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28 Cards in this Set
- Front
- Back
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Concepts and practices underpinning customer service |
Customer service as a competitive tool A way in which an organisation meets or beats the service offers of competitors A way an organisation can create support and loyalty and encourage retention |
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Customer service as a competitive tool |
Customer service is a competitive environment. Many organisation promise high level of service in order to attract new customers and retain existing ones It’s important for organisations to be aware of competitors offers and standards in order to compete in the market place Customer service levels can be vital in gaining an advantage over organisations with similar products or service offers |
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The institute of customer service & Value |
The institute of customer service carries out bi-annual research to create reports in customer satisfaction in the UK This can help us understand the link between customer satisfaction and organisational effectiveness Organisations are placed into a customer satisfaction index (UKCSI) rated in how satisfied their customers are. This is compiled across different sectors through customer surveys Value: The value of using customer services as a competitive tool is clear. Competition is increasing, so customer service levels mus also increase in order to match or even beat competitor service offers. Customers have more choice: for an organisation to be competitive, service levels must match expectations and needs |
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Mapping the customer journey |
What is the customer journey? Customer interactions with an organisation From first contact to closure of the transaction The customer experience as a whole
Why should this be mapped? To evaluate the customer experience To identify improvement To monitor standards |
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The customer journey and map |
The customer journey is the complete sum of experiences that customers go through when interacting with an organisation and brand A customer journey map is a framework that enables improvement of the customer experience. Customer journey mapping can help to identify how the customer is treated during each contact and how the customer feels towards your organisation at the end of the experience. All organisations will have different types of customer interactions. These must be established in order to begin to map the customer journey. Awareness Research Purchase After sale Loyalty |
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Customer personas and touch-points |
Touch-points and personas must be established to begin to see what customers want and the types of interactions a customer has with an organisation. A touchpoint is a marker to show where a customer interacts with an organisation - the point at which the two parties come together. The journey map can help to structure this process and clearly identify the quality of each interaction. This is best done through customer research and feedback. This data will be then used in the customer journey map. This element is known as creating ‘personas’ |
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Customer journey and personas part 2 |
For each different phase you will see gaps between what the needs and goals of customers are and what is currently available to them. This will begin to highlight what improvements are required. In summary, an effective journey map will identify: What customers need How the organisation can help them succeed Where the organisation should be investing more to provide a better customer experience
This customer map isn’t about the goals of a customer at each stage. Identify the customer questions at each stage and identify their goal. For example Phase: research Customer goal: identify options for available products/services |
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The service-profit chain |
The service-profit chain is a theory and business model evolved by a group of researchers from Harvard University. They have proved that there is a direct financial link between superior service experiences, customer loyalty and financial performance (profit and growth) The service-profit chain establishes relationships between profitability, customer loyalty and employee satisfaction, loyalty and productivity |
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Organisations effectiveness ➡️ the extent to which an organisation achieves its goals |
It is vital for all organisations to measure how effective they are in order to meet needs, increase business, retain customers and to maintain market share. An organisation that does not measure its effectiveness cannot develop, grow or maintain standards in any delivery area
There are many methods that can be used to formally measure the effectiveness of an organisation. The methods can differ depending on: The size of organisation The sector of organisation Organisational priorities |
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Key Performance Indicators (KPIs) |
KIPs are formal, pre-defines measurements of effectiveness. They are quantifiable - all KPIs must be able to be reduced to a number KPIs can be used to evaluate the effectiveness of an individual, a team or a particular activity. They differ between organisations and activities and are then monitored to evaluate effectiveness. KPIs should clearly link to the strategic objectives of the organisation. They include:
Target setting - Data analysis Measurements against objectives Sales/performance targets Performance targets are a simple way to monitor the perfomance of an individual or team. Targets are set based on several factors, which could include past performance and organisational objectives Targets should be monitored to asses effectiveness and adjusted to reflect changing factors within an organisation |
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The fundamental principles of target setting are outlined in the SMART method |
Specific Measurable Achievable Realistic Time-bound |
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Competitors benchmarking & Data analysis |
Competitors benchmarking: This is the process of comparing organisational performance and practice to those of competitors This can be challenging, as specific data about competitors can be difficult to locate. A more simple way of benchmarking would be to compare device offers, staff competence and other, more obvious factors. Some organisations publish their financial records which can also be a beneficial benchmarking exercise.
Data analysis: This is vital in monitoring effectiveness. There are numerous types of data that can be analysed to identify trends, shortfalls, good practice and business risks. These vary between organisations but can include: Customer satisfaction data Profit reports Overheads Staff costs |
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Methods of identifying services failures |
Analysis of complaints: Complaint data should be analysed in order to identify service trends, customer expectations and other service failures. This can be both quantitative and qualitative data.
Customer feedback This feedback can be in any form - formal or informal. Customer comments or suggestions do not have to be complaints
Market research This is a useful indication of customer wants, needs and expectations and can be matched to the current service offer.
Sales figures This quantitative data can highlight variances from expected or requires sales in order to inserido failures
Returns Can be used to inserido of the same products are being returned consistently and for the same reasons
Staff monitoring As previously identified
Mystery shoppers These undercover quality assurance officers can check service from a customer’s point of view, giving valuable insight into how the organisation delivers its offer
Customer focus groups This suna qualitative way of gaining feedback into what customers think about an organisation and how they could improve. New ideas can be generated and highlighted. |
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The relationship between customer service and a brand |
A brand is used by an organisation to differentiate themselves from others. In large, international organisations a successful brand is usually instantly recognisable. In smaller organisations the brand is built around the service and value provided. A brand is also a specific combination of logo, words, type font, design, colours, personality, price, service etc A brand is vital to successful customer service as competition in the market grows |
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Customer Service and Branding |
A brand is a promise. With a brand, you set customer expectations. When someone buys the product or service, they count on those expectations to be fulfilled.
Brand is recognised Customer receives expected high level of service customer remembers the brand and returns. Opportunity for customer to tell others
Poor levels of service and value can negatively affect a brand A brand can also be negatively affected by word of mouth A successful brand can take years to build up and much less time to knock down in the event of a damaged reputation There are several example of high profile organisations that have suffered financial losses due to negative brand association In these instances the brand loses credibility which in turn, reduces customer trust |
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Customer service models and standards |
A customer service model is the way in which an organisation decided to deliver its customer service and the outcomes in which it is focused A customer service standard defines the levels of service that can be expected. All staff must adhere to this standard. The customer service standards of an organisation can often be found in a Customer Charter |
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The structure of customer service |
Sales-focused model: This model is focused on the amount of sales completed. The main aim of the organisation is to always secure a sale and therefore a financial reward. This model focuses heavily on quantitative outcomes and the success of the organisation is measured in this
Customer-focused model This model make the customer the most important element of the organisation.organisations that take this approach can be expected to have increased repeat customers and commit tome and money to improving services and products in order to satisfy customers.
Customer experience model Organisations that use this model are focused on improving the customer experience through the development and implementation of new and evolving products and service. The customer journey is the main purpose.
Price/convenience model An organisation that uses this model is seen as offering cheap products and services in central, easy to access locations. They usually offer a ‘no-frills’ service for customers who wish to have minimal contact with an organisation |
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Customer service standards |
Timeless Accuracy Appropriateness Standards for timeliness For example “We will answer your call within two minutes” “Open 24 hours a day” “Any item delivered the next day” |
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Standards of accuracy |
For example: Organisations should correctly process order Information given should be correct Service should be correct and relevant Standards for appropriateness
For example: Response to enquiries should come all areas rested by the customer The level and content of the response should be appropriate to the situation Without this and organisation is not meeting the need and expectations of the customer |
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Operational areas |
Administration Sales Distribution Human Resources Production |
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The affect of customer service in areas of operation |
If a customer service offer promises next day delivery, this can affect distribution If customer service transaction involves processing and order, this can affect the administration function Processes and operation are fundamental linked and each operation can affect the other. This principle form the basis of the customer service supply chain |
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Customer service and the development of an organisation |
Continues development is an ongoing effort to improve products, services and service offer including: Reviewing performance Reviewing the customer service performance of teams and individuals can help to identify development activities and needs to ensure the organisation is consistently providing a high-quality service
Target setting Target setting can be used to improve the performance of an organisation. Targets should be SMART and adaptable to individual needs and priorities. Targets can help with development by tracking performance
Implementing changes Importing a change can assist continuous development by ensuring an organisation updates and adapts its service offers in line with customer needs and expectations
Analysing feedback Feedback analysis is vital in continuous development to ensure an organisation listens to customer views and is able to consistently offer what customers require |
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Costs and benefits of customer service |
Good customer service is vital to ensure an organisation is successful The benefits are many but there are also costs to an organisation to committing to a high-quality service. Costs are not just related to financial outlay, poor customer service can cost reputation, customer loyalty and ultimately market share The benefits of good customer service are easy to see in customer retention, repeat business and customer feedback |
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The cost of customer service |
It’s not always about budget It’s not always the organisation with the highest budget who have the ability to maintain customer satisfaction to the highest levels In a recent customer satisfaction survey carried out by Which? It was shown that in a survey of UK energy suppliers the largest, most-profitable organisations were not among the ones scoring the highest in the survey. Customer service costs to an organisation can be complex and multi-faceted The cost of a poor customer service - LOYALTY If customers are not happy with service, there is a lot of research to show that they will go elsewhere |
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The cost of poor customer service - WORD OF MOUTH/REPUTATION |
A recent study in the USA gives clear indication of the cost of poor service when focusing on word of mouth A dissatisfied customer will tell between 9-15 people about their experience Around 13% of dissatisfied customers tell more then 20 people Negative interactions with a business are spread to twice as many people as positive ones People are twice as likely to talk about bad customer service experiences than they are to talk about good experiences 67% of people spend more money after getting recommendations from their friends on online communities like Facebook and Twitter Happy customers who get their issue resolved tell about 4-6 people about their experience |
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The cost of good customer service |
Investing in customer service can cost money: Staff/recruitment costs Training costs Product development Outgoings and financial investments should be directed to areas with the most benefit to customers and ultimately resulting in an increase in business. Organisations carry out audits, reviews and evaluations to identify which areas will benefit from additional investment |
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Organisational values |
An organisational value is a belief that a specific mode of conduct is preferable to an opposite mode of conduct Values might relate to team work, honesty, commitment, or excellence. Some organisations pride themselves on their core values and often make these a focus of their service offer. This creates an image of how the customer sees the organisation and what they can expect. As customers, this is now what we expect from The organisation. If they do not deliver their promised offer communicated through their core values then our expectations will not be met. This is an expectation that has been set by the organisations themselves through the creation of their core values |
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The implication of legislation on customer service |
Consumer Credit Act 2006 Misrepresentation Act 1967 Sale of Goods Act 1979 and 2001 Consumer Protection Act 1987 Trades Descriptions Act 1968 Data Protection Act 1998 |
