Measuring Up to Customer Expectations - Literature review Example

? Measuring Up to Expectations Measuring Up to Expectations Executive Summary The success of any business is pegged primarily on numerous factors; a business plan that is both realistic and well thought-out, an effective market strategy and great customer service. Although the element of customer service is part and parcel of market, it is distinguishable as a distinctive field on its own (Aaker 2010, p. 141). It is critical for an organization to define the term customer service in order to ensure efficiency. Customers provide organization with the most pertinent advertising tool; advertising through word of mouth. This means that happy and satisfied customers are exceedingly likely to send other customers to the organization (Barlow & Stewart 2004, p. 84). Additionally, the potential for repeat business is a critical element in most businesses. It is, therefore, evident that customers whose needs have been satisfied will build strong relationships with the organization. Introduction The management of customer relationship teaches businesses the existence of flaws within the system and provides indispensable customer feedback. When businesses receive feedback, they are able to perceive the customers’ images of the organizations, as well as the impression of their services. This tool is indispensable in rectifying systems and organizational image management. Effective customer service is pertinent since satisfied customers are likely to engage in activities, which assist to generate customer preference data, which goes to the marketing function to assist the business, enhance its target and attract additional customers (Baye 2009, p. 68). As a matter of fact, it is a stretch to think that businesses can survive in the absence of effective customer service. The old saying “the customer is always right” continues to be the foundation of most organizations. The inherent message in this adage is that sustaining customers’ happiness is the most critical principle of any business endeavour. The explanation of the survival of most businesses operating within tough and competitive markets is their capacity to offer personalized customer service. This human touch warms, as well as enlivens organizations within the minds of their customers, thereby constructing their relationship, which is the basis of future business growth. Regular, as well as sustained interactions, with the organization’s customers, guarantees that they feel connected with the organization. After an organization grows, the potential for face-to-face interactions with customers diminishes quite significantly, hence the need for the organization to develop innovative ways of guaranteeing customer satisfaction. Therefore, the purpose of customer service to a business, large or small, is critical to its growth and survival. The purpose of this paper is to explore the significance of customer service, discussing pertinent ways of enhance customer service in order to achieve competitive advantage in the business. Main Findings Customer service refers to the provision of pertinent services to customer prior to, in the course of and pursuant to a purchase. Turban et al. (2002, 98) argue that customer service is essentially a sequence of activities that are designed to enhance the degree of customer satisfaction, which is the feeling that a good or service has met the expectation of the customer. However, it is pertinent to realize that the significance of customer service varies rather dramatically by product or service and customer and industry. The distinction of such interaction is primarily dependent on company employees who have to adjust themselves to the guests’ personalities. From the viewpoint of a comprehensive sales process engineering effort, customer service plays a critical function in an organization’s capacity to realize income and revenue. From this point of view, customer service must be incorporated as an integral segment of the comprehensive approach to business improvement. This is because customers’ service experience can dramatically alter their complete perceptions of the organization. According to Selden (1998, 60) the quality, as well as level of customer service, has reduced significantly in the last few decades. This is attributable to inadequate support or understanding at both middle and executive management levels of the business and its customer service policy. In order to address this argument, a vast majority of organizations have devised a number of ways of improving their levels of customer satisfaction, and other essential key performance indicators (KPIs) (Evenson 2005, p. 67). One of the most noteworthy elements of effective customer service is customer support. This refers to the range of customer services provided with a view to help customers in making cost effective and appropriate use of the company’s products. This strategy encompasses planning, trouble shooting, installation, training, upgrading, maintenance and disposal of company products. In a technology company, these services are referred to as technical support. Traditionally, customer service was provided by individuals, for instance, service and sales representatives (Goodman 2009, p. 154). However, following the advent of innovative technologies, technology companies such as Shazam continue to provide customer service through automated means, for instance, through Internet sites. Automated means are quite advantageous since they facilitate the provision of services for 24-hours per day, which can act as complementary to customer service offered by persons. Another critical example of automated customer service applicable in a technology company such as Shazam is the touch-tone phone that often consists of a main menu and the utility of keypads as options, for instance, “Press 1 for English, Press 2 for French” and so on. However, within the era of the Internet, companies such as Shazam face the challenge of maintaining and enhancing the personal experience offered to customers whilst utilising the efficiencies of online business. Online customers are virtually invisible to company employees and vice versa, therefore, it is rather easy for customers to be shortchanged, especially emotionally (Grant 2000, p. 37). However, this absence of tactile and visual presence makes it exceedingly critical for companies to create a sense of personal, human-to-human contact within the online milieu. The company can base its automated means entirely on self service, or it can also base its customer service on the means of artificial intelligence. Instances of customer service through artificial intelligence means include the use of automated online assistants that are visually perceivable as avatars on company websites. Artificial intelligence can allow companies to reduce their training and operation costs, and they are driven by chatterbots, while their primary underlying technology is natural language processing. In recent times, a vast majority of organizations have established robust feedback loops, which enable them capture customer feedback at the position of experience. This has been useful in allowing companies enhance their customer service before customers defect, thereby ensuring the likelihood of the customer returning for more business. Technology has also made it easy for organizations to gain feedback from their customers. Community blogs, as well as forums provide customers the capacity to provide detailed explanations of both positive and negative experiences with the company. A critical challenge in providing customer service is to guarantee that the organization has focused its attention on the appropriate areas scored through the right KPI. Although organizations do not face difficulties coming up with many meaningful KPIs, the primary challenge is to choose a few that reflect the organization’s overall strategy. Further to reflecting the organization’s strategy, a meaningful KPI should also allow staff to restrict their focus to the areas that matter the most (Zemke & Woods 1999, p. 77). This means that an organization should focus on the KPI that will deliver the highest possible value to the company’s overall objective, for instance, improving services and cost sharing. This must also be done in a manner that the company’s staff believes that it has the capacity to make a difference with their effort. Among the massive technology companies in the UK, various features differentiate Shazam from its competitors. By providing three distinctive products, as well as commitment to sustainability, Shazam’s customers appreciate the significance of the company in the technology industry (Turban 2002, p. 97). Shazam holds immense control in its provision of music identification services through mobile phones, and as a consequence, it holds utmost control over the quality of its services. This helps the company develop a competitive advantage. Additionally, Shazam employs technology specialists, and its innovative and fresh business focus is reflected in its overall recruitment approach. Superior quality customer service is a prominent way through which the company can differentiate itself from its competition. Shazam’s customer service is quite simple; to offer the best customer service through the development of the best trained and highly motivated employees in an environment in which the most successful technology companies compete for a share in the UK market. The company’s specialists must work to ensure that customers receive personalized services from trained professionals (Blanchard, Bowles, Adamson, Borges & Mollard 2004, p. 124). Therefore, by developing high levels of customer satisfaction, Shazam creates a substantive competitive advantage over its competitors. The key components of superior customer service include information, specialist attention, convenience and after sale services. Information encompasses the provision of information directly to customers through staff. Specialist attention is pertinent in the technology industry where accurate advice is required to be readily available to customers. At Shazam, this must include expertly trained technology professionals with the capacity to deal with complex technological issues. On the other hand, after-sales services consider all areas of customer involvement pursuant to a sale. This consists of, among others, packaging, complaints, guarantees, exchanges and refunds (Snow & Yanavitch 2003, p. 115). Shazam’s competitive advantage is pegged on the presence of helpful and friendly employees who deliver exceptional check-in and checkout experiences to assist in customer retention. The last key component of superior customer service is convenience. This encompasses the company’s location of its stores, availability of convenient public transport, ease of access, car parking and convenient payment methods, for instance, credit cards and cash. Conclusion In order to offer the best customer service, businesses need to be aware of what their customers expect of them before meeting these expectations. Customer satisfaction is essential in sustaining customers’ happiness and loyalty to the business. It is more cost-effective to keep hold of the existing clientele than to attract new ones (Leland & Bailey 2006, p. 73). Companies achieve this by offering services that are not necessarily provided by its competitors, thereby maximising customer retention. Companies need to invest heavily in developing and training their staff in order to generate their high quality customer service and attract new customers. This will show that customers are increasingly becoming satisfied with the company’s concentration on efficiency, quality, personal service and reliability (Selden 1998, p. 60). Quality customer service enhances value since it improves the experiences of customers, enabling them to feel valued, thereby enhancing their likelihood of being repeat customers. Customers typically expect to be viewed as valuable and to be helped by friendly employees. They require concise information and effective after-sales services. They also desire their inquiries to be treated with speed, competence and accuracy; hence they seek value for their money deliverable through highly knowledgeable employees. A critical element of customer service KPIs is their reference to the “feel good factor” whose aim is to help customers have good experience that exceed their expectations (Hsieh 2010, p. 157). This is, however, achievable through adherence to a number of critical ways: knowing the company’s products and services. Information expertise entails knowledge of the products offered by the organization to guarantee that customers are not left with unanswered questions. Another critical factor is communication or body language. Positive body language includes maintaining eye contact and smiling at the customers to ensure they feel valued. Lastly, anticipating customers’ needs and going the extra mile to assist them, thereby helping customers achieve the feel good factor. Recommendations Since customers are the most essential person in a business, it is vital that businesses ensure their satisfaction. As with all service oriented organizations, it is vital that Shazam portrays a favourable initial impression with its customers. It is critical for the company’s survival to possess as many favourable initial impressions as possible. This means that there is a need for the company to improve its customer service through a number of ways (Griffin 2002, p. 154). Firstly, the company must treat its customers as its most valuable stakeholders by providing them with the same level of superior service offered to other stakeholders such as company owners. Secondly, employees need to ensure that customers feel at home by being courteous and allowing the customers to feel appreciated for choosing to do business with the company. Additionally, the company should offer its customers the best value for their money by ensuring the quality of the services and products offered. Moreover, all employees should be ready to do more than their job descriptions require in order to ensure customer satisfaction through excellent service provision (Zeithaml, Bitner & Gremler 2005, p. 59). Moreover, the company should train its employees to ensure they can resolve all complaints to the satisfaction of the customers. The way employees handle complaints determines whether or not customers will return for repeat business, thus the need to handle all issues in a professional manner to the customers’ satisfaction. It is also critical that company employees are aware that they are disallowed from arguing with the customers; the customer is always right, even in instances where the customer is wrong (Ford, McNair & Perry 2001, p. 94). To a customer, an employee’s approach and reaction is often more important than the incident itself, therefore, company employees must appreciate the importance of apologising. Lastly, in instances where an employee cannot assist a customer, the employee must direct them to people who can, thereby ensuring that customers are never left unattended. A company that adheres to these basic recommendations is guaranteed of success and longevity. References Aaker, D 2010, Building strong brands, Pocket Books, New York. Barlow, J & Stewart, P 2004, Branded customer service: The new competitive edge, Berrett-Koehler Publishers, California. Baye, M 2009, Managerial Economics & Business Strategy, 7th edn, McGraw-Hill/Irwin, London. Blanchard, K, Bowles, S, Adamson, R, Borges, K & Mollard, J 2004, Raving fans: A revolutionary approach to customer service, Random House, New York. Evenson, R 2005, Customer service training 101: Quick and easy techniques that get great results, AMACOM, Washington, DC. Ford, L, McNair, D & Perry, B, 2001, Exceptional customer service: Going beyond your good service to exceed the customer's expectation, Adams Media, Massachusetts. Goodman, JA 2009, Strategic customer service: Managing the customer experience to increase positive word of mouth, build loyalty, and maximize profits, AMACOM, Washington, DC. Grant, J 2000, The new marketing manifesto: The 12 rules for building successful brands in the 21st century (Business Essentials), Texere Publishing, London. Griffin, J 2002, Customer loyalty: How to earn it, how to keep it, California. Hsieh, T 2010, Delivering happiness: A path to profits, passion, and purpose, Business Plus, Brentwood. Leland, K & Bailey, K 2006, Customer service for dummies, for dummies, 3rd edn, New Jersey. Selden, PH 1998, "Sales process engineering: An emerging quality application", Quality Progress, pp. 59–63. Snow, D & Yanavitch, T 2003, Unleashing excellence, DC Press, Washington, DC. Turban, E. 2002, Electronic commerce: A managerial perspective, Prentice Hall, New Jersey. Zeithaml, VA, Bitner, MJ & Gremler, D 2005, Services marketing, 4th edn, McGraw-Hill, New York. Zemke, R & Woods, JA 1999, Best practices in customer service, AMACOM, Washington, DC. Read More