Customer-and-customer-Service

TheCustomerAcustomer,alsocalledclient,buyer,orpurchaser,isusuallyusedtorefertoacurrentorpotentialbuyeroruseroftheproductsofanindividualororganization,calledthesupplier,seller,orvendor.Thisistypicallythroughpurchasingorrentinggoodsorservices.However,incertaincontexts,thetermcustomeralsoincludesbyextensionanyonewhousesorexperiencestheservicesofanother.Thewordderivesfromcustom,meaninghabit;acustomerwassomeonewhofrequentedaparticularshop,whomadeitahabittopurchasegoodsofthesorttheshopsoldthereratherthanelsewhere,andwithwhomtheshopkeeperhadtomaintainarelationshiptokeephisorhercustom,meaningexpectedpurchasesinthefuture.Theslogansthecustomeriskingorthecustomerisgodorthecustomerisalwaysrightindicatetheimportanceofcustomerstobusinesses-althoughthelastexpressionissometimesusedironically.However,customeralsohasamoregeneralisedmeaningasincustomerserviceandalesscommercialisedmeaninginnot-for-profitareas.Toavoidunwantedimplicationsinsomeareassuchasgovernmentservices,communityservices,andeducation,thetermcustomerissometimessubstitutedbywordssuchasconstituentorstakeholder.However,somemanagersinthisenvironment,inwhichtheemphasisisonbeinghelpfultothepeopleoneisdealingwithratherthanoncommercialsales,comfortablyusethewordcustomertobothinternalandexternalcustomers.TypesofCustomers•External-outsidetheorganization(peoplewhopaythebills.)–End-usercustomers–Manufacturer(OEM)forsuppliers.•Internal-peoplewithinyourorganizationwhoreceiveyourwork•Inmanysituations,producershavemultiplecustomersandthereforefinditusefultoidentify“corecustomers”•CustomerAttributes-Characteristicsthatallowcustomerstobecategorizedaccordingtodemographic,psychographic,orfirmographicinformation.DemographicInformation•age•income•maritalstatus•education•stageinthefamilylife-cycle•homeownership–sex–ZIPcode–occupation–householdsize–mobilitypatterns–ethnicbackground–religionCharacteristicssuchas:PsychographicInformation•lifestyles•modesofliving•needs•motives•attitudes•referencegroups•culture•socialclass•familyinfluences•hobbies•politicalaffiliation•etc.FirmographicInformation•Characteristicsaboutacompanysuchas:–howmanyemployeestheyhave;–thekindofbusinesstheyarein;–whethertheyareretail,wholesale,oraserviceprovider;–theirhoursofoperationExcellentcustomerserviceinbusinessorganisationsshouldleadtogreatersalesbecauseofthebenefitsitbringssuchas:JSatisfiedcustomersJMorecustomersthroughrepeatbusinessandrecommendations(greatermarketshare)JAgoodpublicimageJAnedgeoverthecompetitionItisveryimportantthatallmembersofstaffgiveahighlevelofservicetoeachotherbecausetheyaredependentoneachotherforcustomerserviceasawholetobesuccessful.Benefitstothestaffandtheorganisationinclude:JAmorepleasantplacetoworkbecauseofahappierandmoreefficientworkforceJImprovedjobsatisfaction–enjoyworkingatthatorganisation,givesasenseoffulfilment.JImprovedchancesofpromotionwithintheorganisation–iftheorganisationissuccessfulthenitwillgrowandneedmorestaffatalllevels.JGreaterco-operationandteamwork–becauseeveryoneisworkingtowardsthesamegoal.SomeDataonCustomer•(Source:WinningBackAngryCustomers,QualityProgress,1993)•Anaveragecustomerwithacomplainttells9-10people;ifitisresolvedhe/sheonlytells5people.•Foreverycomplaintreceived,therearetwentyothersthatarenotreported.•Itcosts5-10timesmoreinresourcestoreplaceacustomerthanitdoestoretainone.•Companiesspend95%ofservicetimeredressingproblemsandonly5%tryingtofigureoutwhatmadethecustomerangry.Whatis“customerservice”?Customerserviceistheprovisionofservicetocustomersbefore,duringandafterapurchase.AccordingtoJamierL.Scott.(2002),“Customerserviceisaseriesofactivitiesdesignedtoenhancethelevelofcustomersatisfaction–thatis,thefeelingthataproductorservicehasmetthecustomerexpectation.“Customerserviceisaseriesofactivitiesdesignedtoenhancethelevelofcustomersatisfaction–thatis,thefeelingthataproductorservicehasmetthecustomerexpectation.AccordingtoJamierL.Scott.(2002),Customerservicemaybeprovidedbyaperson(e.g.,salesandservicerepresentative),orbyautomatedmeanscalledself-service.ExamplesofselfserviceareInternetsites.WhyisCustomerServiceimportant?•Businessorganisationsdependoncustomerstobuytheirgoodsandservices.Withoutcustomers,businessescannotsucceed.Givingexcellentcustomerserviceplaysanimportantpartinhelpingbusinessorganisationskeeptheircustomersandattractnewones.ImportanceofCustomerServiceBusinessesneedtorecognise:JThebenefitsofhavingsatisfiedcustomers–theywillcomebackagain(repeatbusiness/loyalty);theywilltelltheirfriendsandfamilyabouttheplace(reputation);etc.JThecostsofhavingdissatisfiedcustomers–theywillnotreturnandtheywilltelltheirfriendsofthepoorservice/goodsandtheymightthennotreturn.ImportanceofCustomerService•TheRealityofCustomerService–Badservice•Apersonwilltell9of10theymeetaboutit•13%tellanavg.of20–Goodservice•Apersonwilltellanaverageof4peopleaboutit–Only4%willevercomplainaboutbadservice.–Forevery1thatreportspoorservice,26areunreported.–Whatdoyoulose(1personforalifetimeofsalesandtheirreferrals)–Whatdoesacustomerlookfor:•Value=FairPrice+Quality+CS•Focusonthecustomer–67%stopusingabusi