“Plan are nothing planning is everything”
Overview Customer Service
1. INTRO – Definition
2. Changes factor : Eco, Socio – Culture and Demographic
3. Factor responsible for shift to a Service culture – 3 C + 1T
Competitive, Customer DD , Consumer behavior & Technology
4 . What is Service Culture
• Equipment based & People based service
5 .Element of Service Quality – REAR
Responsive, Empathy , Assurance, Reliability
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What is Marketing MIX – 4P’s
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Customer – Friendly System – backs up the service people designed for convinenince.
6. Strategies for promoting positive service culture
1. Conduct Service audit
2. Develop a company wide service strategy
3. Conduct training for employee
4. Implement Service improvement program
5. Make service improvement permanent.
7.Closing:
Summary of keys points.
Definition
• Customer service is the lifeblood of any business.
It is not what people think – the forced smiles &
greeting one gives a customers .
• Customer service is the fundamental approach to
the standard and service quality . Its cover every
aspect of company operation from design of
product / service to how it is packaged ,delivered
and serviced . It has many definition to many
different people .
General Definition
• CS covers all the activities that an organisation carries
out in order to meet the needs and expectation.
• Thus CS entails the provision to customer before,
during and after purchase.
• Jemier L.Scott (2002) defines it as a series of activities
designed to ehnance the level of customer satisfaction.
• The feeling that a product or services has met
customer expectation.
• A Good CS is supposed to match and exceed customer
expectation.
What is satisfaction
• is a person’s feeling of pleasure or disappointment
resulting from comparing a product’s perceived
performance or outcome,
• In relation to his or her expectation.
Example:
• Companies aiming for Total Customer Satisfaction”.
(TCS)
• Xeror , guarantees “TCS”, will replace of its expenses
any dissatisfied Customer’s equipment for a period of
three years after purchase.
• Customer Japanese word “ Honored Guest”
Measure Customer Satisfaction
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Complaints
Suggestion system
Customer Satisfaction- Survey
Ghost shopping
Lost Customer Analysis.
The Economic Environment
• The overall health of the economy influences
how much consumer spend and buy.
• Consumer buying plays important role in the
overall economic activity.
• Marketing activity is directed toward satisfying
consumer wants and needs.
• Organisation must understand how economic
condition influence consumer buying decision
and customer services
Socioculture Enviroment
• Socio-cultural environment represent the values, attributes
and general behaviour of the individuals in a given society.
• The Socio-cultural evolves slowly.
• The recent year seen a substantial change in individual
values, family structures, leisure activities.
• These changes have affected the customer preferences for
services.
• Younger generation, particularly college students
referred to as generation X they need and wants are
different and affected the customer service.
. Service marketer often must adjust their offering and
marketing mixes to adapt to Socio - cultural changes.
Demographic
• China and India will account for most of this
increase . Europe over the next 30 years is
expected to have a declining population . The
United States is the only major developed
country projected to show a population increase
from 263 million (current) to 331 million by 2025
• A major trend is the ageing of the world’s
population, caused primarily by declining
mortality rates .
• Corresponding changes in consumer preferences
for services.
List the six major components of a
customer-focused environment
• Create customer focus throughout the
business
• Listen to the customer
• Target customer precisely
• Make customer value the guiding
• Measure and manage customer expectation
• Build customer relationship and loyalty
Factors responsible for shift to a
service culture
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Competitive
Customer demand better quality
Consumer behavior
Technology
Competition
• The competition among the Industries for
higher – quality products and services for
sustain their business and profitability.
• Thus providing more than consumer needs.
• Government regulation especially for legal and
medical services for more efficient.
Customer demand better quality
• Firms around the Globe have responded to
driving force by creating total quality
management system to reduce the product
defects.
• Any company wishing to compete with rivals
having better products and services had use
TQM.
• Adding the more services to their product
product mix to meet customer satisfaction.
Consumer behaviour
• Changing Values, Attitudes and Lifestyles
• Each individual has personal motivations,
perceptions and preferences.
• These influenced by their age, income, education,
job position, personality, attitudes and lifestyles.
• Different satisfaction level
• “ want the best” , “want- everything done”
• “ keep it simple” , “own expert”
• Younger generation highly educated and
computer expert.
Technological Environment
• The technological emerge as primary factor
changes in service.
• Technological advances improve the productivity
of service, create new methods
for business expansion.
example:
Rise of virtual business schools, videoconferencing
technology ,
Service Culture
• Term service covers a wide range of products.
• A general definition services as intangible
tasks that satisfy consumer and business user
needs.
• Service culture growing importance for
Organization to sustain and retain the
customer.
Classification of Services
• Equipment based and people based Services
Equipment based and people based
Services
• Equipment based services
• Automated services ( automated bank tellers),
Equipment operated by relatively unskilled
operates ( car washes)
Equipment operated by skilled operates (
airlines)
• People based services – maid, professionals.
Elements of a Service Culture
1. Responsiveness – Promptness and helpfulness
2. Assurance – Competence, Courtesy & Credibility
3. Empathy – Good communication & customer
understanding
4. Reliability - Dependable performance
Responsiveness
• Involves the willingness and readiness of
Organization staff to provide service.
• Responsive services immediately handle an
emergency at Medical center, promptly record
frequent flyer mileage and return phone calls
before the end of the day
Reliability
• Refers to the consistency and dependability of
the service provider’s performance.
• GM’s Mr. Goodwrench advertising campaign
emphasizes this determinant of service quality
• In promoting dealership auto repair services.
Assurance
• Refers to the confidence communicated
service provider. A physician with friendly
bedside manner, H &R block’s guarantee and
warranty provided by Termine’s are example.
Empathy
• Results from the providers effort to
understand customer’s needs and then
individualize service delivery. Dean Witter’s
Slogan” Serving one investor time “
Marketing Mix- 4P’s
• When a company pursues the goal of a culture
of service, it must design its marketing mix to
support the decision. Marketing Mix as
blending of four strategic elements – product,
price, promotion & place
The Service provider
• Most of buyer form the perceptions of service
quality during the service counter,
• The actual interaction points between
customer and the service provider .
Types of Service Organisations:
• Frontlines employees like bank tellers,
receptionists, and airline ticket agents.
• Entertainment, Health care, Food service,
transportation.
Services provider -Job responsibility
• Supporting the customer on their work toward
business goals and objectives. Anderson, Neville
clark for example provides consulting services to
help businesses improve the effectiveness of
their management, finance and technology
program
• Service Purchases hire outside firms to perform
core tasks of the business , outsource the its
distribution activities.
• Distribution activities –Outsourced –alerts its
delivery schedule and priorities.
Customer- friendly systems
• The delivery system that backs up the service
people is designed for convenience of
customers rather than the convenience of the
firm and its staff.
• The physical facilities, policies, procedures,
methods and communication processes all the
say customers.
Well-Conceived strategy for service
• Highly competitive firms have discovered,
invented, or evolved a unifying idea about
what they do.
• This service concept or service strategy directs
the attention of the people in the company
toward the real priorities of the customer.
Strategies for promoting a positive
service culture
1. Conduct a service audit
2. Develop a company wide service strategy
3. Conduct ‘wall to wall’ employee training
4. Implement the service improvement program
5.Make the Service improvement permanent
Conduct a Service audit
• Audits mean measurement ; tracking
customer satisfaction. The features of service
that are important to customers and how they
prioritized is the starting point to design a
customer service audit.
• An audit evaluates how well a firm rates in
comparison to its rival service mix.
Develop a company- wide service
strategy
• A firm needs a service mission statement
clarifying how its competitive advantage is
based on service quality delivery
• Eg. Frito-lay, a maker of snack foods defines
service as 99.99%
Conduct ‘wall- to –wall employee
training
• Training employees to deliver excellent service
is an investment in future earnings.
• Managers in companies that deliver excellent
service know that there is a link among
customer satisfaction, employee morale and
service quality training.
Implement the service improvement
programme
• Employee empowerment, most companies
implement service quality improvement
programme by expanding the discretion of
front-line employees as they work to improve
service quality
Make the service improvement
permanent
• To make service improvement permanent,
work force management practices such as
performance measurement, incentive system
design and communication practices have to
be changed.
• Employees learn new service focused job
behaviour , employees to be rewarded when
they succeed in delivering excellent service.
• Create new culture based on service.
Strategies for promoting a positive
service culture.
• Firms must identify the service mixes that
successfully attract consumers.
• Extend their services by offering new services.
For example telephone companies have added
a variety of new functions to basic telephone
access.
• Customers can identify callers before
answering their phones.