The Customer’s Role The Employee’s Role 2

Chapter Objectives Define customer service. Describe customer-service expectations. Explain word-of-mouth communication. Identify the employee’s role in customer service. Explain the importance of employee empowerment and recognition. 3

Understanding Customer Service Customers are knowledgeable about their needs and wants. The manner in which retailers meet or exceed customer expectations has a big effect on a retailer’s success. 4

What Is Customer Service? customer service Types of customer service can include: customer service the set of enhancements retailers offer customers to make shopping more convenient or rewarding 5 accepting credit cards and personal checks delivery repair gift-wrapping placing special orders

Determining Customer Service Methods that retailers can use to help determine which customer services to use include: customer survey questionnaire designed to gain information from customers 6 Customer survey Customer comments Observing the competition Listening to store employees

Follow up. Handling Customer Complaints 7 Let the customer speak. Be empathetic. Thank the customer for his or her comments. Research, identify, explain, and solve the problem. Log the incident and learn from the experience. Be positive. Take responsibility. Apologize.

What Customers Expect Customers expect to be treated fairly and honestly. They want to be treated with respect and feel they are valued guests. The customer’s perception of the customer service is formed by the way the service is delivered by the employee. 8

What Customers Expect The two areas of customer service are: 9 Retailer reliability services –The ability of the customer to depend on retailers to do what they say they will. Employee contact services –A customer’s contact with store employees.

Word of Mouth word-of-mouth communication Positive word-of-mouth communication is a valuable asset. word-of-mouth communication customer conversations about their retail experiences 10 Public consumer Web sites include forums where people rate retail establishments and comment on their personal experiences.

Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.marketingseries.glencoe.com Retailers who have extended their wares to the electronic channel can fall short in offering customer service. Even though convenience and low prices attract customers to Web site shopping, many Service With a Smile online customers still expect the same personal attention that comes from good customer service. Nordstrom.com offers customers the same renowned customer service online as it does in its stores. Customers can ask online representatives questions about sizes, product features and availability—and expect a prompt, courteous response. The site also features a Wish List, where customers can keep items they may want to buy in the future. For more information on retailing, go to marketingseries.glencoe.com.marketingseries.glencoe.com 11

What are four methods retailers use to determine customer preferences? What are the two large areas of customer services? Why is word-of-mouth communication so important?

Representing the Business Retail employees provide most of the personal contact customers have with a retail business. The employee is the key player in the delivery of customer service. 13

Employees and Customer Service Factors affecting employees and service are: employee retention a company’s ability to keep workers employed for an extended period of time 14 Employee retention –Employee turnover –Low employee turnover –High employee turnover Compensation packages employee turnover the change in employment status at a company when employees leave their jobs low employee turnover the change in employment status at a company when few employees leave their jobs high employee turnover the change in employment status at a company when the staff changes frequently

Providing Customer Service Managers should set goals for their employees. Managers should make sure that their employees are aware of the company’s mission statement. 15

Providing Customer Service Two ways management can help employees provide excellent customer service are: 16 TrainingEmpowerment empowerment granting employees responsibility for making decisions

Providing Customer Service Two important areas of customer service are: 17 Telephone customer service Internet customer service

Employee Recognition The employee’s role in providing outstanding customer service must be rewarded. In a way, employees are like customers: When they feel valued and appreciated, they remain loyal. 18

What is the most important part of a sales associate’s job? Why is employee retention important in the delivery of outstanding customer service? What are the two ways management can help employees provide excellent customer service?

A set of enhancements that retailers offer customers to make shopping more convenient or rewarding. 1. Positive relations involve an attitude of “the customer is always right.” 2. Define customer service. 20 Explain positive customer/client relations. Explain customer-service expectations. Discuss the importance of word-of-mouth communication. Customers expect honesty, fairness, respect, and valued guest status. 3. Customers share their shopping and customer-service experiences with friends, relatives, and colleagues. Positive word-of-mouth communication encourages more customers to attend the store and results in more sales. 4. Checking Concepts continued

21 Identify the employee’s role in customer service. Describe management’s role in customer relations. Explain the concept of empowerment. The employee's role is to be available to assist customers by locating merchandise, handling special orders, and serving the customers' needs. 5.Management has to be consistently reliable. One area might be deliveries; other areas may involve credit or billing services. 6.An empowered staff will be more motivated to provide good service. 7. Checking Concepts continued

22 Critical Thinking Describe what happens to a store if employees give poor customer service. It won't last. Customers will find other places to shop. 8. Checking Concepts 8.

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