Hanken Professor Christian Grönroos - Principles of Service Management 4 - Profitable long-term..


Summary

The video delves into the crucial role of service quality in fostering enduring customer relationships. It emphasizes factors such as price, loyalty, and provider benefits, influencing customer behavior. Models like the Pro Service Model and the Service Profit Chain Model are explored to demonstrate how internal service quality impacts employee satisfaction, customer loyalty, and revenue growth. The Dynamic Customer Relationship Model underscores the significance of customer satisfaction, relationship strength, and longevity in driving customer profitability and loyalty. Evaluating customer profitability, managing profitable segments, and understanding relationship costs are vital strategies for long-term success in customer relationships. Calculating total costs and profitability, including production costs, delivery costs, and psychological costs, are essential for lasting profitability and customer satisfaction.


Building Long-Term Customer Relationships

Discussing the importance of service quality in creating long-term customer relationships, including factors like price, customer loyalty, and service provider benefits.

Customer Behavior and Service Quality

Exploring customer behaviors influenced by service quality and the impact of good quality service on customer interactions and relationships.

Understanding Pro Service Model

Analyzing the Pro Service Model, which emphasizes internal service quality's positive impact on employee satisfaction, service quality, customer satisfaction, and revenue growth.

Service Profit Chain Model

Examining the Service Profit Chain Model, focusing on internal aspects, customer activities, and ways to enhance profitability through customer relationships.

Dynamic Customer Relationship Model

Detailing the Dynamic Customer Relationship Model that emphasizes customer satisfaction, relationship strength, and length as key factors in customer profitability and loyalty.

Analyzing Customer Profitability

Discussing the importance of evaluating customer profitability and strategies to manage profitable and unprofitable customer segments for long-term success.

Relationship Costs in Customer-Supplier Interactions

Exploring relationship costs in customer-supplier interactions, including direct and indirect costs, service configuration, psychological costs, and implications for long-term relationships.

Calculating Total Costs and Profitability

Discussing the calculation of total costs and profitability in customer-supplier relationships, considering production and delivery costs, psychological costs, and long-term impact on profitability.

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