Customer Service Lecture Notes BM.pdf

CUSTOMER SERVICE Lecture Notes Higher Diploma-Year 2 Dept: Business Management Do you think companies spend most of the time and energy attracting new customers or keeping existing customers? Which one is more crucial to a company, attracting new customers or keeping existing customers? Why? Cu...

CUSTOMER SERVICE Lecture Notes Higher Diploma-Year 2 Dept: Business Management Do you think companies spend most of the time and energy attracting new customers or keeping existing customers? Which one is more crucial to a company, attracting new customers or keeping existing customers? Why? Customer Customer is the king because he keeps every business afloat. Whether an organization offers a product or service, it cannot remain in business if it cannot find a group of people willing to become its customers. In this tutorial, we will discuss how we can keep every customer − existing or potential − happy and satisfied so that business flourishes. Who Are Customers? Anyone who is provided with a good, product, service or idea is a customer. Financial transactions may or may not be a part of this provision, which brings us to the two types of customers − •Internal Customers •External Customers Five Needs of Every Customer Every customer comes into the customer situation with differing wants. While wants are frequently hard to identify and may occasionally be unrealistic, all customers have the following five basic needs: Service: Customers expect the service that they think is appropriate for the level of purchase that they are making. A small, spontaneous purchase may have a smaller service need than a larger purchase that has been carefully planned and researched. Price: The cost of everything we purchase is becoming more and more important. People and businesses want to use their financial resources as efficiently as possible. Many products previously considered unique are now considered commodities. This means that while a consumer previously had to travel to the local hamburger restaurant to purchase a hamburger, now one can be acquired at many other locations. This makes the component of price even more important to the customer. Quality: Americans are less likely today to think of their purchases as throwaway items. Customers want the products that they purchase to be durable and functional until customers decide to replace them. This requirement of quality mandates that manufacturers and distributors produce products that live up to the customers’ expectations of durability. Customers are much less likely to question price if they are doing business with a company that has a reputation for producing a high-quality product. Action: Customers need action when a problem or question arises. Many companies offer toll-free customer assistance telephone lines, flexible return policies, and customer carryout services in response to the need for action. Customers are human beings and like to think that they are an important priority and that when a need or question arises someone will be ready and waiting to help them. Appreciation: Customers need to know that we appreciate their business. Customer service providers can convey this appreciation in many appropriate ways. Saying “thank you” to the customer through our words and actions is a good starting point. Preferred customer mailing lists, informational newsletters, special discounts, courtesy, and name recognition are good beginnings to showing our customers our appreciation. Additionally, letting them know that we are glad that they have chosen to do business with us conveys a positive message. A fastfood Internal Customers A customer directly connected with the organization is called an internal customer. Usually, internal customer is part of the organization, like stakeholders, employees, departments or shareholders. For example, every product has a user manual or user instructions associated with it. To develop these a content development team or department is created, which has to provide the material to the packaging department. Now packaging department would be the internal customer of the content development team. External Customers A customer who is external to the organization is called an external customer. For example, anyone buying a refrigerator, designer suit or software is a customer of the company manufacturing it. The concept of internal customers was introduced in 1988 by Joseph M Juran, a quality management writer. Since then this concept has become essential to ensuring organization wide total quality management. It is also believed that an organization that is able to satisfy its internal customers is better equipped to satisfy external customers. What is customer service Taking care of a customer’s needs and solving their problems is called customer service. Customer service begins the moment you connect with the customer to fulfill his needs and continues even after the requirements are met. The services might be required before, during and after the customer purchases a product or service. What is Customer Service Customer service is meeting the needs and expectationsof the customer as defined by customer."Meeting the needs and expectations the customer'' means you know what your customers want and what they expect, and you provide that to them on a consistent basis. Customer service is a series of activities designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the customer expectation. Examples of Customer Service 1. Receipt lookup or “return by” date on store receipts 2. Calling the customer by name 3. Easy return policy 4. Updated map of the area or Global Positioning System (GPS) in rental cars 5. A doctor calling you back to see how you are feeling after a profes- sional visit 6. On-time delivery 7. Easy-to-use and functional web site 8. Owner’s manuals and frequently asked questions online 9. Showing the customer that you care and illustrating courtesy and enthusiasm 10. Excellent follow-up 11. Empathy in handling customer complaints and questions 12. Well-explained instructions Competencies (1 of 2)  Communication.  Customer Sensitivity.  Decisiveness.  Energy.  Flexibility.  Follow-up.  Impact.  Initiative.  Integrity. Competencies (2 of 2)  Job Knowledge.  Judgment.  Motivation To Serve.  Persuasiveness/ Sales.  Planning.  Resilience.  Situation Analysis.  Work Standards. Statistics: Advantages of keeping customers Repeat customers spend 33% more than new customers. It costs 6 times more to acquire a new customer than it does to keep an existing one. As little as a 5% increase in customer retention can increase profits by 25% to 95%. Strategiesof building customer loyalty Building brand loyalty - Creating customer satisfaction Creating and maintaining relationships - Customer service - Facts about customer service 80% of business leaders believe their companies are doing a good job in the way they treat customers. Only 8% of customers agree. Facts about customer service 54% to 70% of customers who complain will do business with you again if they feel their problem is resolved. That figure jumps to 95% if the customer feels the complaint has been resolved quickly. According to the above recent reports, outstanding customer service is now rated as being more important than low prices and quality products! 2. Why it matters? Businesses need to recognize: The benefits of having satisfied customers; The costs of having dissatisfied customers . 3. Who offers it? Who gives customer service? Name some job roles… Shop assistants (salespersons) Receptionists Bank assistants Insurance agents Food servers Bus drivers Customer service representatives 3. Who offers customer service? Excellent customer service can only be achieved by training all employees, even those who do not have direct contact with customers. Happy employees make for happy customers. Rules for good customer service Answer your phone Make sure that someone is picking up the phone when someone calls your business. Don’t make promises unless you WILL keep them Listen to your customers Let your customer talk and show him that you are listening by making the appropriate responses, such as suggesting how to solve the problem . Deal with complaints Be helpful, courteous, and knowledgeable Words & phrases that build customer relationship Please. Thank you. I can/will… How may I help? I was wrong. You’re right. I understand how you feel. May I …? / Could we try …? Have you considered … I’m sorry for … It’s my/ our fault. What do you think? Would you mind? Express empathy to customers Use empathic phrases: “I can see why you feel that way” “I see what you mean” “That must be very upsetting” “I understand how frustrating this must be” “I’m sorry about this” Always say you’re sorry Role play (work in pairs) You have bought a mobile phone and it’s broken after only one week and you’re very angry about products not being made to last anymore. You want the salesperson to do something immediately. She is offering you a replacement and you want a refund. How to deal with different types of customers? The talkative customer Ask closed questions Limit the time available for them to interrupt (don’t have long pauses) Provide minimal response Smile and be pleasant, but don’t encourage them Wind up – thank them for coming, walk them to the door but don’t be rude or dismissive The angry customer Listen carefully without interrupting so you understand the problem Empathize in a broad way Stay calm and remain polite Don’t escalate the problem Don’t take it personally, be defensive or blame others Propose an action plan and follow it Seek support if you are scared, if you can’t agree on a solution or if the customer asks to see “whoever’s in charge” The ‘know it all’ customer Acknowledge what they say Compliment them on their research Be generous with praise Don’t put them in their place no matter how tempting Don’t try to be smart – you can’t win! Ask them questions and use them to improve your knowledge The indecisive customer Find out what they really want Ask them for the options Reflect back to them what they’ve said Assume control gently and point out the best course of action from what they’ve told you they need Be logical Confirm a plan of action with them Maybe even put it in writing The suspicious customer Establish your credibility Ensure you know your product or service They will try and catch you out so don’t guess or tell them something you’re not sure of Be careful what you say Be polite Don’t take it personally, they don’t trust anyone! 8 BUILDING BLOCKS OF CRM Assignment 1. 2. 3. 4. Define Costume Service Give 5 examples of customer service What are the five needs that every costumer has. What is problem solving and what is the roe of problem solving in customer service 5. Explain the problem-solving process 6. Explain 2 problem-solving strategies 7. What is communication 8. List and define the five methods of communication 9. List 4 word to avoid and 4 words that you can use when communicating with costumers 10.Define customer retention. THANK YOU