The Importance of Valuing Customers - Essay Example

Introduction Over the past years, the participants of sports and fitness activities have increased and stabilized. As a result, fitness and sports organizations and facilities have experienced increased competition in attracting and maintaining customers. Customer handling and quality service to the customers, therefore, remains to be the central defining factor for fitness and sport business to succeed in the industry. Consequently, valuation of customers requires that the organizations understands the fundamental customer care skills. The fitness and sports facilities need to provide services that correspond to the needs of their customers by getting rid of the gaps between what the customers receives and what they expect (Rhys, Oakley, Power, & Sinka 2008). Hence, the most essential concept in valuation of customers is the organization’s capacity to measure, predict, and influence the business value of their customers (Soman & N-Marandi 2010). This paper is a discussion of how Halo Leisure, manages sport and fitness facilities for the county of Herefordshire in England. They value their customers and this gives them an advantage over other fitness and sport organizations in the country. Furthermore, the paper outlines the measures that could be taken to improve the satisfaction of members in a sports club. The customer care issues addressed in the paper include market research and feedback, the customers’ expectations and experiences, the staffing issues, customer satisfaction, and retention. Application of the Elements of the Marketing Mix in Halo Leisure Market Research and Feedback Market research is used by organizations to inform them of the most appropriate methods or ways to accomplish their aims by offering their services according to the expectations of the customers. According to Bolton & Tarasi (n.d), improved customer care in organizations is aimed at increasing the revenues, the value of the shareholders, and profit margins using certain marketing activities, such as marketing research. Therefore, the organizations need to, critically, understand the value of their customers, which the organizations derives from them and that which the organizations presents to them (Njenga 2010). Therefore, Halo Leisure uses the market research and feedback to attract more customers by delivering services that meet their expectations. For instance, Jon Arget, CEO Halo Leisure, states that the considerable increase in growth and development of an organization is attributed to the changes implemented in the organization according to the needs and wants of customers in certain customer care elements. He affirms that Halo Leisure is different from other sport and fitness facilities because it carries out market research to identify the needs and wants of its customers and ultimately improves the gaps between what the organization offers and what the customers expect. The Centre Manager, Hadyn Roberts, reports that the customers are treated according to their expectations. This implies that the customers must be offered a warm and friendly welcome the moment they walk through the door as well as attending hygienic and secure facilities. These needs are captured by the customer feedback programs, such as Tell, Smile, inform of texts, electronic mails, and customer hotlines. The feedback effects from the customer behaviors and organizational actions are decisive in meeting the needs of the customers if quickly and effectively implemented (Gale 2010). The feedback from the customers helps the staff at the Halo Leisure to determine wants and needs of customers in leisure centers. They, therefore, evaluate the feedback and swiftly respond to the issues raised. Customer feedback helps in improving the quality of services delivery to the customers (Select Knowledge 2000). The response and observations of the customers have significant implications in providing quality services according to what the target market desires. Customer interactions with an organization is an indispensable element in providing value for customers. This is because only satisfied customers frequently visit a given facility to use it more (Bitran, Oliveira, & Schilkrut 2008). Customer Expectations and Experience The customer experience is particularly influential in defining their orientation towards the services and products they consume. A positive experience by the customer in an organization or facility inclines him or her to revisit the facility for the same service and promote the proper experience received to other potential customers. Thus, the organization retains the customer and may get more out of the good words from the retained customer. In contrast, when customers experience negative services from a given facility, chances that they would revisit the same place for the services are low. In addition, the customer may spread the word on the negative experience to other customers, leading to loss of potential targets (Rhys, Oakley, Power, & Sinka 2008). When the expectations of the customers fail to meet the experiences they receive at the facility, then their satisfaction level on the service offered declines (Kessler 1996). The customer experience and expectation can be obtained through surveys and feedbacks. Consequently, the gaps identified between the experiences of customers and their expectations can be bridged to ensure that the customer is always satisfied with the services and experiences received from the facility. As mentioned earlier, this would be essential and beneficial to the facility because they would retain their customers and increase the customer’s base. Halo Leisure uses costumer experiences and expectations to create value for their facilities. This is visible when the CEO points out that customer care is the unique characteristic of the organization. The organization thus links the wants, needs, preferences, and the expectations of the customers to achieve the aims of the facility (Ryals 2008). Halo Leisure recognizes that problems and errors are inevitable in organizations. However, they ensure that the customers’ experience, when a problem occurs at the organization, surpasses their expectations. The faults that customers may point out are resolved quickly, and an Oops card is presented to them as an apology to establish a positive experience of the services offered within the facility. When introducing new services to meet the leisure centre demands of the population, customer expectations are necessary to boost their satisfaction (Schiller, Miller-Kovach, & Miller 1994). For example, when considering introducing Yoga activities, the medical conditions of the customers were included in their programs, such as availing medical staff to cater for heart attack patients. This eventually translates its high quality services to customers. Staffing Issues The staff is an extremely significant part of an organization in ensuring that the aims of the organization and promises made to the customers are accomplished. The staff thus is essential in determining if the customer promises are fulfilled or not. The fitness and sport customers require staff members who demonstrate high quality of human interactions, such as empathy, assurance, and responsiveness. These qualities are supremely valuable in the staff because the sport and fitness setting depends on interpersonal communication and relations (Rhys, Oakley, Power, & Sinka 2008). Halo Leisure uses the staff to help in fulfilling its promises to the customers. This is achieved through ensuring that the staff appropriately understands the customer care issues and the methods and strategies used to meet the targets. Through this method, the staff may go beyond their normal duties and attend to customers in an excellent way. The star performer in the organization is rewarded to motivate other employees to achieve the same feat. This demonstrates an appreciation for the work outcome and the relationships that the staff have in the company toward offering excellent and quality services to the customers. The staff is also expected to take greater ownership of the service initiatives in customer care and to have increased involvement in decision-making processes. This is beneficial because when the staff is more involved with an organization, there is an increased possibility that the work outcomes and the relationship they have with the staff and the customers would be valued (Rhys, Oakley, Power, & Sinka 2008). Therefore, because the staff is continually in touch with the customers, Halo Leisure uses them to seek constantly for feedback from the clients on their experiences and expectations on services and products available at the centre. When developing new brands to better serve the needs and wants of their customers, the organization consults with the senior management and the staff, to get a better idea of what is expected. The staff suggestion schemes inspire the staff in the organization to come up with ideas and concepts that when implemented make them feel more close to organization; hence, effectively taking responsibilities of the work outcomes. Measures To Improve Member Satisfaction of Brighton and Hove Gymnastics Club Customer Satisfaction The members of Brighton and Hove Gymnastics Club may be dissatisfied because their expectations do not match the services delivered to them in the gymnasium. The management of the sports and fitness facility does not seem to understand the members’ needs appropriately. Therefore, the services offered to the members often fall below their expectations; their needs and wants are not met. For the facility to resolve the issue of member dissatisfaction, they ought to invest in understanding their customers. The gymnasium should conduct surveys and carry out a market research to identify what their members need and what the market expects of the leisure centers (Rhys, Oakley, Power, & Sinka 2008). Furthermore, the members are not satisfied that the facility does enough to ensure that the hygiene, health, and the status of the equipment are in line with the demands of the customers. The members complain that some programs have not taken into consideration the medical perspective of the participants; hence, not enough medical personnel are available to respond to medical emergencies. The organization should, therefore, ensure that all its programs cater for various needs of diverse members. This is easily achieved through incorporating the needs of the members in new programs (Rhys, Oakley, Power, & Sinka 2008). Customer Retention The sports and fitness facilities expect that the members joining the center continue enjoying the services they provide. Therefore, retaining the new and old members of the club is an immensely critical element in the business of these facilities. However, members who are dissatisfied with the quality of services and the value given to them may often leave the clubs. The club lacks an effective means of tracking all the members, hence it cannot keep track of the departing members. As a result, the club should invest in powerful electronic point of sale systems that keep all the customer information in the database and keep communicating with the members through texts and mails (Rhys, Oakley, Power, & Sinka 2008). Moreover, the club, through tracking of its members, should identify the loyal members, such as those who frequently use their services, and reward them to help in motivating them to be part of the club (Rhys, Oakley, Power, & Sinka 2008). Programs such as lifetime members ought to be established, and members recruited in the program at discounted rates. When members report problems during their visit at the club, the management should initiate faster are reliable means to resolve the issues and present the members with a positive experience to keep them at the club. For example, they may be offered a two day free entry ticket as an apology over any unwelcoming incident experienced. This would help in retaining old members and attracting new ones. The way the club staff handles and interacts with the club members is extremely beneficial in shaping the orientation of the customers toward the facility. The attitude of the customer defines whether they visit the premise again or seek those services elsewhere (Hayes & Dredge 1998). Retaining the existing customer base is cheaper than recruiting new customers. The staff should, therefore, listen carefully to the problems of the members, handle them with attention, and be responsive to their needs. When all these factors are considered, the satisfaction level of the members would rise and eventually they will continue visiting the facilities for their services because of the excellent customer relationship experience in the club. Customer Expectations The customer expectations are the needs and demands that the club should provide to the customer seeking services in the organization. When there is a gap between the expectations of the members and the actual services delivered, then the satisfaction level of the members drop and it becomes a problem for the club to retain its members (John 2003). The customer expectations also involve the facility effectively meeting the promises set out to customers. When the club fails to accomplish those expectations, the expectations of the customers are compromised. To resolve the issues of customer expectations, the leisure facility is supposed to use feedbacks from the customers’ responses to prioritize the needs of customers, and identify the problems they encounter. Consequently, they would be able to implement the changes and succeed in meeting the expectations of their members in the gymnasium (Shaw & Ivens 2005). Conclusion From the discussion, customer care and management are the most fundamental elements in the sport and fitness business in the present world. The quality of services offered to the customers shape their orientation and is imperative in defining their satisfaction levels. The sport and fitness centers ought to invest in strategies used to identify and attract the potential customers, satisfying their needs and wants, and finally retaining them through loyalty programs. This is because of the strong competition experienced in the industry. Thus, facilities that invest in customer care enjoy a competitive advantage over their competitors. References Bitran, G. R., Oliveira, P. R., & Schilkrut, A. (2008, April). Managing Customer Relationships Through Price and Service Quality. Retrieved April 4, 2012, from http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1264933_code361123.pdf?abstractid=1264933&mirid=1 Bolton, R. N., & Tarasi, C. O. (n.d). Managing Customer Relationships. Retrieved April 4, 2012, from http//www.ruthnbolton.com/Publications/01Malhotra-V3-Chap1.pd Gale, B. (2010). Managing Customer Value: Creating Quality and Service That Customers Can See. Simon and Schuster. Hayes, J., & Dredge, F. (1998). Managing customer service. Brookfield, Vt., USA : Gower. John, J. (2003). Fundamentals of customer-focused management: competing through service. Westport, Connecticut: Praeger. Kessler, S. (1996). Measuring and managing customer satisfaction: going for the gold. Milwaukee, Wis : ASQC Quality Press. Njenga, K. (2010). The Increasing Focus on Managing Relationships and Customer Retention. The Journal of Language, Technology & Entrepreneurship in Africa , 2 (1), 85-92. Rhys, M., Oakley, B., Power, T., & Sinka, I. (2008). Introduction to sport, fittness and management Study Guide. Walton Hall, Milton Keynes: The Open University. Ryals, L. (2008). Managing Customers Profitably. Hoboken, NJ : John Wiley & Sons. Schiller, M. R., Miller-Kovach, K., & Miller, M. A. (1994). Total quality management for hospital nutrition services. Gaithersburg, Md. : Aspen Publishers. Select Knowledge . (2000). Managing for Quality. Cambridge: Select Knowledge Limited. Shaw, C., & Ivens, J. (2005). Building great customer experiences. New York : Palgrave. Soman, D., & N-Marandi, S. (2010). Managing Customer Value: One Stage at a Time. Hackensack, NJ : World Scientific Publishers. Read More