CLARAS COLLEGE OF COMMERCE BMS

SERVICE SECTOR MANAGEMENT PROJECT ON MOTIVATION

T.Y.BMS AJAZ .H. SOLKAR 48

CUSTOMER SERVICE Meaning Customer service is an integral part of our job and should not be seen as an extension of it. A company s most vital asset is its customers. Without them, we would not and could not exist in business. When you satisfy our customers, they not only help us grow by continuing to do business with you, but recommend you to friends and associates. The practice of customer service should be as present on the show floor as it is in any other sales environment. Definition Customer service is an organization's ability to supply their customers' wants and needs. Broadly speaking, customer service can be defined as: The way a business looks after its customers Customer service has to be a team effort and not just the responsibility of employees who deal with the public directly. Providing good customer service is a vital part of managing a business. Most customers have the option to go elsewhere if the quality of customer service is lacking. On the other hand, good customer service is a source of competitive advantage. Good customer service leads to customer satisfaction. Satisfied customers are more loyal and profitable. Dissatisfied customers take their money elsewhere and tell their friends about the poor service they have received.

HISTORY OF CUSTOMER SERVICE The modern concept of customer service has its roots in the Craftsman Economy of the 1800s, when individuals and small groups of Manufacturers competed to produce arts and crafts to meet public Demand. Individual orders were booked for each customer and supplied according to his/her taste and demands. The economies were small and so were the transactions. The manufacturer was able to meet the customers on one to one basis and talk to customer to understand the minute details. Customer care and service were highly personalized. But then the economics swing was setting in. The technology was increasing and so was it difficult to cater to the individualistic needs of the customer. Gradually, the era of mass production came in. The advent of Mass Production in the early 20th century, followed by an explosion in the demand for goods after World War II, increased the power of suppliers at the expense of consumers, and thus reduced the importance of customer service. History tells us that customer service as a concept was kept aside in the cell. The manufacturers could produce what they could and these goods will find their way to customers on their own. Infect, it was the age of demand exceeding supplies. There was no need for customer service as an activity or as a tool for promotion or enhancement of markets. But things never remain the same for long periods of time. A shift in this balance began in the 1970s, as international competition increased, and the dominance of western manufacturers was challenged, first by Japan, then by Korea, China and other developing economies. New world emerged with these Eastern economies taking to tremendous growth Producers responded by improving the quality of their products and services. They introduced to the world entirely a new concept the concept of simplicity and convenience and economy to the world The economic boom of the 1990s again increased the power of suppliers who, while not completely reverting to lower standards of service, were able to be more selective of which customers to serve, and of what levels of service to provide. The overall quality of customer service in society and in specific industry- will continue to be determined by the relative balance of power between suppliers and consumers; it will improve as competition becomes more intense, and decline as competition decreases. We have to asses the global situation today and derive that we are facing a new development. Briefly, the product similarity is making it more a challenge today than ever before, to upgrade customer services to get an edge over the competitors. The technology is not only developed but also has assumed the position of universality. Global trade is now much more than ever before. Hence customer services and development is the only answer we have before us. We know more about this.

Benefits of good customer service The potential benefits to the firm from providing a consistently high level of customer service include:
y y y y

Increased sales more likely to try out other products/services too Customer loyalty more likely to be a source of repeat business and to recommend the business to friends and family Enhanced public image helps build a brand and provides protection if there is a slip-up in customer service More effective workforce satisfied customers help create a positive working environment

It should be evident from the points made above that the benefits of good customer service are interrelated, i.e.
y y y

Satisfied customers will lead to more sales from their own repeat business and from the new customers generated by their recommendations A positive public image will generate more sales by attracting new customers Staff who deliver good customer service receive their customers appreciation and are further motivated to offer good customer service and so on

Strategic Advantage through Customer Service: A company can outperform rivals only if it can establish a difference that it can preserve. Customer service can be such a difference. It is very difficult to control, and therefore difficult to imitate. It is difficult to control because of its variability. The level of service may vary greatly between two providers in the same organization. It may also vary from one moment to another, even as delivered by the same provider. The difficulty is compounded in multi-unit operations: in addition to variability within units, there is also variability among units.

Challenge and Opportunity: That is both the challenge and the opportunity. The consistent delivery of superior service requires the careful design and execution of a whole system of activities that includes people, capital, technology, and processes. The few companies that can manage this system do stand out, and are sought out. This is the foundation of their sustainable competitive advantage.

Customer Service Culture: For an organization s members to deliver superior service consistently, they must be acculturated, i.e. instilled with the concept and spirit of customer service. We ought to create within our organization, the culture of customer service thru constant education and training. We ought to highlight the following constantly to our employees and make them work towards creation an environment of customer service. Infect, all our efforts should be directed towards that
y y y y

Values the results of good and effective customer service should be appreciated by all and adopted for its good value Traits to provide customer service, we ought to have some human traits such as helping, courtesy and provision of services Patterns the pattern should be a part of operation customer service pattern Behavior and of course our behavior should be such that it renders customer service as a routine work and not just specially undertaken

Automated customer service Customer service may be provided by a person (e.g., sales and service representative), or by automated means. Examples of automated means are Internet sites. An advantage with automated means is an increased ability to provide service 24-hours a day, which can, at least, be a complement to customer service by persons. However, in the Internet era, a challenge has been to maintain and/or enhance the personal experience while making use of the efficiencies of online commerce. Writing in Fast Company, entrepreneur and customer systems innovator Micah Solomon has made the point that "Online customers are literally invisible to you (and you to them), so it's easy to shortchange them emotionally. But this lack of visual and tactile presence makes it even more crucial to create a sense of personal, human-to-human connection in the online arena."

Poor customer service: India loses Rs 11,640 cr/yr Business in India lose up to Rs 11,640 crore (Rs 116.4 billion) in revenue every year because of poor service as customers abandon transactions or end relationships when companies do not meet their expectations, a survey says.

"India loses Rs 11,640 crore ($2.46 billion) because of poor customer service every year in revenue because of inability to meet customer expectations," a survey conducted by Greenfield Online said. India pays a higher cost of poor customer service compared to New Zealand and Australia that were also part of the survey. The three countries put together lose Rs 28,000 crore ($5.6 billion) in revenue, the survey sponsored by GenesysTelecom Labs, part of Alcatel-Lucent company, said. "Businesses in India, Australia and New Zealand suffer significant losses every year because of poor customer service over the web, in the contact centre, or via mobile devices as consumers abandon transactions or end relationships when companies do not meet their expectations," it added. Of the over 1,500 people surveyed, the bigggest complaint was about trying to reach through to the call centre, the survey found. In India, 56 per cent consumers admitted to having ended a relationship because of poor customer service, while 50 per cent had an experience that made them more likely to do so in the past year, the survey said.

8 Rules For Good Customer Service Good customer service is the lifeblood of any business. You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business won't be profitable for long. Good customer service is all about bringing customers back. And about sending them away happy - happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers. If you're a good salesperson, you can sell anything to anyone once. But it will be your approach to customer service that determines whether or not you ll ever be able to sell that person anything else. The essence of good customer service is forming a relationship with customers a relationship that that individual customer feels that he would like to pursue. How do you go about forming such a relationship? By remembering the one true secret of good customer service and acting accordingly; "You will be judged by what you do, not what you say." I know this verges on the kind of statement that's often seen on a sampler, but providing good customer service IS a simple thing. If you truly want to have good customer service, all you have to do is ensure that your business consistently does these things: 1) Answer your phone. Get call forwarding. Or an answering service. Hire staff if you need to. But make sure that someone is picking up the phone when someone calls your business. (Notice I say "someone". People who call want to talk to a live person, not a fake "recorded robot".) For more on answering the phone, see Phone Answering Tips to Win Business. 2) Don't make promises unless you will keep them. Not plan to keep them. Will keep them. Reliability is one of the keys to any good relationship, and good customer service is no exception. If you say, Your new bedroom furniture will be delivered on Tuesday , make sure it is delivered on Tuesday. Otherwise, don't say it. The same rule applies to client appointments, deadlines, etc.. Think before you give any promise - because nothing annoys customers more than a broken one. 3) Listen to your customers. Is there anything more exasperating than telling someone what you want or what your problem is and then discovering that that person hasn't been paying attention and needs to have it explained again? From a customer's point of view, I doubt it. Can the sales pitches and the product babble. Let your customer talk and show him that you are listening by making the appropriate responses, such as suggesting how to solve the problem.

4) Deal with complaints. No one likes hearing complaints, and many of us have developed a reflex shrug, saying, "You can't please all the people all the time". Maybe not, but if you give the complaint your attention, you may be able to please this one person this one time - and position your business to reap the benefits of good customer service. 5) Be helpful - even if there's no immediate profit in it. The other day I popped into a local watch shop because I had lost the small piece that clips the pieces of my watch band together. When I explained the problem, the proprietor said that he thought he might have one lying around. He found it, attached it to my watch band and charged me nothing! Where do you think I'll go when I need a new watch band or even a new watch? And how many people do you think I've told this story to? 6) Train your staff (if you have any) to be always helpful, courteous, and knowledgeable. Do it yourself or hire someone to train them. Talk to them about good customer service and what it is (and isn't) regularly. Most importantly, give every member of your staff enough information and power to make those small customer-pleasing decisions, so he never has to say, "I don't know, but so-and-so will be back at..." 7) Take the extra step. For instance, if someone walks into your store and asks you to help them find something, don't just say, "It's in Aisle 3". Lead the customer to the item. Better yet, wait and see if he has questions about it, or further needs. Whatever the extra step may be, if you want to provide good customer service, take it. They may not say so to you, but people notice when people make an extra effort and will tell other people. 8) Throw in something extra. Whether it's a coupon for a future discount, additional information on how to use the product, or a genuine smile, people love to get more than they thought they were getting. And don t think that a gesture has to be large to be effective. The local art framer that we use attaches a package of picture hangers to every picture he frames. A small thing, but so appreciated. If you apply these eight simple rules consistently, your business will become known for its good customer service. And the best part? The irony of good customer service is that over time it will bring in more new customers than promotions and price slashing ever did!