Higher Administration IT Administrative Services Outcome 2 1

Higher Administration & IT Administrative Services Outcome 2. 1 1

2 Outcome 2. 1 Explaining benefits of good and consequences of poor customer care.

3 Importance of Customer Service The most important aspect of a business. . . without good customer service there is no business!

4 The Mission Statement A mission statement is a short statement of the aims of an organisation, and how it will achieve these aims. It contains the values of the organisation eg “eco-friendly” or “fair -trade” policies. This may improve the organisation’s image. It will assist decision-making. It provides "the framework or context within which the organisation’s strategies are formulated. ” It has the power to attract custom and helps employees see their purpose in the business. Employees are encouraged to learn it, which shares the management’s vision of how the organisation hopes to grow and develop.

5 DHL “DHL enhances the business of our customers by offering highest quality express and logistics solutions based on strong local expertise combined with the most extensive global network presence. Customers trust DHL as the preferred global express and logistics partner, leading the industry in terms of quality, profitability and market share”

6 Ikea's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them.

7 Virgin Atlantic "To grow a profitable airline, where people love to fly and people love to work"

8 Internet Research Real Life…. Find some examples of some excellent customer service Find some examples of poor customer service Prepare a short summary report from your findings.

9 UK Customer Service Some of the most common complaints: Being passed around different members of staff Staff talking to each other when serving a customer Long queues (and being put on hold – call centres) Rude staff Lack of knowledge

10 Features of Good Customer Service Putting the customer first Communicating with customers effectively Ensuring staff are knowledgeable about products and services Providing a good after-sales service Dealing with complaints effectively to the customer's satisfaction

11 Administrative Assistant – Role when Dealing with Complaints Competence – professional and knowledgeable image, use the customers name when possible eg Miss Wright Confidence – keep eye contact and smile at the customer with positive body language Be Concerned – listen, be honest even if you have to give bad news Be Courteous – be polite, don’t argue – even if the customer is shouting/being abusive – be assertive but not aggressive Communicate – ask questions, take notes, pass on information, keep the customer informed

12 Communicating with Customers First impressions count! Remember body language and tone of voice. If an irate customer can be calmed by a pleasant, courteous and competent assistant, then the heat will be taken out of the situation.

13 Customer Care Policy Statement A written statement of principles to ensure that the customer gets what they want at the right standard, quality and price. It will cover how the company will: Ensure the quality of its customer care Measure and test that customer needs are satisfied Ensure service level agreements are in place Deal with customer complaints

14 Customer Care Policy Statement This will also gives steps on how to provide excellent customer service to avoid a complaint in the first place. “Good morning Kirkpatrick Kitchens, how may I help you? ” Rules on the maximum length of time given to respond to a complaint Procedure for dealing with a complaint What is available to offer to a customer to settle a complaint When to escalate to a senior member of staff Advice on how to deal with angry confrontational customers.

15 Customer Service Level Agreement An agreement between the organisation and the customer describing what the organisation promises to be able to do and what the customer can expect States what, how and when the organisation intends to deliver States what will happen if the organisation fails in its promise and commitment Outlines the responsibilities of both parties Specifies any extra or hidden costs eg returns policy or waiting times Increases customer confidence and sets the standard for measurement and comparison with other organisations.

16 Customer Service Level Agreement The following are example of the contents of a SLA – these become contractual obligations: Delivery of products incurs an additional charge Delivery will take place within 3 days of order Installation is not include in the purchase price Extended warranties are at an additional cost and must be purchased within one week of purchasing the product

17 Guarantees If you host with Oak. Hosting. NET you are in good hands. We don't only want you to be safe, we want you to feel safe. Here are 3 guarantees that will help you feel safe. 30 -day Money Back Guarantee There's only so much research you can do before signing up. We believe our services are amongst the best in the world; the best way to discover just how good is to give it a try. Sign up for your first service with us. If you're not happy for any reason at all within the first 30 days, and you cancel and ask for a full refund. No questions asked. You don't have to give your reasons if you'd prefer not to (although we take all feedback on board). Simple. Obviously, terms and conditions apply. But these are not a big "catch" to trip you up. The main ones are that domains and SSL certificates non-refundable (because we can't cancel from the domain registry or SSL issuer, and you get to keep your domain), and that this excludes Premium Hosting (because we have to set up a whole server for each account, which takes a considerable amount of time). 99. 9% Uptime Guarantee We guarantee that our services will be up and running for at least 99. 9% of the time. If we fail in any given month, we have a Service Level Agreement, that says we will give you a full or partial refund (depending on how bad things were) for that month's hosting cost. 3 month Special Offer Guarantee We think this one is unique to Oak. Hosting. NET. In common with many providers, we run special offers from time to time. Sometimes these are recurring offers (a certain amount off your hosting, for the lifetime of your plan); sometimes they only apply to your first invoice (say, 50% off your first invoice, then pay full price when you renew). People can feel pressurised by "first invoice only" offers. They want to save as much as possible, so they sign up for as long as they can to save as much as they can off that first invoice. However, we always advise people to sign up month-on-month to begin with, then move to annual billing once you feel confident everything's working out. We don't want you to feel pressurised into signing up for a full year, just because of a discount. So we guarantee that we will hold any offer for you for 3 months. Simply contact us before signing up, and tell us which of our current special offers you want. We'll reply to confirm that you can have that offer any time you want in the next 3 months. Sign up monthly; when you're ready, reply to that pre-sales ticket and we'll move you over to annual billing and give you the discount.

18 Why Don’t People Complain? Don’t want to make a fuss Unpleasant nature of dealing with complaints Who to complain to? Wo make n’t differ any ence Too scared to approach staff Take up too much time

19 Complaints Procedures Must be a specific policy in place to deal with these customers – remember not everyone will complain Details how to complain and how this complaint will be handled. Sometimes referred to as Customer Retentions especially in Mobile/Broadband companies

20 Dealing with Complaints All complaints should be treated seriously and logged They should be handled by specially trained staff They should be acknowledged and the customer should be kept informed of what is happening Time limits should be established eg all complaints dealt within 10 working days The result of the investigation should be communicated to the customer

21 Gerald Ratner He built up an extremely successful chain of jewellers during the 1980 s, of which he was chief executive. The shops shocked the formerly staid jewellery industry by displaying fluorescent orange posters advertising cut price bargains and by offering low price ranges. Although widely regarded as "tacky", the shops and their wares were nevertheless extremely popular with the public, until Ratner made a speech at the Institute of Directors on 23 April 1991. During the speech, he commented: “We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £ 4. 95. People say, "How can you sell this for such a low price? ", I say, "because it's total crap. " He compounded this by going on to remark that some of the earrings were "cheaper than an M&S prawn sandwich but probably wouldn't last as long. " Customers exacted their revenge by staying away from Ratner shops. After the speech, the value of the Ratner group plummeted by around £ 500 million, which very nearly resulted in the firm's collapse. Ratner resigned in November 1992 and the group changed its name to Signet Group in September 1993.

22 Staff Training This will start with induction training and should continue throughout employment. Some organisations offer qualifications on customer service by completing on-the-job training. Reminders and prompts may be placed around the organisation eg posters, cards with hints/tips etc.

23 TQM (now just referred to as Quality Management) All employees have an individual and a collective responsibility for quality. Principle: “Get it right! First time! Every time!”

24 Investors in People Relates to staff training and development. Awarded for 3 years, after which companies must reapply. 10 Key Indicators must be covered under 3 areas: Plan – Develop strategies to improve performance of the organisation Do – Take action to improve the performance of the organisation Review – Evaluate the impact on the performance of the organisation

25 Benefits of Good Customer Service Motivated and high performing staff Increased profitability Satisfied and repeat loyal customers who recommend the business Less complaints Feedback leads to better service Reputation – attracting customers and staff Less chance of legal action Competitive edge Increased market share

26 Internet Research Visit Trading Standards… Look for advice leaflets for customers What products have been recalled in the last week? Visit Citizens Advice – Consumer Services How does the law protect your rights?

27 Guarantees and Warranties A guarantee is a formal promise – belief in product or service. Brings in more business even if ‘money-back’ guarantee offered. A warranty states that a product/service will last for an appropriate length of time – if the need arises repairs/replacements offered at no extra cost

28 Internal Customers When talking about customer care it is common to only think of external customers. A company’s IT Department may provide a service to other departments (internal customer) There may be a SLA that “within one hour of notification of a fault a technician will be present to assess the fault”

29 Investors in People Benefits to Employer Improved morale and motivation Increased productivity and profit Training closely linked to business objectives Increased customer satisfaction Improved reputation Positive publicity Benefits to Employee Recognition and improved job satisfaction Better communication on training and development issues Pride in belonging to the organisation Supportive working environment

30 Effects of Poor Customer Service Demoralised High and demotivated staff level of complaints Dissatisfied customers won’t return or recommend – loss of income Difficult to turn around a poor reputation Loss of status in the market place Downsize/increase advertising/image spending on

31 EXAM STYLE: Explain the effect of Poor Customer Service Dissatisfied customers leading to a high level of complaints A bad reputation with the effect of a reduction in sales and therefore profits

32 Some more…. The following are consequences of poor customer care; describe the implications…. Decrease in customer loyalty Bad publicity Failure to attract new customers Increase in complaints Demotivated staff Loss of competitive edge

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Sample Answer Why Good Customer Care? Repeat Custom: By providing excellent customer care this will create a lasting memory and customers will return. Repeat business means repeat sales and develops a healthy profit. It is cheaper to retain existing customers than attract new customers Attracting new customers needs additional advertising and special offers to entice customers. Many aspects of good customer care costs nothing at all. 34

Sample Answer Why Good Customer Care? Reputation: If customers have a good experience they will tell others, this amounts to free advertising. More new customers, while retaining existing customers will further increase sales/profits securing the future of the business. However there are therefore high expectations from customers and it is important that these expectations are met. 35

Sample Answer Why Good Customer Care? Complaints Reduced: Excellent customer service should mean reduced complaints. Dealing with complaints is a challenging ‘negative’ task for staff and does not necessarily provide a good working environment. If service is good, complaints will still have to be dealt with when there has been a serious failure – but staff will feel empowered to make things right in these circumstances. This results in increased staff morale and reduced staff turnover. 36

How To Pass Higher Administration & IT 37 Sample Exam Questions Describe the benefits of providing good customer service. (3) Explain the consequences of poor customer service. (5) Describe the features that a business should use to create an excellent customer service experience. (4)

38 Actual Examination Questions

Higher Administration & IT Administrative Services Outcome 2. 1 39