25: Developing effective operations: customer service

Question 1

Customer service

Answer 1

The provision of service to customers before, during and after purchase to the standard that meets customer expectations.

Question 2

Methods of meeting customer expectations:

Answer 2

• Market research.
• Put customer service as number 1 priority.
• Training.
• Use of quality assurance and quality control.
• Quality standards. Customers need to know what to expect from the organisation they are purchasing a product from. This allows them to: make comparisons between quality standards of competing businesses and make complaints when the publicised quality standards have not been met.

Question 3

Monitoring customer service:

Answer 3

• Satisfaction level surveys.
• Focus groups.
• Tracking surveys.

Question 4

Benefits of high levels of customer service:

Answer 4

• Better customer service than competitors can give a competitive advantage and lead to higher profits.
• Good customer service may help to clearly differentiate the business from the outer forms in the market.
• Slashed prices and special promotions may bring in new customers once but unless some of these customers return because of the new service they were offered, then the business is unlikely to be profitable for long.
• Good customer service is all about sending customers away happy - and this will bring them back. They will pass on positive feedback about the business to others who may then try the product for themselves.
• A good customer service reputation can become a unique selling proposition which might allow the business to successfully justify higher than average prices.