1. Chapter 1: The Customer Service Profession Instructor: Mr
Chapter 1: The Customer Service Profession Instructor: Mr. Leon Roberts Contact: Website: leon-roberts.com

2. Learning Outcomes 1-1: Define customer service.
1-2: Describe factors that have impacted the growth of the service sector in the United States.
1-3: Identify the socioeconomic and demographic changes that have influenced customer service.
This chapter introduces the concept of customer service to the student.

3. Learning Outcomes
1-4: Recognize the changes in consumer behavior that are impacting service.
1-5: List the six major components of a customer-focused environment.
1-6: Explain how some companies are addressing the changes impacting the service sector.
This chapter introduces the concept of customer service to the student.

4. What is Customer Service?
Define
The ability of knowledgeable, capable and enthusiastic employees to deliver products and services to internal and external customers
What Is the service industry?
The definition of customer service really depends on the type of business
A service industry is one that engaged in service delivery, rather than working with products
Product
Something produced or tangible
LO 1-1
Defining customer service
The ability of knowledgeable, capable and enthusiastic employees to deliver products and services to internal and external customers
Service industry
The definition of customer service really depends on the type of business
A service industry is one that engaged in service delivery, rather than working with products.
Product
Something produced or tangible

5. Customer-Focused Organization
Define
A company that focused and spends effort by insuring great service
Characteristics of a customer focused organization
Internal Customers
Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special
Management and systems support and appropriately reward employee efforts to serve customers
LO 1-1
Customer focused organizations
A company that focused and spends effort by insuring great service
Characteristics
They have internal customers (for example, peers, co-workers, bosses, subordinates, and people from other areas of their organization) and/or external customers (for example, vendors, suppliers, various telephone callers, walk-in customers, and other organizations, others not from within the organization).
Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special. Information, products, and services are easily accessible by customers. Policies are in place to allow employees to make decisions in order to better serve customers.
Management and systems support and appropriately reward employee efforts to serve customers.
Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to the customer.
Continual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness and implementation of best service practices by the organization.
The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to support business operations.
They build relationships through customer relationship management (CRM) programs.

6. Customer-Focused Organization
Characteristics of a customer focused organization (contd)
Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to the customer
Continual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness and implementation of best service practices by the organization
The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to support business operations
They build relationships through customer relationship management (CRM) programs
LO 1-1
Customer focused organizations
A company that focused and spends effort by insuring great service
Characteristics
They have internal customers (for example, peers, co-workers, bosses, subordinates, and people from other areas of their organization) and/or external customers (for example, vendors, suppliers, various telephone callers, walk-in customers, and other organizations, others not from within the organization).
Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special. Information, products, and services are easily accessible by customers. Policies are in place to allow employees to make decisions in order to better serve customers.
Management and systems support and appropriately reward employee efforts to serve customers.
Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to the customer.
Continual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness and implementation of best service practices by the organization.
The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to support business operations.
They build relationships through customer relationship management (CRM) programs.

7. Customer Service Historically
The service sector
What is it?
Historical customer service
Cottage industries
Shift to service
LO 1-1
Service sector
By census bureau includes transportation, retail, wholesale
Historically customer service has always been around
Cottage industries included people starting businesses from their home
We are shifting to a service economy, that is, one that relies on services rather than production of products

8. Customer Service Historically
The service sector
LO 1-1
Service sector
By census bureau includes transportation, retail, wholesale
Historically customer service has always been around
Cottage industries included people starting businesses from their home
We are shifting to a service economy, that is, one that relies on services rather than production of products

9. Growth of Service Sector
Job Growth
Jobs in service are expected to grow while goods producing occupations are expected to shrink
Economy
Overall quantity
Growth is projected
Distribution of jobs among industries, occupations, geographic areas and different size business
Telecommuting as a trend
More training and technology provided
Jobs may be more centered in major metropolitan area
LO 1-2
Jobs in service are expected to grow while goods producing occupations are expected to shrink
Economy is affecting jobs
Overall quantity
Growth is projected
Distribution of jobs among industries, occupations, geographic areas and different size business
Telecommunuting as a trend
More training and technology provided
Jobs may be more centered in major metropolitan areas
Quality of jobs, measured by wages, security and opportunities for development
Better paying jobs on the rise
Service sector tends to pay more than goods producing
Different skills are needed
Education is needed

10. Growth of Service Sector
Quality of jobs
Quality of jobs, measured by wages, security and opportunities for development
Better paying jobs on the rise
Service sector tends to pay more than goods-producing
Different skills are needed
Education is needed
LO 1-2
Jobs in service are expected to grow while goods producing occupations are expected to shrink
Economy is affecting jobs
Overall quantity
Growth is projected
Distribution of jobs among industries, occupations, geographic areas and different size business
Telecommunuting as a trend
More training and technology provided
Jobs may be more centered in major metropolitan areas
Quality of jobs, measured by wages, security and opportunities for development
Better paying jobs on the rise
Service sector tends to pay more than goods producing
Different skills are needed
Education is needed

11. Societal Factors Affecting Customer Service
Global economic shift
Economic indicators have been in turmoil, creating new needs
People tend to cut costs
Shifts in population
Higher population growth in some countries
Increased technology efficiency
New machines can work longer and faster
Technological advances can lead to increase in some jobs, but decrease in others
LO 1-3
Societal Factors Affecting Customer Service
Global economic shift
Economic indicators have been in turmoil, creating new needs
People tend to cut costs
Shifts in Population and labor force
Higher population growth in some countries
Increased Technology Efficiency
New machines can work longer and faster
Technology advances can lead to increase in some jobs, but decrease in others
Globalization of the economy
Trade barriers came down
Offshoring and outsourcing as a result-can help increase profit
Deregulation
The removal of governmental restrictions on an industry
Geopolitical
Political unrest, conflicts, wars and embargos
Limit access to product and that global market
Trade agreements can assist companies in finding cheaper labor in other countries
China’s increased need for services and products

12. Societal Factors Affecting Customer Service
Globalization
Trade barriers came down
Offshoring and outsourcing as a result—can help increase profit
Deregulation
The removal of governmental restrictions on an industry
LO 1-3
Societal Factors Affecting Customer Service
Global economic shift
Economic indicators have been in turmoil, creating new needs
People tend to cut costs
Shifts in Population and labor force
Higher population growth in some countries
Increased Technology Efficiency
New machines can work longer and faster
Technology advances can lead to increase in some jobs, but decrease in others
Globalization of the economy
Trade barriers came down
Offshoring and outsourcing as a result-can help increase profit
Deregulation
The removal of governmental restrictions on an industry
Geopolitical
Political unrest, conflicts, wars and embargos
Limit access to product and that global market
Trade agreements can assist companies in finding cheaper labor in other countries
China’s increased need for services and products

13. Societal Factors Affecting Customer Service
Geopolitical
Political unrest, conflicts, wars and embargos
Limit access to product and that global market
Trade agreements can assist companies in finding cheaper labor in other countries
China’s increased need for services and products
LO 1-3
Societal Factors Affecting Customer Service
Global economic shift
Economic indicators have been in turmoil, creating new needs
People tend to cut costs
Shifts in Population and labor force
Higher population growth in some countries
Increased Technology Efficiency
New machines can work longer and faster
Technology advances can lead to increase in some jobs, but decrease in others
Globalization of the economy
Trade barriers came down
Offshoring and outsourcing as a result-can help increase profit
Deregulation
The removal of governmental restrictions on an industry
Geopolitical
Political unrest, conflicts, wars and embargos
Limit access to product and that global market
Trade agreements can assist companies in finding cheaper labor in other countries
China’s increased need for services and products

14. Societal Factors Affecting Customer Service
White Collar Workers
Less farming, mining so more people work at traditional nine-to-five jobs
Women entering workforce
Shifting of traditional roles
Women’s incomes have risen but still not equal to the pay of men doing the same job
Diversity
Number of people from different cultures entering workforce
Traditions, customs are different
LO 1-3
More white collar workers
Less farming, mining so more people work at traditional 9-5 jobs
More women entering the workforce
Traditional shifting of roles
Women’s incomes have risen but still not equal to the pay of men doing the same job
Diverse workforce
Number of people from different cultures entering workforce
Traditions, customs are different
Older workers entering workforce
Median age is rising because of baby boomers
Many older people working traditionally “younger” jobs
Ecommerce
Growth of online transactions

15. Societal Factors Affecting Customer Service
Older workers
Median age is rising because of baby boomers
Many older people working traditionally “younger” jobs
E-commerce
Growth of online transactions
LO 1-3
More white collar workers
Less farming, mining so more people work at traditional 9-5 jobs
More women entering the workforce
Traditional shifting of roles
Women’s incomes have risen but still not equal to the pay of men doing the same job
Diverse workforce
Number of people from different cultures entering workforce
Traditions, customs are different
Older workers entering workforce
Median age is rising because of baby boomers
Many older people working traditionally “younger” jobs
Ecommerce
Growth of online transactions

16. Consumer Behavior Shifts
New mindsets
Expectations
Customer Preparation
LO 1-4
Different mindset due to credit card debt
Cutting back approach
Expectation of quality service
Enhanced customer preparation
Better educated and able to do research before buying a product or service

17. The Components of a customer service environment
The Customer
Organizational Culture
Human Resources
Products and deliverables
Delivery systems
Service
LO 1-5
Components of a customer service environment
The customer
Internal customers are people who work for the organization, and your job is to provide information to them; coworkers, employees of other departments, etc.
External customers are the current or potential customers of a company
Organizational culture
An element of an organization that a customer encounters
Human resources
The process of recruiting, selecting, training and retaining the best people
Products and deliverables
The actual tangible or intangible the customer receives
Quality and quantity of product should meet expectations
Delivery systems
Refers to how the product is delivered to the customer
Service
How the customer is treated

18. How to address the customer service changes
Learning organizations
The small business perspective
LO 1-6
Addressing the changes
Learning organizations is a company who uses knowledge, education and training to continue growth and development of their organization.
Small business perspective
Customer service is usually most important to small businesses due to smaller budgets