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customer service ch01
- 1. © 2012 byRobert W. Lucas Chapter 1:The Customer ServiceChapter 1:The Customer Service ProfessionProfession
- 2. 22 © 2012 byRobert W. Lucas Learning OutcomesLearning Outcomes • 1-1: Define customer service.1-1: Define customer service. • 1-2: Describe factors that have impacted the1-2: Describe factors that have impacted the growth of the service sector in the Unitedgrowth of the service sector in the United States.States. • 1-3: Identify the socioeconomic and1-3: Identify the socioeconomic and demographic changes that have influenceddemographic changes that have influenced customer servicecustomer service..
- 3. 33 © 2012 byRobert W. Lucas Learning OutcomesLearning Outcomes • 1-4: Recognize the changes in consumer1-4: Recognize the changes in consumer behavior that are impacting service.behavior that are impacting service. • 1-5: List the six major components of a1-5: List the six major components of a customer-focused environment.customer-focused environment. • 1-6: Explain how some companies are1-6: Explain how some companies are addressing the changes impacting the serviceaddressing the changes impacting the service sector.sector.
- 4. 44 © 2012 byRobert W. Lucas What is Customer Service?What is Customer Service? • Define The ability of knowledgeable, capable and enthusiasticThe ability of knowledgeable, capable and enthusiastic employees to deliver products and services to internal andemployees to deliver products and services to internal and external customersexternal customers • What is the service industry? – The definition of customer service really depends on the typeThe definition of customer service really depends on the type of businessof business – A service industry is one that engaged in service delivery,A service industry is one that engaged in service delivery, rather than working with productsrather than working with products – ProductProduct » Something produced or tangibleSomething produced or tangible
- 5. 55 © 2012 byRobert W. Lucas Customer-Focused OrganizationCustomer-Focused Organization • Define A company that focused and spends effort by insuring great service.A company that focused and spends effort by insuring great service. • Characteristics of a customer focused organization They have internal customers (for example, peers, co-workers, bosses,They have internal customers (for example, peers, co-workers, bosses, subordinates, and people from other areas of their organization) and/orsubordinates, and people from other areas of their organization) and/or external customers (for example, vendors, suppliers, various telephoneexternal customers (for example, vendors, suppliers, various telephone callers, walk-in customers, and other organizations, others not fromcallers, walk-in customers, and other organizations, others not from within the organization)within the organization) Their focus is on determining and meeting the needs of customers whileTheir focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special. Information,treating everyone with respect and as if they were special. Information, products, and services are easily accessible by customers. Policies are inproducts, and services are easily accessible by customers. Policies are in place to allow employees to make decisions in order to better serveplace to allow employees to make decisions in order to better serve customerscustomers
- 6. 66 © 2012 byRobert W. Lucas Management and systems support and appropriately rewardManagement and systems support and appropriately reward employee efforts to serve customersemployee efforts to serve customers Reevaluation and quantitative measurement of the wayReevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessarybusiness is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to thechanges and upgrades to deliver timely quality service to the customercustomer Continual benchmarking or comparison with competitors andContinual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness andrelated organizations helps maintain an acute awareness and implementation of best service practices by the organizationimplementation of best service practices by the organization The latest technology is used to connect with and provideThe latest technology is used to connect with and provide service to customers, vendors, or suppliers and to supportservice to customers, vendors, or suppliers and to support business operationsbusiness operations They build relationships through customer relationshipThey build relationships through customer relationship management (CRM) programsmanagement (CRM) programs
- 7. 77 © 2012 byRobert W. Lucas Customer Service HistoricallyCustomer Service Historically When dealing with customers, it’s not about you!When dealing with customers, it’s not about you! • The service sectorThe service sector By census bureau includes transportation, retail, wholesaleBy census bureau includes transportation, retail, wholesale • Historical customer serviceHistorical customer service – Cottage industries:Cottage industries: Cottage industries included peopleCottage industries included people starting businesses from their homestarting businesses from their home – Shift to service:Shift to service: We are shifting to a service economy,We are shifting to a service economy, that is, one that relies on services rather than productionthat is, one that relies on services rather than production of productsof products
- 8. 88 © 2012 byRobert W. Lucas Growth of Service SectorGrowth of Service Sector • Job Growth:Job Growth: Jobs in service are expected to grow while goodsJobs in service are expected to grow while goods producing occupations are expected to shrinkproducing occupations are expected to shrink • EconomyEconomy – Quantity :Quantity :Growth is projectedGrowth is projected – Distribution of jobs:Distribution of jobs: » Telecommuting as a trendTelecommuting as a trend » More training and technology providedMore training and technology provided » Jobs may be more centered in major metropolitan areasJobs may be more centered in major metropolitan areas – Quality of jobsQuality of jobs » Better paying jobs on the riseBetter paying jobs on the rise » Service sector tends to pay more than goods-producingService sector tends to pay more than goods-producing » Different skills are neededDifferent skills are needed » Education is neededEducation is needed
- 9. 99 © 2012 byRobert W. Lucas Societal Factors Affecting CustomerSocietal Factors Affecting Customer ServiceService • Global economic shiftGlobal economic shift • Shifts in populationShifts in population • Increased technology efficiencyIncreased technology efficiency • GlobalizationGlobalization • DeregulationDeregulation • GeopoliticalGeopolitical
- 10. 1010 © 2012 byRobert W. Lucas Societal Factors Affecting CustomerSocietal Factors Affecting Customer ServiceService • White Collar WorkersWhite Collar Workers • Women entering workforceWomen entering workforce • DiversityDiversity • Older workersOlder workers • E-commerceE-commerce
- 11. 1111 © 2012 byRobert W. Lucas Consumer Behavior ShiftsConsumer Behavior Shifts • New mindsetsNew mindsets • ExpectationsExpectations • Customer PreparationCustomer Preparation
- 12. 1212 © 2012 byRobert W. Lucas The Components of a customer serviceThe Components of a customer service environmentenvironment • The CustomerThe Customer • Organizational CultureOrganizational Culture • Human ResourcesHuman Resources • Products and deliverablesProducts and deliverables • Delivery systemsDelivery systems • ServiceService
- 13. 1313 © 2012 byRobert W. Lucas How to address the customer serviceHow to address the customer service changeschanges • Learning organizationsLearning organizations • The small business perspectiveThe small business perspective
Editor's Notes
- #3 This chapter introduces the concept of customer service to the student.
- #4 This chapter introduces the concept of customer service to the student.
- #5 LO 1-1 Defining customer service The ability of knowledgeable, capable and enthusiastic employees to deliver products and services to internal and external customers Service industry The definition of customer service really depends on the type of business A service industry is one that engaged in service delivery, rather than working with products. Product Something produced or tangible
- #6 LO 1-1 Customer focused organizations A company that focused and spends effort by insuring great service Characteristics They have internal customers (for example, peers, co-workers, bosses, subordinates, and people from other areas of their organization) and/or external customers (for example, vendors, suppliers, various telephone callers, walk-in customers, and other organizations, others not from within the organization). Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if they were special. Information, products, and services are easily accessible by customers. Policies are in place to allow employees to make decisions in order to better serve customers. Management and systems support and appropriately reward employee efforts to serve customers. Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to the customer. Continual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness and implementation of best service practices by the organization. The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to support business operations. They build relationships through customer relationship management (CRM) programs.
- #8 LO 1-1 Service sector By census bureau includes transportation, retail, wholesale Historically customer service has always been around Cottage industries included people starting businesses from their home We are shifting to a service economy, that is, one that relies on services rather than production of products
- #9 LO 1-2 Jobs in service are expected to grow while goods producing occupations are expected to shrink Economy is affecting jobs Overall quantity Growth is projected Distribution of jobs among industries, occupations, geographic areas and different size business Telecommunuting as a trend More training and technology provided Jobs may be more centered in major metropolitan areas Quality of jobs, measured by wages, security and opportunities for development Better paying jobs on the rise Service sector tends to pay more than goods producing Different skills are needed Education is needed
- #10 LO 1-3 Societal Factors Affecting Customer Service Global economic shift Economic indicators have been in turmoil, creating new needs People tend to cut costs Shifts in Population and labor force Higher population growth in some countries Increased Technology Efficiency New machines can work longer and faster Technology advances can lead to increase in some jobs, but decrease in others Globalization of the economy Trade barriers came down Offshoring and outsourcing as a result-can help increase profit Deregulation The removal of governmental restrictions on an industry Geopolitical Political unrest, conflicts, wars and embargos Limit access to product and that global market Trade agreements can assist companies in finding cheaper labor in other countries China’s increased need for services and products
- #11 LO 1-3 More white collar workers Less farming, mining so more people work at traditional 9-5 jobs More women entering the workforce Traditional shifting of roles Women’s incomes have risen but still not equal to the pay of men doing the same job Diverse workforce Number of people from different cultures entering workforce Traditions, customs are different Older workers entering workforce Median age is rising because of baby boomers Many older people working traditionally “younger” jobs Ecommerce Growth of online transactions
- #12 LO 1-4 Different mindset due to credit card debt Cutting back approach Expectation of quality service Enhanced customer preparation Better educated and able to do research before buying a product or service
- #13 LO 1-5 Components of a customer service environment The customer Internal customers are people who work for the organization, and your job is to provide information to them; coworkers, employees of other departments, etc. External customers are the current or potential customers of a company Organizational culture An element of an organization that a customer encounters Human resources The process of recruiting, selecting, training and retaining the best people Products and deliverables The actual tangible or intangible the customer receives Quality and quantity of product should meet expectations Delivery systems Refers to how the product is delivered to the customer Service How the customer is treated
- #14 LO 1-6 Addressing the changes Learning organizations is a company who uses knowledge, education and training to continue growth and development of their organization. Small business perspective Customer service is usually most important to small businesses due to smaller budgets