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Chapter 2: Contributing to the Service Culture
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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.
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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
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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