1. PowerPoint presentation
Unit 324 (CS 26): Understand the customer service environment
Handout 1: Understand the concepts and practices underpinning customer service delivery
Explain the value of customer service as a competitive tool.
Explain the process of mapping the customer journey and its importance in delivering effective customer service.
Explain the concept and importance of the service profit chain.

2. 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.
Outcome 1.1

3. 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.
Customer expectations grow with each new organisation that promises high service levels, in turn all organisations must work harder to match this offer and also to retain customers. It is important for tutors to make this point clear to learners.
Outcome 1.1

4. 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.
The most recent report can be found here:
Give out Activity 1 – research.
Outcome 1.1

5. 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.
Outcome 1.1

6. Mapping the customer journey What is the customer journey?
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.
Outcome 1.2

7. 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.
Instead of looking at just a part of a transaction or experience, the customer journey documents the full experience of being a customer.
Journey map ‒ It documents the customer experience through their perspective, to enable organisations to best understand how customers are interacting with them now and helps identify areas for improvement moving forward.
Outcome 1.2

8. 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
After-sales
Loyalty

9. 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’. .
These touchpoints will differ for each organisation or company.
It may be useful here to ask the group to apply this to their organisation.
What the organisation needs to do is ensure the customer receives the quality of experience they require at each of the key touchpoints.
Outcome 1.2

10. Understand the concepts and practices underpinning customer service delivery
Here is an example of a customer journey map with touchpoints .
Outcome 1.2

11. Identify options for available products/services
Understand the concepts and practices underpinning customer service delivery
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.
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
An effective journey map should identify these clearly by customer phase.
Outcome 1.2

12. In summary, an effective journey map will identify:
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? .
Not all journey maps are the same. They will differ significantly based on business models, organisational structure and personal approach.
Outcome 1.2

13. 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.

14. 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? .
Give out Handout 1 – Service Profit Chain.
Discussion around learner opinions.
Outcome 1.4

15. 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
Customer satisfaction
Customer loyalty
Profitability/ business growth

16. Questions?