On Oct. 11, 2013, the 4Service Group successfully held a business breakfastat the art-restaurant “Shlyapa”. The breakfast, which was titled "Customer Loyalty and Service Management", was for electronics and mobile retailers.
The event was attended by leading experts from Samsung, Intertelekom, Foxtrot, Intel, Allo, Protoria, Ringo, Kyivstar, IStore, Star Telecom, Vega-telecom, Diawest, Moyo, Mobilnye Fishki, Sota, Istudio, and others.
Leading retailers see good service as a competitive advantage; an improvement in quality followed by steady customer loyalty is important beyond a doubt. That is why the topic of the business breakfast was so well-received by the audience.
The first part of the event was about service quality evaluation. Ukrainian retailers have been successfully making improvements in service quality for a long time. Due to this track record, the company 4Service Group recommended comprehensive service assessment based on three criteria:
- Service standards implementation
- Subjective evaluation
- Net Promoter Score (NPS)
Sergey Pashkovskiy, Service Director at 4Service Group, presented the results of a service quality study in the industry over three quarters of 2013 to show the trends and dynamics of service improvement among Ukrainian retailers of appliance, electronics, and mobile communication services. The participants were interested to learn that the best standard to be met by shop assistants is customer needs identification (79.42%). The "Purchase Offer" and "Additional Products, Services" standards received the lowest results in whole industry (78.53% and 74.94% respectively).
The subjective industry index for the period from January to September 2013 showed that Ukrainian shoppers appreciated sales staff competence in appliance, electronics, and mobile communication services retailers. The interior (convenience and comfort for shoppers) received the lowest scores – 79.08%.
The idea of using a customer loyalty index (NPS) in profit management garnered much interest among the participants. Each company faces customer fluctuations; that said, the key goal for profit growth is to increase the customer inflow rate and to cut outflow rate. This is determined by customer loyalty.
The customer inflow rate (profit 1) depends on loyal customers who generate positive feedback about the company. Every tenth loyal customer turns out to be a "promoter" of positive information and draws in new customers. The second source of profit also depends on the number of loyal customers who spend more money than other regular customers. They have a larger receipt total on average and a greater number of repeat purchases. Customer loyalty can reduce customer outflow, enhancing the third profit source. This is due to a decrease to price sensitivity and travel time to an outlet.
4Service Group measured the NPS over a period from January to September 2013 among Ukrainian electronics and mobile communication retailers (44.67). The companies in this sector appear to have the highest customer loyalty rate among Ukrainian retailers and industries - 40.77% (mobile communication retailers), 44.67% (NPS of appliance and electronics supermarkets).
4Service Group presented effective solutions to improve service and increase customer loyalty, as well as efficient techniques for managing change. The participants eagerly discussed strategy selection concerning service quality and brought up the most preferred measures of service management and its evaluation tools.
Among the business breakfast speakers were Alexandr Pashchenko (Central region HR director, Allo) and Natalia Kravchenko (Head of Customer Service Department, Intertelekom); they shared their operational experience on service quality management in the industry.
A speech by Alexandr Pashchenko focused on the importance of subjectively assessing customers and their loyalty. Natalia Kravchenko shared her experience on Mystery Shopping implementation and suggested ways to overcome staff resistance.
In the warm atmosphere of the business breakfast, participants discussed the practical use of service management and customer loyalty management techniques; they also mentioned their readiness to begin using modern service management tools.
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