Customer Service Flashcards Ch. 1

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Customer Service

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The ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return of business.

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Service Industry

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A term used to describe businesses and organizations that are engaged primarily in service delivery.

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Product

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Something produced or an output by an individual or organization. in the service environment, products are created to satisfy customer needs or wants.

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Customer Relationship Management (CRM)

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Concept of identifying customer needs: understanding and influencing customer behavior through ongoing communication strategies in an effort to acquire, retain, and satisfy the customer. The ultimate goal is customer loyalty.

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Customer-Focused Organization

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A company that spends energy and effort on satisfying internal and external customers by first identifying customer needs, then establishing policies, procedures, and management and reward systems to support excellence in service delivery.

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Service Sector

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Refers to organizations and individuals involved in delivering service as a primary product.

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Cottage Industries

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The term adopted in the early days of customer service when many people started small businesses in their homes or cottages and bartered products or services with neighbors.

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Service Economy

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A term used to describe the trend in which businesses have shifted from primarily production and manufacturing to more service delivery. As part of this evolution, many organizations have developed specifically to provide services to customers.

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Telecommuting

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A trend seen in many congested metropolitan areas and government offices. To reduce traffic and pollution and save resources, many organizations allow employees to set up home offices and from there electronically communicate and forward information to their corporate office.

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Broadband Internet Access

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Refers to a very fast connection to the internet that is made possible by technology that can communicate up to 40 times the amount of data or information possible with the old phone dialup internet connections.

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Skype

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Refers to a software application that is a division of Microsoft and provides free or paid service that allows people to connect with other Skype subscribers anywhere in the world with voice, videos, or text messages.

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Instant Messaging

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Refers to a form of internet communication where users can transmit text messages or chat in real-time via internet to one or more people.

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Social Media

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Provide technology where people network and share information, images, and ideas virtually through technology or social networking sites like Facebook, LinkedIn, Twitter, blogs, Wikipedia, or Pinterest.

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Downsizing

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Term applied to the situation in which employees are terminated or empty positions are left unfilled once someone leaves an organization.

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Networking

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The active process of building relationships and sharing of resources.

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Globalization

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The term applied to an ongoing trend of information, knowledge, and resource sharing around the world. As a result of a more mobile society and easier access to transportation and technology, more people are traveling and accessing products and services from international sources than ever before.

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Business-to-Business (B2B)

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(B2B) Refers to a business-to-business customer service.

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Offshoring

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Refers to the relocation of business services from one country to another (e.g. services, production, and manufacturing).

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Outsourcing

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Refers to the practice of contracting with third-party companies or vendors outside the organization (usually in another country) to deliver products and services to customers or produce products.

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Insourcing

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The opposite of outsourcing, this occurs when organizations decide to have internal employees assume functions and perform work instead of contracting it out to third parties or outsourcing it

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Deregulation

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This occurs when governments remove legislative or regulatory guidelines that inhibit and control an industry e.g. transportation, natural gas, and telecommunications).

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North American Free Trade Agreement (NAFTA)

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A trade agreement entered into by the US, Canada, and Mexico to help, among other things, eliminate barriers to trade across barriers to trade, promote conditions of fair trade across borders, increase investment opportunities, and promote and protect intellectual property rights.

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E-Commerce

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An entire spectrum of companies that market products and services on the internet and through other technology, and the process of accessing them by customers.

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Customer Satisfaction

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The feeling of a person whose needs have been met by an organization

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Customer Service Environment

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An environment made up of and influenced by various elements of an organization. The key components are the customer, organizational culture, human resources, products, delivery systems, and service.

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External Customers

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Those people outside the organization who purchase or lease products and services. (vendors, suppliers, people on the telephone, and others not from the organization).

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Internal Customers

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People within the organization who either require support and service or provide information, products, and services to service providers ( peers, co-workers, bosses, subordinates and people from other areas of the organization).

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Organizational Culture

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The element of an organization that a customer encounters.

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Human Resources

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Employees of an organization.

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Deliverables

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Products or services provided by an organization.

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Delivery System

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The method(s) used by an organization to provide services and products to its customers.

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Learning Organizations

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A term used by Peter Senge in his book The Fifth discipline to describe organizations that value knowledge, education, and employee training. They also learn from their competition, industry trends, and other sources, and they develop systems to support continued growth and development in order to remain competitive.

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Service Recovery

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The process of righting a wrong or correcting something that has gone wrong involving provision of a product or service to a customer. The process involves not only replacing defective products, but also going the extra step of providing compensation for the customer's inconvenience.

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Small Business Administration (SBA)

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United States governmental agency established to assist small business owners.