Customer Service As A Vital Tool For Business Profitability - Essay Example

Service: A Vital Tool for Business Profitability 944 word - essay Why do people go back for repeatorders or continuous business transactions with a certain company What makes them stay loyal regardless of the expensive price, or perhaps the inconvenient location of the store Despite the consequences, customers keep coming back for more for the company's services and products. It is undoubtedly the way they render customer service that sets them apart from all others. Customer service is defined in many ways. It is said to be the quality of service rendered to customers. It is also the ability to satisfy the needs of a company's internal, such as co-workers, and external clients or the customers. On a simpler note, it is about delighting the customers so that they will continue doing business with the company. Customer service is also defined to be a sequence or even a cycle of activities designed to enhance the level of customer satisfaction which is the feeling that a service or a product has met the customer's expectation. Finally, for a customer, it is "a function of how well an organization is able to constantly and consistently exceed the needs of the customers." ("Making A Point of Good Customer Service") Maximizing profit by providing excellent quality service is necessary and crucial. Companies need to know the way to succeed from the combination of customer loyalty, efficiency, and revenue. For most successful firms, they put customers at the core of organization's business system making it the most important aspect for profit generation. What makes companies be at the top of the game at the market place is the commitment to achieving and exceeding customer satisfaction and their continuous self assessment on how well their products and services fulfill the needs and expectations of the clientele. In order to sustain the competition, these companies have to show vision, diligence, and passion to benefit the customers. As a result of this belief, successful firms continuously deliver superior value to customers, at times, regardless of the products conditions. For instance, one's products may appear to be obsolete compared to others; however, top businesses are still able to sell these goods because of their ability to build the products' value to the customers on a consistent and continuous basis. Value is created by explaining the benefits of the products or services, addressing concerns, queries, or problems, and uncovering the needs of customers. A company that can present greater advantages to a customer is the frontrunner at the business world. Companies lose so much when they ignore the customers' needs, do not show any distinctive competence or customer empathy. Many products remain to be unsold and even with excessive marketing efforts; it still cannot influence customers to avail of either the products or services. It further irks the customers when they feel that companies are only after their money through alluring advertisements and publicities, and nothing more. The skill to be able to deliver the value to your clients is through excellent verbal and non-verbal communication skills and active listening. There are simple rules on how to maintain exceptional quality customer service starting with learning how to listen. It is said that when customers have complaints, it is usually because of something. Companies need to accept complaints positively; first, as a chance to give more details about a concern, second, as a means to learn something. Through this, companies are given the opportunity to better their goods and services at the proposition of the customers. Interrupting a complaining client is never a good way to resolve issues; on the contrary this is the easiest way to drive them away. Remember that one unsatisfied customer tells about twenty people and a business cannot afford to lose clients simply because they cannot patiently listen to customers concerns or that they take things personally. This is another rule that should be remembered by companies that customer complaints are about products and services that did not live up to their expectations or the marketing buildup and not for personal reasons. Rare cases occur where customers are becoming personally involved with employees, but for the most part, the objections are professional in nature. Losing one's cool, getting angry or defensive, or worse, yelling to a customer is unforgivable in a business setting. There is always a way to settle issues professionally and amicably, and businesses should know better than to do things otherwise. During certain situations wherein the best way to resolve issues is through an initial apology; do it! Offering a sincere apology for any inconvenience warms a customer's heart. When you can acknowledge the fact that you are responsible for your products defects or for your employees' insufficient service is a good indication that you are mindful of their needs. This is also one rule that businesses should not take for granted. Finally, be accountable for your actions and decisions. Never say "that is not my job", "it is not my department", or "it is not my responsibility." Always take into consideration that all the departments of a company function in unison. The success of one is the success of all. During these circumstances, you may assist the complaining or enquiring customer to the appropriate section to facilitate the transaction. Following these simple but extremely customer service friendly rules will ensure an ongoing commitment to keep your clientele delighted resulting to more business opportunities. In principle, it is seemingly very easy to render quality customer service. However, in the actual scenario it requires effort and commitment. Before we can begin to provide for the customers, a business first needs to know its target market and its different customers' personalities. Some customers are gullible, trusting and open, and practically believe everything that is told to them. They can be compared to a child therefore needing guidance and care. For unscrupulous business people, this is a target for easy money. But for businesses that are after good service equating to long term-business relationships, this requires a duty of care. They will only sell something to a person who truly believes that a certain product or service will actually help them. In contrary to this type of customer is someone who is often suspicious and possess the belief that all people are basically selfish. This kind of customer is often referred to as a judge. They believe that they are enticed to buy something whatever the consequence; mostly on a deceitful manner. They are oftentimes controlling and they want people to see things their way. The best approach to this kind of customer is to be submissive and be the "child" in a somewhat parent-child game until their controlling attitude will be converted to a nurturing and compassionate parent. On the other hand, there are customers who seem to know more about your own goods and services more than you do! They are born negotiators who are always asking for a good deal. A good negotiator is a very good challenge but, be cautious for they may play you like a fish. The way to deal with this type of customers is to let them beat you down very slowly and subtly. Then, finally you stand firm and make it absolutely clear to them that you cannot go further with their requests and make the close. Other clients are value driven. They may have some attitudes of a negotiator but they sometimes make decisions at an impulse. The way you handle a negotiator is somewhat similar to a bargain-hunter but stress the fact that they are able to get a good bargain from you by stating that they will get their money's worth. While some customers tend to negotiate and get engaged with the endless bargaining, others will impose to receive the best price straight up. They are said to be the adult customers. The so-called adult customers will start as a negotiator by asking questions about the specifics of your goods and services but they will not negotiate. They will rather listen, ask for the price, and then decide. As oppose to the other types of customers, the adult customers will not listen to reason or pleas once they have arrived at a decision so be careful on how to close deals with them. "I recently walked into a retail store that offered different gifts appealing mainly to mature shoppers. The sales clerk was unkempt and barefoot, and was clipping his toenails while listening to loud rock music. He completely ignored me and I promptly walked out." ("How to Improve Customer Service") This is a simple scenario of what most organizations lack to be able to provide good service. There are several behaviors that are not seen in most businesses and organizations that cause their demise. Let us look into them one by one. Unlike managers and owners, some employees do not have the passion for service. This is mainly because they are not aware and mindful of the success of the business; as long as they receive their remuneration that is all that matters to them. Professionalism on all aspects is very important to render quality customer service. Appearance is a vital aspect to project professionalism. Remember that you do not have a second chance to make a first impression thus employees should know how to dress their part for they represent not just themselves but also the business itself. A caring manager and an unconcerned employee is never a good match, in effect managers need to look for matured and well trained employees in order for them to keep their customers. Otherwise, they will lose a great deal of money if they allow these poorly trained employees to man their stores. It is said that skills can be taught therefore the best employee with the right personality must be hired to begin with. It will be a lot beneficial if businesses hire the best employees rather than the cheapest ones for in the long run it will be cost effective. Managers will have efficient team of employees if they themselves become their role models. Among the behaviors they should replicate and help employees adapt are the simple rules mentioned previously. Those rules should first be followed and performed by the upper management to be echoed down to the last member of the organization since employees are the company's most important marketing and advertising tool. How they treat customers determine whether these customers will return, and what kind of word-of-mouth advertisements they will spread about the business. Good service will result to loyal customers. Excellent service will give customers a reason to tell their family and friends. Such word-of-mouth marketing is the most priceless form of marketing. These are the key secrets to superior customer service. The relationship of the customer and the business employees will make or break the business. The Customer Relationship Management is a known philosophy that "focuses on building relationships with the customers as opposed to focusing solely on the transactions." ("Got Customer Service Fundamentals") There will be no transaction in the first place if there are no customers to cater these to. Perhaps "the most important aspect of customer or client service, in terms of delivery of products and services, is that is should be available when and where the customer wants it." ("Customer Service Level") There should be a consistent and continuous performance on how a business renders the service. These acts of meeting the clients' demands and exceeding their expectations at all times will definitely result to a profitable business. Customers are the heart of the business therefore the primary goal of all companies is to keep them satisfied both from the quality of their products and implementation of their services. Sources: (1) Making A Point of Good Customer Service 2003-2008. 6 December 2008. (2) Customer Personalities 2002. 7 December 2008 (3) Diamond, A. 2004, CSM: eMagazine for Customer Service Professionals, Worksop, United Kingdom, 7 December 2008, http://www.customerservicemanager.com/how-to-improve-customer-service.htm (4) Ross, G. 2008. Got Customer Service Fundamentals. 8 December 2008. http://www.allbusiness.com/company-activities-management/operations-customer/11603246-1.html (5) Wikipedia. Talk: Customer Service. This page was last modified on 9 October 2008, at 22:25. 8 December 2008. Read More