Case Study ANALYSIS ON: Quality customer service
Answer 1: Quality customer service can be defined as understanding the needs and desire of the customer and serving those needs with all courtesy. It is the process of continuously communicating to both the customers’ i.e. external customer and internal customers that they are valued and their satisfaction is very important (ehow money 2012). In order to provide that quality customer service there are some prerequisites that needs to be followed:
Being a good listener: It is important for the staffs that they listen to customers actively. It is important to put open ended questions to the customers in order to understand their needs faster and easier (Answerbag 2009). However, the words should be carefully chosen to probe the customer.
Serving the need with all courtesy and reducing chances of error: Once the need is understood it is important that it is served effectively. Mistake on any of the step should be strictly avoided. Whether it’s an error in invoicing or it’s a service failure it is important that they are avoided. Total Quality management and Total quality control should always be in place. If a mistake or problem arises, it should be admitted and addresses immediately (Business burrito 2009). However, instead of straight away providing replacement or upgrading the requirement, the aim should be on reaching a mutually agreed solution beneficial for both the parties.
Customer Retention is the key: It is always easier to retain the existing customers than attracting new ones. Customer retention programs can help in this. There can be loyalty points that can be given to frequent customers which they can get redeemed. There can be a separate group of loyal customers like” King’s group” which will give them certain benefits. Other customers can be motivated to become member of that group. However, it is of utmost importance that before offering such programs to customers a cost – benefit analysis is done properly. Since, all the organization works on a profit maximization goal, no scheme should be offered in a manner that brings a compromise on the profit of the organization.
Follow up with customers: In order to build a good customer relation and understand their experience it is very important that they are contacted after they have bought the furniture. Customers can be asked for a feedback of the experience and the service and they can also be asked for referrals (Business Burrito 2009).
Serving internal customers: The most critical facet of ensuring a good customer service lies with internal customers. A satisfied employee feels excited and wants to come to work with new energy and is willing to travel that extra mile to serve the external customer and they are great brand advocates. Satisfied employees create satisfied customers (Impact Learning Systems 2012)
Answer 2:
I agree to the mentioned statement however, it was actually a combination of staff empowerment to act generously towards customer complaints and organizations failure to communicate the current financial standing to its internal stakeholder which led to the financial demise of the organization. In order to retain customers it is very important that critical incidents or the Moments of Truth are handled with utmost care for which issues needs to be handled judiciously rather than generously. As in case of “Made for you” where the complaints of delivery days, short stock supply and long waiting time were addressed by giving price discounts, giving cancellation charges or upgrading, all solutions that were provided by the organizations were related to price discounts which resulted in compromising the profit. The same issues could have been handled by providing similar alternatives for the out of stock furniture, an apology card might have also done its bit and emphasis should have always been on getting to the root cause of these issues and eliminating it. A small trigger pertaining to breakdown of supplier’s relation caused float to fail which added pressure to already shaken financial setup which resulted in crash of entire system.
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