Relationship between Internal and External Customer Service - Essay Example

THE RELATIONSHIP BETWEEN INTERNAL AND EXTERNAL SERVICE By Date Introduction Conventionally, it has been common only to acknowledge customers as only those people who enter an organisation or places product and service orders by fax, telephone or online e-commerce systems. Contrary to such understanding, the modern definition particularly with the recent advent of organisational relations policies defines customers to include the workforce within an organisation who run its operation to ensure success: company’s employees. In actual fact, an external customer is an individual or organization that uses the firms products or services, but is essentially not part of the company (Joseph, n.d). For instance, if the firm is a shoe production line, external customers are individuals that may include retailers and suppliers who enters the firm’s store and buys merchandise. On the converse, internal customers entail individuals or any member of the firm who depends on the assistance from others to accomplish her routine duties. They include individuals such as marketing and sales agents who needs help from a customer service envoy to place an order. Thus the internal customers ensure that the shoes produced are up to external customer’s satisfaction. Whilst, the external (buyers, suppliers, etc.) and internal customers (employees) may execute dissimilar roles; both customers are critical to the feasibility of an organisation. Traditionally, companies may have a natural propensity on only focus on the relationship with their external customers, since they are the ones that buy the firms products and services. However, it has become necessary of late and with increasing recognition of the need to give internal customers the same degree of reliance, for good internal customers’ relationship fosters a healthy working environment. Among the simple initiatives that an organisation can invoke in improving internal customer relations would include changing the culture in an organisation for all employees to think of fellow workers in the same manner as with external customers. The top management should always set an example by appreciating workers’ endeavours and encourage their criticism (PAWAR, n.d.). Such proactive initiatives are crucial to boosting employee’s morale and leading to the flourish of the business. Various relations experts have made commendable opinions of the significance of this relationship. The objective of this essay is decisively to appraise the role played by internal customer service in the delivery of external customer service excellence Customer Service in Relation to Contingency Theory For few decades now up from the late 1950s, the contingency has become instrumental in a number of organisational structures and policies including the customer service operations and efficiency. The argument made by the theory is that there is no single best approach to arrange an organisation (Yuki, 2012). Such is because various organisations will face diverse choices in determining how to structure, how to organise, and how a corporation should be managed. Cognisant of this approach, triumphant organisation tends to adopt appropriate structures that are capable of responding to various contingencies or variables. Essentially, this theory recommends a diagnosis of people, roles, technology, and the environment as variables that can foster development of suitable solutions (Enock, 2006). Clearly, this theory has its application to the human resource and how the roles can be useful for success in the business. Since this approach recommends flexible and proactive strategies to improve organisation relations with customers, various agency have adopted modern communication technology to facilitate contact with their clientele. In return such Web-based concepts are raising consumer expectations in terms of timely response, customer reimbursements and price elasticity (Joseph, n.d.). With customer service operations shifting online, there is a consequent power shift in service relationships, thus providing the clients with a new level of being in charge of their shopping. Social media podiums notably have created communication opportunities, with few clicks several inquiries are possible, thus allowing instantaneous engagement in a two-way conversation that can end in a positive outcome for a company (Swinton, 2009). However, such can become ineffective especially for businesses that often barricade complicated authorization processes, sales initiatives, screenplays that dictate consumer communications (Ahmed and Rafiq, 2003). The overall impact is that this hinders members of staff from exercising decision and achieving the right thing. Roles of Internal Customer Service to External Customer Service Excellence Before the appraisal of the roles played by internal customers, it is paramount to evaluate the significance of each customer to the success of an organisation. Starting with external customers, their significance is evident primarily due to immense regard they have been accorded by business owners (Joseph, n.d.). They are individuals that provide the profits through their purchases that a company needs to sustain its operation. Whenever external customers are satisfied, they frequently repeat purchases and sometimes refer their friends to the enterprise (Joseph, n.d.). However, dissatisfied clientele who may have faced negative experience with an organisation, such as rude responses, can also hamper company business by discouraging others As with internal customer service, even though they might not necessarily procure company’s products or services presented by their boss, the internal customer connection also plays a significant role in the companys success. A good example is sales representative customer. If a salesperson customer does not develop good relation with customer service, he/she is likely to face difficulties placing orders or obtaining responses to his external clients queries, ensuing in an inadequate service delivery (Joseph, n.d.). Strained in-house relationships can also negatively affect company morale. In line with their significance following are the roles played by played by internal customer service in the delivery of external customer service excellence Role in keeping the company’s customer base intact No business or entrepreneur wants to acquire clients and lose them due to negligence of the internal customer such as sales representative or any other employee. Since successful companies rely on the customer service, it is crucial the role of each employee involved in customer service operations (Joseph, n.d.). It has been established consumers will rather switch to another corporate that continue to tolerate poor service delivery. Research on the subject indicates that even if there is no inconsistency, most customers to an estimate of about 60% quit working with an individual company due to unresponsiveness on the part of member of staff (Suleiman Aburoub, Mohammad Hersh and Aladwan, 2011). An indication that the ability to effectively interact with customers is the defining difference between triumph and failure within an organisation, Therefore, the primary role of an effective internal customer service of an organisation is in keeping the company’s clients intact and facilitates creating a new base of new clients (Conduit and Mavondo, 2001). Such is fundamentally crucial because loyal customers are the heart of the business to flourish. However, if a company’s internal customer service fails to take cognizant of the significance of external customers, and then the outcome is an absolute failure of the business. A good example to show such negligence is the Coffeeville customer care services. Based on the survey concluded in 2014 financial year, the outcome was nothing special when compared against the Coffeeville’s standards. According to the survey report, a whopping 30% of the company’s customer said that Coffeeville failed to meet their expectation in terms of service delivery. In addition, 20 % of customers rated that CoffeVille‘s customer services were destitute to meet their expectation and 17% rated the company’s customer service at an incredibly weak scale. Overall, the rate of dissatisfaction of clients on Coffeeville was above average, an indication of the mass of clientele the company is likely to lose if it does not improve its customer service delivery. External Customer Satisfaction Frequently, external customers may recognize the value in a relationship when such relationship can provide benefits such as time saving, companionship and convenience from an exchange partner. Such benevolence will increase their desire to develop more rational bond (Palmatier et al., 2006). Consequently, employees’ emotional status influences customer satisfaction. Whenever external customers purchase any product or service, they want to feel that what they have bought is worth their money, the reason they require all their issues be solved to their satisfaction (Suleiman Aburoub, Mohammad Hersh and Aladwan, 2011). Whenever customers buy any product or service from a company, they want at all times to feel that there is value for their money spent. That is why in case of any dissatisfaction issues, the clients expect such issues to be resolved quickly and to their satisfaction. A cheerful, friendly and accommodating delegate conveys courteousness and concern, thus de-escalating annoyed customers and takes a genuine attention in helping them. Otherwise, for that customer service employees who might become irritated or impolite when faced with a not easy customer will leave the client feeling underestimated (Joseph, n.d). That is why as held by Palmatier et al., the sense of satisfying the internal customers’ needs places a company in a superior position to deliver a high quality desired to please external clients (Palmatier et al., 2006). Playing a Role in Three Strategies for Avoiding Customer Dissatisfaction There aforesaid strategies are crucial to preventing consumer displeasure. First is for the internal customer service to think like an external customer when working, so that they are treated as a service agent would like to be treated (Burez and Van den Poel, 2007). For example, if it is a sales rep, he or she ought to fit the situation of the external customer. With such consideration, a sensitive employee would avoid unnecessary customer dissatisfaction. The second is the Pamper the customer. This strategy entails being keen when serving a client, and thus avoiding pointless distractions. Third approach is respecting customers despite their financial status, character or any other annoying behaviour. Customer pampering is vital, because knowing from personal experience; I would rather have a lot of service than not at all. Even when clients present ridiculous requests, it should never be denied. Every customer has to be listened to, and the responses ought to be appropriate (Burez and Van den Poel, 2007). When internal customer service providers play their role in fulfilling these three strategies, they will by large prevent pointless customer dissatisfaction. External Customer Loyalty One of the most common up shots from efficient Relational Marketing is the increased customer loyalty. However, loyalty has continually drawn different definitions and operationalised in diverse ways. Exceptional external customer service paves the way to customer loyalty, which cements the goal of internal customer service and employers is to keep hold of clients (Palmatier et al., 2006). An expectation of continuity in service delivery reflects the customer’s intent to uphold the relationship in the future and brings into the picture of the likelihood of sustained purchases. Nonetheless, researchers have disparaged this gauge of loyalty because clientele with weak relational ties and little loyalty may perhaps account high continuity expectations. Such is due to their discernment of high switching overheads or their lack of time to appraise alternatives (Palmatier et al., 2006). Consequently, various researches on customer loyalty indicate that an organization’s triumph is very much linked to its capability to create an exceptional consumer service experience that collectively contributes to repeat business. Even at instances when external customers may experience dissatisfaction issues with the company’s products, with the help of emotional intelligence, the internal customer service can retain such them as regular clients. Customers mostly need to feel significant, wanted and cared for. Therefore, through critical evaluation of a clientele’s emotional state and sustaining an open and friendly tone, customers will apprehend that you truthfully value their presence and money. Such intelligent approach is fundamental to ensuring that internal customer service deliver excellent services to external customers. However, apathetic and bad-mannered employees may cost the company a customer. Role in Boosting the Company’s Corporate Image A company’s image is what customers recognize an enterprise with, such as its social responsibility, its workforce, and more significantly, its customer services achievements. Therefore, the company’s customer service sector has a vital role in ensuring that the picture of the business reflected in the marketplace boosts its whole image. Customer service delegates who remain proficient and practice emotional or expressive intelligence are cable to boost a company’s image of courteousness and customer dedication (Kuvykaitė and Piligrimienė, 2013). Constructive emotions at workplace such as high attainment and excitement have an enviable effect. However, representatives who are incapable of controlling their anger or are intolerable often generate an unprofessionalism and apathy image. Therefore, in order to remain competitive, an entrepreneur must work to put up and uphold the trust of the public. Otherwise, if a company has repute for poor customer service delivery, it could hold back the triumph of the organization (Kuvykaitė and Piligrimienė, 2013). For instance, Apple.inc has been able to exhibit high repute corporate image over some years now due to exceptional customer service (Harvey, n.d.). In 2012, Apple was an American company among the many other giants with the best corporate image, an achievement that show it leave the financial institution trailing (Heerden, 2012). All of their products have something unique one can identify with. Of late, its customer care bases globally have adopted new approaches to ensuring customer need are met all through. While the company vaulted to number one in the 2012 annual public polls on company brands, Wall Street organizations and banks plummeted to alarmingly low levels (Heerden, 2012). This achievement was not an accident. Early in 2010, Apple faced one of its top blemishes where reports indicate that the company had put its workers in China to what some said as inhuman working conditions (BuzzPatrol, n.d). The same year, some reports also surfaced with claims of rash suicides, which made iPad and iPhone phone-making firms in China stand accused of making immigrant employees work long hours for insignificant wages (Heerden, 2012). Thus, its triumph in 2012, two years after the accusation shows how much external customer services can achieve to change the public mind of a sick feeling against a company. Conclusion Conclusively, before wrapping up this paper, it is paramount to restate that both external and internal customers play very significant roles for a business to realize its goals. Through external customers who include suppliers, retailers and all purchasers, the company can raise the stream of revenue necessary to not only continue its operation, but to also for the entire growth. Similarly, through internal customers who entail the entire firm’s employees including managers and heads of department, the company has got the vital personnel to minimise costs and therefore optimizing its returns. The relationship herein is a mutual one, because as long as the internal customers keep the goodwill of serving external customers, the replication of such efforts are profits to enhance business operations. From such contextual reality, the internal customer service of an organisation, therefore, plays a number of roles to ensure excellent service delivery to external customers. However, these roles are not fixed for they are bound to revolutionize from time to time in correspondence with transforming purchase behaviours. Such frequent change is in line with the contingency theory, whose argument is that there is no single best way of managing or structuring an organisation and so are the roles played by the internal customers. Among the roles played by internal customers are all intended for bringing the external customer to the satisfaction. One of the roles of an effectual internal customer service of an organisation is to keep the company’s clients intact and also creating a new base of new clients. Secondly, is to ensure continued customer satisfaction through provision of benefits such as time saving, companionship and convenience from an exchange partner. Another role is to foster customer loyalty thus avoiding dissatisfaction issues with the company’s products, with the help of emotional intelligence. The internal customer service can retain such them as regular clients. Eventually, while recognising that a company’s corporate image is essential to a triumph, it is also the role of the internal customer service to foster such branding for success is inevitable. References Ahmed, P. and Rafiq, M., 2003. Internal marketing issues and challenges. European Journal of Marketing, 37(9), pp.1177-1186. 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