BME01.HM3C.chapter 3.roa - Giovanni

Chapter 3- CUSTOMER FOCUS
Assignment 1
Giovanni L. Roa
Score:
Questions and Answers
Essay
1. Many organizations, such as banks, offer significant incentives to
attract new customers, such as discounts and freebies. However,
existing customers rarely receive incentives to stay. What do you think
of such practices? What are the implications-pro or con- of them?
The incentives is a prat that would benefit the costumer and
company but it cannot the possible ways to increase profitability of the
business because not all people are businessman and they have things to
consider when dealing the account that they opened and dealt with.
Let’s talk about the pro’s and con’s to identify what’s the
differences and risk by giving this incentives.

First, is the Pro’s.The incentives could the way to find some
people and commercialized to open them a bank accounts.Reward
checking products provide incentives or perks to account holders when
certain preset monthly requirements are met. The perks for customers
could include a higher annual percentage yield , ATM surcharge refunds,
or cash back on debit card purchases. The monthly requirements to earn
the “reward” typically are a combination of debit card swipes, enrollment
in electronic statements or online banking, and having a direct deposit or
other ACH transaction into the account.
One of the pros to reward checking products is that customers
frequently switch FIs, or open a new account for the perks and incentives,
especially if more favorable than nearby competitors. Another is the
rewards eligibility requirements generate revenue, by driving debit card
interchanges, and adds to cost savings, by eliminating mailed paper
statements and possible branch visits.
While the Cons are Many community banks and credit unions use
third party, one-size-fits-all reward product sets, which are expensive to
purchase rights to and then operate. A financial institution pays the
company monthly for the platform the product runs on, along with paying
possible interest or cash back earned by the account. Another con is, if
built incorrectly, rewards products can have a negative impact on the
financial institution; for example having mispriced balance tiers or APYs
cause the product to potentially lose money.
2. Explain the importance of commitments to building customer
relationships.
Powerful customer relationships are essential to business success.
But, they aren’t built overnight. Just like personal relationships, it’s
important to cultivate and nurture customer relationships. When
organizations develop strong relationships with their customers, it can
lead to loyal clients, positive word of mouth and increased sales. On the
other hand, while meaningful relationships require time and effort to
build, they can fall apart quickly. Relationships taken for granted
deteriorate in a flash. The key philosophy to remember is that strong
relationships are built around making the other person feel important.
When you accomplish this on an ongoing basis, success will follow.

3. Explain the difference between satisfaction and loyalty. Why is
loyalty more important?
First, we will define each term. Customer Satisfaction is a
measurement of customer attitudes regarding products, services, and
brands. Customer Loyalty on the other hand has two definitions.
Customer Loyalty consists of loyalty behavior also referred to as
customer retention which is the act of customers making repeat purchases
of current brands, rather than choosing competitor brands. Secondly,
Customer Loyalty encompasses loyalty attitudes which are opinions and
feelings about products, services, brands, or businesses that are associated
with repeat purchases. At times, customers display loyalty behavior
without having loyalty attitudes. Vice versa, occasionally customers
show loyalty attitudes without exhibiting any loyalty behavior.
Why is loyalty is more important because
customer loyalty measures something more than satisfaction it measures
whether someone is willing to put their name on the line and recommend
your product or service to others or if they are willing to stick with your
product/service in spite of an occasional poor experience.

4. Can you describe a customer-focused organization similar to
Jollibee, and KFC with which you have had personal experience? What
aspects of the fast food chain impressed you the most?
The Mcdonalds, which competes the Jollibee and I think they
better services and quality because we have different taste and like of
food. In the Philippines Jollibee was first built here and most popular,
but the time pass by many fast food restaurant like Macdonalds interest
Filipino people which they loved fast food. In order to compete Jollibee
they built here a restaurant with taste of Filipino and that’s what it is
really hard to choose which of these are way better than the other.
The aspects that I was impress to Macdonalds was there designed
of the table appointments which I think it’s unique and they had
friendly environment to the costumer that’s why I like it at most.

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Chapter 3- CUSTOMER FOCUS

Questions and Answers

1. Many organizations, such as banks, offer significant incentives to

attract new customers, such as discounts and freebies. However,

existing customers rarely receive incentives to stay. What do you think

of such practices? What are the implications-pro or con- of them?

The incentives is a prat that would benefit the costumer and

company but it cannot the possible ways to increase profitability of the

differences and risk by giving this incentives.

people and commercialized to open them a bank accounts.Reward

checking products provide incentives or perks to account holders when

could include a higher annual percentage yield , ATM surcharge refunds,

or cash back on debit card purchases. The monthly requirements to earn

the “reward” typically are a combination of debit card swipes, enrollment

in electronic statements or online banking, and having a direct deposit or

other ACH transaction into the account.

One of the pros to reward checking products is that customers

especially if more favorable than nearby competitors. Another is the

rewards eligibility requirements generate revenue, by driving debit card

interchanges, and adds to cost savings, by eliminating mailed paper

statements and possible branch visits.

third party, one-size-fits-all reward product sets, which are expensive to

purchase rights to and then operate. A financial institution pays the

financial institution; for example having mispriced balance tiers or APYs

cause the product to potentially lose money.

2. Explain the importance of commitments to building customer

Powerful customer relationships are essential to business success.

important to cultivate and nurture customer relationships. When

organizations develop strong relationships with their customers, it can

other hand, while meaningful relationships require time and effort to

deteriorate in a flash. The key philosophy to remember is that strong

When you accomplish this on an ongoing basis, success will follow.

loyalty more important?

First, we will define each term. Customer Satisfaction is a

measurement of customer attitudes regarding products, services, and

brands. Customer Loyalty on the other hand has two definitions.

Customer Loyalty consists of loyalty behavior also referred to as

customer retention which is the act of customers making repeat purchases

of current brands, rather than choosing competitor brands. Secondly,

Customer Loyalty encompasses loyalty attitudes which are opinions and

feelings about products, services, brands, or businesses that are associated

with repeat purchases. At times, customers display loyalty behavior

without having loyalty attitudes. Vice versa, occasionally customers

show loyalty attitudes without exhibiting any loyalty behavior.

Why is loyalty is more important because

customer loyalty measures something more than satisfaction it measures

product/service in spite of an occasional poor experience.

aspects of the fast food chain impressed you the most?

The Mcdonalds, which competes the Jollibee and I think they

The aspects that I was impress to Macdonalds was there designed

friendly environment to the costumer that’s why I like it at most.

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