Slide 1

Customer ServicePresented By Mr. BILAL YOUNISWho is the customer?Who is the customer?McGraw-Hill/IrwinRetailing Management, 7/e 2008 by The McGraw-Hill Companies, All rights reserved.1Who is the customer?

Facilitator Notes: We want learners to know that they will be serving a WIDE VARIETY of individuals.ALL of whom are VIPs to our Division.2What is customer service?A definition

Customer service is the sum total of what an organisation does to meet customer expectations and produce customer satisfaction.

Perceptions of Customer Service For our customers, perception is reality!

Perceptions are created at every contact.

Perceptions are dynamic and individual; perceptions change moment to moment and from person to person.

Assess perceptions of customer service by asking:How do my customers see me? How do I see my service?4Facilitator Notes: Ask learners what gives them perceptions of service level at places of business they frequent. Ask for an example of a difference between how an employee can see their service in one way and the customer can see that same service in another way.What is Good Customer Service?Philosophy of excellence in customer service must be incorporated into day to day operations.

Systems must be built to provide structure to both the customer and the employees who serve them.

Staff should be given the right tools, training and consistent support.

This is NOT an overnight program!

Strategic Advantage Through Customer ServiceGood service keeps customers returning to a business and generates positive word-of-mouth communication, which attracts new customers

The challenge of providing consistent high-quality service offers an opportunity for a business to develop a sustainable competitive advantage6Statistics: 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%.Ladder of customer loyalty AdvocateSupporterClientCustomerProspectCustomer Service StrategiesPersonalized ApproachGreater benefits to customersGreater inconsistencyHigher costStandardized ApproachLower costHigh consistencyMeets but does not exceed expectations

9Personalized Approach Personalized Approach encourages service providerto tailor the service to meet each customers personal needs. Store sales associates offer individual customer service Electronic Channel instant messaging

Drawback: Service might be inconsistent Customized service is costly

10Standardization Standardization Approach is based on establishing a set of rules and procedures and being sure that they are implemented consistently. Retailers that use this approach: McDonalds Wal-Mart IKEA Dollar General Save-A-LotThe McGraw-Hill Companies, Inc./John Flournoy, photographer

11Cost of Customer Service High levels of customer service can be costly, but good customer service is worth an investmentIt costs more to acquire customers than to generate repeat businessCOSTPROFIT12Critical Customer Service MomentsPrimacy: The first contact leaves a powerful impression.Visual- front office spaceVerbal- greeting

General tone of conversation

Recency: The last contact leaves a lasting impression.Result: Did the customer get what they expected?What was the last interaction?13Facilitator Notes: Emphasize that all points of contact are important; from beginning to end.

First Contact:

The space that you work in should be neat and presentable. If your work space needs tiding up, then take the initiative to do so.

Acknowledge the customer with a smile.

Last Contact:

Be courteous.Confirm customers satisfaction.People want to be valued and appreciated.

When the customer leaves the facility:Thank the customer for coming.Express to the customer you look forward to seeing them on their next visit.Get to know the customer.Call them by name:Mr. JonesMrs. JonesMiss SmithDr. JonesUsing a customers first name may not always be appropriate.

Learn the customers behaviors and personalityFor example: Some customers do not want to hold a conversation.

Received complaints may reflect only the Tip of the Iceberg14

14ComplaintsActual dissatisfied customers!

15

15Barriers to Good Customer ServiceWe all want to provide good customer service to the consumers. Sometimes there are barriers present that may result in providing poor customer service. The first type of barrier is a human barrier. What do these barriers look like?Dont care about your consumersDislike for jobProlonged stressTiredPersonal problemsWhat can you do to overcome human barriers? Take care of yourself if you are stressed. Get rest. Remember: a good habit of a professional is to check your personal life at the door while working. Brush up on your basic skills. The other type of barrier is environmental. These are generally out of our control. What do these barriers look like?Technology issuesLack of trainingLack of knowledgeShort-staffedLegal barriersIssue is not your responsibilityWhat can you do to overcome environmental barriers? Pump up the human skills. Work around them, inform the consumer about the barrier, and give an alternative solution. The worst thing we can do is use an environmental barrier as an excuse. 16The Customer Service GapEXPECTED SERVICEPERCEIVED SERVICECustomer Service Gap17Facilitator Notes:

What is Customer Satisfaction?

Customer satisfaction is their:belief of success or failure of the service provided.belief about equity or fairness.friends beliefs about the service provided.The way the encounter is interpreted by the customer is more important than what actually happened.

Expected Service is what your customer wants. Perceived Service is what they feel they received. The gap is what we want to CLOSE. We want them to receive what they expect. The important thing here is for learners to know that it is far more important what the CUSTOMER feels about the interaction than what WE feel about the interaction.

Perceived Service Cues used to assess serviceReliabilityAssuranceTangibilityEmpathyResponsivenessPerceived Services evaluations are based on perception18Assessing Service CharacteristicsHow customers rate service providers:

Reliability: Deliver as promisedResponsiveness: Positive, prompt and politeEmpathy: Care, concern and considerationTangibles: Quality, appearance and easeAssurance: Courtesy, respect, helpful and knowledgeable

Customers do not care what you know until they know you care. L.L. Bean19GAP Model for Improving Service Quality

20GAP Model for Improving Customer ServiceKnowledge Gap -- knowing what the customer wants

Standards Gap -- setting service goals

Delivery Gap -- meeting and exceeding service goals

Communications Gap -- communicating the service promise21Meeting and Exceeding Service Standards: the Delivery GAPProvide Instrument and Emotional SupportImprove Internal CommunicationsEmpower Store EmployeesProvide incentivesDevelop Solutions to Service ProblemsDevelop New SystemsUse Technology22Support for Service Providers Instrumental Support associates need to have the appropriate systems and the right equipment to deliver the services

Emotional Support associates need emotional support from their coworkers or a concern for the well-being of others23EmpowermentMeans allowing employees at the firms lowest levels to make important decisions regarding how service is provided to customers

24Using Technology

Organization are using technology to assist sales associates in providing customer service

25Thank You