customer satisfaction that is, the feeling that a product or service has met the customer expectation."
https://www.youtube.com/watch?v=bTbH wnxCGaI For every customer complaint, there are 26 other customers who have remained silent Source: Lee Resource Inc
It takes 12 positive service experiences to make up for one negative experience Source: Understanding Customers by Ruby Newell-Legner
Happy customers who get their issue resolved tell about 4 to 6 people about their experience. Source: White House Office of Consumer Affairs, Washington, DC
Personal Service Industries Intangible purchases Experiences Examples: business and personal Temp Agencies Dry Cleaning Tax Preparation Hair/Nail services Landscaping Gyms
No customers, no businessno business, no profit! Service industry businesses sustain through the satisfaction of their customers The top three drivers for investing in customer experience management are: 1. Improve customer retention (42 %) 2. Improve customer satisfaction (33 %) 3. Increase cross-selling and up-selling (32 %) Source: Aberdeen report Customer Experience Management: Engaging Loyal Customers to Evangelize Your Brand
It is important to not only gain new customers, but to retain them
Profitability of customer retention higher profit margins
Do customers switch service providers to avoid having to be open and honest about bad situations? 1. What factors affect a consumers desire to be open and honest after a negative experience? H01: The perception of intimacy a consumer has with his/her service provider has no effect or a negative effect on their willingness to be open after a negative service experience
HA1: A consumer who has an intimate relationship with his/her service provider has is more likely to be open after a negative service experience.
2. What factors affect the perception consumers have about their relationship with their service provider?
H02: The frequency in which a consumer receives a service has no effect or a negative effect on the perception of intimacy he/she has with their service provider.
HA2: Consumers who receive a service frequently are more likely to develop a perception of intimacy with their service provider. 3. What are the driving forces of a consumer giving feedback? H03: The perception that a consumer has about a service being a reflection of who they are has no effect or a negative effect on their willingness to complain after a bad service experience.
HA3: Consumer who feel a service is a reflection of who they are, are more likely to complain after a bad service experience.
H04: Customers satisfaction with a service has no effect or negative effect on their openness with his/her service provider.
HA4: Customers satisfaction with a service has a positive effect with their openness with his/her service provider
4. What factors impact how a consumer reacts to a negative service experience?
H05: The perception a consumer has that a service provider does not want to know their opinion has no effect or a negative effect on their willingness to switch service providers after a bad experience.
HA5: When consumers feel their service provider do not want to know their opinions, they are more likely to switch service providers after a bad experience.
Survey 10 questions 25 respondents Sent via GoogleDocs
In-depth Interviews 10 questions 5 stylists
Driving forces of customer retention Reasons behind switching service providers
Age range 24-50
8 Males and 17 females
Atlanta area
The average number of repeat customers was 82% All of the respondents would fix right away and the customer was likely to return 3 respondents salons had standard recovery plans Additional service/reimbursement Week Adjustment Policy Free service by higher level stylist When asked about a difficult experience with a client, most respondents mentioned miscommunication or lack of shared opinions All respondents mentioned when both parties worked together to achieve a style, the satisfaction rate was higher 4 out 5 respondents management encouraged personal relationships with their clients Linear Regression Chi Square Content Analysis Proportions Summary Statistics
H01: The perception of intimacy a consumer has with his/her service provider has no effect or a negative effect on their willingness to be open after a negative service experience.
HA1: A consumer who has an intimate relationship with his/her service provider is more likely to be open after a negative service experience.
Linear Regression Regression Statistics R 0.40228 R Square 0.16183 Adjusted R Square 0.15709 S 1.73501 Total number of observations 179 open = 3.5719 + 0.4379 * intimate
ANOVA d.f. SS MS F p-level Regression 1. 102.87094 102.87094 34.17343 0. Residual 177. 532.81621 3.01026 Total 178. 635.68715
Coefficients Standard Error t Stat p-level H0 (5%) rejected? Intercept 3.57192 0.23944 14.91749 0.E+0 Yes intimate 0.43789 0.07491 5.8458 0. Yes T (5%) 1.97346 H05: The perception a consumer has that a service provider does not want to know their opinion has no effect or a negative effect on their willingness to switch service providers after a bad experience. HA5: When consumers feel their service provider do not want to know their opinions, they are more likely to switch service providers after a bad experience.
Linear Regression Regression Statistics R 0.53426 R Square 0.28543 Adjusted R Square 0.2814 S 1.77922 Total number of observations 179 considernew = 2.4527 + 0.5862 * dontwanttoknow
ANOVA d.f. SS MS F p-level Regression 1. 223.81924 223.81924 70.70312 1.34337E-14 Residual 177. 560.31484 3.16562 Total 178. 784.13408
Coefficients Standard Error t Stat p-level H0 (5%) rejected? Intercept 2.45275 0.28357 8.64964 3.10862E-15 Yes dontwanttoknow 0.58625 0.06972 8.40851 1.34337E-14 Yes T (5%) 1.97346 Standard Service Recovery Protocol Providers should leverage relationship with customer to promote openness and intimacy One size fits one Providers must immediately correct a poor service to earn a customers loyalty Invest in training practices
Jaramogi Oginga Odinga University of Science and Technology, Kenya - BSC Computer Security & Forensics MSC IT Security & Audit, PHD IT Security & Audit