Level 3 Diploma in Business Administration presentation Power

Level 3 Diploma in Business Administration • presentation Power. Point Unit 324 (CS 26): Understand the customer service environment Handout 1: Understand the concepts and practices underpinning customer service delivery © 2015 City and Guilds of London Institute. All rights reserved. 1 of 16

Level 3 Diploma in Business Administration Customer service as a competitive tool What does this mean? • A way in which an organisation meets or beats the service offers of competitors. • A way an organisation can create support and loyalty and encourage retention. © 2015 City and Guilds of London Institute. All rights reserved. 2 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery • Customer service as a competitive tool. • Customer service is a competitive environment. Many organisations promise a high level of service in order to attract new customers and retain existing ones. • It’s important for organisations to be aware of competitor offers and standards in order to compete in the market place. • Customer service levels can be vital in gaining an advantage over organisations with similar products or service offers. • Discuss with the group your organisation and it’s main competitors. © 2015 City and Guilds of London Institute. All rights reserved. 3 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery • The Institute of Customer Service carries out biannual research to create reports on customer satisfaction in the UK. • This can help us understand the link between customer satisfaction and organisational effectiveness. • Organisations are placed into a customer satisfaction index (UKCSI), rated on how satisfied their customers are. This is compiled across different sectors through customer surveys. © 2015 City and Guilds of London Institute. All rights reserved. 4 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery Value • The value of using customer service as a competitive tool is clear. Competition is increasing. • Customer service levels must also increase in order to match or even beat competitor service offers. • Customers have more choice. For an organisation to be competitive service levels must match expectations and needs. © 2015 City and Guilds of London Institute. All rights reserved. 5 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery Mapping the customer journey • What is the customer journey? • customer interactions with an organisation • from first contact to closure of the transaction • the customer experience as a whole. • Why should this be mapped? • to evaluate the customer experience • to identify improvements • to monitor standards. © 2015 City and Guilds of London Institute. All rights reserved. 6 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery • The customer journey is the complete sum of experiences that customers go through when interacting with an organisation and brand. • A customer journey map is a framework that enables improvement of the customer experience. • Customer journey mapping can help to identify how the customer is treated during each contact and how the customer feels towards your organisation at the end of the experience. © 2015 City and Guilds of London Institute. All rights reserved. 7 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery • All organisations will have different types of customer interactions. • These must be established in order to begin to map the customer journey. An example is given below: Awareness Research Purchase © 2015 City and Guilds of London Institute. All rights reserved. After-sales Loyalty 8 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery Customer personas and touchpoints • Touchpoints and personas must be established to begin to see what customers want and the types of interaction a customer has with an organisation. A touchpoint is a marker to show where a customer interacts with an organisation – the point at which the two parties come together. • The journey map can help to structure this process and clearly identify the quality of each interaction. This is best done through customer research and feedback. This data will be then be used in the customer journey map. This element is known as creating ‘personas’. . © 2015 City and Guilds of London Institute. All rights reserved. 9 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery Here is an example of a customer journey map with touchpoints. © 2015 City and Guilds of London Institute. All rights reserved. 10 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery • This customer journey map isn’t about the goals of an organisation; it’s about the goals of a customer at each stage. • Identify the customer questions at each stage and identify their goal. For example: Phase: Research Customer goal: Identify options for available products/services • For each different phase, you will see gaps in what the needs and goals of customers are and what is currently available to them. This will begin to highlight what improvements are required. © 2015 City and Guilds of London Institute. All rights reserved. 11 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery In summary, an effective journey map will identify: • What do customers need? • How can the organisation help them to succeed? • Where should the organisation be investing more to provide a better customer experience? . © 2015 City and Guilds of London Institute. All rights reserved. 12 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery A customer journey map will encompass all activities carried out with customers, including those carried out by administrators, such as: • Processing customer orders. • Updating customer records. • Preparation of letters and other correspondence to customers. Including these administration functions is vital in order to give a full overview of the customer journey. © 2015 City and Guilds of London Institute. All rights reserved. 13 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery The Service Profit Chain • The Service Profit Chain is a theory and business model evolved by a group of researchers from Harvard University. They have proved that there is a direct financial link between superior service experiences, customer loyalty, and financial performance (profit and growth). • The service-profit chain establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty and productivity. • Use your handout to see the links in the chain. • Do you agree with this model? . © 2015 City and Guilds of London Institute. All rights reserved. 14 of 16

Level 3 Diploma in Business Administration Understand the concepts and practices underpinning customer service delivery The Service Profit Chain This model clearly shows the link between delivering an excellent standard of service and the profitability of an organisation. . Internal service quality Employee satisfaction Employee productivity External service value © 2015 City and Guilds of London Institute. All rights reserved. Customer satisfaction Customer loyalty Profitability/ business growth 15 of 16