CUSTOMER SERVICE

CUSTOMER SERVICE 5.2 5.2 Customer Service

starter Consider the following : 1.When have you experienced good customer service? 2. When have you experienced bad customer service? 3. Why is customer service important? 5.2 Customer Service

Importance of Customer Service • What is Customer Service? • Customer service is the meeting of customer expectations before, during and after purchasing a good or service • Why is Customer Service Important? • 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 5.2 Customer Service

Importance of Customer Service 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. 5.2 Customer Service

Importance of Customer Service 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? 5.2 Customer Service

Importance of Customer Service 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? 5.2 Customer Service

Importance of Customer Service 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) 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 time What is meant by the term ‘customer service’? (2 marks) Explain 1 reason why product information will be important for Tracey’s customers. (3 marks) Explain 1 way Tracey could offer a good after sales service. (3 marks) Explain 2 benefits to Tracey of offering excellent customer service. (4 marks) 5.2 Customer Service

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 5.2 Customer Service

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 5.2 Customer Service

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? 5.2 Customer Service

Impact of ICT on Customer Service • 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. 5.2 Customer Service

Impact of ICT on Customer Service 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 5.2 Customer Service

Impact of ICT on Customer Service 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 5.2 Customer Service

Impact of ICT on Customer Service 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 5.2 Customer Service

CUSTOMER SERVICE