15 YOUR EXTERNAL AND INTERNAL CUSTOMERS Mc GrawHillIrwin

15 YOUR EXTERNAL AND INTERNAL CUSTOMERS Mc. Graw-Hill/Irwin Copyright © 2010 by the Mc. Graw-Hill Companies, Inc. All rights reserved.

Learning Objectives l l l Explain how to determine what customers really want. Define customer service. Describe the internal customer. List the two simplest principles of customer service. Give examples of issues in customer service. 2

Learning Objectives l l Compare and contrast ways to handle a difficult customer. Explain the significance of going the extra mile. List ways to use strong ethics in customer service. Explain the moral of the Poor George story and how it relates to customer service. 3

What do Customers Really Want l High-quality customer service is important for three reasons: – – – Greater competition. The growth of services in the U. S. over the past few decades. Keeping customers happy and loyal simply makes good economic sense. 4

The Internal Customer l Internal customer (employees) – – – The person who depends on other people in the company to provide services and products to the external customer. Usually does not walk away when the service is bad. Treating them right is crucial to the overall success of the business. 5

The Two Simplest Principles of Customer Service l Two principles while dealing with customers: Find out what the customer needs Do whatever necessary to satisfy those needs 6

The Two Simplest Principles of Customer Service Figure 15. 1 - The Customer’s Needs — Basic Human Needs 7

Issues in Customer Service l Your customers and your attitude – – – Many business people have the attitude that customers exist only for their benefit. Customers should always be treated the same way as they are treated the first time. They should not be taken for granted. 8

Issues in Customer Service l Delivering bad news – Bad news skills is necessary to deliver bad news to customers but still retain their business and goodwill. – Most customers do not prefer hearing the word ‘policy’ - one of the weakest refusals. 9

Issues in Customer Service Figure 15. 2: Giving a Customer Bad News 10

Issues in Customer Service l Encouraging complaints – – – In some way, every customer has a problem. Learn to focus on the problem. Don’t rely on being told what the problem is. Most customers are “nice” customers who don’t complain, but respond by taking their business elsewhere. Customer complaints are necessary and should be encouraged. 11

Issues in Customer Service l A complaint is an opportunity to improve. – – Emphasis on listening implies that it’s a customerfocused business. Make complaining easy for the customer. Reward customers who complain. Most importantly, the complaints should be taken care of. 12

Handling the Difficult Customer l Though customers may be wrong, they may have to be treated as though they are correct. – This requires self-discipline and courage. 13

Going the Extra Mile l l A company gives customers small extra products or services as a way of showing appreciation for their business. It nearly always pays for itself. 14

Using Strong Ethics l l Acting ethically is essential in dealings with customers and would-be customers. Employees and managers must bear in mind the ethical issues when considering overall needs of their company. 15

Who is Running the Business l l Limits should be set on the extent to which a customer is allowed to run the business. Regardless of how important the customer is, he or she must never be allowed to undermine company decisions. 16

Poor George Story l l This story illustrates the perils of letting the customer eventually run your business The moral of the story: – – Respect customers. Give them the highest-quality service, but never let them run the business. 17

Strategies for Success l Establish a bond with the customer: 1. 2. 3. 4. Understand the customer’s real needs. If your customer is another business, learn about that business. Provide exceptional service. Avoid taking your special relationship for granted. 18

Strategies for Success l Support the customer’s self-esteem: 1. 2. 3. 4. 5. Put the customer at ease. Put yourself in the customer’s place. Make the customer feel understood. Make the customer feel important. Praise the customer appropriately. 19

Strategies for Success l Handle the difficult customer professionally: 1. 2. 3. 4. 5. 6. Let the customer vent. Get the facts. Be sure you understand the customer’s feelings. Suggest a solution. End positively. Don’t expect to win them all. 20