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Case study: Managing Customer Quality Service

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Contents1.Lifetime Customer Value....................................................1What would you estimate is the lifetime customer value (LCV) of Laura's business at each of the stores?How would you account for any difference?2.Level of Service..................................................................3How would you rate the level of service provided by the two newsagents? Why?3.Customer Satisfaction and Customer Loyalty.........................4Although Laura shopped at the first newsagent regularly, was she loyal? Do you think the first newsagent confused "satisfaction" or even "nowhere else to go" with loyalty?Why is this dangerous for a business?How would you advise the first newsagent to proceed if she is to retain her …show more content…

Despite, the store has a large range of goods and is well laid out and clean, but the owner doesn't treasure this as an opportunity to attract more new customers. On the contrary, he provides bad service or even no service to customers which may due to people start leaving his business and work for his competitors.

For the new newsagent, I would rate four out of 5 to the service it provides to its customers because the owner, Chris, greeted Laura with a smile and asked if she needs any help. This is a good example of good quality service. "Service goes beyond friendliness or kindness." (Jacques Horovitz 1990, p.3) So, by asking questions and listening carefully to the answers can make customers feel that they are not by themselves, they got someone to look after and finally they enjoy going in there.

Moreover, Chris understands the concept of treating customers as long-term appreciating asset, will help to build image and trust of her store and hence to attract more new customers and increase their loyalty.

Q3) Although Laura shopped at the first newsagent regularly, was she loyal? Do you think the first newsagent confused "satisfaction" or even "nowhere else to go" with loyalty? Why is this dangerous for a business? How would you advise the first newsagent to proceed if she is to retain her customer base? In your answer, include a discussion on meeting the psychological

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