Your most unhappy customers are your greatest source

“Your most unhappy customers are your greatest source of learning. ” Bill Gates “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful. ” Jeff Bezos “Do what you do so well that they will want to see it again and bring their friends. ” Walt Disney “We don’t want to push our ideas on to customers, we simply want to make what they want. ” Laura Ashley “Write your quote” 3. 2. 4 E FFECTIVECUSTOMER SERVICE

b(i) Identify two possible extension strategies a chocolate manufacturer might use (2) 1. 2. (ii) Explain how one of the strategies you identified in (b)(i) would extend the product life cycle of the new chocolate bar. (3) Explain how qualitative market research might allow Apple to improve its marketing mix. (3) June 10

b(i) Identify two possible extension strategies a chocolate manufacturer might use (2) • • Promotional offers e. g. BOGOF. Lowering prices. Improving the product. Advertising. Increasing the number of distribution outlets (place). Re-positioning the brand name. Changing the product in some way/new flavours/varieties, etc. (ii) Explain how one of the strategies you identified in (b)(i) would extend the product life cycle of the new chocolate bar. (3) By introducing new flavours of the chocolate bar e. g. caramel/peanut, etc. should lead to an increase in market share (1 mark). This means it will be attractive to a larger number of people (1 mark) and thus, increase likelihood of new sales (1 mark). Explain how qualitative market research might allow Apple to improve its marketing mix. (3) Qualitative research will give Apple information about whether consumers find their iphones attractive (1 mark). As a result, Apple will be able to change their phone design (1 mark), which may lead to consumers willing to pay more (1 mark). June 10

W HAT IS CUSTOMER SERVICE?

I MPORTANCEOF C USTOMER S ERVICE 3. 2. 4 EFFECTIVE CUSTOMER SERVICE Customer service is the meeting of customer expectations before, during and after purchasing a good or service It is giving customers what they want, when they want it For any business it is essential to have good customer service in order to Distinguish the product from the competition Obtain repeat custom Gain a good reputation Customer service in the restaurant industry

I MPORTANCEOF C USTOMER S ERVICE It is important to provide good customer service in a number of areas: Reliability Product information After sales service Can you think of two examples of products or services where each of the above areas of customer service are important to you? 3. 2. 4 EFFECTIVE CUSTOMER SERVICE

I MPORTANCEOF C USTOMER S ERVICE Reliability 3. 2. 4 EFFECTIVE CUSTOMER SERVICE v Customers want a product that will meet their requirements each and every time v Consistent quality will earn customer loyalty and repeat custom v Customers expect predictability when buying a product – does the good or service meet expectations?

I MPORTANCEOF C USTOMER S ERVICE Product information 3. 2. 4 EFFECTIVE CUSTOMER SERVICE v To obtain the full benefit of a product the customer needs to know how it works v Expert knowledge of how a product works will allow the firm to inform customer needs when making a sale v Good customer service based on product information can make the difference between making and losing a sale How can a firm ensure staff are both knowledgeable and able to provide customers with the service level required?

I MPORTANCEOF C USTOMER S ERVICE After sales service 3. 2. 4 EFFECTIVE CUSTOMER SERVICE v Many products require an ongoing service v A good website, online helpdesk and a reliable repair/support team can provide this v This will increase the likelihood of repeat custom for new products aimed at a loyal customer base v Recommendation will also be key for small firms to increase their customer base Can you identify these forms of after sales service? Eager Tuna (1 word) Yan Wart ( 1 word) Princely Tours (2 words)

D ISADVANTAGESOF POOR CUSTOMERSERVICE 3. 2. 4 EFFECTIVE CUSTOMER SERVICE v Reputation can suffer through word of mouth v Sales may decrease as repeat custom declines and customers switch to competitors v Profits will be affected v Ultimately the business may close down

N OTE ONE GOOD AND ONE BAD CUSTOMER SERVICEEXPERIENCEYOU OR YOUR PARENTS HAVE HAD • What business was it? • Did it offer goods or services? • Briefly discuss what happened? • What was the outcome? • Have you used the business again? • Did you tell other customers? • What impact do you think this would have on the business? • Recommend what you think the business needs to do to improve its customer service.

Poor customer service will increase the number of complaints Easyjet receive (1 mark). As a result the complaining passengers are unlikely to use Easyjet again (1 mark) and will switch to Ryanair (1 mark). 3. 2. 4 EFFECTIVE CUSTOMER SERVICE

S ERVICE WITH A SMILE The Nasty Tourist A group of Americans were touring Ireland. One of the women in the group was a real dragon, constantly complaining. The bus seats are uncomfortable. It's too hot. It's too cold. The food is terrible. The accommodation is awful. The group arrived at the site of the famous Blarney Stone. "Good luck will be followin' ya all your days, if you kiss the Blarney Stone, " the guide said. "Unfortunately, it's being cleaned today so no one will be able to kiss it. Perhaps we can come back tomorrow. " "We won't be here tomorrow, " the nasty woman shouted. "We have some other boring tour to go on. So I guess we can't kiss the stupid stone. " "Well now", the guide said, "It is said that if you kiss someone who has kissed the stone, you'll have the same good fortune. " "And I suppose you've kissed the stone, " the woman scoffed. "No Ma'am, " the frustrated guide said, "but I've sat on it. " 3. 2. 4 EFFECTIVE CUSTOMER SERVICE

I N PAIRS 3. 2. 4 EFFECTIVE CUSTOMER SERVICE Identify a local business where customer service is important Design a poster to be displayed in the staff room reminding employees of: The importance of customer service Actions to improve customer service The dangers of poor customer service

C USTOMER S ERVICE HOME WORK Tracey runs an independent travel agents, that prides itself on excellent customer service. She offers tailor made trips to cities across Europe. She spends time with each potential customer helping them plan the perfect itinerary to meet their needs. The service offered includes everything from planning the trip, booking hotels, flights and excursions and even offers to pick them up by taxi from home and drop them at the airport. 3. 2. 4 EFFECTIVE CUSTOMER SERVICE Question time 1. What is meant by the term ‘customer service’? (2 marks) 2. Explain 1 reason why product information will be important for Tracey’s customers. (3 marks) 3. Explain 1 way Tracey could offer a good after sales service. (3 marks) 4. Explain 2 benefits to Tracey of offering excellent customer service. (6 marks)