Marketing for Lawyers Measuring of clients satisfaction, strengthen client loyalty Lesson 3 •Eva Tomášková •eva.tomaskova@law.muni.cz Question lWhen are you satisfied with a product? Customer satisfaction lCustomer satisfaction measures how products and services supplied by a company meet or surpass customer expectation. l lThe implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty. Question lWhy is it necessary to have satisfied customers? Why is it necessary to have satisfied customers lcome back lsatisfied customers tend to loyalty customers llow price sensitivity linform other people about their positive experiences llow cost for hold current customers than to gain new customers lless complains of the current customers limportant information resource for management l Measuring of customer satisfaction lMeasuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. l lSatisfaction depends on: la number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. lother factors the customer, such as other products against which the customer can compare the organization's products. Measuring customer satisfaction la survey with a set of statements using a Likert Technique or scale l lcustomer is asked to evaluate each statement in terms of their perception and expectation of performance of the product being measured l lExample – statements for a company: lWe try to apply individual approach to customers. lWe offer a wide range of customer services. lWe regularly determine the degree of final customer satisfaction. lWe know what image our products have at customers. lWe implement the acquired information to our decisions. lWe offer products reflecting the latest demands and wishes of customers (distributors). lWe focus on gaining customers, for whom we can achieve a competitive advantage. lWe are faster in responding to the wishes of customers than our competitors. lWe respond as fast as possible to the marketing events of competitors. Dimensions of customer satisfaction lHere are a few of the possible dimensions for measurement: lquality of service lspeed of service lpricing lcomplaints or problems ltrust in employees lthe closeness of the relationship with contacts in the firm ltypes of other services needed lpositioning in clients' minds Task lPrepare Customer satisfaction questionnaire (use Likert scale) - questionnaire should be possible to use for clients of Lawyers l Methods of measuring 1 lSERVQUAL lprovides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. (Parasuraman et al. 1988) l lJ.D. Power and Associates ltop-box approach for automotive industry rankings lcustomers are divided into 2 groups – the best one and the rest l lA.T. Kearney's Customer Satisfaction Audit process lincorporates the Stages of Excellence framework and which helps define a company’s status against eight critically identified dimensions. A company should to respond on these questions: lWhat’s missing? lWhat’s misunderstood? lWhat could be done better? l Methods of measuring 2 lConsumer satisfaction matrix lCustomer satisfaction window l Consumer satisfaction matrix Consumer satisfaction matrix High Importace Medium Importance Low Importance High Satisfaction Medium Satisfaction Low Satisfaction Consumer satisfaction window l Task lChoose 1 product and prepare Consumer satisfaction matrix or Consumer satisfaction window l Question lDo you complain to the company if you do not satisfy? Why customers do not complain? lthey think that complain does not help them lit is difficult to complain lthey have the feeling that they put businessman to inconvenience lcompetitors offer more opportunities to solve their problem Disappointing experience lA single disappointing experience may not significantly reduce the strength of the business relationship if: lthe customer's overall perception of quality remains high, lswitching costs are high, lthere are few satisfactory alternatives, lif they are committed to the relationship, and lthere are bonds (contract, dependence, knowledge, technology etc.) keeping them in the relationship. 7 steps for customer satisfaction lPrefer Face-to-Face Dealings lcustomer finds easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email l lContact customers about news as soon as possible lIt is necessary to keeping customers informed and to respond to messages promptly l lBe Friendly and Approachable lkeep a clear head, respond to customers' wishes as best is it possible, and at all times is necessary remain polite l lHave a Clearly-Defined Customer Service Policy lclearly defined customer service policy is going to save a lot of time and effort in the long run l lAttention to Detail l(e.g. send a Happy Birthday email or card from a company) It shows the care about customers - the customers feel welcomed, wanted and valued l lAnticipate Customer's Needs lcustomer is heartily impressed, and remarks to his/her colleagues and friends l lHonour Promises lwhen somebody promise something, he/she should to deliver. The most common example here is project delivery dates Task lChoose 3 the most important top ways for lawyers to increase client satisfaction Customer loyalty 1 lquality of a product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability l lThe service quality model lcustomer satisfaction is first based on a recent experience of the product or service. lThis assessment depends on prior expectations of overall quality compared to the actual performance received. If the recent experience exceeds prior expectations, customer satisfaction is likely to be high. lCustomers are said to have a "zone of tolerance" corresponding to a range of service quality between "barely adequate" and "exceptional." Customer loyalty 2 lCustomer loyalty is determined by three factors: lrelationship strength (CRM) lperceived alternatives and lcritical episodes l lThreats: lthe customer moves away from the company's service area lthe customer no longer has a need for the company's products or services, lmore suitable alternative providers become available, lthe relationship strength has weakened, lthe company handles a critical episode poorly, lunexplainable change of price of the service provided 5 Ways to Build Customer Loyalty Rocklin Attorney Terry L. Gilbeau, The Law Offices of Terry L. Gilbeau lListen up lEven if you can’t meet their needs or don’t know the answer to their question, always listen. If they see you are actively listening they will know you care about them and value them as a customer. Simply listening to them has a big impact on loyalty. lProvide help lMost customers need help with something from time to time. This goes along with listening to them, but if you can, help them out with whatever it is that they need. They will always remember that you helped them, which shows you care. lLearn names lGet to know as many customers by name that you can, and then use the names. lGive something lWhether it’s a free product, service, a discount, or a customer appreciate day with free donuts, they will feel you care about them. lBe consistent lOne of the easiest ways to earn loyalty is to consistently give your customers what it is that they want. If they show up each week to buy a particular product and you stop carrying it, you may lose those customers. Advantage of customer loyalty lkeeping existing customers is less expensive than acquiring new ones: lThe cost of acquisition occurs only at the beginning of a relationship. lLong term customers tend to be less inclined to switch and tend to be less price sensitive. lLong term customers may initiate free word of mouth promotions. lIncreased customer satisfaction and loyalty makes the employees' jobs easier and more satisfying. Happy employees feed back into higher customer satisfaction. Task lAre you loyalty customer? lChoose one company which products you still prefer. Why? l l l lWhy is it necessary to have satisfied customers? lHow is it possible to measure of customer satisfaction? lWhy customers do not complain? Conclusion lPrepare some loyalty program for a law company. Task for next lesson