RMG 200 Lecture Notes - Customer Relationship Management, Customer Retention, Customer Service

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Brent Barr

Document Summary

Ch 14: building customer loyalty: customer relationship management and service. Five customer service characteristics that customers use to evaluate service quality are: Reliability accuracy of billing, meeting promised delivery dates. Assurance (trust) guarantees and warranties, return policy. Empathy personalized service, receipts of notes and e-mails, recognition by name. Responsiveness returning calls and e-mails, giving prompt service. Customer relationship management (crm): a business philosophy and set of strategies, programs, and systems that focuses on identifying and building loyalty with a retailer"s most valued customers. Goal of crm is to develop a base of loyal customers who patronize the retailer frequently. Share of wallet: the percentage of total purchases made by a customer in a store. Study shows that it costs six times more to sell products and services to new customers than to existing customers and that small increased in customer retention can lead to dramatic increases in profits.