A Crisis of Trust: Importance of Customer Service Excellence in Establishing Trust - Essay Example

?A Crisis of Trust: Importance Service Excellence in Establishing Trust Part One The s are considered as the lifeblood of the business industry; therefore, it is important for business organisations to gain their trust and loyalty. In line with this, they employ customer service excellence in order to get and maintain a good rapport with their customers. By definition, customer service is the ability of an employee to deliver the product or service in the fastest yet most professional manner (Churchill & Frankiewicz, 2006). In relation to definition, many businesses and corporations may be aware of the importance of customer service to business transactions, but only few are cognisant of the aggregate impact of customer service. According to Jackson (n.d.), financial services in the United Kingdom have gained the highest loss of customers due to their poor customer service. Many of their customers end up transferring accounts to the competitors. Most of the customers ages 27-43, in relation to the repetition of the same poor service, are being forced to wait for a long period, customer service representatives do not have prior information of the client, and the inability to transfer from one communication medium to another. Also, the NatWest and the Royal Bank of Scotland have been named as two of the few financial services that have a poor customer service. For this reason, the two banks have to pay ?2.8 million for the inadequate and poor response of customer’s complaints. It has been found out that customers of the banks are unfairly treated due to the latter’s inability to handle complaints in a proper way. Furthermore, banks are also incapable in addressing immediately and timely the customer’s complaints they received. Along with this, customers are not informed of their rights, especially their rights to complain to the Financial Ombudsman. The Financial Service Authority (FSA) has investigated the banks, and it has been found out that their customer service representatives are not properly trained for the job (Evans, 2011). The result of the FSA investigation supports the findings of Jackson (n.d.) in which a poor or inadequate customer service will lead the business to loss of income. Hence, an effective customer service excellence is essential in establishing the consumer trust. With this on hand, this paper will further analyse, in a critical manner, how to employ an effective customer service excellence strategies in order to build and sustain the trust of customers in today’s organisations. Part Two 1.0 Customer Service Excellence In any business, customer service is one of the most important elements in gaining consumer trust. This is important as business transactions are done in a two-way manner. This two-way process brings more risks to the consumer; however, with trust and reliance, the consumer expects to gain an honest and reliable business transaction. Therefore, consumer trust is the ability of the customer to expect that the transaction with a service provider or a product provider will be successful (Asperin, 2004). Customer service can be successful as long as the range of the product fits the needs, desires, and expectations of the customer. Also, the delivery system of the business must be efficient along with its environment. Another factor that affects the excellence of customer service is the technology used to facilitate the customer, as well as employees’ efficiency (Churchill & Frankiewicz, 2006) 2.0 Customer Service Strategies Business goals, mission statements, and vision statements, and many more are essential to give directions to a business. However, it is crucial to know the customers of the business and create specific strategies to be used for customer service. A customer service strategy is one of the fundamental parts in molding a business towards success. The following strategies can be applied by businesses or today’s organisations in order to build a strong foundation of trust from customers and to be able to sustain it. 2.1 Hire and Train the Right People One of the fundamental keys to an excellent customer service strategy is the people who have the appropriate skills and educational background in customer service. Aside from these two basic prerequisites, a hiring manager must give a high consideration on the customer service attitude of the applicant. It is important to remember that skills can be taught easily while attitudes are already embedded in a person. Also, the hiring process must not be bias or subjective. However, during the job interview, the interviewer can ask situational questions in line with customer service activities and situations. These questions must be open-ended in order for the candidates to answer them in detail. After the crucial process of hiring, using the appropriate training techniques and methods must then be employed. Prior to the training per se, the customer service representatives must first be acquainted with the company's history, policies, and other necessary information. This is important so that newly hired employees will be able to align their existing customer service skills toward the customer service environment of the organisation (Blacharski, 2006). 2.2 Person-to-Person Contact with Customers Another customer service strategy is the ability to consider the customers as the center of the business. This can be successfully implemented when the strategy, values, and vision of the business are aligned towards the customers. One of the companies that had practiced this is Tesco. The latter has considered this strategy and created a three to five year model in order to implement their change of perspective. This strategy was also elicited by Pret A Manger, which is a food chain store. Once a month, the head of the store, along with the managers, prepared sandwiches for customers in order to build a relationship not only with the customers but also with the front-line employees. In this way, senior managers would be able to elicit their sincerity in putting the customer first (Cook, 2004). This strategy can be best supported by the individualised consumer approach. There may have been rapid competitive changes in the business landscape, but the fact remains that when customers are approached individually, there is a high chance of gaining their trust. In this manner, the individual information of customers will be used to gain their trust and confidence (Brink & Berndt, 2008). As with the cited example in Pret A Manger, the direct interaction of senior employees to customers will allow them to see their needs, wants, and desires at first hand. With this information, the fast food chain will be able to supplement its current strategy in order for it to be more effective and efficient. The personal contact with the customers will also build their trust with the business due to the strategy’s ability to give a direct value. 2.3 Gateway Retail Stores Strategy Gateway retail stores were established by Kent County Council along with 12 other districts in Kent. Gateway was born out of the desire to enhance the service towards the council's customers. Prior to the establishment of Gateway, Kent County Council underwent an audit and assessment on the practices in achieving an excellent service. In this manner, the council compared itself to retail stores that offer different types of services to the community. The result of the audit and assessment brought the establishment of Gateway along with the development of service strategies. These service strategies include self help for customers in gathering information by rendering free internet, different payments kiosks, and service directories. Other strategies incorporated are the advising section and the convenient transactions for bus passes, licensing, and many more. Lastly, services among different agencies are included for the convenience of customers, such as adult education, benefits, council tax, and housing. With this on hand, the main goal of Gateway is to offer a unique and efficient mix of services towards the customers who are part of the community (Cook, 2011). The type of strategy that Gateway uses not only establishes trust towards the customers, but it also maintains and supports the relationship. As an evaluation, the strategy can still be considered on a personal level; however, it is communal. The Gateway’s approach is a convenient form of customer service, which brings the customer back to the enterprise. It does not only offer personal assistance, but it also offers an array of product and service. The Gateway strategy is collective because it is also done on a personal level that brings efficiency and accuracy on their rendered customer service. 2.4 Give Respect and You Will Earn Respect This is the customer service strategy of Wycombe Wanderers, who won the customer service award in 2008. The club directors developed a customer strategy, which is to “treat people with respect, and they will give it back” (Cook, 2011, p.56). This strategy is based on being polite and friendly to their customers. In relation to this, the Braintree District Council also has a similar but much concrete customer service strategy with Wycombe Wanderers. They set up an outline of their organisational purpose, which includes sustaining a high-quality life for customers or residents. In order to do so, the council aims to provide quality and efficient customer services that can be delivered by maintaining and developing staff through trainings, support, and respect. Lastly, the council aims to render service in a business-like process and achieve goals and targets. Furthermore, the strategies they developed are anchored on the principles of customer’s focus, as well as the efficient and continuous successful delivery of services (Cook, 2011). In line with this, the customer service strategies of Braintree District Council and Wycombe Wanderers are supported by the concept of expectations from customers (Mudie & Pirrie, 2006). In this manner, the establishment and continuous trust of customers to these organisations is due to customers’ level of involvement during the process along with their past experience and recommendations. As the Wycombe Wanderers treat their customers with high respect, the latter will eventually become loyal as they meet their expectations. Likewise, customers can easily participate as the Braintree District Council intends to achieve goals through an efficient process because of an efficient and open communication. 3.0 Critical Analysis and Evaluation Customer service is one of the building blocks of an organisation in achieving success. In order to achieve excellence in customer service, there are many strategies that can be applied. The most powerful strategy for businesses is to employ the right people or those with the customer service attitude, which are in line with the company’s customer service approach and environment. Thereafter, these newly hired employees must be trained and must be acquainted with the company’s customer service approach. This must be well established so that the company’s goals and customer service strategies be in line with those of the employees. Another strategy is for businesses to interact and establish a customer-staff relationship with their senior and front-line staff. For small businesses, this can be done by using the information and statistics of their customers in order to strengthen and establish trust between the two parties. This can be a crucial step for them, but it will surely bear trust along with profit and loyalty from customers. For large businesses, a collective strategy can be applied by catering to every customer. This can be done by segmenting the customers into sub-groups and creating definite customer service approaches for the different sub-groups. Lastly, businesses, may it be small or large, must give respect towards the customers, while rendering service, to maintain their trust and loyalty. In this manner, today’s organisations will be able to amount to the expectations of customers. Hence, if customers’ expectations towards the customer service excellence will be met, then organisations will not only gain customer’s loyalty, but also their trust as they will be referred to other potential customers. 4.0 Conclusion The literature and discussions bring the paper to a conclusion that effective and efficient customer service strategies strengthen and establish trust from the customers. It is an indispensable tool that organisations in all business contexts need to practice and enhance for them to have a sustainable growth. These strategies are essential factors that must be employed and considered when creating approaches on customer service. Nonetheless, the most significant factor among all is to have the right employee and excellence in practicing customer service will eventually follow. Reflective Journal As I did my coursework, I have learned that one of the most important management skills is planning and getting things done ahead of time. Along with this, research with the appropriate and substantial materials is necessary in order to finish the coursework. With this on hand, I had encountered a hard time in finding the appropriate literature for the coursework. Also, I had to critique and analyse the references first, which was followed by creating an outline for my coursework. Moreover, I had to choose the appropriate strategies, along with the existing theories, to achieve substantial analysis. With the experience I have gone through, I have learned that advance research must be incorporated with any task. Also, it is essential to logically arrange and support every aspect of coursework to gain a smooth transition within the paper. In relation to the learning outcomes, it was easy to grasp the importance of customer service to any business. I learned that it did not only play a vital role in gaining profits, but it also aids in the furtherance and growth of organisations. In addition, there is a need for employee’s participation, particularly the senior staff. Furthermore, I found it difficult to incorporate an extensive range of academic resources aside from textbooks. Nonetheless, I decided to utilise textbooks and online newspapers as my sources because I found in them the relevant information. I sought after references that are current and complete, and the sources that I have chosen have the necessary information needed for my coursework. In totality, I believe that I have covered the necessary learning outcomes for this assignment. In my opinion, I have given relevant facts and information, and analysed or used critical thinking in order to support my analysis on the given topic. Also, I have used the appropriate references and logically presented the facts and analysis, which I believe is the most essential part of the coursework. With that said, I strongly believe that I have performed to the best of my abilities to create a substantial coursework. References Asperin, A.E., 2004. Exploring brand personality congruence: measurement and application in the casual dining restaurant industry. Ph. D. Philosophy. Kansas: Kansas State University. Blacharski, D.W., 2006. Superior customer service. Florida: Atlantic Publishing. Brink, A. & Berndt, A., 2008. Relationship marketing and customer relationship management. South Africa: Juta and Co Ltd. Churchill, C. & Frankiewicz, C., 2006. Making microfinance work: managing for improved performance. Geneva, Switzerland: International Labour Organization. Cook, S., 2004. Measuring customer service effectiveness. England: Gower Publishing Limited. Cook, S., 2011. Customer care excellence: how to create an effective customer service. London: Kogan Page Limited. Evans, R., 2011. NatWest and RBS fined ?2.8m for poor complaint handling. The Telegraph, [internet] 11 January. Available at: http://www.telegraph.co.uk/finance/personalfinance/consumertips/ banking/8252180/NatWest-and-RBS-fined-2.8m-for-poor-complaint-handling.html [Accessed 6 January 2013]. Jackson, L., n.d. The cost of poor customer service. [Online] Available at: http://www.europeanbusinessreview.com/?p=1467 [Accessed 6 January 2013]. Mudie, P. & Pirrie, A., 2006. Service marketing management. Oxford: Butterworth-Heinemann. Read More