Although customer complaints are commonly dreaded

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(1) How much is a customer worth over a lifetime of buying? The text in Chapter 12 tells us the longer a customer purchases from a services organization, the more valuable the customer to the success of the organization. Is it any wonder organizations have designed customer loyalty programs to ensure the customer stays? Identify at least two types of customer loyalty programs and assess their effectiveness, including specific examples of each.

(2) Although customer complaints are commonly dreaded, the feedback from the customer can actually give the services organization an opportunity to improve its quality of services and build customer loyalty. The manner in which a complaint is handled, however, will determine whether or not such a positive outcome is achieved. Discuss what customers want once a complaint has been made, and the steps the services organization can take to ensure a positive outcome. Illustrate your comments with a specific example of a complaint that you have made or received (or seen made or received) and how it was handled. Did it have a positive outcome?

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