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© 2012 by Robert W. Lucas

Chapter 1: The Customer Service Chapter 1: The Customer Service ProfessionProfession

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© 2012 by Robert W. Lucas

Learning OutcomesLearning Outcomes

• 1-1: Define customer service.1-1: Define customer service.• 1-2: Describe factors that have impacted the 1-2: Describe factors that have impacted the

growth of the service sector in the United growth of the service sector in the United States.States.

• 1-3: Identify the socioeconomic and 1-3: Identify the socioeconomic and demographic changes that have influenced demographic changes that have influenced customer servicecustomer service..

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© 2012 by Robert W. Lucas

Learning OutcomesLearning Outcomes

• 1-4: Recognize the changes in consumer 1-4: Recognize the changes in consumer behavior that are impacting service.behavior that are impacting service.

• 1-5: List the six major components of a 1-5: List the six major components of a customer-focused environment.customer-focused environment.

• 1-6: Explain how some companies are 1-6: Explain how some companies are addressing the changes impacting the service addressing the changes impacting the service sector.sector.

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© 2012 by Robert W. Lucas

What is Customer Service?What is Customer Service?

• DefineThe ability of knowledgeable, capable and enthusiastic The ability of knowledgeable, capable and enthusiastic employees to deliver products and services to internal and employees to deliver products and services to internal and external customersexternal customers

• What is the service industry?– The definition of customer service really depends on the type The definition of customer service really depends on the type

of businessof business– A service industry is one that engaged in service delivery, A service industry is one that engaged in service delivery,

rather than working with productsrather than working with products– ProductProduct

» Something produced or tangibleSomething produced or tangible

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© 2012 by Robert W. Lucas

Customer-Focused OrganizationCustomer-Focused Organization

• DefineA company that focused and spends effort by insuring great service.A company that focused and spends effort by insuring great service.

• Characteristics of a customer focused organization

They have internal customers (for example, peers, co-workers, bosses, They have internal customers (for example, peers, co-workers, bosses, subordinates, and people from other areas of their organization) and/or subordinates, and people from other areas of their organization) and/or external customers (for example, vendors, suppliers, various telephone external customers (for example, vendors, suppliers, various telephone callers, walk-in customers, and other organizations, others not from callers, walk-in customers, and other organizations, others not from within the organization)within the organization)

Their focus is on determining and meeting the needs of customers while Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special. Information, treating everyone with respect and as if they were special. Information, products, and services are easily accessible by customers. Policies are in products, and services are easily accessible by customers. Policies are in place to allow employees to make decisions in order to better serve place to allow employees to make decisions in order to better serve customerscustomers

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© 2012 by Robert W. Lucas

Management and systems support and appropriately reward Management and systems support and appropriately reward employee efforts to serve customersemployee efforts to serve customers

Reevaluation and quantitative measurement of the way Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to the changes and upgrades to deliver timely quality service to the customercustomer

Continual benchmarking or comparison with competitors and Continual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness and related organizations helps maintain an acute awareness and implementation of best service practices by the organizationimplementation of best service practices by the organization

The latest technology is used to connect with and provide The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to support service to customers, vendors, or suppliers and to support business operationsbusiness operations

They build relationships through customer relationship They build relationships through customer relationship management (CRM) programsmanagement (CRM) programs

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© 2012 by Robert W. Lucas

Customer Service Historically Customer Service Historically

When dealing with customers, it’s not about you!When dealing with customers, it’s not about you!

• The service sectorThe service sectorBy census bureau includes transportation, retail, wholesaleBy census bureau includes transportation, retail, wholesale

• Historical customer serviceHistorical customer service– Cottage industries: Cottage industries: Cottage industries included people Cottage industries included people

starting businesses from their homestarting businesses from their home

– Shift to service: Shift to service: We are shifting to a service economy, We are shifting to a service economy, that is, one that relies on services rather than production that is, one that relies on services rather than production of productsof products

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© 2012 by Robert W. Lucas

Growth of Service SectorGrowth of Service Sector

• Job Growth: Job Growth: Jobs in service are expected to grow while goods Jobs in service are expected to grow while goods producing occupations are expected to shrinkproducing occupations are expected to shrink

• EconomyEconomy– Quantity :Quantity :Growth is projectedGrowth is projected

– Distribution of jobs:Distribution of jobs:» Telecommuting as a trendTelecommuting as a trend» More training and technology providedMore training and technology provided» Jobs may be more centered in major metropolitan areasJobs may be more centered in major metropolitan areas

– Quality of jobsQuality of jobs» Better paying jobs on the riseBetter paying jobs on the rise» Service sector tends to pay more than goods-producingService sector tends to pay more than goods-producing» Different skills are neededDifferent skills are needed» Education is neededEducation is needed

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© 2012 by Robert W. Lucas

Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• Global economic shiftGlobal economic shift• Shifts in populationShifts in population• Increased technology efficiencyIncreased technology efficiency• GlobalizationGlobalization• DeregulationDeregulation• GeopoliticalGeopolitical

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Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• White Collar WorkersWhite Collar Workers• Women entering workforceWomen entering workforce• DiversityDiversity• Older workersOlder workers• E-commerceE-commerce

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© 2012 by Robert W. Lucas

Consumer Behavior ShiftsConsumer Behavior Shifts

• New mindsetsNew mindsets• ExpectationsExpectations• Customer PreparationCustomer Preparation

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The Components of a customer service The Components of a customer service environment environment

• The CustomerThe Customer• Organizational CultureOrganizational Culture• Human ResourcesHuman Resources• Products and deliverablesProducts and deliverables• Delivery systemsDelivery systems• ServiceService

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How to address the customer service How to address the customer service changeschanges

• Learning organizationsLearning organizations• The small business perspective The small business perspective