Customer Service and Consumer Protection Unit Two Page 1 of 5 App Biz
UNIT 2
CUSTOMER SERVICE
Business organisations depend on customers to buy their goods and services. Without customers, businesses cannot succeed. Giving excellent customer service plays an important part in helping business organisations keep their customers and attract new ones.
The Importance of Customer Service
All businesses need customers to buy their products and services so that they can make a profit. Businesses aim to look after customers by treating them well and meeting their needs.
Businesses need to recognise:
J The benefits of having satisfied customers – they will come back again (repeat business/loyalty); they will tell their friends and family about the place (reputation); etc.
J The costs of having dissatisfied customers – they will not return and they will tell their friends of the poor service/goods and they might then not return.
Types of customer
A customer is someone who needs or wants a particular product or service. Some business organisations have different types of customer, including:
¶ Individuals – the general public mainly shop at the supermarkets and high street stores.
¶ Other businesses – most small corner shops get their stock from wholesale organisations.
Many customers pay for goods and services, but some are non-paying, for example some health care services.
Customer Needs
Customers usually expect a business to provide some of the following:
J A range of different products and services
J Products available at the right time
J Products available at the right place
J Well packaged products
J Polite service
J Honest dealings
J Value for money
J Safety
External and Internal customers
External customers are a business organisation’s consumers or visitors. They often pay for products or services and expect to be treated well. They are the very important part to a business organisation; without customers there would be no business! They must be given the highest standards of service so that they come back again and inform others about the good service they had.
Internal customers are the people you work with, for example other employees of your organisations.
Excellent customer service in business organisations should lead to greater sales because of the benefits it brings such as:
J Satisfied customers
J More customers through repeat business and recommendations (greater market share)
J A good public image
J An edge over the competition
It is very important that all members of staff give a high level of service to each other because they are dependent on each other for customer service as a whole to be successful.
Benefits to the staff and the organisation include:
J A more pleasant place to work because of a happier and more efficient workforce
J Improved job satisfaction – enjoy working at that organisation, gives a sense of fulfilment.
J Improved chances of promotion within the organisation – if the organisation is successful then it will grow and need more staff at all levels.
J Greater co-operation and teamwork – because everyone is working towards the same goal.
Dealing with customers
In any business, you will almost certainly have contact with customers. This may be face-to-face, over the telephone or in writing. Some staff has regular contact with customers whilst others have little or no contact. All staff needs to know how to communicate with customers and use different skills in different situations.
When communicating with customers you will need to use appropriate:
J Language
J Pitch and tone of voice
J Pauses and silences
J Body language
You will also need to be able to:
J Listen and respond to customers
J Ask appropriate questions
Dealing with customers is not always about selling them something. There are many different situations in which customer service in which customer service is provided, for example:
J Providing information
J Giving advice
J Receiving and passing on messages
J Keeping records
J Providing assistance
J Dealing with problems
J Dealing with dissatisfied customers
J Offering extra services
Customers’ first impressions count in any business. The way you present yourself to customers has a direct influence on their satisfaction as well as your own job satisfaction and the future success of the organisation that employs you. You need to appreciate the importance of:
J Appropriate dress and personal hygiene
J Attitude
J Behaviour
Handling Complaints
When dealing with complaints it is important to listen to customers and to keep calm.
Most of the time dealing with customers is a rewarding and interesting experience. From time to time you may have to deal with customer complaints. They could be in writing, over the telephone or face-to-face.
When dealing with complaints you should always:
J Listen carefully to the customer
J Apologise for any inconvenience caused
J Let the customer know the matter will be fully investigated
J Try to see the problem from the customers point of view
J Keep calm and not argue with the customer
J Find a solution to the problem
J Make sure that what you promise to do gets done
J Make sure you refer to a more senior member of staff if you are unsure of what to do
Keeping customer records
Many business keep records of their customers. Creating and using up-to-date customer records gives an organisation a clear picture of its business and helps it to plan for the future.
Accurate records are an essential part of good customer service. They need to know how to:
J How to create customer records
J Find and change existing records
Legal Protection for customers
A business organisation has legal obligations to its customers. Customers need to be protected when buying goods, for instance if:
J Goods are damaged, broken or unusable
J Goods are not fit for the purpose for which they were bought
J The seller has described the goods inaccurately
Customers can complain against these problems and the following laws protect them:
J Sales of Goods Act 1979
J Trade Descriptions Act 1963/1968
J Sale and Supply of Goods Act 1994
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