Part Two.
The other part of the customer satisfaction equation is the customers' perception of results. For fat too long, institutions have had a narrow focus in this area. Attention has been given to 'checking' customer perceptions instead of trying to 'shape' it. The focus has been on asking 'how are we doing?' Instead, making customers see what the institution has been (doing) and is doing for them, will yield better results. Research shows on average customers defect to competitors simply because they have failed to perceive the value received from their current institution. What this means to institutions is to manage expectations better, they should make it a priority to ensure their customers are aware of everything being done fro them. Institutions should not assume that customers will automatically make the perceived value connection.
A bank in Montreal tested out this conclusion by instruction its staff to inform all customers who came into their bank about 'all' the services and products the bank had on offer. Result? The bank experienced an 18 percent increase in sales during the first month of the programme. Institutions typically make the mistake of not making it a routine to communicate with exciting customers about their product offerings. For any number of reasons a customer may have initially declined a product or service at the time of opening their account. Failing to communicate product and service offerings after the account is opened can lead to customer's using a competitor for a product or service available at the institution. The value of spaced repetition to existing customers on the bank's offerings cannot be overemphasized.
A few words on loyalty are necessary especially since it is defined in different ways. Some consider customer retention or just continuing to bank with them as enough evidence of customer loyalty . Several banks in the Gulf offer better rates to customers based on the length of time the account has remained with them. Other consider a repurchase as an indicator of customer loyalty.
To be continued................
The other part of the customer satisfaction equation is the customers' perception of results. For fat too long, institutions have had a narrow focus in this area. Attention has been given to 'checking' customer perceptions instead of trying to 'shape' it. The focus has been on asking 'how are we doing?' Instead, making customers see what the institution has been (doing) and is doing for them, will yield better results. Research shows on average customers defect to competitors simply because they have failed to perceive the value received from their current institution. What this means to institutions is to manage expectations better, they should make it a priority to ensure their customers are aware of everything being done fro them. Institutions should not assume that customers will automatically make the perceived value connection.
A bank in Montreal tested out this conclusion by instruction its staff to inform all customers who came into their bank about 'all' the services and products the bank had on offer. Result? The bank experienced an 18 percent increase in sales during the first month of the programme. Institutions typically make the mistake of not making it a routine to communicate with exciting customers about their product offerings. For any number of reasons a customer may have initially declined a product or service at the time of opening their account. Failing to communicate product and service offerings after the account is opened can lead to customer's using a competitor for a product or service available at the institution. The value of spaced repetition to existing customers on the bank's offerings cannot be overemphasized.
A few words on loyalty are necessary especially since it is defined in different ways. Some consider customer retention or just continuing to bank with them as enough evidence of customer loyalty . Several banks in the Gulf offer better rates to customers based on the length of time the account has remained with them. Other consider a repurchase as an indicator of customer loyalty.
To be continued................
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