1.

0 Introduction to Customer Service

1.1 Introduction to Customer Service
1.2 What is Customer Service?
1.3. Contributing to the service culture
 Learning Outcomes
By the end of this chapter, you should be able to:
 Describe the essential elements of customer
service
 Discuss factors contributing to the service
culture
What is Customer Service?

Definition of Growth of
Customer Service
Service Sector

Consumer Customer
Behaviour Service
Shift Environment
 Definition
Customer service is 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 business.
 What is Customer-focused
Organization?

Customer-focused organization is 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.
 Characteristics of a Customer-
focused Organizations
They have internal and external customers.
• Focus on determining and meeting
customer needs.
•Information, products and services are easily
accessible.
•Policies are in place to allow employee
decision-making.
•Management and systems support and
reward employees.
• Reevaluation of business strategies and systems
is ongoing
Customer Service concept
 Factors
Affecting the
Growth of
Service Sector

1. Economic
2. Societal
 Economic

Today’s economy is affecting jobs in 3 ways:

•Quantity of jobs being created
•Distribution of jobs
• Quality of service jobs
Qty of Jobs Being Created
Factors that Impact Job Quantity
• Interest rates
• Consumer demand
• Advent of technology
Fig. 1.3: Numeric change in Wage and Salary Employment in Service-providing
Industries, 2010-2020 (projected).
Source: Bureau of Labour Statistics National Employment Matrix
 Distribution of jobs

2 parallel trends in job development:

1. Need for employees to be able to have

regular access to personal and professional
networks and to engage in collaborative
exchanges. (more jobs in metropolitan areas
– easy access with suppliers, customers,
technology resources

2. The ease of transmission and exchange of

info by means of technology called
telecommuting (e-work, telework)
 Quality of Service Jobs

Due to economic growth, low interest rates and new

job opportunities since the late 1900s. The need for:
• Networking: builds relationships inside and outside an
organization.
• One accomplishes this through meetings, interactions
and activities.
• Join committees and boards to secure invaluable
experiences.
Societal
• Shifts in Population & Labor Force
• Increased efficiency in technology (globalization)
• Deregulation of many industries
• Geopolitical changes
• Increase in the number of white collar workers
• More women entering the workforce
• Diverse population entering the workforce
(Racially & ethnically)
• More older workers entering the workforce
• Growth of e-commerce
 Factors that May Have Caused the Economic
Shift from Manufacturing to Service
Increased technology
Globalization
Deregulation
Geopolitical changes
More white-collar workers
Socioeconomic program development
More women entering the workforce
*White-collar work is performed in an office, cubicle, or other administrative setting. Other
types of work are those of a blue-collar worker, whose job requires manual labor and a
pink-collar worker, whose labor is related to customer interaction, entertainment, sales, or
other service-oriented work.
What does this mean?

Relate it to knowledge regarding your job such as

software,equipment, emerging technologies.

How could the above help

you in the workplace?
 Reasons for Increase in Older Workers
Result of social factors:
i. Most significant is because median age is rising
ii. Not enough entry-level people
iii. Other reasons may be economic and socialization
(they miss interactions and/or the work itself
 Growth of e-Commerce

• Do you surf the Net?

• Why?
• How Often?
• New way to access goods and services
through technology is called e-commerce.
Shifts in Consumer Behavior

• Leisure time
• Expectation of quality service
• Enhanced consumer preparation
The Components of Customer Service
Environment
 1.2. Contributing to the Service
Culture

1.2.1 Defining a Service Culture

1.2.2 Establishing A Service Strategy
1.2.3 Customer-Friendly Systems
1.2.4 Twelve (12) Strategies for Promoting
A Positive Service Culture
1.2.5 Separating Average Companies from
Excellent Companies
1.2.6 What Customers Want
1.2.1 Defining a Service Culture

What is a Service Culture?

• A service environment made up
of various factors, including the
values, beliefs, norms, rituals and
practices of a group or
organization
The Elements of a Service Culture
Employee Roles and Expectations

• The specific communications

or measures that indicate what
is expected of employees in
customer interactions and that
define how employee service
performance will be evaluated
Tools to Establish & Measure Employee
Performance Goals

• Realistic
• Understandable
• Measurable
• Believable
• Attainable - achievable
 Management Support
What is Empowerment?
• The giving of decision making and problem
resolution authority to lower-level employees in
an organization. This precludes having to get
permission from higher levels in order to take an
action or serve a customer.
1.2.2 Establishing a Service Strategy
• Know who the customers really are.
• Conduct an inspection of its system and
practices
• Review the needs of internal & external
customers
• Be familiar with the organizational goals and
works towards achieving them
• When things went wrong, evaluate the
situation and decide what role you played
1.2.3 Customer-Friendly Systems Components

• Advertising
• Complaint resolution
• Delivery systems
Delivery system:

• The method/mechanism used by an organization to deliver its

product and services:
• Direct -face-to-face interaction between service provider and
customers
• Indirect- customer’s needs are met primarily with self-service
through technology (possibly integrated with the human factor
and in customer contact/call centers) integrated with internet.
• Third party delivery (Outsourcing/Offshoring) - hiring third-
party companies or vendors outside the organization to deliver
product and services to customers or produce products.
 Advantages & disadvantages of
Outsourcing
• Drawbacks
• Benefits • Resulting to more complex management
• Eliminating large ongoing • Loss of long-term employee expertise
salaries.
• Ineffective CRM as customers normally
• Avoid the need to purchase and deals with strangers.
update a myriad of equipment
• Affect adversely the morale of
• Bringing in new, fresh outside survivors/employees
expertise and perspectives
• Employees’ loyalty to organization may
• Reducing company’s overhead wither Delay in getting response/task
completed due to distance or other barriers
• Quality of work may not up to expectations
Factors that organization needs to consider
before deciding on what delivery system to
use?

• Industry standard
• Customer expectations
• Capabilities
• Cost Current
• Projected requirement
 Tools to measure Service Performance

1. Employee focus 6. Customer comment

groups cards
7. Employee exit
2. Employee opinion interviews
surveys 8. Walk-through audits (ask
3. Customer focus customer directly on the whole
service system)
groups 9. On-site management
4. Mystery shoppers visits
(trained obeservers who act as 10. Management
‘normal’ cutomer to test services) inspections
5. Customer satisfaction
survey
 1.2.4
12 strategies to promote a positive service
culture
1. Explore your organization’s vision.
2. Help to communicate the culture and vision to customers daily.
3. Demonstrate ethical behavior.
4. Identify and improve your service skills.
5. Become an expert on your organization.
6. Demonstrate commitment.
7. Partner with customers.
8. Work with your customer’s interest in mind.
9. Treat vendors and suppliers as customers.
10. Share resources.
11. Work with, not against, your customers.
12. Provide service follow-up.
1.2.5 Separating Average Companies from
Excellent Companies
Practices of an excellent company:
1. Customers’ feedback is regularly asked and acted upon
2. Innovation and creativity are encourage and rewarded
3. Technology is widespread and of state- of the art quality
4. Continuous monitoring and evaluation over products and
services
5. Practice empowerment and open communication between
staff and all management levels.
6. Ongoing training to employees
7. Partnership with customers and suppliers
1.2.6 What Customers Want?
• Personal recognition
• Courtesy
• Timely service
• Professionalism
• Enthusiastic Service
• Empathy -Feel, Felt, Found technique Patience