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E MAGAZINE EFFECTIVE OF CUSTOMER SERVICE Flipbook PDF
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S S W E O S S W N E I R O N I R S L S L D U D U B B IMPORTANT ELEMENT OF EXCELLENT CUSTOMER SERVICE
EFFECTIVE OF CUSTOMER SERVICE
EXCLUSIVE :
This edition brings in collection of articles by a team of Journal of Internet Banking and Commerce 5 KEYS CUSTOMER SERVICE SOFT SKILLS
FACULTY OF INFORMATION MANAGEMENT
BACHELOR OF INFORMATION SCIENCE (HONS.) INFORMATION SYSTEM MANAGEMENT MANAGEMENT OF BUSINESS RECORDS (IMR652) E-MAGAZINE
PREPARED FOR: DR. HANIS DIYANA BINTI KAMARUDIN
PREPARED BY: AHMAD HAZIQ BIN ABDUL RAHIM NUR AFRINA ASHIKIN BINTI YUSRI NUR AQILAH BINTI OMAR
GROUP: ELEK C SUBMISSION DATE: WEEK 14
IN THIS ISSUE 12 01 07
16
BENEFITS OF CUSTOMER SERVICE
DIMENSION OF SERVICE QUALITY
WHAT IS CUSTOMER SERVICE
CHALLENGES TO PROVISON OF QUALITY CUSTOMER SERVICE
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ACHIEVING CUSTOMER CENTRICITYRETENTION & EXPANSION OF EXISTING BASE
WRITER'S NOTE
AHMAD HAZIQ BIN ABDUL RAHIM 2019485304 14 AUGUST 1999
Bachelor of Information Science (Hons) Information Systems Management-IM245 Faculty of Information Management
University Teknologi Mara Kampus Puncak Perdana, SELANGOR
"Life is only a path full of efforts."
i
WRITER'S NOTE
NUR AFRINA ASHIKIN BINTI YUSRI 2019208054 11 FEBRUARY 1999
Bachelor of Information Science (Hons) Information Systems Management-IM245 Faculty of Information Management
University Teknologi Mara Kampus Puncak Perdana, SELANGOR
"if you love someone let them go, if they comeback with coffee, yes it meant to be"
ii
WRITER'S NOTE
NUR AQILAH BINTI OMAR 201967302 05 OCTOBER 1999
Bachelor of Information Science (Hons) Information Systems Management-IM245 Faculty of Information Management
University Teknologi Mara Kampus Puncak Perdana, SELANGOR
"LIFE IS A PROCESS TO TRUST, SLOWLY BUT SURELY"
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JUNE EDITION
EFFECTIVE OF CUSTOMER SERVICE
What is Customer Service? Based on Oracle (n.d.), customer service refers to the assistance an organisation offers to its customers before or after they buy or use products or services, allowing them to have a simple and happy experience with you. Offering product recommendations, solving difficulties and complaints, and replying to general enquiries are all examples of customer service. Today's customer care extends far beyond the usual phone support worker and great customer service is a competitive differentiator that drives brand loyalty and recognition. YES, MAY I HELP YOU?
Nowadays, customer service is available via email, web, text messaging, and social media. Many businesses also offer self-service assistance, which allows clients to find their own answers at any time of day or night. Customer support is more than just answering questions but it is a crucial component of the promise your brand makes to its customers.
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IMPORTANT OF CUSTOMER SERVICE 1. HELPS TO RETAIN CUSTOMER Customers are the key factor in the existence and company's development on the market. Customer retention is a company's ability to get customers to buy from them again and to keep them from switching to a competitor. Great customer service can increase client retention and encourage repeat purchases. According to one study, repeat customers are even more valuable than new ones, spending 67 percent more. Customer service can also help bring in new customers by getting great reviews and word of mouth.
According to a 2020 survey by investpro.com, the likelihood of selling to an existing customer ranges from 60 to 70 percent, whereas the likelihood of selling to a new customer ranges from 5 to 20 percent.
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2. CUSTOMER SATISFACTION "A satisfied customer is the best business strategy of all" Next, customer service was an important factor in a customer's overall satisfaction and had a significant positive impact on it. According to Philip Kotler, customer satisfaction is how a person thinks a product performed or turned out compared to what he or she expected.
For example, In a competitive corporate environment, knowing customers' needs has become critical, and as a result, corporations and banks have shifted from a product-centric to a customer-centric perspective. Customer satisfaction is determined by the type of service offered.
According to Anderson and Lehmann, increased levels of customer satisfaction benefit a company in a variety of ways; it is believed that customer satisfaction has a positive relationship with economic profit.
This customer satisfaction is an asset that needs to be managed and kept an eye on in the same way as other physical assets because it will lead to the creation of loyal customers, which in turn implies a stable cash flow.
Customer satisfaction is regarded as a major differentiator and has become an increasingly vital component of business strategy.
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3. REINFORCES COMPANY VALUES & BRAND
According to "8 Reasons Why Customer Service is Important for An Organization" (n.d). for every business the surest way to keep momentum and avoid collapse is to have excellent customer service. According to Fundera, 20% of businesses fail in their first year, 50% fail by their 5th year as a result of issues associated with poor customer service experience". The customers and patrons are the souls of business. To ensure that the organization do not run out of a business, the customers welfare should be prioritized. The importance of customer service is that customers keep coming back and making referrals o others when they are treated like kings. With exemplary customer service, the longer the business owners stay in the market, the more customers that they will make and longevity itself is a competitive advantage for the brand.
"Excellent customer service is the number one job in any company. It is the personality of the company and the reasons customer come back. Without customers, there is no company" ' Connie Elder '
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4. INCREASES CUSTOMER LIFETIME VALUE
"We see our customers as invited guests to a party, and we are the hosts. It's our job every day to make every important aspect of the customer experience a little better" -Jeff Bezos Founder and CEO at Amazon
When running a business, customer lifetime value (CLV) is a pretty important metric. It represents the total revenue you can expect from a single customer account. Growing this value means that your customers are shopping more frequently and/or spending more money at your business.
Furthermore, it will make new customers more trusting of your business and allow you to upsell and cross-sell additional products with less friction. New users will trust that your sales team is recommending products that truly fit their needs, which will create a smoother buying experience for both the customer and your employees.
For example, investing in your customer service offer is an excellent way to improve customer lifetime value. If customers have a great experience with your service and support teams, they'll be more likely to shop again at your stores. Or, at the very least, they'll share their positive experience with others, which builds rapport with your customer base.
Hence, the customer will have a varied lifetime value for a business. However, a customer lifetime value average can be determined for various target customer profiles. This can help a business to work on enhancing each of the touchpoints that customers are likely to have with them.
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5. IMPROVEMENT THROUGH FEEDBACK AND RESPONSES
As business owners, they should be flexible and adjustable to better serve their customers and satisfy their expectations. Customer service is important because it helps to generate feedback and gather public responses, which guides business owners to improve the products and services they provide. The customer service team has direct access to the customer, which enables them to handle complaints and help to resolve issues. This will help in identifying what the customer needs.
An excellent customer service team enquires from customers on how to improve the customer delivery. These responses are compiled and worked on to improve the customer service delivery. Also, when customers come around and realise that their suggestions have been implemented, it would create a sense of belonging and loyalty to the brand.
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CHALLENGES to provision of quality customer service
1. CALIBRE OF RECORDS OFFICERS Available literature affirms that most of the officers managing records in public registries are of a low calibre in terms of academic and professional training. As such they lack the requisite professional skills and competence in managing and providing records services. Mnjama (1996) cited in Ngulube (2001) has observed that most African countries have paid little attention to the training of archivists and records managers. This is collaborated by Akporhonor and Iwhiwhu (2007) who found that none of the officers who handled staff records at the Delta State University Library in Nigeria had been professionally trained in records management or archives administration. In other cases, organisations hire degree holders from any field, not necessarily records management, to be records officers. This situation compounded with a lack of experience is a stumbling block towards the provision of quality service.
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3. LACK OF VITAL RECORDS MANAGEMENT TOOLS
2. INADEQUATE STAFF
Generally there is shortage of staff members in ARMUs, which has the potential to jeopardise the promptness of the service. Delays in provision of service and customers subjected to long waiting periods can partly be explained by staff shortages. A study by Sibanda (2005) revealed that there were delays in provision of requested services at the National Archives of Zimbabwe due to insufficient staff.
Literature has proved that it is very common for public registries to operate and manage their records without a records management policy. It is the foundation on which a records management programme is built and it provides guidance for the functioning of records management in an organisation. Without it, there will be nothing regulating the records management activities and compelling officers to practise good records management. In addition, there are instances of poor file classification or no classification system. Some even use several classification systems, as discovered by Mnjama (2004). These poor classification systems have the potential to lead to misfiling and delays in file retrieval.
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4. RETENTION SCHEDULES
Some records units accumulate files on a daily basis but never appraise their records so that they know which ones to keep, send to records centres or destroy. This is evidenced by a lack of retention/disposal schedules as observed by a number of studies (for example, Akporhonor and Iwhiwhu, 2007; Mnjama, 2004). Ngulube and Tafor (2006) pointed out that archival appraisal in the ESARBICA region was not dealt with satisfactorily because it was not conducted regularly and systematically. They argued that it leads to registries becoming congested and may even lead to dumping of records in any available space without considering long-term access and preservation of information.
5. SECURITY AND PROTECTION OF ARCHIVES AND RECORDS Generally, information providers are not
sufficiently aware of the importance of security measures, disaster preparedness plans and vital records programmes. Hlabagaan (2006) found that there was a lack of disaster management and preparedness plans in information centres in Botswana, and Kootshabe (2011) reported that none of the government ministries and departments in Botswana have disaster preparedness and management plans. A study by Ngulube (2003) also confirmed that disaster plans are not yet a major priority in many archival institutions in South Africa and there are no plans to draw up such plans.
This shows that they may lose their records in the event of disaster, which has the potential to disrupt business and, in the process, affect their customers. In addition, most archives and records units do not have adequate physical security measures. Kootshabe (2011) found that records officers use storage facilities that are not lockable, keys for the main doors to the offices housing records are left with security guards, and in most cases where fire extinguishers are in place the records officers are not trained on how to use them. They do make use of fire/smoke detectors but these are never inspected to check that they still work.
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6. LACK AND COOPERATION FROM CUSTOMER
According to available literature, one of the main challenges for records officers is a lack of cooperation from their customers, specifically action officers. Some of the action officers flout the prescribed procedures and standards. It is very common for action officers to: lock files in offices; keep files in offices for a long time without taking action, which denies other customers the opportunity of attending to those files on time; remove folios from files;
write correspondence without the required metadata; file unsigned copies and official mail without referring this to the registry Normally, customers do not cooperate because they lack the right information or when they are dissatisfied with the quality of service. This is corroborated by Marshall et al. (1998), who pointed out that it is very important to offer internal customers a quality service that they are satisfied with because they may decide not to comply with prescribed procedures and standards, and they can choose whether or how to comply.
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5
Factor impacting on customer service
BEING AVAILABLE CONSISTENTLY PRIORITISING THE NEEDS AND EXPERIENCE OF CUSTOMERS NOT TAKING LOYAL CUSTOMERS FOR GRANTED TAKING ADVANTAGES OF TECHNOLOGY AND SOCIAL MEDIA EFFECTIVE TRAINING AND TEAMWORK
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DIMENSION OF SERVICE QUALITY What is service quality? The definition of service quality is the post-consumption evaluation of services by customers or consumers (Holdford & Reinders). Service quality has a unique significance in the services industry. According to Kotler and Keller, a service is "any intangible act or performance offered by one party to another that does not result in the transfer of ownership of anything." In short, we can say that service is an intangible offer made by one party to another in exchange for money, pleasure, and convenience. Besides that, service quality is defined by Edvardsson as the degree of being able to meet the customers' expectations and to determine their needs and wants, Kandampully gave a similar definition of satisfying the customer's expectations with the service provided Parasuraman, Zeithaml & Berry defined service quality as the comparison of expected service and perceived service. They also developed the SERVQUAL measurement technique to evaluate the service quality. On this ground, Zeithaml, Valerie, Bitner, and Mary have referred to ten dimensions of service quality in their primary research. But, in their further research, they found a strong correlation among those dimensions. So, they put these dimensions together and used the five-fold dimension of reliability, responsiveness, assurance, empathy, and tangibles as a starting point to make SERVQUAL, a tool for testing service quality.
HOW CAN I HELP YOU?
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5
Dimension of Quality Service
1. RELIABILITY
Reliability is the ability to perform the promised service dependably and accurately. Doing what you say you’re going to do when you say you’re going to do it is essential to pleasing your customers. They want to rely on your business to deliver a working product or effective service, to get help when they need it, and for all of this to happen in a timely fashion. Customers want to count on the businesses they buy from; that’s at the heart of this dimension.
2. RESPONSIVENESS
Responsiveness is the willingness to help customers and provide prompt service. Responding quickly to customer questions and concerns is vital, especially in today’s fast-paced world. Responsiveness even applies when customers are slow in responding to you. Answer swiftly to, at the very least, let customers know that you’re working on their request. Responsiveness lets your customers know that you’re listening to them and working actively to solve their problems.
3. TANGIBLE Tangibility is the appearance of physical facilities, equipment, personnel, and communication materials. Customers tend to expect clean and professional facilities and shops; employees who look groomed and neat; and well-written and designed materials such as menus, websites, and signs. Attention to appearance can indicate that your company takes customer comfort seriously. Even though appearance isn't the most important part of service, it does affect how customers view your business, especially if your brand promises a highend or luxurious experience.
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5
Dimension of Quality Service
4. ASSURANCE Assurance is the knowledge and courtesy of employees and their ability to convey trust and confidence. Customers expect businesses to be experts in the service they deliver. Communicating that expertise to customers helps reassure them that they can trust you, whether you accomplish this by displaying credentials and industry certifications or customer testimonials. Assurance is significant when customers have many options but aren’t sure who to trust when purchasing. Suppose you run an e-commerce store, for example. In that case, customers see ads from online shops that might not be trustworthy all day long, so you need to figure out how to stand out and gain customer trus
5. EMPATHY Empathy is the caring, individualised attention the firm provides its customers. Customers want to feel like they’re more than a transaction; they want to build a relationship with your business. Even if you have the best product or service on the market, you can still fall short of their expectations. Showing empathy to customers means ensuring your company showcases your care. You can go above and beyond expectations by teaching your employees how to give great service with empathy, where smiles and interesting conversation are common.
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D A M O N
R I C H A R D S
Benefits of Customer Service
Customer Loyalty Businesses gain in numerous ways from having loyal clients. Ninety-one percent of customers report that a favourable customer service experience increases their likelihood of making a future purchase. Moreover, the cost of acquiring new consumers is five times that of retaining existing ones. Therefore, establishing profitable, long-term connections with clients through excellent customer service may be rewarding for organisations. 16
Employee Motivation and Employee Moral Employees who are eager to help can not only improve the overall customer shopping experience and satisfaction but also decrease their daily work pressure. This ultimately encourages them to work to their maximum capacity. It might seem hard for employees to grasp how the process works at first, but after providing good retail customer service regardless of the industry, this will eventually build staff motivation and pride.
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IMPORTANT ELEMENTS OF EXCELLENT CUSTOMER SERVICE EVERY GOOD BUSINESS RECORDS WANTS TO PROVIDE EXCELLENT CUSTOMER SERVICE, BUT IT’S NOT ALWAYS EASY TO BALANCE THAT WITH OTHER BUSINESS NEEDS AND GOALS. SOMETIMES, IT CAN HELP TO GET INSPIRATION FROM WHAT OTHERS HAVE FOUND TO BE TRUE. THE ELEMENT THAT IMPORTANT IS:
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1
RESPOND IN TIMELY MANNER
2
RESPOND KNOWLEDGEABLY
3
COMMUNICATE WITH CUSTOMERS WHERE THEY ARE
4
STREAMLINE YOUR PROCESS
5
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CUSTOMER SOFT SKILLS
1
Ability to mirror a customer’ language & tone
2
Active Listening
3
Clear communication
4
Interpersonal skills
5
Comfort multitasking
"TREAT THE CUSTOMER AS IF YOU ARE THAT CUSTOMER "
RECORDS WORLD
BUSINESS
ORGANIZATION
GOOD CUSTOMER SERVICE MAKES THE DIFFERENCE!
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ACHIEVING CUSTOMER CENTRICITYRETENTION & EXPANSION OF EXISTING BASE The literature gives vast data and information on different perspectives of customer satisfaction. Despite of the notion that banks are being regularly blamed for treating customers as account numbers, they clearly understand the depth and vitality of fact that the whole organization revolves around customers. He is at the centre of everything that is done. The significance of an effective customer relationship strategy and the gravity of becoming a customer. The traditional model of operation is only squeezing the banking profits, since the regulations habits of the customers has
change overtime. Banks realize the seriousness of the issue and developing a new model which can take care of all the subsequent changes and requirements. Regardless of channel or product or strategy, customer should be entertained and treated with full knowledge of their activities and concern. The purpose has to be two-sided. Not only customers, but the activities should coincide with the organizational goals as well. The banks which succeed are rewarded with reduced customer attrition and increased wallet share.
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BECOMING MORE CUSTOMERCENTRIC REQUIRES BANKS TO FOCUS ON FOUR KEY AREAS:
Management of Customer Information
First and foremost, banks need to exercise the clear
and
offered
exact to
the
customers’ banks
can
and
learn
behind
customer
requirements.
have
who
purpose
to
be
identify
targeted
where
knowledge
is
the
in
a
set
accessed,
implies of
are.
the
to that
customers
particular
gaps
service
relation
This
the
for
every
product
Once
right
this
customer
can be approached.
"The key is when a customer walks away, thinking, 'Wow, I love doing business with them, and I want to tell others about the experience.'" - Shep Hyken - Connor J. Wilson
Plan processing with Multi-Channel Integration
Improving touch builds
customer
point a
or
ultimate
only
service.
have
service
the
viewpoint
product banks
is
experience
As
after its
introduced
delivery
aim.
using
using
every
Customer a
particular
expansion
multiple
specially
at
strategy,
channels the
of
modern
methods of technology like ATMs, cash deposit machines,
self
available avenues
internet have
untapped
processes
of or
but
data
little
channels.
kiosks,
banking.
opened
potential
duplication
multiple
interacting
gates a
due
These for
new
channelizing
simultaneous to
either
channel-specific
information Banks
24-hrs
sharing
need
to
across
plan
their
work and strategize their processes which can integrate all the channels and help in avoiding the undesirable hassle for the customer.
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Service Delivery Excellences
The
increasing
and
rising
are
volumes
proving
bank
customers
banks
are
better
customers
are
key
the
a
efficiently related
to
its
in
or
portfolio, of
of
gaining if
and new
they
excellence
is
the
gaps,
its
are the little
services
whether
multi-channel would
a
the
services
waste
base
and
support
Delivering
the
technology
expansion
to
and
more
among
products. all
As
can
operational
filling
transactions
requirements
effort be
demands
delicate
products,
differentiator
differentiated
the
that
The
An
day
added
to
would
maintained.
to
on
employees,
things.
customer
day
environment
other
of
processes.
adding
customers,
or
of
heavy
sophisticate more
number
it
is
system
lead
to
differentiation.
Intelligent, Real-Time Cross-Selling
This is the last and ultimate aim of every bank: Selling to
sell
for
and to
earning
the
new
current
integrating
be
fully
of the
is
always
than
After
multiple
with
efficient
information,
channels
excellence, the
easier
searching
an
customer
operational
geared
It
customer
prospects.
management
achieving
revenue.
banks
resources
to
and would
tap
the
customer- new pitching as well as cross sell to existing cross
customers.
selling
strategy,
To
efficiently
successful
utilize
the
application
of
all the three areas described above is required.
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"Customer service is about empathy." - Chaz Van de Motter
WHERE YOUR JOURNEY BEGINS
CONCLUSION
Undoubtedly, the current financial environment has a big appetite for building and grooming a customer-centric organization. Banks are realizing the philosophy of “Customer is the king and make the king happy”. Partnering their customers all timed, good or bad, customer centric banks develop a strong relationship with their customers. Engaging themselves in best selling attitude with efficacious real time systems and processes, along with sharing of information across all channels, banks stand in a position of more profitable venture. Banks are required to define their customer strategy, develop a matrix for the internal team equally focusing on customer service, and efficiently combine all the available resources to present an impressive influential picture to the customer.
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REFERENCES The 4 most important elements of excellent customer service. (2021, October 13). Front. https://front.com/blog/4-most-important-elements-of-exceptional-customer-support 8 Reasons Why Customer Service is Important. (2019). Indeed Career Guide. https://www.indeed.com/career-advice/career-development/why-is-customer-service-important Amaresan, S. (2022, January 10). Why Customer Service is Important: 16 Data-Backed Facts to Know. HubSpot. https://blog.hubspot.com/service/importance-customerservice#:%7E:text=Customer%20service%20is%20important%20to,and%20provides%20testimonial s%20and%20reviews. C. (2021, August 16). Power-up your call center management. CloudTalk. https://www.cloudtalk.io/blog/the-most-common-mistakes-in-customer-service-and-how-to-fixthem/ Klokkenga, B. (2022, April 7). GetFeedback. GetFeedback. https://www.getfeedback.com/resources/cx/how-to-measure-the-5-dimensions-of-servicequality/#:%7E:text=The%20five%20service%20quality%20dimensions,responsiveness%2C%20assur ance%2C%20and%20empathy Kobiruzzaman, M. M. (2022, April 26). Five Dimensions of Service Quality- Servqual Model of Service Quality. Newsmoor. https://newsmoor.com/servqual-model-five-key-service-dimensionsservqual-gapsreasons/#:%7E:text=Reliability%20is%20an%20essential%20dimension,time%20with%20error%2D free%20conditions Marks, R. E. (2005). Organisational Behaviour, Finance, and Economics. Australian Journal of Management, 30(1), e0–e3. https://doi.org/10.1177/031289620503000101 O. (2019). Improving customer service experience with records management. OpenKM. https://www.openkm.com/blog/improving-customer-service-experience-with-recordsmanagement.html P. (2022, March 4). 5 Factors to consider for Effective Customer Segmentation. Aritic PinPoint Blog. https://aritic.com/blog/aritic-pinpoint/effective-customersegmentation/#:%7E:text=The%20key%20factors%20in%20customer,towards%20your%20product %20or%20service Singh, M. (1970, January 1). Good Customer Service Makes The Difference! | Open Access Journals. JOURNAL OF INTERNET BANKING AND COMMERCE. https://www.icommercecentral.com/openaccess/good-customer-service-makes-the-difference.php?aid=37997&view=mobile
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