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Service Guarantees
Christopher W.L. Hart, Harvard Business Review, July-August, 1988, pp. 54-62
Presenting- Group
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1. Unconditional
2. Easy To Understand And Communicate
3. Meaningful
4. Easy To Invoke
5. Easy To Collect
UNCONDITIONAL
L.L. Bean
100% satisfaction in every way.
Customer can return, replace or credit a product at any time
2.Financially
1.Focus on customers
2.Sets clear standards
3.Generates feedback
4.Forces company to understand why it failed
5.Builds Marketing Muscle
Focus on customers
Guaranteeing something customers dont want or value is not meaningful
Encourages consumers to buy a service by reducing the risk of the purchase decision
Generates more sales to existing customers by enhancing loyalty.
Generates Word-of- Mouth Promotion
Very important for service companies
Service companies biggest competitors are themselves.
Money spent on guarantees is an investment in customer satisfaction and loyalty
Breakthrough Service
Altering the basis of competition and putting competitors at severe disadvantage
Thank You!