The Best Customer Service - Term Paper Example

Strategies for enhancing customer service Introduction: In a highly competitive marketing environment, the buzzwords that companies aspire and work for are customer service and customer loyalty. In, fact companies strive to provide customer service in order that they may obtain loyalty from their customers. It is a fact that retaining customers is more difficult than attracting new ones. So the primary approach taken by marketing organizations or departments is to provide the best customer service possible. Such a situation has resulted in a larger number of strategies and techniques in enhancing customer service so that organizations may have loyal customers who make repeated purchases from them. But customer service is much more than an effort at keeping customers happy and loyal. An organization that loses a customer to competitors will naturally see a fall in revenues. Moreover, they may face a damaged reputation due to the unhappy customer telling others about poor service or a badly made product he happened to spend money on. “Customer service is more than keeping customers happy. It’s about revenue, because a lost customer means lost revenue and an unhappy customer can damage your reputation.” (Customer service). Taking into consideration the importance of this topic, this paper is an attempt at listing ways in which any organization can increase their revenue through time tested and innovate customer service. Customer service: The Merriam-Webster online dictionary defines the customer as “one that purchases a commodity or service.” This indicates that the customer has exchanged some value in order to obtain that product or service. The product may be a durable one or a consumable one. The amount spent on a product or service also varies depending on the use and quality of the same. Again some products or services may need after sales service. Wherever be the case, all organizations have a moral responsibility to see that the customer gets value for money. In this context it would be prudent to define the concept of customer service also. It can be seen that there are many definitions attributed to this concept and they all are related to the idea of satisfying the needs of the customer. A suitable definition is given here for reference. “Customer service means providing service features, acts and information so the customer can experience the full value of the service or product provided.” (Taylor, 2003, P. 256). Enhancing customer service: It may not be possible to list comprehensively all the strategies and methods that are employed by organizations to enhance customer service. This is due to the fact there innumerable categories of products and services and each category might require a different strategy for enhancing customer service. Hence, what is attempted here is to list the important and effective ones that can be applied across all product categories and services. a. Fantastic service equation: In his book ‘Customer Services Training’ author Maxine Kamin gives a graphical representation of customer service and calls it the ‘fantastic service equation.’ “The equation provides a framework for giving exceptional service to both internal customers and external customers every time and it provides a simple way to remember the essentials of good service.” (Kamin, 2003, P.13). The Fantastic Service Equation: The figure is quite self explanatory and does have many of the common perceptions of strategies that are used to enhance customer service. Greeting the customer with courtesy and warmth is necessary. The next step is to enquire what the customer needs and take steps to fulfill those needs. Do something that will make the moment memorable for the customer. Discretely check the effect all this has on the customer and always ensure that the customer is happy enough to come back. Steps taken in this sequence will definitely go a long way in enhancing customer service. b. Go beyond expectations: One thing that will delight customers is to perform or act in a positive way they would never expect. This is especially true if the customer has a problem to be fixed. Joel Spolsky, the co-owner of a software company in the United States recommends this strategy in an article titled ‘Seven steps to remarkable customer service.’ “When customers have a problem and you fix it, they’re actually going to be even more satisfied than if they never had a problem in the first place.” (Spolsky, 2007). This strategy is generally termed as customer delight. Spolsky tells of an experience that will make the matter clear. His company had ordered a set of shirts with the company logo to be given as souvenirs at a trade show. The problem was that the thread used for the logo and the shirt had nearly the same color and the logo could not be seen clearly. Time was also a problem since the trade show was only two days away. When he informed the manufacturer of the problem, they agreed to take back the entire batch and send a new one the next day itself. But what delighted the author was that the manufacturer told him that he could send the defective batch back to the company at any convenient date. They also paid for the transportation charges for both the defective and replacement batch. This is an instance of doing something that the customer did not expect especially when he was facing a small crisis. He also suggests that in case a problem arises it is better to take the blame and fix it instead of giving excuses or trying to act defensively c. Answering the phone: Phones at the customer service department should be answered as soon as possible without making the customer wait for more than a few rings. Another important strategy is to have human interaction instead of an automated answering machine directing customers to follow a series of steps before reaching a customer service representative. d. Keeping Promises: If any promise regarding customer service has been made to the customer, it should be kept. There is nothing more irritating than finding no one attending to a complaint after assurance from the company that the problem will be looked into the next day itself. e. Listening: Listening is an important characteristic that should be taught to employees. Listening is a sign of caring which will make the customer feel wanted. Also, it is important to let the customer finish what he is saying before interrupting unless it is to clarify a point made by the customer. f. Extras: It will always please a customer to find something free and extra in their purchase of a product or service. For example an unexpected discount or a free gift will have a positive effect on customer perception. This will be appreciated even more if the season is something where gifts are expected (Christmas, Easter, New Year etc). Note: Point numbers c to f have been sourced from the article by Susan Ward titled ‘8 rules of good customer service.’ The points that are different from the first two ones are selected and given here. “If you truly want to have good customer service, all you have to do is ensure that your business consistently does these things.” (Ward, 2008). g. Meeting deadlines: In many types of businesses the product or service will have to be ordered and delivered at a future predetermined date. A courier that is sent from one area to another will be usually delivered the next day and this is what the customer who sent the box and the recipient will expect. In this instance delays will not only annoy the customer but the recipient as well. h. Extend business hours: Some businesses like service stations and workshops usually close by night. These are areas where customers may need service at odd hours. A vehicle may develop problems at night when a customer is traveling. Providing service at such a time will definitely go a long way in enhancing customer service. i. Some businesses require personal contact with clients. In such cases it would be a good practice to keep in touch with them even if the customer might not need help at that point of time. Calling them over for a lunch or breakfast session would be greatly appreciated by the customers. j. Convenience: Customers prefer convenience especially when buying day to day products. For example, a fast food joint is preferred in case the customer is short of time. So customers will prefer to spend their lunch break in a fast food outlet than at a regular restaurant. k. Referring: It is always good for business when customers spread work of mouth advertising and refer others to the business. But, another strategy that will give no tangible benefits is to refer customers to each other. Suppose a person is running a convenience store, he could refer his customers to a lawyer (who shops regularly at the store) in case that person has any legal problems. The lawyer will certainly appreciate the gesture on the part of the store owner. l. Children are important: Customers always appreciate it if a business does something special for their children. Providing a kid’s section in a shopping mall where there is some one to supervise along with lots of activities and games will be a good strategy to enhance customer service. Note: Point numbers g to l are based on an article titled ‘Service marketing ideas.’ (Service marketing ideas, 2000). m. Staff training: This is a very important strategy in an organization’s effort to enhance customer service. Any strategy adopted by the company will have no effect unless the employees are trained to implement them. “Training will provide time for staff to review basic concepts of customer service, including a definition of customer service, a discussion of their clients’ rights to receive services, staff accountability, and benefits that can result from implementing customer service.” (Focusing on customer service, 2006). The purpose of the training is fourfold. First and foremost is to see that the staff incorporates the training outcomes into their day to day activities. Secondly, all employees should develop good communication and listening skills. Thirdly the employees should be able to handle irate clients. Finally the employees should develop the skill to handle any difficult situation that might arise between the organization and the client. There are four ways by which training can be given apart from giving theoretical lessons. Brainstorming sessions where the staff is encouraged to give their ideas and perceptions would be a good way to teach each other the value of customer service. Enacting role plays with the staff themselves acting as customers would make them understand customer behavior better. Every person who is an employee would be a customer of some other organization and they need no practice to act like one. Case studies could be taught to the staff either from real life or imaginary situations. This will give them a picture about the various scenarios that have happened in other organizations also. Practice sessions where by the staff are given certain situations can also help in training. One staff member could act the part of an angry customer while another could try and pacify him. Conclusion: A fairly comprehensive list of common strategies for enhancing customer service has been given here. As mentioned earlier the list is not exhaustive since certain strategies will be applicable only for certain types of businesses but implementing the above strategies coupled with adequate training to the staff will go a long way in winning customers though service. Two final points that would be useful in this context are given here. For the past ten years or so, perceptions by customers about customer loyalty have undergone a lot of change. Those organizations who are not aware of it should take note of the same. The concept of brand loyalty (and customer loyalty) is now replaced by a shared brand loyalty. With the availability of so many international and local brands customers now prefer to switch brands occasionally. This practice is referred to as ‘choice repertoire.’ “Interestingly, consumer behavior theorists have coined new terms to describe this new situation. 'Choice repertoire' identifies the fact that a consumer can no longer be identified by a brand, but rather by a set of brands he or she will choose, with a specific probability, within the same product category. (Kapferer, 2005). Another factor to be noted is that even if a customer repeatedly does business with the same client it need not be necessarily out of customer loyalty. It could be because he or she is unable to find another better or exciting product. This should not mistaken as loyalty because it might dilute the company’s’ efforts at providing good customer service. Taking these factors into consideration, organizations should give due importance and focus on developing good customer relations by practicing effective strategies to enhance customer service. Reference Customer service: What superior customer service means, Business advisory services: Department of state and regional development: New South Wales. Retrieved July 22, 2008, from http://www.smallbiz.nsw.gov.au/NR/rdonlyres/92E17D53-197A-4BBD-8B16-885B46294FFA/0/CustomerService.pdf Focusing on customer service: Training staff in customer service. (2006). MSH: Managing Quality Services. Retrieved July 22, 2008, from http://erc.msh.org/mainpage.cfm?file=2.1.1j.htm&module=quality&language=English Service marketing ideas. (2000). IDEA Site: IDEA Site for Business, gillINC. Retrieved July 22, 2008, from http://www.ideasiteforbusiness.com/service.htm Kamin, Maxine. (2002). Customer service training: The fantastic service equation, ASTD: American Society for Training and Development, P. 13. Retrieved July 22, 2008, from http://books.google.co.in/books?hl=en&id=ygiR7HLzRNsC&dq=customer+service&printsec=frontcover&source=web&ots=QvZh2cwXW_&sig=ALQvmh9IfOLDAVAfpNUKZmCDpaM&sa=X&oi=book_result&resnum=7&ct=result#PPA13,M1 Kapferer, Jean-Noël. (2005). The roots of brand loyalty decline: An international comparison, Ivey business journal – Improving the practice of management. Retrieved July 22, 2008, from http://www.ibj.ca/view_article.asp?intArticle_ID=545 Spolsky, Joel. (2007). Seven steps to remarkable customer service: Make customers into fans, Joel on software. Retrieved July 22, 2008, from http://www.joelonsoftware.com/articles/customerservice.html Taylor, James. (2003). Managing information technology projects: Defining customer service, AMACOM Div American mgmt assn, P. 256. Retrieved July 22, 2008, from http://books.google.co.in/books?id=cznsxQuBQdkC&pg=PA256&dq=%22definition+of+customer+service%22&ei=n5GFSOLgNqiEtAOjlNymCA&sig=ACfU3U1S7qlVzaLbg-Q9-wx6upI8bEfJDg#PPA256,M1 Ward, Susan. (2008). 8 rules of good customer service, About.com: Small business: Canada. Retrieved July 22, 2008, from http://sbinfocanada.about.com/od/customerservice/a/custservrules.htm Read More