Quality of Relationship with Customers
Satisfying customer needs ensures the business survival for an organization. A periodical check is required to enhance the quality of services and product to build a quality relationship with customers. For fulfilling this goal organizations must have a set of rules to measure and improve this quality. Delivering best quality services to customers is considered […]
Understanding Social Media Channels
As Marketing professional or a management professional, one needs to be in tune with the current trends, especially in terms of the media channels and be ahead of the customers. Social Media networking has brought about phenomenal changes to the consumer behavior. While traditionally print media, Audio and Video media were one sided communication channels […]
Brand Identity vs Brand Image
Brand Identity Brand Image 1 Brand identity develops from the source or the company. Brand image is perceived by the receiver or the consumer. 2 Brand message is tied together in terms of brand identity. Brand message is untied by the consumer in the form of brand image. 3 The general meaning of brand […]
Business to Business (B2B) Marketing – An Overview
What is “Business to Business Marketing” ? Let us first understand the meaning of Business. Any organization or firm actively involved in the transaction of goods and services to the consumers/end users is known as business. As the name suggests “Business to Business Marketing” (B2B Marketing) refers to the exchange of either goods or services […]
Psychological Factors affecting Consumer Behaviour
Consumer Behaviour deals with the study of buying behaviour of consumers. Let us understand the effect of psychological factors on consumer behaviour: Motivation Nancy went to a nearby restaurant and ordered pizza for herself. Why did Nancy buy pizza ? Answer – She was feeling hungry and wanted to eat something. In the above example, […]
Every business knows that in order to thrive it needs to differentiate itself in the mind of the consumer. Price has proved inadequate since there is a limit to how much a firm can cut back on its margins. Product differentiation is also no longer enough to attract or retain customers since technological advances have resulted in products becoming almost identical with very few tangible differences from others in the same category. Consequently, marketers have realized the importance of service differentiation as a sustainable strategy for competing for a portion of the customer’s wallet.
A moment of truth is usually defined as an instance wherein the customer and the organization come into contact with one another in a manner that gives the customer an opportunity to either form or change an impression about the firm. Such an interaction could occur through the product of the firm, its service offering or both. Various instances could constitute a moment of truth - such as greeting the customer, handling customer queries or complaints, promoting special offers or giving discounts and the closing of the interaction.
In today’s increasingly service driven markets and with the proliferation of multiple providers for every type of product or service, moments of truth have become an important fact of customer interaction that marketers need to keep in mind. They are critical as they determine a customer’s perception of, and reaction to, a brand. Moments of truth can make or break an organization’s relationship with its customers.
This is more so in the case of service providers since they are selling intangibles by creating customer expectations. Services are often differentiated in the minds of the customer by promises of what is to come. Managing these expectations constitutes a critical component of creating favorable moments of truth which in turn are critical for business success.
Moments of Magic: Favorable moments of truth have been termed as ’moments of magic’. These are instances where the customer has been served in a manner that exceeds his expectations. Eg: An airline passenger being upgraded to from an economy to a business class ticket or the 100th (or 1000th) customer of a new department store being given a special discount on his purchase. Such gestures can go a long way in creating a regular and loyal customer base. However, a moment of magic need not necessarily involve such grand gestures. Even the efficient and timely service consistently provided by the coffee shop assistant can create a moment of magic for the customers.
Moment of Misery: These are instances where the customer interaction has a negative outcome. A delayed flight, rude and inattentive shop assistants or poor quality of food served at a restaurant all qualify as moments of misery for the customers. Though lapses in service cannot be totally avoided, how such a lapse is handled can go a long way in converting a moment of misery in to a moment of magic and creating a lasting impact on the customer.
Note: Moments of Magic and Moments of Misery are trademarks owned by Shep Hyken. Used with permission. For more information go to http://www.hyken.com.
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