2.10 Customer Service Operations Management Developing Effective Operations: Customer Service “Don’t confuse consistency with quality. The customer decides what quality is by their own standards.” Geoff Burch “ Your most unhappy customers are your greatest source of learning.” Bill Gates

2.10 Customer Service Developing Effective Operations: Customer Service In this topic you will learn about: Methods of meeting customer expectations Monitoring and improving customer service The benefits of high levels of customer service

2.10 Customer Service What is customer service? Customer service is the interaction between a business and actual or potential customers before, during and after sales. Customer service is designed to meet, or even exceed, customers’ expectations. Customers’ expectations will vary depending on The nature of the product Complexity Involvement Customers’ experiences Reputation of the business You will need access to the internet to watch this short cartoon clip

2.10 Customer Service Methods of meeting customer expectations – Market Research Market Research – what better way to understand what customers want than to ask them? You need to understand your customers’ expectations before you can consider how to best meet them. Market Research methods could include Focus groups Questionnaires In depth interviews Industry standards

2.10 Customer Service Methods of meeting customer expectations – Training It is employees who will be dealing with the customer Face to face Over the phone Written communication Employees need to be equipped with the right skills, knowledge and responsibility to meet customers’ expectations Employees need to be motivated to want to provide good customer service You will need access to the internet to watch this video clip What training should be given to waiting staff in a restaurant? How should this training be given? How important is it to have well trained staff in a restaurant? Justify your answer

2.10 Customer Service Methods of meeting customer expectations – Quality assurance and control These concepts can be linked to customer service i.e. having systems and checks in place to ensure the customer gets a quality service Ease of checking in to a hotel The correct meal delivered to your table on time Attention from the retail assistant in a shoe shop Accurate advice in a garage Fair pricing on a quote from a decorator You will need access to the internet to watch this video clip Should British Gas invest some of its profit into improving customer service? In these circumstances would a quality assurance system have resolved the issue?

2.10 Customer Service Methods of meeting customer expectations – Quality Standards Achieving a quality standard means the customer knows what to expect Quality standards must be monitored to ensure continued compliance Quality standards are audited by an independent third party You will need access to the internet to watch this video clip Michelin stars are not applied for but awarded – is this a quality standard? What does a Michelin star restaurant have to do to meet customers’ expectations? Watch the video – how do quality standards add pressures to a business?

2.10 Customer Service Monitoring and improving customer service Businesses should monitor their customer service on a continual basis. Levels of service should be consistent But what if customer expectations change? Methods include Customer satisfaction survey On line Paper based Focus Groups Mystery shopper Feedback logs Sometimes it is as simple as just asking the customer (and maybe recording their response) Study the Flybe customer satisfaction survey How effective do you think this would be in collecting useful customer feedback? How might Flybe use these results to improve the service provided to its customers? An online survey may not be an appropriate method of market research for a small independent restaurant. Suggest and justify an appropriate method of finding out about customers’ expectations

2.10 Customer Service Monitoring and improving customer service Monitoring customer satisfaction is in effect pointless unless the results are studied and appropriate action taken. Actions could include More training Changes to policies and practices Investment in upgraded facilities Rewarding employees Gaining accreditation You will need access to the internet to watch this video clip Identify the key areas of Scot Rails customer service that need to be improved. What corrective action would you recommend? Powergen moves call centres back to the UK to improve customer service. Is there conflict between customer service and cost minimisation?

2.10 Customer Service The benefits of high levels of customer service Repeat custom Statistics suggest that the cost of keeping a customer is only 1/10 th that of gaining a new one Increase positive PR and decrease negative Word of mouth Reviews Endorsements Unique Selling Point Competitive advantage Staff motivation Business reputation

2.10 Customer Service Activity – using customer service to improve performance Identify in each of the following situations how the business could use customer service to improve performance A taxi driver operating from the train station in Brighton A national DIY store such as B&Q An independent tyre and exhaust centre A dentists’ surgery in your community A fine dining restaurant in London A courier service For one of the above examples or an example of your choice prepare a short presentation to be given to new employees as part of their induction training.