relationships in order to remain competitive.
"Why confine a company to a handful of elitist black belts when we can convert all the people to black belts at a fraction of the cost and with far greater effectiveness." -- Author Keki R. Bhote Six Sigma started as a revolutionary quality tool at Motorola, gained fame as a powerful driver of cost savings at GE, and has spawned an entire industry of publications and consultants, many peddling a watered-down version of the original Motorola Six Sigma process. Now, Keki Bhote, one of the founders of Six Sigma, taps into the rigors and rewards of this breakthrough process--but moves it beyond mere quality to focus on total business excellence in 12 key areas. From customer loyalty to leadership to supply chain management, "The Ultimate Six Sigma" provides the techniques and metrics needed to measure success, and supplies self-assessment audits to help readers ensure that they're getting it right. Case studies illustrate how Six Sigma has been successfully implemented in each key area.
World economics and the industrial environment has recently created a fertile ground for the creation of new enterprises and start-ups. This book skilfully identifies the challenges of building a new business venture from an idea to a marketable product. It highlights • Robust methods for keeping up with innovation; • Designing new ways to grow, improve and market your product; and • Managing the changes in the business environment, market dynamics and other uncertainties. The volume is rich with examples and case studies of many small and large businesses. It further reflects on the business and entrepreneurship ecosystem, the challenges and opportunities in India, entrepreneurship and women, e-commerce, the new generation of entrepreneurs, and exit strategies for entrepreneurs. An essential guide for entrepreneurs and professionals working in business management and marketing communications, as well as scholars of business administration and financial sciences, this book by an industry expert offers many new and practiced approaches, examples and lessons for innovative thinking and breaking new ground in business.
Business growth depends on more than asking a single question. Challenging the widely touted Net Promoter Score (NPS) claims, author Bob E. Hayes provides compelling evidence that, to grow their business, companies need to look beyond this simple question to efforts on improving the entire customer feedback program (CFP). First, customer loyalty consists of three components, advocacy, purchasing, and retention, each providing unique and useful information regarding future business growth. By measuring these three components of customer loyalty, companies will be better able to manage their customer relationships to maximize growth through new and existing customers. Second, because of the diverse business practices companies can employ with respect to their CFPs, there are hundreds of different ways a company can structure its particular program. Some companies have top executive support for their programs while others do not. Some companies integrate their customer feedback data into their daily business processes while others keep them separate. Some companies use customer feedback results as part of their employee incentive programs while other companies rely on more traditional incentive programs. Still some companies conduct in-depth customer research using their feedback data while others rely on basic reporting of their customer feedback data for their customer insight. But are there critical elements of a customer feedback program that are absolutely necessary for its success? Can a company exclude some elements from its program without adversely impacting its effectiveness? How important are certain components in increasing customer loyalty? This book answers these questions. It is a direct result of the author’s scientific research and professional experience in the field of customer satisfaction and loyalty. This book represents the first scientific study that has tried to identify the best practices of customer feedback programs. Hayes formally collected information from many CFP professionals regarding how they structure their CFPs, and identified specific CFP practices that lead to higher levels of customer loyalty. Additionally, he worked first-hand with employees from Microsoft, Oracle, Harris Stratex Networks, Akamai, and American Express Business Travel in gathering insights and case studies to illustrate how to build a world class CFP. Learn why companies should look beyond the NPS as the ultimate question and learn how to design an effective CFP that will help improve the customer experience, increase customer loyalty, and, ultimately, drive business growth. For those unfamiliar with CFPs, the appendices provide detail on methods used in the main body of the book: a discussion on methods of determining customer requirements (those elements of your business that are important to your customers), a complete discussion on how to write survey questions, and brief discussions on particular statistical analysis methods that can help you understand how customer feedback data are analyzed.
In today’s competitive business climate, you can’t just satisfy your customers. You have to be better than that, giving them experiences that they won’t forget. Author Shep Hyken has spent thirty years studying great companies and the evangelists they create. In The Cult of the Customer, Hyken shows how to design a strategy that leads both customers and employees through five distinct cultural phases – from "uncertainty" to "amazement." By presenting dozens of case studies that show how great companies made this journey, Hyken identifies the critical internal and external changes that allowed them to build a Cult of the Customer – and shows how you can do it too. Hyken’s message is both powerful and timely: the happier your customers and employees are, the more successful your company will be. The Cult of the Customer is your guide to creating a customer-focused culture that turns satisfied customers into customer evangelists.