It's the Little Things that Count with Customers
Topic Customer Relationship Management
Key Words Lifetime value of customer, relationship marketing
InfoTrac Reference A123454645
If your textbook came with an InfoTrac passcode, click here to login on InfoTrac.
News Story 

Highly satisfied customers are the lifeblood of any successful restaurant chain, but gaining that favor is easier said than done. Meeting customers' expectations in a consistent manner is key to building life-long business relationships, but blowing it just once has the potential to chase them away indefinitely.

According to some analysts, the ability to produce highly satisfied customers is absolutely critical to the bottom line. In a recent Harvard Business Review article titled "Why Satisfied Customers Defect," the author points out that the gulf between satisfied customers and exceptionally satisfied customers can actually swallow a business. The notion that chains can't survive without providing superior service should startle owners into rethinking the importance of their relationship marketing efforts.

Restaurant chains like O'Charley's, Panda Inn, and Johnny Rockets have built loyal followings over the years by adhering to details that might seem insignificant to the casual observer but go a long way toward gaining an increase in customer loyalty that can improve profits. While each of these chains has its own unique brand and way of interacting with customers, they all recognize that little things add up: It's the little things that keep customers satisfied and coming back time after time.

Questions
1.

Read the article and describe some of the ways that Johnny Rockets, O'Charley's, and Panda Inn foster loyalty among their customers.

2. According to the article, how can a service blunder be turned into an opportunity to develop a stronger relationship with a customer?
Source Jack Mackey, "Little things add up: smaller snapshots help paint the bigger customer loyalty picture," Restaurant Hospitality, Oct 2004 v88 i10 p62(2).
Instructor Discussion Notes Discussion Notes
These notes are restricted to qualified instructors only. Register for free!

Return to the Customer Relationship Management Index

©2005  Thomson Business and Professional Publishing.  All Rights Reserved   webmaster  |   DISCLAIMER