The Significance of Customer Service and Building Relationships

Customer service notes, lecture 10 The Importance of Customer Service and Relationships A. The customer, who is the lifeblood of the company, is the one who decides what products and services to buy from a firm. Consumers are where the marketing process starts, progresses, and concludes. Customers or customers take a central position. (7th Edition of Marketing: An Introduction, 2005) A customer is an individual or business that purchases the goods or services Produced by a business. Two types: Business to Customer and Business to Business. The customer is the end goal of businesses since it is he customer who pays. Businesses often follow the adage, “The customer is always right “, because happy customers will continue to buy goods and services. Companies closely monitor the relationships that they have with their customers, eliciting feedback to see if new products should be created or adjustments be made to what is currently offered. (“Investopedia – Sharper) Insight. Smarter Investing,” 2017). Customer Relationship Management – overall process of building and maintaining profitable customer relationship by delivering superior value of the satisfaction received by the customer. It aims to produce high customer equity. The key to building strong, lasting relationships is the creation of superior customer value and satisfaction, which may be illustrated by the following: Dissatisfied Customer – poor product, goods, or service, below average performance, Shoddy workmanship, etc. Rude employees, bad service, Unfilled Promises. Delighted Customer – On-time delivery, etc., Performance exceeded expectations, going “the extra mile”, Pleasant buying experience. Lines of Business Lines of Business (LOB) refers to specific products and services offered by insurance companies to both individual and commercial clients. Major LOBs typically include Commercial Insurance, Health Insurance, Investment Management, Life Insurance, Property & Casualty Insurance, Reinsurance and Risk Management. The insurance agents and back-office staff members’ are responsible for pricing these products/services, generating new business and managing policyholder relationships. LOBs are supported by back-office staff members, who work to perform non-customerfacing tasks like claims processing, customer service support, payment collection, and policyholder onboarding. INSURANCE is a means to manage a contingent loss through which responsibility for a risk is transferred to another party in exchange for payment before the loss. The cost of insurance is based upon the insurance company's pooling of similar risks, occurrences that can be estimated using statistical modeling (actuarial analysis). An insurance company earns revenue from premiums, as well as the investment of those premiums in various financial instruments/markets. Insurance can be purchased by individuals for life, health, property and liability losses. Corporations purchase insurance to cover liability, property, business and executive health and life risks. Insurance can be purchased directly from a company, through "captive" agents working for a single firm or through independent insurance agents who sell products from multiple insurance providers. Relationship Marketing in Hospitality Industry – repeat guest, developing friendships with guests and making an extra effort to be sure that their expectations are met. Because of the wide range of hospitality choices available, it is essential for hospitality companies to build customer base. Today, making relationship marketing an important part of their operations. Relationship Development Strategies - Successful business doesn’t just communicate with prospects and customer for special ales. - Today, making your company indispensable is a vital key to marketing success. - Here are seven relationship- building strategies that will help you transform your company into a valuable resource: Communicate frequently Offer customer rewards Build two-way communication Enhance your customer service Visit the trenches