E-BOOK CUSTOMER SERVICE; CUSTOMER LOYALTY IN TOURISM AND HOSPITALITY INDUSTRY

CUSTOMER
SERVICE

CUSTOMER LOYALTY IN TOURISM AND
HOSPITALITY INDUSTRY




NIK AIDA FATIHAH
NOR SYAFIQAH

MOHD MOHADIR

PUBLISHER

COPYRIGHT RESERVED
TERBITAN 2021

ALL RIGHT RESERVED. NO PART OF THIS PUBLICATION MAY
BE REPRODUCED, DISTRIBUTE IN ANY FORM AND BY ANY
MEANS INCLUDING PHOTOCOPYING, ELECTRONIC AND

RECORDING WITHOUT ANY PERMISSION FROM AUTHORS AND
PUBLISHER OF DEPARTMENT TOURISM AND HOSPITALITY


POLITEKNIK SULTAN IDRIS SHAH


CUSTOMER SERVICE: CUSTOMER LOYALTY IN TOURISM AND
HOSPITALITY INDUSTRY PUBLISHED IN MALAYSIA BY;
POLITEKNIK SULTAN IDRIS SHAH
SUNGAI LANG 45100
SUNGAI AIR TAWAR
SELANGOR


TEL: 03 3280 6200
FAX: 03 3280 6400


WRITTER & EDITOR
NIK AIDA FATIHAH BINTI NIK FITRI
NORSYAFIQAH BINTI ABDUL KHAHAR


AUDITOR
MOHD MOHADIR BIN HARUN


GRAPHIC
NIK AIDA FATIHAH BINTI NIK FITRI
NORSYAFIQAH BINTI ABDUL KHAHAR

Table Of Content

CHAPTER 1 : INTRODUCTION

1.1 Definition
............ 6
1.2 Concept ............ 7
............ 8-13
1.3 Meaning Of Customer
............ 14-18
& Customer Loyalty ............ 19- 21

1.4 Importance Of Customer Loyalty

1.5 Benefits Of Customer Loyalty

CHAPTER 2: UNDERSTANDS
YOUR CUSTOMER

2.1 Types Of Customer ............ 22-27
2.2 Timing Is Important ............ 28-31
2.3 Generate Customer Loyalty ............ 32-36
2.4 Metrics to Measure Customer Loyalty ............ 37-42

CHAPTER 3: SOLVING
CUSTOMER'S PROBLEM

3.1 Why Problem Occur? ............ 43-46
3.2 How To Handle Problem ............. 47
............ 48-49
3.2.1 Improve Skills And Service ............. 50
3.2.2 Improve Communication Skills .............. 51
3.2.3 Improve Customer Feedback

CHAPTER 4: PROGRAM FOR ............. 52-53
CUSTOMER LOYALTY
............. 54-59
4.1 Definition Of Customer Loyalty
Programs ............. 60-64
............. 65-76
4.2 Importance Of Customer Loyalty
Programs

4.3 Reason of a Customer Loyalty
Program

4.4 Types Of Loyalty Program

5.0 Conclusion ................ 77
6.0 References ................ 78

CHAPTER 1
INTRODUCTION

E-book, standing for electronic book, is
a digital file containing a body of text
and images ideal for online platform and
displays on-screen in a way comparable
to a printed book,

E-books can be made by converting a
printer's source files to formats intended
for convenient downloading and on-
screen viewing, or they can be derived
from a database or a collection of text
files that were not created specifically
for print.

This customer service e-book: Customer
loyalty will lead to the reader receiving
more knowledge and skills to help them
upgrade their knowledge.

6

Concept

Customer service is the service you
provide to your customers both before
and after they purchase and use your
products or services, allowing them to
have a simple and happy experience with
you.
If you want to keep customer and expand
your business, you must provide excellent
customer service.
Customer service today extends far
beyond the usual phone support worker.
It can be accessed by email, the web, text
messaging, and social media.

7

CWUSHTAOTMISER

8

What Is Customer?

A customer is an individual or business
that purchases another company's
goods or services. Customers are
important because they drive revenues,
without them businesses cannot
continue to exist.
All business compete with other
companies to attract customers, either
by aggressively advertising their
products, by lowering prices to expand
their customer bases, or by developing
unique products and experiences that
customers love.

9

What Is Customer?

1 2

The way businesses treat Some businesses closely
their customers can give monitor their customer
them a competitive edge. relationships to identify ways
to improve service and
products

3 4

Customers are the individuals Consumers can be
and businesses that customers, consumers are
purchase goods and services defined as those who
from another business. consume or use market goods
and services.

10

WWHHAATT IISS
CCUUSSTTOOMMEERR

LLOOYYAALLTTYY

11

What Is Customer Loyalty

Customer loyalty is a measure of a customer’s
likeliness to do repeat business with a company
or brand. It is the outcome of a business's
customer satisfaction, great customer
experiences, and the total value of products or
services the company provides.

Loyalty also means that customer is sticking to the
supplier on certain grounds though he may be
having other options also.
Such loyal customers tend to spend more money
buy more, buy longer and tell more people about the
product or supplier.
This type of long-term customer loyalty can only be
created by making the customers feel that they are
number one priority with the supplier.

12

What Is Customer Loyalty

Creating loyal customers as a tour operator is different to
a lot of the travel industry, and requires new ways of
satisfying customers enough that they become
promoters of yours and rebook.

Even customers who are part of loyalty programs shop
around on more than 3 different websites* before
making a booking decision, even if they are a top tier
loyalty member, which shows how little ‘loyalty’ really
means for consumers these days.

There are however ways that you can start building up a
better understanding about what your customers want,
what they enjoyed about your company and service, and
the areas in which you can improve

Creating loyal customers isn’t straight forward. What we
do know, however, is that using the right travel
technology can encourage customer loyalty, receive more
referral business, and ultimately improve your bottom
line.

13

14

IMPORTANCE OF
CUSTOMER
LOYALTY

15

Importance Of Customer
Loyalty

Increase Revenues

The growth (or increase) in a company's
profits from one period to the next is
referred as the revenue growth. Revenue
growth, shown as a percentage, depicts
the gains and reductions over time,
indicating company patterns.

Customer Retention

Customer retention is a company's capable
of converting customers into returning
customers and keep them from leaving the
company to a competitor. It tells whether
company product and service quality satisfy
your existing customer. It is also the lifeline
of the majority of subscription-based
businesses and service providers.

16

Importance Of Customer
Loyalty

Cross- Selling

Cross-selling is one of the most effective marketing
strategies. Selling different kinds of investments or
goods to customers or tax preparation services to
retirement planning customers are instances of cross-
selling in the financial services business.
Cross-selling to current customers is one of the most
common ways for many companies, including financial
advisors, to generate additional revenue.

17

Importance Of Customer
Loyalty

Service Customization

Any service that is tailored to the demands of specific
customer is considered customized.
Customized services are becoming more common in
businesses. Also, the majority of customers today expect
companies with whom they do business to give a
customized content.
inability to provide personalization may have a negative
impact on the customer experience.

Cost Saving

A cost-saving strategy can be described as an
action or a systematic strategy.
Companies with prudent financial policy
have several methods in place to ensure that
any purchase or investment is made in a
cost-saving manner. This method is mostly
performed at the purchase department from
an organization's standpoint.

18

BENEFITS OF
CUSTOMER
LOYALTY

19

Benefits Of
Customer Loyalty

Drive repeat business

Though it may go without saying,
loyal customers are the most likely
to keep coming back to purchase
from your business.

Increase Revenue

once a customer likes and trusts
the quality of your brand, they’re
more likely to purchase in higher
quantities.

Create Brand
Ambassador

Happy customers are likely to tell
friends and family about your
business and your products,
essentially advertising and
spreading good graces on your
behalf.

20

Benefits Of
Customer Loyalty

Defend Against The
Competition

Be sure to keep your loyal customers
happy with great customer service
(and a great loyalty program) so they
continue to purchase from your
business and not your competitors.

Gain Valuable
Feedback

loyal customers will not mind taking
the time to share valuable feedback
that you can then turn into actionable
marketing tactics.

21

CHAPTER 2
UNDERSTANDS

YOUR
CUSTOMER

22

Types Of
Customers

23

1 2

Loyal Customer New Customer

3 Types 4
Of Customer
Potential Need Based
Customer Customer

5 6

Discount Wandering
Customer Customers

24

Types

OFCustomer

01 02

Loyal Customer New Customer

This is your most valuable client. A new customer is an entity (a
They have purchased your goods person, business, or other
and continue to purchase it. They organization) who has not
disseminate knowledge about previously purchased one's goods
your goods via word-of-mouth and or services but has recently done
social media networks. You may so. If someone buys something
increase their enthusiasm for your from your company who has never
goods by making them brand bought anything from yours
ambassadors. You should also before, he or she becomes a new
provide them with a venue where customer. They are a potential or
they can express their enthusiasm prospective customer till that time.
for the product.

03

Potential Customer

A potential customer is
someone who has the
potential becoming a
purchaser of a company's
products and/or services.
Understanding your Potential
Customers, or those that are
likely to buy from your
company, personalises your
communication materials
accordingly.

25

Types

OFCustomer

04

Need Based Customer

Need-based customers will be
more likely by a specific need. In
other words, they rush into the
store, get what they need, and
then leave. These customers are
difficult to upsell because they are
buying for a specific necessity or
event. It is important to recognize
that customers who have a
certain demand can be simply
driven to other businesses.

05 06

Discount Customer Wandering Customer

Discount customers are Wandering customers drive
important to the circulation the most visits to the
of a company's inventory. As company while accounting
a result, discount customers for the least percentage of
are a major contributor to a sales income. They have no
company's cash flow. This special need or desire and are
type of customer seldom drawn to the firm mainly
buys products at full price because of its location. These
but rather looks for the best customers like the social
markdowns. connection that comes with
shopping.

26

27

TIMING IS
IMPORTANT

28

Importance

Of time management

Be intentional: keep
a to-do list
Be prioritized: rank
your tasks
Be focused: manage
distractions
Be structured: time
block your work
Be self-aware: track
your time

29

Importance

Of time management

Be intentional Be prioritized
keep a to-do list - Making a Rank your tasks - Prioritize
to-do list may not appear your tasks. It leads you
to be a revolutionary through the day's activities
strategy, but it is one of the in order of priority, ensuring
most best techniques to that the most important
become more productive. chores are completed first.
The finest to-do lists When prioritizing your
include a variety of chores, duties, always prioritize
including fast and urgent what is most essential to
tasks that can be you. Determine which tasks
accomplished in 10 and activities are high-value
minutes and larger, and will have the most
operational duties that are impact on you, your job, and
ongoing. your team.

Be focused
Anyone become
distracted, despite our
best intentions. From
social alerts to chatty
coworkers, not to
mention the real human
problem of
procrastination, sitting
down and getting things
done is nearly always
more difficult than it
should be. In order to
maintain your flow and
focus, you must
successfully control your
distractions.

30

IMPORTANCE

OF Time Management

Be structured Be self-aware

Time block your work- A Track your time - you can't
well-structured plan is change how you use your
essential for completing the time unless you understand
tasks you set for yourself. It how you use it in the first
allows you to set aside time place. Tracking your time is
for your task and creates a important here because it
healthy incentive to finish it. provides the insight and
Time blocking is one of the self-awareness needed to
most effective methods for make effective changes by
accomplishing this since it revealing hidden time
prevents one work from drains, highlighting
taking over your entire day inefficient procedures, and
and keeps you from laying out your productive
habits. It can also be used
5.multitasking. to ensure that you stick
with your timetable.

31

GENERATE
CUSTOMER LOYALTY

32

Improve your Determine the
customer best
experience
communication
channel

Generate
Customer Loyalty

Maintain voice, Develop a
tone, and language reward
program
at every
touchpoint


Consider
different payment
plans

33

Generate Customer
Loyalty

Improve your customer experience

Customers remember when they are treated well
and when they are treated poorly. In any
scenario, they frequently notify their friends
and family, which can imply more business for
you or lost business potential for you. It is
critical to go above and beyond for your
customers, to pay attention, and to identify any
areas where you can improve their experience.

Determine the best communication
channel
Frequent communication with your customers
keeps you in their minds and allows you to pass
on essential information, but it's important to
know which platforms and types of
communication are best for them.

Email
Social media
Phone calls

Develop a reward program

Giving extra benefits to your most loyal
customers is one of the best and possibly one
of the cheapest ways to reward customer
loyalty. This additional benefit might take
several forms depending on what works best for
you and your company. Among the most common
reward systems are:

Point program
Spend program
Exclusive VIP Program

34

Generate Customer
Loyalty

Consider different
payment plans
This idea worked because it helped
customers by making monthly payments more
affordable, and it helped the company by
bringing in cash during a normally quiet
time of year. Customers were so pleased that
they frequently suggested the shop to others,
and the company's overall sales increased by
approximately 400 percent.

Maintain voice, tone, and language
at every touchpoint
Positive language, tone, and visuals are
needed for more than just in-store
interactions. Maintaining a consistent voice
and tone throughout your company
communications is critical not just to keep
your brand strong, but also to keep the
customer experience solid. Use specific
terminology and products in your internal
communications to prevent confusing potential
customers with conflicting information.

35

36

Metrics To Measure
Customer Loyalty

37

Metrics To Measure
Customer Loyalty

Net Promoter Repurchase
Score (NPS) Ratio





Upselling Customer
Ratio Loyalty Index


(CLI)
Customer Engagement

Numbers

38

Metric To Measure
Customer Loyalty

The first step in customer loyalty management is
measurement. We can compare, target, and improve by
evaluating customer loyalty. The following are the five most

effective ways.




Net Promoter
Score (NPS)




This is an extremely effective metric. First and foremost because it is
straightforward, but also because when you suggest a product, you are
putting your company's reputation at risk.
NPS categorizes your customers into 3 groups

Detractors - Customers will not suggest you to anyone, are unlikely
to purchase from company again, and may even harm your
company through negative word-of-mouth.
Passives- They are pleased, but not overjoyed enough to suggest
you. They will not harm you, they are not hunting for alternatives,
and they will most likely remain as long as they do not encounter a
problem.
Promoters- They are your adoring fans, the equivalent of the people
camped out in front of the Apple Store. They are more likely to
suggest you and purchase from you again.

39

Metric To Measure
Customer Loyalty

Upselling Repurchase
Ratio Ratio




The upselling ratio is calculated This metric compares the ratio of
by dividing the customers who repeat buyers to first-time buyers.
had many products by the Because a purchase is at the heart of a
number of customers who had a business relationship, this metric is a
single product. reliable indicator of consumer loyalty.
However, this statistic can easily
The greater the difference manipulated. If switching between
between the new product and providers requires a significant
the original product, the more amount of effort, for example, you may
important the indicator for have a large number of repurchases
customer loyalty. who would still switch if this effort was
reduced.

40

Metric To Measure
Customer Loyalty

Customer Loyalty
Index (CLI)



This is a standardized tool that includes the values of
NPS, repurchasing, and upselling to track customer
loyalty over time.
The disadvantage of the method is that you ask the
customer directly for their intention, which is less
trustworthy than measuring actual behavior. This
score has the advantage of include all of the loyalty
ratings. Furthermore, by sending this questionnaire
on a regular basis throughout time, you may
consistently track changes.

41

METRIC TO MEASURE
CUSTOMER LOYALTY

Customer Engagement
Numbers



According to Curtis N. Bingham, Customer engagement, on
the other hand, is a powerful predictor of loyalty and
profitability.
Customer engagement is the propensity of a customer to spend
discretionary time with a firm for mutual gain. It is more easily
measured, more easily influenced, and more deeply linked with
sales and profits than loyalty measurements like as Net
Promoter (NPS), Customer Loyalty Index (CLI), and others that
are poor proxies for revenue.

According to Bingham, great encounters and experiences with
your company lead to customer loyalty. These create emotional
relationships that protect your customers from the influence of
competitors.
According to Bingham, this results in customer engagement:

Stimulates repurchasing
Lowers price sensitivity
Promotes referrals

42

CHAPTER 3
SOLVING
CUSTOMER'S
PROBLEM

43

WHY
PROBLEM

OCCUR?

44

1 Failure to meet customer expectations
Client loyalty has been a difficulty for even firms who have
invested heavily in improving their service. Customers don't
care if the service is better than a year ago; they compare it to
comparable "best-in-class" businesses. If Amazon handles a
defective goods delivery quickly and without question,
customers will demand the same level of service from their
local supermarket.

2. Failure of loyalty programmers
Many businesses viewed the loyalty card as a quick way to
build client loyalty. In reality, recent studies show that loyalty
cards reduce profit margins for existing consumers, resulting
in a loss of money rather than a gain of loyalty.




3. Everything is now in plain sight
Thanks to smartphones and tablets, the world has never been
more transparent than it is now. More than half of buyers use
mobile devices to compare prices, making it simple to find a
better deal elsewhere.

45

4. Failing to pay attention to the entire customer
experience

When a corporation is divided into departments, each
department is responsible for a different aspect of the
customer relationship. There is frequently a lack of
communication between the sales and after-sales
departments, despite the fact that the finance department is
three levels down. According to study, inconsistencies and a
lack of understanding across these various touch points,
rather than client dissatisfaction with a single transaction,
have been shown to encourage disloyalty.

5. There is a distinct lack of consumer relevance
A disloyal customer is one who expresses displeasure with a
product or service that is no longer relevant to them. That
particular product or service did not stand out from the
competition because too little thought was given to what role
the brand should play in the customer's life. Instead of being
emotionally invested, the customer simply made a rational
decision.

46

HOW TO
HANDLE
PROBLEM?

47

Improve Skills And Service

Get to know your customers

1 Conduct research by asking customers questions
about the services provided. This information
can be matched with the company’s in -depth
knowledge of the product or service to solve
problems or provide clear answers. this, too,
allows the company to deal with customers
confidently and quickly.



2 Show empathy
When dealing with unsatisfied consumers,
consider how to address them with empathy.
Empathize with customers to solve their
problems holistically and personalise their
experience with the organisation.

3 Be a good listener
Employees must listen to all customer
grievances and expressions in order for them to
feel at ease. Companies should also employ
these abilities to empathise with customers in
order to understand their queries and concerns
before determining how best to assist them.

48

Improve Skills And Service

4 Ask if the customer understands
Employees should ask the consumer if they have
any additional questions about what has been
stated throughout the engagement. You can
examine your communication or simplify the
message if they don't understand what you're
saying.

Be personal
Use commitments to show clients that you

5 understand them and speak in a calm, polite
tone. If it's relevant to the topic, you might be
able to uncover common ground concerning
mutual interests or experiences in some
situations. This mode of communication can aid
in the development of a respectful and friendly
relationship.



49

Improve Communication Skills

01 Customize the interaction
Employees should make an effort to introduce
themselves, address clients by name, and inquire
about how they can help in a genuine manner.
Customers should be able to sense the agent's desire
to help them, thus a warm tone on the phone and
nice phrases in written correspondence are essential
for a personalized experience.

02 Avoid negative phrases
Customers that are dissatisfied want to know that their
problem can be solved. Employees who may not have an
immediate response should avoid using language that
indicates a lack of problem-solving skills or
comprehension. Negative language can lead a customer
to lose faith in a firm as well as dissatisfy him.

03 Use positive language with a touch of empathy
Employees that speak positively and confidently have
a greater chance of calming and satisfying customers.
This would be more persuasive, proactive, and
compassionate, as well as reestablish client trust.

04 Listen carefully and avoid disturbing the customer
05 Before offering a remedy, personnel should always
welcome customers to thoroughly describe their
problems. Customers that are obnoxious will express
disdain or empathy for the problem, so it's crucial to
let them speak and respectfully offer a solution when
they're ready to hear it.

Use a consistent brand vocabulary
Using consistent brand words that customers understand is an
important part of efficient customer service communication.
When staff connect with customers, they should utilize the same
vocabulary used on the company's website, mobile apps, IVR
menu options, and social media sites to describe the product or
service.

50