Chapter 1 The Customer Service Profession

1. Chapter 1 The Customer Service Profession

2. Learning Objectives • Define customer service • Describe factors that have impacted the growth of the service sector in the United States • Identify societal factors that have influenced customer service • Recognize the changes in consumer behavior that are impacting service

3. Learning Objectives • List the six major components of a customer-focused environment • Explain how some companies are addressing the changes impacting the service sector

4. Customer Service • Employee’s ability to deliver products and services to internal and external customers • Satisfying their needs and resulting in positive word-of-mouth publicity and return business • Service industry: Businesses and organizations engaged primarily in service delivery

5. Figure 1.1 - Customer-FocusedOrganizations

6. Growth of Customer Service • Post-World War II • Increase in the number of people in service occupations in the U.S. • Shift to service • Economy shifted focus from manufacturing to providing timely quality service

7. Figure 1.2 - From Pre-World War IIOccupations to Service Occupations

8. Figure 1.3 - Numeric Change in Wage and Salary Employment in Service-Providing Industries, 2010–2020 (projected) Source: Bureau of Labor Statistics National Employment Matrix

9. Figure 1.4 - Percent of Labor Force by Race and Ethnic Origin Note: The four race groups add to the total labor force; the two ethnic origin groups also add to the total labor force; Hispanics may be of any race Source: Bureau of Labor Statistics Division of Industry Employment Projections

10. Impact of the Economy on the Quantity of Jobs being Created • Prevailing interest rates and consumer demand cause companies to evaluate: • How many people they need • Which jobs should be maintained • Technology • Increased the need for new technical skills • Automation of tasks that were previously performed by employees

11. Impact of the Economy on the Distribution of jobs • More jobs are likely to develop in major metropolitan areas • Need for telecommuting

12. Impact of the Economy on the Quality of Service Jobs • Competition for prime service jobs will become much more intense in the future • Successful employees will be: • Better educated, trained, and prepared • Those who have tapped into the concept of professional networking

13. Global Economic Shifts • Sales in brick-and-mortar stores are down, owing to the growth of online retailing • Post-recession, organizations have: • Cut back on the size of their workforce • Sold off, merged, or closed operations • Taken dramatic steps to attract and retain customers

14. Shifts in the Population and Labor Force • The present labor force is: • Older, more diverse, and has more women • Expected to grow at a slower rate than in previous decades

15. Increased Efficiency in Technology • Has resulted in: • Increased production and quality • Equipment working continuously • Enhanced ease of service delivery and faster processing

16. Globalization of the Economy

17. Deregulation • Governments remove legislative or regulatory guidelines that inhibit and control an industry • Deregulation of U.S. public services led to: • Breakdowns in service quality • Closure or restructuring of the company • Opportunities for new companies to step up and to better serve customers

18. Geopolitical Changes • Have reduced U.S. business access and competition within some areas of the world • North American Free Trade Agreement (NAFTA):Entered into by the United States, Canada, and Mexico • Greater need for better understanding of diversity-related issues • European Union • Economic market made up of 28 states

19. Changing Values • Companies are attempting to attract and hold customers by: • Making changes in their products • Changing their manner of service

20. White-collar Workers and Women in the Workforce • Increase in the number of white-collar workers has led to the creation of new types of service occupations • Women’s traditional roles in society have shifted to service providers

21. Diverse Population and More Older Workers Entering the Workforce • Racially and ethnically diverse population • Bring new ideas, needs, and levels of knowledge, experience, and ability • Bring a better understanding of the needs of the group that they represent • More older workers entering the workforce • Median age of people in the United States is rising • Return to work due to economic necessity and/or social reasons

22. Growth of E-commerce • Consumers can surf the net for products and services without leaving their homes or offices • Manufacturers can provide products and services worldwide without ever physically coming into contact with a customer

23. Consumer Behavior Shifts

24. Figure 1.8 - Components of a Customer-Focused Environment

25. Figure 1.10 - Competencies of Customer Service Professionals

26. Addressing the Changes • To sustain in the present highly volatile business environment, companies must: • Become learning organizations • Focus on service recovery