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Consultation Safekeeping Physical Processes Order Taking Core Hospitality 169。 Lovelock Associates Profits Generated by a Loyal Customer Industrial Distribution Services Source: Reichheld and Sasser $0 $50 $100 $150 $200 Annual Profit per Customer 1 2 3 4 5 Year of Patronage 169。fice Annuel par Client1 2 3 4 5Y e a r o f Pa tr o n a g eProfits Generated by a Loyal Customer: Car Maintenance and Repair Services Source: Reichheld and Sasser 169。 Lovelock Associates Are YOU loyal? If So, Why? Think of a small business, retail shop, or professional office that you have patronised for some time. Now, plete the following sentence: “ I stick with my… hairdresser/barber dry cleaner/laundry service garage accountant or dentist because ___________________________________” or “I left them for another provider, because....” 169。 Lovelock Associates Improving Value by Educating Employees and Customers to Be Better Performers ?Training employees improves productivity and quality ?Welltrained customers perform better in their relations with the supplier and get better use from the products they buy 169。 employees look unprofessional 169。 Lovelock Associates How Does Your Service Look? They Love Me! They Love Me Not! ? Do You Know What Your Customers Are Saying? 169。 Lovelock Associates Everything Will Bee a Service “ Technology changes us as producers。 Lovelock Associates Avoiding Service Quality Failures that Destroy Customer Loyalty ?Lack of reliabilityservice is undependable, inaccurate ?Lack of customer orientationno effort made to understand customer needs or treat people as individuals ?Poor municationsfailure to keep customers well informed and to use language they understand ?Inpetencemanagers and other staff lack skills and knowledge required to serve customers well ?Unresponsivenessemployees are slow, rude, unhelpful ?Poor appearancefacilities are dirty, poorly maintained。 Lovelock Associates 5 ? Success factors in servicedriven businesses ? Creating value for customers through service ? The Flower of Service: core and supplementary elements ? Customer loyalty creates value for the firm ? Some strategies to improve success 169。 Lovelock Associates Why Customers Are More Profitable over Time 1 2 3 4 5 6 7Y e a rPr o fi t fr o m p r i c ep r e m i u mPr o fi t fr o m r e fe r e n c e sPr o fi t fr o m r e d u c e do p . c o s tsPr o fi t fr o m i n c r e a s e du s a g eB a s e Pr o fi tSource: Reichheld and Sasser 169。 Lovelock Associates $0$10$20$30$40$50$60$70$80$90B233。 Lovelock Associates 4 ? Success factors in servicedriven businesses ? Creating value for customers through service ? The Flower of Service: core and supplementary elements ? Customer loyalty creates value for the firm ? Some strategies to improve success 169。 Lovelock Associates Safekeeping: Examples of Supplementary Services for Manufact