Entrep Customer Loyalty Module 2

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Module 2
ENTREPRENEURSHIP & CUSTOMER LOYALTY
ATTRACTING, SATISFYING AND WINING THE

CUSTOMER
Dr. Rex E. Ufomba

OBJECTIVE
This topic will help participants:
• To understand the concept of customer-care in entreprenurship.
• To understand the peculiarities of different types of customers.
• To understand some tips for building customer relationship

towards wining their Loyalty.
• To be able to effectively handle and satisfy difficult or angry

customers.
• To ensure steady business growth and profitability in your

enterprise.
your sure PATH-TO-GREATNESS
• Customer is King
From start-up to business development stage,
it is necessary for the entrepreneur to exert energy
on attracting new customers in order to improve
revenue and ensure business growth. This
amplifies the need to treat existing customers as
KINGS. No matter how small their patronage is,
they are crucial for sustaining the business.
Loyalty of the Customer is a critical success factor in every busines
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The Customer is:
• The focus and the most important factor in the business.
• Not dependent on us, we depend on him/her.
• Not an interruption to business activities, but the purpose of it.
• Part of the business – (not an outsider).

Types of Customers
• Wandering Customers: They have no specific needs or desire in

mind when they come into the shop/ site.
• Need-Based Customers: They have specific intentions to buy
some particular items.
• Impulse Customers: They do not have any particular items to
buy in mind. They only purchase what seems good at the time.
• Discount Customers: They shop frequently but make decisions
based on the size of mark-down.
• Loyal Customers: They represent about 20% of customer- base
and make up to 50% of total sales. Regular communication
with them often-times influence stocking decision.
3% - Simply move away for no apparent reasons
5% - Develop other friendships
10% - Quit for competitive reasons
14% - Quit for dissatisfaction with products or services.
68% - Quit as a result of an attitude towards the customers by the

business owner or employer.
•A dissatisfied customer will most likely
tell 8 – 10 others about his experience.
• All the above • It costs five times more to attract a new
suggests that the customer than to keep an old one.
customer is a • It takes 10 positive service incidents to
fragile component
of business, hence; make up a negative incident.
requires careful • 7 out of 10 complaining customers might
handling! maintain business patronage if
complaints are resolved in their favor.
•9 out of 10 might maintain loyalty with
the business if their complaints are
resolved on the spot.
A simple statement from a school
parent like ‘ Good bye, Head Teacher’ could mean more
than the loss of one customer.
N30,000 School fee per child/term = N90,000 p/yr.
N90,000 p/yr x 3yrs of nursery schooling = N270,000.
If the speaker quits with her two children = LOSS OF N540,000.
If 10 other parents follow suit = LOSS OF N5.4m (in 3 YEARS).
RIPPLE EFFECTS OF LOSING A CUSTOMER.
Most people do not know the real cost of losing a customer!
I. Meeting customer’s expectations
II. Exceeding customer’s expectations
III. Delighting and amazing the customer with exceptionally

satisfactory services.
IV. Amazing the customer with exceptionally satisfactory services

Always ask the FOUR Big Questions:
I. What can we do better?
II. How can we get things done faster?
III. What/ how can we do things differently?
IV. How can we maintain and improve customers’ perception about

our business?
• Using the four big questions: create a customer
service policy for your business.
1. KNOW YOUR BUSINESS:
• Understand its technical details
• Build and show confidence
• Do the fundamentals, NOT the fancy
• Be result-oriented, NOT activities-oriented
2. SHARE THEIR URGENCY:
• Prompt service delivery
• Be flexible
• Strive to exceed expectations
3. LISTEN
• L = Look and Listen
• I = Imply interest
• S = Sensitive (you must be)
• T = Terms & Terminology
• E = Empathize
• N = Normalcy (be yourself)
• S = Smile (it endears)
• Strive to exceed expectations
4. EMPLOYEE EMPOWERMENT
An investment in your employees’ ability to provide superior service to
customers can be seen as a virtuous circle. Effort spent in selecting and
training employees and creating a corporate culture in which they are
empowered can lead to increased employee satisfaction and employee
competence.
This will likely result in superior service delivery and customer
satisfaction. This in turn will create;
• Customer loyalty
• Improved sales levels,
• Higher profit margins
• A study of ‘face to face communication’ conducted
by Prof. Albert Mehrabian at the University of
California Los Angeles, USA found that the
percentage of the meaning conveyed through each
channel of communication is as follows:
• Verbal/ vocal - 45%
• Non-verbal – 55%
A word is a condensed thought, therefore:
Use the right words.
Avoid jargons (it could be misunderstood).
Words have effects on your image therefore, be
courteous always.

Sometimes, your only contact with the customers could be via the
phone. Make the best use of it.
• Call your name

• Smile through the phone
• Keep your caller informed
• Let your voice be neutral and friendly
• Use ‘holds’ carefully
• End calls on a ‘friendly’ note
I. Never criticize, complain or condemn anyone or anything when you are
with a customer.
II. Acceptance: Accept people the way they are without bias.
III. Approval and praise makes people feel good.
IV. Appreciation is expressed by the magic words: “Thank you”.
V. Admiration: Everyone likes compliment.
VI. Agreeability: Never argue with a customer.
VII. Patience: always control your temper

• As soon as you see a customer, politely acknowledge his presence.
• Be equally prompt and polite when answering telephone calls.
• If a scheduled appointment is made with customer, it is your business to be
on time.
• Prepare for customers’ questions by having answers before they ask.
• Whenever necessary, give polite and tactful answers.
• Ask the right questions. Open-ended questions: why, how, where?
• Make them feel good for being your customers.
• Listen without interrupting.
• Do not post ‘superior arguments’.
• Respond with respect and empathy.
• Talk about what you can do to solve the problem, not what you cannot do.
• Take action to solve problem.
• Get help from superiors if need be.
• Bring the incident to a polite close.
• Don’t expect to win all the time

• Understand that NO two persons are the same.
• Customize: Give each customer exactly what he/she requests.
• Use the Pareto Rule (20: 80 rule)
• Make him feel as if he is the most important person on your
register.
• Talk about something you have in common (share similar
experiences).
A Customer’s loyalty is hard to win but easy to lose.
But by going above and beyond normal SERVICE
DELIVERY, your customer-base would climb above
and beyond that of your COMPETITORS.

• A customer has just left your business premises in
anger, leaving behind a malfunctioned NOKIA handset
he purchased from you two days ago. What would be
your action?

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EDC LOGO

ENTREPRENEURSHIP & CUSTOMER LOYALTY

ATTRACTING, SATISFYING AND WINING THE

Dr. Rex E. Ufomba

• To understand the peculiarities of different types of customers.

• To understand some tips for building customer relationship

• To be able to effectively handle and satisfy difficult or angry

• To ensure steady business growth and profitability in your

The Customer is:

• The focus and the most important factor in the business.

• Not dependent on us, we depend on him/her.

• Not an interruption to business activities, but the purpose of it.

• Part of the business – (not an outsider).

• Wandering Customers: They have no specific needs or desire in

5% - Develop other friendships

10% - Quit for competitive reasons

14% - Quit for dissatisfaction with products or services.

68% - Quit as a result of an attitude towards the customers by the

II. Exceeding customer’s expectations

III. Delighting and amazing the customer with exceptionally

IV. Amazing the customer with exceptionally satisfactory services

II. How can we get things done faster?

III. What/ how can we do things differently?

IV. How can we maintain and improve customers’ perception about

your sure PATH-TO-GREATNESS

• Call your name

III. Approval and praise makes people feel good.

IV. Appreciation is expressed by the magic words: “Thank you”.

V. Admiration: Everyone likes compliment.

VI. Agreeability: Never argue with a customer.

VII. Patience: always control your temper

• Do not post ‘superior arguments’.

• Respond with respect and empathy.

• Take action to solve problem.

• Get help from superiors if need be.

• Bring the incident to a polite close.

• Don’t expect to win all the time

your sure PATH-TO-GREATNESS

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