Over the precedent 20 years, a convergence occurred regarding the importance of building relationships with customers that were valuable as the cornerstone of service strategy. Customer satisfaction and delight have been connected with supporting growth and the retention of important relationships. More recently, businesses have adopted fees and penalties as a fundamental means of growing earnings.
This has caused friction with the software targeted at enhancing customer relations, and increased defections and spurred government management. In this specific article, we gather and assess data to recognize the aspects of penalties that generate customer discontent and negative psychological and behavioral responses. We offer guidelines for the implementation of punishments that balance the goals of revenue generation and customer loyalty. These include: preventing unintentional failures, handling the perceived magnitude of penalties, effectively educating customers on the offer, ensuring that penalties are clear and transparent, linking penalty choices to duty for the transgression, taking into account narrowly missing avoiding a punishment, and consideration of the customer relationship and worker empowerment.
PUBLICATION DATE: May 15, 2013 PRODUCT #: BH537-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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