Customer Service

Unit 2: Prepare to deliver excellent customer service

Session 3: Balancing customer expectations

Defining customer expectations

What are customer expectations?
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Customer expectations are defined by the Institute of Customer Service as: What
people think should happen and how they think they should be treated when asking for
or receiving customer service.

The majority of organisations will strive to provide good, if not great, customer service
and meet or exceed their customers expectations. If expectations are not met, or if
customer service is of a poor standard, then organisations will find that they begin to
lose customers to the competition.

Common customer expectations

Most customer expectations are common-sense, logical assumptions based on the
service offer of an organisation.

Common customer expectations include:

The expectation that their order will be fulfilled to their requirements

 The expectation that their order will be processed and delivered on time
The expectation that the order can be returned or cancelled if the customer is dissatisfied
To be treated courteously and politely
To be served by knowledgeable and friendly staff.

How expectations are arrived at

How are customer expectations arrived at? You learned about this in more depth in the
previous Session, but heres a brief recap of where information that helps customers to
form their expectations might be found:

Promises and industry standards

Codes of practice and information in advertising, brochures, websites and catalogues
The mood and characteristics of your customers
Information about customers whether this is from feedback, questionnaires, surveys or
information held in customer relationship management (CRM) systems

What is a service offer?

A service offer defines the extent and limits of the customer service that an organisation
is offering.

In commercial organisations the service offer is partly or largely determined by the

price that is being charged and by the service offer of competitors. A unique service
offer is one that differentiates the offer that an organisation is making from that of its
competitors or comparable organisations.

The service offer is something over and above what an organisation will do for you. It is
about knowing the service offer and the details of it what it says in the small print.

Examples of service offers

We will get back to you in 24 hours.
If there are more than four people at the till we will open up four tills.
We will thank you promptly when you give us a donation.
We offer a money-back guarantee, no arguments, no quibble.
Your organisations service offer
Now think about how your organisation defines its service offer. Is it:

In terms of price? For example, does your organisation undercut competitors to secure a
deal?
In terms of difference between your organisation and its competitors? For example, does
your organisation promise to provide quicker, better, faster delivery than the competing
organisation?
In terms of a promise or guarantee? For example, does it offer a money-back guarantee if
a customer is dissatisfied?
 Something else?

Commercial sector

As well as offers relating to the level of service, these may include money-based offers
such as:

Were the cheapest in town

Were never knowingly beaten on price
Buy two, get a third free
Be satisfied or your money back.

Public sector

The service offers of the public sector tend to be supportive and service-based. There is
an emphasis on front-line staff being able to:

Clearly communicate the service offer to customers

Represent the organisation to the best of their ability
The service offers in public sector organisations are likely to be achieved through strong
training and induction processes.
 Third sector

With third sector organisations the customer service offer is a little different as there is
no drive to make a profit.

However, the customer service offer is nonetheless important. For example:

It might centre on communication with users, fundraisers, donors and volunteers.

It might aim to thank donors, to train volunteers in basic customer care skills, or to even
do something as basic as ensuring customer enquiries will be answered within 48 hours.
Did you know?

A customer service charter or code of practice will usually spell out the standards of
services that an organisation should provide its customers.

If youre unsure of the service offer, you may find that it is defined in the charter.

Refer back to Unit 1 Session 5, and Unit 2 Session 1, for more information on
customer service charters.

Constraints of customer service offers

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An organisations service offer needs to be flexible but at the same time there will be
certain financial and resource implications that affect it, and in some cases constrain it.
In Session 2, you learned that occasionally it may be beneficial for you to bend the rules
a little when it comes to customer expectations and ensuring they are met within the
service offer. But resources and financial implications can reflect on an organisations
offer.

Service offers can be constrained by factors such as:

Time

Depending on the service offer, time can be a constraint. For example, if the service offer
of your organisation contains a promise to answer customer queries within two
working days, this will need to be fulfilled. However, it can be problematic if the team
which normally deals with queries is experiencing staff shortages!

Example
Imagine in a normal day there is an average of 20 email queries and 100 phone calls
which is handled by a team of 5. This means each team member answers 4 email
queries and 20 phone calls. However, if the department is short-staffed and is down to 3
members, this increases the load of each member. The promise of answering a query
within 2 working days may, in this case, be hard to fulfil.

Costs

Any service offer must have costs at the forefront of its mind. For example, if an
organisations service offer allows customers to return goods that are faulty or not fit
for purpose within two weeks of purchasing them, this would be honoured under UK
law.

However, if the customer simply decided against purchasing them, they would not be
entitled to a refund. Many organisations would provide a credit note to the value of the
purchase, so the customer would be able to buy something they liked.
Overpromising

If every organisation refunded every customer who changed their mind about a
purchase, there would be a danger that they would over-compensate as customers
would increasingly expect refunds.

If an organisation overpromises then expectations of customers are raised too high and
ultimately this will result in the organisation failing to deliver. Its important that you, as
a customer service representative, do not overpromise.

Acknowledge

However, even though it might be a hard ask, it might be best to acknowledge the query
and explain the situation, with a promise to keep the customer informed on progress.

Legal constraints

Service offers must operate within the laws of the industry in which the organisation
operates. Business-to-consumer organisations (those which sell their products/services
to consumers) must also comply with consumer laws. Tap to learn more about them.

Sale of Goods Act 1979 (as amended)

The Act gives consumers statutory rights, including the right to expect that goods must be of
satisfactory quality and fit for purpose.
 Supply of Goods and Services Act 1982
The Act requires traders to use reasonable care and skill when supplying goods and
services. Any materials or goods provided must be of satisfactory quality, fit for purpose and
as described.

Unsolicited Goods and Services Act 1971

The Act prohibits the sending of unsolicited goods and then demanding money for them.

Consumer Credit Act 1974

The original 1974 Act was established for the protection of consumers. Administered
by the then Director General of Fair Trading, it covered licensing and other control of
traders providing credit services, or supply of goods on hire or hire purchase
including: moneylenders, pawnbrokers and hire-purchase traders and their
transactions.

The Act was amended in 2006 to extend its scope, to create an Ombudsman
scheme, and to increase the powers of the now Office of Fair Trading in relation to
consumer credit. In addition, it permits borrowers to challenge in court "unfair
relationships between creditors and debtors".

Consumer Protection (Distance Selling) Regulations 2000

The Act protects consumers who buy goods at a distance (i.e. through the internet, mail
order and telephone). Consumers have the right to a cooling off period of seven days once
they receive their goods.

Customer expectations and the

organisations offer
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Customer expectations are beliefs about service delivery. How do customers form their
expectations? The Institute of Customer Service states that customer expectations are
formed by:

What people hear and see

What they read and what the organisation tells them
What happens during the customer experience
What has happened to them in other customer service experiences.
What people hear and see
This is about what people hear and see about your organisation and its staff. It could be
an observation (e.g. how staff treat customers in a shop, or over the telephone) or it
could be through word-of-mouth i.e. what other people tell them about your
organisation and its staff.

Word of mouth is extremely influential in shaping customer expectations about

different products and services, especially those products and services which are
difficult to judge before buying them.

What they read and what the organisation tells them

Essentially, this amounts to what your organisation and its people tell customers about
its products, services and service delivery plans. This could be through copy on a
website, an advert in-store, on the TV, radio or in print, or it could be through customer
service charters, organisational commitments and promises or service level
agreements.

What happens during the customer experience

A customers experience will help to shape their opinion and expectation about an
organisation and its products, services or staff. Good customer experiences may result
in repeat custom, whereas bad customer experiences will probably result in the
customer going elsewhere. The customers experience lasts for the duration of their
relationship with the organisation right from the beginning, for example when looking
 at a product, to the after-sales service and future contact with that customer. Therefore
expectations may change as the customer moves through each stage of their experience.

Other customer service experiences

Customers often measure their current or most recent experience against other
experiences which they deem relevant. For example, a business traveller booking into a
budget hotel chain might compare the current experience with previous experiences of
not only that particular hotel or that particular chain, but different chains in different
locations.

Or they may even compare it to hotels they have stayed in while on holiday.
Comparisons might include factors such as sleep quality, comfort, price, amenities and
leisure facilities.

How are customer expectations arrived at within

your organisations offer?

To answer this, it helps to consider:

What do customers want from the product/service?
What do they perceive the benefits of the product or service to be?
How is the service offer communicated to customers?
Are there opportunities for customers to feed back about their experience, and therefore
inform the organisation?
 Typical customer expectations:
To be served quickly and politely
The product or service is available
The product or service is reliable, safe etc.
The customer has been provided with accurate, up-to-date information about the product
or service and the organisations offer.

Feedback
Some customer service professionals actively seek feedback from customers about their
product, service or experience. Feedback helps organisations to link expectations to
satisfaction levels, and therefore organisations are better able to judge whether they
have identified and met customer expectations adequately, or indeed exceeded them.

Key point
For your Assessment you must be able to explain how customers expectations are
arrived at within their organisations offer (3.3). For this question you must explain how
your organisation (or one you know well) identifies what their customers expectations
are. Thinking about what customers hear and see about the organisation, and what their
experiences with the organisation may have been like, will help with this part of your
Assessment.

Organisational goals can limit customer

service
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While most organisations will strive to provide good, if not great, customer service, they
often find that some of the promises in their charters, manifestos or service agreements
are the very things that limit them (on occasion) from delivering that customer service.
On Page 3 of this Session you read about how an organisation can suffer if it over-
promises and under-delivers. Lets look at look at some other types of goals on this
page.

Commercial sector

Technological advances may be one example of how an organisations goals may limit
customer service provision.

For example, changes in technology may mean that it is more economical for an
organisation to ask customers to switch to a more efficient or newer type of technology
(such as broadband) but this may come at a cost (for example, a high line rental or
outlay) on the customers part.

It may make economic sense for the organisation to do this but for its customers it may
mean paying for new technology that they dont want or understand.

Public sector

Public service cuts may be another example of how organisational goals (to save
money) may affect customer service provision.

For example, some local authorities resort to closing services or buildings that are not
used very often, or which need a lot of modernisation.

While the organisation saves money on those buildings and services, the local
community which used that building/service often concludes that it has lost out.
 Third sector

Simple good customer service is at the heart of many organisations in the third sector
but training for volunteers can result in poor customer service.

So if a charity prioritises other goals over a training programme, they will be unable to
train staff and volunteers to a high standard.

If volunteers are not properly trained, especially those who come into regular contact
with customers, then there may be problems with service.

Now lets look at examples of how organisational goals in customer charters and codes
of practice limit customer service.

Commercial sector
Tap below to explore an example about how a commercial sector organisation has let its
customers down.

Charter
AnyTown Property Management Company is a lettings agent that lets and manages
properties on behalf of private landlords. Its Customer Care Promise states:

The company will repair all reported faults within one week.
The company will offer a 24-hour reporting service.
The company will serve customers quickly and politely.
The company will work with landlords to ensure good service.

Scenario
AnyTown Property Management Company has received several reports of faults
such as broken washing machines and mould on bathroom walls.

However, the washing machine repairer has confirmed that a spare part is needed
which can take up to four weeks to arrive. The tenant for that particular house will
need to make other arrangements to wash clothes for the next month.
 The painter sent to repaint the bathroom walls in one property has confirmed that
damp has set in and the wall will need replastering. This will take longer than a week
to fix. The company has therefore failed its tenant as it has not conformed to the
promises which it set out in its Charter.

Public sector
Tap below to explore an example about how a public sector sector organisation has let
its customers down.

Promise
AnyTown Central Library has a Customer Service Charter which promises to:

Answer phone calls within five rings

Acknowledge customer queries and comments within 48 hours, and respond to
them within 5 working days.
Serve customers quickly and courteously.
Welcome feedback, concerns and suggestions.
AnyTown Central Library has recently been the subject of organisational goals to
save 50,000, which has resulted in the loss of two reference library staff posts.

Scenario
Since the cost savings in the library, the staff have been unable to stick resolutely to
their charter promise about the phones.

Each staff member is having to answer twice as many phone calls, which is
impacting on the librarys ability to answer phone calls within five rings, and serve
customers quickly.

Customers are beginning to complain about the length of time they are having to wait
to get through on the phone.

Third sector
Tap below to explore an example about how a third sector organisation has let its
customers down.

Pledge
AnyChild charity is a local charity in AnyTown. Its Charity Pledge states that:
 It will always answer its phones, 24 hours a day.
It will provide home visits to service users, as and when they need them.
Donors can donate online if they wish, via a secure website which is maintained
by in-house staff.
Like any charity, AnyChild charity relies on donations to keep it afloat.

Scenario
AnyChild has been handing out leaflets in the local supermarket to raise awareness
of an upcoming walk.

A local husband and wife decide to donate online instead of doing the fundraising
walk, as theyre on holiday the day the walk takes place.

However, the website has not been maintained as the charity has struggled to pay a
web developer to keep it up to date and bug-free. The couple cannot donate online.

When customer expectations are too high

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In Session 2, Page 2 you learned about the importance of creating customer

expectations that are manageable and realistic. Occasionally there will be instances
where customer expectations are very high so high in fact that they cannot be
managed within the service offer of the organisation. This generally means that the
customer is not satisfied with the service they have received.

Now lets look at examples of how organisational goals in customer charters and codes
of practice limit customer service.

Customer expectations
As discussed earlier in this Session, customer expectations may change as they deal with
your organisation. Additionally, there is a tendency that customer expectations increase
over time.

Tap the links below to read more about why expectations change or increase.

Competitors
If competitors improve their service offer, it will become apparent to customers that different
levels of service offer exist. This may result in customer expectations changing. They
compare what you offer with the offer of competitors.
Boredom
Many customers may become bored with the same level of service offer. If it fails to
change, a customer may believe that an organisation is complacent.

Standards
There may be a common perception amongst customers that service standards will
increase through time. This may be as a result of levels of service improving for a
variety of products or services in the marketplace.

The rationale for customers is that if organisations in other marketplaces are trying to
offer better deals, then your supplier should do likewise.

Distinguishing between needs and expectations

Its important to distinguish between customer needs and customer expectations.
Customer needs are met through the benefits of a product or service.
Customer expectations are factors which are important to the customer. Usually
these factors are based on information the organisation makes available to them, as
well as factors such as word of mouth.

The more important a factor is, such as speed, reliability or price, the narrower the
range of tolerance a customer will impose on that factor. For example, if a
customers car has faulty brakes, and has been given a recommendation of a good
garage, their tolerance range for the reliability factor may be quite narrow.

Conversely, the tolerance level for good service of a customer travelling on a budget
airline may be slightly wider than the tolerance level of a customer who is travelling
business class on a renowned airline.

Some organisations may be tempted to deal with heightened customer expectations

by lowering them instead, but this is not a viable solution as it may result in more
complaints and may even result in lowering the customers perception of the service,
even when the service is still high. It may be better to adopt a method similar to
the apologise-explain approach outlined in Session 2. Click the icons below for a
quick recap of this method.

Apologise
Apologise that the customers expectations have not been met by the service offer.
An apology should always be made to the customer to show that you and your
organisation understand their situation (no matter how unrealistic their expectations
are).
 Explain
Any anger or dissatisfaction a customer feels will simply be compounded if you are
not able to explain why their needs cannot be met. Failing to provide your customer
with an explanation for disappointing them in any way will make it appear like you
and your organisation do not value customer opinion and feedback. In this instance
you will need to explain how the service offer does not meet their expectations.
Alternatives
If the service offer allows you to offer an alternative or goodwill gesture, then by all
means do so if it is within your remit. However, if customer expectations fall outside
of the service offer, you can only apologise, explain and then perhaps offer to pass
on the customers feedback to someone else so that something can be done to
rectify similar situations in the future.
In summary
In this Session you have learned about balancing customer expectations against the
organisations offer. You should now be able to:

Outline the customer service offers of two organisations to include one commercial
organisation and one public or third sector organisation
Explain how resource and financial implications reflect on the organisations offer and
customers expectations
Explain how customers expectations are arrived at within their organisations offer
Identify examples of when customer service may be limited by organisational goals
Describe how to tell a customer that their service expectations are outside of the
organisations offer.

Balancing customer expectations

Back to Session
Take a look at the following learning points to see a summary of what youve covered in
this Session:

Defining customer expectations

Common customer expectations
- Order fulfilled to their requirements
- Order will be on time
- Order can be returned or cancelled
- To be treated courteously
- Knowledgeable and friendly staff
How expectations are arrived at
- Promises and industry standards
- Codes of practice
- Mood and characteristics of customers
- Information from customers
Service offers
- Commercial sector
 - Public sector
- Third sector

Constraints of customer service offer

Common constraints
- Time
- Costs
- Overpromising
Legal constraints
- Sale of Goods Act 1979
- Supply of Goods and Services Act 1982
- Unsolicited Goods and Services Act 1971
- Consumer Credit Act 1974
- Consumer Protection (Distance Selling) Regulations 2000

How customers form their expectations

What people hear and see
- Observation
- Word-of-mouth
What the organisation tells them
- Websites
- In-store adverts
- TV, radio and print
Customer experience
- Good experiences
- Bad experiences
How service offers are arrived at
- Common questions
- Common expectations
- Feedback

When expectations arent met

Organisational goals limiting customer service
- Commercial sector
- Public sector
- Third sector
Customer expectations
- Competitors
- Boredom
- Standards
Distinguishing between needs and expectations
- Apologise
- Explain
- Alternatives
Quick quiz
Back to Session
It's time to put that learning into practice!

Question 1
Which of the following is not a way that customer expectations can be fulfilled?

Promises and industry standards

The mood and characteristics of customers

Experience with unsatisfactory / cancelled orders

Correct. Well done!

Question 2
Your organisation is part of the third sector. Which of the following is most likely to be a
service offer of your organisation?

Were the cheapest in town

We aim to thank donors

We aim to communicate clearly

The correct answer is: We aim to thank donors

Question 3
Which of the following is the main consequence of overpromising when it comes to
service offers?

The expectations of customers will be raised too high

The organisation will be in breach of legal acts

The organisation would not have enough time to complete all transactions
The correct answer is: The expectations of customers will be raised too high
Question 4
Technological advances are an example of how an organisations goals may limit
customer service provision in which sector?

Public sector

Third sector

Commercial sector
The correct answer is: Commercial sector

Question 5
Select one option to complete the following sentence:

The more important that a factor is to a customer, the _______________ the range of
tolerance a customer has for errors.

Narrower

Larger

More generous