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Industry Internship TM 391

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Title: TYPES OF CUSTOMERS Author: Valued Gateway Customer Last modified by: Tourism.User Created Date: 2/5/1999 11:50:09 PM Document presentation format – PowerPoint PPT presentation

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Title: Industry Internship TM 391


1
Industry InternshipTM 391
  • Lecture 3

2
TQMs Customer Approach
  • the customer defines quality.
  • the customer is always right.
  • the customer always comes first.
  • the customer is king.
  • quality begins and ends with the customer

3
Types of Customers
  • External - outside the organization (people who
    pay the bills.)
  • End-user customers
  • Manufacturer (OEM) for suppliers.
  • Internal - people within your organization who
    receive your work
  • In many situations, producers have multiple
    customers and therefore find it useful to
    identify core customers

4
Some Data on Customer Attitudes and Loyalty
  • (Source Winning Back Angry Customers, Quality
    Progress, 1993)
  • An average customer with a complaint tells 9-10
    people if it is resolved he/she only tells 5
    people.
  • For every complaint received, there are twenty
    others that are not reported.
  • It costs 5-10 times more in resources to replace
    a customer than it does to retain one.
  • Companies spend 95 of service time redressing
    problems and only 5 trying to figure out what
    made the customer angry.

5
Measuring Customer Satisfaction
  • Example J.D. Power -- Initial Quality Survey
    measures customer satisfaction - problems per 100
    vehicles.
  • Effect of J.D. Power IQS on automotive quality?
  • 1998 176 problems per 100 vehicles
  • 2005 118 problems per 100 vehicles
  • How does greater customer awareness impact
    quality?

6
(No Transcript)
7
Methods to CollectCustomer Satisfaction Data
  • Negative Feedback Analysis
  • customer complaints, warranty claims, repair
    records
  • focus on problems
  • concern many dissatisfied customers do not
    complain (1/20 complain).
  • Proactive Feedback (ask customers for their
    opinions)
  • examples customer surveys, focus groups,
    employees as customers.
  • advantage identify key product features and
    assess levels of performance.
  • Analysis of Competitor Products
  • examples Benchmarking, War Rooms or Tear Down
    Analysis
  • advantage Know thy competitor, know thyself

8
Identifying Customer Needs
  • Possible solutions
  • focus-group discussions
  • individual and group interviews
  • surveys
  • comment cards
  • study repair and return data
  • customer complaints
  • warranty claims
  • analyze competitor products

9
Types of
  • Customer

10
Types of Customers.
  • .Based on unique behavioral attributes, customers
    are of following types
  • .Loyal customer
  • .Discount customer
  • .Impulse customer
  • .Need based customer
  • .Wandering customer

11
Loyal Customer
  • .They represent no more than 20 percent of our
    customer base, but make up more than 50 percent
    of our sales.
  • .Nothing will make a Loyal Customer feel better
    than soliciting their input and showing them how
    much you value it.
  • . These people are the ones who can and should
    influence our buying and merchandising decisions
  • .We need to be communicating with these customers
    on a regular basis by telephone, mail, email,
    etc..

12
  • . Customer satisfaction will lead to customer
    expectation.
  • . 1 Satisfied customer will lead to 500 new
    customers.
  • . the more you do for them, the more they will
    recommend you to others.

13
Discount Customer
  • They shop our stores frequently, but make their
    decisions based on the size of our markdowns

14
  • .This category helps ensure your inventory is
    turning over and, as a result, it is a key
    contributor to cash flow
  • .This same group, however, can often wind up
    costing you money because they are more inclined
    to return product.
  • .Merely satisfied customers, also show defection
    ready to switch.
  • .Chase low prices.
  • .Milk these customers as long as they are active
    or in discount seasons.

15
Impulse Customer
  • They do not have buying a particular item at the
    top of their To Do list, but come into the
    store on a whim. They will purchase what seems
    good at the time.

16
  • Clearly, this is the segment of our clientele
    that we all like to serve.
  • There is nothing more exciting than assisting an
    Impulse shopper and having them respond favorably
    to our recommendations.
  • They will purchase what seems good at the time
  • Buy on impulse.
  • Maximize the profit on each transaction.
  • Pursue fashion trends.

17
Need Based Customers
  • People in this category are driven by a specific
    need.
  • When they enter the store, they will look to see
    if they can have that need filled .if, not they
    will leave right away
  • It is difficult to satisfy these people.
  • Customers are habitual of particular brand.

18
  • Show inertia in brand switching.
  • Need based customer can easily be lost to
    internet sales or a different retailer.
  • So to overcome this threat, positive personal
    interaction is required.
  • They can also become loyal customers if they are
    well taken care of.

19
Wandering Customer
  • They have no specific need or desire in mind when
    they come into the store.
  • They want a sense of experience or community.
  • They make up the smallest percentage of sales.
  • keep in mind, however, that although they may
    not represent a large percentage of your
    immediate sales, they are a real voice for you in
    the community.
  • Although wandering customers cannot be ignored,
    the time spent on them needs to be minimized.

20
Provide Services to Colleagues and Customers
  • Guest Relations
  • Complaint Handling

21
TYPES OF CUSTOMERS
  • INTERNAL CUSTOMERS
  • People with whom we work
  • EXTERNAL CUSTOMERS
  • Including
  • - International tourists
  • - Families
  • - Business Travellers
  • - People with disabilities
  • - Difficult customers

22
What are wants, needs and expectations?
  • Needs
  • A human need is a state of felt deprivation
  • Wants
  • A form taken by human needs as they are shaped by
    culture and individual personality
  • Expectations
  • To be treated with respect
  • To be made welcome
  • To receive timely and professional assistance and
    service
  • To be understood
  • To feel important
  • To be appreciated
  • To be recognised
  • To enjoy the experience

23
Factors influencing needs and expectations include
  • Social
  • Cultural
  • Economic
  • Health
  • Age
  • Personality
  • Personal interests
  • Likes and dislikes
  • Time Available
  • Perception

24
NEEDS AND EXPECTATIONS OF CUSTOMERS could include
  • Basic Human Needs
  • Food, Shelter, Security,Social and Esteem
  • Special services and facilities
  • Entertainment
  • Information

25
What would you consider when dealing with guests
with special needs?
  • Physically challenged mobility impaired,
    hearing impaired or blind
  • Intellectually challenged
  • Pregnant women
  • Families with children
  • Unaccompanied children
  • Business travelers
  • Travelers with special cultural or language needs
  • Elderly travelers

26
Customer Service Skills include
  • Meeting customer requirements
  • Demonstrating communication skills listening
    and questioning techniques
  • Handling customer requests and complaints
  • Developing a rapport
  • Promoting suitable products and service to
    enhance experience
  • To deliver quality service we must also
    demonstrate appropriate work ethics and behaviour.

27
What is quality service?
  • You could describe customer service as the art of
    relating to your customers so they feel
    comfortable, looked after, satisfied, special and
    welcome.
  • Service excellence is achieved when the
    enterprises services and facilities not only
    meet but exceed the guests expectations.
  • Can you think of when this has happened to you?
  • Can you think of when you may have delivered
    quality service to a customer?

28
WHAT WE NEED TO PROVIDE QUALITY SERVICE!!!
  • KNOWLEDGE
  • - Of your customer
  • - Of how to do your job
  • - Of all services and facilities in your hotel
  • - Of local and state attractions
  • SKILLS
  • - Interpersonal skills
  • - Anticipation of your customer needs
  • ATTITUDE
  • - Genuine desire to help your guests - whether
    solving
  • problems or just making sure they have a great
    stay
  • - Positive attitude at all times
  • - Proactive providing help and guidance
    without necessarily being
  • asked guests feel they can depend on you
  • - Displaying tact and diplomacy

29
Steps to Ensure we give Quality Service!
  • Anticipate needs
  • Welcome customers warmly with a warm genuine
    smile
  • Listen and probe - ask open questions
  • Reflective listen
  • Offer an action plan to deliver what they want
  • Agree on this plan
  • What? Where? When? How?
  • Avoid broken promises
  • Follow up to check everything is up to their
    expectations
  • Combine this with
  • Communicating in a language they can understand
  • Tune into their individual needs by observation
  • Use their name wherever possible

30
Maintaining Quality Service
  • Organisation and staff responsibilities
  • Training of staff
  • Good communications between departments
  • Established work programs
  • Good awareness of activities within other
    departments
  • Importance of quality customer service to
    hospitality industry
  • Customers have come to expect quality service
  • Competition demands quality service
  • Quality service is the key to business success
  • Quality service requires you to be one step ahead
    of the customer anticipating their needs

31
ANTICIPATE THE NEEDS OF YOUR CUSTOMERS
  • ASK YOURSELF
  • Have I considered all the customer needs?
  • What could the customer need next?
  • How can I improve the service now for the
    customer?
  • Then offer to provide that service - without the
    customer having to ask!
  • Have you ever anticipated a customers needs?

32
How do you know when weve given Quality Service?
  • Increased job satisfaction
  • Positive performance appraisals
  • Gratuities tips/gifts
  • Thank You - by letter or verbally
  • Enhanced reputation
  • Establishment winning quality awards
  • Returning guests
  • Guest Comment Cards - Questionnaires

33
WHY PEOPLE COMPLAIN?
  • From frustration
  • To impress other people
  • For compensation

34
When dealing with a guest complaint - NEVER
  • Talk down to the customer
  • Be defensive
  • Justify why it happened
  • Blame other people or departments
  • Blame the customer

35
COMPLAINT HANDLING PROCEDURE
  • Listen without interruption
  • Dont get defensive
  • Use a sad but glad expression
  • Express concern and empathy - apologise sincerely
  • Establish the problem - ask questions
  • Find out what they want
  • Explain what you can and cannot do
  • Fully discuss alternatives
  • Take Action
  • Follow up to ensure they are happy

36
Handling Complaints
  • Information recorded accurately in Complaint Log
  • Recognised complaint handling procedure followed
  • Relevant department or personnel consulted
  • Follow up to ensure everything is resolved -
    record action in Log
  • Log reviewed to see if on going/multiple
    complaints being received and what steps can be
    taken to rectify.

37
Empowerment
The person who takes the complaint owns the
complaint. You should try to resolve the
complaint to the best of your ability. Do you
know what you can do to resolve a complaint
without calling for a manager or supervisor?
38
Complaint Recording and Follow Up Procedures
  • All complaints must be handled diplomatically so
    all parties recognise
  • The issue has been raised with relevant authority
  • All points of view have been aired
  • Discretion will be applied in resolving the
    matter
  • Due process will be followed
  • Action will be taken and the matter will be
    remedied
  • You must establish the details of the customer
    complaint through
  • Questioning and active listening techniques
  • Summarising and clarifying the issue
  • Recording details of complaint
  • Discussing with customer the process of
    resolution giving them options and letting them
    know how the complaint will be resolved
  • You need to know the lines of reporting
    complaints and when to seek assistance

39
Benefits of positive handling of complaints
  • The value of amicably resolving complaints can
    not be underestimated and include
  • Promoting goodwill
  • Improved customer relations
  • Positive work of mouth publicity
  • Promotion of enterprise service ethic

40
DIFFERENCE BETWEEN A COMPLAINING CUSTOMER AND A
DIFFICULT CUSTOMER
  • A complaining customer is somebody whose needs
    and expectations have not been met
  • A difficult customer is somebody who is a
    challenge to serve because of their personality,
    for example, they may be rude, impatient or
    talkative

41
HOW CAN A CUSTOMER BE DIFFICULT?
  • Rude
  • Impatient
  • Noisy
  • Talkative
  • Confused - unable to make decisions
  • Silent
  • Fussy

42
TYPES OF DIFFICULT CUSTOMERS
  • Rude Customer
  • Can be rude to everyone - they just
  • dont feel comfortable being nice.
  • DO Ignore their rudeness and dont take it
    personally
  • DONT Become Rude and Aggressive
  • Impatient Customer
  • Always in a hurry - and it wont matter how
    quickly you serve them - they will still be
    impatient
  • DO Serve them quickly and politely
  • DONT Waste their time with conversation and
    they may not want you trying to sell them
    products and services

43
TYPES OF DIFFICULT CUSTOMERS
  • Confused Customer
  • Find it difficult to make decisions and may take
    a long time
  • to decide
  • DO Be helpful by making suggestions and asking
    questions
  • DONT Rush them - they could become flustered
    and embarrassed
  • Talkative Customer
  • Wants to talk and could spend all day doing it
  • DO Be friendly and attentive - Lead the
    conversation
  • DONT Ignore them or give them all your
    attention
  • so other customers are ignored

44
Thank You
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