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Excellence in customer service

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Presentation on theme: "Excellence in customer service"— Presentation transcript:

1 Excellence in customer service
The way to go

2 OLIVER CHIKUTA PRESENTATION BY (M.Com, B.Com MSU)
Department of Tourism and Hospitality Management, Midlands State University.

3 Workshop Objectives By the end of this workshop all participants are expected to; Appreciate the place of the customer in the hotel Focus all their operations on customer satisfaction Become either full-time or part-time marketers Create and provide an atmosphere that attracts repeat business Understand how to recover/redeem a dissatisfied customer

4 What is a customer? A person, company , or other entity which buys goods and services produced by another person, company, or other entity.

5 Who is the hotel customer?
The tourist:  somebody who travels in order to take advantage of a particular service or benefit that is not available at home

6 Objectives of tourism product development
1. Attract visitors from new markets   2. —Generate longer stays   3. —Increase the expenditure of each visitor   —4. Extend the tourism season   —

7 The above objectives can only be achieved if there is customer satisfaction or better still, customer delight.

8 REMEMBER!!! The customer is the goose that lay the golden eggs. Everyone is looking for it.

9 REMEMBER

10 THE NEW TOURIST/CUSTOMER
In order to delight the customer, it is very important to know and understand what the customer/ tourist wants. Again it is critical to appreciate the fact that customer tastes and preferences are ever-changing. The customer yesterday may not be the customer today hence the strategies that worked yesterday may not work today.

11 continuation The New Tourist is more interested in the 3Es not the traditional 3Ss. These Es are; Education-seeking experiences that enrich them mentally. Excitement-shun all boring and passive tours. Entertainment-remember they are escaping the mundane work or home environment.

12 Continuation The New Tourist consumes ethical and environmentally friendly products. It is very important as an organisation to ask yourselves “ are our operations ethically acceptable and have we gone green?” Today pressure groups the world over are encouraging travellers to shun all hotels and lodges whose operations are not green.

13 continuation According to a research by Hickman (2006), 26% of tourist aged prefer to spend their money on ethically, socially and environmentally aware companies. Studies of German and US travellers indicate that environmental considerations are now an important aspect in the choice of a destination (Hudson 2008). The study show that 70% are willing to pay $ more for a two-week stay in a hotel that has a responsible tourism attitude.

14 Health conscious tourist
Increasingly, tourists are becoming more particular about issues of health. They therefore expect nothing but excellence in cleanliness in the kitchen, restaurant and bedrooms. They are also attracted to hotels that have health facilities e.g. Gymnasiums, sports e.t.c. The new tourist also wants food that is nutritious and enriching.

15 Customisation It is important to know that the New Tourist is a non conformist. They do not want to be treated like anybody else. They have unique needs that need personal attention. They want to be called by name and they pride in being recognised and getting personalised attention. They want someone who listens to them and give them what they really want.

16 Quality conscious Service quality has more and more become a determinant in differentiating tourism products and building sustainable competitive advantage. Quality is a result of customer expectations being met or exceeded and is defined by the customer. It is very important to listen to the customer if we are to provide quality services in our hotels and lodges.

17 Service Quality

18 Moments of Truth Each customer contact is called a moment of truth.
You have the ability to either satisfy or dissatisfy them when you contact them. A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.

19 Dimensions of Service Quality
Reliability: Perform promised service dependably and accurately. Example: serve an order in the stipulated service time every time. Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.

20 Dimensions of Service Quality
Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. Empathy: Ability to be approachable. Example: being a good listener. Tangibles: Physical facilities and facilitating goods. Example: cleanliness.

21 Achieving service quality for customer retention
The most important thing for any business to do is to keep their customers. It is also the job of every employee of every business to do the same. Keeping customers is key to the success of virtually every business.

22 NB: The importance of customer loyalty is obvious when studies show that it is between four and six times more expensive to attract new customers than it is to keep existing ones.

23 With the cost of attracting new customers being much greater than the cost of providing the exceptional service that keeps them coming back, it is apparent that the more customer loyalty a company develops, the less it needs to spend on attracting new customers. But, remember it is always important to be attracting new customers.

24 Total Quality Service (TQS)
is a commitment by a company to ensuring they are customer focused, have clear service standards and reward good service performance. Some simple strategies based upon TQS techniques, to retain customers, include: Value the customer. A simple thank you helps - it can be face-to-face, over the phone or written.

25 continuation “Revolve your world around the customer and more customers will revolve around you.” - Heather Williams

26 Continuation... Find and remove problems. Only 4% of unhappy customers complain the other 96% don't bother. Find out if you are doing a good job, and if there are problems react quickly. Your ultimate goal should be to try and fix problems before the customer complains. The best way is for you to simply ask how you are doing.

27 Continuation... Show competitive differences. Make sure the customer knows they made the right decision to stay at your hotel or visit your attraction by reinforcing the benefits of this relationship. Make sure the customer knows how your company is different from the competition, and why you stand out. For example, many international hotel chains send their guests an after their hotel stay to thank them for staying, offer them some special deal, and invite them to return.

28 Take responsibility for customer problems
Take responsibility for customer problems. Customers do business with the people who represent the company. If a customer has a problem, and you are the person who receives that information, it is your responsibility to see it through. Guarantee your products and/or services.

29 Continuation... Create a demanding customer. If competition cannot match your levels of product or service (at the same price or perceived value) this reinforces the customer’s belief that they made the right choice in doing business with you. The only way a competitor could take your customer away would be to match or exceed what you do.

30 Continuation... Manage the “moments of truth”. Moments of truth are occasions when important impressions about a company are formed and where there is an opportunity for good or bad impressions to be made. For example, first impressions are often critical moments. The moments of truth in business can be critical. Therefore, the goal should be to take every moment of truth, even if it is a bad one, and turn it into a moment of magic. Managing the moments of truth and creating moments of magic will help get the sale.

31 Service Failure and Service Recovery
Service Failures The cost of failed service encounters can be high, with losses not only including the loss of profit, but also the loss of reputation, loss of loyal customers and loss of future business.

32 Continuation... Poor service performance is negative to the development and the goodwill of the business and the issues causing such behaviour need addressing. The Service Triangle shows the importance of the relationship between the customer, the company and the service provided.

33 Customer Complaint Actions Following Service Failure

34 Service Recovery All companies need to have a service recovery plan to make things right should customer expectations not be met. If there is no plan to “put right” a service failure, then the company faces difficult problems such as: the perception the company doesn't care about the product / service

35 Continuation... the perception the company doesn't care about the customer the loss of loyal customers the loss of reputation - via negative word of mouth and the loss of potential repeat business.

36 Continuation It is also important to understand the following;
The Impact of Service Failure and Recovery How Customers Respond to Service Failures Customers’ Recovery Expectations Service Recovery Strategies Service Guarantees

37 Unhappy customers’ repurchase intentions
Unhappy Customers Who Don’t Complain 9% Unhappy Customers Who Do Complain Complaints Not Resolved 19% Complaints Resolved 54% 82% Complaints Resolved Quickly Percent of customers who will buy again after a major complaint (over $100 in losses)

38 Service recovery process
Apologise and take responsibility for the mistake-it is unfortunate that some service providers view an apology as a weakness or admission of guilty. Yet a sincere, first-person apology is the fastest and simplest way to minimize a customer’s irritation and recover from service mistakes. .

39 continuation listen with empathy and ask open-ended questions-to get to the heart of the customer’s concern. Let the customer talk. Be extremely attentive when the customer is explaining the problem. Do not be quick to judge or be in a hurry to move to resolution. Sympathize with their situation and acknowledge their concern. Sometimes venting is all the customer needs in order to feel satisfied.

40 continuation These first two steps in the service recovery process are extremely important. Too often service providers jump too quickly to resolution. For many customers, the resolution of their problem is less important than a simple acknowledgement of their concern. Usually you need to fix the customer before you can fix the problem

41 continuation Solve the problem quickly and fairly. Find a resolution that is acceptable to the customer. For most service errors-a simple apology or replacement of a faulty product is all that is required. Most customers complain merely to bring the problem to your attention so you – the company – can be better.

42 continuation However, in more severe service failures, or with extremely difficult customers, you may need to atone for your service transgression. In some situations you must make amends – or suffer as the customer has suffered – before the customer will be satisfied. Your atonement may be a product upgrade, a small gift, a future discount, a free offering.

43 continuation Keep your promise- After telling the customer what you will do to rectify the problem, be sure to keep your promise. Don’t make promises you cannot fulfil. Once you’ve made a promise make sure you carry it out fully. Be sure not to over-promise. It’s always best to under promise and over deliver.

44 continuation Finally, you need to follow-up. Don’t assume the customer is satisfied just because you fixed the problem. Check with them. Ask if there is anything else that you can do to meet their needs. Don’t consider the situation closed until you know the customer is fully satisfied.

45 NOTE!! Not all dissatisfied customers can be turned around. But by following these simple steps chances are even your most dissatisfied customers will leave feeling they were treated fairly.

46 THANK YOU FOR YOUR ATTENTION.
Let us all remember EXCELLENCE IS THE KEY TO ATTRACTING AND RETAINING PROFITABLE CUSTOMERS. Therefore, service excellence is the ONLY way to go. THANK YOU FOR YOUR ATTENTION.


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