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Chapter 1: Customer Service

Chapter 1: Customer Service. Chapter 1: Customer Service. 1.Defining Customer Service Concept: Customer-focused organizations determine and meet the needs of their internal and external customer. Their focus is to treat everyone with respect and as if they were special.

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Chapter 1: Customer Service

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  1. Chapter 1: Customer Service SSRUIC: HHM1203 Service Psychology 3-2017

  2. Chapter 1: Customer Service • 1.Defining Customer Service Concept: Customer-focused organizations determine and meet the needs of their internal and external customer. Their focus is to treat everyone with respect and as if they were special. SSRUIC: HHM1203 Service Psychology 3-2017

  3. Chapter 1: Customer Service Customer service is defined as the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in manner that satisfies identified and unidentified needs and ultimately results in positive word-of-month publicity and return to business. SSRUIC: HHM1203 Service Psychology 3-2017

  4. Chapter 1: Customer Service • Customer-Focused Organizations Some common characteristics for customer-focused organizations are described below. They have internal customers (for example, peers, coworker, bosses, subordinates, people from other areas of their organization) and or external customers (for example, vendors SSRUIC: HHM1203 Service Psychology 3-2017

  5. Chapter 1: Customer Service Suppliers, various telephone callers, walk-in customers, other organization, other not from within the organization). SSRUIC: HHM1203 Service Psychology 3-2017

  6. Chapter 1: Customer Service Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special. Information, products, and services are easily accessible by customer. Policies are in place to allow employees to make decisions in order to better serve customers. SSRUIC: HHM1203 Service Psychology 3-2017

  7. Chapter 1: Customer Service • Management and systems support and appropriately reward employee efforts to serve customers. • Reevaluation of the way business is conducted is ongoing and results in necessary changes and upgrades to deliver timely, quality service to the customer. • Build relationships through customer relationship management (CRM) program. SSRUIC: HHM1203 Service Psychology 3-2017

  8. Chapter 1: Customer Service • 2. Growth of the Service Sector Concept: Technology has affected jobs in the following ways: quantity of jobs created, distribution of jobs, and the quality of jobs. The service sector is projected to have the largest job growth. SSRUIC: HHM1203 Service Psychology 3-2017

  9. Chapter 1: Customer Service • Technology replaces many production line workers, increasing numbers of service jobs are created. This comes about because, as greater numbers and greater varieties of goods are produced, more service people, salespeople, managers, and other professionals are needed to design and market service delivery systems that support those products. SSRUIC: HHM1203 Service Psychology 3-2017

  10. Chapter 1: Customer Service • 3. Addressing the Changes Concept: All customer-based organization must provide excellence in service and an environment in which customer needs are identified and satisfied. SSRUIC: HHM1203 Service Psychology 3-2017

  11. Chapter 1: Customer Service Developing strategies for providing premium service that will capture and hold loyal customers has become a priority for most organizations. All-customer-based organizations have one focus in common-they must provide service excellence and an environment in which customer needs are identified and satisfied-or perish. SSRUIC: HHM1203 Service Psychology 3-2017

  12. Chapter 1: Customer Service • To this end, organizations must become learning organizations a term made popular by the author Peter Senge in his book The Fifth Discipline. • Basically, a learning organization is one that uses knowledge as a basis for competitive advantage. SSRUIC: HHM1203 Service Psychology 3-2017

  13. Chapter 1: Customer Service • This means providing ongoing training and development opportunities to employees so that they can gain and maintain cutting-edge skills and knowledge while projecting a positive can do- customer-focused attitude. • A learning organization also ensures that there are systems that can adequately compensate and reward employees based on their performance. SSRUIC: HHM1203 Service Psychology 3-2017

  14. Chapter 1: Customer Service • In the past, organizations took a reactive approach to service by waiting for customers to ask for something or by trying to recover after a service breakdown. Often, a small customers service staff dealt with customer dissatisfaction or attempted to fix problems after they occurred. SSRUIC: HHM1203 Service Psychology 3-2017

  15. Chapter 1: Customer Service • In today’s economy, a proactive approach of anticipating customer needs in necessary and becoming common. • To excel, organizations must train all employees to spot problems and deal with them before the customer becomes aware that they exist. SSRUIC: HHM1203 Service Psychology 3-2017

  16. Chapter 1: Customer Service • 4. Societal Factors Affecting Customer Service Concept: Many factors caused the economic shift from manufacturing to service. Increased technology, globalization of the economy, deregulation, and many government programs are few factors. SSRUIC: HHM1203 Service Psychology 3-2017

  17. Chapter 1: Customer Service • 4.1 Shifts in the Population Profile • 4.2 Increased Efficiency in Technology The development and increased sophistication of machines and computers has caused an increase in production and quality. Two side effects have been an increased need for service organizations to take care of the technology and a decrease in manufacturing and blue-collar jobs. SSRUIC: HHM1203 Service Psychology 3-2017

  18. Chapter 1: Customer Service • 4.3 Globalization of the Economy This trend has been termed globalization with many companies focusing on business-to-business (B2B) initiatives, as well as, individual consumers. Sometimes the deciding factor for the customers, on whether to purchase a foreign or domestic product, will be the service uou provide. SSRUIC: HHM1203 Service Psychology 3-2017

  19. Chapter 1: Customer Service • 4.4 Deregulation of Many Industries Deregulation has also brought major industry shakeup, sometimes leading to breakdowns in service quality in many companies. These events have created opportunities for newly established companies to step in with improvements to close the gaps and better serve customers. SSRUIC: HHM1203 Service Psychology 3-2017

  20. Chapter 1: Customer Service • 4.5 Geopolitical Changes Geopolitical events such as these will lead to more multinational mergers and need for better understanding of transportation and communication, companies cannot afford to ignore international competitors. SSRUIC: HHM1203 Service Psychology 3-2017

  21. Chapter 1: Customer Service • 4.6 Increase in the Number of White-Collar Workers With the movement out of factories and mines, and off the farm, more people find themselves working at a traditional nine-to-five office job or providing service on a variety of works shifts (telephone and technical support centers). This trend has led to the creation of new SSRUIC: HHM1203 Service Psychology 3-2017

  22. Chapter 1: Customer Service types of service occupations: Office workers need to have someone clean their cloths, spruce up their homes(inside and out), care fore their children, do their shopping, fun their errands, and feed their families. In effect, the service phenomenon has spawned its own service trend. SSRUIC: HHM1203 Service Psychology 3-2017

  23. Chapter 1: Customer Service • 4.7 A More Diverse Population Is Entering the Workforce As with the entrance of women into the workforce, the increase in numbers of people of color entering the workforce will have a profound impact on the business environment. Not only are the numbers of this expanded worker category bringing with them new ideas, values, expectations, needs and levels of knowledge, SSRUIC: HHM1203 Service Psychology 3-2017

  24. Chapter 1: Customer Service experience, and ability, but as consumers themselves, they bring a better understanding of the needs of the various groups that they represent. SSRUIC: HHM1203 Service Psychology 3-2017

  25. Chapter 1: Customer Service • 4.8 Desire for Better Use of Leisure Time People want to use their free time in more personally satisfying ways. To accomplish this, they now rely more heavily on service organizations to maintain their desired lifestyle. Examples of some of the services tapped by the members of today’s society are personal grocery shopping services, lawn service, dog walkers, laundry pickup and delivery. SSRUIC: HHM1203 Service Psychology 3-2017

  26. Chapter 1: Customer Service • 4.9 Expectation of Quality Service Most customers expect that if they pay a fair dollar, in turn they will receive a quality product or service. If their expectations are not met, customers simply call or visit a competing company where they can receive what they think they paid for. SSRUIC: HHM1203 Service Psychology 3-2017

  27. Chapter 1: Customer Service The expectation of quality service that most consumers have also creates a need for better-trained and better-educated customer service professionals. Not only do these professionals need up-to-date product information, but they also need to be abreast of current organizational policies and procedures, what the competition offers, and the latest techniques in customer service and satisfaction. SSRUIC: HHM1203 Service Psychology 3-2017

  28. Chapter 1: Customer Service • 4.10 Better-Educated Customers Customers today are not only more highly educated than in the past, they are also well informed about the price, quality, and value of products and service. This has occurred in past through the advertising and publicity by companies competing for market share and by the activities of consumer information and advocacy groups that have surfaced. SSRUIC: HHM1203 Service Psychology 3-2017

  29. Chapter 1: Customer Service With consumers now on the defensive and ready to fight back, all business owners find that they have to continually prove the worth of their products and services. They must provide customers satisfaction or face losing customers to competitors. SSRUIC: HHM1203 Service Psychology 3-2017

  30. Chapter 1: Customer Service • 4.11 Growth of E-Commerce The last decade of the twentieth century was witness to unimagined use of the personal computer and the Internet by the average person. Consumers regularly “surf the net” for values in products and services without ever leaving their homes or offices. This new way of accessing goods and services through technology has been termed e-commerce. SSRUIC: HHM1203 Service Psychology 3-2017

  31. Chapter 1: Customer Service The creators and owners of the most innovative sites and products can provide products and service worldwide without ever physically coming into contact with a customer, and yet can amass huge reserves of money. Examples of these success stories are eBay and Amazon.com, which have become household names and are used by millions of shoppers yearly. SSRUIC: HHM1203 Service Psychology 3-2017

  32. Chapter 1: Customer Service • 5. The Customer Service Environment Concept: In this section the six components that make up a service environment and contribute to customer service delivery are discussed. Use these factors to ensure that a viable customer service environment is the responsibility of every employee of the organization-not just the customer service representative. SSRUIC: HHM1203 Service Psychology 3-2017

  33. Chapter 1: Customer Service • Let’s take time to examine the six components of a customer service environment, which will illustrate many factors that contribute to customer service delivery: • The customer • Organizational culture • Human resources • Products/deliverables SSRUIC: HHM1203 Service Psychology 3-2017

  34. Chapter 1: Customer Service • 5. Delivery systems • 6. Services SSRUIC: HHM1203 Service Psychology 3-2017

  35. Chapter 1: Customer Service • 5.1 The Customer All aspects of the service organization revolve around the customer. Without the customer, there is no reason for any organization to exist. And, since all employees have customers, either internal or external, there must be a continuing consciousness of the need to provide exceptional, enthusiastic customer service SSRUIC: HHM1203 Service Psychology 3-2017

  36. Chapter 1: Customer Service • 5.1.1 Internal Customers They may not be traditional customers who come to buy or use products or services. Instead, they are internal customers who are coworkers, employees of other departments or branches, and other people who work within the same organization. They also rely on others in their organization to provide services, information, and/or product that enable them to do their job. SSRUIC: HHM1203 Service Psychology 3-2017

  37. Chapter 1: Customer Service • 5.1.2 External Customers External customers may be current or potential customers or clients. They are the ones who actively seek out, research, and buy, rent, or lease products or services offered by your organization. This group can involve business customers who purchase your product to include with its own for resale. SSRUIC: HHM1203 Service Psychology 3-2017

  38. Chapter 1: Customer Service It can also involve an organization that acts as a franchise or distributor0 Such an organization buys your products to resell or uses them to represent your company in their geographic area. SSRUIC: HHM1203 Service Psychology 3-2017

  39. Chapter 1: Customer Service • 5.2 Organization Culture Without the mechanism and atmosphere to support frontlines service, the other components of the business environment cannot succeed. Put simply, organizational culture is what the customer experiences. This culture is made up of a collection of subcomponents, each of which contributes to the overall service environment. SSRUIC: HHM1203 Service Psychology 3-2017

  40. Chapter 1: Customer Service • 5.3 Human Resources To make the culture work. An organization must take great care in recruiting, selecting, and training qualified people-its human resources. That’s why, when you apply (or applied) for a job as a customer service professional, a thorough screening process will be (or was) used to identify your skills, knowledge, and aptitudes. SSRUIC: HHM1203 Service Psychology 3-2017

  41. Chapter 1: Customer Service Depending on their organization’s focus, these individuals have a variety of titles (for example, a customer service representatives in a retail organization might be called a member counselor in an association, but these employees often perform similar functions). Some typical titles and functions performed by customer service personnel in organizations are described in the next sections. SSRUIC: HHM1203 Service Psychology 3-2017

  42. Chapter 1: Customer Service • 5.3.1 Customer Service (CS)/Member Support Clerk This is typically an entry-level position requiring strong organizational ability, an ability to follow instructions, listen, and manage time, and a desire to help. Key functions are clerical support, which includes filing, researching information, typing, and similar assignments. SSRUIC: HHM1203 Service Psychology 3-2017

  43. Chapter 1: Customer Service • 5.3.2 Customer Service (CS) Representative/Member Counselor This position is an entry-level position into the customer service field(although many people have years of experience in the job). Since these employees interact directly with customers and potential customers and potential customers, they need strong interpersonal (communication, conflict management, listening) skills as well as SSRUIC: HHM1203 Service Psychology 3-2017

  44. Chapter 1: Customer Service a desire to help others, a fondness for working with people, a knowledge of organization products and services, and thorough understanding of what a CS representative does. SSRUIC: HHM1203 Service Psychology 3-2017

  45. Chapter 1: Customer Service • 5.3.3 Senior Customer Service (CS) Representative/Member Counselor This position is usually staffed by personnel with experience as CS representative. A position like this one requires a person with a sound understanding of basic supervisory skills, since job duties may include providing feedback, training, and support and administering performance appraisals to other representatives or counselors. SSRUIC: HHM1203 Service Psychology 3-2017

  46. Chapter 1: Customer Service • 5.4 Products/Deliverables The forth component of a service environment is the product or deliverable offered by an organization. The product or deliverable may be a tangible item manufactured or distributed by the company, such as a piece of furniture, or a service available to the customer , such as a pest extermination service. SSRUIC: HHM1203 Service Psychology 3-2017

  47. Chapter 1: Customer Service In either case, there are two potential areas of customer satisfaction or dissatisfaction-quality and quantity. If your customers receive what they perceive as a quality product and quantity. If your customer receive what they perceive as a quality product or service to the level that they expected, and in the time frame promised or viewed as acceptable, they will likely be happy. SSRUIC: HHM1203 Service Psychology 3-2017

  48. Chapter 1: Customer Service On the other hand, if customers believe that they were sold an inferior product or given an inferior service or one that does not match their expectations, they will likely be dissatisfied and could take their business elsewhere. They may also provide negative word-of-mouth advertising for the organization. SSRUIC: HHM1203 Service Psychology 3-2017

  49. Chapter 1: Customer Service • 5.5 Delivery Systems The fifth component of an effective service environment is the method(s) by which the product or service is delivered. In deciding on delivery systems, organizations examine the following factors. SSRUIC: HHM1203 Service Psychology 3-2017

  50. Chapter 1: Customer Service • Industry standards: How is the competition currently delivering? Are current organization delivery standards in line with those of competitors? • Customer expectations: Do customers expect delivery to occur in a certain manner within a specified time frame? Are alternatives acceptable? SSRUIC: HHM1203 Service Psychology 3-2017

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