3. Learning Outcomes: Customer Service Strategies
15.1 Identify how retailers can use excellent customer service as a
differentiation tool
• 15.1.1 Define customer service
• 15.1.2 Discuss the value of customer profiles in retail customer service
• 15.1.3 Categorize services offered by retailers as basic or luxury
• 15.1.4 Compare and contrast personalized and standardized service
4. Customer Service
Definition: “The assistance and advice provided by a company to those people
who buy or use its products or services”
Definition varies widely depending on understanding on basic terms “customer”
and “service”
Regardless of definition, it is dependent on act of meeting customer wants and
needs
5. Activity
• Customer service is a core component of the retail industry. Write a short
statement of less than five sentences summarizing how you would define
quality customer service. Think of this as something you might say during a
job interview if you were asked what you value as good customer service.
7. Offered Services
• Customer service, including
complimentary services offered, is one
way that retailers differentiate
themselves in a crowded marketplace
• Customer service can be a source of
enduring brand and business value
• The key is to understand your customer’s
value proposition and deliver a relevant
level of service.
8. Personalized vs. Standardized Service
Service Standardization:
• Promotes reliability, effectiveness, trust, improved economic efficiency
• Often employed in store layouts, purchasing, labeling, branding
Personalized Service:
• Method of adding value to customer choice
• Often relies on technology to more effectively and efficiently implement
new range of services
10. Learning Outcomes: Customer Evaluation Process
15.2 Explain the key components of the customer evaluation process
• 15.2.1 Define customer perception and customer expectation
• 15.2.2 Describe the main characteristics that affect service quality
perceptions
• 15.2.3 Explain the role of customer expectations in determining the value of
service perceived
11. Perception vs. Expectation
• Customer satisfaction is typically defined as the feeling that a person
experiences when an offering meets his or her expectations
• Some companies evaluate their salespeople based on how well they satisfy
their customers
Two critical ways to improve customer satisfaction
• The first is to establish appropriate expectations in the minds of customers.
• The second is to deliver on those expectations.
12. Service Quality Perceptions
Effective customer satisfaction measures have several components:
• Customer’s expectations
• Whether the organization performed well enough to meet them
• The degree of satisfaction
13. Customer Expectations
Customers will complain, though, no matter how hard firms try to meet or exceed
their expectations
A complaint record should reflect the main reason an offering failed. Typically, the
failure can be attributed to one (or more) of the following four gaps (Levy & Weitz,
2009):
1. The communication gap. Overstating the offering’s performance level, thereby
creating unrealistic expectations on the part of customers.
2. The knowledge gap. Not understanding the customer’s expectations or needs,
which then leads a company to create a product that disappoints the customer.
3. The standards gap. Setting performance standards that are too low despite what is
known about the customers’ requirements.
4. The delivery gap. Failing to meet the performance standards established for an
offering.
15. Learning Outcomes: Gap Model of Service Quality
15.3 Discuss the gap model of service quality
• 15.3.1 Outline how a retailer can close the customer expectations and
management perceptions gap
• 15.3.2 Outline how a retailer can close the management perceptions and
quality specs gap
• 15.3.3 Outline how a retailer can close the quality specs and service delivery
gap
• 15.3.4 Outline how a retailer can close the service delivery and
communications gap
• 15.3.5 Outline how a retailer can close the actual performance and
perceived service gap
16. Gap 1: Customer Expectation vs. Management
Perception
Market research: conducted to understand whether there would be any
demand for the product
Communication channels: the fewer layers between management and
customer contact, the more likely customer preferences will be incorporated
17. Gap 2: Management Perception vs. Quality
Specifications
Management may have an accurate understanding of customer
expectations but that understanding hasn’t been effectively implemented as
operating policy
● Clearly articulate service levels and business (i.e., budget) assumptions
● Develop, communicate and train to specific customer service standards
● Factor service level performance into evaluations for all related
personnel
● Measure performance and adjust resources as required to meet service
level objectives
● Monitor industry service level standards and update policy as
appropriate
18. Gap 3: Quality Specifications vs. Service Delivery
• In a performance gap situation, the issue is generally not the lack of specific
service policies but a failure to consistently and reliably meet those service
expectations
• Developing a well-structured onboarding process, providing product/service
training and cultivating a customer-centric team environment can help new
service employees get up to speed with a minimum of stress
• Validate service quality expectations and align people, processes and culture
to support those goals
19. Gap 4: Service Delivery vs. External
Communications
Quality, responsiveness and price are all important elements. What’s most important,
however, is keeping your word. That will keep customers satisfied, and ensure that you
keep your customers.
● Review communications across all touch-points, including digital (email,
website, social media and partner sites), print, and on-premise materials, to
ensure accuracy and consistency
● Implement a “reality check” review and approval process for new campaigns
and updates.
● Conduct mock customer interactions and listen in and provide coaching on
point-of-contact conversations to ensure services are being represented
realistically
● Incorporate employee input and customer reviews to make advertising real.
Similarly, incorporating actual employees and customers in advertising puts a
real face on the business.
20. Gap 5: Actual Performance vs. Perceived Service
Gap
• Occur due to service issues from gaps 1-4 or can reflect an error in the
customer’s judgement of the service received
• The customer’s perception is influenced by a range of factors including
personal experience and needs, advertising and word of mouth
• Obtaining customer feedback is the key to identifying the root cause(s) –
that is, the underlying service gap(s) – and, ultimately, closing the Customer
gap
22. Quick Review
• Define customer service
• Discuss the value of customer profiles in retail customer service
• Categorize services offered by retailers as basic or luxury
• Compare and contrast personalized and standardized service
• Define customer perception and customer expectation
• Describe the main characteristics that affect service quality perceptions
• Explain the role of customer expectations in determining the value of service perceived
• Outline how a retailer can close the customer expectations and management
perceptions gap
• Outline how a retailer can close the management perceptions and quality specs gap
• Outline how a retailer can close the quality specs and service delivery gap
• Outline how a retailer can close the service delivery and communications gap
• Outline how a retailer can close the actual performance and perceived service gap
