What is Customer Service

Chapter 1

Managing Customer Service“A Customer is the most important visitor on our premises. He is not dependent on us; we are dependent on him. He is not an interruption in our work, he is the purpose of it. He is not an outsider in our business, he is part of it. We are not doing him a favour by serving him; he is doing us a favour by giving us an opportunity to do so”.

Mahatma Gandhi

Objectives

Understand the topic Learning methodology Understanding Satisfaction Why is excellent customer service

rare? 5 Needs of every customer Case study

Understanding the Topic

“Any instance when a customer comes in contact with some aspect of your organization and has an opportunity to form an impression about the quality of service and/or product you provide.”

“customer service is the ability of an organization to constantly and consistently give the customer what they want and need”

“customer service is any contact, whether active or passive, between a customer and a company, that causes a negative or positive perception by a customer.”

What is Customer Service?

The average customer service provider doesn’t know!!

Customer service is anything we do for the customer that enhances the customer experience

The challenge is to know your customer and strive to meet their expectations

Understanding Customer Satisfaction

Customer satisfaction is the customer’s overall feeling of contentment with a customer interaction

Customer satisfaction recognises the difference between customer expectations and customer perceptions

Examples of Customer Service

1. Free car wash with a fill-up2. Calling the customer by name3. Easy return policy4. On-time deliveries5. Well explained instructions6. Suggesting a less expensive

option7. Assisting the customer carry out

their purchases

Why is excellent customer service rare?

It requires spending money & taking action It is a lot more than simply having the right

attitude or being a people person – it requires skills development

Organisations must determine the right level of customer service – procedures and strategies must be current.

Employees need to be empowered to make decisions that benefit customers and have the right attitude

Measure Customer satisfaction periodically Become a better Customer ourselves

Information Technology

The use of technology and current information systems greatly enhances the provision of excellent customer service

The challenge is for management to utilise the technology to provide staff with relevant data and information

Process and procedures Quality manual Customer details

Five needs of every customer

Service The appropriate level of service for their

purchase Price

Efficient use of resources Quality

Customers are less likely to stress over price for a higher quality item

Action Solve their problem

Appreciation Say thank you!

10 step plan

The company is you – take responsibility Remember your own experiences No discouraging words You have enough time Allow them change their mind Cherish complaints The customers problem is your problem How am I doing? Make happy endings… Say thanks

External and Internal Customers

External Customers are the customers we do business with outside of our organisation

Internal Customers are the people within our organisation at all levels who help us provide the service to the External Customer

Management of the organisation has an important role in creating an environment that recognises the importance of the Internal Customer

External and Internal Customers

It is Managements role to create an environment where all members of staff within an organisation perceive themselves as part of the ONE TEAM

They may not have direct External Customer interface but they support those within the organisation who do

External and Internal Customers

A team with the goal of providing excellent Customer Service to all customers both External and Internal will create a common vision of customer service and make it a reality with real improved business opportunities

Customer Attributes

Each customer is unique. Identifying customer attributes will allow an organisation to better understand ‘who” the customers are. They can be categorised according to: Demographic attributes Psychographic attributes Firmographic attributes

Customer Attributes

Demographic: Age profile Income Marital status Education Occupation Ethnic background Religion etc

Customer Attributes

Psychographic: Lifestyle Needs Attitudes Culture Social class Family influences Political affiliation etc

Customer Attributes

Firmographic: How many employees a company

has Business sector Hours of operation Turnover Profit level Investment

Cost of Losing a Customer

It takes very little effort to lose a customer. When we lose a customer to a competitor several import situations occur: We lose revenue Loss of reputation Loss of future business opportunities with that

customer Loss of employment for employees Dissatisfied customers share their experience

with their friends, colleagues, peers etc. So the impact of losing one customer can have a ripple affect

Writing Compliment and Complaint Letters

All letters should include your name, address, home and work number telephone numbers, and account number if appropriate

Make the letter brief and to the point.

Writing Compliment and Complaint Letters

Complimentary letter: Include specific facts about the good

customer situation, include the name of the person who provided the service, the date of the interaction, and what please you about the service provided

Keep a copy on file for future reference File for Future Reference

Writing Compliment and Complaint Letters

Complaint Letter: Detail the facts about bad customer

interface situation Include the date and place of purchase,

and information about the product or service

State exactly how you would like the situation resolved and when you expect to see the resolution implemented

Review

1. What is the definition of customer service?

2. List 5 examples of customer service3. What are the 5 needs that every

customer has4. Explain the concept of External and

Internal customers5. Customer Attributes –

1. Demographic information

2. Psychographic information

3. Firmographic information