A growing number of organizations are giving increased attention to customer service. Financial institutions, hospitals, public utilities, airlines, retail stores, restaurants, manufacturers, and wholesalers face the problem of gaining and retaining the patronage of customers. Building long-term relationships with customers has been given a high priority by the majority of America's most successful enterprises. These companies realize that customer satisfaction is an important key to success. Customer service can be defined as those activities that enhance or facilitate the purchase and use of the product. Today's emphasis on customer satisfaction can be traced to a managerial philosophy that has been described as the marketing concept.
Evolution of the Marketing Concept
What is the "marketing concept"? When a business firm moves from a product orientation to a customer orientation, we say it has adopted the marketing concept. This concept springs from the belief that the firm should dedicate all its policies, planning, and operation to the satisfaction of the customer.
The marketing era in the United States began in the 1950s. J. B. McKitterick, a General Electric executive, is credited with making one of the earliest formal statements indicating corporate interest in the marketing concept. In a paper written in 1957 he observed that the principal marketing function of a company is to determine what the customer wants and then develop the appropriate product or service. This view contrasted with the prevailing practice of that period, which was to develop products and then build customer interest in those products.
The foundation for the marketing concept is a business philosophy that leaves no doubt in the mind of every employee that customer satisfaction is of primary importance. All energies are directed toward satisfying the consumer. L. L. Bean, the Freeport, Maine, mail-order firm, provides a good example of a company that has embraced the marketing concept. This well-known supplier of outdoor products offers the customer an unconditional guarantee of satisfaction that has been in place since the company was founded in 1912. If you are unhappy with an L. L. Bean product, simply request replacement or a refund (Comarow, 1999).
We have entered the age of boundless competition, triggered in large part by an expanding global economy. Multinational competition has increased dramatically in recent years, and this means a one-world market exists for products ranging from cars to computers. To compete successfully in markets where products are the same or very similar, and prices are basically the same, service is often the only competitive advantage available.
Winning Customer Service Strategies
According to the marketing concept, an organization must determine what customers want and use this information to create satisfying products and services (Pride and Ferrell, 1997). Federal Express redefined mail service by providing over-night, door-to-door delivery of packages and letters. The company discovered a need for speed, reliability, and courteous service by well-trained employees. The marketing concept is a management philosophy guiding all the organizational activities, including production, personnel, finance, distribution, and marketing.
Excellent customer service is achieved by a three-dimensional process (see Figure 1) that includes a well-conceived service strategy, customer-driven systems, and customer-friendly people (Albrecht and Zemke, 1985). Each dimension must reflect the important needs and wants of the customer. The "service triangle" can be developed for any type of business. Each piece of the triangle is explained in the following sections.
Service Strategy
A well-conceived service strategy includes three important elements: market research to discover the customers' needs and wants; a clear vision of the firm's "reason for being"; and clearly stated beliefs and values that guide the enterprise (Albrecht and Zemke, 1985).
Many organizations are creating a written vision or mission statement that directs the energies of the company and inspires employees to achieve greater heights. Ortho Biotech, based in Raritan, New Jersey, begins its vision statement with a bold prediction: "We will be the best in our business by providing customers with innovative solutions to significant medical problems through biotechnology and related science" (quoted in Lee, 1993, p. 27). Senior managers must serve as "cheerleaders" to unify employees behind the vision.
The creation of a sound set of beliefs and values can give stability to an organization. Customer service priorities also become clearer. Ben Edwards, chairman of A.G. Edwards and Sons, Inc., the seventh-largest securities firm in the nation, says following the Golden Rule is still the best way to achieve success in business (Kegley, 1990). This attitude has had a positive influence on the company's 7400 employees.
Customer-Friendly Systems
Service systems are made up of all the various practices and procedures that personnel can use to meet customer needs. When you check into the Hyatt Regency Crown Center in Kansas City, Missouri, you are given a card that says, "Call 50 for a response to any concern within five minutes" (Manning and Reece, 1998). MBNA, a Wilmington, Delaware, financial services company wants every phone call answered within two rings. Employees achieve this goal nearly 100 percent of the time (Reece and Brandt, 1999). If you have a problem with your Dell computer, you can check the detailed troubleshooting guide provided by the company or get help from a member of the technical support staff. These examples are typical of the steps being taken by companies that want to meet, and in some cases exceed, the expectations of their customers.
Customer-friendly systems are designed to make things easy for customers. Complaints should be handled in a timely fashion. Returning or exchanging products should not be difficult. Requests for assistance should be handled in a courteous and efficient manner. Customer-friendly systems add value and build customer loyalty.
Customer-Friendly Frontline People
In many cases, the customer's first impression of an organization comes during contact with frontline people. The cashier at the supermarket, the receptionist at the doctor's office, and the front-desk clerk at the hotel often have the first opportunity to serve the customer. Unfortunately, too often these employees earn lowpay, receive little formal training, and are given little recognition for the important duties they perform. The best frontline employees are both competent and caring. They have a certain level of maturity and possess the social skills needed to build customer loyalty.
Summary
The ultimate purpose of every business should be to satisfy the customer. Increased levels of competition require a greater commitment to customer service. Firms that invest the time, energy, and money needed to achieve excellent customer service will be the ones that thrive and grow.
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[Article by: BARRY L. REECE]
