1. Chapter 2: Contributing to the Service Culture

2. Learning Outcomes 2-1: Explain the elements of a service culture.
2-2: Define a service strategy.
2-3: Recognize customer-friendly systems.
2-4: Implement strategies for promoting a positive service culture.
2-5: Separate average companies from exceptional companies.
2-6: Identify what customers want.
This chapter discusses the elements of a service culture and how companies can promote a service culture.

3. Defining Customer Service
What is a service culture?
A customer-centric culture
LO 2-1
Service culture
No two organizations are alike
Culture includes values, norms, beliefs, rituals and practices of a group or organization
Policies and procedures contribute to a service organization
Attitude is critical to the success of an organization
Customer-centric
Customer-centered and focused on the needs of the customer
Stress on relationship with customers as opposed to sales
Many slogans of companies stress the service and relationship aspect

4. Defining Customer Service
Elements of a service culture
Service philosophy or mission
Employee roles and expectations
Employee qualities
LO 2-1
Service philosophy or mission
Driven from top down
Tone or direction of an organization
Leadership is critical to service success
Employee roles and expectations
The jobs of individuals in a job description
Performance goals
RUMBA
Criteria for goal setting which includes realistic, understandable, measureable, believable and attainable.
Employee qualities
Broad general knowledge of products and service
Interpersonal communication skills (e.g. verbal, nonverbal, and listening
along with cross-gender and cross-cultural communication)
Technical expertise related to products sold and serviced
Positive, customer-focused, “can-do” attitude
Initiative
Motivation
Integrity
Loyalty (to the organization, to products, and to customers)
Team spirit
Creativity
Sound ethics
Time management skills
Problem-solving capability
Conflict resolution skills

5. Defining Customer Service
Elements of a service culture
Policies and procedures
Motivators and rewards
Management support
Employee empowerment
Training
LO 2-1
Policies and procedures
Company policy isn’t always the policy in which businesses operate, i.e. exceptions can be made to serve the customer
Return policies in retail as an example
Policies can hinder or help the view of customer service
Motivators and rewards
People work more effectively when their performance is recognized and rewarded
Management support
The level of support by management can determine how good the customer experience is
Managers can train through example
Look for mentors in your organization
Mentor is someone who is well connected, knows the organization and volunteers or is assigned to someone as a coach
Avoid complacency
Always strive for improvement
Employee empowerment
Delegation of authority where a frontline service provider can take action without having to ask permission
Can be a motivator
Training
Various types of training such as technical skills or job skills and communication skills

6. Establishing a service strategy
Customers
Attracting
Retaining
Responsibility
LO 2-2
Make sure you know your customers
Make sure you know how you will attract and retain these customers
It is everyone’s responsibility to ensure excellent customer service

7. Customer friendly systems
Advertising
Complaint or problem resolution
Service delivery systems
LO 2-3
These are the ways in which an organization can send positive messages
Advertising
Send a message that products and services are competitive in price, quality and quantity
Don’t use advertising in a deceptive manner
Complaint or problem resolution
There is a system in place to deal with issues
Service delivery systems
Depending on the product, knowing which is the best way to go about selling the product
e.g. hard sell or relationship selling
Direct or indirect service system refers to the mechanism or strategy to provide service to customers
ATMs versus branches of a bank would be an example of direct versus indirect system

8. Customer friendly systems
Third Party Delivery system
Advantages
Disadvantages
LO 2-3
Third party delivery
Hiring an outside organization to perform tasks on the company’s behalf
Advantages
Eliminating large ongoing salaries
Reducing health benefits, retirement, and 401(k) payments
Avoiding the need to purchase and update computers and a myriad
of other equipment
Bringing in new, fresh expertise and perspectives from outside the organization
Disadvantages
Long-term employee expertise is lost
Employee loyalty to the organization suffers
The morale of the “survivors” (employees whose jobs were not eliminated) is adversely affected
Managing becomes more complex
Customers must deal with “strangers” with whom they cannot build long-term relationships because their provider may be gone the next time they call or stop in
Response time in getting a job or task completed may occur because of distance or other factors
Quality of work is not always up to expectations internally or for
customers (e.g. dealing with service representatives who have hard-to-understand accents or do not fully understand the customer’s culture or expectations)

9. Customer friendly systems
Service measurement tools
How do you know if you are providing great customer service?
LO 2-3
Tools for service measurement
Employee focus groups
Employee opinion surveys
Customer focus groups
Mystery shoppers
Customer satisfaction surveys
Customer comment cards
Profit and loss statement or management reports
Employee exit interviews
Walk through audits
On site management visits
Management inspections

10. Positive Service Culture
Personal strategies
Vision
Ethics
Skills
Commitment
Partnerships
And more...
LO 2-4
Explore the organization’s vision
Help communicate the vision to customers
Demonstrate ethical behavior
Identify and improve your service skills
Become an expert on your organization
Demonstrate commitment
Partner with customers
Work with customer interest in mind
Treat vendors and suppliers as customers
Share resources
Work with your customers
Provide service follow-up
e.g. thank you card or birthday note

11. Excellent vs. Average Companies
What do excellent companies do?
Communication
Seeking of feedback
Innovation
Benchmarking
And more…
LO 2-5
These factors can demonstrate the level of service commitment
Executives spend time with the customers
Executives spend time talking to frontline service providers
Customer feedback is regularly asked for and acted upon
Innovation and creativity are encouraged and rewarded
Benchmarking (identifying successful practices of others) is done with
similar organizations
Technology is widespread, frequently updated, and used effectively
Training is provided to keep employees current on industry trends, organizational issues, skills, and technology
Open communication exists between frontline employees and all levels of management
Employees are provided with guidelines and empowered (in certain instances, authorized to act without management intervention) to do
whatever is necessary to satisfy the customer
Partnerships with customers and suppliers are common
The status quo is not acceptable

12. What customers want Personal recognition Courtesy Timely service
Professionalism
Enthusiastic service
Empathy
Patience
LO 2-6
It is up to the organization to determine what their customers want and provide it
Some examples
Personal recognition
Thank you notes, returning calls quickly
Courtesy
Common things, such as please and thank you
Timely service
Limit extensive delays and let the customer know why there might have been a delay
Professionalism
Enthusiastic service
Empathy
An understanding of how someone is feeling
Feel, felt, found: “I know how you feel, I have felt xx way before, but I found this product is actually better.”
Patience