John Murtagh Grad Dip Notes


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Lecturer: John Murtagh

Graduate Diploma in Management Studies notes

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  • Define a customer first Difference between internal and external customers ? What do we mean by “good” customer service ? Good for whom ? Example of a company with outstanding customer service – for either good reasons or bad. Examples given included Eircom, Ryanair, Car Service, City Jet, Skerries Hospitality (pubs/restaurants) Evaluate the cost of change – inflexibility and elasticity of customer movement – particularly relevant for high value, low margin business. When does good customer service make you money ? Lose 1 customer in retail banking. Lifetime banking requirement = 30K PA x 40 years = €3,144,588 (4% CAG) Margin to the bank on this activity = 100 BP = €31,445 Lose 1 customer in Corporate Banking 10 years turnover = €10,000,000 x 100 BP = €100,000
  • Stats 10% of uncomplaining customers with a complaint will ever by from you. 20% of complaining customers with an unresolved complaint 90% of complaining customers whose complaint is resolved.
  • John Murtagh Grad Dip Notes

    1. 1. What is Customer Service Chapter 1
    2. 2. Managing Customer Service “A Customer is the most important visitor on our premises. He is not dependent on us; we are dependent on him. He is not an interruption in our work, he is the purpose of it. He is not an outsider in our business, he is part of it. We are not doing him a favour by serving him; he is doing us a favour by giving us an opportunity to do so”. Mahatma Gandhi
    3. 3. Objectives <ul><li>Understand the topic </li></ul><ul><li>Learning methodology </li></ul><ul><li>Understanding Satisfaction </li></ul><ul><li>Why is excellent customer service rare? </li></ul><ul><li>5 Needs of every customer </li></ul><ul><li>Case study </li></ul>
    4. 4. Understanding the Topic “ Any instance when a customer comes in contact with some aspect of your organization and has an opportunity to form an impression about the quality of service and/or product you provide.” “ customer service is the ability of an organization to constantly and consistently give the customer what they want and need ” “ customer service is any contact, whether active or passive, between a customer and a company, that causes a negative or positive perception by a customer. ”
    5. 5. What is Customer Service? <ul><li>The average customer service provider doesn’t know!! </li></ul><ul><ul><li>Customer service is anything we do for the customer that enhances the customer experience </li></ul></ul><ul><ul><li>The challenge is to know your customer and strive to meet their expectations </li></ul></ul>
    6. 6. Understanding Customer Satisfaction <ul><li>Customer satisfaction is the customer’s overall feeling of contentment with a customer interaction </li></ul><ul><li>Customer satisfaction recognises the difference between customer expectations and customer perceptions </li></ul>
    7. 7. Examples of Customer Service <ul><li>Free car wash with a fill-up </li></ul><ul><li>Calling the customer by name </li></ul><ul><li>Easy return policy </li></ul><ul><li>On-time deliveries </li></ul><ul><li>Well explained instructions </li></ul><ul><li>Suggesting a less expensive option </li></ul><ul><li>Assisting the customer carry out their purchases </li></ul>
    8. 8. Why is excellent customer service rare? <ul><li>It requires spending money & taking action </li></ul><ul><li>It is a lot more than simply having the right attitude or being a people person – it requires skills development </li></ul><ul><li>Organisations must determine the right level of customer service – procedures and strategies must be current. </li></ul><ul><li>Employees need to be empowered to make decisions that benefit customers and have the right attitude </li></ul><ul><li>Measure Customer satisfaction periodically </li></ul><ul><li>Become a better Customer ourselves </li></ul>
    9. 9. Information Technology <ul><li>The use of technology and current information systems greatly enhances the provision of excellent customer service </li></ul><ul><li>The challenge is for management to utilise the technology to provide staff with relevant data and information </li></ul><ul><li>Process and procedures </li></ul><ul><li>Quality manual </li></ul><ul><li>Customer details </li></ul>
    10. 10. Five needs of every customer <ul><li>Service </li></ul><ul><ul><li>The appropriate level of service for their purchase </li></ul></ul><ul><li>Price </li></ul><ul><ul><li>Efficient use of resources </li></ul></ul><ul><li>Quality </li></ul><ul><ul><li>Customers are less likely to stress over price for a higher quality item </li></ul></ul><ul><li>Action </li></ul><ul><ul><li>Solve their problem </li></ul></ul><ul><li>Appreciation </li></ul><ul><ul><li>Say thank you! </li></ul></ul>
    11. 11. 10 step plan <ul><li>The company is you – take responsibility </li></ul><ul><li>Remember your own experiences </li></ul><ul><li>No discouraging words </li></ul><ul><li>You have enough time </li></ul><ul><li>Allow them change their mind </li></ul><ul><li>Cherish complaints </li></ul><ul><li>The customers problem is your problem </li></ul><ul><li>How am I doing? </li></ul><ul><li>Make happy endings… </li></ul><ul><li>Say thanks </li></ul>
    12. 12. External and Internal Customers <ul><li>External Customers are the customers we do business with outside of our organisation </li></ul><ul><li>Internal Customers are the people within our organisation at all levels who help us provide the service to the External Customer </li></ul><ul><li>Management of the organisation has an important role in creating an environment that recognises the importance of the Internal Customer </li></ul>
    13. 13. External and Internal Customers <ul><li>It is Managements role to create an environment where all members of staff within an organisation perceive themselves as part of the ONE TEAM </li></ul><ul><li>They may not have direct External Customer interface but they support those within the organisation who do </li></ul>
    14. 14. External and Internal Customers <ul><li>A team with the goal of providing excellent Customer Service to all customers both External and Internal will create a common vision of customer service and make it a reality with real improved business opportunities </li></ul>
    15. 15. Customer Attributes <ul><li>Each customer is unique. Identifying customer attributes will allow an organisation to better understand ‘who” the customers are. They can be categorised according to: </li></ul><ul><ul><li>Demographic attributes </li></ul></ul><ul><ul><li>Psychographic attributes </li></ul></ul><ul><ul><li>Firmographic attributes </li></ul></ul>
    16. 16. Customer Attributes <ul><li>Demographic: </li></ul><ul><ul><li>Age profile </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Marital status </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Occupation </li></ul></ul><ul><ul><li>Ethnic background </li></ul></ul><ul><ul><li>Religion etc </li></ul></ul>
    17. 17. Customer Attributes <ul><li>Psychographic: </li></ul><ul><li>Lifestyle </li></ul><ul><li>Needs </li></ul><ul><li>Attitudes </li></ul><ul><li>Culture </li></ul><ul><li>Social class </li></ul><ul><li>Family influences </li></ul><ul><li>Political affiliation etc </li></ul>
    18. 18. Customer Attributes <ul><li>Firmographic: </li></ul><ul><li>How many employees a company has </li></ul><ul><li>Business sector </li></ul><ul><li>Hours of operation </li></ul><ul><li>Turnover </li></ul><ul><li>Profit level </li></ul><ul><li>Investment </li></ul>
    19. 19. Cost of Losing a Customer <ul><li>It takes very little effort to lose a customer. When we lose a customer to a competitor several import situations occur: </li></ul><ul><ul><li>We lose revenue </li></ul></ul><ul><ul><li>Loss of reputation </li></ul></ul><ul><ul><li>Loss of future business opportunities with that customer </li></ul></ul><ul><ul><li>Loss of employment for employees </li></ul></ul><ul><ul><li>Dissatisfied customers share their experience with their friends, colleagues, peers etc. So the impact of losing one customer can have a ripple affect </li></ul></ul>
    20. 20. Writing Compliment and Complaint Letters <ul><li>All letters should include your name, address, home and work number telephone numbers, and account number if appropriate </li></ul><ul><li>Make the letter brief and to the point. </li></ul>
    21. 21. Writing Compliment and Complaint Letters <ul><li>Complimentary letter: </li></ul><ul><ul><li>Include specific facts about the good customer situation, include the name of the person who provided the service, the date of the interaction, and what please you about the service provided </li></ul></ul><ul><ul><li>Keep a copy on file for future reference </li></ul></ul><ul><ul><li>File for Future Reference </li></ul></ul>
    22. 22. Writing Compliment and Complaint Letters <ul><li>Complaint Letter: </li></ul><ul><ul><li>Detail the facts about bad customer interface situation </li></ul></ul><ul><ul><li>Include the date and place of purchase, and information about the product or service </li></ul></ul><ul><ul><li>State exactly how you would like the situation resolved and when you expect to see the resolution implemented </li></ul></ul>
    23. 23. Review <ul><li>What is the definition of customer service? </li></ul><ul><li>List 5 examples of customer service </li></ul><ul><li>What are the 5 needs that every customer has </li></ul><ul><li>Explain the concept of External and Internal customers </li></ul><ul><li>Customer Attributes – </li></ul><ul><ul><ul><ul><li>Demographic information </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Psychographic information </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Firmographic information </li></ul></ul></ul></ul>