Customer service is very important as it contributes to a business’s competitive position. Customers of several businesses have choices regarding the services or products that they use and who supplies them. Quite often the technical features and cost of the product or service offered are almost identical. In this case, the quality of the customer service offered alongside the product or service makes a large difference to which business the customer chooses. You should ensure that your business makes the best possible use of the competitive advantage that can be gained from offering a superior customer service to competitors.
The value of using customer service as a competitive …show more content…
• You then need to identify these points within the customer service process and determine which ones have the most impact on the customers experience and also eliminate any negative impacts on the customer’s experience.
AC1.3 Describe techniques used to identify service failures.
Some techniques that can be used to identify customer service failures would be analysis of customer’s feedback, monitoring of things such as staff and processes and reviewing the supply chain.
Feedback is very important to identify where you may have gone wrong in customer service, gathering information from customers on particular topics and areas of service that may be unhappy with or they feel need have been lacking can help you to identify why and how to rectify that issue. The feedback is gathered from directly from your customer via comments through staff or customer service surveys, social media or direct communication from customers to the management team. Complaint data should be analysed in order to identify service trends, customer expectations and other service failures. This can be both quantitative and qualitative …show more content…
The service-profit chain is a theory and business model created by a group of researchers from Harvard University. They proved that there is a direct financial link between superior service experiences, customer loyalty, and financial performance (profit and growth).
Service profit chain establishes relationships between profitability, customer loyalty and satisfaction, loyalty, and productivity and satisfaction of employees. It is also defined as a special type of leadership that emphasises importance of employees and customers.
The links in the service profit chain model are as follows.
Profit and growth are typically derive from customer loyalty,, customer loyalty is a result of customer satisfaction. Satisfaction is mainly influenced by the value of services offered to the customers. Value, is often created by satisfied, loyal, and productive employees. Good employee satisfaction can result in high-quality services and policies that enable the employees to deliver good results to their