In the past 20 years a convergence has occurred, indicating the importance of building relationships with valuable customers is a cornerstone of service strategy. Customer satisfaction and joy have been linked to support the retention and growth of key relationships. More recently, companies have adopted penalties and fees as a key means of increasing revenue. This has the friction with the programs to improve customer relationships and increase targeted caused defections and incentive … Read more »

In the past 20 years a convergence has occurred, indicating the importance of building relationships with valuable customers is a cornerstone of service strategy. Customer satisfaction and joy have been linked to support the retention and growth of key relationships. More recently, companies have adopted penalties and fees as a key means of increasing revenue. This has the friction with the programs to improve customer relationships and increase targeted caused defections and spurred government regulation. In this article, we collect and analyze data to identify generate aspects of the sanctions, customer dissatisfaction and negative emotional and behavioral responses. We provide guidelines for the implementation of sanctions, to balance the goals of revenue generation and customer retention. These include: unintentional errors, Managing Director of the perceived size of sanctions effectively educate customers on the supply, so that sanctions are clear and transparent, linking penalty decisions, the responsibility for the violation, taking into account failed to avoid a penalty, and the consideration of the customer relationship and employee empowerment.
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from
Stephen S. Tax,
Young “Sally” Kim,
Sudhir Nair
Source: Business Horizons
10 pages.
Release Date: 15, May 2013. Prod #: BH537-PDF-ENG
The correct payoff penalties from customers HBR case solution