1. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-1 C USTOMER S ERVICE The ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner which satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business.

2. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-2 C USTOMER S ERVICE Is this a change in thinking about customers? Yes!

3. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-3 Early Industrial Economy Emphasis was on creating products and developing techniques to lower production costs. “You can have any color car you want – as long as it’s black.”

4. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-4 C USTOMER S ERVICE Eventually you end up competing on what factor? Price!

5. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-5 S HIFT T O S ERVICE Customer Focused Organizations Focus is on determining and meeting customer needs Products and services are based on what the customer wants. Policies are in place to allow employee decision making. Management and systems support and reward employees. Reevaluation of strategies and systems is ongoing.

6. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-6 S OCIETAL F ACTORS A FFECTING C USTOMER S ERVICE (1) Shifts in the population profile Increased efficiency in technology Globalization of the economy Deregulation of many industries Geopolitical changes

7. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-7 S OCIETAL F ACTORS A FFECTING C USTOMER S ERVICE (2) Increase in white-collar workers Socioeconomic programs More women entering workforce More diverse population in workforce More older workers in workforce

8. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-8 S OCIETAL F ACTORS A FFECTING C USTOMER S ERVICE (3) Desire for better use of leisure time Expectation of quality service Better-educated customers Increased number of small businesses Growth of e-commerce

9. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-9 A DDRESSING T HE C HANGES Must provide service excellence Anticipate customer needs Train employees Give employees authority to resolve issues Must become “Learning Organizations”

10. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-10 Learning Organizations: Use knowledge as a basis for competitiveness Provide ongoing training and development for employees Have reward systems in place Learn from mistakes and adapt Train employees to spot potential problems and to proactively make adjustments Give employees authority to make decisions Empowerment

11. McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1-11 C USTOMER S ERVICE E NVIRONMENT CUSTOMER Organizational Culture Human Resources Products/Deliverables Delivery Systems Service