Encouraging Customer Loyalty

customer loyalty
Term used to describe the tendency of customers to return to a product or organization regularly because of the service and satisfaction they receive.
trust
Key element in cementing interpersonal relationships.
touch point
Any instance in which a service provider or organization (e.g., face to face, in writing, through tech.) comes in contact with a customer; it is an opportunity to influence cusotmer loyalty and enhance the customer relationship.
customer relationships
The practice of building and maintaining oncoing friendships with customers in an effort to make them feel comfortable with an organization and its service providers and to enhance customer loyalty.
customer relationship management (CRM)
Concept of identifying customer needs: understanding and influencing customer behavior through ongoing communication strategies in an effort to acquire, retain, and satisfy the customer.
customer retention
The ongoing effort by an organization to meet customer needs and desires in aneffort to build long-term relationships and keep them for life.
Technical Assistance Research Program (TARP) Worldwide
An Arlington, Virginia, based firm specializing in customer service research studies for call centers and many other industries.
cost of dissatisfied customers
Phrase that refers to any formula used to calculate the cost of acquiring a new customer or replacing a current one as a result of having a dissatisfied customer leave an organization.
channel partner
Relationship of two organizations in which they are able to build a larger and stronger competitive presence in the marketplace.
code of ethics
A set of standards, often developed by employees, which guide the conduct of all employees.
contingency plans
Backup systems or procedures that are implemented when regular ones break down or fail to function as intended.
Planning Process Model
Five-step process for creating contingency or backup plans to better serve customers when problems arise or things do not go as expected. (1: set a goal, 2: examine & evaluate, 3: Identify alternatives, 4: Select best alternatives, 5: Create)
churn
The process of a customer switching between products or companies, often simply to get a better price, rebate, or warrenty.
moment of truth
A phrase popularized by Scandinavian Airlines System President Jan Carlzon in his popular 1987 book of the same name. it is defined as any instance when a customer comes into contacts with any element or representative of an organization.
contact points
Instances in which a customer connects with a service provider or some other aspect of an organization.
relationship-rating points
Values mentally assigned by customers to a service provider and his or her organization. They are based on a number of factors starting with initial impressions and subsequently by the quality and level of service provided.
relationship-rating point scale
The netal ratin gsystem that customers apply to service and service providers. Ratings range from exemplary to unsatisfactory, with average being assigned when service occurs as expected.
total quality management (TQM) and continuous quality improvement (CQI)
A systematic approach to identifying and quantifying best practices in an organization and/or industry in order to make improvements in effectiveness and efficiency.