Page 236 - DMGT522_SERVICES MANAGEMENT

Unit 11: Customer Loyalty

Figure 11.1 below illustrates a flow of relationship factors affecting business performance in Notes
very large number of service sector firms.
Figure 11.1: Relationship Factor affecting Business Performance

Advocate
Emphasis on
developing and
Supporter enhancing
relationships
(Customer
keeping)
Client
Emphasis
on new
customers Customer
(Customer
catching)

Prospect

Simultaneous with the development of strong relationships, the expectations of customers and
all stakeholders start rising rapidly, and the service firm is expected to come up to their soaring
expectations in order to vindicate their promises to all customers. Each of the stakeholders and

Figure 11.2: Stakeholders and their Expectations from Relationship Marketing

Customers Internal Staff
Suppliers • Good service • Recognition
• Clear requirements • Trustworthiness • Rewards
• Partnership • Fair prices • Security
• Large orders • Opportunity for
• Reliable settlement advancement

AIRLINES

Future Employees Referral sources
• Job supply • Reliability
• Image of ‘first • Performance
choice’ employer • Recognition
• Courteous treatment • Reciprocation
Influencers

1. Shareholders 2. Government
• Returns and
• Growth Regulators
• Compliance • Credit rating
• Good corporate • Compliance
citizen • Reliability
• No surprises

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