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Moments of Truth

In: Business and Management

Submitted By erarchit007
Words 1535
Pages 7
Moments of Truth

Mocha – Coffees and Conversations

Submitted by – Group 5

Table of Contents

About Moments of Truth 3
About Mocha 5
Moments of Truth 6
Decisions as a CEO 9

Moments of Truth
Customer Moment of Truth (MOT) can be defined as “In customer service, instance of contact or interaction between a customer and a firm (through a product, sales force, or visit) that gives the customer an opportunity to form (or change) an impression about the firm. Managing reputations and managing problems are especially important for service organizations. Services sell intangibles, through expectations and promises of what is to come. A critical moment, which forms or destroys the relationship with customers, is a “moment of truth” for service organizations; this is the point where the customer and organization come together.
In recent years, mature companies with far-flung networks of frontline sales staff—banks, retailers, airlines, and incumbent telecom providers, for example—have devoted a great deal of money and effort to retaining their current customers. As many academic studies have noted, the costs of doing so tend to be much lower than those of acquiring new ones.
The success of this strategy ultimately depends on expanding the breadth and depth of customer relationships and on translating the resulting loyalty into higher sales of goods and services, as well as a healthier bottom line. We believe that many businesses are falling short.
Although companies are investing record amounts of money in traditional loyalty programs, in customer-relationship-management (CRM) technology, and in general service-quality improvements, most of these initiatives end in disappointment.

Companies that handle Moments of Truth well will tend to have the following five (5) characteristics:

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