Outcome 5 - Customer Service1 The importance of providing effective customer service Customer service is important because:  The customer can go elsewhere  It costs a business more to attract a new customer than to retain an existing customer  Unless a business has a MONOPOLY or is in a NICHE MARKET, it will have competitors offering similar products at similar or lower prices  The quality of customer service will help a business to retain customer loyalty  Customer service is about giving ADDED VALUE to a customer’s experience when using the organisation … going that extra mile will make the customer return for the experience  A business has to care for EXTERNAL customers and INTERNAL customers (employees)  Customer service is about satisfying needs and retaining loyalty to the organisation

Outcome 5 - Customer Service2 The Mission Statement The Mission Statement outlines the main aims and focus of a business and will usually include a general statement regarding quality and standards. Use the internet to obtain the Mission Statements of the following companies:  Marks and Spencer  Ryanair  The Royal Bank of Scotland  Asda  Morrisons  McDonalds  Easyjet  UCI Cinemas  Bradford & Bingley Building Society  Nike

Outcome 5 - Customer Service3 Customer Service Strategy/Policy CUSTOMER SERVICE STRATEGY … a written statement of broad principles relating to organisational customer service CUSTOMER SERVICE STATEMENT OR PROMISE … directed at customers and may detail what they should expect in terms of how the organisation will deal with them, deadlines and quality of service. Some organisations promise penalty payment if they do not meet their promised deadlines SERVICE STANDARDS … staff guidelines for dealing with external customers eg how many times telephone may ring before it must be answered, greeting to be given to customers, time to be taken to deal with a customer COMPLAINTS PROCEDURE … formal procedures for customers when making a complaint or for staff in an organisation when dealing with a complaint … many customers will remain with an organisation following a complaint IF their complaint is dealt with in the right way

MONITORING AND EVALUATING CUSTOMER CARE Mystery shopper Satisfaction surveys Customer focus group Loyalty cards Market research Quality management systems

Monitoring and Evaluating Customer Care and Satisfaction Written SurveysTelephone Surveys Membership groupsMystery shopper Focus groupFace-to-face interview Suggestion schemesVideo booths Freephone linesSatisfaction survey Market researchLoyalty cards Quality Management Systems Outcome 5 - Customer Service5

6 MARKET RESEARCH … used to gain information on the marketplace … analyses the product, price, competition and customer attitudes to the service they receive … this is done by using CUSTOMER FOCUS GROUPS or CUSTOMER SATISFACTION SURVEYS LOYALTY SCHEMES … loyalty cards, frequent air miles, discounted petrol, etc offered to customers as a reward for loyalty to the company’s service or product(s) … these are aimed at retaining customers by showing how much they are valued QUALITY MANAGEMENT SYSTEMS … Total Quality Management (TQM) has been adopted by many organisations to instil a quality culture which is the responsibility of all staff

Task Research and take notes on the following:- Focus Group Mystery Shopper Outcome 5 - Customer Service7

8 Customer care EXTERNAL CUSTOMERS oAppropriate behaviour … formal with right level of politeness and courtesy oCommunication … it is vital that customers are kept informed oHonesty and Trust … customers appreciate honesty … even if it is bad news … trust is vital in good customer relations oApproachability … a pleasant manner, positive body language and welcoming smile make for good customer service oStay within boundaries … decisions must be made within an organisation’s systems and procedures INTERNAL CUSTOMERS  Treat internal customers with the same level of service as external customers  Employees must adopt the correct behaviour and stay within the limits and scope of your responsibilities  Use service-level agreements to establish standards between departments at work  It is vital that employees can see how their part in an organisation links to other parts rather than viewing their work in isolation

Outcome 5 - Customer Service9 Communication with Colleagues and Customers It is crucial that an organisation communicates with its customers. Most communication involves listening and speaking and the the impact comes from:  the words we use … importance 7%  the tone of our voice … importance 38%  our body language … importance 55%

Outcome 5 - Customer Service10 Methods of Communication FACE-TO-FACE … often preferred because: gives immediate feedback uncertainties identified and immediately clarified very personal easier to recall customers’ faces allows relationships to develop INCOMING AND OUTGOING DOCUMENTS …  must be dealt with promptly  customer must be kept informed at all times  must be accurate, well-presented, well written and timely  standard documents should be personalised TELEPHONE … the advantages include:  customers do not need to leave home  useful for general or brief enquiries  relatively cheap in terms of cost and time  usually takes less time than a face-to-face meeting … increasingly popular because:  messages can be sent quickly to large numbers of people  less formal than letters  possible worldwide, 24/7  can be received when staff out of their office  can compose a draft before sending  can be marked URGENT, can be FLAGGED WRITTEN …  creates a record  confirms understanding  provides reassurance and confidence  allows the customer time to read and understand WEBSITES … can be used to:  promote business  liaise with customers  selling a service or product  providing information for customers  obtaining information

Outcome 5 - Customer Service11 Benefits of effective customer service to an organisation Customer loyalty Satisfied customers Satisfied and motivated staff Low staff turnover Reduced costs Good reputation Competitive edge Increased market share

CONSEQUENCES OF POOR CUSTOMER CARE Demotivated staff Dissatisfied customers High staff turnover Poor reputation Downfall of the organisation