Outcome 5 - Customer Service 1

The importance of providing effective customer service

Customer service is important because:

The customer can go elsewhere It costs a business more to attract a new customer

than to retain an existing customer Unless a business has a MONOPOLY or is in a NICHE

MARKET, it will have competitors offering similar products at similar or lower prices

The quality of customer service will help a business to retain customer loyalty

Customer service is about giving ADDED VALUE to a customer’s experience when using the organisation … going that extra mile will make the customer return for the experience

A business has to care for EXTERNAL customers and INTERNAL customers (employees)

Customer service is about satisfying needs and retaining loyalty to the organisation

Outcome 5 - Customer Service 2

The Mission Statement

The Mission Statement outlines the main aims and focus of a business and will usually include a general statement regarding quality and standards.

Use the internet to obtain the Mission Statements of the following companies:

Marks and Spencer Woolworths The Royal Bank of Scotland Asda Morrisons McDonalds Woolworths UCI Cinemas Bradford & Bingley Building Society Comet

Outcome 5 - Customer Service 3

Customer Service Strategy

CUSTOMER SERVICE STRATEGY … a written statement of broad principles relating to organisational customer service

MYSTERY CUSTOMER … individual employed to act as a normal customer and report back on the standard of service received … this information can then be fed back to staff either to praise or to remedy concerns

CUSTOMER SERVICE STATEMENT OR PROMISE … directed at customers and may detail what they should expect in terms of how the organisation will deal with them, deadlines and quality of service. Some organisations promise penalty payment if they do not meet their promised deadlines

COMPLAINTS PROCEDURE … formal procedures for customers when making a complaint or for staff in an organisation when dealing with a complaint … many customers will remain with an organisation following a complaint IF their complaint is dealt with in the right way

SERVICE STANDARDS … staff guidelines for dealing with external customers eg how many times telephone may ring before it must be answered, greeting to be given to customers, time to be taken to deal with a customer

MARKET RESEARCH … used to gain information on the marketplace … analyses the product, price, competition and customer attitudes to the service they receive … this is done by using CUSTOMER FOCUS GROUPS or CUSTOMER SATISFACTION SURVEYS

LOYALTY SCHEMES … loyalty cards, frequent air miles, discounted petrol, etc offered to customers as a reward for loyalty to the company’s service or product(s) … these are aimed at retaining customers by showing how much they are valued

QUALITY MANAGEMENT SYSTEMS … Total Quality Management (TQM) has been adopted by many organisations to instil a quality culture which is the responsibility of all staff

Outcome 5 - Customer Service 4

The Role of the Administrative Assistant

EXTERNAL CUSTOMERSo Appropriate behaviour … formal with right level of politeness and

courtesyo Communication … it is vital that customers are kept informedo Honesty and Trust … customers appreciate honesty … even if it is

bad news … trust is vital in good customer relationso Approachability … a pleasant manner, positive body language and

welcoming smile make for good customer serviceo Stay within boundaries … decisions must be made within an

organisation’s systems and procedures

INTERNAL CUSTOMERS Treat internal customers with the same level of service as external

customers Employees must adopt the correct behaviour and stay within the

limits and scope of your responsibilities Use service-level agreements to establish standards between

departments at work It is vital that employees can see how their part in an organisation

links to other parts rather than viewing their work in isolation

Outcome 5 - Customer Service 5

Communication with Colleagues and Customers

It is crucial that an organisation communicates with its customers.

Most communication involves listening and speaking and the the impact comes from:

the words we use … importance 7%

the tone of our voice … importance 38%

our body language … importance 55%

Outcome 5 - Customer Service 6

Methods of Communication

FACE-TO-FACE … often preferred because:• gives immediate feedback• uncertainties identified and immediately clarified• very personal• easier to recall customers’ faces• allows relationships to develop

INCOMING AND OUTGOING DOCUMENTS … must be dealt with promptly customer must be kept informed at all times must be accurate, well-presented, well written and timely standard documents should be personalised

TELEPHONE … the advantages include: customers do not need to leave home useful for general or brief enquiries relatively cheap in terms of cost and time usually takes less time than a face-to-face meeting

E-MAIL … increasingly popular because: messages can be sent quickly to large numbers of people less formal than letters possible worldwide, 24/7 can be received when staff out of their office can compose a draft before sending can be marked URGENT, can be FLAGGED

WRITTEN … creates a record confirms understanding provides reassurance and confidence allows the customer time to read and understand

WEBSITES … can be used to: promote business liaise with customers selling a service or product providing information for customers obtaining information

Outcome 5 - Customer Service 7

Benefits of effective customer service to an organisation

• Customer loyalty• Satisfied customers• Satisfied and motivated staff• Low staff turnover• Reduced costs• Good reputation• Competitive edge• Increased market share