Customer Service

So What?

• Businesses spend $ to create an image that they care about their customers

• Customers respond by buying at places where they can get the service they want

• Loyal customers aren’t easy to get, it takes time

What is Customer Service?

• It’s all about CUSTOMERS

1. Customer service creates goodwill and customer satisfaction

2. Customers shop at businesses that go above and beyond customer expectations to deliver service

Using Technology to Support Customer Service

• 1980’s – Banks started using ATM’s

• 1990’s – Banks started automatic bill pay

• Today – 24/7 online banking

• Don’t forget debit cards & swipe machines

Using Technology to Support Customer Service

• Technology can be used to obtain information about customers

• Large businesses use customer-relationship management software• Track who buys the most products = who

makes them the most $$• Who makes the most returns• Establish better relationships

Customer Service = Business Image

• Nordstrom – customer service leader, known for exceptional customer service

• McDonalds – Billions served, known for fast service

• Pro-Cuts – offer affordable service• Amazon.com – offer book recommendations,

known for personalized service• Ritz Carlton – hotel, known for extravagant

service

Customer Service = Business Image

• Bad publicity can be a businesses worst nightmare

• Ex. Southwest Airlines accused of discrimination

• It can cost a business money if they feel they receive inferior service

Small vs. Large Business

• When developing customer service strategies it must consider

1. A businesses image2. Physical size of the business3. The products it sells

• Ex: Can you offer massage services inside of a small hair salon? Or do you want to sell snacks in the aisle at a movie theater?

Management’s Role

• Sometimes managers focus on “external” customer service and don’t focus on their employee’s needs

• When managers treat their employees with disrespect, they often turn around and do the same to customers

• It is critical for them to plan for situations that might put a strain on customer service

Service Oriented Businesses

• These businesses share common traits• They are customer focused• Take advantage of technology• Are forward thinkers

• Lack of customer service can cost a business $ because customers feel they receive inferior service

• Businesses compete with each other to attract and keep customers

Affording Customer Service

• People who are conscious about money prefer to receive less service in return for lower price

• What’s included in the price of your product?• Customer service• Employee wages• Cost for ingredients or products• Overhead

• Not all business pass on the cost of customer service.• If they absorb the costs they must find ways to keep

customer service costs under control

Affording Customer Service

• A cost consideration in providing customer service is staying within the businesses budget

To Whom This may Concern:This letter is to complain about service I recently received from

an AT&T customer service representative named Bob.I called AT&T on August 25th to find out how to deal with a

problem I’ve had with my phone service. After I had been on hold for several minutes, Bob came on the line. I had to explain my problem to him several times because he did not seem to be listening and therefore asked me the same questions repeatedly. Bob put me on hold for several minutes, and then returned to say he could not help me. Needless to say, I was quite frustrated.

I expected a much higher level of service from your company, and I am quite disappointed. Because I do not want to spend any more time on this problem, I am cancelling my service immediately, and I expect a full refund. I will be informing my friends and family about this experience.

Sincerely,

Questions to Answer

1. Is the letter a complaint, a compliment, question, or suggestion?

2. How is the letter likely to affect the business’s image?

3. How is the customer’s feedback helpful to you as a manager?

4. What, if anything, does the author of the letter seem to want or need from the business?

5. What will you tell your employees about the letter?

6. What will you say/do in response to the customer’s letter?

Discussion Questions

1. Explain what customer service is.2. Can lack of customer service cost a

business money?3. What 3 things should businesses consider

when developing customer service strategies?

4. Why do businesses compete with each other in the area of customer service?

5. How would a drive through window help a coffee shop keep customer service costs down?