1. Topic: Linking Customer Feedback and Brand/Supplier Loyalty
Featured Speaker: Michael Lowenstein
Webcast Date: TBD
Recording: September 13, 2002; 10am ET
Program Information
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2. Topic: Linking Customer Feedback and Brand/Supplier Loyalty
Featured Speaker: Michael Lowenstein
Webcast Date: TBD
Recording: September 13, 2002; 10am ET
Outline
" Linking Customer Feedback and Brand/Supplier Loyalty "
Welcome to RealMarket Live!, a weekly production of RealMarket. I’m Gary Lemke, the host of
today’s program and with me is Michael Lowenstein, Managing Director of Customer Retention
Associates. Michael has over 30 years' experience in loyalty research, service quality and
strategic marketing and planning, A sought-after speaker, Michael addresses corporations and
business associations nationwide on customer retention and loyalty and is the author of the
progressive book, Customer Retention: An Integrated Process for Keeping your Best Customers
and the widely acclaimed book, The Customer Loyalty Pyramid.
Today, Michael will be talking about the link between customer feedback and customer loyalty
and share some real life examples of the positive impact of linking the two together.
Michael, Welcome to RealMarket Live!
<Michael responds>
Housekeeping:
Before we get started, let me remind our listeners to follow along with the slides. They do not
advance automatically so use the controls underneath. Also, we encourage feedback at the
conclusion of the presentation by advancing to the last slide or using the feedback link at the
top. Now, back to the topic at hand.
Slide #1
Linking Customer Feedback
and
Brand/Supplier Loyalty: Question: Michael, in the world of CRM, you’ve
What Smart Companies got two very powerful concepts wrapped together.
Are Doing Customer feedback and loyalty. Is customer
satisfaction the same as loyalty?
Michael Lowenstein, CPCM
Managing Director
Customer Retention Associates
Notes:

3. Slide #2
Question: Michael, customer feedback typically
surfaces in organizations as complaints. Are
complaints a good thing or a bad thing?
Notes:
Slide #3
Generating/Acting On
Complaints
l Make it easy to complain Question: Michael, it seems like critical customer
l Proactively solicit complaints
– Model loyalty effect of
feedback can take an organization out of its game
expressed/unexpressed complaints plan. What are the lessons learned in dealing with
l Handle at lowest level
complaints?
l Train staff in communication,
application of remedies
l Resolve quickly
Notes:
Slide #4
Question: OK Michael, let’s talk numbers. What
is the link between feedback and loyalty?
Notes:

4. Slide #5
Harrah’s Hotels and Casinos
- Loyalty cards for profiling/identifying
demographics and lifestyle of new
customers (players) Question: Michael, up front we promised some
- Music, dining, hobbies, vacations, etc. interest
- Tracking play at gaming tables and gambling real life examples. What do you have for us today?
machines – time, amounts spent, betting
strategy, win/loss ratio, etc.
- Managing player/guest experiences Note: just transition to the next case study by
(CEM) yourself without my prompt.
- Data shared at touch screen terminals used by
pit bosses, hotel clerks, restaurant staff, others
- Integrating player gaming/hospitality data from
multiple properties/locations within each property
Notes:
Slide #6
Dorothy Lane Markets – Dayton
- Collecting active customer data
- Every night senior store employees call five
customers who shopped that day for feedback
- Every week managers send handwritten letters
to customers inviting them to ask questions, make
suggestions, voice concerns Note: Continue on with this example.
- Volunteer customer advisory group - sounding
board for new ideas; serve for two years
- Using data to reward good customers
for their behavior
- Surprise/out-of-the-box gifts – concerts, gift
certificates, charitable donations, etc.
Notes:
Slide #7
British Airways
British Airways proactively seeks to understand
customers’ perceptions of services. They
actively encourage and collect customer
information, from multiple touch points, to:
- Increase staff performance and operational efficiency Note: Continue on with this example.
- Create, and reinforce, positive customer experiences
of the BA brand
- Measure and improve service delivery performance
to meet/exceed customer expectations
- Reduce repetitive complaints – Although proactively
sought, BA reduced year
-to-year complaints by 30%!
Notes:

5. Slide #8
Baptist Health Care
- HealthSource (Contact Center) obtains
and aggregates anecdotal patient issue
feedback for service recovery
- Data Capture – Date/type/resolution of incident;
department/unit involved; customer won/lost; costs Note: Continue on with this example.
- Data Category – Patient Care; Operations;
Environmental; Physicians
- Data Sharing – With department leaders, on
frequent basis
- Data Recording – Multi-source data regarding
service recovery logged, then stored in database
Notes:
Slide #9
Conclusions
l Many types, and sources, of data
can help drive customer loyalty
l Innovation and flexibility are needed Question: Michael, what can people take away
to integrate/optimize all customer from the examples you just shared with us?
‘touch’ data channels
l Brand/company loyalty can be
created, through data application, at
each customer life stage
Notes:
Slide #10
Value is About Much More
Than Money
l Value = Customer -perceived
tangible/intangible benefits supplied +
solutions provided - what is required Question: Michael, let’s talk about value. Should
to obtain benefits and solutions organizations think about value in terms of Lifetime
l The Kano Model
– Expected - Failure to deliver will result in Customer Value or something else?
likely defection
– One-Dimensional - Desired, standards of
competitors
– Attractive/Surprising - Positive and
unanticipated
Notes:

6. Slide #11
Searching Out Value
l P.A.C.E. Process - Four Parts
- Prepare – What does company know
about customers/what’s missing
Question: Michael, as your work with
– Assemble - Identify needs and organizations looking to maximize value, what do you
wants/form attributes
– Comprehend - Quantitative
tell them about customer value?
research/improvement priorities
– Employ - Develop/execute/re-
evaluate action plans
Notes:
Slide #12
Recognize the Difference
Between Satisfaction and Loyalty
Measurements/Metrics
l Overall performance and change
l Intent to repurchase and recommend
Question: Michael, in the few minutes we have
l Customer-defined attributes + importance and left, summarize the link and differences between
performance measurement customer satisfaction and customer loyalty.
l Expressed/latent complaints
l Top-box score usage, not means
l Staff-customer gap profiling
l Loyalty modeling/use of graphics
Notes:
Closing
Michael, thanks very much for your time today and thanks for sharing your insights.
<Michael responds>
This concludes this week’s edition of RealMarket Live!. If you have any questions about
today’s presentation, you may contact Michael by clicking on his picture on the left hand side
of your browser.
And finally, we invite you to fill out a feedback survey on the last slide letting us know what
you thought of today’s presentation.
We look forward to seeing you again for another RealMarket Live! webcast.