introductiontocustomercareandservice-210331114259.pptx

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1. Introduction to customer care and service 12/29/2016 Prepared by Mr. Lelisa B. 1 By; Prepared by Mr. Lelisa B. ( M.Sc Student) Haramaya University

2. Main contents Customer service customer care/service Types of customers Types of customer services 12/29/2016 Prepared by Mr. Lelisa B. 2

3. Introduction There is only one boss: the customer. And he or she can fire everybody in the company from the chairman down, simply by spending their money somewhere else. (Sam Walton, founder of Wal-Mart) 12/29/2016 Prepared by Mr. Lelisa B. 3

4. Definition of Customer What does customer mean ? Please discuss with your friend 12/29/2016 Prepared by Mr. Lelisa B. 4

5. Definition of Customer A person /company that buys good or services A person who buys, especially on a regular basis How about SERVICE??? 12/29/2016 Prepared by Mr. Lelisa B. 5

6. Service It is anything of value other than physical goods, which one person or organization provides to another person or organization in exchange for something. Service is the work of dealing with customers. A service is any act or performance that one party can offer to another that is essentially intangible It may or may not be tied to a physical product 12/29/2016 Prepared by Mr. Lelisa B. 6

7. Service Services are economic activities that create value and provide benefits for customers at specific times and places Services are deeds, processes, and performances. Service can be seen simply as those points of interaction between service providers and their customers. 12/29/2016 Prepared by Mr. Lelisa B. 7

8. Customer Service Customer service is often seen as an activity, performance measurement and a philosophy. That is why, generally speaking, one single definition of customer service does not exist. However, there are some definitions of customer service in use today: 12/29/2016 Prepared by Mr. Lelisa B. 8

9. definitions of customer service in use today: CS is the ability to provide a service or product in the way that it has been promised." " CS is about treating others as you would like to be treated yourself." "CS is an organization's ability to supply their customers' wants and needs." "CS is a phrase used to describe the process of taking care of our customers in a positive manner." 12/29/2016 Prepared by Mr. Lelisa B. 9

10. definitions of customer service in use today: "Customer Service is any contact between a customer and a company that causes a negative or positive perception by a customer.” "Customer service is a proactive attitude that can be summed up as: I care and I can do.” It is all the direct and indirect contact between an organization and its customers. It includes all contacts with the customer either face-to-face or indirect contact. 12/29/2016 Prepared by Mr. Lelisa B. 10

11. 12/29/2016 11 why we need to study customer care & services?

12. The reason why we need to study the course customer care and services is that because we are dealing with people. 12/29/2016 Prepared by Mr. Lelisa B. 12

13. 1.2 Types of customers There are two types of customers in a broad sense- ours and our competitors ’. Often we disregard our competitors’ customers for a variety of reasons; for example we criticize them by stating that they ‘only buy on price’ and are not sophisticated to appreciate enough the ‘quality’ of our organization. 12/29/2016 Prepared by Mr. Lelisa B. 13

14. 1.2 Types of customers In fact, data have demonstrated that the major reasons why customers leave organizations are service based, not price. We should never dismiss our competitors’ customers. Rather, we should want to know why they are not our customers, and what about us, not them, is keeping them from being our customers. 12/29/2016 Prepared by Mr. Lelisa B. 14

15. 1.2 Types of customers Our customers come in three types: Dissatisfied: in danger of defecting to the competition at any time; Satisfied: willing to stay until something better comes along; Delighted: with needs and expectations exceeded on a continual basis. These customers are loyal and singing our phrases to the world. 12/29/2016 Prepared by Mr. Lelisa B. 15

16. 1.2 Types of customers Whether customers are dissatisfied, satisfied or delighted depends on the difference between customer perception and customer expectation of an organization’s products and services. Explain/justify this theory after 5 minutes discussion? 12/29/2016 Prepared by Mr. Lelisa B. 16

17. The Real Customer Service Customer service is not merely keeping the customer satisfied; it is keeping the customer delighted. It is not enough to have a satisfied customer, she/he should be ecstatic for doing business with you. This is "real" customer service. 12/29/2016 Prepared by Mr. Lelisa B. 17

18. Going Beyond products Customer service should go beyond products. In today's volatile business world and challenging economy, retaining customers is critical to our success. Customers have choices if we don't give customers some good reasons to stay, competitors will give them a reason to leave. 12/29/2016 Prepared by Mr. Lelisa B. 18

19. Some Facts and Figures It is far less expensive to cultivate an existing customer base and sell more services to them than to seek new ones. the average organization loses 50% of its customers every five years; and the cost of replacing them can be six to seven times more expensive than winning them in the first place. (Harvard Business Review, p-117). 12/29/2016 Prepared by Mr. Lelisa B. 19

20. Some Facts and Figures Studies have proven that a mere 5% increase in customer retention can result in profit increases of at least 20% repeat customers spend an average of 67% more than new customers. Additionally, after 10 purchases, a customer may have referred as many as 7 people. 12/29/2016 Prepared by Mr. Lelisa B. 20

21. Some Facts and Figures In summary, "real" customer service can increase customer retention and satisfaction and most importantly, drive profits. 12/29/2016 Prepared by Mr. Lelisa B. 21

22. What customers really want ? What customers really want can be divided into two areas. Firstly - they want the core service of your business to meet their needs. Example: If you say you're an accountant, then they expect you to resolve their tax details. 12/29/2016 Prepared by Mr. Lelisa B. 22

23. What customers really want ? What customers really want can be divided into two areas. Secondly - They also expect your product or service to represent value for money. Example: If I buy an expensive pair of winter boots, I expect them to keep out the cold and wet and also look good 12/29/2016 Prepared by Mr. Lelisa B. 23

24. six secrets of customer service What customers really - really - really want and what will make them loyal to your business and say wonderful things about you to other people are: Warm and friendly responses 2. They want to feel important “ Our greatest asset is the customer! Treat each customer as if they are the only one!”- Laurice Leitao 12/29/2016 Prepared by Mr. Lelisa B. 24

25. six secrets of customer service 3 . They want to be listened to Keep good eye contact with people and concentrate on what they're saying. Listen to their words, tone of voice, body language, and most importantly, how they feel. 12/29/2016 Prepared by Mr. Lelisa B. 25

26. six secrets of customer service 4 . Someone to know their name If you use a customer's name when you talk to them, it indicates that you recognize them as an individual Don't use it too often as it can become irritating. 12/29/2016 Prepared by Mr. Lelisa B. 26

27. six secrets of customer service 5 . Flexibility Customers hate to hear the word "No" or "it can't be done” Tell customers what you can do - not what you can't. 12/29/2016 Prepared by Mr. Lelisa B. 27

28. six secrets of customer service 6. Recovery When things go wrong, customers want you to solve their problems quickly . They don't want to hear excuses or whom to blame or why it happened; they just want it fixed fast. Customers will often judge the quality of your service by the way you recover. They will even forgive your mistakes if you recover well. 12/29/2016 Prepared by Mr. Lelisa B. 28

29. Fundamentals of customer care The six satisfaction elements A company’s product or service consists of a number of individual factors known as elements, which, separately and collectively, directly influence customer satisfaction. Between them, the six elements – known as satisfaction elements – represent every aspect in the purchasing decision of customers 12/29/2016 Prepared by Mr. Lelisa B. 29

30. Fundamentals of customer care The six satisfaction elements The product or service; Sales ; After-sales ; Location ; Time ; Culture . Each element can be subdivided into factors / considerations 12/29/2016 Prepared by Mr. Lelisa B. 30

31. The six satisfaction elements Source: Pat Wellington, (2010), Effective Customer Care , pp-7 Customer Satisfaction 12/29/2016 Prepared by Mr. Lelisa B. 31

32. Fundamentals of customer care 12/29/2016 Prepared by Mr. Lelisa B. 32 Factor/consideration Excellence is: Availability   Immediate availability on or before a negotiated, agreed or promised delivery date. (Overall excellence here is a fast speed-to-market time.) Product quality Lifetime zero defects of products. Service quality Continually meeting agreed customer requirements for products and services within best-cost limits. Packaging presentation   Packaging designed to reflect the image of the product and in harmony with other promotional devices. Image An image that matches reality and is fully in tune with the lifestyle and aspirations of target customers. Value for money Ensuring no deception that is, giving greater (perceived) value than the cost of the purchase. Fulfillment of expectations Giving satisfaction in excess of expectations. Satisfaction element 1: product or service

33. 12/29/2016 Prepared by Mr. Lelisa B. 33 Satisfaction element 2: sales Factor/consideration Excellence is: Marketing and merchandising   Honest, legal and decent marketing informative and targeted precisely in terms of market segment researching customers fully so that their needs, preferences and buyer values are understood in fine detail Verbal communication   A face-to-face or telephone manner should be attentive , interested, responsive and timely Purchase environment   A whole welcoming and frictionless environment that, in its temperature, lighting, decor and facilities, is conducive to the easy conduct of business and to making customers feel comfortable emotionally. Staff Any staff who has direct contact with the customer should be non-dismissive, responsive, empathetic, trustworthy, knowledgeable, and loyal to the corporate team. They should be well trained, self-reliant and enabled or empowered to act.

34. 12/29/2016 Prepared by Mr. Lelisa B. 34 Satisfaction element 3: after-sales Factor/consideration Excellence is: Maintained interest Acknowledging and honoring a customer’s lifetime value to the company , not disillusioning loyal customers by failing to acknowledge (and reward) that loyalty Complaint handling Enabled and empowered staff responding immediately, honestly, sympathetically; Using complaint-management process

35. 12/29/2016 Prepared by Mr. Lelisa B. 35 Satisfaction element 4: Location Factor/consideration Excellence is: Location   Explaining the location precisely (in text, graphics, verbally) Access   Clearly signposting the location, and ensuring that all the exterior faces of buildings, gateways and drives and all company land reflect the corporate image Security and comfort Providing adequate lighting, cover and signage to all car parks and entrance ways; Provision for customers with special needs Ensuring that nothing discriminates against special-needs groups. Web-based purchasing   Distribution facilities that enable products to be delivered in the time frame specified on the site.

36. 12/29/2016 Prepared by Mr. Lelisa B. 36 Satisfaction element 5: Time Factor/consideration Excellence is: Business hours Providing service according to customers’ needs, not according to the presence or absence of competitors. Applicability and availability of products   Providing a choice of continuously improved products that are relevant to the season and purchase patterns . Speed of transactions   Pragmatically, ensuring that the process is as short as customers want it.

37. 12/29/2016 Prepared by Mr. Lelisa B. 37 Satisfaction element 6: Culture Factor/consideration Excellence is: Ethics Being unquestionably legal, non-discriminatory, moral Conduct Being unbiased, willingly helpful, unimpeachable and authentically customer focused; and learning from constructive criticism. Internal relationships   Demonstrating fair and balanced treatment of all in the organization, with no unjustifiable disparities between the highest and lowest members of staff ; understanding the concept of co-workers being internal customers; External relationships   Developing a partnership with suppliers and customers With regard to suppliers, negotiating fair contracts, to develop a ‘partnership’ arrangement rather than constantly looking for the cheapest bid.

38. First contact with organization: ‘moment of truth’ The ‘moment of truth’ A “ Moment of Truth” is any point of interaction that a customer has with an organization through their experience of that interaction, gain an impression of the organization . Care comes into the picture during the moment of truth. Prepared by Mr. Lelisa B. 12/29/2016 38

39. product oriented & Customer oriented philosophies 1) Product oriented philosophy (old philosophy) Is a management philosophy or organizational culture that is based on the company’s product. The tendency is to focus on how to get customers to buy the product, and decisions are based on what is good or bad for the company’s products. Prepared by Mr. Lelisa B. 12/29/2016 39

40. product oriented & Customer oriented philosophies 2) Customer oriented philosophy based on the needs and desires of its customers. The tendency is to focus on what customers in the market place want and to develop products to meet those needs. Decisions are usually based on customer needs. Prepared by Mr. Lelisa B. 12/29/2016 40

41. Understanding the service product For many years businesses treated services much the same as they treated any retail good. However in the 1970’s a new view emerged which understands service is distinctly different from retail. Discuss & Justify Prepared by Mr. Lelisa B. 12/29/2016 41

42. Understanding the service product For many years businesses treated services much the same as they treated any retail good. However in the 1970’s a new view emerged which understands service is distinctly different from retail. The basic nature of the service product differs from that of the retail product in three major characteristics. Prepared by Mr. Lelisa B. 12/29/2016 42

43. Understanding the service product Relative intangibility of service Simultaneity Customer participation Prepared by Mr. Lelisa B. 12/29/2016 43

44. Understanding the service product Relative intangibility of service Simultaneity Customer participation Prepared by Mr. Lelisa B. 12/29/2016 44