Aiming for Excellence
The Importance of Excellent Customer Service
Word Count: 3163 Author: Kimi Ural Created: 2014
Why is customer service important?
Customer service handles company issues in stores, over the phone and by email. Companies that produce highly technical products, such as software or smartphones, usually have a machine to answer phone calls where a tape is played and the customer can select a certain number depending on the issue to fix it. Customer service is very important to an organization for many reasons. Foremost, the company would not be able to survive without customer service, as there would be no one available to handle payments or answer questions from prospective customers and no customers would want to use their services.
Good and bad customer service matters because as a company your target is to archive satisfied customers that they will use your services again and may tell their friends about it, which means that the company will make more profit through regular customers and will have a good image that new customers rather pick them than an other company.
First impressions in customer service
It takes the customers 10 seconds to create their first impression therefore the first impression is very important. First impressions can be created by seeing like the following ones:
·A queue of customers – or being served immediately
·Staff talking to each other and ignoring their customers – or being greeted with a smile
·Scruffy staff who are chewing gum – or well-dressed staff with a professional appearance
·Staff slouching over desks – or positive behaviour and body language
·Eating in the office – or clear and tidy desks
Once a negative impression is created it is very challenging to change it because 1 bad impression needs usually at least 8 good impressions to make up for it.
The importance of Company image e.g. logo, premises, organisational efficiency
The images customers have of the company will influence the customers where they choose to buy their products and services. All organisations try to develop positive images to the customers. Companies do this through for example logos which is a simple symbol to represent the company. Logos will stay in a customers mind easier than a name of the company, so for example if a customer goes to McDonald`s and has a really good experience that the service is quick and cheap then they will remember the logo and visit the company again on their next road trip when they recognise a massive yellow M at the side of the road. The organisational efficiency is also very important because the company must be able to ensure calls are returned when promised, sending travel documents in good time and dealing with special requests.
Speed and accuracy of service
Every customer wants fast customer in every service no matter if it is the ordered food in a restaurant, support and help in a hotel or travelling with a airplane to the desired destination. “Time is money.” like Benjamin Franklin once said therefore it is very important to offer every customer quick service because no one wants to be kept waiting.
Customers expect that phone calls should be answered within three rings and e-mails to be responded to within 24 hours. To provide accurate and fast service the company will need the following skills:
·It must be organised. The employees do not have to know everything but they must know where to get the needed information from in case of an issue.
·Even though the employees do not have to know everything, they do need some knowledge to be able to answer basic questions.
·The product knowledge also includes information about the company such as what it sells, who to refer complains to, opening times and how to use computer and telephone systems effectively. All of these will help the company to provide fast and accurate service.
Consistency
Consistency means to provide a high quality service all the time to every customer. This is very important that every customer feels valued and important. If a customer finds out that another customer gets treated better, then he will feel that injustice has taken place and will get frustrated and therefore complain about the company. For example if a customer travels domestic in the UK and gets treated very good but an other customer who travelled inbound from another country and does not speak the language very well gets treated badly because the employees cannot be asked to deal with a foreign customer then the customer will get offended and definitely not use the company’s service again. This can also have exceptions for example when a customer booked first class this customer may get treated better through quicker service and more opportunities than a customer with a standard booking because they paid more for it. Organisations must be careful though that they do not tread the first class customers amazingly and ignore the standard customers because they are equally important.
Products and services offered
All Travel and Tourism organisations need to provide products and services that meet customers needs such as does the restaurant offer sufficient variety like Halal or vegetarian dishes? Are receptionists available at all time at reception personally and on phone? Are the evening entertainments suitable? For example when a clown as a entertainer for children is booked but no children are in the hotel at the moment then they would have to change it because it would be an unneeded service.
Meeting customer needs and exceeding expectations
The aim is not to meet customers` needs, but to exceed them. This would be by providing the right products and services and presenting them to the customers using excellent customer service skills. Customers buy products or services because they believe that they need them for example a pen if a customer needs a pen to write with it would be enough to have a simple grey pen which would satisfy the customers needs but may not meet their expectations. This means that a simple pen would do its job and the customer would be able to write with it but the customer might not be satisfied because they want the pen to look good as well so maybe the shape or the colour, this is the main issue why customers may buy a certain product and choose it over others.
Offering information and advice
Customers require in almost all encounters. This information should be informative that the customer gets enough information that their questions will be fully answered and may include some extra points like safety warnings or so. It should be understandable that the customer understands what the company means and does not have to ask them a million times because they did not understand it which would stress out the customer and the company. It also has to be accurate which I think is the most important one because if it is not accurate then what is the point?
Dealing with complaints; dealing with problems
The company must be able to deal with any complaints or problems the customers might have. It does not matter weather it is a large or a small company, every company will have to deal with complaints at some point. If the company cannot handle the problem or unaffectedly receives the complain without doing anything about it then the customer will not be satisfied and therefore may not use the provided service again. The top 10 tips to deal with complaints are:
· Quick thinking
· Observing and taking notes
· Making an apology
· Being composed
· Being positive
· Thinking of the business
· Communicating regularly
· Owning the problem
· Discovering the reasons
· Getting advise
Keeping existing customers satisfied
Keeping customers makes good business sense but it’s not always easy. The cost of keeping an existing customer is around 10% of the cost of acquiring a new one like studies across a number of industries have discovered. Therefore it is very important to keep existing and satisfied customers. Studies have also shown that long time customers are more likely to suggest the product or service to a friend or family than new customers. But how do you keep existing customers satisfied? There are a few things you could do, for example:
1. Offering special discounts like vouchers or coupons which could be a %10 reduce of the price when using the service for the second time and then %15 reduce for using the service over 5 times. This will make new customers come back and the existing customers stay satisfied that they stayed loyal to this company. Providing exclusive promotions and offers like buy one get one free offers will also work very well.
Increasing customers` loyalty ensuring repeat business
Customers who come back again and again are called loyal customers and their action of using the service over and over again is called `repeat business`. Loyal customers can be the reason for increased sales and profits. Loyal and satisfied customers will tell their friends and family about the excellent service that they will want to use the same organisation to buy their products. Statistics shown that 94% of customers who have a low-effort service experience will buy from that same company again which shows that keeping loyal customers is very important to make more profit. How do you increase customers` loyalty? The customers` loyalty can be increased for example through offers for long time customers like getting %10 off the next buy after purchasing 5 or so.
Enhancing an organisation`s image
A company’s image depends on experiences with purchased products and services other customers shared. If the customers are satisfied with the company then the company will have a good company image, and when customers are disappointed with the company then they will have a bad image. Therefore to enhance a good organisation image, the company will have to offer good products and customer service that the customers are satisfied and will tell the world about the amazing products they purchased and the excellent customer service they received. To enhance the organisations image the company should:
1. Think about what positive points they want to deliver to the world and then use the press to advertise their company.
2. Create relationships with influencers which can be famous bloggers, YouTuers or singers. People usually purchase a product if a famous person they know and like is using or suggesting it.
3.Get one to one with your target group. This is one of the best methods to boost up your organisation`s image. You can personally persuade your target and offer free trials of your product. Free offers are always welcome!
Providing an edge over competition
Providing an edge over competition is known as competitive advantage which is the condition that puts a company in a favorable or superior business position. To provide an edge over the competitor, the organisation will have to:
1. The company needs a target market and needs to do research to find out how and where to contact their target. Whether it is a school or a care home and if they contact them through the internet or a personal visit.
2. Learn from your competition and your customers. You do not just learn from your own mistakes but also from other companies` mistakes. Always watch other companies to follow their ways and see the reactions of their customers but also learn from your own customers, if your company gets a lot of complaints then you have are responsible to find out the reason for it and to fix it; if your customers give you good feedback then you know you are doing well but still try to find out what you can improve for example through questioners to get more feedback from your customers.
3. Always try to improve. Try to find better ways to do something steal ideas from other companies and develop them to get the best possible result.
Increasing sales and usage by attracting new customers
To increase sales, the company needs to attract new customers even if they already have a number of loyal customers. To attract new customers the company will have to do something because the customers will not just appear without putting any work into getting them. Therefore the company could:
1. Give something away. Every customer or stranger likes free stuff, whether it is some offered snacks or drinks even if it is just a balloon with for example the company’s logo on, the customer will like it and it is also a way to advertise for the company when the person walks around town with the balloon.
2. Meet people. Personal contact with the customers is really Important to deliver that the customer is important and that they feel worshiped. If a customer feels like they will get appreciated in this company then they are more likely to use their services or products.
3. Show what your company is all about and your strengths. If you show and persuade to the people that you are an expert in your area then they will feel safe to trust you and might join your company. You have to deliver to them that you are the best and your products and services are better than all the others.
Consequences of poor customer service for the customers, the staff and the organisation
If a company offers poor customer service then it will follow with consequences. Poor customer service can cause:
·Financial issues – through the leaving customers because no customer would want bad customer service.
·Staffing problems – because of the bad image the organisation will gain, the good qualified staff will leave because they know they can get offered a better job at a company with a better image and do not have to risk loosing their job if they would stay at the company with poor customer service.
·Bad Publicity – people talk and that means that if you offer a bad customer service that sooner or later everyone will know about it. This can cause staffing problems as I mentioned before.
·Legal problems – if a company’s service becomes that bad then legal issues can become a problem because every company does not just has to met their customers needs and exportations but also the laws.
Meeting individual customer needs and exceeding customers` exportations
It is important to meet individual customer needs as well as the regular customer needs that customers with special needs like wheelchair accesses do not feel left out or unappreciated. This can include Special dietary needs, mobility problems, a hearing impairment, a visual impairment, speech difficulties and a medical condition, for example a heart complaint which means that the customer needs a ground floor room in case of an emergency. Travel agents will have to offer different packages that the individual needs of every customers are met. For example an old couple would want to have a calm outbound holiday with good weather, a group of young teenagers would only want to travel domestic and go to parties because they do not have that much money, a family would may want to stay in an apartment and go to theme parks, and a business man would want to stay in a luxury hotel that he can completely relax. If a company will offer all these opportunities and the customers are satisfied and use the services again, then the customers exportations are exceeded.
Safe and secure environment for internal and external customers
Every company will need to have a safe and secure environment for customers but also for the employees. If the environment does not look safe then the customer would not want to use the services there. For example at chill factor, if there are broken bottles buried under the snow or blood stains on furniture than the customer will not feel safe and there fore not want to go there. The same as if the lifts are not safe and customers fall off them or get injured because of a mistake in the machine. Also the customer will tell the whole world about their bad experience and sooner or later the attraction will not have a single customer because safety is the most important point to succeed.
A happier working environment
Happy employees are productive employees therefore the company needs to make sure that they keep up a happy working environment through
- Appreciating your employees by recognizing their accomplishments
- Show employees you care by paying attention to their daily work and achievements.
- Praise them for their hard work and successes and say thank you as often as you can
- Know all your staff by name
- Get involved – ask them how their kids are doing and how their weekend was
- Make sure everyone is socialising for a good team band
- Motivate your employees by for example offering a paid day off
- A healthy environment which means plenty of sunlight, fresh water and plants
- Allow your employees to take short breaks to stretch their legs
- Have weekly meetings to discuss their progress and any issues they might have
Job satisfaction
Job satisfaction means being satisfied with the job, that the employees are satisfied with their job and continue working there. This will profit the employees because they get paid for a job they enjoy and also for the company because they have satisfied employees which is really important because satisfied employees work better than employees who do not enjoy their job and just run it because they need the money like I explained in the previous slide.
Job security
Job security basically means that the employee is safe at their job so that they can keep it and do not get sacked. To have a secure job the employees need to work hard and do what they are told to make the best out of it and keep the customers satisfied. They also have to back it up somehow through for example a good sale record and positive feedback of the customers. The company needs to make sure that enough customers come in and that they make enough profit so that they can afford to keep all their good employees.
Possibility of promotion
The best promotion is excellent customer service because if the company offers amazing customer service and products then the customer will remember that and come back, so become a loyal customer and also recommend it to their friends and family about their amazing experience and that they should try it out as well which they will do. An other way would be through advertisements on the TV or the internet. An other good method of promotion would be a stand outside somewhere that you are able to talk one to one to the people and persuade them why they should use your services and products. This way you can also give away free balloons with the name of the company and the logo or free samples of the product you offer or just free little snacks to wreck the interest in people.
