Learning aim A: Explore how effective customer service contributes to business success
A1 Customer service in business
• Definition of customer service.
• Customer service roles and importance of teamwork.
• Importance of following organisational rules and procedures.
• Different approaches to customer service across industries need different skills and knowledge, such as:
o retail shops selling tangible goods, need for detailed product knowledge and effective selling skills
o offices, such as those offering a non-tangible service, either face-to-face with customers, online, written or telephone customer contact
o contact centres with telephone/online contact with customers, time limitations
o hospitality industry, such as serving skills for food or drinks.
Can you think of an example of a time you received excellent customer service from a business?
How did this affect you as a customer?
How might it affect the business?
Can you think of a time you received poor customer service from a business?
How did this affect you as a customer?
How might it affect the business?
Customer service is part of everyone's job regardless of whether the business is in the private or public sector, a sole trader or a large organisation. Satisfied customers are more likely to continue taking their business back to the same company or individual, whether they are buying a meal, a drink, a mobile phone contract, clothing or a holiday etc.
Which person in the picture represents good customer services?
Which person represents bad customer services?
Customer service is about relationships- it relates to the assistance and advice provided by a business to those people who buy or use its products or services. Without customers there is no business. It is everyone's responsibility to ensure that customers are a priority and given the best possible service.
This is particularly important in the modern day as there are some many ways an unsatisfied customer can share their dissatisfaction with others.
Watch the clip below, make note of the key characteristics of good customer service. Rank your points into a top 5 in order of importance.
1)How can customer service affect the reputation of a business?
2)What other impacts might this have for a business?
3)How might a business respond to an unhappy customer on Social Media?
4)What steps could a business take to prevent negative reviews/comments on social media?
5)What steps might a business take to encourage positive customer interactions on Social Media?
Clip 1
What could the receptionist have done better in the first half of the clip?
What effect is this encounter likely to have on the customer?
How might this affect the business?
Clip 2
What did the receptionist do well?
What are the main improvements from the first clip?
What effect is this encounter likely to have on the customer?
Who might this affect the business?
Customer service roles vary according to the type of business, as demonstarted below.
Beauty Salon- Recptionist- Taking Bookings; responding to queries; Organising diary; Greet and welcome customers; take payments.
Garage- Mechanic- Liase with customers; explain issues with car; explain price and time schedule for job; manage payment
Construction- Painter- Respect customer premises; do not smoke; remove rubbish; protect furnishings; schedule time frame and price; manage payment.
Although all 3 jobs are completely different they all are aiming to ensure customers are valued and listened to and that their expectations are met or exceeded.
There are many methods of dealing with customers including...
Face-To-Face
Telephone
Emails
Text Messages
Social Media
Video Conferencing
Each of these roles relies on effective teamwork as each individual's role impacts on another's role in the team.
Different types of role will require appropriate means of communication and language and you will learn more about them during this unit. Each job will provide a list of duties specific to the role and these often vary.
What is your opinion of the customer service provided in this clip?
Why was the customer made to wait?
All businesses will have many policies covering a wide range of areas in relation to their operations, some will be formal (written documentation) and others informal (verbal). They must also have legal requirements, for example following legal guidelines when disposing of toxic waste or clearly explaining terms and conditions to customers.
Without proper procedures in place, employees would be unclear about their roles and some jobs would be duplicated while others may be overlooked. Sometimes there are legal requirements, for example paying taxes forms the basis for accounts procedures to ensure that the correct amounts are deducted from salaries or when completing a self-assessment tax return.
Some people find it hard to comply with rules, but they are there for a reason, very often to provide protection. Everyone needs rules, not only to protect them but also to bring some order to how they behave. Although you may not agree with erevy rule, rules are needed so as to know your limits and boundaries.
Of course, there are exceptions, for example when rules are not properly thought through, they are wrongly conveyed or misinterpreted, or there are simply too many.
Policy
A customer service policy is a written code of conduct for employees to usewhen serving customers. It could include how to respond to questions or deal with disgruntled customers who want refunds. A policy can be short or it can be detailed with more than a page. The policy may state what is expected when a certain situation occurs or appropriate steps to take action. Typically, managers determine the policy and include it within the employee handbook.
Procedure
A customer service procedure is a way of doing a routine practice. In customer service there is certain protocol that must be taken in order to remain competitive. Finding a better or faster way of doing something can be considered a customer service procedure. Managers are given the responsibility of completing job performance evaluations to see where weak links can be rectified. This leads to increased efficiency and better customer service.
What Companies Should Do
Companies should look for new opportunities to improve customer service policies and procedures. Employees and managers alike should look for new methods to help and serve customers. Write new customer service policies and procedures every year there is a meaningful change to the objective of the job. Gain input from external and internal customers. The external customers are the people who buy the product, while internal customers are employees of the company. Feedback and surveys are fundamental to transferring policies and procedures. Once, these are reviewed, proper steps can be taken to enhance customer service policies and procedures.
What Companies Can Do
Companies can create better strategies in business with ever-improving customer service policies and procedures. For instance, policies can allow for leadership to flourish among employees. Management can encourage this behavior with training and employee motivation perks. The best way is by stating what is required as an employee with steps, and rewarding the employees who meet the standards. An example of customer service policies and procedures can be found in the reference section.
What Companies Must Do
Every company must be confident in its customer service policies and procedures. These rules must be effective, clear and precise according to the company product. Establishing feedback mechanisms, polite manners and positive appearance will make any company better when properly implemented. Managers must take time to determine priorities for customer service policies and procedures.
Research businesses you are interested in.
Do they have a customer service policy/statement?
Summarise it into 5 key points.
Why is it important for a business to have a Customer Service Policy.
Different types of business will interact with their customers in different ways asn so customer service can look very different across different businesses.
Retail Shops
These tend to sell physical items/ tangible goods and so the sales assistants require specialist knowledge, good communication skills and effective selling skills. Businesses want to sell products in order to make profit and often customers will require help or extra information before committing to a purchase. Again depending on the type of shop different business will have different specialist knowledge with some being more technical than others. The amount of money the customer is spending will also affect the amount of information they may need about the product.
Staff must be trained on product knowledge and their knowledge must be updated when they work in fast-moving industries such as technology. In some stores, staff are trained to be specialists in a niche range of products.
The ultimate goal of a sales assistant is to sell a given product. The following interpersonal skills are required by sales assistants in order to be effective.
Listening Skills
Good Manners
Avoiding Jargon
Engaging
Confidence
Questioning skills
Credibility
Integrity
Listening Skills
Customers need to have confidence in the information they are given therefore credibility and integrity are important skills as well as being persuasive. The following skills are also important.
The ability to understand the customer's needs and wants
Patience- Customers may change their mind
The ability to articulate clearly
Non-Verbal Communication- Watch for body language and unspoken signals
Politeness and good manners- These are commonly highly valued by customers
Smiling- Avoid being over pushy
Mindfulness of language barriers and cultural differences
Communicating responses and information clearly and accurately
Resisting making promises that cannot be kept
Good time management, which includes punctuality and ability to work to tight deadlines
Offices for businesses selling non-tangible services
Some businesses never meet the customer face-to-face, for example those providing information about utilities such as gas or electricity will generally be over the phone or online, perhaps through a comparsion website. There are many types of businesses where sales personnel are selling something that is non tangible., Such as advice from a solicitor or services of a bank. The different methods of communication used in offices include:
Face-to-face customer contact- For example, solicitors often meet with customers personally and are less likely to communicate by email due to the sensitive nature of enquiries.
Online- For example, banks such as Natwest now have a strong online presence as well as high street branches, but there are also purely online banks such as First Direct; banks also make online customer contact through web chats
Written- Solicitors, for example mostly rely on sending letters, producing legal documentation as hard copy, however, as with most professions, specialist language is used internally which can be difficult for customers to interpret.
Telephone-Apple provide customers with a case number which they can refer to in the future to help resolve outstanding queries; the travel industry continues to use telephone sales, in particular, tailor-made travel such as that provided by the businesslike Trailfinders and other tour operators.
Banks are a good example of how customer service has changed for a non-tangible product. Traditionally, banks were run by a bank manager who met with customers and had responsibility for their accounts. Bank tellers managed over-the-counter transactions. Cash machines (ATMs) were then introduced in 1967 by Barclays, cutting down on human contact. Online banking was the next step, introduced in the 1980's.
Contact Centres
Contact centres employ staff who make telephone contact with customers. These staff require a number of specific skills, many of which we have discussed previously. Staff often follow a script but should still ensure that they use listening skills to fully understand each customer's needs.
Businesses have to operate within time limitations, Staff working in contact centres will be expected to respond to a call within a given time, just as they will b expected to respond to the customer's enquiry within a certain time. Consider the impact this on both the customer and the call centre operative in situations such as:
Reporting a gas leak or power outage
Seeking software and technological support
Calling emergency services
Hospitality Industry
Employees in the hospitality industry often work long hours and are also governed by deadlines. For example, people serving in fast food restaurants are expected to identify and make up the customer order, take payment and be courteous at all times and being well organised, regardless of whether toy are working in a fast food restaurant or a Michelin-starred restaurant.
Additional skills will be required in more upmarket restaurants which often operate silver service, where specially trained staff follow specific codes of etiquette.