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Customer Service Excellence - Lecture 1

Customer Service Excellence - Lecture 1






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Customer Service Excellence - Lecture 1 Customer Service Excellence - Lecture 1 Presentation Transcript

  • Customer Service Excellence Week One Katherine Mutter and Mary Hedderman
  • Learning Objectives
    • To demonstrate knowledge and understanding of the importance of customer service excellence in all contexts. (b2b, b2c, services, nfp and sme)
    • To solve complex customer service problems focussing on key stakeholders
    • To critically analyse, evaluate and synthesise information to explore key issues in businesses’ aspirations to adopt a customer-centric philosophy.
    • Customer service excellence? 2R
    • Fedex
    • Banking customer service
  • Value-Based Marketing
    • “ With today’s fierce global competition, unless a business can create a differential advantage, in terms of either low total cost or a superior product or service that command a price premium from customers, it will not earn an adequate return.”
    • Doyle Value-Based Marketing (2004)
  • Stakeholders
    • Employees
    • Customers
    • Intermediaries
    • Suppliers
    • Partners
    • Investors
    • Government
    • Regulators
    • Pressure groups
    • Community
    • Media
               Key  Relative Weighting
  • The General Publics Pressure Group Publics Government Publics Media Publics Financial Publics Community Publics Internal Publics Kotler’s 7 Types of Publics
  • Different business contexts
    • B2C
    • B2B
    • NFP
    • Charity
    • Public Sector
    • Services
  • The Marketing Concept 2 D Jobber 2006 Marketing Concept The achievement of corporate goals through meeting and exceeding customer needs better than the competition Customer orientation Corporate activities are focused upon providing customer satisfaction Integrated effort All staff accept the responsibility for creating customer satisfaction Goal achievement The belief that corporate goals can be achieved through customer satisfaction
  • Production orientation Increase production Cost reduction and control Make profit through volume “ any colour as long as it’s . . . .” Product orientation Quality is all that matters Improve quality levels Make profit through volume “ Look at the quality of that paint work” Sales orientation Aggressive sales and promotion Profit through quick turnover of high volume “ You’re keen on the black – what if I include a sun roof” Marketing orientation Integrated marketing Defining needs in advance of production Profit through customer satisfaction and loyalty “ Let’s find out if they want black and will pay more”
  • Production Orientation 7 D Jobber 2006 Production capabilities Manufacture product Aggressive sales effort Customers
  • Marketing Orientation 8 D Jobber, Principles and Practice of Marketing, McGraw-Hill 2006 Potential market opportunities Marketing products and services Customer needs Customers
  • Performance measurement - Why Measure ?
    • A few maxims …
      • ‘ You can’t manage what you can’t measure !’
      • ‘ What gets measured, gets done !’
    • And, of course …
      • We operate in an increasingly tough marketing environment
      • Need to continuously assess and deliver superior/added value
      • We have limited resources and need to use them wisely
      • We have a number of stakeholders interested in our progress
      • We need to know if we are doing things right (efficiency) and doing the right things (effectiveness)
    • The real value of measurement comes from the action which follows it !!!
    ‘ If you can’t measure it, you can’t do it!’
  • Efficiency and Effectiveness 9 D Jobber, Principles and Practice of Marketing, McGraw-Hill 2006
  • McKinsey 7S framework Strategy Style Systems Structure Staff Skills Source: McKinsey 7S framework Shared purpose (Waterman,Peters and Phillips 1981)
  • Creating Value for the customer
    • What do you value when you shop for clothes?
    • A different product
    • Expert knowledge/advice
    • Availability of product
    • Atmosphere – music, ‘the scene’/the experience
    • Brands
    • Quality
  • Creating Value for the customer
    • What do you value when we go to a fast food restaurant ? (i.e.) what are you looking for?
    • Choice
    • Speed of service without compromising quality
    • Cleanliness/smell
    • Drive thru – choice of delivery
    • ‘ The right price’
    • Clear menu
    • Not feeling rushed
    • Open all hours
    • Packaging making it easy to eat
    • Good staff
    • Not too busy /chaotic
    • Atmosphere
    • Hot food
    • Healthy foods
    • Kids activity
  • Creating Customer Value
    • Product benefits
    • Service benefits
    • Relational benefits
    • Image benefits
    • Monetary costs
    • Time costs
    • Energy costs
    • Psychological costs
    16 D Jobber, Principles and Practice of Marketing, McGraw-Hill 2006 Positive Negative Customer value Perceived benefits Perceived sacrifice
  • Group Discussion
    • What does “value” mean to you? Have our perceived values changed?
    • Is that the same for all ages, genders, nationalities, business contexts?
  • Satisficers and maximisers
    • ‘ According to Barry Schwartz (2005), the world is divided into two types of consumer: maximizers and satisficers .
    • A maximizer is a consumer who always tries to get the best possible deal they can, whereas a satisficer is a consumer who will be content when they find something which is 'good enough'.
    • Being a satisficer may sometimes be rational. Information has a cost involved. On large purchases, like a car, we do detailed research, take test-drives and read relevant magazines. On smaller purchases, we often just ask our friends who they use and if they are happy. In the most extreme case, the cost of researching the best toothbrush is not worth the benefit.’
    • Tom Lees, Adam Smith Institute (2007)
  • Sources of competitive advantage
    • Superior product benefit
    • Perceived advantage
    • Low-cost operations
    • Legal advantage
    • Superior contacts
    • Superior knowledge
    • Scale advantages
    • Offensive advantages
    • Source: Davidson (2004)
  • Group Activity
    • Think of a product that you bought recently – were there any surprises/disappointments. Any recommendations you would make to the company?
  • An Effective Marketing Mix – the tactics 18 D Jobber, Principles and Practice of Marketing, McGraw-Hill 2006 Effective marketing mix Matches customer needs Creates a competitive advantage Well balanced Matches corporate resources
  • Marketing Mix and Customer Needs 19 D Jobber, Principles and Practice of Marketing, McGraw-Hill 2006 Customer needs Key customer requirements Competitive advantage Marketing mix
  • Marketing Mix and Customer Needs
    • Performance
    • Availability
    • Reliability
    • Durability
    • Productivity
    • Self-image
    • Quiet life
    • Pleasure
    • Convenience
    • Risk reduction
    20 D Jobber, Principles and Practice of Marketing, McGraw-Hill
    • Product
    • Price
    • Promotion
    • Place PLUS
    • People
    • Process
    • Physical evidence
    Marketing mix Competitive advantage Psychological Economic Customer needs
  • D Boddy (2008) – Management an introduction
    • “ Managers in any business can only carry out their role effectively if they receive accurate and timely information…Technological developments make it possible for managers to have more information about their business, and about external developments than they have ever had.”
  • Data Mining – Customer analysis
    • Customer acquisition
    • Customer retention and loyalty
    • Customer abandonment
    • Market basket analysis
    • Solomon/marshall/stuart (2008) p 112