Customer Service Excellence - Essay Example

? Service Excellence (A crisis of trust) Contents Contents 2 Introduction 3 The Case of Google 3 The Case of Starbucks 4 The Case of Royal Bank of Scotland (RBS) 4 Customer Service Excellence 5 Strategies to Enhance Customer Service 5 The 4C Approach 6 Enhancing Customer Relationships 8 Categorising Customer to be an Asset 9 Strategy of Internal Marketing 10 Management of Expectations of the Consumers 10 Concept of Service Gap 11 The Case of McDonald’s 12 The Case of Lexus 13 References 14 Introduction The effects of poor customer service in reducing the elements of consumer trust would be dealt in the paper relating to companies like Google, Starbucks and the Royal Bank of Scotland. Cases would be presented such that where emergence of problem, wrong business decision and lack of transparency has countered a low customer servicing problem for the companies leading to loss of potential trust among the consumers. Further theoretical insights would be rendered in terms of understanding potential service strategies that needs to be developed or followed in by organisations to gain an enhanced space in the target market for its products and services. The Case of Google The level of consumer trust for the online services rendered by Google in terms of operating as an effective search engine and faster networking site has countered problems owing to the failure of the company to sustain the parameter of privacy. Google is found to have entered with a contract with another online advertising firm DoubleClick thereby servicing the same with encrypted information relating to the Internet Protocol or IP Addresses of the users through their clicking on the search engine to retrieve results. This activity of the concern is taken as a breach of trust for the user base spread around the world in that the company failed to inform the same about the reason for their merger with DoubleClick. Moreover the organisation looking after elements concerning electronic privacy also mentioned about the same as a case of deception in trade practices for the online company. This case strongly reflects in how the deceptive practices of Google in terms of its merging with the online advertising company happens to potentially disturb the privacy of users in terms of conducting online surfing. Thus the level of trust for Google actively declines in the online user sphere (Pasquale, 2010, p.405). The Case of Starbucks The case of Starbucks also reflects a reduction in the level of consumer satisfaction and trust in savouring coffee preparations from its different outlets owing to reduction of focus on customer servicing standards. Starbucks is found to focus on moving over to an opening spree where it focuses on opening a large number of different outlets spread along a small region. These large number of outlets created in a closed network tends to increase the level of competition between the different outlets thereby cannibalising its own sales and consumer force. Moreover the company is also found to focus on diversifying into sales of compact discs such that the initial focus of the company on developing its coffee brand goes for a toss. Thus other small coffee brands operating in the same sector are found to gain the lead over Starbucks to help gain over cultivating a larger market share. It is also found that the brand identity of Starbucks in the coffee market is easily copied over by other firms like McDonald’s and similarly by Dunkin Donuts in terms of enhancing their product and service portfolio. This fact adds to the problem of the company in failing to sustain the consumer trust and loyalty (Smale, 2008). The Case of Royal Bank of Scotland (RBS) The case of Royal Bank of Scotland reflects that how the banking corporation happened to strike on a low customer servicing event owing to the emergence of a software problem. The software of the bank was held for up gradation matters that in turn created a problem for the bank executives in servicing the needs of its customers pertaining to banking transactions. The emergence of the technical glitch at the bank happened to cause significant problems for the customers such that long lines of people standing before the gates of the bank were largely noticed. Royal Bank of Scotland apologised to the customers through a customer servicing statement in which it promised to refund the amounts that had been wrongly charged of the customers owing to the cause of the technical glitch. Customers in addition to facing the threat of being charged in an overdraft fashion or extra fees owing to the technical glitch also stated that payments pertaining to salaries or otherwise were not accrued to their accounts. The bank in order to sustain its trusted brand image to its customers was also found to be quoted that the management would evidently work with the credit rating agencies to help the customers get a cushion owing to the loss of credits pertaining to the technical glitch. Similarly the company management also stated that they would be working exhaustively to help the customers from not running in a position of no-cash (Treanor, 2012). Customer Service Excellence Strategies to Enhance Customer Service The first steps that a business organisation needs to take are to enhance its potential in generating effective services to its customers. In that the business managers need to focus on recruiting and selecting the right person for the specific departments to be able to generate the right quality of service to the consumers. The person thus recruited should be embodied with the needed attitude, skills and expertise for meeting the desired ends. Similarly the business management of the concern should also enhance its focus on effectively training the people thus recruited in terms of business objectives. Training must be formulated with a customer centric focus to thereby redirect the interests of the internal people in hailing the consumer brand and face of the concern. The mode of training should be an ongoing process for the concern both on and off the job to enhance the expertise of the people depending on changes in the external environment to meet consumer demands in an enhanced fashion. Business managers also need to set high performance standards for the service delivery processes such that the performances of the individual personnel are evaluated based on such set metrics. This process of evaluating the performances of the employees contributes in enhancing the performance delivery systems for the business concern such that the expertise of each of the different personnel attached to such system is effectively evaluated and feedback rendered for improvement. Business managers must also render effective focus on enhancing the motivation of the inner people to help deliver needed support for generation of the right quality of customer service. Both monetary and non-monetary incentives like recognition and encouragement assists in developing the inner zeal of the people to effectively deliver their best in meeting high service standards. The business managers are also required to spontaneously communicate with the employees and customers to help enhance the level of service dimensions and thereby cultivate a customer focused organisational culture (Blacharski, 2006, p.38-45). The 4C Approach Focusing on developing enhanced customer servicing strategies the business corporations are required to develop on 4Cs like Commitment to meeting the growing needs of the consumer bodies, developing on a totalitarian Customer Servicing job culture in the concern, gaining effectiveness in handling Consumer Complaints and largely focusing on development of service benchmarks depending on market Competition. The 4C approach of business corporations can be effectively highlighted through the following diagram. Figure 1 (Sahaf, 2008, p.149) Firstly the business managers must act in a highly committed fashion in developing the relationship with both internal and external people in a manner of operating in a promising way to fulfil end goals and take care of growing and changing needs. Secondly the business managers must also focus on developing a total service culture in the organisation right from top to down relating to the functioning of sales executives. In each of the different organisational dimensions the culture must be so developed as would focus on effectively servicing the needs and desires of the consumer force. Thirdly the business managers must also focus on effectively handling of complaints filed in by the consumers such that the internal people focus on developing the pattern of communication and relationships with the external people or consumers. Finally the business organisation must also closely focus on enhancing the business standards and benchmarks such that the same matches with the competitive business scenario. Creating business standards and benchmarks depending on the competitive scenario contributes in the enhancement of the business potential in the long run (Sahaf, 2008, p.148-151). Enhancing Customer Relationships The aspect of relationship marketing rests on the premise that business corporations need not only to be focused in gaining customers but also largely needs to sustain the effective customers for future business success. Thus the main focus of relationship marketing is to help sustain the core customers in the business. Implementation of the relationship marketing program requires the business corporations to continually update the changes in the demand cycle of the consumers. Thus effective business insights need to be developed to capture the changes in the consumer behaviour with the range of complaints and other customer grievances and develop business modules to effectively address them so as to sustain long term relationships. The maintenance of large sets of consumer databases to help address their queries and complaints in the long run contributes in the development of effective communication and relationship building activities of the business with its target consumer base. In the current period the retail corporations in order to sustain target consumer groups in its business portfolio is strategising on activities like ‘customer delights’. Focusing on delighting the consumer groups through the use of gifts and benefit packages contributes in sustaining and enhancing the business relationship with the core consumer groups. Strategic consumer relationship programs aim at development of spontaneous relationship of the business with the consumer forces through the enhancement of quality of service and marketing programs (Sahaf, 2008, p.165-166). The process of development of an effective customer relationship program can be elucidated through the following diagram. Figure 2 (Rai, 2008, p.163) The model rendered above reflects a total amalgamation of technology, human and other strategic resources to help the business organisation gain leverage over its competitors in effectively maintaining enhanced relationship with the consumer base. Depending on changes in the firm’s external environment the business corporation is thereby required to continually innovate on its customer servicing actions to help enhance its customer centric focused outlook in the larger target market. Categorising Customer to be an Asset The business corporations operating in the realm of service marketing tend to hold the customers as an effective asset for the concern such that the business concern focuses on enhancing the mode of communication with the latter in the form of advertising and other integrated marketing communication activities conducted like public relations. These marketing and promotional functions of the company are conducted to attract the consumers to increase their purchasing frequencies of the products and services of the company. Similarly enhanced communication practices also contribute in development of long term relationships with the consumer forces. Service companies tend to work on creation of an asset base relating to consumers through activities that would contribute in the growth of experience pertaining to the use of the product or service. Better experience gained by the consumers in their use of the specific product or service contributes in development and sustainment of long term relationships. Again customers are also attracted to the firm’s product and service markets through the continuous word-of-mouth marketing conducted by other consumers that have gained needed experiences in the larger target market. Thus through the above activities the business firms tends to hold the consumer groups as potential asset bases to help in gaining revenues and profitability in the long run (Shajahan, 2006, p.50-51). Strategy of Internal Marketing The process of internal marketing can be effectively incorporated to help enhance the mode of service quality rendered. Internal marketing in terms of enhancing the service quality incorporates the process of developing the quality of services generated through effectively training and motivating the internal people to work in an enhanced fashion satisfying growing consumer needs and wants. Enhancing the quality of service delivered by a highly motivated organisational workforce contributes in the augmenting of consumer trust thereby helping the business to gain in the long run (Beamish, 2012, p.357). Management of Expectations of the Consumers Customers tend to expect a lot from the service and product companies by dearth of positive experiences gained from the same in the long run. Further the customers also tend to gain an outlook for the company in terms of its reputations in the larger target market which in turn augments the level of expectation involved. Similarly the use of large scale promotional and public relation efforts conducted by the company tends to augment the level of word-of-mouth marketing activities. Promotional and public relation efforts contribute in enhancing the level of awareness involved for the company and service delivered and thereby helps in drawing a large number of consumers to the company. An example is this regard can be studied of Ganley Associates that focuses on rendering effective patient services. This company focuses on sustaining effective relationship with both the internal and external consumer groups such that the company management focuses effectively to renew its promotional and communication efforts with the external consumers or patients. Similarly the renewal of the service agreements for the company and enhancement of motivational and work standards contribute in developing and sustaining relationship with internal consumers or employees (Schiller, Miller-Kovach and Miller, 1994, p.29-31). Concept of Service Gap It is observed that potential gap exists between the level of consumer expectations to the quality and standard of service generated and the actual service quality and standard obtained. Firstly the firms tend to suffer from potential gaps in understanding the perceptual level of the consumers or in getting a clear picture of consumer’s expectations about the standard of service rendered. Secondly the service organisations also suffer from the difference in the perception of standards set for the generation of the services. Thirdly the level of perception also differs in terms of the delivery time and standards in between the management and the end consumers. Fourthly the gap exists relating to the perceptual differences of the consumers’ to the company’s marketing and communication efforts. Finally the fifth gap relates to perceptual differences between the consumer and the market to the standards and quality of services generated. The model of service gap discussed can be reflected as under. Figure 3 (Dodds, 2003, p.55) The Case of McDonald’s The management of McDonald’s gained the knowledge that consumer’s tend to expect something more than that of only reduced price tags of the food products delivered. Thus the company management effectively focused on innovation of its service dimensions through the incorporation of potent technologies and also change in operational and service policies to meet the segmented needs of the target consumer base (Dodds, 2003, p.54-57). The Case of Lexus Lexus operating in the automobile market focuses on differentiating its image amongst its competitors in the larger target market through the focus on enhancing its service quality and development of enhanced customer relationship programs. Through enhanced customer driven programs by the company Lexus aims to gain a larger penetration in the automobile market relating to its competitors (Brink and Berndt, 2009, p.59). References Beamish, K., 2012. CIM Coursebook 05/06 Marketing Planning. United Kingdom: Routledge. Blacharski, D., 2006. Superior Customer Service: How to Keep Customers Racing Back to Your Business - Time-Tested Examples from Leading Companies. Florida: Atlantic Publishing Company. Brink, A., and Berndt, A., 2009. Relationship Marketing & Customer Relationship Management. South Africa: Juta and Company Ltd. Dodds, B., 2003. Managing Customer Value: Essentials of Product Quality, Customer Service, and Price Decisions. United States: University Press of America. Pasquale, F., 2010. The Next Digital Decade. Washington: TechFreedom. Rai, A., 2008. Customer Relationship Management: Concepts and Cases. New Delhi: PHI Learning Pvt. Ltd. Sahaf, M., 2008. Strategic Marketing: Making Decisions for Strategic Advantage. New Delhi: PHI Learning Pvt. Ltd. Schiller, M., Miller-Kovach, K., and Miller, M., 1994. Total Quality Management for Hospital Nutr Services. United States: Jones & Bartlett Learning. Shajahan, S., 2006. Relationship Marketing: Concepts and Cases. New Delhi: Tata McGraw-Hill Education. Smale, W., 2008. Why Starbucks' sales have gone cold. BBC News [Online]. Available at: http://news.bbc.co.uk/2/hi/business/7219458.stm [Accessed December 26, 2012]. Treanor, J., 2012. RBS promises to compensate customers affected by computer glitch. The Guardian [Online]. Available at: http://www.guardian.co.uk/business/2012/jun/24/rbs-natwest-ulster-computer-glitch [Accessed December 26, 2012]. Read More