REC101 Lecture Notes - Lecture 8: Customer Satisfaction, Employee Retention

• School: University of Waterloo
• Department: Recreation and Leisure Studies
• Course: REC101
• Professor: Troy Glover

Document Summary

Main point: frontline workers and customer need to be the center of management concern (do reading , also look at diagram ) Service profit chain: 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. Find out why customers defect (why leaving, why not repeating) ! Not just where: customer satisfaction drives customer loyalty. Create apostles : customers so satisfied they convert others. Avoid saboteurs : customers so unhappy they speak out against your service. Symbolic atonement: every service might fail or do mistakes, they right thing is to fix it to get customer loyalty. E. g complaints, reports from employees: encourage customers and employees to report concerns, service value drives customer satisfaction. The results customers receive in relation to total cost.