Monday January 30 y Study Guide Exam 2 Text reading pg 123 End Module 7 Understand the meaning of trust based relationships Understand the model of trust based relationships Describe how successful companies gain trust from customers employees and partners Understand the model of trust See examples of successful companies and learn how they create trust based relationships BASED SHIPS tion helping control perpet TRUST RELATION Valued rela ships that last a company its destiny uate itself MODEL Perceived Competence a customer s idea of the company s ability to carry out the service Competence Doing things right Service Promises Kept Customer Trust EX Jersey Mike s Subs on The Travel Channel s Sandwich Paradise Watch this video to see what Jersey Mike s does right to keep customers coming back 1 Monday January 30 y Point Pleasant Peach NJ Submarine Sandwich Selling largest submarine in country 1956 and became popular because of summer resort area 1975 Owner puts business up for sale and 17 year old buys chain with 125 000 over 300 locations home town atmosphere and knowing customers is key build relationships through making friends and being personal knowing cus tomer s names for ex Perceived Fairness how the customer sees the company s reactions behaviors and their degree of justice It only takes on perceived act of unfairness to destroy a relationship forever EX Credit Card companies are demonstrating unfair practices Burying secret fees in customer purchases Creating a new fee called interchange that most customer s don t even know about Visa and Master card 18 of CC market so they and their banks can charge inter change in everything you buy even if you pay cash Trust of a Company is formed when the company meets customer expectations with ser vice and quality consistently MODEL OF TRUST 2 Monday January 30 y EMPLOYEE RELATIONSHIPS Are critical for labor intensive service companies Company employee relationships facilitate company customer relationships EX Wyndham and how they view employee engagement Measure associate engagement every 2 years Survey every other year to pin point where they are doing well and where they need to improve Employee round tables so employees feel like their voice is heard Do what employees ask or explain why it cant be done competitive benefits program for diverse employees Make sure to provide excellent managers because that employee and supervisor relationship is the most important in the business EX Ominiture and how they have kept their promises to employees Integrity is essential Not a choice between something right and something wrong more of a choice be tween always doing what is right regardless of what is written in the contract Build relationship for trust with employees because it reaps benefits and they feel their managers and superiors have their back so they will be content and like thus can beat the competition and generate more money One example is in Dec 2000 the company had to let go of 48 people and could could one day they this allowed those who not pay severances to those who were let go but promised that if they would pay them back 5 years later they did pay them back and were fired before to leave omnitiure thinking positively They kept their promises because it was the right thing to do no matter how long it took and that is integrity Employee Relationships Great Companies have employee relationships where Relationships are personalized Mutual respect is abundant Leaders are accessible approachable and caring Organizational trust is nurturing Fun is always in the air 3 Monday January 30 y Partner Relationships help a company serve its customer better and bring new customers to the company EX CIO SUMMIT Critical be clear on the service and attitude you expect in the future Regard them as partners from the beginning establish a team do not treat them as Meet when the system has gone up and know key people to create a personal client supplier relationship relationship Know your budget quality of service value and how much you can spend Be fi nancial aware Be honest about opportunities and needs Manage suppliers intelligently and then divide them by projects As you put a contract together write it so you never have to revise it make it sim ple for both parties have a reasonable tough relationship but make expectations clear Know where the market is and what you are paying for Understand suppliers motivation for making margin and how they make their com Adapt as things change delivery contracts etc your company will change antici pany pate it 4 Customer Relationships are a crucial element to the service company Monday January 30 y Encourages Repeat Business Helps market the company through word of mouth Increases chances of add on sales EX Southwest Airlines Make customers feel comfortable Takes time to call family while a customer is going through open heart surgery Make experience Personal EX Starbucks Greet Customers with a happy and energetic attitude Employees engage in customer interaction Up Early listening to music and set the mood Hire people who are enthusiastic and treat etcher with dignity and respect Hire Employees who are upbeat Refer to people by their orders and because it is coffee they make sure to start their day positively Customer service is a lost art and creates regulars Customer Benefits to Company Relationships Confidence Benefit Reduces anxiety increases faith that promises will be kept Social Benefit Being Recognized by employees Customer Relationships EX Jordan Estate Emulate Hospitality from Europe in their rewards program Make sure customers are welcomed Rewards makes Food wine Hospitality accessible Puts same things he enjoyed in a central location Combine favorite experiences and that reflect Jordan s attention to detail European hospitality and quality Focus on experiences that touch all 5 senses and creates memories EX Hilton Hhonors Earn Hotel rewards with no black out dates Fast Check in Free Room Upgrade Guaranteed Reservations Travel Perks Amenities points miles 5 Iphone App personalized attention and you can place order for room service more 50 airline partners around the world Monday January 30 y Best way to build relationships is to know your customer How Do Companies Learn About Customers Track buying patterns Customize services and promotions to customers needs Coordinate multiple services to same customer Provide two way communication channels Augment services with valued extras