Chapter 14 Customer Relationship Marketing QUESTIONS AND ANSWERS TO END-OF CHAPTER MATERIAL Hands-on…apply your knowledge Online CEM Assignment Visit the OpenText website at www.opentext.com/customer-stories. Review another customer success story and put into your own words how an OpenText customer experience management solution helped the company. Answer: One example from OpenText’s customer stories is how the company helped a global healthcare provider enhance patient engagement and streamline its operations. By implementing OpenText's Customer Experience Management solutions, the provider improved patient communication through personalized digital channels, resulting in faster response times and better patient satisfaction. The solution also integrated data from various sources, enabling more efficient and informed decision-making, which ultimately enhanced the overall healthcare experience. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. Video Clip … questions Anne Mulcahy, former chairman and CEO of Xerox Corporation, helped Xerox shift to a consultative selling model when she became CEO in 2001. While watching the CONNECT video, consider these questions that concern customer relationships: - What are the six stages of building customer relationships at Xerox? How do they align with the strategies outlined in this chapter? Answer: In the CONNECT video, Anne Mulcahy outlines six stages of building customer relationships at Xerox: 1. Understanding Customer Needs 2. Building Trust 3. Providing Solutions 4. Delivering Value 5. Fostering Loyalty 6. Maintaining Engagement These stages align with the strategies of customer relationship management (CRM) by focusing on understanding and addressing customer needs, building trust through value delivery, and fostering long-term loyalty and engagement, ensuring a consultative and customer-centric approach. - Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth? Answer: Anne Mulcahy’s experience as a sales representative was crucial for Xerox's growth because it provided her with deep insights into customer needs and the sales process. This hands-on experience helped her implement a consultative selling model, focusing on solutions and building long-term relationships rather than just selling products. Her understanding of frontline challenges and customer interactions drove Xerox’s shift towards a more customer-centric approach, enhancing the company’s overall effectiveness and growth. - Why is the Xerox training program so important to the company’s success? Answer: The Xerox training program is crucial to the company's success because it equips employees with the skills needed to implement the consultative selling approach, ensuring a consistent and high-quality customer experience. This training fosters deep product knowledge and customer relationship management, enabling sales representatives to offer tailored solutions that meet clients' specific needs. By emphasizing ongoing development and adaptability, the program helps maintain Xerox’s competitive edge and supports its commitment to long-term client satisfaction. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers, but the key to understanding the question is Anne’s knowledge of the customer. By being able to understand how to attract and retain customers, Anne was able to build an organization aligned with those goals in mind. Infographic … data analysis According to a 2013 whitepaper by Maritz Canada, almost one in four Canadians avoid loyalty programs because of privacy issues. The irony is that more Canadians are expecting personalized communications, and collecting personal information is necessary for marketers to customize their messages. What is interesting is that the majority of Canadians are not letting privacy concerns act as barriers to their loyalty programs. Review the Infographic in this chapter on privacy risks and offer your thoughts about what loyalty marketers can do to address these issues. Answer: Loyalty marketers can address privacy concerns by ensuring transparency about data collection and usage practices, giving customers control over their personal information, and implementing robust security measures. Offering clear opt-in and opt-out options, alongside providing value through personalized experiences, can help build trust and reduce privacy-related apprehensions. Ensuring that data handling complies with regulations and emphasizing data protection can further reassure customers while enhancing loyalty program engagement. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: APPLYING MARKETING CONCEPTS AND PERSPECTIVES 1. Suppose someone tells you that CRM is only about information technology and database systems. What would you say to correct this half-truth? Answer: CRM focuses on using information about customers to create marketing programs that result in customer satisfaction. The heart of a CRM program is information technology and database systems. However, for CRM to be successful, there must be attitude changes in the organization. CRM databases allow companies to get closer to their customers to establish a mutually beneficial relationship. A company’s failure with CRM is often a result of approaching CRM as a software project rather than an overall company strategy. A company may spend millions of dollars on software, but doesn’t bother changing the cultural attitudes of the organization. This results in CRM failure. A company may be looking for a quick fix for its problems. For example, if a company has poor customer service, and is looking at for a CRM program to fix it, no amount of CRM software by itself will solve the problem. CRM requires a top-down long run commitment by management. The cultural attitudes of the organization must change internally to what is called a CRM culture if the company is really interested in instituting positive customer service. Management must learn to “walk the talk”. 2. Make a list of the loyalty programs you belong to. Which ones do you like the best? Give reasons for your answer. Answer: 1. Starbucks Rewards - I like it for its easy-to-use app, personalized offers, and free birthday drinks. 2. Amazon Prime - Valued for its fast shipping, exclusive deals, and streaming services. 3. Delta SkyMiles - Appreciated for its flexibility in earning and redeeming miles and additional perks like priority boarding. 4. Sephora Beauty Insider - Favored for its tiered rewards, frequent discounts, and early access to new products. 3. Give an example of a bad customer service situation that you encountered. Did you stop buying from the company? Why or why not? Answer: I once experienced poor customer service when a retailer mishandled a refund request and provided no follow-up. I didn't stop buying from the company immediately, as their products were good, but I did significantly reduce my purchases and switched to more reliable alternatives for customer service. The lack of resolution and communication left a lasting negative impression. 4. Explain the relationship of Pareto’s Rule to loyalty programs. Answer: According to Pareto’s Rule, 80% of a brand’s sales come from 20% of its customers. The implication here is to take special care of the 20% by offering them better loyalty program rewards than the remaining 80%. 5. Witness the power of CRM and social media: Go to Twitter and enter the name of a company, such as Dell or Wal-Mart, in the search box. See what consumers are saying about these companies. Are the comments positive, negative, or both? Answer: On Twitter, searching for a company like Dell or Wal-Mart reveals a mix of comments. You’ll find both positive feedback praising product features and customer service, as well as negative comments highlighting issues like poor service or product problems. This duality underscores the importance of CRM in managing and responding to customer sentiment effectively. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: DISCUSSION FORUM Assume that you are employed in a company and your boss is thinking about creating a CRM program for the company. You have been given the assignment to summarize for your boss the reasons why it is a good idea. Look back at the concepts explained in the chapter for your answer. Answer: Implementing a CRM program is beneficial as it enhances customer relationships by centralizing data, enabling personalized interactions, and improving service efficiency. It helps in tracking customer interactions, identifying sales opportunities, and increasing customer satisfaction through tailored communications. Additionally, CRM systems facilitate better data analysis for strategic decision-making, ultimately driving revenue growth and customer loyalty. Note: These discussions are meant to generate class discussion and a lively debate of issues raised, as well as a general review of the opening case or concepts discussed within the chapter. There are no correct or incorrect answers. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: ANSWERS TO INTERNET EXERCISE Customer Think is a website whose mission it is to help businesses develop and implement CRM strategies. The site which can be found at www.customerthink.com consists of high quality articles, blogs and discussion. Your assignment is to go to the site and type the words “customer lifetime value” in the search box. Hit enter and you will receive many links to articles on customer lifetime value. Choose one article that looks interesting and summarize it in your own words. Do the same exercise for customer service and summarize an article on customer service as well. Answer: Customer Lifetime Value: The chosen article explains that Customer Lifetime Value (CLV) measures the total revenue a business can expect from a customer throughout their relationship. It emphasizes the importance of CLV in making informed marketing and retention decisions, allowing companies to prioritize high-value customers and tailor their strategies to maximize long-term profitability. Customer Service: The selected article on customer service highlights that exceptional service is crucial for customer retention and brand loyalty. It stresses the role of responsive, personalized support in creating positive customer experiences and discusses strategies for training staff, utilizing technology, and measuring service effectiveness to enhance overall satisfaction. Note: There are no correct or incorrect answers to this assignment. The assignment is to see how well a student can summarize in a clear and concise way the essence of an article on the subject. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING Synopsis This video explains the Xerox personal selling process and its customer acquisition and retention strategy. Weaved within the video are touchpoints of the organization that help put the customer in the centre. Teaching Suggestion When the class is viewing the video, ask them to jot down aspects of Xerox not shown in the video that could help enhance the customer experience. This will help highlight the importance of touchpoints and culture in Customer Relationship Marketing. BRING IT TO LIFE: VIDEO CASE – PRINTOUT XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING “I’m like the quarterback of the team. I manage 250 accounts, and anything from billing issues, to service issues, to selling the products. I’m really the face to the customer,” says Alison Capossela, Xerox sales representative. As the primary company contact for Xerox customers, Alison is responsible for developing and maintaining customer relationships. To accomplish this she uses a sophisticated selling process which ¬requires many activities from making presentations, to -attending training sessions, to managing a team of Xerox personnel, to monitoring competitors’ activities. The face-to-face interactions with customers, however, are the most rewarding for Capossela. “It’s an amazing feeling; the more they challenge me the more I fight back. It’s fun!” she explains. THE COMPANY Xerox Corporation’s mission is to “help people find better ways to do great work by constantly leading in document technologies, products, and services that improve customers’ work processes and business results.” To accomplish this mission Xerox employs 136,500 people in 160 countries. Xerox is the world’s leading document management enterprise and a Fortune 500 company. Xerox offers a wide range of products and services. These include printers, copiers and fax machines, multifunction and network devices, high-speed color presses, digital imaging and archiving products and services, and supplies such as toner, paper, and ink. The entire company is guided by customer-focused and employee-centered core values (e.g., “We succeed through satisfied customers”) and a passion for innovation, speed, and adaptability. In 2001, Anne M. Mulcahy was named CEO of Xerox Corporation and became chairperson of the board in 2002. Mulcahy began her career as a sales representative at Xerox. She brought her experience as a sales rep to her position in senior management. In particular, she focused on reenergizing the Xerox sales organization with a focus on customer relationships. “We started winning when we listened to customers,” Mulcahy says. “We did that by providing greater value than our competitors—and that meant selling the way customers want to buy.” She adds, “Doing what’s right for the customer—that’s our guiding principle.” As Kevin Warren, vice president of sales, explains: “One of the reasons she was so successful is that she absolutely resonated with all the people. I think [because of] the fact that she started out as a sales rep, people felt like she was one of them.” THE SELLING PROCESS AT XEROX When Mulcahy became CEO, Xerox began a shift to a consultative selling model that focused on helping customers solve their business problems rather than just placing more equipment in their office. The shift meant that sales reps needed to be less product-oriented and more relationship- and value-oriented. Xerox wanted to be a provider of total solutions. Today, Xerox has more than 8,000 sales professionals throughout the world who spend a large amount of their day developing customer relationships. Capossela explains: “Fifty percent of my day is spent with my customers, 25 percent is following up with phone calls or e-mails, and another 25 percent involves preparing proposals.” The approach has helped Xerox attract new customers and keep existing customers. The sales process at Xerox typically follows the six stages of the personal selling process is as follows: (1) Xerox identifies potential clients through responses to advertising, referrals, and telephone calls; (2) the salesforce prepares for a presentation by familiarizing themselves with the potential client and its document needs; (3) a Xerox sales representative approaches the prospect and suggests a meeting and presentation; (4) as the presentation begins, the salesperson summarizes relevant information about potential solutions Xerox can offer, states what he or she hopes to get out of the meeting, explains how the products and services work, and reinforces the benefits of working with Xerox; (5) the salesperson engages in an action close (gets a signed ¬document or a firm confirmation of the sale); and then (6) continues to meet and communicate with the client to provide assistance and monitor the effectiveness of the installed solution. Xerox sales representatives also use the selling process to maintain relationships with existing customers. In today’s competitive environment it is not unusual to have customers who have been approached by competitors or who are required to obtain more than one bid before renewing a contract. Xerox has teams of people who collect and analyze information about competitors and their products. The information is sent out to sales reps or offered to them through workshops and seminars. The most difficult competitors are the ones that have also invested in customer relationships. The selling process allows Xerox to continually react and ¬respond to new information and take advantage of opportunities in the marketplace. TRAINING AT XEROX Perhaps the most well-known component of Xerox’s sales management process is its sales representative training program. For example, Xerox developed the “Create and Win” program to help sales reps learn the new consultative selling approach. The components of the program consisted of interactive training sessions and distance-learning webinars. Every new sales representative at Xerox receives eight weeks of training development in the field and at the Xerox Corporate University in Virginia. “The training program is phenomenal!” according to Capossela. The training and its focus on the customer is part of the Xerox culture outside of the sales organization also. Every senior executive at Xerox is responsible for working with at least one customer. They also spend a full day every month responding to incoming customer calls and inquiries. Questions 1. What are the six stages of building customer relationships at Xerox? How do they align with the strategies outlined in this chapter? Answer: Six Stages of Building Customer Relationships at Xerox: • Identify Needs: Understanding customer requirements. • Build Trust: Establishing reliability and credibility. • Offer Solutions: Proposing tailored solutions. • Provide Support: Ensuring continued assistance. • Enhance Value: Improving the customer's experience. • Seek Feedback: Gathering insights for improvement. These stages align with consultative selling strategies by focusing on understanding and addressing customer needs, fostering trust, and maintaining long-term relationships. 2. Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth? Answer: Anne Mulcahy’s Experience: Anne Mulcahy's experience as a sales representative was crucial as it gave her firsthand insight into customer needs and the sales process. This understanding helped her implement effective strategies for growth and transformation at Xerox, including the shift to consultative selling. 3. Why is the Xerox training program so important to the company’s success? Answer: Importance of the Xerox Training Program: The Xerox training program is vital for the company's success because it equips sales representatives with essential skills and knowledge, ensuring a consistent approach to customer relationship management. It fosters a customer-centric culture and enhances sales effectiveness, contributing to overall business growth. BRING IT TO LIFE: VIDEO CASE WORKSHEET XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING Name: Section: This video looks at CRM at Xerox. Please answer the following questions once you have watched the video and read the case: 1. What are the six stages of building customer relationships at Xerox? How do they align with the strategies outlined in this chapter? Answer: Six Stages of Building Customer Relationships at Xerox: • Identify Needs • Build Trust • Offer Solutions • Provide Support • Enhance Value • Seek Feedback These stages align with CRM strategies by emphasizing a thorough understanding of customer needs, fostering trust, delivering tailored solutions, and continuously improving based on feedback. 2. Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth? Answer: Anne Mulcahy’s Experience: Mulcahy’s experience was crucial as it provided her with a deep understanding of the sales process and customer needs, which guided her successful implementation of a consultative selling approach that transformed Xerox’s business. 3. Why is the Xerox training program so important to the company’s success? Answer: Importance of the Xerox Training Program: The training program is essential as it standardizes and enhances the skills of sales representatives, instills a customer-focused approach, and integrates company-wide CRM strategies, driving overall business success and improving customer interactions. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS XEROX: BUILDING CUSTOMER RELATIONSHIPS THROUGH PERSONAL SELLING 1. What are the six stages of building customer relationships at Xerox? How do they align with the strategies outlined in this chapter? Answer: The six stages of building customer relationships at Xerox include prospecting, pre-approach, approach, presentation, close and follow up. They align with customer acquisition and retention highlighted in this chapter. Moreover, Anne Mulcahy’s belief that the integration of Xerox’s people, world-class technology and services allows for the full solutions to customers. In essence, she is highlighting the various touchpoints in Customer Relationship Management. 2. Why was Anne Mulcahy’s experience as a sales representative an important part of Xerox’s growth? Answer: Anne’s experience as a salesperson allows her to show by example the importance of placing customers first. She makes customer visits a priority by personally visiting them. This provides more accountability to her sales team to follow her lead. 3. Why is the Xerox training program so important to the company’s success? Answer: The Xerox training program allows new employees and sales representatives to understand the organization’s focus on the customer. It helps align the overall customer experience ensuring that all touchpoints put the customer in the centre. BRING IT TO LIFE: NEWSFLASHES SYNOPSIS AND DISCUSSION QUESTIONS Two interesting NewsFlashes are included in this chapter. Discussing these NewsFlashes in class can bring the material to life for the students in an interesting, relevant, and timely fashion. They can be used as ice-breakers to launch into a relevant subject. Many of the topics are interesting to students and may be familiar. A. TARGETING SATISFACTION Target focuses on customer satisfaction summarized well by its tagline: “Our promise is simple: Expect More. Pay Less.®” It aims to create an environment in which team members and guests have an experience that exceeds their expectations. Part of the appeal of Target is that it partners with chic designer fashions and promotes their fashions at a reasonable price. This strategy led to a relatively high customer satisfaction index among its American customers and opportunities for further expansion into Canada. Questions 1. Describe the attributes of a Canadian retailer that provides excellent customer service? Answer: Attributes of a Canadian Retailer with Excellent Customer Service: • Personalized Service: Attentive and tailored interactions based on individual customer needs. • Responsive Support: Quick resolution of issues and inquiries. • Friendly Atmosphere: Welcoming and courteous staff creating a positive shopping environment. • Consistency: Reliable service and quality across all locations. 2. How do customer expectations affect customer relationship management? Answer: Impact of Customer Expectations on CRM: Customer expectations drive CRM strategies to focus on personalization, timely responses, and tailored solutions. Meeting or exceeding these expectations helps build stronger relationships, enhances satisfaction, and fosters loyalty. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. B. THE BATTLE FOR AEROPLAN Loyalty cards are normally associated with rewards. In the fall of 2011, Groupe Aeroplan underwent a change. It began conducting business under a new brand name, Aimia. Aeroplan is the consumer-facing brand in Canada that allows travellers to collect points for travel rewards with Air Canada and its strategic alliances. Owned by Aimia, Aeroplan is considered Canada’s premier coalition loyalty program since it has over 75 world-class partners and represents over 150 brands in the retail, travel, and financial industries. Although the 20-year-plus partnership between Aeroplan and CIBC has been a successful one, Aeroplan recently had another suitor. In 2013, TD Bank entered into the Aeroplan loyalty business by becoming the primary credit card issuer for the Aeroplan loyalty rewards program. Questions 1. In terms of customer loyalty, why do you believe TD was so interested in becoming an Aeroplan partner? Answer: TD's Interest in Aeroplan Partnership: TD was likely interested in partnering with Aeroplan to tap into a large, loyal customer base, enhance its credit card offerings, and leverage Aeroplan’s brand reputation to drive more card sign-ups and usage. 2. What benefits does Aeroplan gain by expanding its partners in the financial services sector? Answer: Benefits for Aeroplan Expanding Financial Partners: Expanding its financial sector partnerships increases Aeroplan's reach and appeal, enhances the program's value through diverse financial products, and drives higher engagement and loyalty from cardholders, boosting overall program success. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: TARGETING SATISFACTION Target focuses on customer satisfaction summarized well by its tagline: “Our promise is simple: Expect More. Pay Less.®” It aims to create an environment in which team members and guests have an experience that exceeds their expectations. Part of the appeal of Target is that it partners with chic designer fashions and promotes their fashions at a reasonable price. This strategy led to a relatively high customer satisfaction index among its American customers and opportunities for further expansion into Canada. When Target opened its first stores in Canada in 2013, it got off to a slow start with respect to customer satisfaction. By starting with 17 stores and with plans to expand to 124 stores, Target planned to bring the same customer experience it had in the United States to Canada. Shortly after its expansion, however, a Forum Research survey found that less than three out of ten consumers said they were “very satisfied” with Target. The main concerns of Canadian consumers included low inventory and high prices. Unfortunately, the touch points in the United States that attracted Canadians to the brand were not identical in the Canadian stores. The media companies that reported the findings also received feedback from their readers through social media. These comments offered a balanced view, yet commenters were split on their perspectives of Target. The concerns from shoppers drove Target to the bottom of the Forum Research survey list among major retailers in Canada. With Costco Canada leading the pack and Target’s main competitor Walmart Canada clearly improving, Target has a lot of opportunity for growth and is confident that its core customers will continue showing their loyalty. Questions 1. Describe the attributes of a Canadian retailer that provides excellent customer service? Answer: Attributes of Canadian Retailers with Excellent Customer Service: They offer high-quality, personalized service, maintain a well-managed inventory, ensure competitive pricing, and foster a welcoming shopping environment. 2. How do customer expectations affect customer relationship management? Answer: Impact of Customer Expectations on CRM: Customer expectations drive CRM strategies by necessitating tailored, responsive interactions and continuous improvements in service to enhance satisfaction and loyalty. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: THE BATTLE FOR AEROPLAN Loyalty cards are normally associated with rewards. In the fall of 2011, Groupe Aeroplan underwent a change. It began conducting business under a new brand name, Aimia. Aeroplan is the consumer-facing brand in Canada that allows travellers to collect points for travel rewards with Air Canada and its strategic alliances. Owned by Aimia, Aeroplan is considered Canada’s premier coalition loyalty program since it has over 75 world-class partners and represents over 150 brands in the retail, travel, and financial industries. Having celebrated its 30th anniversary in July 2014, Aeroplan has more than 4.6 million active members, making it a sought-after partner in a variety of industries. Well-known Canadian companies such as Esso, Home Hardware, and Sobeys were added as partners in 2005. In the financial services industry, Aeroplan partnered with American Express® and CIBC to offer rewards credit cards. Aeroplan’s relationship with CIBC began in 1991 when Aeroplan and CIBC partnered to launch the CIBC Aerogold® VISA Card, considered one of the most popular credit cards in Canada. Although the 20-year-plus partnership has been a successful one, Aeroplan recently had another suitor. In 2013, TD Bank entered into the Aeroplan loyalty business by becoming the primary credit card issuer for the Aeroplan loyalty rewards program. For a few months, this caused friction between all parties involved. Fortunately, a few months later, TD Bank Group and Canadian Imperial Bank of Commerce were able to reach an agreement. With half of the Aeroplan card portfolio shifting from CIBC to TD, it seemed like a negative situation for CIBC. Over 550,000 cardholder accounts were changing banks. As compensation for this change, CIBC received over $312.5 million from TD and Aimia, with Aimia paying $150 million of that figure. For CIBC, transferring loyalty cards had its rewards. Questions 1. In terms of customer loyalty, why do you believe TD was so interested in becoming an Aeroplan partner? Answer: TD's Interest in Aeroplan Partnership: TD was interested in the Aeroplan partnership to tap into a large, loyal customer base and boost their credit card offerings by leveraging Aeroplan’s extensive rewards program. 2. What benefits does Aeroplan gain by expanding its partners in the financial services sector? Answer: Benefits for Aeroplan: Expanding partners in the financial services sector enhances Aeroplan's reach, increases cardholder engagement, and diversifies its revenue streams through multiple financial institutions. BRING IT TO LIFE: IN-CLASS ACTIVITY CUSTOMER SERVICE TECHNIQUES – INSTRUCTIONS Learning Objective To have students learn and apply customer service techniques to aid in communication. Description of In-Class Activity •Have students look at interactions between a customer and a staff person and analyze what is wrong and suggest alternatives. •This activity can be successfully conducted individually or in groups. Estimated class time: 30 minutes. Preparation before Class •To prepare for this activity, review the section in chapter 13 called ‘CRM Entails Cultural Changes’. Customer relationship management entails building and maintaining profitable customer relationships. One aspect of CRM is to provide good customer service. Employees must learn customer service skills to be able to deal with customers in a way that ensures a positive customer service experience. This can be problematic with difficult customers. Also, employees have to learn techniques that allow them to interact with a consumer in a professional manner, as opposed to becoming defensive. •Go over the handout to become comfortable with the right and wrong ways of interacting with consumers. Take a look at the worksheet which is the assignment for the students. In-Class Implementation •Relevant Chapter Content – Prior to conducting this in-class activity, review the following with your students: ○ Explain the importance of the customer service component of CRM. One aspect of customer service is to be able to deal with customers in a way that ensures a positive customer service experience. This can be problematic with difficult customers. Also employees have to learn techniques that allow them to interact with a consumer in a professional manner as opposed to becoming defensive. Hand out copies of the handout to students. Go over the handout with the students so that they are comfortable with the right and wrong ways of interacting with consumers. •In-Class Instructions – Hand out copies of the worksheet; have students answer the questions. •Handout – Distribute the worksheet for students to complete. Have a student volunteer to answer the two questions per interaction. The first question is “Why wouldn’t you say this to a customer?”, and the second question is “How would you rephrase this response?” Get student responses for each of the five interactions. •Evaluation – Collect the worksheets from this activity for evaluation purposes. Suggested answers to this activity are provided below: 1. Customer: “Can you put this sweater on hold for me?” Staff: “I can only hold it until closing.” Why wouldn’t you say this to a customer? Answer: It glaringly points out the fact that there is a pre-condition. It sounds negative. How would you rephrase the response? Answer: I would be glad to hold the sweater until closing. 2. Customer: “Why haven’t I received my refund?” Staff: “Because you filled in the form all wrong.” Why wouldn’t you say this to a customer? Answer: You are putting the customer on the defensive. How would you rephrase the response? Answer: There are areas on this form that we should look at before we issue a refund. 3. Customer: “Are there any more of these forms?” Staff: “I don’t think so.” Why wouldn’t you say this to a customer? Answer: The staff person is not taking responsibility. How would you rephrase the response? Answer: I’m not sure if there are more forms, but I will check for you. 4. Customer: “I’m not sure where to submit these forms.” Staff: “Here. Look it up yourself.” Why wouldn’t you say this to a customer? Answer: The staff person is giving the customer an order and not taking responsibility. How would you rephrase the response? Answer: Let me help you find out where to submit these forms. 5. Customer: “Why do I need to give you I.D.? I’ve been banking here for years.” Staff: “It’s bank policy.” Why wouldn’t you say this to a customer? Answer: A customer does not want to hear the words bank policy or company policy. Try to explain to the customer how the policy benefits the customer. How would you rephrase the response? Answer: We ask for I.D. for your protection, so someone else cannot get into your files. BRING IT TO LIFE: IN-CLASS ACTIVITY CUSTOMER SERVICE TECHNIQUES – HANDOUT Keep It Impersonal Wrong: You didn’t do this right. Right: There are a few areas on this form that we need to complete. Use “I” Instead of “You” Wrong: You’re wrong. Right: I can see there’s been a miscommunication. Wrong: You’re confusing me. Right: I’m confused. Avoid Causing Defensiveness Wrong: You never do it right. Right: This is often not done correctly. Wrong: You filled this out okay, but……. Right: You filled this out well, and……. Wrong: What’s your problem? Right: Please tell me what happened. Avoid Giving Orders Wrong: You have to …….. Right: Will you………please! Wrong: You should have done it this way. Right: We want your next visit to go as smoothly as possible. This will assist you. Wrong: Wait here. Right: Would you mind waiting while I talk to my supervisor? Take Responsibility Wrong: I can’t. Right: I don’t have the authority. However, Margo should be able to help you. Let me get her. Wrong: It’s not my job. Right: Let me see what I can do to help. John is the specialist in that area. Let me get him for you. BRING IT TO LIFE: IN-CLASS ACTIVITY CUSTOMER SERVICE TECHNIQUES – WORKSHEET Name: Section: 1. Customer: “Can you put this sweater on hold for me”? Staff: “I can only hold it until closing”. Why wouldn’t you say this to a customer? Answer: Why not say this: Telling a customer that an item can only be held until closing limits their options and may come across as unhelpful or rigid. How would you rephrase the response? Answer: Rephrased Response: "I'd be happy to hold this sweater for you. Could you let me know when you'd like to pick it up? I’ll make sure it's set aside until then." 2. Customer: “Why haven’t I received my refund”? Staff: “Because you filled in the form all wrong”. Why wouldn’t you say this to a customer? Answer: Why not say this: Blaming the customer for a mistake can come off as accusatory and unhelpful, worsening their frustration. How would you rephrase the response? Answer: Rephrased Response: "I’m sorry for the delay. Let me review the form and assist you in correcting any issues so we can process your refund as quickly as possible." 3. Customer: “Are there any more of these forms”? Staff: “I don’t think so”. Why wouldn’t you say this to a customer? Answer: Why not say this: Saying "I don’t think so" is vague and unhelpful, which can leave the customer feeling uncertain. How would you rephrase the response? Answer: Rephrased Response: "I’ll check our stock and confirm whether we have any more forms available. Please hold on for a moment." 4. Customer: “I’m not sure where to submit these forms”. Staff: “Here. Look it up yourself”. Why wouldn’t you say this to a customer? Answer: Why not say this: Telling the customer to "look it up yourself" is dismissive and unhelpful, which can create frustration and a negative experience. How would you rephrase the response? Answer: Rephrased Response: "Let me show you where to submit these forms. I’ll guide you through the process." 5. Customer: “Why do I need to give you I.D.? I’ve been banking here for years”. Staff: “It’s bank policy”. Why wouldn’t you say this to a customer? Answer: Why not say this: Responding with "It’s bank policy" is impersonal and does not address the customer's concerns or explain the importance of the procedure. How would you rephrase the response? Answer: Rephrased Response: "We ask for ID to ensure your account's security and protect against fraud. I can assist you with the process if you need any help." Solution Manual for Marketing: The Core Roger A. Kerin, Steven W. Hartley, William Rudelius, Christina Clements, Harvey Skolnick, Arsenio Bonifacio 9781259030703, 9781259269264, 9781259107108
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