1. CONTROLLED ASSESSMENT TWO: PEOPLE IN BUSINESS Customer service

2. The importance of good customer service Without customers a business will fail Businesses seek to attract new customers and retain existing ones (repeat business) Providing good customer service allows a business to ensure that existing customers return and new customers deal with the business This reduces business costs overall and in particular advertising and marketing costs

3. The benefits of good customer service To summarise good customer service allows a business to: Gain new customers and retain existing ones Generate customer loyalty Improve the businesses reputation and public image Enable the business to increase or retain market share Increases revenue and profits Provide information about products

4. Types of customers Customers can be divided into external customers and internal customers External customers are people outside of the business who visit it to buy a product Internal customers are people within the same organisation who need other members of staff to provide a service for them

5. Customer expectations Customer expectations vary greatly depending upon what the customers are buying, how much they’re paying and how often such transactions take place Generally customers are concerned with; value for money; a prompt response to enquiries; clear and unbiased information; help with particular issues; information about suitable products; care and attention; after sales service

6. Value for money Consumers tend to expect the product to be worth the amount they pay for it Higher-priced products should reflect superior quality Obviously such a concept is subjective i.e. depends upon opinion, and can vary from individual to individual

7. A prompt response to enquiries Most customers expect staff to be able to answer basic questions regarding the product If they ask a member of staff who does not know the answer to a question then they expect to be directed to one who does Not knowing the answer to a basic question or even a more complex one can reflect badly on the company

8. Clear and unbiased information Business cannot knowingly mislead a customer However, customers may be misled by certain companies either explicitly or through legally acceptable but unethical stunts, such as very small print Laws have been passed to avoid this, but unscrupulous companies can get around these

9. Help with particular issues Businesses should be able to respond to people’s individual needs This may be as simple as providing delivery outside of working hours so that someone who works 9-to-5 can be at home when goods are delivered Or it can be more complex, such as providing access to customers with particular requirements such as disabilities

10. Information about suitable products A number of products are very technical such as computers and video cameras It’s up to the customer service assistant to recognise an individual’s needs and to meet those needs with an appropriate product I.e. someone with very little technical knowledge who just wants to use a PC for surfing the net, would find very little use for a high-end machines with CAD and CAM software

11. Care and attention Most people still want individual attention from another person Particularly with complex high-value purchases, such individual attention can mean a sale and a happy customer likely to return in the future

12. After sales service Particularly important with high-value items Includes repair to the product, returning the item for exchange, ordering spares, complaining, and more technical queries On high-value items good after sales service can mean the difference between a purchase or non- purchase

13. Customer satisfaction How do businesses measure customer satisfaction? First of all what do we mean by customer satisfaction? Some people would argue that customers are only truly satisfied if they returned to buy again. Others regard satisfied customers, as those whose basic expectations are met by the business Businesses have four basic ways to measure customer satisfaction: analyse sales data, examine number of complaints, compare their performance with competitors and formal/informal feedback from customers.

14. Analysing sales By looking at the number of customers who make enquiries and comparing it with the number of customers who carry out a transaction, businesses can get some measure of customer satisfaction Loyalty cards enable the business to see how much and when consumers spend their money. This allows them to measure consumer satisfaction on a basic level. Repeat business would tend to suggest customer satisfaction.

15. Number of complaints Measuring the number of complaints will allow business to determine customers dissatisfaction Complaints may vary in seriousness and as a result may indicate different degrees of customer satisfaction or dissatisfaction Some customers may have a history of making excessive complaints Complaints may not be related to customer service and should therefore be treated appropriately

16. Compare performance with competitors If competitors are suffering the same problems than such complaints may not be a result of poor customer service but rather something that is endemic in the industry For example, in the recent downturn many firms are suffering a decline in sales, this is due not to poor customer service, but to a decline in the economy Such information can be gathered from rival’s company reports or market research data

17. Formal/informal feedback from customers This can take the form of formal market research and feedback from sales staff Formal methods include: observation, questionnaires, consumer panels and interviews, e- mail, websites. Informal methods include mainly feedback from shop floor staff.

18. Consumer and business legislation Health and Safety laws are probably the most important The Health and Safety at Work Act protects both customers and workers If the business is responsible it will ensure that its premises and facilities are safe for all users This includes both customers and employees

19. Contract of sale When a consumer buys a product or service they enter into a contract Such contracts can be split into express and implied terms Express terms are explicitly stated in the transaction – for example an item is to be installed An implied term is something which isn't stated because it's obvious, such as a reasonable price for the products

20. The terms of the contract The contract is also divided in terms of conditions - for example a product has to be unused if bought new Also in terms of warrantee – for example, if a product is supposed to have modifications and did not, then you would have recourse to play a lower price

21. Sale of Goods Act 1979 and 1995 The Sale of Goods Act 1979 and 1995 says that all groups must be as described It also says that all goods must be of satisfactory quality Furthermore, all goods must be fit for the purpose for which they are intended

22. Supply of Goods and Services Act 1982 Supply of Goods and Services Act of 1982 protects against: poor workmanship delays excessive charges

23. Consumer Protection Act 1987 Consumer Protection Act 1987 refers to price and safety It states that customers cannot be misled about price This also applies to sales prices when massive reductions have been highlighted which are not necessarily correct Also when goods are placed on sale at a very low price, but the business hasn’t got the goods to supply

24. The Trade Descriptions Act 1968 Makes it illegal to describe goods in a false or misleading way Misleading pictures or packaging are not allowed The quantity, size, method of manufacture, materials used must be described

25. The Data Protection Act The Data Protection Act limits the ways in which companies can use information on individuals All individuals have a right to see any information held on them by a particular company Businesses can only use this information in a way which is agreed upon by customers Some organisations will guarantee the information will not be passed on to other businesses However some organisations require customers to allow this, and increasingly some organisations will not do business with you unless you accept this condition