Customer Service - Assignment Example

 (a) The current CEO of Kangaroo Car Rentals clearly has a definite view on what constitutes quality customer service, to the extent that his corporate slogan is to ‘delight the customers’. With this mindset, put yourself in his/her shoes and document how you think he/she would define quality customer service to staff at Kangaroo. “Quality customer service (is) the ability of an organization to constantly and consistently exceed the customer's expectations." The CEO might use quality service as a core competency to attain competitive advantage. In his view, a company may attempt to differentiate itself from its competition through the provision of better customer service. The consistent delivery of superior service requires the careful design and execution of a whole system of activities that includes people, technology, and processes. Although, the rewards will include improved revenue from customers that are impressed with the service provided. Quality customer service is attained from employees through: Communication skills Good Telephone skills Effective face to face interaction with customers The art of listening to customers Monitoring and measuring effectiveness (b) As an important element of internal customer service ‘open internal communication has a critical impact upon the motivation (or demotivation) of people who work in your business and is a key element to maintaining team work, higher productivity, less absenteeism and the creation of harmonious relations between employees and external customers. The Sales Manager at Kangaroo has made some clear cut decisions on strategies which will support the CEO’s corporate slogan of ‘Delight the customers’. Briefly explain how quality internal customer service could have helped the Sales Manager to foresee the financial implications of these decisions. (150 WORDS) (20 MARKS) The implementation of a particular customer service proposition must consider several elements of the organization, including Culture Hiring Training Incentives Processes Support Technology The Sales Manager at Kangaroo must consider all the above criteria before implementing the customer service. To Understand these attributes, the sales manager must have an informal network with the employees and understand their needs and wants. On doing this, an excellent internal customer service will develop. This would help the sales manager in understanding the problems of employees and develop a system to foresee the events to be strategized in discussion with employees. Some examples include: The sales manager might plan a campaign like “The Best Customer Award” or any other special incentive or contests and foresee its financial implications after delegating the work to his employees. By having a good network and relation with employees and having an internal customer service will surely help the sales manager make critical decisions and it will be supported by employees and Top management. By having this decision making power, the sales manager could easily achieve the objective of “Delight the customer”. Question 2 (70 Marks) You are at a conference of hotel managers and find yourself in conversation with Helen (who is the manger of the best five-star hotel in town) and Damian (who manages the local backpackers hostel). Both managers state that: their year-to-date profits are well in excess of target their customers expect ‘excellent levels of service customer satisfaction research show that they are both exceeding these expectations. (a) Briefly describe what you perceive to be the customer characteristics that separate Helen’s market segment from Damien’s market segment. (100 WORDS) (10 MARKS) Helen’s Market Characteristics The Technical Customer is interested in a factual, detailed explanation for the product and is on the alert for any inaccuracies or hesitations in describing the product. The Silent Customer will not talk, but does think. Lack of response may give the salesperson the impression that the customer is indifferent, but is listening carefully. The Timid Customer is ill at ease, inhibited, and sensitive. Sometimes the customer is shopping in a higher price range than the customer has been accustomed to, and may be unsure of own judgment. Luxury is the main focus here. Damien’s Market Characteristics This customer respects brevity. The Decisive Customer knows what he/she wants, is confident that what he/she wants is right, and will not tolerate another opinion. The Argumentative Customer is prepared to take issue with any statement tends to disbelieve selling claims, is cautious and slow to decide. The Procrastinating Customer is the type who likes to postpone the decision to another day. She is insecure, lacks confidence in her own judgment, but is usually affable and willing to listen. Price i.e. low cost is the main characteristic considered here. (b) List what you would assume to be the service needs and expectations of each of the market segments. (200 WORDS) (20 MARKS) Customer needs may be defined as the goods or services a customer requires to achieve specific goals. Different needs are of varying importance to the customer. Customer expectations are influenced by cultural values, advertising, marketing, and other communications, both with the supplier and with other sources. Both customer needs and expectations may be determined through interviews, surveys, conversations, data mining or other methods of collecting information. Customers at times do not have a clear understanding of their needs. Assisting in determining needs can be a valuable service to the customer. In the process, expectations may be set or adjusted to correspond to known product capabilities or service. A company can define its target market but fail to correctly understand the customer’s needs. Understanding customer needs and wants is not always simple. Some customers have needs of which they are not fully conscious, or they cannot articulate these needs, or they use some words that need some interpretation. Helen’s Market needs and wants Luxury Quality customer service Infrastructure - National and International conferences and events – Buffets, cocktail etc., Prestige Status Potential product level focus Damien’s Market needs and wants Low cost Quality customer service Short period of stay Expected product level focus (c) For each hotel choose one of the needs or expectations that you have identified List the service standards that you, as manager, would put in place to ensure that the need or expectation was met. Against each service standard that you have identified, list the actions that you would expect the hotel and its staff would need to take to ensure their service meets that particular standard. (200 WORDS) (10 MARKS) Helen’s Need – Luxury Service Standard – Experience pleasure like heaven Actions Professional service – Staff must be in uniform and trained professionals from catering institutes. Value Addition – Maintaining a high end infrastructure like swimming pool, clubs, restaurants, etc. Adequate Finance – Money shouldn’t be a limiting factor. Damien’s Need – Low cost provider Service Standard – Lodging and dining at lowest price (Say $x) Actions Cost Cutting to the core Quality customer service – staff’s responsibility Cleanliness (d) Using the standards that you have developed for one of the hotels (ie either the five star or backpacker) in (c) above as the basis for the questions, design a simple customer service survey to ascertain whether the current level of service offered by the chosen hotel meets and/or exceeds customers’ expectations identified in (b) above. You will need to include an introduction to tell the customers what you are doing. Remember to keep your questions simple and your measurement criteria consise. (200 WORDS) (20 MARKS) CUSTOMER SERVICE SURVEY The X Five star hotel would like to provide you with the best possible service and your input is vital to our success. Please help us serve you and others better by taking a few minutes to answer the questions below. Thank you for responding. Sarah, Secretary for the X Five star Hotel Top of Form What was the nature of your contact with us? General Information Problem Resolution Technical Assistance Room Service Infrastructure Other:   Check As Appropriate STATEMENTS Strongly Agree Agree Disagree Strongly Disagree No Comment Or N/A Staff was courteous and helpful Staff provided complete, accurate information to you. A timely response was provided. My overall experience was positive. Please indicate the name(s) of any staff person you would like to commend: Comments: If you feel we fell short in meeting your service expectations, please describe the situation, including name of the staff person involved and the date the incident occurred. As a result of your experience with us, what service-related improvements can you recommend? Optional Your Name: E-mail Address: Daytime Phone: Mailing Address: City: State: Zip Code: Bottom of Form Voice: (916) 324-6407232 FAX: (916) 445-2584466 X Five Star Hotel, California Branch – z11234 ASSIGNMENT PART 1 – Customer needs 1 Write a brief description of the business you have chosen to use as a case study. (100 WORDS) 85% of Australia Car Rental Market Available Online Renting a car in Australia has never been easier thanks to the many online car rental agencies now making it as simple as a click of a button to compare prices and availability. The Australian Car Rental industry is now booming and has the internet to thank. Brisbane, Australia (PRWEB) April 19, 2007 -- Discovery Car Hire is the first of the web agents to provide consumers access to 85% of the online car rental market in Australia. Their website allows customers to browse, compare and book a car from the 5 leading suppliers in Australia -- all on one website. According to Mr Scott Walton of Discovery Car Hire, "Currently the top 5 suppliers, Avis, Budget, Europcar, Hertz and Thrifty represent 85% of the car rental business in Australia. Discovery Car Hire has revolutionised how a consumer can rent a car by offering our customers a single website to compare these top suppliers prices, vehicles and availability." The online Car Rental Market is growing significantly with more and more customers seeking an instant and time saving solution. The new web based systems make online reservations a more convenient and simpler way of securing a vehicle without having to surf 5 separate sites. Whilst the concept is not new, the simple to use availability system and the amount of vehicles and suppliers you can choose from is a first. Using an online car rental system also offers many advantages, such as no deposit required, not credit card required to book, hassle free cancellation and no payment of rentals until pickup of vehicle. All these benefits, along with the convenience of being able to compare all the major suppliers in one place makes booking online the easiest way to secure your next vehicle. 2 Identify its internal, intermediate and external customers. Describe their characteristics and their needs. (250 WORDS) Internal customers Staff Sales Manager Office Manager Finance Manager Chief Manager Budget Officer Leasing Officer Sales reps Counter sales staff Secretary Clerks Typists Characteristics and Needs The Buck-Passing Customer is likely to say she must talk it over with her husband or family. If this is a real uncertainty and not an excuse to drop the whole transaction, the salesperson must try to establish him as the advisor on whom she can lean. She can be led to her own decision by getting her to agree on small points, drawing her out to express her own opinion, and using these agreements and opinions to bring the sale to a close. The Wavering Customer is unable to make up her own mind easily, is anxious and fearful of making a mistake, and is really grateful is the salesperson helps her to make up her mind. She wants the salesman to be her advisor, but she is not just interested in ditching the responsibility she wants to be sure she has done the one right thing. The salesperson must emphasize the many merits of one item, basing his talk on the needs and doubts that she has expressed. Intermediate Customers Financial Institutions Car Manufacturers Business publications Newspapers Characteristics and Needs The Customer is interested in a factual, detailed explanation for the product and is on the alert for any inaccuracies or hesitations in describing the product. The salesperson should provide as technical a presentation as possible, emphasizing laboratory tests, construction, materials, and the manufacturing process. He shows the content label or any other tag attached to the merchandise and volunteers information on care of the product. External Customers Corporate Tourist and Travel Agencies Common Public Educational Institutions Characteristics and Needs Consider the customer who says he/she wants an inexpensive car. The marketer must probe further. The marketer can distinguish among five types of needs: 1. Start needs (the customer wants an inexpensive car) 2. Real needs (the customer wants a car whose operating cost, not its initial price is low) 3. Unstated needs (the customer expects good service from the dealer) 4. Delight needs (the customer would like the dealer to include an onboard navigation system) 5. Secret needs (the customer wants to be seen by friends as a savvy consumer) The Silent Customer will not talk, but does think. Lack of response may give the salesperson the impression that the customer is indifferent, but she is listening carefully. The salesperson must use direct questions to draw out this customer; keep the sales talk straightforward, factual and brief, emphasizing his knowledge of the product. The biggest difficulty here is to catch the buying signal. Watch her eyes to determine what interest her most. The Shopping Customer may not be interested in buying today; she is looking around, entertaining herself, and perhaps just getting an idea of the merchandise the store is offering this season. The salesperson should show merchandise with courtesy and enthusiasm, keep alert for buying signals for she just might make up her mind to buy something now, and give her a good experience with the salespeople of the store and its excellent service. 3 What customer records are kept by the business that would assist it to identify customer needs? What use is made of business technology in this process? (150 WORDS) Customer records Age Gender Marital status Occupation Annual Income Family details Contact number Place of residence Date of Birth Anniversary date Service dates Suggestion database Complaints register Acknowledgement letters Billing History By maintaining a database of the above records, the customer needs can be identified to a certain extent. In fact, a separate a CRM solution has to be implemented to maintain these records. This is where technology comes into picture. Technology has made available a wide range of customer service tools. They range from support websites and the ability to have live chats with technical staff to databases tracking individual customers' preferences, pattern of buying, payment methods etc., and tailoring products and service responses based on this advanced data. Specialist software that is designed for the tracking of service levels and for helping recognize areas for improvement are often integrated into other enterprise operational software tools such as ERP software. 4 Using Table A attached, detail the expectations of your customers. You can also use Table A1 as a guide. Quality A good vehicle with smooth engine No repairs Inconveniences through breakdowns Delivery Online orders. Telephone orders Quick delivery at door step. No long waits for service. Scheduled delivery with clear cut timings Price/value/value added Cheap and Best Discounts Cancel charges Gifts Freebies Customer Loyalty programs Billing/payment Online payment system A separate billing department Collect money at door step All repeat customers (identified through the company’s database) are provided with upgraded vehicles at no extra cost as a statement of appreciation for their continuing patronage. PART 2 – Implementation of strategies 1 Using Table B and C attached, detail the superior service standards that you will develop. Accessibility and customer friendliness Service with a smile at your doorstep All forms of contact with customers Achieve 100 % Transparency through proper communication through Online, Telephone, direct marketing etc. Product knowledge and specialist skills Equipped with high end technology related infrastructure Making sure the customer is satisfied Excellent customer service control system to ensure that the customer is delighted. Quality, accuracy and efficiency of system(s) Fast, cheap and best service providers 2 Describe the actions you will need to take in order to implement any changes required to ensure the best service standards are in place. In your answer, also consider: the resources and budget you may require how you would coach or mentor staff to implement these changes. (250 WORDS) Technology Savvy A customer relationship management system totally online must be established. This will ensure 100% transparency both within the organization and also with the customers. Technology has made available a wide range of customer service tools. They range from support websites and the ability to have live chats with technical staff to databases tracking individual customers' preferences, pattern of buying, payment methods etc., and tailoring products and service responses based on this advanced data. Specialist software that is designed for the tracking of service levels and for helping recognize areas for improvement are often integrated into other enterprise operational software tools such as ERP software. Budget Requirements Fixed cost ERP package Software: $15000 * ERP Implementation : $25000 * Variable cost ERP Maintenance: $10000 a year * Skilled labor: $2500 a month * Note: * Represents that there will be a change in price depending on the complexity of processes. Mentoring - Staff Empowerment Staff are empowered to act generously towards customers who have legitimate complaints such as inconveniences through breakdowns, the vehicle requested not being available or unacceptably long waits for service. They can discount, cancel charges or upgrade to ensure that the customer’s grievance is adequately addressed. Staff must resolve the customer problems at the basic level and must ensure that no problem is carried over to the Top Management. Budget Estimate Training = $15000 3 Consider a situation where a customer may come to you with a complaint. It may relate to a product purchased from you, a service provided by you or your employee or other situation. Describe an effective method of dealing with this dissatisfied customer that will ensure the customer keeps coming back. (250 WORDS) Don’t talk a word against the dissatisfied customer. Remain silent until the customer finishes his complaints. After the dissatisfied customer stops talking, give him a cool drink and maintain the seriousness and consider the customer very specially. Respect the customer and solve his problem at once. The Method adopted to solve the problem is Identify the problem of the customer Break the problem into several components Solve each problem component separately Delegate the problem to employees Solve the entire problem Make sure that the dissatisfied customer is aware of all this Finish the complaint cost free. This will ensure that he comes back. PART 3 – Evaluation of customer service 1 Identify alternative methods the business will use to measure and record customer satisfaction levels in relation to the outcomes of improvements suggested in Part 2. (250 WORDS) Surveys and Questionnaires This is the oldest and effective method to measure and record customer satisfaction levels. Nowadays, online surveys are gaining popularity and are widely used to collect data. Customer Feed back forms are also included in surveys. Direct Interviews Direct interview with the customer and recording the feedback is another option. Telephonic conversation Data could be collected from the customer through telephones also. 360 degree feedback This is the most commonly accepted sort of feedback or collecting data. Here, the feedback is collected from the customers, Top management, Suppliers, Stake holders, clients, employees etc. and the data is recorded for evaluation. These are some methods of recording and measuring customer satisfaction levels. 2 Design a customer survey for the business. Ensure you state: the objective To achieve 100% Customer delight. issues to be addressed Unlimited Mileage / Kilometres (except some of Australia), Third Party Insurance Theft Protection Collision Damage Waiver (CDW) subject to an excess (Excluding USA), 24 Hours Local Auto Club Breakdown cover Country VAT / GST Taxes Insurance etc. Prices Prices shown are for the appropriately priced car rental in each destination. We Guarantee NO surcharging of the rates quoted to you on the Invoice once full final payment has been received by us. Other Government and State Taxes and charges excluded. Period of Rental The minimum rental period in most European and Canadian destinations is three days. Please check at time of booking for those destinations which offer one-day hire. In the USA and Australia the minimum rental period is one day. The maximum rental period in the USA varies - please check at the time of booking. Rental days are based on 24 hours. The price is determined by the start date of the rental. If you wish to extend the rental period after the collection of your car, or if you return the car late, you will be charged locally at the local daily rate - which may be higher than our rates. No refunds are payable on vehicles returned early. Flight Information For airport pickups it is essential that we are given the correct flight number and arrival time, before issuing your voucher. If this is not available at the time of booking, please ensure that you inform us of this at least seven days prior to departure. If the information is not provided in time, no responsibility can be accepted or compensation allowed for a failed rental. Deposits Deposits vary by destination. All clients must produce a valid credit card in the name of the driver upon collection of the car as a form of deposit. Cash deposits are rarely accepted. A deposit is often payable for petrol (gas) and it is usually refunded if the car is returned with a full tank. If the tank is not full, petrol (gas) used will be charged by our local supplier at its prevailing rate. Please check the petrol (gas) policy when you pick up your car. Deposits against damage are required in some European countries and a major credit card can be used for this purpose. Driving Restrictions Restrictions are applicable when crossing country /state borders. Please advise our reservations department at the time of booking if you plan to drive out of the Country / State / Province where vehicle is collected. Charges may apply locally for extra insurance. Insurance Exclusions and Excess In common with most car rental companies the insurance cover offered by many of our suppliers does not cover tyres, windscreens, the roof, the underside and interior of the vehicle and towing charges. You may therefore be liable for damage to these items. Most suppliers also impose an excess which will be advised at the time of collection. This means you are liable for the first part of any insurance claim. Insurance cover is not provided for contents of the car in case of theft. Car Type/Suitability The Company is unable to guarantee a particular make or model of car. The cars shown on his web site and on your voucher will generally be available but may be substituted for an alternative similar or upgraded car (at no extra cost) If you are dissatisfied in any way with the standard of the car, you must advise the local supplier immediately and in writing within 21 days of the return of your vehicle. The Company cannot accept liability where this procedure is not followed. Mechanical Difficulties/Accidents In the event of any mechanical difficulties or accidents involving your rental vehicle, it is important that details are reported to the local supplier within 24 hours. The local police should also be notified in the case of accidents and a signed police report obtained. Full details of third parties should also be obtained. Authority to repair or replace a vehicle must be given by your local supplier whose name nd contact details are shown on your rental agreement. You should retain copies of all rental documentation in the event an insurance company is involved. Compensation cannot be considered when this procedure is not followed. how the survey will be conducted. The Steps in a Survey Project 1. Establish the goals of the project - What you want to learn 2. Determine your sample - Whom you will interview 3. Choose interviewing methodology - How you will interview 4. Create your questionnaire - What you will ask 5. Pre-test the questionnaire, if practical - Test the questions 6. Conduct interviews and enter data - Ask the questions 7. Analyze the data - Produce the reports * Survey design same as previous customer service survey with the above issues included. Reference: 1) Kotler, Philip. Marketing Management, Eastern Economy Edition, Prentice-Hall India Ninth Edition, 2004. 2) http://www.opa.ca.gov/contact/survey.asp 3) www.millennium-mktg.com 4) www.wikipedia.org 5) http://clk.about.com/?zi=18/1HD&sdn=sbinfocanada&cdn=money&tm=5&gps=55_46_1020_612&f=00&su=p554.2.150.ip_&tt=8&bt=0&bts=0&zu=http%3A//sbinfocanada.about.com/ 6) http://www.lead-edge.co.uk/welcome/welcome.html 7) http://www.bizjournals.com/albany/ 8) http://www. globalCARS.com.au. 9) http://www.prweb.com/releases/2007/4/prweb519892.htm 10) http://www.surveysystem.com/sdesign.htm Read More