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CHAPTER ONE

1.0 INTRODUCTION

This chapter contains the background to this study, statement of the problem, scope of the study, research objectives and questions, significance of the study and structure of the report.

1.1 BACKGROUND

Customer care is a core function of the sales department in an organisation. Fora company to survive in the competitive world and achieve its objectives, it needs customers to consume its products. The number of customers always impacts onthe sales performance, hence the need to satisfy and retain them.Customer care involves putting in place working systems to maximize customer satisfaction with the companys products. It is a prime consideration for every business, because sales and profitability greatly depend on satisfying customers. Ithelps an organization attract, retain and maintain a satisfied customer base tha

t will consume the products constantly. Sales performance is greatly determinedby customer satisfaction because a satisfied customer will become loyal and willadvertise the products to his/her friends, relatives and associates, hence sensitizing them about it, thereby increasing on the sales. The scope of customer care within an organization is very wide and involves topics like efficacy of operations, diagnosing and catering for dissatisfied customers. Customer care involves measuring the level of customer satisfaction, which varies with sales performance. It also involves identifying customers needs and satisfying them, buildinggood working relationships with our colleagues, Managing communication, expectation and perception, securing a competitive edge in recruitment and retention.(Schindler, 2008)Customer care in the broadest sense aims at achieving the organizational objectives of increasing sales through satisfying customers. The specificlegal definition varies from organization to another. The Red Pepper started ab

out 9 years ago and has since grown into a leading news paper, because of its strict observation of customer care. The companys circulation capacity has grown from 800 copies in 2004 when it began, to over 5,000 copies daily nowadays; something that wouldnt be possible hadnt management put into the consideration the needfor customer care. At Red Pepper, customer care is regarded as set company policies and procedures to attract and retain customers, hence improving sales performance.

1.2 STATEMENT OF THE PROBLEMCustomer care affects the sales performance of a company. Although Red Pepper puts customer care into consideration, therere shortfalls that have been ignored, w

hich negatively impact on the companys sales. The researcher is to discover these shortcomings and suggest mediums through which sales performance can be impro

ved. For this reason, Red Pepper conducts training sessions for employees, to ensure they can attract and retain clients, to improve on the sales performance. Red Pepper hasnt fully implemented theoretic and practical skills of customer care, which negatively impacts on its sales. For this reason, the researcher was prompted to look into the workings of customer care with regard to improving salesperformance at Red Pepper.

1.3 PURPOSE OF THE STUDYI. The main purpose of this study is to establish whether theres customer care ma

nagement at Red Pepper.II. To establish the effects of poor customer care to the companys customer baseand consequently on its sales performance,

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III. To determine the performance of sales at Red PepperIV. To establish how sales performance can be improved through improving customer care management.V. To establish strategies and mechanisms to improve customer care management inorganisations and Red Pepper in particular.

1.4 RESEARCH OBJECTIVESThe following are the main objectives of this study;

i. To establish the level of customer care at Red Pepper

ii. To establish the level of sales performance at Red Pepper.

iii. To determine how customer care at Red Pepper has impacted the companys levelof sales.

Iv. To determine how sales performance at Red Pepper can be improved by enhancin

g customer care.

1.5 RESEARCH QUESTIONS

i. What is the customer care function of Red Pepper?

ii. What is the level of sales performance at Red Pepper?

iii. How has customer care at Red Pepper impacted on the companys sales performance?

1.6 SCOPE OF THE STUDY

The study will be carried out in the Sales and circulation of Red Pepper. The researcher reviews literature on Customer Care Management and Sales Performance atRed Pepper since 2004 to date.

1.7 SIGNIFICANCE OF THE STUDY

i. This study will help management of the company to point out ways of improvingCustomer care, thus enhancing Sales performance.

ii. In addition, the researchers knowledge about the function of customer care management will considerably be widened.

iii. Other organisations and entities will pick a leaf and companies that have been neglecting customer care will realise the advantages of customer care, how to implement customer care policies, as a way of improving and maintaining theirSales performance.

1.8 STRUCTURE OF THE REPORTThis report consists of five chapters in this order; Chapter one comprises of th

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e background, problem statement, purpose and scope of the study, research objectives and questions, among others as already looked at. Chapter two reviews literature on the respective variables, chapter three looks at methodology, chapter four deals with results and discussion of findings and the final chapter consistof a summary of the findings, conclusions and recommendations.

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTIONThis chapter reviews literature on the respective variables. This involves goinginto details of Customer care and its management at Red Pepper. It will involve; what customer care is? Understanding your customers, Measuring customer service levels, Customer feedback and contact programs Customer loyalty schemes, Usin

g customer care to increase sales, How to set up and use a customer-feedback program. This chapter also includes the trend of sales performance at Red Pepper plus analyzing how customer care impacts on the level of sales performance at thecompany.

2.1 CUSTOMER CARECustomer care service is a series of activities designed to enhance the level ofcustomer satisfaction that is, the feeling that a product or service has met thecustomer expectations, hence customer satisfaction. (Scott, 2002). Good customer service is the bread and butter of our business. For customers are vital stakeholders of the business and if they dont play their role of consuming the products, then it would be useless to produce more. Thus customer should be treated as

a king or queen. At Red Pepper, customer care can only be done after identifying our customers.

Who are our customers?These are individuals or organisations that directly or indirectly consume our products, through our sales and promotion efforts, or after being sensitised about the product by their friends or relatives. At Red Pepper, our main customers are the readers and advertisers. However, employees of the company are also regarded as customers. Under customer care at Red Pepper, the company considers two main types of customers i.e. External and Internal customers. Customer care at the company is thus done for these two core types.

Types of Customer care

a) External Customer CareExternal customers are students, parents, funders, public agencies and private entities (Advertisers), business partners, etc, who buy our product for one reason or another. They form the companys core customer base and always shape the performance of sales.

b)Internal Customer CareInternal customers are our colleagues, workmates, bosses, etc who should all relate together well as each others customers, for the good of the company as a whol

e, and people as individuals. We dont all deal directly with external customers but those who do cannot provide a good service unless they are well supported bythe rest of us. In this study however, the researcher shall dwell more on extern

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al customers.

At Red Pepper, Customer care is done at three major levels; On the Streets, at Branch Offices and Company promises.

a) Customer care on the streets;

Here the news paper vendors are trained and equipped with skills of selling thenews paper to buyers on the street.b) Customer care at the company premises;Here, the company ensures customers, especially advertisers who bring business to the companys premises are well handled and their needs are met effectively, within the desired time.

c) Customer at bureau offices and branch officesBeing a well established company with branches almost all over the country, theRed Pepper ensures that managers and bureau chiefs at all the companys branch offices are well equipped with customer care skills, such that all clients are hand

led and regarded as kings, since they impact a lot on the sales revenue. The Companys customer care department is run hand in hand with the sales and promotion department, which directly deals with sales and revenue collection.

2.1.1 UNDERSTANDING OUR CUSTOMERSCustomer service is an integral part of our job and should not be seen as an extension of it. A companys most vital asset is its customers. Without them, we would not and could not exist in business. When we satisfy our customers, they not only help us grow by continuing to do business with us, but recommend us to friends and associates. Theres therefore a need to understand our customers needs and wants, tastes and preferences, desires and time of consumption, such that we can produce a timely product that fits their tastes and offers value for their money.

At Red Pepper, immediate customers are readers and advertisers. This is the companys main customer base that enables it to improve sales by buying the news paperin large quantities.

Good customer care is therefore about:

a) Meeting our customers needs.b) Knowing how to deal effectively with our customers in all circumstances.c) Building good working relationships with our colleagues.d) Managing communication, expectation and perception.e) Securing a competitive edge in recruitment and retention.

2.1.2 BASIC OBJECTIVES OF CUSTOMER CAREThe primary objective of the Customer care function is to help the company put in place policies to ensure that the company attracts, builds and maintains a strong and reliable customer base that will in time become loyal consumers. Sufficeit to say that its strong customer base that in the long run help the company fulfill and achieve its other objectives and aims, like increase in revenue, profits, existence and completion in the industry, etc since customers are the solecustodians of the revenue that is so much needed by the company.The next objective of customer care is to create a good image about the companyand its product, through showing respect and appreciation of customers as beingvital to the continued survival of the business. The only way we can determine w

hether our customers a re satisfied or not is by putting in places measures forour levels of customer care.

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2.1.3 Measuring Our Customer care Service Levels

Customer care is more directly important in some roles than others. For receptionists, sales staff and other employees in customer-facing roles, customer care should be a core element of their job description and training, and a core criterion when recruiting. Thus the levels of customer care vary from one department or location to another. However, the simplest way to measure customer care is by

following the Ten Commandments of Customer Care, as stipulated by Friedmann (2003) below.

The Ten Commandments of Customer Service

1. Know who is boss:We are in business to service customer needs, and we can only do that if we knowwhat our customers want. When we truly listen to our customers, they let us know what they want and how we can provide good service. At Red Pepper we never forget that the customer pays our salary and makes our jobs possible.

2. Be a good listener:

Take time to identify customer needs by asking questions and concentrating on what the customer is really saying. Listen to their words, tone of voice, body language, and most importantly, how they feel. We need to beware of making assumptions- thinking we intuitively know what the customer wants. There are three things that are most important to our customers at Red Pepper; Effective listening and undivided attention are particularly important on the show floor, where thereis a great danger of preoccupation, looking around to see to whom else we couldbe selling to.

3. Identify and anticipate needs:Customers don't buy products or services. They buy good feelings and solutions to problems. Most customer needs are emotional rather than logical. The more youknow your customers, the better you become at anticipating their needs. At Red P

epper we communicate regularly to our customers so that we are aware of their problems or upcoming needs.

4. Make customers feel important and appreciated:Treat them as individuals. Always use their name and find ways to compliment them, but be honest and sincere to customers. People value sincerity and it createsgood feeling and trust. At Red Pepper we think about ways to generate good feelings about customer doing business with us. Customers are very sensitive and know whether or not we really care about them. We thank and appreciate them every time we get a chance, give them greeting cards plus calendars. While in the field, we are sure that our body language conveys sincerity. Our words and actions should be honest.

5. Help customers understand your systems:Your organization may have the world's best systems for getting things done, butif customers don't understand them, they can get confused, impatient and angry.At Red Pepper we take time to explain how our systems work and how they simplify transactions. This is done by occasionally inviting customers to our social functions and or attending such functions when invited by customers.

6. Appreciate the power of "Yes".Always look for ways to help your customers. When they have a request (as long as it is reasonable) tell them that you can do it. Figure out how afterwards. Loo

k for ways to make doing business with you easy. At Red Pepper, we always do what we say we are going to do.

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7. Know how to apologize:When something goes wrong, apologize. It's easy and customers like it. The customer may not always be right, but the customer must always win. Deal with problems immediately and let customers know what you have done. Make it simple for customers to complain. Value their complaints. As much as we dislike it, it gives usan opportunity to improve. At Red Pepper we apologize to customers in case of any shortcoming, e.g if editors unknowingly publish a wrong story and customers c

omplain, we always run an apology in form of a correction in the papers.

8. Give more than expected.Since the future of all companies lies in keeping customers happy, think of waysto elevate yourself above the competition. At Red Pepper we consider the following:

a) What can we give customers that they cannot get elsewhere?b) What can we do to follow-up and thank people even when they don't buy?c) What can we give customers that is totally unexpected?

9. Get regular feedback.Encourage and welcome suggestions about how we could improve our products or services. At Red Pepper, there are several ways in which we can find out what customers think and feel about our services.

a) Listen carefully to what they say.b) Check back regularly to see how things are going.c) Provide a method that invites constructive criticism, comments and suggestions.

10. Treat employees well:Employees are our internal customers and need a regular dose of appreciation. Weshould thank them and find ways of letting them know how important they are. Ap

preciation stems from the top. At Red Pepper we treat our employees with respectand chances are that they will have a higher regard for customers for example,effective employees are well motivated, promoted, taken

for further training and remunerated well. Treating customers and employees wellis equally important.

2.1.4 Customer feedback and contact programThe most vital section of customer care is establishing and developing communication channels through which customers can get back to us with their complaints and suggestions about improving the products. Theres therefore a need for constantinteraction between a company and its customers, as the best way to determine their specific needs, tastes and preferences, so as to enable the company produceproducts that suit customers needs. At Red Pepper, customer feedback is executedthrough a number of communication channels that were put in place by the company to enable them receive, process and react upon customer complaints and suggestions. These channels include 24 hour Telephone system, an established web siteWWW.RedPepper.Com, fax, email, suggestion boxes, hot lines, to mention but a few, all of which gather information for the customer, that helps the company direct their product towards satisfying customer needs, while still complying withthe law. At times questionnaires are sent out to the public, to gather customersopinion about the company and its product. Through this communication system, the company also requests customers to avail their contacts, through which feedback can be sent to them, or in case the company wants to inquire whether the speci

fic needs of a particular customer have been satisfied.

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2.1.5 Customer loyalty schemesTruth to be told, a satisfied customer will become loyal to the company and itsproducts, to the extent that he/ she consumes emotionally. Such a customer can stand up and defend the company and its products if attacked by others in society. However, its not easy to create a satisfied and loyal customer base. A huge range of factors can contribute to customer satisfaction, but our customers-both consumers and other businesses are likely to take into account:

i. How well our product or service matches customer needs.ii. The value for money we offer.

iii. Our efficiency and reliability in fulfilling orders.iv. The professionalism, friendliness and expertise of our employees.v. How well we keep our customers informed.

vi. The after-sales service we provide.

Training courses are useful for ensuring the highest possible levels of customercare. In the case of Red Pepper, people that need training include news paper a

gents and vendors, receptionists, accountants, advertising officers, sales and marketing officers, middle and line managers, bureau chiefs and branch office managers, among others.

2.2 Sales performance Management

In essence, Sales performance management is the optimization of an individual orteam's sales. In addition to the raw numbers, sales performance management is also measured by the quality of the sales in terms of customer satisfaction, as well as customer loyalty expressed through repeat business. Sales can be managedusing a number of performance management tools that help educate and motivate the salesperson or team, set goals, and measure customer satisfaction. (McLelland,

2010)

Identification

1. Sales performance uses raw data concerning the number of customers a sales associate speaks to compared with the number of actual sales. By reviewing the sales performance of an employee, a sales performance manager can determine his strengths and weaknesses and tally them with the company objectives.Significance2. Sales performance can indicate the rate of customer loyalty to the businessor a specific employee. Customer loyalty refers to customers who regularly purchase products from the business and refer other customers to the store. Enhancingsales performance can automatically enhance the number of loyal customers, thereby enhancing the inflow of income into the company.

Types3. Meeting monthly sales quotas is another aspect of sales performance. Settingmonthly goals for each employee based on his/her past selling records can help determine if he/she is sharpening his/her sales techniques or falling behind.

Considerations4. Sales performance can also indicate whether a department is overstaffed. By comparing the sales numbers based on the monetary amount spent on staffing, manag

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ers can determine ideal staffing levels. (McLelland, 2010) This helps to reducecompany expenditure, thereby saving revenue.Sales performance at Red Pepper is regarded as the target sales volume in a given period of time for instance; on daily, monthly or quarterly basis. If the sales volume is high in number of copies circulated, then the performance is good and the reverse is true.

2.2.1 Measuring performance of sales

Sales performance is an organization can easily be measured using Key performance Indicators or KPI. Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals. (John, 1997). Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measureprogress toward those goals. Key Performance Indicators are those measurements.

What Are Key Performance Indicators (KPI)?

Key Performance Indicators are quantifiable measurements, agreed to beforehand,that reflect the critical success factors of an organization. They will differ depending on the organization. A business may have as one of its Key PerformanceIndicators the percentage of its income that comes from return customers. Red Pepper focuses its Key Performance Indicators on readers buying more papers and advertisers booking lots of advertising space. A Customer Service Department has one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute, etc.

Whatever Key Performance Indicators are selected, they must reflect the organization's goals, they must be key to its success, and must be quantifiable. Key Performance Indicators usually are long-term considerations. The definition of whatthey are and how they are measured do not change often, but theyre also impacted

upon a lot customer care. The goals for a particular Key Performance Indicatormay change as the organization's goals change, or as it gets closer to achievinga goal.

2.2.2 Key Performance Indicators Reflect the Organizational GoalsAs an organization that has as one of its goals "to be the most profitable company in our industry, Red Pepper has Key Performance Indicators that measure profit and related fiscal measures. Pre-tax Profit and Shareholder Equity are among them. However, Percent of Profit Contributed to Community Causes probably is notone of its Key Performance Indicators. On the other hand, a school is not concerned with making a profit, so its Key Performance Indicators will be different. KPIs like Graduation Rate and Success in Finding Employment after Graduation, though different, accurately reflect the schools mission and goals.

Key Performance Indicators Must Be QuantifiableIf a Key Performance Indicator is going to be of any value, there must be a wayto accurately define and measure it. Generating More Repeat Customers is uselessas a KPI, without some way to distinguish between new and repeat customers. Be The Most Popular Company won't work as a KPI because there is no way to measure the company's popularity or compare it to others. It is also important to define the Key Performance Indicators

and stay with the same definition from year to year. For a KPI of Increase Sales,

you need to address considerations like whether to measure by units sold or by Shilling value of sales. Will returns be deducted from sales in the month of thesale or the month of the return? Will sales be recorded for the KPI at list pric

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and from the market. The collected data is analysed by statistical professionalsand automated company algorithms. Analyzed data is sent to the benchmarking repository, ready to be used for decisions making and solution identification. TheBenchmarking is done at the internal, externally and process benchmarking levels.

2.3 CUSTOMER CARE AND SALES PERFORMNACESales performance is used to determine the ability of a sales person or team toclose a deal with the company and meet set performance goals as outlined by thecompany or business. A Sales performance can enhance the future of a sales associate's career. It can also be the cause of the end of a career of a salespersonor a business. (McLelland, 2010) Successful and sober sales teams will endeavourto attract retain and maintain customers, since they greatly impact on the companys revenue at the end of the day. However, this is very unachievable, unless the sales team and company as a whole put customer care into consideration. At RedPepper, a company that began with very few customers, the level of sales was initially low, something that management attributed not to its products, but to th

e level of customer care. Hence from 2005, when the

company set out to pamper and produce to the satisfaction of their customers todate, the companys sales revenue has greatly improved.

Function1. A sales performance is designed to measure the work of a sales person in thework place. The sales performance can be used as a tool for a manager to rewardor reprimand an employee. It can also be used for training purposes to find outif the employee is meeting the company's preset selling standards. Many sales performance reviews have a set of guidelines that a manager must follow in judgingthe work of the sales person. Red Pepper measures the level of customer care by

judging the sales performance. High sales means customers are satisfied and sensitize others about Red Peppers products.

Benefits2. The benefits of a good sales performance can lead to promotion for the salesperson, an increase in the pay scale and sometimes better parking for employee of the month, but the overriding benefit goes to the company, in form of increased revenue. Employees are greatly

rewarded once sales volumes increase at Red Pepper. This indicates that satisfied customers are consuming in large volumes.

Time Frame3. A sales performance is usually for a certain period of time the employee hasworked, or the company has set to achieve certain goals and objectives. In somecases, the sales performance of a seller or company can be rated monthly, quarterly, every six months or annually. Red Pepper employs a strategy of dividing theyear into quotas, over which sales targets are set and determined. If a salesperson has a poor performance during one period, they have an opportunity to make it up during the next period of the sales performance review.Warning4. In some low volume sales environment, the sales performance can cause the loss of a job and possible retraining. In Red Pepper, the sales person with a poor

performance can be sent to the corporate or training office for additional salesand customer care training. In other cases the employee may see a reduction inhours, reassignment or termination.

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Misconceptions5. Some people believe that a sales performance is designed to help an employeefail or overwork them. The sales performance in many cases gives a poor sales person or company the opportunity to improve especially on its customer care. It can also give a good sales person or company an opportunity to perform even bette

r. Red Pepper avoids such misconceptions through the regular performance review,which also varies by company and has a lot of paperwork attached to it.

2.3.1 Evaluation of Sales performance in regard to Customer care

The simplest way to evaluate the levels of performance in regards to customers care is observing and recording both the number of customers and revenue figuresboth before and after putting customer care into practice. At Red Pepper, management concurs that the sales levels greatly improved ever since they began caring for their customers properly and the company has not only attracted more readers, advertisers and revenue, but established for itself an enviable reputable im

age in the Ugandan media industry as a whole. For instance, much as most of thenewspapers in the industry sell at

UgShs.1200/= and below a copy, Red Pepper has since set a tremendous competitiveprice of Ug.Shs.1500/= per copy, hence making it arguably the leading, most read newspaper in the whole country.

2.3.2 Strategies to improve Sales performance through customer care

There are several ways through which an organization can improve its sales through establishing and implementing the customer care policy. These include among others;

1. Effective communicationIts always vital for a company to establish working mechanisms that will help improve its sales performance through setting up communication channels that customers use to submit their complaints, suggestions, advice, compliments etc. At RedPepper, there are established communication mediums like telephones, email andfacebook addresses, faxes etc, through which customers submit their complaints.These communication channels are able to provide feedback to the customers

and constantly interact with them, to learn about their tastes and preferences.

2. Create a customer focus group.Invite ten to twenty of your most loyal customers to meet regularly. They will give you ideas and input on how to improve your customer service. You could pay them, take them out to dinner or give them free products. At Red Pepper, such customers are given gifts like free copies, invited to drink ups and friendly football matches, done through the Red Pepper fans club. This is done by the customercare management team enshrined in the marketing and sales promotions department,through the company brand manager.

3. Make it easy for your customers to navigate on your web site.Have a Frequently Asked questions (FAQ) page on your Web site to explain anything

that might confuse your customers. Ask them to fill out an electronic survey tofind out how to make your web site or information channel more customer friendly. WWW.redpepper.com is Red Peppers user friendly website, where customer can find

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all information about the company and its products, plus posting their complaints.

4. Resolve your customers complaints quickly and successfully.Answer all e-mail and phone calls within an hour. If possible, you the owner ofthe business, personally take care of the problem. This will show your customer

s you really care about them. Customers at Red Pepper always have their complaints resolved through the established feedback channels.

5. Make it easy for your customers to contact you. Offer as many contact methodsas possible. Allow customers to contact you by e-mail. Hyperlink your e-mail address so customers won't have to type it. Red Pepper offers toll free numbers for telephone and fax contacts.

6. Make sure employees know and use your customer service policy.Give your employees bonuses or incentives to practice excellent customer service. Tell employees to be flexible with each individual customer, each one has different concerns, needs and wants.

7. Give your customers more than they expect.Send thank you gifts to lifetime customers. E-mail them online greeting cards onholidays or birthdays. Award bonuses to customers who make big purchases.

8. Always be polite to your customers.Use the words Youre welcome, Please, and Thank you. Be polite to your customers evethey are being irate with you. Always apologize to your customers should you make a mistake. Admit your mistakes quickly and make it up to them in a big way.

9. Reward customers a point for every one shilling they spend.Let's say customers can get a free copy for 300 points. That means customers will spend more shillings on your products and services to get enough points to getthe free copy. Customers at red Pepper are rewarded with calendars, pens, T-shirts, etc and by improving the content of the papers so as to give them value formoney.

10. Build strong relationships with your customers.Invite them to company meetings, luncheons, workshops or seminars. Create special events for your customers like parties, barbecue's, dances etc. This will make

them feel important when you include them in regular business operations and special events. (Brown, 2002)

Conclusion

Dissatisfied customers will stop consuming a companys products and even discourage other potential consumers form buying the product. This will in turn affect the sales performance of the company, something thatll frustrate achieving its goals and objectives in the long run, hence leading to lots of losses and subsequentwinding up due to bankruptcy. Theres need for all companies therefore to strictly put the function of customer care into consideration and implementation, to avoid suffering the disadvantages of a dissatisfied customer and to boost their customer base, if theyre to achieve the set goals and objectives at the end of giv

en business period.