Customer Service


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Customer Service - Going beyond satisfaction. It is no longer enough to have merely satisfied customers. One has to look beyond satisfaction in order to retain customers in today's world.

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Customer Service

  1. 1. Customer Service: Going Beyond Satisfaction A Presentation by Rajiv Bajaj
  2. 2. <ul><li>… are among the growing group of people who are planning to join a service oriented industry which is dedicated to meet the needs of others. </li></ul>YOU
  3. 3. <ul><li>Service expectations today are very high. </li></ul><ul><li>Consumer awareness of service standards has increased tremendously. </li></ul>
  4. 4. Who Is A Customer ?
  5. 5. The Internal Customer <ul><li>Internal customers are the people who work for your company; and </li></ul><ul><li>They depend on you and the work you do in order to complete their own tasks. </li></ul><ul><li>Employees, Team Members, Colleagues, etc. </li></ul>
  6. 6. The External Customer <ul><li>External customers are outside your organization. </li></ul><ul><li>These are the people that buy your goods and services. </li></ul>
  7. 7. <ul><li>“ A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. </li></ul><ul><li>He is not an interruption in our work. He is the purpose of it. </li></ul><ul><li>He is not an outsider in our business. He is part of it. </li></ul><ul><li>We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.” </li></ul><ul><li> Mahatma Gandhi </li></ul>
  8. 8. What do Customers Want?
  9. 9. Customers’ Expectations <ul><li>Be treated with courtesy and respect. </li></ul><ul><li>To ask questions when they do not understand. </li></ul><ul><li>To timely service, whether in person, by phone, or in writing. </li></ul>
  10. 10. <ul><li>To receive service from knowledgeable, competent & cooperative staff. </li></ul><ul><li>To complete, accurate, reliable information & feedback. </li></ul><ul><li>To receive value for their money. </li></ul><ul><li>These are also the RIGHTS of a customer !! </li></ul>
  11. 11. What Is Service? <ul><li>Difficult to define accurately because… </li></ul>
  12. 12. <ul><li>It is not tangible. Can’t be measured / weighed. </li></ul>
  13. 13. <ul><li>It is more emotional than rational. </li></ul>
  14. 14. <ul><li>You can sell it, but you cannot give a customer a sample to take back & show to others. </li></ul>
  15. 15. <ul><li>Having given it, the customer may not acquire anything except a good experience ! </li></ul>
  16. 16. Service Quality <ul><li>Different viewpoints of service quality exist. </li></ul><ul><li>Difficult to define in terms on which all can agree. </li></ul><ul><li>Some views on quality… </li></ul>
  17. 17. Quality as… Excellence
  18. 18. Amount of Quality High Low
  19. 19. Subjective Perception <ul><li>Good </li></ul><ul><li>Bad </li></ul>
  20. 20. Value Based <ul><li>Perceived price relative to quality. </li></ul>Quality Price
  21. 21. Five Dimensions of Service Quality <ul><li>Normally judged on five dimensions: </li></ul><ul><li>Tangibles </li></ul><ul><li>Reliability </li></ul><ul><li>Responsiveness </li></ul><ul><li>Assurance </li></ul><ul><li>Empathy </li></ul>
  22. 22. Tangibles <ul><li>Physical aspects of the service that we can see or with which we interact. </li></ul><ul><li>E.g. Physical appearance of the facilities. </li></ul><ul><li>Equipment. </li></ul><ul><li>Appearance & uniform of employees. </li></ul><ul><li>Communication material / brochure etc that is provided etc. </li></ul>
  23. 23. Reliability <ul><li>Ability of service personnel to perform the promised service accurately and consistently. </li></ul>
  24. 24. Responsiveness <ul><li>Employees’ willingness to help customers and their promptness in providing service. </li></ul>
  25. 25. Assurance <ul><li>A catch-all quality dimension that involves the faith we have in service personnel. </li></ul><ul><li>Do they seem well trained? </li></ul><ul><li>Are they knowledgeable? </li></ul><ul><li>Do they seem trustworthy? </li></ul>
  26. 26. Empathy <ul><li>The part of quality that is heartfelt. </li></ul><ul><li>The quality element that shows the service personnel care about you and understand your frustrations and needs. </li></ul><ul><li>Involves setting operating hours for the convenience of the guests, not management or employees. </li></ul>
  27. 27. <ul><li>Includes caring about your waiting times, and fairness in waiting line systems. </li></ul><ul><li>The element of service that makes us feel special, when service providers recognise that we are individuals. </li></ul><ul><li>The care and individualized attention that is (or is not) provided to us. </li></ul>
  28. 28. Evaluating Service <ul><li>Customers compare their prior expectations of the service to their “during service” judgments of five service quality elements – their overall quality perception of “actual quality”. </li></ul><ul><li>The result of this comparison of expected quality is the customer’s level of satisfaction. </li></ul>
  29. 29. Quality & Customer Satisfaction <ul><li>Comparison - Actual Service Vs Expectations : </li></ul><ul><li>The three possible outcomes - </li></ul><ul><li>Actual Service > Expectations = </li></ul><ul><li>2. Actual Service = Expectations = </li></ul><ul><li>3. Actual Service < Expectations = </li></ul>
  30. 30. <ul><li>Focusing your entire organization - </li></ul><ul><li>Systems, people, processes, facilities and information – </li></ul><ul><li>towards meeting the customer’s needs, and building lasting relationships. </li></ul><ul><li>Excellent customer service requires thinking outside the lines we have drawn around us. </li></ul>What is Customer Service ?
  31. 32. <ul><li>Any point in the interaction during which the customer has an opportunity to gain or form an impression of the service provided by the company. </li></ul><ul><li>Research has shown that it takes on average 12 shining moments of truth to compensate for one dull moment of truth. </li></ul>
  32. 33. Moment of Joy <ul><li>When you not only meet, but exceed the expectations of the customer. </li></ul>
  33. 34. Moment of Misery <ul><li>When you fail to give good service to the customer. </li></ul>
  34. 35. The Reactions <ul><li>Good & bad service can arouse powerful emotions. </li></ul><ul><li>Surprising how long these reactions often last. </li></ul><ul><li>Results may be remarkable or disastrous ! </li></ul>
  35. 36. <ul><li>Opportunity to retain or lose customers & gain or lose several more. </li></ul><ul><li>Someone who has had a bad customer experience will tell at least 10 other people. </li></ul>
  36. 37. Why Do Customers Leave ? <ul><li>Indifferent service is the biggest cause. </li></ul>Leave Statistics Source: U.S. News & World Report
  37. 38. Some Startling Statistics <ul><li>Only 4% of customers actually complain. </li></ul><ul><li>Around 75% of the complaining customers will do business with you again, if you act quickly. </li></ul><ul><li>It costs 5-6 times more to attract new customers than to keep old ones. </li></ul>
  38. 39. <ul><li>Providing excellent customer service starts with a commitment from the top and flows throughout the company. </li></ul><ul><li>In a quality organisation, employees know that the customer is the reason for the organisation's existence. </li></ul><ul><li>Delivering excellent customer service is a never-ending search, as is thinking outside of the box. </li></ul>Customer Service - Importance
  39. 40. Types of Customer Service
  40. 41. Reactive <ul><li>Starts after receiving a complaint. </li></ul><ul><li>Moves on to solving the complaint. </li></ul><ul><li>Usually is a one time activity. </li></ul><ul><li>Basically we wait till the time complaints come. </li></ul>
  41. 42. Proactive <ul><li>Starts at the first contact with the customer. </li></ul><ul><li>Makes buying a pleasant experience. </li></ul><ul><li>Reduces the waiting time. Delivers service more efficiently. </li></ul><ul><li>Increases customer retention. Lesser complaints. </li></ul><ul><li>The Bottom Line - does wonders for you and your company. </li></ul>
  42. 43. Customer Service Attitude
  43. 44. Customer Service Attitude <ul><li>Customer Service is </li></ul><ul><li>80% Attitude </li></ul><ul><li>& </li></ul><ul><li>20% Technique </li></ul>
  44. 45. The Choice is YOURS OR
  45. 46. What is Customer Service Attitude? <ul><li>“ It is the inherent ability to look at every interaction with the customer as an opportunity for customer delight and service excellence” </li></ul>
  46. 47. Attitude Checklist <ul><li>What attitudes assist in providing good service? </li></ul><ul><li>Enjoy helping people & handle people well. </li></ul><ul><li>Care for your customers. </li></ul><ul><li>Give fair and equal treatment to all. </li></ul><ul><li>Be understanding of people with special needs. </li></ul>
  47. 48. The Ten Commandments of Customer Service
  48. 49. 1. Know Who The Boss Is <ul><li>The Customer is King. </li></ul><ul><li>Never forget that the customer pays your salary and makes your job possible. </li></ul><ul><li>You are in business to service customer needs. </li></ul>
  49. 50. <ul><li>You can only do that if you know what it is your customers want. </li></ul><ul><li>Listen well to your customers - they let you know what they want. </li></ul><ul><li>Once you know that, you can provide better service. </li></ul>
  50. 51. 2. Be A Good Listener <ul><li>Take the time to identify customer needs – </li></ul><ul><li>Ask questions. Concentrating on what the customer is really saying. </li></ul><ul><li>Listen to their words, tone of voice, body language, and more importantly, how they feel. </li></ul>
  51. 52. <ul><li>Beware of making assumptions - thinking you intuitively know what the customer wants. </li></ul><ul><li>Effective listening and undivided attention are particularly important. </li></ul><ul><li>It makes the customer feel wanted and appreciated. </li></ul><ul><li>Avoid being distracted by other things. Focus on the customer before you. </li></ul>
  52. 53. 3. Identify & Anticipate Needs <ul><li>Customers don't buy products or services - they buy good feelings & solutions to problems. </li></ul><ul><li>Most customer needs are emotional rather than logical. </li></ul><ul><li>The more you know your customers, the better you become at anticipating their needs. </li></ul><ul><li>Communicate regularly so that you are aware of problems or upcoming needs. </li></ul>
  53. 54. 4. Make Them Feel Important <ul><li>Treat them as individuals. </li></ul><ul><li>Always use their name and find ways to compliment them, but be sincere. </li></ul><ul><li>People value sincerity. </li></ul><ul><li>It creates good feeling and trust. </li></ul>
  54. 55. <ul><li>Think about ways to generate good feelings about doing business with you. </li></ul><ul><li>Customers are very sensitive and know whether or not you really care about them. </li></ul><ul><li>Thank them every time you get a chance. </li></ul><ul><li>Let them know they are appreciated. </li></ul>
  55. 56. 5. Help Customers Understand Systems. <ul><li>You may have the world's best systems for getting things done. </li></ul><ul><li>But if customers don't understand them, they can get confused, impatient and angry. </li></ul><ul><li>Take time to explain how your systems work and how they simplify transactions. </li></ul><ul><li>Ensure that your systems don't reduce the human element of your organization. </li></ul>
  56. 57. 6. Appreciate The Power Of “Yes” <ul><li>Always look for ways to help your customers. </li></ul><ul><li>When they have a reasonable request, tell them that you can do it. </li></ul><ul><li>Figure out how afterwards. </li></ul><ul><li>Look for ways to make doing business with you easy. </li></ul><ul><li>Always do what you say you are going to do. </li></ul>
  57. 58. 7. Know How To Aplogise <ul><li>When something goes wrong, apologise. </li></ul><ul><li>It's easy and customers appreciate it. </li></ul><ul><li>Customers may not always be right, but the customer must always win. </li></ul><ul><li>Deal with problems immediately and let customers know what you have done. </li></ul>
  58. 59. <ul><li>Make it simple for customers to complain. </li></ul><ul><li>Value their complaints. </li></ul><ul><li>As much as we dislike it, it gives us an opportunity to improve. </li></ul><ul><li>Even if customers are having a bad day, go out of your way to make them feel comfortable. </li></ul>
  59. 60. 8. Give More Than Expected <ul><li>The future of all companies lies in keeping customers happy. </li></ul><ul><li>Think of ways to elevate yourself above the competition. </li></ul><ul><li>Consider the following: </li></ul>
  60. 61. <ul><li>What can you give customers that they cannot get elsewhere? </li></ul><ul><li>What can you do to follow-up and thank people even when they don't buy? </li></ul><ul><li>What can you give customers that is totally unexpected? </li></ul>
  61. 62. 9. Get Regular Feedback <ul><li>Encourage & welcome suggestions about how you could improve. </li></ul><ul><li>You can find out what customers think and feel about your services: </li></ul><ul><li>• Listen carefully to what they say. </li></ul><ul><li>• Check back regularly to see how things are going. </li></ul><ul><li>• Provide a method that invites constructive criticism, comments and suggestions. </li></ul>
  62. 63. 10. Treat Employees Well <ul><li>Employees = Internal customers. They need a regular dose of appreciation. </li></ul><ul><li>Thank them and find ways to let them know how important they are. </li></ul><ul><li>Treat your employees with respect and chances are they will have a higher regard for customers. </li></ul><ul><li>Appreciation stems from the top. Treating customers and employees well is equally important. </li></ul>
  63. 64. Handling Complaints
  64. 65. <ul><li>Encourage customers to complain. </li></ul><ul><li>A complaining customer gives you a chance to improve on your services. </li></ul><ul><li>Remember, a customer who complains wants redressals. </li></ul><ul><li>If handled appropriately, he will come back to you. </li></ul><ul><li>A customer who doesn’t complain is less likely to return to you. </li></ul>
  65. 66. L.E.A.R.N.
  66. 67. <ul><li>L isten </li></ul><ul><li>E mpathise </li></ul><ul><li>A pologise </li></ul><ul><li>R espond </li></ul><ul><li>N o Delay </li></ul>
  67. 68. Listen <ul><li>Listen to the complaint…. </li></ul><ul><li>Sincerely. </li></ul><ul><li>With full attention. </li></ul><ul><li>Do not interrupt. </li></ul><ul><li>Allow customer to vent. </li></ul>
  68. 69. Empathise <ul><li>Put yourself in the customer’s shoes. </li></ul><ul><li>Understand the problem from their point of view. </li></ul><ul><li>Show that you care. </li></ul><ul><li>Be SINCERE. </li></ul>
  69. 70. Apologise <ul><li>For the inconvenience caused. </li></ul><ul><li>Be sincere with the apology. </li></ul><ul><li>This is the first step to complaint redressal. </li></ul><ul><li>Also important for mending the relationship. </li></ul>
  70. 71. Respond <ul><li>Respond to the complaint. </li></ul><ul><li>Offer a solution. </li></ul><ul><li>Solutions include – Replacement, Refund, Fixing, Discount on next purchase etc. </li></ul><ul><li>If you can’t handle it, call your supervisor. </li></ul>
  71. 72. No Delay <ul><li>If a solution is possible on the spot, do NOT delay. Act now. </li></ul><ul><li>If implementation will take time, advise exact time frame. </li></ul><ul><li>Stick to the time frame. </li></ul>
  72. 73. Don’t Lose Sight of The Service-Profit Chain Good Service – Satisfied Customers Higher Sales High Revenue/ More profits Higher Incentives/Bonus to Employees Service-oriented employees
  73. 74. Questions ?