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REC 101 (45)
Lecture 8

Lecture #8 - Profit and Building Customer Loyalty Typed Filled in notes for lecture 8 - unit 1 Profit and Building Customer Loyalty - The prof gives lecture notes with blanks which needs to be filled during the lecture, I have provided a filled in lect

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Recreation and Leisure Studies
REC 101
Troy Glover

Profit and Building Customer Loyalty REC 101 October 4, 2010 Main point: frontline workers and customer need to be the center of management concern (do reading , also look at diagram ) Service Profit Chain 1. Customer loyalty drives profitability and growth  Customer loyalty is an important determinant of profit  A 5% increase in your customer loyalty can produce profit increases from 25% to 85%  Loyal customers provide all profits and cover losses incurred in dealing with less loyal customer  Three R’s: – Retention – Repeat sales – Referrals  Find out WHY customers defect (why leaving, why not repeating) ! Not just where 2. Customer satisfaction drives customer loyalty  Create “Apostles” o Customers so satisfied they convert others  Avoid “Saboteurs” o Customers so unhappy they speak out against your service  Symbolic atonement o Every service might fail or do mistakes, they right thing is to fix it to get customer loyalty. Try to atone for the mistake by giving something of value back to the customer ( its good if companies see it as an opportunity to get customer loyalty ) • Use “Listening Posts” o Tools for collecting data to improve servic
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