"Customer service is a series of activities

designed to enhance the level of

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