5.2 customer service 5 o perations m anagement 5.2 c ustomer s ervice on his birthday, a husband and...

5.2 CUSTOMER SERVICE

5.2 Customer Service

5 OPERATIONS MANAGEMENT

On his birthday, a husband and wife visit a store together. She goes off on her own to the home furnishings department. She tells her husband that she will meet up with him in 30 minutes.

When she arrives back she can’t find him anywhere. The Store Manager, seeing her slightly flustered demeanour, approaches her. “Madam”, he says, “You’re husband has been shot”. She turns and stares. “Not only that” says the Store Manager, “He has also been held under water for over five minutes!” Before she can open her mouth to say anything the Store Manager continues. “And that was before he was found hung”.

The woman laughed and left the store ten minutes later. “Thank you for such fantastic customer service” she said to the Store Manager. “I’ll definitely be back again”.

Why was the woman so pleased?


In this topic you will learn about

Importance of customer service

Consumer protection

Impact of ICT



IMPORTANCE OF CUSTOMER SERVICE

Customer service is the meeting of customer expectations before, during and after purchasing a good or service

For a small business it is essential to have good customer service in order to

Distinguish the product from the competition

Obtain repeat custom

Gain a good reputation

Customer service in the restaurant industry

http://www.youtube.com/watch?v=YyaU95yFkZQ


It is important to provide good customer service in a number of areas:

Reliability

Product information

After sales service


Can you think of two examples of products or services where each of the above areas of customer service are important to you.


Reliability

Customers want a product that will meet their requirements each and every time

Consistent quality will earn customer loyalty and repeat custom

Customers expect predictability when buying a product – does the good or service meet expectations?



Product information

To obtain the full benefit of a product the customer needs to know how it works

Expert knowledge of how a product works will allow the firm to inform customer needs when making a sale

Good customer service based on product information can make the difference between making and losing a sale


How can a firm ensure staff are both knowledgeable and able to provide customers with the service level

required?

http://www.youtube.com/watch?v=dSINO6MKtco


After sales service

Many products require an ongoing service

A good website, online helpdesk and a reliable repair/support team can provide this

This will increase the likelihood of repeat custom for new products aimed at a loyal customer base

Recommendation will also be key for small firms to increase their customer base


Can you identify these forms of after sales service?Eager Tuna (1 word)Yam Wart ( 1 word)

Princely Tours (2 words)

SERVICE WITH A SMILE

The Nasty Tourist

A group of Americans were touring Ireland. One of the women in the group was a real dragon, constantly complaining. The bus seats are uncomfortable. It's too hot. It's too cold. The food is terrible. The accommodation is awful.

The group arrived at the site of the famous Blarney Stone. "Good luck will be followin' ya all your days, if you kiss the Blarney Stone," the guide said. "Unfortunately, it's being cleaned today so no one will be able to kiss it. Perhaps we can come back tomorrow."

"We won't be here tomorrow," the nasty woman shouted. "We have some other boring tour to go on. So I guess we can't kiss the stupid stone."

"Well now", the guide said, "It is said that if you kiss someone who has kissed the stone, you'll have the same good fortune."

"And I suppose you've kissed the stone," the woman scoffed.

"No Ma'am," the frustrated guide said, "but I've sat on it."5.2 CUSTOMER SERVICE

CUSTOMER SERVICE


Tracey runs an independent travel agents, that prides itself on excellent customer service. She offers tailor made trips to cities across Europe. She spends time with each potential customers

helping them plan the perfect itinerary to meet their needs. The service offered includes everything from planning the trip, booking

hotels, flights and excursions and even offers to pick them up by taxi from home and drop them at the airport.

Question time1. What is meant by the term ‘customer service’? (2 marks)2. Explain 1 reason why product information will be important for

Tracey’s customers. (3 marks)3. Explain 1 way Tracey could offer a good after sales service.

(3 marks)4. Explain 2 benefits to Tracey of offering excellent customer

service. (4 marks)

CONSUMER PROTECTION

Trade Descriptions Act 1968 – retailers are not allowed to mislead consumers regarding the quality of a product

Sale of Goods Act 1979 – retailers must sale goods as described, of reasonable quality and that are fit for their purpose. Failure to do so entitles the consumer to a refund or a replacement

Food Safety Act 1990 – strengthened the law in a number of areas to improve quality in the food industry

Competition Act 1998 – prohibited anti-competitive behaviour by firms



CONSUMER PROTECTION

Customers are protected by law

This has an influence on business who must abide by consumer protection law or face the legal consequences

Advantages Disadvantages

Better reputation for UK firms Increased costs

More customers due to confidence in the product

Increases the likelihood of legal action

Reduces risk of UK products being undercut by poorly made products from home and abroad

A continuous process to keep up with new legislation regarding consumer protection


IMPACT OF ICT ON CUSTOMER SERVICE

You may enter - but you can’t come in!

I have space - but no room!

I have keys - but open no lock!

What am I?


Advances in ICT have allowed customer services to develop

These developments have been made possible through:

Websites

E-commerce

Global/International markets


Some may also argue it has had a negative impact. Do you consider these ICT developments to be positive or negative?

Touch tone telephones to choose options rather than speak to an operator.

FAQ on a web site rather than a person at a help desk.E mail customer service rather than a help line.



Websites

Websites allow consumers to access a firm’s products through the internet

They are cheap and easy for a firm to set up

They allow the consumer to identify and purchase products

They provide for after sales service with extensive information accessible to customers



E-commerce

Electronic commerce is any form of business transaction between the firm and a consumer through the use of ICT

The Internet allows access to customers 24 hours, 7 days a week

E-commerce improves the speed of sales

Small firms can source cheaper supplies through the Internet

Expansion through E-commerce is likely to be much less expensive than opening new stores



Global/International markets

ICT has opened up a global economy for small firms

Small firms no longer have to remain in local or regional markets

This also increases the threat of competition from abroad

ICT will help to improve customer service through quicker response times – an e-mail takes no longer to reach Australia than somewhere in the UK

Selling abroad may create problems due to cultural and legal issues in other countries

UNIT 5 OPERATIONS MANAGEMENT

You have now completed the second section of the course – Finance

During this time you will have learnt a lot of new terminology. It is a good idea to write down a glossary of key terms.

See how many technical terms you can think of under each heading

5.1 Production methods

5.2 Customer Service

Use your notes to ensure you have a complete list and then write a short definition for each one

5 OPERATIONS

5.2 customer service 5 o perations m anagement 5.2 c ustomer s ervice on his birthday, a husband and...

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