Customer service

Department or function of an organization that responds to inquiries or complaints from customers of that organization. Customers may communicate in person or via written correspondence, toll telephone, or in-wats telephone.

Various techniques are used to generate correspondence back to the customer, including checklists, form letters, typewritten letters, computer letters (fill-in type), or computer-generated personalized letters. For example, a checklist may have three questions, with one question checked to indicate that it is the answer needed. Form letters accommodate a frequent and relatively standard situation. Typewritten letters are best for irate complaints or special situations. Computer letters combine the benefits of personalization with the efficiencies of automation.

Customer service correspondence may be in letterhead or postcard format. Customer service is an important part of the fulfillment function, ensuring that customers will buy again and/or continue to be good customers.

Department or function of an organization that responds to inquiries or complaints from customers of that organization. Customers may communicate in person or via written correspondence, toll telephone, or 800 number.

Customer service correspondence may be in letterhead or postcard format. Customer service is an important part of the Fulfillment function, ensuring that customers will buy again and/or continue to be good customers.

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.

Bibliography

Albrecht, K., and Zemke, R. (1985). Service America! Home-wood, IL: Dow Jones-Irwin.

Carlzon, Jan. (1987). Moments of Truth. Cambridge, MA: Ballinger.

Comarow, A. (1999). "Broken? No Problem." U.S. News and World Report January 11:68-70.

Fromm, Bill, and Schlesinger, Len. (1994). The Real Heroes of Business . . . and Not a CEO among Them. New York: Currency Doubleday.

Kawasaki, Guy. (1999). Rules for Revolutionaries. New York: Harper Business.

Kegley, G. (1990). "Broker with a Difference: A. G. Edwards, Chairman." Roanoke Times World News April 13:B-6.

Lavington, Camille. (1997). You've Only Got Three Seconds. New York: Doubleday.

Lee, C. (1993). "The Vision Thing." Training February 27:27.

Manning, G. L., and Reece, B. L. (1998). Selling Today: Building Quality Partnerships. Upper Saddle River, NJ: Prentice-Hall.

Peppers, Don, and Rogers, Martha. (1999). The One to One Fieldbook. New York: Currency Doubleday.

Pride, W. M., and Ferrell, O. C. (1997). Marketing. Boston Houghton Mifflin.

Reece, B. L., and Brandt, R. (1999). Effective Human Relations in Organizations. Boston: Houghton Mifflin.

Sewell, Carl. (1998). Customers for Life. New York: Pocket Books.

[Article by: BARRY L. REECE]

Customer service is the provision of service to customers before, during and after a purchase.

According to Jamier L. Scott. (2002)^[1], “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation."

Its importance varies by product, industry and customer; defective or broken merchandise can be exchanged/swapped, often only with a receipt and within a specified time frame. Retail stores will often have a desk or counter devoted to dealing with returns, exchanges and complaints, or will perform related functions at the point of sale.

Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service. Examples of self service are Internet sites. The experience a customer has of a product also affect the total service experience, but this is more of a product direct feature than what is included in the definition of customer service.

Customer service is normally an integral part of a company’s customer value proposition. In their book Rules to Break and Laws to Follow, Don Peppers and Martha Rogers, Ph.D. write that "customers have memories. They will remember you, whether you remember them or not." Further, "customer trust can be destroyed at once by a major service problem, or it can be undermined one day at a time, with a thousand small demonstrations of incompetence."^[2]

From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization's ability to generate income and revenue^[3]. From that perspective, customer service should be included as part of an overall approach to systematic improvement.

Some have argued^[4] that the quality and level of customer service has decreased in recent years, and that this can be attributed to a lack of support or understanding at the executive and middle management levels of a corporation and/or a customer service policy.

Contents 1 Instant feedback 2 Setting the right KPIs 3 Standardization 4 See also 5 References

Instant feedback

Recently, many organizations have implemented feedback loops that allow them to capture feedback at the point of experience. For example, National Express, one of the UK's leading travel companies invites passengers to send text messages whilst riding the bus. This has been shown to be useful as it allows companies to improve their customer service before the customer defects, thus making it far more likely that the customer will return next time.^[5]

Setting the right KPIs

This section contains instructions, advice, or how-to content. The purpose of Wikipedia is to present facts, not to train. Please help improve this article either by rewriting the how-to content or by moving it to Wikiversity or Wikibooks. (August 2009)

A challenge working with Customer Service is to ensure that you have focused your attention on the right key areas, measured by the right Key Performance Indicator. There is no challenge to come up with a lot of meaningful KPIs, but the challenge is to select a few which reflects your overall strategy. In addition to reflecting your strategy it should also enable staff to limit their focus to the areas that really matter. The focus must be of those KPIs, which will deliver the most value to the overall objective, e.g. cost saving, service improving etc. It must also be done in such a way that staff sincerly believe that they can make a difference with the effort.

One of the most important aspects of a customer service KPI is that of what is often referred to as the "Feel Good Factor". [1] Basically the goal is to not only help the customer have a good experience, but to offer them an experience that exceeds their expectations. Several key points are listed as follows:

1. Know your product - Know what products/service you are offering back to front. In other words be an information expert. It is okay to say "I don't know", but it should always be followed up by... "but let me find out" or possibly " but my friend knows!" Whatever the situation may be, make sure that you don't leave your customer with an unanswered question.

2. Body Language/Communication - Most of the communication that we relay to others is done through body language. If we have a negative body language when we interact with others it can show our lack of care. Two of the most important parts of positive body language are smiling, and eye contact. Make sure to look your customers in the eye. It shows that we are listening to them, not at them. And then of course smiling is just more inviting than someone who has a blank look on their face.

3. Anticipate Guest Needs - Nothing surprises your customer more than an employee going the extra mile to help them. Always look for ways to serve your customer more than they expect. In doing so it helps them to know that you care and it will leave them with the "Feel Good Factor" that we are searching for.

Standardization

There are few standards on this topic. ISO and The International Customer Service Institute (TICSI) have published the following ones:

• ISO 9004:2000, on performance improvement
• ISO 10001:2007, on customer service conduct
• ISO 10002:2004, on quality management in handling customer complaints
• ISO 10003:2007, on dispute resolution
• The International Customer Service Standard (TICSS)

There is also an Information Technology service management standard: ISO/IEC 20000:2005. Its first part concerns specifications and its second part the code of practice.

See also

• Customer experience management
• Customer relationship management
• Customer service advisor
• Customer service representative
• Customer survey
• Institute of Customer Service (UK)
• Privacy policy - GBPs
• Public Services
• Sales
• Sales process engineering
• Service system
• Support automation
• Technical support

References

1. ^ Turban, Efraim (2002), Electronic Commerce: A Managerial Perspective, Prentice Hall, ISBN 0131854615 
2. ^ Peppers, Don and Martha Rogers, Ph.D. (2008), Rules to Break and Laws to Follow, Wiley, ISBN 978-0470227541 
3. ^ Paul H. Selden (December 1998). "Sales Process Engineering: An Emerging Quality Application". Quality Progress: 59–63. 
4. ^ Dall, Michael; Bailine, Adam (2004), Service this: Winning the war against customer disservice (1st ed.), Last Chapter First, ISBN 0975371908 
5. ^ ""Lunch Lesson Four - Customer service"". BBC News. http://news.bbc.co.uk/1/hi/programmes/working_lunch/3161800.stm. Retrieved October 27, 2008. 

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