INTRODUCTION TO CUSTOMER SERVICE

Welcome

BML207: Purple Goldfish and the Art of Service Experience

Dr Andy Clegg a.clegg@chi.ac.uk

BML207: Purple Goldfish and the Art of Service Experience

Coming Up Today: • Why Purple Goldfish?

• Class Charter • Overview of the Module • Assessment Outline • Group Formation • Session 1 – Introduction to Service Quality & Experience

Dr Andy Clegg a.clegg@chi.ac.uk

Introduction to Customer Service

Why Purple Goldfish?

Why Purple Goldfish?

Why Purple Goldfish?

Class Charter What I expect from you: 1.

To attend and arrive punctually; if you have to miss a session then you notify me in advance and complete an absence form on your return

2.

To fully engage pro-actively in all sessions and complete all tasks that are set in a timely manner and to a high standard

3.

Read through the course handbook and follow guidelines closely making reference to the assessment criteria when working on your assessment

4.

Work collegiately and professionally in your groups at all times

5.

Demonstrate background reading and clear engagement with academic text and journals

6.

Ask for help when needed!

Class Charter What you can expect from me: 1.

2.

3.

4.

5.

6.

Module Learning Outcomes Module Learning Outcomes: • Distinguish between the ways in which customer service, quality and experience have been defined and conceptualised • Debate the factors influencing the emergence of experience and quality as management tools • Practically apply the tools and techniques that can be used to critically assess customer service and to facilitate service enhancement • Apply the key stages in developing a customer service strategy to support the customer experience for a specific business environment • Communicate effectively in written and verbal form • Display appropriate IT skills

Key Themes Monitoring & Evaluation Online Customer Service

Understanding your customers Delivering the experience / exceeding expectations

Managing People

Understanding the competition

Recruitment

Systems & Process Organisational Culture & Leadership

Internal resourc es and competenci es Competitive Strategy for Competitive Advantage

Module Structure

Assessment Assessment #1 Fieldwork Report • Assume the role of an ‘experience assessor’ • Develop your own experience auditing tool/survey to provide a critical evaluation of the quality of the visitor experience for a specific tourist attraction of your own choosing.

Assessment Assessment #2 Experience and Service Strategy Pitch • Synoptic exercise involving the development of an action plan relating to the implementation of a customer service/experience strategy for a new visitor attraction in Bognor Regis.

Managing Customer Service

Session 1: Introduction to Service Quality and Experience ‘The quest for excellence’

Introduction to Customer Service Aims • To define experience and service excellence • To discuss the relationship between quality and the nature/character of the service sector • To discuss the factors influencing the emergence of quality and experience as a management tool • To introduce the notion of the ‘experience economy’ and ‘experience realms’ • To identify the key elements of service excellence and experience

Introduction to Customer Service

Why Purple Goldfish?

Introduction to Customer Service

Introduction to Customer Service

Introduction to Customer Service

www.purplegoldfish.com

Introduction to Customer Service The Current State of Customer Service: Question 1: What percentage of customers in the UK have switched business at least once in the last year because of poor customer service? a: 62% b: 72% c: 80% d: 92%

Introduction to Customer Service The Current State of Customer Service: Question 1: What percentage of customers in the UK have switched business at least once in the last year because of poor customer service? a: 62% b: 72% c: 80% d: 92% [Source: NewVoice Media,2014]

Introduction to Customer Service The Current State of Customer Service: Question 2: What percentage of consumers believe that UK high street retailers offer great customer service? a: 3% b: 15% c: 23% d: 38%

Introduction to Customer Service The Current State of Customer Service: Question 2: What percentage of consumers believe that UK high street retailers offer great customer service? a: 3% b: 15% c: 23% d: 38% [Source: Retail Eyes Report, 2010]

Introduction to Customer Service The Current State of Customer Service: Question 3: What percentage of UK consumers believe that ‘customer experience generally exceeds expectations’? a: 2% b: 9% c: 16% d: 37%

Introduction to Customer Service The Current State of Customer Service: Question 3: What percentage of UK consumers believe that ‘customer experience generally exceeds expectations’? a: 2% b: 9% c: 16% d: 37% [Source: American Express Global Customer Service Barometer, 2010]

Introduction to Customer Service The Current State of Customer Service: Question 4: What percentage of UK consumers refuse to even enter a store if they spy a queue? a: 18% b: 27% c: 39% d: 51%

Introduction to Customer Service The Current State of Customer Service: Question 4: What percentage of UK consumers refuse to even enter a store if they spy a queue? a: 18% b: 27% c: 39% d: 51% [Source: Barclaycard, 2010]

Introduction to Customer Service The Current State of Customer Service: Question 5: What percentage of customers regard personal recommendations from friends, family or colleagues as the most trustworthy source of information? a: 25% b: 37% c: 49% d: 58%

Introduction to Customer Service The Current State of Customer Service: Question 5: What percentage of customers regard personal recommendations from friends, family or colleagues as the most trustworthy source of information? a: 25% b: 37% c: 49% d: 58% [Source: Satmatrix, 2010]

Introduction to Customer Service The Current State of Customer Service: Question 6: What percentage of UK holidaymakers use TripAdvisor before they book their holiday? a: 15% b: 22% c: 25% d: 38%

Introduction to Customer Service The Current State of Customer Service: Question 6: What percentage of UK holidaymakers use TripAdvisor before they book their holiday? a: 15% b: 22% c: 25% d: 38% [Source: WTM Industry Report,2010]

Introduction to Customer Service The Current State of Customer Service: Question 7: What percentage of customers would be prepared to pay more for a product if it came with better service? a: 35% b: 47% c: 62% d: 74%

Introduction to Customer Service The Current State of Customer Service: Question 7: What percentage of customers would be prepared to pay more for a product if it came with better service? a: 35% b: 47% c: 62% d: 74% [Source: Retail Eyes Report,2010]

Introduction to Customer Service The Current State of Customer Service: Question 7: What percentage of customers would be prepared to pay more for a product if it came with better service? a: 35% b: 47% c: 62% d: 74% [Source: Retail Eyes Report,2010]

Introduction to Customer Service The Current State of Customer Service: Question 8: How much is poor customer service costing UK businesses? a: £3.5bn b: £5.2bn c: £10.0bn d: £12bn

Introduction to Customer Service The Current State of Customer Service: Question 8: How much is poor customer service costing UK businesses? a: £3.5bn b: £5.2bn c: £10.0bn d: £12bn [Source: NewVoice Media,2014]

Introduction to Customer Service The Current State of Customer Service: Question 9: What percentage experiences are now based on how the customer feels they are being treated? a: 52% b: 65% c: 70% d: 85%

Introduction to Customer Service The Current State of Customer Service: Question 9: What percentage experiences are now based on how the customer feels they are being treated? a: 52% b: 65% c: 70% d: 85% [Source: Return on Behaviour Magazine, 2014]

Introduction to Customer Service The Current State of Customer Service: Question 10: What percentage of service organisations view customer experience as a competitive differentiator? a: 42% b: 62% c: 75% d: 90%

Introduction to Customer Service The Current State of Customer Service: Question 10: What percentage of service organisations view customer experience as a competitive differentiator? a: 42% b: 62% c: 75% d: 90% [Source: Deliotte, 2013]

Introduction to Customer Service The Current State of Customer Service: • In a business to business engagement, ‘delighted’ customers are FIVE TIMES more likely to plan on repurchasing than merely satisfied customers [Source: Ipsos Loyalty Report: The Role of Customer Delight in Achieving Customer Loyalty, 2010]

Introduction to Customer Service The Current State of Customer Service: • In a business to business engagement, ‘delighted’ customers are FIVE TIMES more likely to plan on repurchasing than merely satisfied customers [Source: Ipsos Loyalty Report: The Role of Customer Delight in Achieving Customer Loyalty, 2010]

•

When asked how companies can encourage them to spend more, 61% of customers said accessible information and availability for questions before making a purchase, 66% said improved customer service, 23% said a ‘tailored’ experience.

[Source: Right Now Report – Customer Experience Impact, 2010]

Introduction to Customer Service Activity 1: Identify: • Two situations where you have been impressed by the quality of customer service and experience • Two situations where you have been disappointed by the quality of customer service and experience • For what specific reasons has the customer service been good or bad? What were the purple goldfish?

Introduction to Customer Service Activity 2: Customer Service Priorities • From your own experiences and reflecting on approaches to customer service within your own business or organisation develop a list of top ten customer service priorities

Introduction to Customer Service 10 Rules for Customer Service • 1: Commit to Quality Service/Exceed Expectations – Create a positive experience for the customer • 2: Know Your Products – Product knowledge = confidence • 3: Know Your Customers – Tailor your approach to customer needs • 4: Treat People with Courtesy and Respect – Tailor your approach to customer needs

Introduction to Customer Service 10 Rules for Customer Service • 5: Listen to Your Customer and Handle Complaints Effectively – Be solution rather than problem-focused • 6: Be Responsive to Customer Enquiries – Be prompt and never leave a customer hanging on • 7: Focus on the Customer, Not Sales – Quantity rather than quality of sale • 8: Develop Customer Orientated Systems for Service Excellence

Introduction to Customer Service 10 Rules for Customer Service • 9: Develop a Culture of Continuous Improvement – Engage with staff in the quality enhancement process • 10: Monitor, Reflect and Act on Customer Feedback

Introduction to Customer Service Key Themes to Consider • What is quality, experience, excellence?

• When measuring the quality of a product or service product or service what do you consider?

• Does the expectation of quality/experience differ depending on the type of product/sector/audience?

• How does the character of the industry/product influence service excellence?

• The emphasis on service excellence and experience is designed to meet what wider goals?

Defining Quality International Organisation for Standardisation Quality: ‘the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs’

Defining Quality International Organisation for Standardisation Quality: ‘the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs’

Defining Quality International Organisation for Standardisation

totality: noun the whole of something. ‘the totality of their current policies’ Synonyms: entirety, entireness, wholeness, completeness, inclusiveness, unity

Defining Quality International Organisation for Standardisation

holistic: Adjective

PHILOSOPHY

characterized by the belief that the parts of something are intimately interconnected and explicable only by reference to the whole.

Quality Indicators Zeithamal (1990): • Tangibles: The appearance of physical facilities; equipment and personnel • Reliability: Ability to perform the promised service dependably and accurately • Responsiveness: Willingness to help customers and provide prompt service • Assurance: Knowledge and courtesy of employees and their ability to convey trust and confidence • Empathy: Caring, individualised attention the provides its customers

Quality Management & Services Points to consider: • The service product is not standardised and is influenced by a variety of variables - [e.g. staff delivery and customer expectations] • The service product is produced and consumed simultaneously - therefore it can be different for every customer • Emphasis on the ‘moment of truth’ • The product is intangible and perishable

Introduction to Customer Service Points to Consider: • Aspects of the service product cannot be tested • Many services are complex products which involve a high degree of interdependence and inseparability of the elements of the product • Quality can be viewed as set of outcomes (i.e. the product) or as a process (i.e the process by which the product is produced and delivered to the customer)

Introduction to Customer Service The Attraction ‘Product’: • The physical environment of the attraction • The price the customer pays/perception of value for money • The service offered by attraction staff • The reliability of the product • Customer safety

Introduction to Customer Service The Attraction ‘Process’: • Human resource management - recruitment, motivation, training, reward and recognition • The organisation’s culture and hierarchy/style of management • The marketing function and the impression that is presented to potential visitors • Purchasing policies and links to suppliers • Procedures for anticipating and responding to changes in the business environment

Quality: Internal & External Perspectives

Quality as a Management Tool Activity 3: Identify: • What factors have influenced the emergence of quality as a management tool?

Quality as a Management Tool Increasing Customer Expectations POTENTIAL AUGMENTED EXPECTED Excellence gap

CORE

Market Leadership gap

High

Levels of service

The Experience Economy

The Experience Economy

Entertainment ‘to sense’ •

• •

Improves the participant's mood/experience absorbed through senses Participation can be passive and/or active Can be added to other realms to improve experiential quality

The Experience Economy

Education ‘to learn’ • • •

Expands participant's knowledge and/or skills Participation is active Can be fused with education to create "edutainment."

The Experience Economy

Esthetic ‘to be there’ •

•

Enriches participant through improved design, comfort and beauty of space and furnishings Immersion in the event or environment but having little impact on it

The Experience Economy

Escapist ‘to do’ • •

Participation tends to be active Participant tends to be actor in the performance

The Experience Economy The Branded Customer Experience

Profitable growth Branded experience Predictable experience Random experience • Inconsistent • Unintentional

• Consistent • Intentional • Not differentiated • Not valuable

• Consistent • Intentional • Differentiated • Valuable

• The goal

The Service Excellence Model Deliver the Promise

Go the Extra Mile

Service Excellence

Provide the Personal Touch

Resolve Problems Well

The Service Excellence Model Reputation for Service Excellence Committed staff

A service culture

A service personality

Easy to do business with

Financial benefits

Customerfocussed systems

Professor Robert Johnston, Service “ Excellence = Reputation = Profit : Developing and sustai ning a reputation for service excellence � , Institute of Customer Service, 2001

Learning Outcomes As a result of this session, you should be able to: •

Define experience and service excellence

•

Discuss the relationship between quality and the nature/character of the service sector

•

Discuss the factors influencing the emergence of quality and experience as a management tool

•

Critique the notion of the ‘experience economy’ and ‘experience realms’

•

Identify the key elements of service excellence and experience