CUSTOMER SERVICE SKILLS FOR SUCCESS ISE 8TH EDITION BY ROBERT W. LUCAS SOLUTIONS MANUAL by QuentinAxel

SOLUTIONS MANUAL

CUSTOMER SERVICE SKILLS FOR SUCCESS ISE 8TH EDITION BY ROBERT W. LUCAS SOLUTIONS MANUAL Chapter 1-13 with final

Chapter 1 The World of Customer Service Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 17 Discussion Opportunities .............................................................................................. 17 In the Real World Notes ................................................................................................ 18 Retail—Amazon.com .................................................................................................. 18 Work It Out Notes .......................................................................................................... 19 Work It Out 1.1—Improving Service Quality .............................................................. 20 Work It Out 1.2—Personal Exposure to the Global Trend ......................................... 20 Work It Out 1.3—Who Are My Internal Customers? .................................................. 20 Work It Out 1.4—Types of Service ............................................................................. 20 Work It Out 1.5—Attracting and Training Employees ................................................ 21 End-of-Chapter Material Notes ...................................................................................... 21 Key Terms ................................................................................................................. 21 Review Questions ..................................................................................................... 22 Collaborative Learning Activities ............................................................................... 24 Face-to-Face—Getting Ready for New Employee Orientation at PackAll ................. 25

Learning Outcomes LO 1-1 Define customer service. LO 1-2 Describe factors that have impacted the growth of the service sector in the United States. LO 1-3 Identify societal factors that have influenced customer service. LO 1-4 Recognize the changes in consumer behavior that are impacting service. LO 1-5 List the six major components of a customer-focused environment. LO 1-6 Explain how some companies are addressing the changes impacting the service sector.

Brief Chapter Outline I. Defining Customer Service A. The Concept of Customer Service B. Post–World War II Service in the United States C. The Shift to Modern-Day Service II. Changes in the Service Sector A. Impact of the Economy 1. Quantity of Jobs Being Created 2. Distribution of Jobs 3. Quality of Service Jobs III. Societal Factors Affecting Customer Service A. COVID-19 Worldwide Pandemic B. Shifts in Consumer Needs, Wants, and Expectations C. Global Economic Shifts 1. The Impact of Government and the Economy 2. Consumer Mindset Changes 3. Changes in Business Strategies D. Shifts in the Population and Labor Force E. Increased Efficiency in Technology 1. Globalization of the Economy F. Deregulation of Many Industries G. Geopolitical Changes H. Changing Personal and Societal Values I. More Women Entering the Workforce J. A More Racially and Ethnically Diverse Population Is Entering the Workforce K. More Older Workers Entering or Remaining in the Workforce L. Growth of E-Commerce

IV. Consumer Behavior Shifts A. Expectation of Quality Service B. Enhanced Consumer Awareness and Preparation V. The Service Environment A. Components of a Service Environment B. The Customer 1. External Customers 2. Internal Customers C. Organizational Culture D. Human Resources 1. Strategies for a Successful Job Interview E. Products and Services F. Delivery Systems G. Quality Service VI. Addressing the Changes

Chapter Outline and Lecture Notes I. Defining Customer Service 

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Customer service is the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business. Depending on an organization’s focus, such as retailing, medical, etc., the goals of providing customer service may vary. Service industry is a term used to describe businesses and organizations that are engaged primarily in-service delivery. Service sector is a more accurate term, since many organizations provide some form of service to their customers even though they are primarily engaged in research, development, and manufacture of products. Product is something produced or an output by an individual or organization. In the service environment, products are created to satisfy customer needs or wants. A customer-focused organization is a company that spends energy and effort on satisfying internal and external customers by first identifying customer needs, and then establishing policies, procedures, and management and reward systems to support excellence in service delivery. Customer relationship management (CRM) is the concept of identifying

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customer needs: understanding and influencing customer behavior through ongoing communication strategies to acquire, retain, and satisfy the customer. The ultimate goal is customer loyalty. Some common characteristics of leading-edge customer-focused organizations are: o They have internal customers (for example, peers, coworkers, etc.) and/or external customers (for example, vendors, suppliers, etc.). o Their focus is on determining and meeting the needs of customers while treating everyone with respect and as if he or she is special. o Information, products, and services are easily accessible by customers. o Policies are in place to allow employees to make decisions in order to serve customers better. o Having customer-focused systems and policies in place. o Management and systems support and appropriately reward employee efforts to serve customers. o Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to the customer. o Continual benchmarking or comparison with competitors and related organizations helps maintain an acute awareness and implementation of best service practices by the organization. o The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to support business operations. o They build relationships through customer relationship management (CRM) programs. All companies and organizations have internal or external customers, or both. Internal customers are people within the organization who either require support and service or provide information, products, and services to service providers who interact with external customers. External customers are those people outside the organization who purchase or lease products and services. The term service sector as used by the Census Bureau and the Bureau of Labor Statistics in their reports and projections typically includes: o Transportation, communication, and utilities o Wholesale trade o Retail trade o Finance, insurance, and real estate o Other services (including businesses such as legal firms, barbershops and beauty salons, personal services, housekeeping, and accounting) o Federal government o State and local governments

A. The Concept of Customer Service 

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The concept or practice of customer service is not new throughout the world. o Over the years, it has evolved from a meager beginning into a multibillion-dollar, worldwide endeavor. In the past when many people worked on farms, small artisans and business owners provided customer service to their neighbors. o To supplement their income, many people made and sold or bartered products from their homes in what came to be known as cottage industries. When industry, manufacturing, and larger cities started to grow, the service industry really started to gain ground.

B. Post–World War II Service in the United States  

After World War II, the desire, and in some cases need, to obtain products and services started to grow throughout much of the world. In the United States, there was a continuing rise in the number of people in service occupations.

C. The Shift to Modern-Day Service 

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The age of the service economy, a trend in which businesses have shifted from primarily production and manufacturing to more service delivery, has been alive and strong for some time now. o Tied to this trend has been the development of international quality standards by which effectiveness is measured in many multinational organizations. Organizations such as the International Council of Customer Service Organizations (www.iccso.org) work to help develop and promote service and professional excellence standards throughout the world. o This is being done by setting internationally acceptable standards and certifications to create a global atmosphere of service. To help attract and maintain a more loyal customer base, many customercentric organizations are stepping up their enthusiasm and support for such standards.

II. Changes in the Service Sector

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Research from the Bureau of Labor Statistics points to changes in the workforce through at least 2029. o Service-providing sectors will account for most of the jobs added by 2029. o Of the 6.0 million jobs projected to be added to the economy, about half are expected to be in the healthcare and social assistance sector. o The impact of these numbers can be seen as technology replaces many production-line workers and increasing numbers of service jobs are created. o Technology-related service jobs, such as those of database administrators, computer support specialists, computer scientists, computer engineers, and systems analysts are expected to continue to grow at a rapid pace. A. Impact of the Economy 

According to leading economists, today’s economy is affecting jobs in three ways: o Overall quantity of jobs created o The distribution of jobs among industries, occupations, geographic areas, and organizations of different sizes o The quality of jobs, measured by wages, job security, and opportunities for development 1. Quantity of Jobs Being Created 

According to the Bureau of Labor Statistics: o The 20 occupations shown in Figure 1.5 in the text are expected to add about 4.9 million jobs. That’s more than 40 percent of the 11.5 million total new jobs projected for all occupations.

2. Distribution of Jobs 

Two parallel trends in job development are occurring: o The first comes about from the need for employees to be able to have regular access to personal and professional networks and to engage in collaborative exchanges. o The second trend in job development arises from the ease of transmission and exchange of information by means of technology.  It is called either telework or telecommuting and various other terms describe it.

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 The practice does not include the self-employed. With enhanced phone technology, broadband Internet access facilitates more personal communication with customers, suppliers, distributors, and colleagues. With visual imaging and collaboration software like, Skype, Zoom, and GoToMeeting; instant messaging; social media; e-mail; text chat; and other technology, employees can now work from their homes or satellite office locations worldwide. Government agencies, technology-focused organizations, and many companies with large staffs in major metropolitan areas that experience traffic congestion have used telework and telecommuting for a number of years to eliminate the need for employees to travel to work each day and to reduce corporate overhead, such as office space and technology, utility, and equipment costs. Even though many organizations have experienced savings, some companies prior to the pandemic were reversing their use of telecommuters and brought their employees back to the organizational worksite after indicating discontent with the results of the efforts to have people work independently. The importance and impact of working remotely by incorporating technology into the workplace formula has been amplified tremendously since the onset of the COVID-19 pandemic.

3. Quality of Service Jobs  

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The last decade of the twentieth century saw increasing economic growth, low interest rates, and new job opportunities. Unemployment rates reached a historic low in 1999, and then rose dramatically as the worst recession (2007–2009) since the Great Depression occurred and resulted in unemployment rates of 6 to 14 percent globally. Another economic crisis began in 2020 with the COVID-19 pandemic. The impact of the resulting sharp decline in employment affected virtually every aspect of life. Employees who do obtain and maintain the better customer service jobs that provide good working conditions, security, and benefits will be the ones who are better educated, trained, and prepared. o They will also be the ones who understand and have tapped into the concept of professional networking—the active process of building relationships and sharing resources.

III. Societal Factors Affecting Customer Service  

The economies of America and many geographic areas are being dramatically changed by the forces that are shaping the world. Some of the major shifts that continue to occur each year around the world are: o Shifts in consumer needs, wants, and expectations o Declining economic conditions in some areas o Demographic shifts in population o Constant technological change o Globalization o Deregulation of industries o Geopolitical changes o Increases in the number of white-collar workers o Socioeconomic program development o More women entering the workplace A. COVID-19 Worldwide Pandemic  

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Few events in modern history have directly impacted the way of life for so many people and organizations in such a short period. More people have started working remotely from home, and customer service employees of the future will need enhanced technology skills and the ability to communicate more effectively via phone, video, and in writing. Interacting mainly via technology has its limits when it comes to the ability to develop and use interpersonal skills like listening, reading nonverbal cues, and feeling more connected to others, and such a lack of interpersonal skills can negatively impact service levels. Because of the duration of the worldwide medical crisis, people and organizations are likely never going to want to return to the old norms related to how services are delivered.

B. Shifts in Consumer Needs, Wants, and Expectations  

Consumer behavior continues to shift. Economists use demand curves to illustrate shifts in consumer behavior. They are the graphic representation of expected behavior in the real world used to predict coming trends or shifts in consumer needs, wants, or expectations.

C. Global Economic Shifts  

Not since the 1980s have economic indicators (e.g., stock trades, home sales, international transactions, etc.) been in such flux worldwide. Events contributing to this economic flux include the recession of 2007-2009, the COVID-19 pandemic beginning in 2020, and the United Kingdom's exit from the European Union in 2020.

1. The Impact of Government and the Economy 

In addition to governmental policy and economic changes, new legislation impacting health care and taxes, job elimination in the government sector, and shifts in consumer spending can significantly impact many organizations, forcing downsizings and in many cases closures.

2. Consumer Mindset Changes 

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Large numbers of customers search and do their homework for products and services online and often use retail outlets as a showroom to physically examine things they are interested in potentially purchasing online. Since the start of the pandemic, many consumers have avoided inperson businesses, forcing these organizations to demonstrate their adherence to approved scientific guidelines and to ensure their staff is properly trained on prevention and appropriate customer service techniques.

3. Changes in Business Strategies 

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Large retail businesses compete with online retailers by using strategies such as price-matching. o Many smaller and independently-owned businesses do not have the resources to use these strategies, forcing them to sell out or cease operations. Many companies have made dramatic shifts in the way they do business and attempt to attract and hold customers. Because of the financial meltdown that occurred during the high point of the recession and the economic impacts of the pandemic, many organizations that have been household names for decades and had

international presence have cut back severely on the size of their workforce and inventory and sold off, merged, or closed operations. o Projections are that numerous other well-known organizations are likely to either disappear soon or significantly reduce their presence in the near future. D. Shifts in the Population and Labor Force  

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Today’s labor force is older, more racially and ethnically diverse, and composed of more women than in the past. According to U.S. Census data, the U.S. resident population is projected to grow from 319 million to 417 million between 2014 and 2060, reaching 400 million in 2051. Several significant factors will shape the future demographics of the U.S. population: o By 2030, one in five Americans is projected to be 65 and over. o By 2044, more than half of all Americans are projected to belong to a minority group (any group other than non-Hispanic White alone) o By 2060, nearly one in five of the nation’s population is projected to be foreign born. There will be a need for more consumer goods and services to provide for the needs and expectations of diverse customers. Since the size of the labor force is the most important factor related to the size and makeup of the available pool of workers, organizations that hire service representatives will have to make some adaptations related to the way they recruit and hire in order to obtain quality candidates for open positions.

E. Increased Efficiency in Technology 

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The development and increased sophistication of machines, service equipment, and computers have caused an increase in production and quality. An advantage of this change is that machines and equipment can work 24 hours, 7 days a week with few lapses in quality, with no need for breaks, and without increases in salary and benefits. o They also potentially enhance the ease of service delivery and provide faster processing. Technology is extremely attractive to profit-minded business and corporate shareholders and managers who are concerned with service delivery and

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how it impacts sales. Statistics from Internet World Stats indicate that as of October 27, 2020, there were an estimated 7,796,615,710 people in the world. Of that number, 4,929,926,187 use the Internet. The U.S. government passed the Recovery Act in 2009, with money allocated to expand nationwide Internet access to rural areas and into schools, libraries, public safety offices, and other community buildings. o With expanded Internet access, more people will have access to products and services via computers, smartphones, iPads, and similar devices. 1. Globalization of the Economy 

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Beginning in the 1960s, when worldwide trade barriers started to come down, a variety of factors have contributed to expanded international cooperation and competition. o This trend has been termed globalization, with many companies focusing on business-to-business (B2B) initiatives, as well as individual consumers. At some point, many companies make staffing and/or production decisions based on bottom-line figures. o When this happens, companies can, because of recent changes in the law, take their production or call center functions ―offshore‖ (offshoring) to other countries.  In doing so, companies often save money on costs such as production, wages, and benefits. In addition to offshoring, many organizations are also outsourcing job functions that have been traditionally handled internally (e.g., recruiting, payroll, etc.) to third-party companies that specialize in these areas. Related to offshoring and outsourcing, insourcing occurs when organizations decide to have internal employees assume functions and perform work instead of contracting out to third parties or outsourcing it.

F. Deregulation of Many Industries  

Deregulation is the removal of government restrictions on an industry. The continuing deregulation of major U.S. public services has caused competition to flourish.

G. Geopolitical Changes

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Events such as economic embargoes, political unrest, and conflicts and wars involving various countries have reduced U.S. business access and competition within some areas of the world while companies from some countries have free access in those areas. o These circumstances not only limit access to product, manufacturing, and distribution channels, but also reduce the markets to which U.S. businesses can offer products and services. The United States-Mexico-Canada Agreement (USMCA) enhances many of the provisions from the North American Free Trade Agreement, and includes stronger guidelines related to labor laws in Mexico, copyright protections for intellectual property, agriculture trade access with Canada, and a provision for future expiration of the agreement unless parties agree to extend it. o Further events, such as trade agreements with China and other Asian countries, have expanded or opened new political and economic doors. With increased ease of transportation and communication in today’s business world, companies cannot afford to ignore international competitors.

H. Changing Personal and Societal Values  

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Values are internalized and a result of individual life experiences and societal norms. Throughout the world, there has been a tremendous amount of dynamic change in recent decades due to economic instability, quickly expanding and enhanced technology, and global mobility where people move quickly and frequently. Because different societies view what is important from different perspectives, clashes can sometimes result when service providers encounter customers who have different values. As a result of societal values, companies often change their approach to doing business as a competitive strategy and to attract and hold customers. Because many consumers are now cost-conscious, are ecologically aware, and value sustainability, many automobile manufacturers are developing vehicles that are more energy efficient, use ecologically sensitive fuels and electric power systems, and cost less.

I. More Women Entering the Workforce 

The fact that more women are in the workplace means that many of their

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traditional roles in society have shifted, out of necessity or convenience, to service providers such as cleaners, cooks, and childcare providers. As women have become a larger part of the work force, they have slowly seen their income levels rise compared to those of their male counterparts, but have not yet reached equality in workplace compensation. As the pandemic and economic impacts progressed, many working women were employed in industries that were hard hit as customers and employees receded into their homes.

J. A More Racially and Ethnically Diverse Population Is Entering the Workforce 

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The increase in numbers of people from different cultures entering the workforce has had a profound impact on the business environment. o Members of this expanded worker category bring with them new ideas, values, expectations, needs, and levels of knowledge, experience, and ability. As consumers themselves, they bring a better understanding of the needs of the various groups that they represent. Projections from the U.S. Bureau of Labor Statistics paint a good picture for various service professions, but as we witnessed during the pandemic, life as usual disappeared and may take quite a while to return or to at least settle into a new norm. o What that will mean for employment potential in the service sector and other occupations is unknown, but it is safe to say that the service sector is one area that will improve quickly once life stabilizes.

K. More Older Workers Entering or Remaining in the Workforce 

The median age of people in the United States is rising because of the aging of the ―baby boom‖ generation (those born between 1946 and 1964). o Older members of that generation will likely still be working in some capacity out of desire to stay engaged or necessity to supplement retirement income.

L. Growth of E-Commerce  

The past two decades have been witness to unimagined use of the personal computer and the Internet by the average person. E-commerce refers to the entire spectrum of companies that market products and services on the Internet and through other technology, and the

process of accessing them by consumers. IV. Consumer Behavior Shifts A. Expectation of Quality Service 

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Most customers expect that if they pay a fair dollar, in return they will receive a quality product or service. o If their expectations are not met, customers simply call or visit a competing company where they can receive what they think they paid for. Companies recognize that if they do not meet the service expectations of customers, they lose business and revenue. o Thus, the superior service providers invest large amounts of money in training and empowering employees.

B. Enhanced Consumer Awareness and Preparation 

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Customers today are not only more highly educated than in the past, they are also well informed about the price, quality, and value of products and services. o This has occurred in part through the advertising and publicity by companies competing for market share and by the activities of consumer information and advocacy groups that have surfaced. Hence, all business owners find that they have to continually prove the worth of their products and services. o They must provide customer satisfaction or face losing customers to competitors.

V. The Service Environment A. Components of a Service Environment 

The six key components of a service environment are the customer, organizational culture, human resources, products or services, delivery systems, and quality service. o With the exception of the customer, all of these factors are under the control of the service provider and staff.

B. The Customer

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The central component in a customer-focused environment is the customer. o All aspects of the service organization revolve around that crucial entity. 1. External Customers 

External customers are those people outside the organization who buy, rent, or lease products and services.

2. Internal Customers   

Internal customers include coworkers, employees of other departments or branches, and other people who work within the same organization. One way to improve internal customer service is to shift thinking of other employees as ―coworkers‖ and refer to them as ―customers.‖ The important point to remember related to your internal customers is that you must take care of them, just as you do your external customers.

C. Organizational Culture  

Organizational culture includes any element of an organization that a customer encounters. Typically, culture includes the dynamic nature of the organization and encompasses the values and beliefs that are important to the organization and its employees and managers.

D. Human Resources  

Human resources refers to the employees of an organization. To make the culture work, an organization must take great care in recruiting, selecting, training, retaining, and supporting qualified people. 1. Strategies for a Successful Job Interview 

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Anyone looking to enter the customer service sector as a career would do well to factor in how a potential employer views and values its employees. A big part of interview preparation is to ask your recruiter or other interviewer questions about the organization’s mission, goals, and values.

E. Products and Services   

The fourth component of a service environment is the products and services offered by an organization. A product or service may be a tangible item manufactured or distributed by the company or a service available to the customer. There are three potential areas of customer satisfaction or dissatisfaction: o Quality o Quantity o Service effectiveness

F. Delivery Systems  

The fifth component of an effective service environment is the delivery system—method(s) by which the product or service is delivered. In deciding on delivery systems, organizations examine the following factors: o Industry standards o Customer expectations o Capabilities o Costs o Current and projected requirements

G. Quality Service 

Stated simply, service is the manner in which you and your employees treat your customers and each other as you deliver your company’s products/services.

VI. Addressing the Changes 

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With all the changes, developing strategies for providing premium service that will attract and hold loyal customers has become a priority for most organizations. o To this end, organizations must become learning organizations— organizations that value knowledge, education, and employee training. In the past, many organizations took a reactive approach to service by waiting for customers to ask for something or by trying to recover after a service breakdown. o In today’s economy, a proactive approach of anticipating customer needs is necessary and becoming common.

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To excel, organizations must train all employees to spot problems and deal with them before the customer becomes aware that they exist. If a service breakdown does occur, managers in truly customer-focused organizations should empower employees at all levels to do whatever is necessary to satisfy the customer. o This concept is known as service recovery, the process of correcting or remedying something that has not gone as promised involving provision of a product or service to a customer.

Class Activities and Sample Assignments 1. Ask students to get into discussion groups to discuss their best and worst experiences with customer service. (LO 1-1) 2. Ask students to get into discussion groups for onsite/on-ground courses, and discuss any of the questions you choose from the discussion opportunities section below. (LO 1-1 through 1-6) 3. Ask students, either alone or in teams, to visit a retail store. After visiting the store for at least 15 minutes, ask them to write a report or prepare a presentation addressing how well the company met each of the components of a customerfocused environment and what can be done if they need to make improvements. (LO 1-5, 1-6) 4. Ask students to bring in a recent newspaper or magazine and put themselves into groups of 5 or 6. Then, using their articles, find at least 4 examples of socioeconomic, demographic, consumer behavior, and economy articles that might impact customer service. Have them prepare and present a summary of their articles, along with a description of how customer service can be impacted as a result of these articles. Divide students into equal groups (3-4 people per group, depending on the class size) and give each group a marker and sheet of flip chart paper to use as they participate in the activities noted herein or in those that you develop. (LO 1-2, 1-3, 1-4)

Discussion Opportunities 1. In what specific ways do you see technology impacting customer service? (LO 1-4 and 1-5)

2. Which of the demographic changes discussed in the chapter has the greatest impact on customer service in your opinion? Why? (LO 1-2 and 1-3) 3. What does great customer service mean to you? (LO 1-1) 4. Give examples of companies you think focus on all six areas of the customerfocused environment. Describe how you think the company meets all of these areas. (LO 1-5) 5. This chapter discussed learning organizations. How can individuals contribute to this ideology? (LO 1-6)

In the Real World Notes (p. 7) Every chapter has an opening, real world example of customer service. This section in the instructor’s manual will address the opening and give suggestions on initiating class discussion. Retail—Amazon.com This opening discussed Amazon.com. Jeff Bezos founded his company in 1994 as ―Cadabra.com‖ and launched Amazon.com out of his garage in 1995. By 2016, Bezos boasted that the company was the fastest to ever reach the $100 billion sales mark. As the company’s capabilities and reputation grew, so did its product line. As the world’s largest Internet retailer, the company dominates e-commerce through superior electronic and cloud computing sales and marketing. Some of Amazon’s success strategies have included: opening websites in numerous foreign countries, acquiring established catalog businesses like Zappos.com, patenting 1-Click checkout, offering free shipping on orders over $25.00, and setting up a textbook trade-in program for students. These initiatives have been focused at driving up revenue while providing a seamless shopping experience for a diverse customer base with varying needs, wants, and expectations. Amazon’s vision statement: ―To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.‖ The questions and possible answers for this situation are as follows: 1. What have you heard or experienced related to Amazon’s approach to customer

service? There may be a variety of answers. Some of the answers you may see include the large selection of books, music, DVDs, and electronics, and many other commercial items the retailer sells. Amazon sells almost anything and delivers it to the customer’s door. Customer service focuses on selection and quick delivery. 2. From a service perspective, how does this company differ from other online businesses that you have dealt with or heard of? The strengths of the organization are the number of product lines, the ease of ordering, and quick home delivery. 3. What do you believe to be this company’s customer service-related strengths and weaknesses? Why do you feel this way? Many students will feel that one company is the same as another. Use this question as an opportunity to ask students about their experiences with customer service, particularly in the online retail industry. 4. What role do you think Jeff Bezos plays in the service culture of this organization? Explain your answer. One good way of answering this would be that he observed predictions that online commerce would grow dramatically in coming years and decided to first focus on five product lines that would sell well. Only as the company’s capabilities and reputation grew, did Bezos expand its product lines. Amazon has continued to be a retail innovator by using strategies such as an associate program to allow affiliates to place Amazon banner links on their own websites. If the prospect purchases any item, the associate receives a sales commission. 5. As a consumer, would you now consider using Amazon’s services in the future? Why or why not? A variety of answers can be expected here. You can ask students how much customer service would impact their decision on which online retail company to use, and compare that to price—which is more important? Can the student, as a consumer, avoid such a retail giant?

Work It Out Notes Every chapter has several Work It Out sections that ask the students to think about the material a bit deeper and relate it to their own life. This section will provide notes for class discussion for each of these Work It Out topics. Work It Out 1.1—Improving Service Quality (p. 23) This box asks students to list some of the changes related to service that students have personally witnessed in the business world. Are these changes for better or worse? Students may cite not being able to get a hold of an English-speaking person when calling for technical help or too many buttons to press to speak with a real person, but they may also cite the ability to order things online, live chat, and other features for a better customer service experience. You can facilitate a discussion here on how companies can remedy the things about customer service that have gotten worse. In other words, ask them to come up with solutions, too. Work It Out 1.2—Personal Exposure to the Global Trend (p. 38) This box helps students recognize the impact that the global trend of change in values has on them and their family as consumers. Students are asked to list five major products that they or their family members own, along with their country of origin. Most likely, students will find 10-15 countries of origin where these products are manufactured. Work It Out 1.3—Who Are My Internal Customers? (p.47) This Work It Out question asks students to think about internal versus external customers. Ask students to get into groups and identify their internal customers in a current or past job. You can start by telling students that they are the external customers, whereas your program chair, dean, financial services department, registration department, and other faculty would be considered internal customers. Every job likely has both external and internal customers. Work It Out 1.4—Types of Service (p. 48) To complete this exercise, ask students to work in groups and brainstorm types of ―service‖ that are provided to external customers. Next, on the board or a flip chart, have them write the top ten things they came up with and then engage in a class

discussion on each. You can point out here that the intangibles are sometimes more important than the tangibles. For example, if a contractor remodels your bathroom, the service provided, including the timeliness, quality of work, and cleanup, is often as important as the work performed. Work It Out 1.5—Attracting and Training Employees (p. 51) This box looks at some of the things companies use to attract good quality workers besides compensation. In a down economy, companies generally have to offer less to attract people but often do provide attractive benefits to keep current people happy. Things such as signing bonuses, relocation packages, telecommuting, and flextime options are the norm, while extreme attractions might be that some companies provide day care services and concierge service to employees.

End-of-Chapter Material Notes Key Terms                    

Broadband Internet access (p. 18) Business-to-business (B2B) (p. 33) Chatbot (p. 31) Cottage industry (p. 12) Customer-focused organization (p. 9) Customer relationship management (CRM) (p. 10) Customer satisfaction (p. 44) Customer service (p. 9) Delivery system (p. 51) Demand curve (p. 25) Deregulation (p. 35) Downsizing (p. 21) E-commerce (p. 42) External customers (p. 10) Globalization (p. 33) Human resources (p. 48) Insourcing (p. 35) Instant messaging (p. 19) Internal customers (p. 10) Learning organization (p. 53)

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Networking (p. 22) Offshoring (p. 34) Organizational culture (p. 48) Outsourcing (p. 34) Product (p. 9) Products/services (p. 51) Service economy (p. 14) Service environment (p. 44) Service industry (p. 9) Service recovery (p. 53) Service sector (p. 11) Skype (p. 19) Small Business Administration (SBA) (p. 53) Social media (p. 19) Telecommuting (p. 18) Telework (p. 18) United States-Mexico-Canada Agreement (USMCA) (p. 36) Virtual assistant (p. 31) Zoom (p.19)

Review Questions 1. What is customer service? Customer service is defined as the ability of knowledgeable, capable and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business. 2. Describe some of the earliest forms of customer service. Doctors visiting their patients’ homes (as opposed to the sick patients having to go into the doctor’s office) or door-to-door salespeople peddling goods are examples of the earliest forms of customer service. 3. What are some of the factors that have facilitated the shift to a service economy? Some of the factors that have facilitated the shift to a service economy are

expectations of customers, changes and shifts in consumer behavior, and use of technology in customer service transactions that used to be done face-to-face. 4. What have been some of the causes of the changing business environment in recent decades? Some of the causes of the changing business environment in recent decades are globalization, demographic shifts in population, geopolitical changes, more whitecollar workers, and more women entering the workplace. 5. Describe the impact of a company’s culture on its success in a customer-focused business environment. Discuss why each is important. The entire company must be trained on the service culture and it must resonate through all aspects of the organization. It must be widely communicated in order to be effectively implemented. The organization’s culture sets the tone for the way in which service is delivered and how service providers interact with both internal and external customers. 6. What role does the human resources element of the customer service environment play in customer satisfaction? Organizations rely on employees to provide service excellence to customers, and seek employees who are skilled, motivated, and enthusiastic, and who possess the knowledge, skills, and competencies to professionally serve customers. 7. What three factors related to an organization’s products or services can lead to customer satisfaction or dissatisfaction? There are three potential areas of customer satisfaction or dissatisfaction—quality, quantity, and service effectiveness. If your customers receive the correct product(s) at a competitive price that they perceive to be of good quality along with service at the level expected, in the timeframe promised or viewed as acceptable, they will likely be happy. 8. When organizations select a delivery method for products or services, where do they get information on the best approach to take? Organizations examine the following factors: industry standards, customer expectations, capabilities, costs, and current and projected requirements.

9. What are the six key components of a service environment and how does each directly impact customer loyalty and satisfaction? 1. The customer 2. Organizational culture 3. Human resources 4. Products or services 5. Delivery systems 6. Quality Service Customers, whether internal or external, are the ―star‖ of the show and should be the central focus of all workplace efforts. By striving to identify the specific needs of each individual customer, and then acting to satisfy him or her, employees can help ensure his or her loyalty, satisfaction, and positive word-of-mouth publicity. By remembering that all aspects of the service organization revolve around that crucial entity and that without the customer, there is no reason for any organization to exist, service professionals help ensure personal and business success. 10. Why are many organizations changing to learning organizations? To excel, organizations must train all employees to spot problems and deal with them before the customer becomes aware that they exist. Every employee must take personal responsibility for customer care. If all employees assume ownership for continuous product and service quality improvement, their organization can flourish.

Collaborative Learning Activities 1. Walk around the room as this discussion takes place to ensure students stay on topic. Ask probing questions to each group as you walk around, such as:  What is the role of schools today in terms of customer service?  Do you think schools provide good customer service?  How can schools get better (while staying in budget) at providing good customer service?  Who should be responsible for preparing students for their role in providing customer service? 2. Walk around the room as this discussion takes place to ensure students stay on the

topic and answer the following questions:  Based on what you read in this chapter, what factors might be affecting survey recipients?  How do the statistics shown in this study analysis potentially impact service organizations?  How do you see these responses personally impacting you in the future? 3. Walk around the room as this discussion takes place to ensure students stay on the topic and answer the following questions:  What additional competencies do you feel are necessary to be successful when working with customers?  Do you believe each of these competencies is crucial or not? 4. Walk around the room as this discussion takes place to ensure students stay on the topic and answer the following questions:  How do you believe this development has most affected customer service in your lifetime? Why do you believe this to be true?  Do you believe this development was a positive change? Why or why not?  Do you think the developments during your lifetime have impacted customer service more or less than earlier developments? Why or why not?

Face-to-Face—Getting Ready for New Employee Orientation at PackAll This situation asks the student to imagine they have been hired at PackAll and are about to attend an orientation. The orientation will address service culture, policies and procedures, techniques for handling customers, and specific job skills and requirements. The following questions are asked of the students: 1. What interpersonal skills do you currently have that will allow you to be successful in your new position? Student answers will vary. They may mention interpersonal skills like listening, reading nonverbal cues, and feeling more connected to others. 2. After reading through this chapter, are there other skills and knowledge that you might need to acquire to perform required duties in this organization? How will you go about reducing those deficits?

Most skills and knowledge are specific to the actual position. The most direct way is to approach the manager. Not only do PackAll owners/operators attend a rigorous eight-week management training program, but they participate in retreats in which they share best practices, receive additional management training, and have an opportunity to ask questions in a structured setting. It is in their best interest that they provide their employees with ongoing training that fits their organization’s needs, mission, and values. If the deficit lies in technology, the employee might seek training at a community college, for example. 3. As a new employee, what general questions about the organization and handling of customers should you ask your supervisor? Again, answers will vary. As part of the interview process, the employee should have questioned the organization’s mission, goals, and values and asked about the manager’s/supervisor’s approach to leadership. Questions will arise naturally as the employee has on-the-job experiences. 4. If a customer asks for a service that PackAll does not provide, how will you handle the situation? Exactly what will you say? Student answers will vary, but handling of the situation will depend on the service provider’s training and how much leeway this person has been given by the manager as well as by company policy. Consider asking students to work on this by themselves, then share answers within small groups. The most interesting question is number two, as it concerns how situations are handled when someone has not been trained or needs additional training. Ask students to share strategies used in their current jobs to handle customers who are difficult or challenging.

Chapter 2 Contributing to the Service Culture Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 38 Role-Play Activity .......................................................................................................... 13 Discussion Opportunities .............................................................................................. 15 In the Real World Notes ................................................................................................ 15 Retail—Target ............................................................................................................. 15 Work It Out Notes .......................................................................................................... 17 Work It Out 2.1—Organizational Culture ..................................................................... 17 Work It Out 2.2—Think about the two return policies in Figure 2.5 ............................. 17 Work It Out 2.3—Managing Customer Encounters ..................................................... 17 Work It Out 2.4—Training for Service ........................................................................ 17 Work It Out 2.5 ........................................................................................................... 18 Work It Out 2.6—Your Customer Expectations ........................................................... 18 End-of-Chapter Material Notes...................................................................................... 18 Key Terms.................................................................................................................. 18 Review Questions ...................................................................................................... 19 Collaborative Learning Activity ................................................................................... 21 Face to Face—You and Your New Job in Customer Service ...................................... 22

Learning Outcomes LO 2-1 Explain the elements of a successful service culture. LO 2-2 Define a service strategy. LO 2-3 Recognize customer-friendly systems. LO 2-4 Implement strategies for promoting a positive service culture. LO 2-5 Separate average companies from exceptional companies. LO 2-6 Identify what customers want.

Brief Chapter Outline I. Defining a Service Culture A. Service Philosophy or Mission B. Employee Roles and Expectations 1. RUMBA 2. Employee Roles in Larger Retail and Service Organizations 3. Employee Roles in Smaller Retail and Service Organizations 4. Employee Roles in Nonprofit Organizations C. Policies and Procedures D. Products and Services E. Motivators and Rewards F. Management Support 1. Strive for Improvement 2. Look for a Strong Mentor in Your Organization 3. Avoid Complacency G. Employee Empowerment H. Training II. Establishing a Service Strategy III. Customer-Friendly Systems A. Service System Components 1. Advertising 2. Complaint or Problem Resolution B. Service Delivery Systems 1. Direct or Indirect Delivery 2. Third-Party Delivery (Outsourcing/Offshoring) C. Tools for Service Measurement IV. Eleven Strategies for Developing and Promoting a Positive Service Culture V. Separating Average Companies from Excellent Companies VI. What Customers Want

Chapter Outline and Lecture Notes I. Defining Customer Service 



Service culture is a service environment made up of various factors, including the values, beliefs, norms, rituals, and practices of a group or organization. o No two organizations operate in the same manner, have the same focus, or provide management that accomplishes the same results. o A culture includes the values, norms, beliefs, rituals, and practices of a group or organization. o Any policy, procedure, action, or inaction on the part of the organization contributes to the service culture. Attitude—the emotional responses to people, ideas, and objects. o They are based on values, differ between individuals and cultures, and affect the way people deal with various issues and situations. o Attitude is crucial to the success of an organization Customer-centric is a term used to describe service providers and organizations that put their customers first and spend time, effort, and money identifying and focusing on the needs of current and potential customers. o Efforts are focused on building long-term relationships and customer loyalty rather than simply selling a product or service and moving on to the next customer.  Successful organizations are customer-centered or customer-centric and focus on individual needs. In the past, organizations were continually making changes to their product and service lines to try to attract and hold customers. o Now, many major organizations have become more customer-centric and stress relationships with customers. o Advertising campaigns often reflect this new awareness as companies try to communicate that they are focused on their customers. A. Service Philosophy or Mission 

Generally, an organization’s approach to business, its mission or its service philosophy, is driven from the top of the organization. o Upper management, including members of the board of directors, when appropriate, sets the vision or tone and direction of the organization. o Most successful organizations have written mission and vision

statements that answer the questions of ―What does the organization do?‖ and ―Why does the organization exist?‖ Leadership, real and perceived, is crucial to service success.

B. Employee Roles and Expectations 

Depending on the job, the size and type of the organization, and the industry involved, the employee roles and employee expectations may be similar from one organization to another, and yet they may be performed in a variety of different ways. o Such roles and expectations are normally included in a job description and in the performance goals. 1. RUMBA 

RUMBA is an acronym for five criteria (Realistic, Understandable, Measurable, Believable, and Attainable) used to establish and measure employee performance goals.

2. Employee Roles in Larger Retail and Service Organizations 

Customers expect service employees to typically have at least the following qualifications and competencies in both large and small organizations: o Broad general knowledge of products and service. o Interpersonal communication skills (e.g., verbal, nonverbal, and listening). o Technical expertise related to products sold and serviced. o Positive, customer-focused, ―can-do‖ attitude. o Initiative. o Motivation. o Integrity. o Loyalty (to the organization, to products, and to customers). o Team spirit. o Creativity. o Sound ethics. o Time management skills. o Problem-solving capability. o Conflict resolution skills.

3. Employee Roles in Smaller Retail and Service Organizations 



The growth of sole proprietorships (one-owner businesses) and small businesses has an upside in that they provide more choices for customers. o On the downside, this growth also created problems for people making the transition from large to small organizations. Employees in small businesses perform greatly varied tasks. o To stave off failure and help ensure that customer needs are identified and satisfied, owners and employees in such establishments must continually strive to gain new knowledge and skills while working hard to deliver a level of service equal to or superior to that offered by the bigger organizations.

4. Employee Roles in Nonprofit Organizations 

Even though revenue generation is not the primary goal in nonprofit organizations, money is a significant force. o Without donations, grants, and other fund-raising efforts, these organizations cannot provide the crucial services and products to their customer/client base (often lower income, disabled, older people, or others who have few other alternatives for attainment of needed items and services). o In such organizations, administrators, staff, and volunteers provide a wide degree of services and support.

C. Policies and Procedures  



Although there are a lot of local, state, and federal regulations with which you and your organization must comply, many policies are flexible. Customers negatively meet organizational culture directly when a service provider hides behind ―company policy‖ to handle a problem. o The goal should be to respond to policy customer requests and satisfy needs as quickly, efficiently, and cheerfully as possible. Return policies in a retail environment are a case in point. o An effective return policy is part of the overall service process. o In addition to service received, the return policy of an organization is another gauge customers use to determine where they will spend their time and money.

D. Products and Services 

If customers perceive that the organization offers reputable products and services in a professional manner and at a competitive price, the organization will likely reap the rewards of loyalty and positive ―press.‖ o On the other hand, if products and services do not live up to expectations or promises, or if the service employee’s ability to correct problems in products and services is deficient, the employee and the organization could suffer adversely.

E. Motivators and Rewards 

People work more effectively and productively when their performance is recognized and adequately rewarded.

F. Management Support 

To handle some customer-related situation, frontline service providers will have to depend on the knowledge and assistance of a more experienced employee or supervisor or manager and defer to his or her experience or authority. o A key role played by the manager, supervisor, and/or team leader in a customer-related situation is to provide effective, ongoing coaching, counseling, and training to their subordinates. 1. Strive for Improvement 

Customer service can be frustrating and, in some instances, monotonous. o Employees may need to create self-motivation strategies and continue to seek fulfillment or job satisfaction by themselves.

2. Look for a Strong Mentor in Your Organization 

Mentors are people who are well acquainted with the organization and its policies, politics, and processes. o They are well connected (inside and outside the organization), communicate well, have the ability and desire to assist others (the protégé), and are capable and experienced.

3. Avoid Complacency 

The people who excel, especially in a service environment, are the ones who constantly strive for improvement and look for opportunities to grow professionally. o They also take responsibility or ownership for service situations.

G. Employee Empowerment 



Employee empowerment is one way for a supervisor to help ensure that service providers can respond quickly to customer needs or requests. o The intent of empowerment is a delegation of authority where a frontline service provider can take action without having to call a supervisor or ask permission. Empowerment is also an intangible way that successful service organizations reward employees. o Often someone who has decision-making authority feels better about himself or herself and the organization.

H. Training 

To perform a job successfully and create a positive impression in the minds of customers, frontline employees must be given the necessary tools. o Depending on the position and the organization’s focus, this training might address interpersonal skills, technical skills, organizational awareness, or job skills, again depending on the position.

II. Establishing a Service Strategy 

The first step a company should take in creating or redefining its service environment is to make sure it knows who its customers really are and how it plans to attract and hold those customers. o It is not just the organization’s responsibility to ensure the success of customer service; service professionals must be working toward helping make them successful.

III. Customer-Friendly Systems A. Service System Components



Customer-friendly systems refers to the processes in an organization that make service seamless to customers by ensuring that things work properly and the customer is satisfied. o Two customer-friendly systems that can send positive messages are advertising and complaint or problem resolution. 1. Advertising 



Advertising campaigns should send a message that products and services are competitive in price and that the quality and quantity are at least comparable to those of competitors. An advertisement that appears to be deceptive can cost the organization customers and its reputation.

2. Complaint or Problem Resolution  

The manner in which complaints or problems are resolved can signal the organization’s concern for customer satisfaction. A service professional should make recommendations for improvement whenever spotting a roadblock or system that impedes provision of service excellence.

B. Service Delivery Systems 



Service delivery systems are a combination of people, technology, and other internal and external elements that make up an organization’s method of getting its products and services to customers. The organization must determine the best way to deliver quality products and service and to provide effective follow-up support to its customers. o This includes the way information is made available to customers, initial contacts and handling of customer issues, sales techniques (hard sell versus relationship selling), order collection and processing, price quotations, product and service delivery, processing of paperwork, invoicing, and follow-up. 1. Direct or Indirect Delivery 

The type of delivery system used (direct or indirect contact) is important because it affects staffing numbers, costs, technology, scheduling, and many other factors.

o o

In a direct contact environment, customers interact directly with people. In an indirect system, customers’ needs are met primarily with selfservice through technology (possibly integrated with the human factor in customer contact/call centers) integrated with Internet services.  Automatic teller machines (ATMs) versus branches of a bank would be an example of direct versus indirect systems.

2. Third Party Delivery (Outsourcing/Offshoring) 



Many companies are eliminating internal positions and delegating, assigning, or hiring outside (third-party) organizations and individuals to assume eliminated and newly created roles (call center customer support functions, human resource benefits administration, accounting functions, and marketing) for an agreed-upon price (normally without the extra cost of benefits). The practice of outsourcing jobs to a third party provides multiple benefits while also bringing with it some downsides. o On the positive side, companies can save money by:  Eliminating large ongoing salaries.  Reducing health benefits, retirement, and 401(k) payments.  Reducing the need to rent or build and equip physical structures.  Avoiding the need to purchase and update computers and related equipment and a myriad of other equipment.  Increasing workforce size without necessarily doing likewise to the budget.  Bringing in new, fresh expertise, ideas, and perspectives from outside the organization. o On the negative side:  Long-term employee expertise is lost.  Employee loyalty to the organization suffers.  Succession planning opportunities and the potential to groom and hire from within an enculturated workforce is reduced.  The organization’s reputation in the eyes of local citizens is potentially tarnished due to sending jobs away.  The morale of the ―survivors‖ (employees whose jobs were not eliminated) is potentially adversely affected.  Managing becomes more complex.



 

Customers must deal with ―strangers‖ with whom they cannot build a long-term relationship because their provider may be gone the next time they call or stop by. Response time in getting a job or task completed may increase because of distance or other factors. Quality of work is not always up to expectations internally or for customers (e.g., dealing with service representatives who have hard-to-understand accents or do not fully understand the customer’s culture or expectations).

C. Tools for Service Measurement 

Some of the typical techniques or tools available to organizations for customer service data collection are: o Employee focus groups o Employee opinion surveys o Customer focus groups o Mystery shoppers o Customer satisfaction surveys o Customer comment cards o Profit and loss statements or management reports o Employee exit interviews o Walk-through audits o On-site management visits o Management inspections

IV. Eleven Strategies for Developing and Promoting a Positive Service Culture 

Following are 11 strategies for service success: o Partner with customers. o Explore your organization’s vision. o Help communicate the culture and organizational vision to customers— daily. o Demonstrate ethical behavior.  The code of ethics of the organization is intertwined with its culture.  Ethical behavior is based on values—those of the society, organization, and employees. o Identify and improve your service skills. o Become an expert on your organization. o Demonstrate commitment.

o o o o

Treat vendors and suppliers as customers. Share resources. Work with, not against, your customers. Provide service follow-up.  This can be through a formal customer satisfaction survey or telephone callback system or through an informal process of sending thank-you cards, birthday cards, special sale mailings, electronic messages, and similar initiatives that are inexpensive and take little effort.

V. Separating Average Companies from Excellent Companies 

The following factors can demonstrate an organization’s level of service commitment: o Executives spend time with the customers. o Executives spend time talking to frontline service providers. o Customer feedback is regularly asked for and acted upon. o Innovation and creativity are encouraged and rewarded. o Benchmarking (identifying successful practices of others) is done with similar organizations. o Technology is widespread, frequently updated, and used effectively. o Training is provided to keep employees current on industry trends, organizational issues, skills, and technology. o Open communication exists between frontline employees and all levels of management. o Employees are provided with guidelines and empowered (in certain instances, authorized to act without management intervention) to do whatever is necessary to satisfy the customer. o Partnerships with customers and suppliers are common. o The status quo is not acceptable.

VI. What Customers Want 



What customers want are things that customers typically desire but do not necessarily need. o It is value for their money and/or effective, efficient service. Following are seven common things that customers want and expect if they are to keep doing business with you and your organization: o Personal recognition  This can be demonstrated in a number of ways, such as sending

thank-you or birthday cards, returning calls in a timely fashion, etc. Courtesy  Basic courtesy involves pleasantries such as ―please‖ and ―thank you,‖ as there is no place or excuse for rude behavior in a customer service environment. Timely service  A customer service professional should provide prompt yet effective service.  They should work diligently to stay on schedule and at least explain when delays do occur, so the customer understands the reason for the wait. Professionalism  Customer service personnel should take pride in their work and exemplify ethics. Enthusiastic service  Deliver service with a smile, offer additional services and information, and take the time to give extra effort. Empathy  As a service provider, one should make every effort to be understanding, and to provide appropriate service.  A common strategy for showing empathy is the feel, felt, found technique—a process for expressing empathy and concern for someone and for helping that person understand that you can relate to the situation. Patience  Mask feelings of anger because of a policy, procedure, management, or the customer.  As a service provider, by suppressing the desire to speak out or react emotionally, you serve the customer professionally, and end the contact sooner.

Class Activities and Sample Assignments 5. The service culture of an organization is often defined in its mission statement. Ask students to find mission statements that define the service culture. (LO 2-1) 6. Give examples (or have students role-play the situations) using the feel, felt, found technique in the following situations: (LO 2-3 through 2-6) a. A customer is angry because the service department is not able to get to his

b. c. d. e.

home and fix his problem for another three days, but he wants it done tomorrow. A customer is disappointed that the price for a particular item has gone up since the last time she bought it. A customer is acting irritated and mentions the fact that he had to wait five minutes in line since no one opened another cashier lane. A customer has emailed because the clothing item she ordered on the website is much larger than standard sizes. A customer emailed because he keeps getting promotional emails even though he has requested his name be taken off the mailing list.

7. Identify specific types of training that might be needed to provide excellent customer service when performing the following jobs: (LO 2-3 and 2-4) a. A call center representative for a cable company b. A shoe store salesperson c. A plumber d. A teacher e. A department of licensing agent 8. Compare and contrast the differences between a mentor and a boss in a short paper or group discussion. (LO 2-1 through 2-6)

Role-Play Activity A Special Occasion (LO 2-6) Customer Role Do not share your role instructions with the ―service representative.‖ You are a young customer and just walked into MacMillan’s department store looking for a gift for your dad’s 50th birthday.    

Start the interaction for this situation by explaining that you are looking for a special birthday present for your father because he is turning 50 years old this weekend. After your initial explanation of why you came to MacMillan’s, wait for the salesperson to take control of the conversation. Act as you normally would in a situation like this. During the interaction, monitor verbal and nonverbal messages sent by the salesperson and respond as you believe is appropriate. Additionally:



Feel free to ask questions of the salesperson or add additional details of your needs as you think of them.

Service Provider Role Do not share your role-play instructions with your ―customer.‖ You are salesperson in a large department store (MacMillan’s). Today you are working in the men’s department. You have worked for the company for a little over a year since graduating from high school and starting college courses at the local community college. You want to become a retail manager once you finish your degree. You generally enjoy your job, but sometimes find dealing with some customers challenging. A young customer, who you estimate is around 20 years old just walked into the store looking for a birthday gift for his or her father. During your interaction with the customer, address the following issues:     

Greet the customer as you believe is professionally appropriate for your business. Make him or her feel welcome. Ask pertinent questions in order to identify your customer’s needs, wants, and expectations. Monitor verbal and nonverbal messages sent by the customer and respond appropriately. Carry on friendly dialogue, as appropriate. Close the transaction professionally and on a positive note.

Observer Role Watch the exchange between the customer and service provider and make notes of service challenges and successes, what the server did well, and what needs improvement from a service perspective. Instructor Debrief Notes Salespeople (and anyone else on the front line of customer service) are the ―face‖ of an organization. The manner in which they greet and interact with customers, and the manner in which they provide service can impact the customer-provider relationship. From the initial contact until the parting comments and everything in between, the service representative has the power to make or break a relationship. Training is an intricate part of preparing service representatives to be ready to handle a variety of customer types and situations. In situations where training is not readily available through the organization, service representatives should take the initiative to seek out additional knowledge and resources online, in publications,

through educational and professional resources, and by talking to more experienced service providers. Ultimately, the people on the frontline are the ones with whom customers interact directly. They are also the ones that help a customer form an opinion of the service experience and the organization. Explain that a positive customer interaction includes:  An effective and personal greeting  Rapport-building verbal and nonverbal messages  Actively listening to the customer  Effective identification of customer needs, wants, and expectations  A personalized close that includes thanking the customer and an offer to further assist in the future

Discussion Opportunities 1. Discuss a situation where you were not allowed, due to policies and procedures, to grant excellent customer service. If this has never happened to you, think of an example and discuss. (LO 2-3) 2. What would motivate you to provide good service to customers? Discuss how your motivation is related to the factors discussed in the chapter. (LO 2-1 through 2-4) 3. Of the items listed in the section on customer expectations, how would you rank them in terms of importance? Which are the top five most important expectations to meet? (LO 2-6) 4. This chapter discusses some of the ways customers gain information to evaluate products. How do you evaluate products? How important is customer service to your choice of products? (LO 2-3 through 2-6) 5. Using RUMBA, evaluate your personal goals in regard to your career. Do they meet the criteria of a RUMBA goal? If not, how might you change the goals so they do meet the criteria? (LO 2-1 through 2-5)

In the Real World Notes (p. 61) Retail—Target Since 1962, Target has opened nearly 1,900 stores in every state in the United States

and the District of Columbia. From its beginning, Target has grown into a multibilliondollar entity that employs a diverse population of over 350,000 employees, and it has formed partner relationships with powerful brands like CVS and Disney. Since 1994, Target’s tagline has been, ―Expect More. Pay Less.‖ To accomplish this promise, customers can shop in person at stores or on the company website (https://www.target. com). The company has also used its high-profile status to aid employees, communities, and customers, and has created multiple philanthropic endeavors, as well as encouraging employees to give back in their communities. The Target Corporation certainly has its eye on further growth as online competition with Amazon and Walmart and other large retailers continues to grow. However, with a progressive approach to serving external and internal customers and a vision for involvement with the communities that surround its brick-and-mortar stores, the future looks bright. 1. Do you have personal experience with this company? If so, describe your impressions. Students will likely have strong opinions about this company. Many students will have had personal experience as a customer of their brick-and-mortar or online stores. They may also be familiar with the benefits they offer employees. 2. How does this organization differ from other similar successful companies of which you are aware? Answers will vary, but some possibilities might include their female leadership, and the balance of price and quality. 3. Related to providing quality customer service, what do you think are some of the strengths of Target? Answers will vary. Students may discuss the close proximity of their stores, along with the options to shop in a store, order online, or order in advance and pick up their order at the store. 4. As a current or potential customer, what do you think the company might do to improve customer service and satisfaction? Answers will vary, depending on students’ experience as customers of Target. 5. Would you want to work for this company? Why or why not? Answers will vary. Students should make the point that it is important to work with a

company that has similar values as theirs.

Work It Out Notes Work It Out 2.1—Organizational Culture (p. 68) This first Work It Out box focuses on the components of organizational culture. The box asks students to think about their own organizations or ones they are familiar with and asks what the service philosophy of the organization is and what things make the organization unique. Students will likely enjoy talking about their own organizations, so instructors may consider doing this as a group discussion activity. The other questions ask about the factors that stand out about employee performance and other factors about the organizational culture. Students will likely have a list of positive and negative aspects or things that do not contribute to a service culture. One example would be lack of training or lack of empowerment. Finally, the last question asks students what they would do differently. Here, the instructor can make the point that the best employees are those who not only complain but offer solutions as to what can be done differently to make things better. Work It Out 2.2—Think about the two return policies in Figure 2.5 (p. 75) This box asks students to look at the two return policies in Figure 2.5 and react to them. To probe further, instructors can ask students how likely they would be to shop at either store depending on the return policies. To expand the discussion, consider leading a discussion on stores in an area close by that has generous return policies and not-sogenerous ones. What are the advantages from a customer service perspective? Are there disadvantages? Work It Out 2.3—Managing Customer Encounters? (p. 80) This box asks students to think about a situation where they witnessed or experienced a customer service situation in which a manager became involved. Ask students to discuss in groups and determine if bringing the manager into the situation was justified or if the employee should have been more empowered. Next, ask students to discuss how the manager handled the situation and what could have been done to improve the situation. For follow-up questions, instructors can ask students what role training has in a manager’s ability to handle situations well. Work It Out 2.4—Training for Service (p. 82)

This box asks students to discuss, in groups, the skills training needed to be in customer service. It also asks the types of training that students have had or need to have in this area to qualify for a position in customer service. Consider asking students to brainstorm a list of traits in groups and then write on the board or flip charts. Assuming most of the skills are emotional intelligence (EQ) type skills, such as friendly and approachable, instructors can make the point that while skills training is important, sometimes personality is equally important in getting a job. Work It Out 2.5 (p. 95) This box asks students to think about ethical behavior and then list some common unethical behaviors that employees might exhibit in the workplace. Discuss these behaviors with the students along with ways to avoid them. Work It Out 2.6—Your Customer Expectations (p. 100) This box asks students to draw on their own experiences of what ―customer-friendly‖ means to them. Have them list four or five expectations that most customers would say are typical.

End-of-Chapter Material Notes Key Terms             

Attitude (p. 63) Churn rate (p. 72) Customer-centric (p. 63) Customer-friendly system (p. 85) Employee expectations (p. 67) Employee roles (p. 67) Empowerment (p. 82) Ethical behavior (p. 94) Ethics (p. 94) Feel, felt, found technique (p. 100) Mentor (p. 81) Mission (p. 66) Mission statement (p. 66)

       

Protégé (p. 81) RUMBA (p. 67) Service culture (p. 63) Service delivery system (p. 86) Service measurement (p. 69) Service philosophy (p. 66) Vision statement (p. 66) What customers want (p. 98)

Review Questions 1. What are some of the key elements that make up a service culture? The elements of a service culture include the service philosophy or mission, employee roles and expectations, policies and procedures, management support, products and services, motivators and rewards, training, and employee empowerment. 2. How does management’s service philosophy affect the culture of an organization? Service philosophy of an organization is the direction or vision of the organization that guides the day-to-day interactions with customers. It is the approach that an organization takes to providing service and addressing the needs of customers. This will affect the organization’s culture as it is based on what the organization stands for. If all employees are aware of what their organization stands for, how it accomplishes its mission, and where it is headed in the future, they can play a crucial role in creating a service culture that strives to identify and meet customer needs, wants, and expectations. 3. How does RUMBA help clearly define employee roles and expectations? Why is each component important? Employee roles and expectations must be clearly defined and communicated in terms of certain characteristics, sometimes referred to as RUMBA, which stands for realistic, understandable, measureable, believable, and attainable. To be realistic, the company’s employee standards and responsibilities must be in line with the reality of the workplace and customer base. To be understandable, it must be communicated and clear to every employee. To be measureable, there has to be some way to determine the accomplishment of goals, usually by the numbers. To

be believable, every employee must commit to the goal and the people must believe it is achievable. Of course, management must also give employees the tools to achieve goals. 4. How can policies and procedures affect the customer’s impression of customer service? Customers negatively meet organizational culture directly when a service provider hides behind ―company policy‖ to handle a problem. If the policies prevent or make it difficult to provide customer service, it could create a negative perception. However, if employees are empowered, it can create a favorable impression when employees can do almost anything to make the customer happy. 5. What questions should you ask yourself about your role as a service provider? Students might consider asking who the customer is, what they can do to achieve organizational excellence, whether their efforts are focused on customer satisfaction, and whether they are empowered. 6. What are some indicators that a company has customer-friendly systems in place? Customer-friendly systems are apparent through policies that say ―We care‖ or ―You’re important to us.‖ The advertising used and the way complaints or problems are handled would be examples. 7. What are some of the tools used by organizations to measure their service culture? Following are some of the tools that organizations can use to determine how well they are providing customer service:  Employee focus groups  Employee opinion surveys  Customer focus groups  Mystery shoppers  Customer satisfaction surveys  Customer comment cards  Profit and loss statements or management reports  Employee exit interviews  Walk-through audits  On-site management visits  Management inspections

8. What are some strategies for helping promote a positive customer culture? Following are strategies to help promote a positive customer culture:  Partner with customers.  Explore the organization’s vision.  Help communicate the culture and organizational vision to customers—daily.  Demonstrate ethical behavior.  Identify and improve service skills.  Become an expert on the organization.  Demonstrate commitment.  Treat vendors and suppliers as customers.  Share resources.  Work with, not against, the customers.  Provide service follow-up. 9. What separates average organizations from excellent ones? Spending time with customers, taking customer feedback seriously, rewarding innovation, using technology productively, and communicating openly are some examples of how an excellent organization differs from an average one. 10. What are some typical things that customers want? Following are some of the typical things that customers want:  Personal recognition  Courtesy  Timely service  Professionalism  Enthusiastic service  Empathy  Patience

Collaborative Learning Activity 1.

In this day and age when many of the students work, it can be hard to arrange a field trip. What instructors can do, however, is ask students to note service in their daily dealings. For example, the student can note if the mission of an organization

comes through in the service that is provided. They can also observe and interact with the customer service providers to determine if the proper training and empowerment is taking place within the organization. 2.

Walk around the room as this discussion takes place to ensure students stay on the topic and answer the following questions:  Review the 11 strategies discussed in this chapter for promoting a positive service culture.  Which strategy does each student in the group believe he or she has the most opportunity to focus on as a service provider? Why?  As a class, do a tally to count the number of choices for each strategy (1–11). Discuss the reasoning behind these choices.

Walk around the room as this discussion takes place to ensure students stay on the topic and answer the following questions:  Based on what you read in this chapter and service providers whom you have witnessed, what factors might cause excellent service to fall short?  Brainstorm behaviors or techniques used by professional service providers as they work with customers face-to-face or over the phone. Would they be successful? Why or why not?

Face to Face—You and Your New Job in Customer Service This situation asks students to assume the new role in customer service at United Booksellers. The organization has been heralded for its high-quality service and friendly atmosphere. The facilities are nice, and the efficiency and helpfulness of the employees are notable. Each store has its own coffee shop where customers can relax and read. The organization employs 3,000 people and provides extensive customer service training before employees are allowed to interact with customers. The questions following this case include: 1. Are there indicators of United Booksellers’ service culture? If so, what are they? 2. If you were an employee, in what ways would you feel that you could contribute to the organizational culture? 3. If you were a customer, what kind of service would you expect to receive at United Booksellers? Why?

Answers will vary, but the point is to ask students to think about what personality traits they have that can contribute to a high-quality organization.

Chapter 3 Verbal Communication Skills Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 14 Role-Play Activity—A Family in Need ............................................................................. 17 Discussion Opportunities .............................................................................................. 19 In the Real World Notes ................................................................................................ 20 Insurance—GEICO Insurance .............................................................................................. 20 Work It Out Notes .......................................................................................................... 21 Work It Out 3.1—Communication Reality Check 22 Work It Out 3.2—My Pet Peeves

Work It Out 3.3—Analyzing Your Verbal Communication Skills Work It Out 3.4—Feeling Special

Work It Out 3.5—Perceptions Are Reality

Work It Out 3.6—Standing Up Assertively

Work It Out 3.7—Improving Feedback Skills 23 End-of-Chapter Material Notes ...................................................................................... 23 Key Terms 23 Review Questions24 Collaborative Learning Activity 25 Face to Face—Seeking Information from a Client

Learning Outcomes LO 3-1 Explain the importance of effective communication in customer service. LO 3-2 Recognize the elements of effective two-way interpersonal communication. LO 3-3 Project a professional customer service image through positive communication. LO 3-4 Provide feedback effectively. LO 3-5 Avoid language that could send a negative message and harm the customer relationship. LO 3-6 Use assertive communication techniques to enhance service. LO 3-7 Identify key differences between assertive and aggressive behavior.

Brief Chapter Outline I. The Importance of Effective Communication II. Ensuring Two-Way Communication A. Interpersonal Communication Model 1. Environment 2. Sender 3. Receiver 4. Message 5. Channel 6. Encoding 7. Decoding 8. Feedback 9. Filters 10. Noise III. Communicating Positively A. Prepare for Positive Customer Interactions 1. Identify Pet Peeves B. Let Your Customers Know Their Importance 1. Make Customers Feel Welcome 2. Focus on the Customer as a Person C. Address Customer Expectations Positively 1. Use Customer-Centric Language 2. Use ―Small Talk‖ 3. Use Positive ―I‖ or ―We‖ Messages 4. Ask Positively Phrased Questions 5. Be Specific 6. Examples

7. Listen Carefully and Respond Appropriately D. Nurture a Continuing Relationship 1. Ask Permission 2. Agree with Customers 3. Elicit Customer Feedback and Participation 4. Close the Transaction Professionally IV. Providing Feedback Effectively A. Verbal Feedback B. Nonverbal Feedback 1. Manage Body Language 2. Use Eye Contact Effectively 3. Use Positive Facial Expressions V. Avoiding Negative Communication VI. Dealing Assertively with Customers VII. Assertive versus Aggressive Service

Chapter Outline and Lecture Notes I. The Importance of Effective Communication 



Two key elements in making interactions with customers successful are to: o Recognize how you tend to communicate. o Understand how the communication process works. The process of communication involves active participation by both the business and its customers.

II. Ensuring Two-Way Communication 



Two-way communication is an active process in which two individuals apply all the elements of interpersonal communication (e.g., listening, feedback, positive language) in order to effectively exchange information and ideas. Being aware of the elements of two-way communication and the importance of each will help facilitate people’s communication success. A. Interpersonal Communication Model 1. Environment 

The environment (office, call center, store, etc.) in which people send or

receive messages affects the effectiveness of their message. 2. Sender  

Businesses take on the role of a sender as they initiate a message with their customers. As the sender, businesses have a responsibility for thinking of the message that they want the customer to receive, then using words and nonverbal cues that effectively convey that message.

3. Receiver  

Initially, businesses may be the receiver of their customer’s message; however, once businesses offer feedback, they switch to the sender role. As the receiver, businesses must effectively comprehend what the customer has said.

4. Message  

The message is the idea or concept that businesses or their customer wishes to convey. Messages often get lost in their delivery because businesses choose inappropriate words or nonverbal cues, and the customer misinterprets or does not understand their intended point. o In order to prevent this from occurring, it is important to think before speaking.

5. Channel  

The method businesses choose to transmit their message is the channel. Examples of channels are face-to-face, telephone, e-mail, chats, Twitter, written correspondence, and facsimile.

6. Encoding 



Encoding occurs as businesses evaluate what must be done to effectively put their message into a format that their customer will understand. Failing to correctly determine the customer’s ability to decode the

message could lead to confusion and misunderstanding. 7. Decoding  

Decoding occurs as businesses or their customer converts messages received into familiar ideas by interpreting or assigning meaning. Depending on how well the message was encoded or whether personal filters (e.g., gender, background, age, etc.) interfere, the received message may not be the one that businesses originally intended. o This can lead to a service breakdown and potential conflict.

8. Feedback  

Unless a response is given to messages received, there is no way to determine whether the intended message was received. One of the most crucial elements of the two-way communication process, feedback is the stage of interpersonal communication in which a receiver responds to a sender’s message.

9. Filters  

Filters are factors that distort or affect the messages people receive. They include, among other things, attitude, interests, biases, expectations, experiences, education, beliefs and values, background, culture, and gender.

10. Noise 



Noise consists of physiological factors (e.g., health or physical characteristics and abilities) or psychological factors (e.g., level of attention, mood, etc.) that interfere with the accurate reception of information. Noise can also include environmental factors (e.g., external sounds or room acoustics) that inhibit communication and listening.

III. Communicating Positively 

To maximize one’s potential and create a positive outcome with customers, a person should use the PLAN acronym as a guide to effective communication with those whom the person comes into contact.



PLAN stands for: o Prepare for positive customer interactions. o Let your customers know their importance. o Address customer expectations positively. o Nurture a continuing relationship. A. Prepare for Positive Customer Interactions  

The first element of the PLAN acronym is all about getting into a mental state of mind to provide quality service effectively to the customers. Too often service providers wait for something to happen and then react to the situation. o This is a formula for disaster, especially if they do not have the knowledge or skills to address a customer’s needs. o To prevent this from happening, consider the types of potential customer situations that might be encountered. o Next, get training, discuss possible scenarios and solutions with peers and the supervisor, and role-play handling potential customer issues so that the service provider can have in mind possible actions to take should an actual situation arise.

1. Identify Pet Peeves 



Most people have something that bothers them about how others communicate or behave. o These ―hot buttons,‖ or pet peeves, can lead to customer relationship breakdowns if people are not aware of what their pet peeves are and how they come across to others. Some typical behaviors that service providers exhibit, and that might bother customers, include: o Serving in a disinterested manner o Texting during work hours o Causing excessive wait times o Appearing unprofessional to the customer o Having lack of cleanliness (environment or service provider) o Putting someone on telephone hold abruptly and without their permission o Lacking knowledge or authority o Providing poor service o Displaying rudeness or overfamiliarity

B. Let Customers Know Their Importance  

The second element of the PLAN acronym deals with making the customers feel as if they are the most important people in the world. Some proven strategies to help service providers accomplish the goal of making people feel welcome when they contact the organization and focusing on the customer as a person. 1. Make Customers Feel Welcome 

Most people like to feel as if they belong, to be recognized as special, and to be seen as individuals. o To help enhance the service delivery, service providers should get to know their customer’s name when possible and use it in greeting him or her.

2. Focus on the Customer as a Person 



Service providers should strive to let customers know that they recognize them as individuals and appreciate their time, effort, patience, trust, and business. Service providers should: o Offer assistance. o Be prepared. o Provide factual information. o Be helpful. o Accept responsibility. o Take appropriate action.

C. Address Your Customer’s Expectations Positively  

The third element of the PLAN acronym focuses on the area of interpersonal communication with customers. Communication is a major portion of a service provider’s job and has a definite impact on the relationships and impressions that the service provider forges with his or her customers or clients. 1. Use Customer-Centric Language



A mistake by many service providers is to communicate as if they are the important element of a transaction. o In reality, it is the customer upon whom a message should be focused. The following examples show the difference in focus: o Provider-centered  As soon as I have time …  I’ll send out a form that we need you to complete and sign. o Customer-centered  I’ll take care of that right away.  To make sure that we have all the information needed to ensure you the best service, once you get the form, please complete and sign it.

2. Use ―Small Talk‖  



Service providers should look for opportunities to communicate on a personal level or to compliment their customer. One thing to keep in mind about small talk—dialogue used to enhance relationships, show civility, and build rapport—is that service providers must listen to their customer’s words and tone. Skip the small talk if the customer is obviously inpatient or in a hurry.

3. Use Positive ―I‖ and ―We‖ Messages  

In addition to avoiding the ―you‖ statements, service providers should focus on what ―I‖ or ―we‖ can do for or with the customer. ―I‖ or ―we‖ messages go a long way in subtly letting the customer know that one has the knowledge, confidence, and authority to help out.

4. Ask Positively Phrased Questions 



To avoid creating a negative situation or escalating customer emotions when things are already amiss, service providers should choose the wording of their questions carefully. Service providers should find a way to rephrase any question that they would normally start with ―Why?‖ o The reason is that this word cannot be inflected in a way that doesn’t come across as potentially abrasive, intrusive, or meddlesome.



Service providers should ask questions that do not create or add to a negative impression. o This is especially important if they have a customer who is already saying negative things about them, their product or service, or the company.

5. Be Specific 



Whenever service providers have to answer questions, especially details relating to costs, delivery dates, warranties, and other important areas of customer interest, they should give complete and accurate details. The service provider and the customer may have different ideas about which information is important; leaving out information may upset the customer.

6. Examples 



If deliveries are free, but only within a 50-mile radius, make sure customers know about the mileage policy. (The customer may live 51 miles away!) If a customer calls to ask for the price of an item, the service provider should be sure to include tax, shipping, and handling—so there are no surprises when the customer makes the purchase.

7. Listen Carefully and Respond Appropriately  

Active listening is a key element of two-way verbal communication. One technique to ensure that the service provider has received the customer’s message correctly is to use a technique called paraphrasing—the practice of a message receiver giving back in his or her own words what he or she believes a sender said.

D. Nurture a Continuing Relationship 



The final element of the PLAN acronym deals with how well a service provider closes a transaction, encourages the customers to return, and has customers saying positive things about their experience. In order to maintain an ongoing business relationship with customers, each person in the organization has to take responsibility for leaving a positive impression on those with whom they come into contact.

1. Ask Permission 

Service providers should get approval before taking action that was not previously approved or discussed. o By doing so, service providers can raise the customers to a position of authority, boost their self-esteem, and empower them.

2. Agree with Customers  

 

Like most other people, customers like to hear that they are right. When a customer has a complaint or is upset because a product and/or service does not live up to expectations, service providers should acknowledge the emotion the customer is feeling and then move on and help resolve the issue. o Defusing by acknowledgment is a powerful tool. Service providers should listen carefully for the level of emotion. If the customer is very angry, service providers may want to choose their words carefully. o In this situation, the best approach probably is to let the customer vent and describe the problem without interrupting, apologize as often as appropriate, and do everything possible to resolve the issue fairly (assuming that the customer has a legitimate complaint).

3. Elicit Customer Feedback and Participation 



Service providers should make customers feel as if they are a part of the conversation by asking questions. o They should ask opinions, find out how customers feel about what service providers are doing or saying, and get customers involved by building rapport through ongoing dialogue. Service providers should acknowledge customers’ ideas, suggestions, or information with statements such as, ―That’s a good idea.‖ o This will foster a feeling that the service providers and customers are working together to solve a problem while putting the customers in psychological control of the situation.

4. Close the Transaction Professionally 

Instead of some parroted response used for each customer, service



providers should offer a sincere ―Thank you‖ and encourage the customer to return in the future. Service providers should remember that a part of the service culture is building customer loyalty.

IV. Providing Feedback Effectively 

Feedback is a response to messages a listener receives. o This response may be transmitted verbally or nonverbally. A. Verbal Feedback   

Verbal feedback is letting both senders and receivers of messages know that a message was correctly received by giving an appropriate response. When providing verbal feedback, service providers should also be conscious of how their customer is receiving their information. Take into account the customer’s body language, nonverbal cues, or words indicating misunderstanding.

B. Nonverbal Feedback   

Nonverbal feedback refers to messages sent to someone through other than spoken means. Examples of nonverbal feedback are gestures, appearance, and facial expressions. Nonverbal feedback can be more powerful than the spoken or written word because it is often subject to interpretation based on the customer’s background, culture, gender, age, and many other factors. 1. Manage Body Language 

The ways in which people sit, stand, gesture, position their body (face-toface or at an angle), or use facial expressions can all send positive or negative messages. o This is why service providers should consciously think about their nonverbal cues when interacting with customers.

2. Use Eye Contact Effectively 

In addition to greeting the customer, service providers should make



regular eye contact (normally no longer than three to five seconds at a time) and assume a positive approachable posture throughout their interaction with a customer. Service providers should also be careful about showing their displeasure with customers through their eyes when emotions are high or they are struggling with a difficult situation.

3. Use Positive Facial Expressions 



Service providers should spend more time (and less facial energy) projecting a pleasant, positive image with their face, rather than one that might send a negative message to the customers. Since customer service is about building relationships with customers and people generally prefer to be around someone who is happy rather than unhappy, service providers should be conscious of the power of their facial expressions.

V. Avoiding Negative Communication 

  

Service providers’ choice of words or phrasing can often lead either to satisfaction or to confrontation, or it can destroy a customer–provider relationship. o They shouldn’t use vague or weak terminology. Another pitfall to watch out for is the use of global terms (all-encompassing or inclusive expressions such as always, never, everyone, all). If customers can give just one example for which the service provider’s statement is not true, the service provider’s credibility comes into question and they might go on the defensive. Service provides should avoid verbal finger-pointing, especially if the customer is already upset. Saying ―You were supposed to call back to remind me‖ or ―You didn’t follow the directions I gave you‖ is like pointing your finger at someone or using a patronizing tone to belittle them. See Figure 3.9 for a list of words and phrases that can damage relationships.

VI. Dealing Assertively with Customers   

Assertiveness involves projecting a presence that is assured, confident, and capable without seeming to be aggressive or arrogant. People’s level of assertiveness is directly tied to their style of behavior and their culture. Some people are direct and to the point; others are calm laid back or come

 

across as being passive or nonassertive. Try to negotiate a win-win outcome in which both the customer and service provider are comfortable with the outcome. Figure 3.10 lists several examples of nonassertive and assertive language and behaviors.

VII. Assertive versus Aggressive Service 

Some customer service representatives have trouble identifying the difference between assertive and aggressive behavior. A. Assertive Behavior Sustains Customer Relationships   

The goal should be to achieve an assertive ―you win, and I win‖ solution. Assertiveness can assist in solving problems; aggression can escalate and cause relationship breakdowns. Some ways in which assertiveness might be demonstrated when dealing with customers include: o Interact in a mature manner; do not become defensive or confrontational. o Use appropriate eye contact. o Listen openly and use affirmative acknowledgments of what the customer is saying. o Use an open body posture if you are face-to-face. o Avoid blaming or judging your customer. o Use ―I‖ statements, where you let customers know how you feel about the situation or something the customer said. o Ask for feedback and then listen carefully to the other person. o Learn to say no to unreasonable requests in a confident, yet nonthreatening manner. o When appropriate, paraphrase the customer’s point of view. o Don’t say, ―I’m sorry‖ every time anything goes wrong. Of course, if something occurred and it was your fault, you should apologize and try to make it immediately. o Strive for win-win solutions.

B. Aggression Involves Hostile or Offensive Behavior 

Aggressive behavior often manifests itself in the form of either a verbal or physical attack.

C. Aggressive Behavior Can Lead to Relationship Failure   

Verbal attacks escalate emotions. Violence could result in response to aggressive behavior. Service providers may be labeled as either assertive or aggressive depending on how they verbally or nonverbally approach, address, and interact with customers.

Class Activities and Sample Assignments 9. One of the major factors in the success of our communication is the way we receive messages. This factor is influenced by a variety of things, such as our perception, our upbringing, and our state of mind at that point in time. (LO 3-2) a. Ask students to close their eyes and imagine the days of the week. b. Then have them write down what they think is the color of each day. c. Review and compare in small groups. d. Debrief: i. This simple exercise illustrates that we see things in different ways. Different perceptions can occur in more important contexts too, such as work, responsibilities, and relationships. ii. Ask students how we can handle these different perceptions to communicate better. Ask them to work in groups and come up with five strategies. 10. Ask students to sit in a circle with a piece of paper. Tell them you are going to describe a drawing of a bug, and they are to draw what you describe. They may not ask questions; they can only ask you to repeat a step. (LO 3-2 and 3-3) a. The bug is round. b. The bug has eight legs, grouped in pairs with four legs on the left and four legs on the right. In the pairs, one leg is longer than the other. c. The bug has two eyes on top of the body. d. The bug has two squiggly antennas. e. The bug has two pea-pod shaped wings. f. The bug has a spot next to each wing. g. The bug has a triangular stinger on the bottom of the body. h. The bug has two feelers on each foot; one is longer than the other and both come from the same side of the leg. i. The bug has a round mouth placed between the two eyes.

The bug has laid five eggs to the left of the stinger. Ask students to share their bugs with their neighbors; then show them the ―real‖ drawing (included after this section). Lead a discussion about why everyone’s bug looked different, even though the instructions were the same. Discuss perception and the need for feedback in two-way communication. 11. The way we word things in our communication is almost as important as our body language. Consider the use of the word ―and‖ and ―but.‖ ―But‖ implies something won’t work, while ―and‖ allows other options to be considered. Ask students to work in pairs and have them plan their dream vacation, from location to hotel to daily activities, not using the word ―but.‖ (LO 3-6 and 3-7) a. Example of how ―but‖ can affect communication in this exercise: i. Student one: I want to go to Fiji. Student two: Yes, but I want to go to Europe. ii. This creates conflict within the communication b. Ask students instead to use ―and:‖ i. Student one: I want to go to Fiji. ii. Student two: Ok, and let’s also go to Europe. 12. Ask students to brainstorm a list of phrases that do not create good customer relationships and put them on flip chart or white board. Then ask them to suggest what phrase could be used instead. (LO 3-3 and 3-4)

Role-Play Activity A Family in Need (LO 3-3) Customer Role Do not share your role-play instructions with your ―service representative.‖ Your name is Harvey Curtis and you are going to the Helping Hand Food Bank to register for assistance for your family. You are a ten-year Army veteran (a noncommissioned officer/supervisor) and were discharged with PTSD two years ago. After your release from active duty, you worked in a warehouse until you were injured in a car accident nine months ago and lost your job. You now occasionally work as a day laborer when you feel up to it physically and mentally. Your wife, Minerva, works during the evenings as a server in a local diner. She was recently diagnosed with breast cancer. You have two elementary school aged children, no medical insurance, and your house is now in pre-foreclosure. Start by explaining your family situation to the intake service representative. You should also emotionally explain that you are at wits end because it seems like the world is out to get you and your family. As the intake representative processes your registration, observe his or her verbal and nonverbal messages and react accordingly. Likewise, if you sense the representative is not actively listening, respond appropriately to that. Listen effectively to the service representative and feel free to adlib a bit if you feel it will enhance the scenario. Just do not go too far since you only have five minutes for the role play. Respond to questions asked and other comments made by the service provider. Service Provider Role Do not share your role-play instructions with your ―customer.‖ You work as an intake counselor for a nonprofit organization that provides services to individuals and families who have low income and need subsistence help. Your organization offers assistance in signing people up for social services. It also partners with various local religious and community service organizations (e.g. Coalition for the Homeless, the local food bank, as well as national organizations (e.g. Veterans Administration, National Coalition for the Homeless, National Healthcare for the Homeless, Goodwill, Salvation Army) to assist low-income clients

with housing, personal, job, and medical needs. It also has a pool of volunteer professionals (e.g. career counselors, medical and dental, financial advisors, and life and business coaches and trainers). Harvey Curtis just came in to register for aid. During your interaction with Harvey, address the following issues:     

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Greet Harvey as you believe is professionally appropriate for your position. Make him feel welcome. Ask pertinent questions in order to identify Harvey’s needs, wants, and expectations. Monitor verbal and nonverbal messages Harvey sends and respond appropriately. Carry on friendly dialogue, as appropriate. Based on what you learn from Harvey, feel free to offer additional assistance (e.g. connections to other organizations, provide a list of other organizations that can assist him, suggest that he might want to reach out to the VA for assistance since he is a veteran if he has not already done so). Close the transaction professionally and on a positive note.

Some things you may want to discover include:    

What are the primary customer needs in this situation? What would you say and do to assist this family? What resources would you offer? Is there anything else you might do to assist this family?

Observer Role Watch the exchange between the customer and service provider, make notes of service challenges and successes, what the server did well, and what needs improvement from a service perspective. Instructor Debrief Notes You may want to do a bit of research on homelessness and related issues in your local area and share that with students at the beginning of the debrief. This will help raise awareness of the issue on their part. Explain that in such situations, clients are often at wits end and they have put aside their pride is often in order to ask for assistance to help care for family members. Service representatives must provide caring customer service, compassion, and guidance. They must also empathize (not sympathize or pity) with their clients without being condescending or appearing superior.

Nonprofit organizations typically serve people who are not financially well off. In many cases, these customers are not well-educated and have limited interpersonal communication skills or are from other cultures. Furthermore, many do not have the knowledge or expertise necessary to navigate the bureaucratic obstacles to gain access to many government and community assistance programs. The key to effective service in such environments is training and for employees to have a thorough knowledge of products, services, and resources available to assist clients. Encourage students to review the chapters on verbal and nonverbal communication and listening skills in order to be prepared for any customer service situation. During the activity debrief, ask the group the following questions (and any others you want to add): 1. What customer needs were present in this situation? 2. If you were in this situation, how do you think you would feel and what do you think your priorities might be? Why? 3. How do you think you might feel if you were in the Harvey’s situation? Why? 4. What would you do and say to this customer after hearing his situation? 5. What resources might you offer Harvey? Why? 6. Is there anything else you could do for him? Explain. 7. Why is compassion needed when dealing with such customer situations? 8. What types of things demonstrate compassion to others?

Discussion Opportunities 1. Discuss at least three possible challenges when decoding messages. (LO 3-2) 2. Give two examples of provider-centered language versus customer-centered language that not already discussed in this chapter. (LO 3-4) 3. Discuss three ways in which you can help build rapport with customers. Then, discuss why rapport is a key element in customer service. (LO 3-4 and 3-5) 4. Describe the differences between assertive and aggressive. (LO 3-6) 5.

Choose two of the causes of conflict addressed in this chapter and give examples of how you managed this type of conflict in either your personal life or professional life. (LO 3-7)

In the Real World Notes (p. 113) Insurance—GEICO Insurance Most people are familiar with the GEICO Insurance Company because of their creative, humorous advertisements featuring the recognizable and trademarked GEICO Gecko ®, a talking gecko with a British accent. The company was formed in 1936 by Leo and Lillian Goodwin and was originally called the Government Employees Insurance Company because the original target market was federal government employees and military personnel. According to the GEICO website, the company o employs more than 400,000 associates. o is one of the fastest-growing major auto insurers in the United States, with over $32 billion in assets. o sells insurance in all 50 states and the District of Columbia. o insures over 28 million vehicles. o provides service 24/7/365. o has 7 affiliated companies. o gets excellent ratings from Standard and Poor’s (AA+), Moody’s (Aa1), and A.M. Best (A++). In 1996, GEICO became an indirect, wholly owned subsidiary of Berkshire Hathaway when its owner, investment guru Warren Buffett, purchased outstanding stock. As the company has grown, it has set numerous milestones. For example, in 2010 it was the first in the insurance industry to provide mobile users with the ability to get a quote and buy insurance via their smartphones. Additionally, between 2002 and 2019 the company grew from 5 million policies-in-force to over 17 million. In 2020, GEICO was rated by J.D. Power as the highest-ranking auto insurance brand in the north and northcentral regions of the United States. The company was also a winner in the 2020 Brand Keys Customer Loyalty Engagement Index, which measures how companies engage customers, engender loyalty, and drive real profits. As an organization, GEICO is committed to providing an inclusive diverse work environment and actively recruits talented candidates based on their knowledge, skills, abilities, and service attitude rather than physical characteristics and cultural background. This approach has helped them become a desired workplace for applicants and has resulted in some of the awards you read about above. To aid in capturing, nurturing, and retaining the best workforce possible to meet the needs of its customers, the company offers ongoing associate and management professional development and growth opportunities, has established employee resource groups, and provides mentorship to employees.

Answers for the ―Think About It‖ section will vary, but an important point to mention in the discussion is the fact that having strong core values alone does not ensure that they will be apparent within the organization. All members of an organization must be committed to the core values in order for them to happen. 1. Have you or anyone from your family ever had an insurance policy through GEICO? If so, what was your experience with service and product quality? Students may or may not have strong opinions about this company depending on whether or not they pay their own insurance or carry their own policies. Hence, answers will vary regarding their experience with the service and product quality. They will also have stronger opinions if a family member or friend has needed to make a claim. 2. Do you believe that GEICO is a good organization to work for? Why or why not? Answers will vary. However, they should make the point that it is important to work within a company that has similar values to their own. 3. How does GEICO’s service culture reflect on its image and product line? GEICO’s mission is to ―To provide affordable and dependable direct auto insurance to drivers across the United States, while also representing our customers in their time of need following an accident.‖ It was the first insurance company to allow customers to get a quote and buy insurance via their smartphones and it has won industry awards for its diversity and ethical practices. 4. What are the key elements separating GEICO from its competitors in your mind? One good way to start answering this is by focusing on what put GEICO on top. Between 2002 and 2019 the company grew from 5 million policies-in-force to over 17 million. In 2020, GEICO was rated by J.D. Power as the highest-ranking auto insurance brand in the north and north-central regions of the United States. The company was also a winner in the 2020 Brand Keys Customer Loyalty Engagement Index, which measures how companies engage customers, engender loyalty, and drive real profits. Additional accolades for the company are listed in the textbook.

Work It Out Notes Work It Out 3.1—Communication Reality Check (p. 119)

This exercise asks students to think about their own past service experiences in order to better plan their future service strategy. They are asked to think of their reaction when they walk into a store that uses a greeter and the person either does or says nothing other than eye them up and down or say something in a robotic fashion and without smiling, then hands them an advertisement flyer, which they likely did not want in the first place. They are then asked to put themselves in the greeter’s place and discuss with the class what they would have done differently. Work It Out 3.2—My Pet Peeves (p. 123) This box asks students to think about pet peeves in which service providers engage. Consider breaking students into small groups of five to brainstorm a list and then ask them to share their top two with the rest of the class. You can then ask students what could be improved to make sure those kinds of behaviors don’t happen in the future. Work It Out 3.3—Analyzing Your Verbal Communication Skills (p. 126) This box asks students to record their own voices and interactions with people and then review the recordings for information on how their voice sounded and how they responded. Please warn students that it is illegal to record someone without their knowledge, so it is important to get permission first. Students can also perform this activity by using an iPod recorder attached to their iPod. Either way, this box can get students thinking about how they might sound to others, which is a key component in this chapter. Work It Out 3.4—Feeling Special (p. 134) This box asks students to think about the times they have been put on hold or had to stand in line. It asks questions about how these situations were handled by the service provider and if the student felt special. If they said they didn’t feel special, probe them for more information. Why didn’t they feel special? What should the service provider have done differently? Work It Out 3.5—Perceptions Are Reality (p. 138) Ask students to work on this activity alone and then compare their answers. The box shows pictures of happy looking people and asks students to determine their perceptions of each person. Use this exercise as a segue into how our facial expressions are very important and how through this alone, we can express confidence and friendliness.

Work It Out 3.6—Standing Up Assertively (p. 141) This exercise helps students understand the importance of speaking up assertively when others take advantage of them. Give them various scenarios involving different customer situations, and observe how students assertively address the situations. You could also use Figure 3.5 to familiarize students with different types of nonassertive and assertive behaviors. Work It Out 3.7—Improving Feedback Skills (p. 144) This exercise asks students to partner up, have a 10-minute conversation, and then discuss the level of verbal feedback, interpretation of verbal and nonverbal language, and number of clarifying questions. Ask students to first analyze their own comfort level in giving feedback and review the concept of feedback for them. After they have had their conversations, ask the students to critique each other on the amount of feedback.

End-of-Chapter Material Notes Key Terms                 

Acronym (p. 135) Assertiveness (p. 139) Channel (p. 118) Decoding (p. 119) Encoding (p. 119) Feedback (p. 119) Filter (p. 120) Global term (p. 137) ―I‖ or ―we‖ message (p. 128) Interpersonal skills (p. 115) Message (p. 118) Noise (p. 120) Nonverbal feedback (p. 135) Paraphrase (p. 118) Pet peeve (p. 122) Rapport (p. 132) Receiver (p. 118)

   

Sender (p. 118) Small talk (p. 111) Two-way communication (p. 117) Verbal feedback (p. 135)

Review Questions 1. As a customer service professional, what are some things you can do to project a positive image to the customer? Service providers can make sure to smile and avoid negativity and negative body language. They could use common courtesy, such as ―please‖ and ―thank you.‖ They can ensure two-way communication with the customer by providing feedback. They could avoid the use of global terms, such as always or never. 2. What element(s) of the interpersonal communication model do you believe are the most important in a customer service environment? Explain. Answers will vary, but the model includes the sender, receiver, filters, channel, message, encoding, decoding, noise, and feedback. 3. What are some strategies to use to avoid words or phrases that will negatively affect your relationship with your customer? Service providers could avoid using global terms, such as ―always‖ and ―never.‖ They could also avoid phrases like ―that’s not my job‖ and ―you must.‖ 4. What are some of the tips outlined in this chapter for ensuring effective customer service interactions? Some of the tips outlined in this chapter for ensuring effective customer service interactions are:  Using assertive behavior (as opposed to aggressive behavior)  Understanding and recognizing how people tend to communicate  Understanding how the communication process works 5. What is feedback? Feedback is a response to messages a listener receives. It is a way to check for

understanding when sending messages. 6. How can verbal feedback affect customer encounters? Negative feedback or not feeling as if they are being listened to may result in the customer not wanting to return or do business with the service provider again. On the other hand, the more the service providers show through feedback that they listen and they understand, the more they can build rapport with customers. 7. Give some examples of nonverbal feedback and explain how they complement the verbal message and how they can affect customer interactions. Facial expressions, smiling or not smiling, tone of voice, and eye contact, are all examples of nonverbal feedback. To emphasize their verbal message, people can use nonverbal feedback, such as eye contact, to make their point. 8. List at least five tips for providing positive feedback. The following are some of the tips for providing positive feedback:  Give immediate feedback.  Be clear and concise.  Remain objective.  Be accurate.  Use verbal and nonverbal messages that agree.  Verify meaning.  Make sure feedback is appropriate to the original message.  Strive to clarify.  Avoid being overly critical.  Do not provide feedback that could damage the customer-provider relationship.

Collaborative Learning Activity Scenarios and role-playing are great ways to get students involved in the conversation. One option, rather than having the students work in pairs, is to have them work in groups of five or six. One team of two takes the first role play, while the second team takes the second role play, etc. As a result, there is an ―audience‖ to watch the role play, which may motivate students to be more serious about doing a good job. You can use this discussion to address how to keep things positive in every communication and

the importance of probing and building rapport.

Face to Face—Seeking Information from a Client This Face to Face is a real world issue that many students will encounter in their careers. It involves a long-term customer relationship in which the roles have changed. The client’s new office manager already has a great relationship with a competitor. 1. Since you don’t have a relationship with Sylvia, what will you do to get off to a solid start during your visit? Possible suggestions may include scheduling a longer meeting, perhaps over lunch, to develop rapport with Sylvia. 2. How should you approach Sylvia verbally and nonverbally? Students may say that they should be friendly, smile, and use open posture. 3. What strategies among the ones discussed in this chapter can you use to find out where you and LKM stand in Sylvia’s mind? You can ask for her business directly or you can show her your products and services, which should speak for themselves. To find out her level of satisfaction, you could do a focus group or give her a survey. 4. What might you propose to Sylvia to try to change her mind if she indicates that she is planning to move the account? Talk with Sylvia to learn what it is that she really likes about the competitor. Perhaps, she would agree to stay with your company for another business cycle or an agreed-upon time frame, so she can learn about the possibilities your organization can offer her. Additionally, during this time she would get to know the people with whom she would be working and like them just as well. It doesn’t appear as though price is the major sticking point, but beating the competitor’s price may entice her to give your organization a try.

Chapter 4 Nonverbal Communication Skills

Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments................................................................... 906 Discussion Opportunities .............................................................................................. 18 In the Real World Notes ................................................................................................ 18 Financial Services—American Express..................................................................... 20 Work It Out Notes .......................................................................................................... 20 Work It Out 4.1—Facial Expressions ......................................................................... 20 Work It Out 4.2—Gesture Practice ............................................................................ 20 Work It Out 4.3—Adding Emphasis to Words ........................................................... 20 Work It Out 4.4—Spatial Perceptions ........................................................................ 20 Work It Out 4.5—Gender Communication ................................................................. 21 End-of-Chapter Material Notes .................................................................................... 951 Key Terms.............................................................................................................. 951 Review Questions .................................................................................................. 952 Collaborative Learning Activities ............................................................................ 984 Face to Face—Handling Customer Complaints at Central Petroleum National Bank........................................................................................................... 24

Learning Outcomes LO 4-1 Define nonverbal communication. LO 4-2 Name additional factors that send nonverbal messages. LO 4-3 Explain the effect that gender has on communication. LO 4-4 Describe the effect of culture on nonverbal communication. LO 4-5 Identify unproductive behaviors. LO 4-6 Use a variety of nonverbal communication strategies. LO 4-7 Demonstrate specific customer-focused nonverbal behavior.

Brief Chapter Outline I. What Is Nonverbal Communication? II. The Scope of Nonverbal Behavior A. Body Language 1. Eye Contact 2. Facial Expressions 3. Posture 4. Nodding of the Head 5. Gestures B. Vocal Cues 1. Pitch 2. Volume 3. Rate of Speech 4. Voice Quality 5. Articulation 6. Pauses 7. Silence 8. Semantics C. Appearance and Grooming 1. Hygiene 2. Clothing and Accessories D. Spatial Cues 1. Intimate Distance (0 to 18 inches) 2. Personal Distance (18 inches to 4 feet) 3. Social and Work Distance (4 to 12 feet) 4. Public Distance (12 or more feet) E. Environmental Cues

F. Miscellaneous Communication Cues 1. Personal Habits 2. Time Allocation and Attention 3. Follow-Through 4. Proper Etiquette and Manners 5. Color III. The Role of Gender in Nonverbal Communication IV. The Impact of Culture on Nonverbal Communication V. Negative Nonverbal Behaviors A. Unprofessional Handshake B. Fidgeting C. Pointing a Finger or Other Object D. Raising an Eyebrow E. Peering Over Top of Eyeglasses F. Crossing Arms or Putting Hands on Hips G. Holding Hands near Mouth VI. Strategies for Improving Nonverbal Communication A. Seek Out Nonverbal Cues B. Confirm Your Perceptions 1. Perception-Checking Example C. Seek Clarifying Feedback 1. Clarifying Feedback Examples D. Analyze Your Interpretations of Nonverbal Cues VII. Customer-Focused Behavior 1. Stand Up, If Appropriate 2. Act Promptly 3. Guide Rather Than Direct 4. Be Patient with Customers 5. Offer Assistance 6. Reduce Customer Wait Times 7. Allow Customers to Go First 8. Offer Refreshments, If Appropriate 9. Be Professional

Chapter Outline and Lecture Notes I. What Is Nonverbal Communication? i.

The study of messages sent via nonverbal means has fascinated people for

decades. Many people became aware of this subject when books like Body Language and several others were published over four decades ago. o In Body Language, Julius Fast defined various postures, movements, and gestures by ascribing unspoken messages that people might send as nonverbal cues to someone observing them. To be successful in the service profession, service providers must be aware that they constantly send nonverbal messages to others and that it is impossible for them to not communicate.

ii.

iii.

II. The Scope of Nonverbal Behavior iv.

In addition to verbal and written messages, people continually provide nonverbal cues that tell a lot about their personality, attitude, and willingness and ability to assist customers. Customers receive and interpret the messages service providers send, just as service providers receive and interpret customer messages.

A. Body Language vi.

The key to ―reading‖ body language is to realize that one’s interpretations should be used only as an indicator of the customer’s true message meaning. o This is because background, culture, physical condition, communication ability, and many other factors influence whether and how well people use body cues. 1. Eye Contact   

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In most Western cultures, the typical period of time that is comfortable for holding eye contact is 5-10 seconds. If either the length of the frequency of eye contact differs from the ―norm,‖ many people might think you are being rude or offensive. Much research has been done on the correlation between a person’s interest in an item or object being viewed and the size of the person’s pupils. o Typically, when a customer is interested in an item, his or her pupils will dilate (grow larger). According to research on pupillometrics (the study of pupil reaction to stimuli), other factors such as drugs or a person’s physical attraction to

someone can also cause dilation. 2. Facial Expressions  

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By being aware of the power of expressions and using positive ones, such as smiling, people can initiate and sustain relationships with others. Smiling seems to be one of the few nonverbal cues that projects a universal meaning of friendship or acceptance, and typically expresses a mood of cheerfulness, pleasure, relaxation, and comfort with a situation. o Even so, like any other nonverbal cue, people have to be cautious of ―reading into‖ the intent of someone’s cue because some people smile to mask nervousness, embarrassment, or deceit. Service providers should be conscious of cultural and personal differences that people may have, and take their cue from the customer.

3. Posture  

Posture (or stance) refers to how one sits or stands in order to project various nonverbal messages. Various terms—formal, rigid, relaxed, slouched, awkward, sensual, and defensive—describe posture.

4. Nodding of the Head 

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 

Nodding of the head is often used (and overused) by many people to signal agreement or to indicate that they are listening to a speaker during a conversation. People must be careful when they are using this technique and, when they are watching others who are doing so, to occasionally pause to ask a question for clarification. o Stop and ask for or provide feedback through a paraphrased message. o The answer will make it clear if the other person is simply politely smiling and nodding—but not understanding. o The latter sometimes happens when there are cultural differences or when someone speaks a different native language. Some research has shown that many North American women often nod and smile more than men during a conversation. Although nodding one’s head generally signals agreement, if people nod without a verbal acknowledgment or paralanguage (a vocal effect such

as ―uh huh,‖ ―I see,‖ ―hmmm‖), a missed or misinterpreted cue could result. 5. Gestures 



The use of head, hands, arms, and shoulders to accentuate verbal messages adds color, excitement, and enthusiasm to one’s communication. o Typically, such movements are designed to gain and hold attention, clarify or describe further, or emphasize a point. Open, flowing gestures (gesturing with arms, palms open and upward, out and away from the body) encourage listening and help explain messages to customers. o On the other hand, closed, restrained movements (tightly crossed arms, clinched fists, hands in pockets, hands or fingers intertwined and held below waist level or behind the back) could send a message of coolness, insecurity, or disinterest. o The key is to make gestures seem natural.

B. Vocal Cues vii.

Vocal cues, that is pitch, volume, rate, quality, and articulation, and other attributes of verbal communication can send nonverbal messages to customers. 1. Pitch 

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Changes in voice tone (either higher or lower) add vocal variety to messages and can dramatically affect interpretation of meaning. o These changes are referred to as inflection or pitch of the voice or tone. Inflection is the ―vocal punctuation‖ in oral message delivery. o For example, a raised inflection occurs at the end of a question and indicates a vocal ―question mark.‖

Volume 

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The range in which vocal messages are delivered is referred to as the degree of loudness or volume. Service providers should be aware of the volume of their voice, for

changes in volume can indicate emotion and may send a negative message to their customer. o For example, if a communication exchange with a customer becomes emotionally charged, the service provider’s voice may rise in volume, indicating that he or she is angry or upset. 3. Rate of Speech 

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Rate of speech refers to the number of words spoken per minute. o This varies for many people. o An average rate of speech for most adults in a workplace setting in Western cultures is 125 to 150 words per minute. (wpm) You should recognize that your speed of delivery could affect correct receipt and interpretation of your message.

4. Voice Quality  

Message interpretation is often affected by the sound or quality of your voice (raspy, nasal, hoarse, or gravelly). The variations in a service provider’s voice quality can help encourage customers to listen or could discourage them, depending on their perception of how the service provider’s voice sounds.

5. Articulation  

Articulation, enunciation, or pronunciation of words refers to the clarity of people’s word usage. If people tend to slur words (―Whadju say?‖ ―I hafta go whitja‖) or cut off endings (goin’, doin’), they can distort meaning or frustrate listeners.

6. Pauses  

Pauses in communication can be either positive or negative depending on how people use them. On the negative side, speakers can irritate someone through the use of too many vocal pauses or interferences. o The latter can be audible sounds (―uh,‖ ―er,‖ ―um,‖ ―uh-huh‖) and are often used when people have doubts or are unsure of what they are saying, not being truthful, or nervous. o These sounds are sometimes called verbal fillers.

7. Silence 

Silence is a technique used to gain attention when speaking, to allow thought, or to process information received. o It is a good way to show respect or show that one is listening to the customer while he or she speaks.

8. Semantics  

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Semantics has to do with choice of words. Although not nonverbal in nature, semantics is a crucial element of message delivery and interpretation because people interpret one’s intentions or meanings based on their understanding of word definitions. Malapropism—the unintentional misuse or distortion of a word or phrase that sounds somewhat like the one intended but with a different context— often has humorous results.

C. Appearance and Grooming viii. ix.

x. xi.

The way people look and present themselves physically and their manner of dress send a message of either professionalism or indifference. Even though service providers provide attentive, quality service, the customer will typically form an opinion of service providers and their organization within 30 seconds based on the service providers’ appearance and that of their workspace. o For example, the service provider’s clothing, grooming, and choice of jewelry or other accessories could send a negative message to some people. o Learn to distinguish between what is appropriate or inappropriate for the workplace. Through appearance and grooming habits, service providers project an image of themselves and the organization. Good personal hygiene and attention to one’s appearance are crucial in a customer environment. 1. Hygiene 

Effective hygiene (regularly washing and combing hair, bathing, brushing teeth, using mouthwash and deodorant, washing hands, etc.) is basic to



successful customer service. Although good hygiene and grooming are important, going to an extreme through excessive or bizarre use of makeup, hair coloring, cologne, or perfume can create a negative impression and may even cause people to avoid the service provider.

2. Clothing and Accessories  

Work clothing does not have to be expensive, but it should be wellmaintained and appropriate to one’s work setting. If your organization does not have a policy that defines dress standards, always check with your supervisor before wearing something that might deviate from the standards observed by other employees.

D. Spatial Cues xii. xiii.

Each culture has its own proxemics or spatial cues (zones or distances in which interpersonal interactions take place) for various situations. Each culture has unwritten rules about contact and interpersonal proximity of which service providers should be aware and that should be respected when dealing with people from a given culture. 1. Intimate Distance (0 to 18 inches) 

Typically this distance is reserved for one’s family and intimate relationships. o Most people will feel uncomfortable when a service provider intrudes into this space uninvited.

2. Personal Distance (18 inches to 4 feet) 

This distance is used when close friends or business colleagues, with whom one has established a level of comfort and trust, are together. o It might also occur if people have established a long-term customer relationship that has blossomed into a semi-friendship.

3. Social and Work Distance (4 to 12 feet) 

This is usually the distance range in face-to-face customer service situations.

It is also typically maintained at casual business events and during business transactions.

4. Public Distance (12 or more feet) 



This distance range is likely to be maintained at large gatherings, activities, or presentations where most people do not know one another, or where the interactions are formal in nature. An important thing to remember about spatial distances in the service environment is how others might perceive one’s actions.

E. Environmental Cues xiv. xv.

Environmental cues refer to any aspect of the workplace with which a customer comes into contact. Such things as the general appearance of an area, clutter, unsightly or offensive items, or general disorganization contribute to the perception of an environment.

F. Miscellaneous Cues xvi.

Miscellaneous cues refer to factors used to send messages that can influence a customer’s perception or feelings about a service provider or organization. o Examples are personal habits, etiquette, and manners. 1. Personal Habits  

If service providers have annoying or distracting habits, they could send negative messages to their customers. For example, eating, smoking, drinking, or chewing food or gum while servicing customers can lead to negative impressions about service providers and their organization.

2. Time Allocation and Attention 

Some organizations have standards for servicing customers within a specific time frame, but these time allocations should be targets or guidelines because customer transactions cannot all be resolved in a specified period of time.



The key is to be efficient and effective in one’s efforts.

3. Follow-Through  

Follow-through, or lack of it, sends a very powerful nonverbal message to customers. If service providers tell a customer they will do something, it is critical to their relationship that they do so. o If the agreed-upon terms or time frames cannot be met, contact the customer as soon as possible and renegotiate.

4. Proper Etiquette and Manners  

People appreciate receiving appropriate respect and prefer dealing with others who have good etiquette and manners. Tied to nonverbal messages, the polite things service providers do go far in establishing and building relationships.

5. Color 



Although color is not as important as some other factors related to nonverbal communication in the customer service environment, the way in which service providers use various colors in decorating a workspace and in their clothing could have an emotional impact on customers. Figure 4.4 in the text lists various colors and the possible emotional messages of color they can send.

III. The Role of Gender in Nonverbal Communication xvii. xviii.

xix. xx.

Gender communication is the term used to refer to the communication between genders. Although similarities exist between the ways in which males and females relate to one another, there are distinct differences in behavior, beginning in childhood and carrying through into adulthood. The lessons learned early in life usually carry over into the workplace and affect customer interactions. The basis for gender differences is the fact that the brains of males and females develop at different rates and focus on different priorities throughout life.

IV. The Impact of Culture on Nonverbal Communication

xxi.

If service providers are to be successful in interacting with a wide variety of people, they will need to understand the impact of culture by learning about many behaviors, habits, values, and beliefs from around the world. To become more skilled at dealing with people from other cultures, service providers should develop an action plan of things to learn and explore.  Look for cues that might be perceived as negative in some cultures.

xxii.

V. Negative Nonverbal Behaviors 

Be aware of habits or mannerisms that can send annoying or negative messages to customers.

A. Unprofessional Handshake xxiii.

xxiv.

Failure to shake hands appropriately (palm-to-palm), with a couple of firm pumps up and down, can lead to an impression of weakness, lack of confidence, or disrespect of the other person. The grip should not be overly loose or overly firm. o An overly powerful handshake could injure a person with medical issues, such as arthritis.

B. Fidgeting xxv.

Using some mannerisms (playing with or putting hair in the mouth, tugging at clothing, throat-clearing, etc.) can indicate to a customer that you are anxious, annoyed, or distracted, and should therefore be avoided, if possible. o Such signals can also indicate nervousness or lack of confidence.

C. Pointing a Finger or Other Object xxvi.

xxvii.

For many people, pointing a finger or other object is viewed as a very accusatory mannerism and can lead to anger or violence on the part of the customer. If service providers must gesture toward a customer or toward an area or item, they should do so with an open flat hand (palm up) in a casual manner.

D. Raising an Eyebrow xxviii.

Raising an eyebrow often signals skepticism or doubt about what one has

heard. o It can be viewed as questioning the customer’s honesty. E. Peering over Top of Eyeglasses xxix.

Peering over top of eyeglasses might be associated with someone who is in a position of authority. o For that reason, customers may not react positively if service providers peer over their eyeglasses at them.

F. Crossing Arms or Putting Arms on Hips xxx.

Typically viewed as closed or defiant postures, crossing arms or putting hands on hips may send a negative message to the customer and cause a confrontation. o People often view this gesture as demonstrating a closed mind, resistance, domination, or opposition.

G. Holding Hands near Mouth xxxi.

Holding hands near your mouth will muffle your voice or distort your message. o It can also send message of doubt or uncertainty, or can suggest that you are hiding something.

VI. Strategies for Improving Nonverbal Communication A. Seek Out Nonverbal Cues xxxii.

Service providers should watch the behavior of people with whom they see and interact. o They should look at clusters of nonverbal behavior and the language accompanying them instead of interpreting individual signals.

B. Confirm Your Perceptions xxxiii.

Service providers should ask for clarification by perception checking if necessary. o This involves stating the behavior observed, giving one or two possible interpretations, and then asking for clarification of message meaning.

1. Perception Checking Example 

When responding to a customer’s quizzical look, for example, a customer service provider should focus the possible misconception onto himself or herself rather than onto the customer. o Encourage the customer to ask questions.

C. Seek Clarifying Feedback xxxiv.

In many instances, people need feedback in order to adjust their behavior. o They may be sending cues they do not mean to send or to which others may react negatively. 1. Clarifying Feedback Examples 

In two text examples, a person needs feedback in order to adjust his or her behavior. You may be sending cues you do not mean to send or to which others may react negatively. o Keep in mind that some people will not give honest, open feedback.

D. Analyze Your Interpretations of Nonverbal Cues xxxv.

One way service providers to ensure that they are accurately evaluating nonverbal cues given by a variety of people is to analyze their own personal perceptions, stereotypes, and biases. o This is important because the manner in which service providers view certain situations or groups of people might negatively affect their ability to provide professional and effective service to all customers.

VII. Customer-Focused Behavior 1. Stand Up, If Appropriate 

Depending on the layout of the work area, if service providers are seated behind a desk when a customer arrives or approaches them, they should stand up, greet him or her, and extend a handshake. o These actions show that they respect the person as an equal and are eager to assist her or him.

2. Act Promptly 



The speed with which a service provider recognizes and assists a customer, gathers information, or responds demonstrates the customer’s importance. If service to the customer will take longer than planned or will be delayed, the service provider should notify the customer, state the reason, and offer service alternatives if they are appropriate and available.

3. Guide Rather Than Direct 

If customers must go to another person or area in the organization, or if they ask directions, service providers should personally guide them or have someone else do so, if possible. o They should not simply point or direct.

4. Be Patient with Customers 

Service providers should provide whatever assistance is necessary without appearing to push customers away. o They should patiently take the time to determine whether a customer has additional needs.

5. Offer Assistance 

Service providers should offer to assist with doors, packages, directions, or in other ways, especially if a customer is elderly, has a disability, has numerous packages, or appears to need help. o Similarly, if someone needs assistance in getting from one place to another, they should offer to help. o Do not assume someone needs help, grab an arm to guide them, or push open a door, possibly causing a fall or injury.

6. Reduce Customer Wait Times  

If long delays are anticipated, service providers should inform the customer, offer alternatives, and work to reduce the wait time. If service providers notice that customers routinely have to wait for service, they should approach their supervisor about the situation and offer any suggestions for preventing this in the future.

7. Allow Customers to Go First 

Typically, service providers should encourage and allow customers to precede them through cafeteria lines or doors, onto escalators or elevators, etc., as a show of respect. o This projects an air of respect and courtesy.

8. Offer Refreshments, If Appropriate 

Service providers should take care of their ―guests‖ the same way they would at home. o Service providers should offer to get customers something to drink if they come to their office or if they are attending lengthy meetings.

9. Be Professional 

Service providers should avoid smirking, making faces, or commenting to other customers or coworkers after a customer leaves or turns his or her back. o Such activity is unprofessional and will probably make the second customer wonder what the service provider will do when he or she leaves.

Class Activities and Assignments 13. Ask students to stand up and shake the hand of the person next to them. (LO 4-5) Then, do the following: a. Ask them to provide feedback on the handshake of their partner. Was it firm? Was it too firm? What did the handshake convey? b. Then, ask students to shake the hand of their neighbor using a ―cold fish‖ handshake where the palms don’t touch. Ask the students how that feels and what it could be conveying to another person. c. Finally, ask students to shake the hands of at least four people around them and tell them to provide feedback. d. Point out that women tend to have smaller hands and this may impact how their hand should be shaken. e. Provide hand sanitizer!

14. To test comfort level of spatial distance, ask students to stand up at their own comfortable distance from the person next to them. Then, ask what happens if someone’s comfortable distance is different than another person’s. Demonstrate by moving obviously close to a student. (LO 4-2) 15. Create a picture, play-dough sculpture, or something similar. Do not let students see it. Then, ask one person from the group to look at the sculpture and describe it to the group using only nonverbal language including gestures. (LO 4-2 through 4-5) 16. Cut out the words in the chart below and put a number of them in cups. Ask students to break into groups and give each group a cup. Tell them they are to act out the word on the paper using any and all nonverbal cues they can think of (e.g., facial expressions, handshakes, posture, props in the room, etc.). Once students have finished acting out all the words in their cup, they can trade cups with another group. For a smaller class, you can do this as a class activity and just ask for volunteers to be actors while the rest of the class guesses. To debrief this exercise, ask students: (LO 4-3 through 4-7) a. Are some things easier to portray than others in nonverbal language? b. Which emotions were easier to read? How can this knowledge help you in your career? Happy

Sad

Worried

Sympathetic

Concerned

Confident

Helpful

Overjoyed

Angry

Frustrated

Agreeable

Melancholic

Unconfident

Friendly

Calm

Disagreeable

Excited

Worried

Cranky

Open

Tired

Closed

Unfriendly

Relaxed

Discussion Opportunities 1. Ask students to discuss situations in which someone used a different rate of speech than they were accustomed to using. Describe how this can affect communication and perception (LO 4-2) 2. In your most recent visit to a store or location where customer service is provided, what kinds of nonverbal behavior did you notice? Explain your thoughts and perceptions on this behavior. (LO 4-1 through 4-6) 3. Is it possible to look professional while still being casual? Describe the type of clothing you might wear and other grooming ideas to still look professional while being casual. (LO 4-1 through 4-6) 4. Give an example of when you have experienced differences between how women and men communicate. List at least two nonverbal examples you have experienced. (LO 4-3) 5. Name and discuss four specific strategies you can use to improve your nonverbal communication. Then, set goals for how you will further develop these skills. (LO 46)

In the Real World Notes (p. 153) Financial Services—American Express American Express (also known as AmEx) is a financial services organization that has multinational connections. Founded in 1850 as a freight forwarding company, it expanded into the money order business to compete with the U.S. Postal Service in 1888. Today, the organization is primarily known for its credit cards and traveler’s checks; it also has travel-related services, personal banking, financial advisors, and

publishing components. The company seeks to aid merchants’ development by offering marketing and information management guidance. AmEx also assists small businesses succeed by offering purchasing power and flexible financial control options. Because of its stature in the world of business, American Express has been ranked #1 on the J.D. Power 2020 U.S. Credit Card Mobile App Satisfaction Survey, #67 on the Fortune 500 listing of companies, #14 on Fortune’s World’s Most Admired Companies, and #9 on Fortune’s 100 Best Companies to Work For. In addition to its business operations, the company takes its corporate responsibility seriously and has a variety of active philanthropy and employee engagement programs. The company’s commitment to the community and the world extends to helping create a better environment. Throughout the years, American Express has gotten involved in ―cause marketing‖ initiatives in which a portion of income generated from member card usage was earmarked for a variety of causes. From a service standpoint, the organization offers a variety of service support options (e.g., telephone support, website assistance, chat capability, a smartphone app, and an e-mail response system) 24 hours a day, seven days a week. The employees that staff the customer care centers receive the tools they need to deal with a diverse worldwide customer base. Some of the components of staff development include employee networks, leadership training, personal development programs, and continued education support. 1. How does American Express compare to other credit card companies of which you have personal experience or knowledge? Answers will vary because their experiences related to other credit card companies will be different. The customer-focused culture adapted by American Express since its inception may invoke interest for students. Students may report that the credit cards they have experience with also have excellent service support. 2. What are some of the organization’s strengths related to customer service in your mind and how do you think these might enhance a customer’s service experience? Students may list the following strengths:  Besides financial services, AmEx offers a variety of service support options (e.g., telephone support, website assistance, chat capability, smartphone app, and an e-mail response system) 24 hours a day, seven days a week.  The employees that staff the customer care centers receive the tools they need to deal with a diverse worldwide customer base.

3. What role do you think the company’s approach to delivering service to customers via a variety of channels has played in its worldwide success? Answers will vary. AmEx’s wide variety of support options—by telephone, smartphone app, Internet, and an e-mail response system—seem to be a way for the organization to provide an excellent customer service experience 24-7. Additionally, customers of different age demographics and comfort levels with or trust of technology can obtain service the way they prefer. 4. What are your thoughts related to American Express’ approach to corporate responsibility? Students might point out their funding for a variety of charitable projects, as well as their plan to help protect the environment. They became a CarbonNeutral® company in 2018. 5. Would you want to work for this company? Explain why or why not. Answers will vary. Some of them may want to work for the company because they would favor the training, development programs, and leadership programs that help AmEx employees grow in their careers. AmEx’s reputation for customer commitment, integrity, quality, and good citizenship would be other factors.

Work It Out Notes Work It Out 4.1—Facial Expressions (p. 159) This box asks students to look at several facial expressions and write what they think the person is feeling. To take this activity a step further, you might consider asking students to work on this activity alone and then partner with someone to compare answers. Afterwards, ask the students to get into groups of four or five to discuss. You can follow up by asking why everybody didn’t have the same word listed for each of the faces. Work It Out 4.2—Gesture Practice (p. 162) Most people do not know what kinds of gestures, facial expressions, and other nonverbal cues they give to others. After completing this exercise with your students,

ask them why it might be important to know how other people view their facial expressions and nonverbal language. You can ask students to have an honest conversation with someone they know well (such as a parent or close friend) to ask what their mannerisms are. Then, students will have a basis to determine which nonverbal cues they may need to work on. Work It Out 4.3—Adding Emphasis to Words (p. 165) This activity should make clear to students how much our tone and emphasis impact our communication. To introduce this activity, you might consider asking students to decipher the following:  Say ―that’s nice‖ in a sarcastic way  Say ―that’s nice‖ in a friendly way Then, you can point out to them that the same words have different meaning depending on how they are said. To debrief this activity, you can consider asking students if they know how their tone comes across. Ask them to give specific examples of when someone used an inappropriate tone even though the words seemed harmless. Work It Out 4.4—Spatial Perceptions (p. 171) This activity is great to help students see how uncomfortable it can be to stand/sit too close to or too far from someone. Ask students to watch for the nonverbal cues of their partner throughout this exercise. Most excellent customer service people will be able to read cues about distance and adjust for the customer. For example, if the employee notices that the customer keeps backing away, this customer likely prefers a little more personal space. If the customer keeps moving forward, it would be appropriate to have less space between the customer and employee. Work It Out 4.5—Gender Communication (p. 176) If you do not have access to a computer lab and do not want to assign this box, you can also engage in a discussion with students about the box. Ask them what experiences they have had with gender communication. Also, point out that what may appear to be gender differences could just be personality differences.

End-of-Chapter Material Notes Key Terms

                               

Appearance and grooming (p. 166) Articulation, enunciation, or pronunciation (p. 164) Body language (p. 156) Churn (p. 160) Cluster (p. 181) Emotional messages of color (p. 174) Environmental cue (p. 170) Etiquette and manners (p. 173) Gender communication (p. 175) Hygiene (p. 167) Impact of culture (p. 178) Inflection (p. 163) Interference (p. 165) Malapropism (p. 165) Miscellaneous cue (p. 171) Nonverbal messages (p. 155) Paralanguage (p. 160) Pause (p. 165) Perception checking (p. 181) Pitch (p. 163) Posture (p. 160) Proxemics (p. 169) Pupillometrics (p. 158) Rate of speech (p. 164) Semantics (p. 165) Silence (p. 165) Spatial cue (p. 169) Time allocation (p. 172) Verbal fillers (p. 165) Vocal cues (p. 162) Voice quality (p. 164) Volume (p. 163)

Review Questions 1. What are six categories of nonverbal cues?

The six categories of nonverbal cues include body language, vocal cues, appearance and grooming, spatial cues, environmental cues, and miscellaneous cues such as personal habits. 2. What are some of the voice qualities that can affect message meaning? Some of the voice qualities that can affect message meaning are pitch (change in voice tone), volume (how loudly one speaks), rate of speech, voice quality such as pleasant sounding or harsh, articulation, pauses, the amount of silence, and semantics. 3. What are some examples of inappropriate workplace attire? Any type of clothing that shows too much skin, torn or dirty clothing, and excessive makeup or jewelry are all examples of inappropriate workplace attire. 4. How can grooming affect your relationship with customers? Poor grooming can cause customers to question the service provider’s abilities and confidence. It may give the impression that he or she does not care about the job or the customers. 5. What four spatial distances are observed in Western cultures, and for which people or situations is each typically reserved? The first of the four spatial distances observed in Western cultures is intimate distance (0 to 18 inches), typically reserved for family and intimate relationships. The second, personal distance (18 inches to 4 feet), is appropriate with close friends or business colleagues with whom you have established a level of comfort and trust. The third spatial distance, social and work distance (4 to 12 feet), is usually the distance range in face-to-face customer service situations. Typically, people maintain this distance at casual business events and during business transactions. The fourth spatial distance is public distance (12 or more feet), likely to be maintained at large, formal gatherings, activities, or presentations where most people do not know one another. 6. What are some of the miscellaneous nonverbal cues that can affect your effectiveness in a customer environment?

Some of the miscellaneous nonverbal cues that can affect one’s effectiveness in a customer environment are personal habits such as the use of certain phrases or mannerisms, time allocation to customers, follow-through, etiquette and manners, and color. 7. What are some ways in which men and women differ in their nonverbal communication? Some of the ways in which men and women differ in their nonverbal communication are as follows:  Women tend to claim smaller spaces (e.g., crossing of legs) while men claim larger spaces.  Men tend to nod infrequently, whereas women nod often to indicate understanding (not agreement, necessarily).  Men tend to interrupt more while women smile more frequently. Many more differences are listed in Figure 4.5 in the text. 8. What are some examples of unproductive communication? Unproductive communication can include poor handshakes, fidgeting, pointing, raising an eyebrow, peering over glasses, crossing arms, putting hands on hips, and holding hands near mouth. 9. List four strategies for improving nonverbal communication. Four strategies for improving nonverbal communication are seeking out nonverbal cues, confirming perceptions, seeking clarifying feedback, and analyzing one’s interpretations of nonverbal cues. 10. What are five examples of customer-focused behavior? Standing up, acting promptly, guiding rather than directing, being patient, offering assistance, reducing wait times, allowing customers to go first, offering refreshments, and being professional are all examples of customer-focused behavior.

Collaborative Learning Activities 1.

Many students have iPods or smartphones, which can make this a quick activity to

do in class without a lot of preplanning on your part. Your library also may have an iPod recorder that students may borrow. Consider having students work in teams to record but ask them to work alone to develop their own analysis. Some students may feel embarrassed about analyzing their personal nonverbal communication in front of another person. To combat this, you may want to do the activity yourself first and then tell students what results you came up with personally. 7.

While students are still in groups, have them look up how business greetings can differ (eye contact, gestures, or otherwise) from country to country. Also note if these greetings differ between men and women or between people from different socioeconomic classes. Use the countries: China, Indonesia, Mexico, Thailand, Philippines, England, India, Turkey, Japan, South Korea, and Italy.

Face-to-Face—Handling Customer Complaints at Central Petroleum National Bank A banking representative is working with a new customer and holds a finger up to an existing customer, Mrs. Wyatt, to show he or she will be with her in a moment. Mrs. Wyatt smiles and takes a seat in the waiting area. After several minutes waiting and looking at her watch, Mrs. Wyatt leaves abruptly. The next day, the branch VP receives a complaint letter from her. 1. What did you do right in this situation? The service provider did an excellent job helping Mr. Gomez and his son. He or she gave them personal attention and listened to their need to move quickly. He or she also smiled at Mrs. Wyatt when she came in, acknowledging her presence. 2. What could you have done differently? While the service provider did a great job helping Mr. Gomez and his son, rather than just holding up a finger to Mrs. Wyatt, the service provider could have verbally told her that he or she would be just a few minutes. When the service provider realized it would be longer than that, he or she should have excused himself or herself from Mr. Gomez and told Mrs. Wyatt it would be longer than he or she thought and offer to have someone else help her. This would have shown that the service provider valued her as a customer and was attempting to reduce her wait time.

3. Do you believe that Mrs. Wyatt was justified in her perception of the situation? Explain. A person’s perception is just that—his or her own view of the situation. Whether the perception was right or wrong, it was how Mrs. Wyatt saw the situation. She may have overreacted in writing a letter, but either way, she didn’t feel valued as a customer. The service provider should have either found someone else to help Mrs. Wyatt or at least explained to her that her wait would be a few more minutes, if she has the time to wait. 4. Could Mrs. Wyatt have misinterpreted your nonverbal messages? Explain. Holding a finger up generally means ―one minute.‖ Some people may be offended by the gesture itself, but Mrs. Wyatt did not appear to be. She smiled in return and sat down, realizing there would be a slight wait. However, at the time the service provider gestured, Mr. Gomez’s son had not entered the bank yet. When the son came in and announced he wanted to open an account would have been the time for the service provider to get someone else to help Mrs. Wyatt or explain the situation to her.

Chapter 5 Listening to the Customer Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 15 Discussion Opportunities .............................................................................................. 16 In the Real World Notes ................................................................................................ 17 Equipment Manufacturing—John Deere..................................................................... 17 Work It Out Notes .......................................................................................................... 18 Work It Out 5.1—Implied Messages ........................................................................... 18 Work It Out 5.2—Personal Listening Experiences ...................................................... 19 Work It Out 5.3—Personal Habits ..........................................................................19 Work It Out 5.4—Dealing with Interruptions................................................................ 19

Work It Out 5.5—Inattentive Listening Behavior ......................................................... 19 Work It Out 5.6—Correcting Common Listening Problems ........................................ 19 Work it Out 5.7—Active Listening Strategies .............................................................. 20 End-of-Chapter Material Notes ...................................................................................... 20 Key Terms ................................................................................................................. 20 Review Questions ..................................................................................................... 21 Collaborative Learning Activity ................................................................................ 982 Face-to-Face—Handling an Irate Customer at Regal Florists ................................... 23

Learning Outcomes LO 5-1 Describe why listening is important to customer service. LO 5-2 Define the four steps in the listening process. LO 5-3 List the characteristics of a good listener. LO 5-4 Recognize the causes of listening breakdown. LO 5-5 Develop strategies to improve your listening ability. LO 5-6 Use information-gathering techniques learned to better serve customers. LO 5-7 Apply concepts discussed to generate meaningful responses to your questions from customers.

Brief Chapter Outline I. Why Is Listening So Important? II. What Is Listening? A. Hearing and Receiving the Message B. Attending C. Comprehending or Assigning Meaning D. Responding III. Characteristics of a Good Listener IV. Causes of Listening Breakdown A. Personal Obstacles 1. Biases 2. Psychological Distracters 3. Physical Condition 4. Circadian Rhythm 5. Preoccupation 6. Hearing Loss B. Listening Skill Level 1. Thought Speed 2. Faulty Assumptions C. External Obstacles 1. Information Overload 2. Other People Talking 3. Ringing Phones 4. Office and Maintenance Equipment 5. Speakerphones 6. Cell Phones 7. Physical Barriers

D. Additional Obstacles to Effective Listening V. Strategies for Improved Listening A. Stop Talking! B. Prepare Yourself C. Listen Actively D. Show a Willingness to Listen E. Show Empathy F. Listen for Concepts G. Listen Openly H. Send Positive Nonverbal Cues I. Do Not Argue J Take Notes, If Necessary VI. Information-Gathering Techniques A. Open-Ended Questions 1. Identify Customer Needs 2. Gather a Lot of Information 3. Uncover Background Data 4. Uncover Objections during a Sale 5. Give the Customer an Opportunity to Speak B. Closed-Ended Questions 1. Verifying Information 2. Closing an Order 3. Gaining Agreement 4. Information Gathering 5. Clarifying Information 6. Additional Examples of Closed-Ended Questions VII. Additional Question Guidelines A. Avoid Criticism B. Ask Only Positively Phrased Questions C. Ask Direct Questions D. Ask Customers How You Can Better Serve

Chapter Outline and Lecture Notes I. Why Is Listening So Important?  

Listening effectively is the primary means that many customer service professionals use to determine the needs of their customers. These needs may not be communicated directly but through inferences, indirect

comments, or nonverbal signals. II. What Is Listening?  

True listening is an active, learned process, as opposed to hearing, which is the physiological action of gathering sound waves through the ear canal. When people listen actively, they go through a process consisting of various phases—hearing or receiving the message, attending, comprehending or assigning meaning, and responding. A. Hearing and Receiving the Message  

Hearing is a passive physiological process of receiving sound waves and transmitting them to the brain for analysis and action. Because of external noises and internal distracters (psychological and physical), a customer’s message(s) may be lost or distorted.

B. Attending  

Once people’s ears pick up sound waves, their brain goes to work focusing on, or attending to, what was heard. The effort involves deciding what’s important so that people can focus attention on the proper sound.

C. Comprehending or Assigning Meaning 

 

Once a service provider decides to which message or customer he or she will listen, the brain begins a process of comprehending or assigning meaning to what he or she heard, or ―decodes‖ the message. Memory is the ability to gain, store, retain, and recall information in the brain for later application. Recognition is a process that occurs in thinking when a previously experienced pattern, event, process, image, or object that is stored in memory is encountered again.

D. Responding  

The last phase of the listening process is responding—refers to sending back verbal and nonverbal messages to a message originator. Selecting an appropriate response is crucial to the success of customer

interactions. III. Characteristics of a Good Listener 

The following are some common characteristics possessed by most effective listeners: o Empathy—putting oneself in the customer’s place and trying to relate to the customer’s needs, wants, and concerns, often reducing the risk of poor service. o Understanding—the ability to listen as customers verbalize their needs and to ensure that they are understood is essential in properly servicing the customer. o Patience—each customer has different needs and expectations based on age, gender, behavioral style, preference, cultural background, and other factors.  To meet customer needs, service providers should take the time to ask questions and actively listen to their responses before choosing a course of action. o Attentiveness—by focusing attention on the customer, the service provider can better interpret his or her message and satisfy his or her needs.  Attentiveness is often displayed through nonverbal cues. o Objectivity—in dealing with customers, try to avoid subjective opinions or judgments.

IV. Causes of Listening Breakdown 

Many factors contribute to ineffective listening. o Some are internal or in people’s brain, but others are external and people cannot control them. A. Personal Obstacles 

As a listener, people may have individual characteristics or qualities that get in the way of listening effectively to the customer. o Some of these personal obstacles are biases, psychological distracters, physical condition, circadian rhythm, preoccupation, and hearing loss. 1. Biases



Biases are beliefs or opinions that a person has about an individual or group. o These biases may result in preconceived and sometimes incorrect assumptions.

2. Psychological Distracters  

One’s psychological state can impede effectively listening. Psychological distracters, such as being angry or upset, or simply not wanting to deal with a particular person or situation, may negatively affect one’s listening.

3. Physical Condition  

Another internal factor that can contribute to or detract from effective listening is a person’s state of wellness and fitness. When a person is ill, fatigued, in poor physical condition, mentally stressed, or just not feeling well, listening can suffer.

4. Circadian Rhythm 

Circadian rhythm is a natural 24-hour biological pattern by which people function. o It is a physiological cycle associated with the earth’s rotation. o This ―internal clock‖ often establishes the body’s peak performance periods.

5. Preoccupation  

People may become distracted from work due to personal factors that override their efforts to do a good job each day. Many companies offer programs to assist employees in dealing with their personal and performance issues. o Through employee assistance programs (EAPs), organizations are providing counseling in such areas as finance, mental hygiene (health), substance abuse, marital and family issues, smoking cessation, weight loss, and workplace performance problems.

6. Hearing Loss

 

Many people suffer from hearing loss caused by physiological problems or extended exposure to loud noises. If people find themselves regularly straining to hear someone, having to turn an ear toward the speaker, or asking people to repeat what they said because they didn’t get the entire message, they may have hearing loss.

B. Listening Skill Level  

People communicate on different levels, depending on their knowledge and experiences in the area of communication. Adults are influenced by the experiences they had as children; that is, they are likely to repeat behavior they learned during childhood. 1. Thought Speed 

Thought speed is the rate at which the human brain processes information. o In the United States, this rate is approximately 125 to 150 words per minute (wpm), while in other countries or cultures this rate might vary. o The difference between the thought and listening speeds can be referred to as a lag time or listening gap during which the mind is actually momentarily idle or focused on another activity.

2. Faulty Assumptions 



Because of past experiences or encounters with others, service providers may be tempted to make faulty assumptions about their customer’s message(s). Each customer and situation is different and should be regarded as such.

C. External Obstacles  

Service providers cannot remove all barriers to effective listening, but they should still try to reduce them when dealing with customers. Some typical examples of external obstacles include information overload, other people talking, ringing phones, office and maintenance equipment, cell phones, speakerphones, and physical barriers. 1. Information Overload



Each day people are bombarded with information from many sources. o Such information overload can result in stress, inadequate time to deal with individual situations, and reduced levels of customer service.

2. Other People Talking  

It is not possible for service providers to give their full attention to two speakers simultaneously. In order to serve customers effectively, service providers deal with only one person at a time.

3. Ringing Phones 



Ringing telephones can be annoying, but service providers shouldn’t stop helping one customer to get into a discussion with or try to serve another customer over the phone. o This creates a dilemma, for service providers cannot ignore customers or others who depend on them to serve their needs over the telephone. Several options are available in such instances. o Service providers might arrange with their supervisor or coworkers to have someone else take the calls. o Another option is the use of a voice mail system or answering service for message collection.

4. Office and Maintenance Equipment 

Noisy printers, computers, photocopying machines, electric staplers, vacuum cleaners and other devices can be distractions. o When servicing customers, service providers should eliminate or minimize the use of these types of items.

5. Speakerphones 

Speakerphones allow for hands-free telephone conversations. o They are great because service providers can continue their conversation while searching for something the customer has requested.

Unfortunately, many people put callers on the loudspeaker while continuing to do work not related to the caller.  This not only is rude, but it results in ineffective communication.  An additional issue with the speakerphone is confidentiality.

6. Cell Phones  

These devices should be put on silent and kept in your pocket or a locker during working hours. Every minute you take reading personal e-mail or text messages or listening to your voicemail is stolen time from your employer and a distraction from customers.

7. Physical Barriers  

Desk, counters, furniture, or other items separating a service provider from his or her customer can stifle communication. Side-by-side (facing the customer at an angle) seating next to a table is preferable to sitting across from a customer in most situations. o An exception to this approach would be appropriate if service providers provide service to customers who might become agitated or violent.

D. Additional Obstacles to Effective Listening  

Customers themselves can negatively affect communication through their inability to communicate a message to the service provider. Although it is not specifically a listening issue, if customers are unable to deliver their message effectively, service providers may be unable to receive and properly analyze their meaning.

V. Strategies for Improved Listening A. Stop Talking  

When the customer starts talking, the first thing service providers should do is to stop talking and listen carefully. Some people—people who speak a different language, have certain behavioral styles, are elderly, or have certain disabilities—take a bit more

time to analyze and respond to messages they receive. o If service providers interrupt with additional information or questions, this may interfere with customers’ thought patterns and cause them to become frustrated or forget what they were going to say. B. Prepare Yourself 



Service providers should focus on their customer by not reading, writing, talking to others, thinking about other things, working on their computer, or doing anything else that might distract them. Other things to do in order to be ready to listen include having within easy access all the administrative supplies, forms, reference materials, and other information that might be needed to answer a question or serve the customer.

C. Listen Actively  

Service providers should use the basics of sound communication when a customer is speaking. The following strategies are typically helpful in sending an ―I care‖ message: o Smile. o Do not interrupt to interject ideas or make comments unless they are designed to clarify a point made by the customer. o Sit or stand up straight and make eye contact with the customer. o Lean forward or turn an ear toward the customer, if appropriate and necessary. o Paraphrase the customer’s statements occasionally. o Nod and offer affirmative statements or utterances to show that you are following the conversation. o Do not finish a customer’s sentence. Let the customer talk.

D. Show a Willingness to Listen 



By eliminating distractions, sending positive verbal and nonverbal responses, and actively focusing on what is being said, service providers can help the customer relax and have a more meaningful dialogue. For example, when dealing with customers, service providers should make sure that they take some positive approaches to listening.

E. Show Empathy



Service providers should put themselves in the customer’s place by empathizing, especially when the customer is complaining about what he or she perceives to be poor service or inferior products. o This is sometimes referred to as ―walking a mile in the customer’s shoes.‖ Service recovery—the process of righting a wrong or correcting something that has not gone as promised involving provision of a product or service to a customer—is a crucial step in delivering quality service and remaining competitive in the twenty-first century.

F. Listen for Concepts  

Instead of focusing on one or two details, service providers should listen to the entire message before analyzing it and responding. Instead of trying to respond to one portion of a message, service providers should wait for the customer to provide all the details.

G. Listen Openly  

Service providers should avoid biases. Service providers should remember that they don’t have to like everyone they encounter, but they do have to respect and treat customers fairly and impartially if they want to maintain a positive business relationship.

H. Send Positive Nonverbal Cues  

Service providers should be conscious of the nonverbal messages they are sending. When sending a message, service providers should make sure that their verbal cues and nonverbal cues are in congruence, in other words verbal messages agree with nonverbal cues used.

I. Do Not Argue  

Service providers should learn to phrase responses or questions positively. Some people seem to enjoy conflict. o In such situations, service providers should maintain their composure, listen, and attempt to satisfy needs. o If necessary, refer such customers to your supervisor or a peer.

J. Take Notes, If Necessary 



If information is complicated, or if names, dates, numbers, or numerous details are involved in a customer encounter, service providers may want to take notes for future reference to ensure accuracy. Doing so shows that they are indeed listening and committed to getting things right or taking appropriate action.

VI. Information-Gathering Techniques 



The purpose of listening to customers is to gather information about their needs or wants on which service providers can base decisions on how to best satisfy them. Service providers should use questions to determine customer needs and to verify and clarify information received. A. Open-Ended Questions 



This type of questioning follows the time-tested approach of the five Ws and one H used by journalists, who ask questions that help determine who, what, when, where, why, and how about a given situation. Open-ended questions establish a number of facts and are used to seek substantial amounts of information and encourage dialogue. 1. Identify Customer Needs  

By asking questions, one can help determine customer needs and what he or she wants or expects. This is a crucial task because some customers are either unsure of what they need or want or do not adequately express their needs or wants.

2. Gather a Lot of Information 



Open-ended questions are helpful when service providers are just beginning a customer relationship and aren’t sure what the customer has in mind or what’s important. By uncovering more details, service providers can better serve their customers.

3. Uncover Background Data 

When a customer calls to complain about a problem, often he or she has already taken unsuccessful steps to solve it. o In such cases, it is important to find out the background information about the customer or situation.

4. Uncover Objections during a Sale  

During sales or cross-selling or upselling products or services to current customers, service representatives will likely encounter objections. The reasons for a customer not wanting or needing a product and/or service can be identified through the use of open-ended questions.

5. Give the Customer an Opportunity to Speak 

 

Although it is important to control the conversation in order to save time and thus allow one to serve more customers, sometimes service providers may want to give the customer an opportunity to talk. This is crucial if the customer is upset or dissatisfied about something. Some examples of open-ended questions are: o ―What suggestions for improving our complaint-handling process should I present to my supervisor?‖ (gather information) o ―Why is this feature so important to you?‖ (identify customer needs) o ―How has the printer been malfunctioning, Jim?‖ (uncover background data) o ―What is the main use of this product?‖ (identify customer needs) o ―What are some of the common symptoms that you have been experiencing?‖ (uncover background data)

B. Closed-Ended Questions  

Closed-ended questions start with verbs such as do, did, are, and will; elicit short, one-syllable responses; and gain little new information. Closed-ended questions can be used for verifying information, closing an order, gaining agreement, information gathering, and clarifying information. 1. Verifying Information 

Closed-ended questions are a quick way to check information already



shared or agreements made. Using them reinforces that the service provider is listening and also helps prevent him or her from making mistakes due to misinterpreting or misunderstanding information.

2. Closing an Order 

Once service providers have discovered the needs and presented the benefits and features of their product and service, they need to ask for a buying decision. o This brings closure to the discussion.

3. Gaining Agreement 

When there has been ongoing dialogue and closure or commitment is needed, closed-ended questions can often bring about that result.

4. Information Gathering 

To make sure that you are about to take the correct course of action, you might use a closed-ended question to gather information from your customer.

5. Clarifying Information 

Closed-ended questions can help ensure that the service provider has correct details and thus help prevent future misunderstandings or mistakes. o They also help save time and reduce the number of complaints and/or product returns service providers will have to deal with later.

6. Additional Examples of Closed-Ended Questions    

―Do you agree that we should begin right away?‖ (gaining agreement). ―Mrs. Leonard, did you say this was your first visit to our restaurant?‖ (verifying information). ―Mr. Morris, did you say you normally travel three or four times a month and have been doing so for the past 10 years?‖ (clarifying information). ―Is the pain in your tooth constant or just periodic?‖(information gathering).



―So, shall I wrap these items for you so that you can make that appointment you mentioned, Mr. Carroll?‖ (closing an order).

VII. Additional Question Guidelines A. Avoid Criticism  

Service providers should be careful not to seem to be critical in the way they ask questions. Nonverbal messages delivered via tone or body language can suggest criticism, even if the service provider’s spoken words do not.

B. Ask Only Positively Phrased Questions 

As service providers interact with their customers, it is crucial to send messages in an open, pleasant manner. o This is done by tone of voice and proper word selection.

C. Ask Direct Questions 

A service provider who asks very specific questions often receives useful information that can save time and effort. o This should not be construed to mean that service providers should be abrupt or curt when communicating with customers or anyone else.

D. Ask Customers How You Can Better Serve 

Service providers will find no better or easier way to determine what customers want and expect than to ask them. o Customers will appreciate it, and service providers will do a better job serving them.

Class Activities and Sample Assignments 17. Ask for five volunteers to come to the front of the class. Then, have the class ask them the following questions. After each student has answered the questions, ask students to repeat what each student’s answers were. This can be used as a great introduction to this topic. (LO 5-1) a. Favorite animal

b. c. d. e.

Favorite color What they did last weekend Favorite food Least favorite food

18. Brainstorm with students how a listener knows you are listening. Then, ask students to get a partner. Have them discuss the following topics and practice active listening techniques. (LO 5-2 through 5-3) a. What plans do you have this weekend? b. What would your ideal vacation be? c. If you could have lunch with anyone, dead or alive, who would it be? 19. Ask students to pay attention to every conversation they have for the rest of the day and ask them to notice when they were or were not practicing good listening skills. Then, that evening or the next morning, they should write down the certain circumstances that made them good listeners and not-so-good listeners. Which factors in effective listening are brought up? (LO 5-4) Put those on a flip chart or whiteboard to discuss. 20. Ask students to count off to two and then ask the ones to think of the most important moment of their life and get ready to tell a story about it. Then, ask the ones to leave the room. While they are gone, direct the twos to show poor-listening body language (e.g., no eye contact, doodling while talking, etc.). Tell them as soon as the ones come back in the room and start talking, they should exhibit this behavior until you tap on the desk (quietly, so as not to make it obvious to the ones). Invite the ones back in and ask them to sit in front of anyone and tell them their story. Of course, the twos won’t be listening and it will be interesting to observe the behavior. After a minute or two, tap on the table and see how the discussions change. Then, ask the following debriefing questions:(LO 5-2 through 5-6) a. Explain that the twos were instructed not to listen. How did it feel not to be able to listen or not be listened to? b. What kinds of nonverbal listening (or non-listening) skills did your partner exhibit?

Discussion Opportunities 6. When would you use closed-ended questions as opposed to open-ended questions? Give an example situation for each. (LO 5-6)

7. What does it mean to prepare yourself to listen? What are some strategies you can use to prepare yourself? (LO 5-5) 8. What is an example of a personal obstacle you have experienced that has affected your listening? What did you do to improve it? (LO 5-4) 9. Which of the listening steps is the most difficult for you? Explain some strategies you might use to improve this. (LO 5-2) 10. How can biases create listening barriers? Do you have specific biases that have impacted your listening ability? Explain. (LO 5-4)

In the Real World Notes (p. 193) Equipment Manufacturing—John Deere John Deere is a Fortune 500 company that employees over 60,000 employees worldwide. The history of John Deere began in 1837 when blacksmith John Deere created an innovative steel plow that went on to be a commercial success. The business grew until the Great Depression in 1931 when farmers fell upon hard times and many lost their farms. To help slow that trend and help keep the agricultural heart of America chugging along, John Deere introduced a program through which it extended credit to hardworking agriculturists and carried notes with flexible payment plans. The program generated customer loyalty which has lasted until this day. Despite conditions created by the worldwide COVID-19 pandemic, John Deere continues to perform and deliver quality products to customers worldwide. As the need for larger quantities and qualities of food climb, crop prices increase, and plans in place for new and improved equipment, the future looks bright for John Deere. Some of the factors contributing to the company’s success include its approach to its employees; in addition to competitive salaries and benefits, the organization strives to provide a workplace conducive to individual and career growth. Because of the company’s dedication to quality customer service, the company appears on the American Innovation Index (AII) as one of the Top 25 Companies. John Deere’s commitment to quality of life and sustainability is evident by the systems and processes in its workplace and in the environments in which it has manufacturing facilities. 1. Based on what you read here and found on the Internet, what are John Deere’s strengths related to customer service?

Answers will vary. They are likely to combine their answer based on information about the company from the text and the website. Some of them may point out the reputation John Deere established by offering credit during the Great Depression. Others might discuss how the company offers the convenience of being a singlesource supplier to the construction industry. 2. Why do you think John Deere has such a solid reputation for quality service? Answers will vary. Some of them may point out John Deere’s innovation with technology and how it indicates an understanding of their customers’ needs. 3. How does John Deere compare in its customer service initiatives to other major brands of which you are familiar? Answers will vary. Some may point out the organization’s continued emphasis on its core values of integrity, quality, commitment, and innovation that sets it apart from competitors. Others may say that Deere’s approach to their employees, in turn, encourages customer service excellence. 4.

How does the company’s approach to giving back to people and organizations make it a better organization? Answers will vary. Some may feel that such a large, profitable company must give back to the people it serves. John Deere’s client base most likely expects such a company to be interested in reducing its impact on the environment. As an awardwinning company, other large companies may follow their example in giving back to communities and protecting the environment.

Would you consider working for John Deere? Why or why not? Answers will vary. Students should make the point that it is important to work with a company that has similar values as theirs. Students should justify their answers.

Work It Out Notes Work It Out 5.1—Implied Messages (p. 196) This Work it Out box reinforces the concept that many customer messages are implied rather than actually spoken to service providers. This exercise is good to prove the point

that excellent listeners should hear the subtleties of a request rather than just direct requests. If your class tends to be quieter, consider making this a class activity by asking for volunteers to perform the scenarios in front of the whole class. Work It Out 5.2—Personal Listening Experiences (p. 197) This box asks students to think about experiences they have had in which a customer or someone else did a good job listening to them. Further, try to point out some of the behaviors that show someone isn’t listening. You can dig deeper and ask students how they feel when this occurs compared to how they feel when someone has listened to them well. Work It Out 5.3—Personal Habits (p. 205) This box asks students to think about their own personal nutritional (e.g., how many meals a day they eat, snacks, quantities, and when they eat) and exercise habits (e.g., how often, duration, and type of exercise), and relate these to listening ability. Does all this affect listening ability? Work It Out 5.4—Dealing with Interruptions (p. 209) Interruptions are one of the most common reasons for communication to break down. This box asks students to think about a situation in which they were talking to a customer or someone else and another person arrived, interrupted, and started asking questions or talking to them. They are asked to discuss the reaction of the first person with whom they were talking, their reaction, and how they handled the situation. Work It Out 5.5—Inattentive Listening Behavior (p. 211) This box asks students to think of a time when someone was trying to verbally communicate ideas to them and they realized (from their verbal and nonverbal responses) that they were distracted and not really listening. They are asked to discuss the reasons that prevented them from listening effectively, and the reactions the listener had to their distraction or lack of focus. The students are further asked to compare their answers with other students and use the collective responses to improve their listening skills. Work It Out 5.6—Correcting Common Listening Problems (p. 213) This box lists some common listening problems. Students are asked to work in groups

and to think of one or two means for reducing or eliminating these problems. Then, ask them to write their answers on a flipchart or on the whiteboard for class discussion. To take the exercise a step further, you can even ask students to rank their ideas to determine the most important aspects of good listening. Work It Out 5.7—Active Listening Strategies (p. 213) This box asks students to think about qualities of people whom they believe to be good listeners. What behaviors and techniques do they use? Ask students to discuss how they might be able to model these behaviors in order to become better at listening.

End-of-Chapter Material Notes Key Terms                       

Attending (p. 198) Behavioral styles (p. 212) Bias (p. 202) Circadian rhythm (p. 204) Closed-ended questions (p. 220) Comprehending or assigning meaning (p.198) Congruence (p. 216) Customer needs (p. 218) Employee assistance program (EAPs) (p. 205) External obstacle (p. 208) Faulty assumption (p. 207) Hearing (p. 197) Information overload (p. 208) Lag time (p. 207) Listening (p. 195) Listening gap (p. 207) Memory (p. 198) Objection (p. 218) Open-ended questions (p 217) Personal obstacle (p. 202) Psychological distracters (p. 203) Recognition (p. 198) Responding (p. 198)



Thought speed (p. 207)

Review Questions 1. What phases make up the active listening process? The phases of the active listening process are receiving or hearing the message, attending, comprehending or assigning meaning, and responding. 2. What is the difference between hearing and listening? Hearing is a passive physiological process of receiving sound waves and transmitting them to the brain. Listening is hearing plus placing meaning and then responding. 3. According to studies, what is the average rate of thought speed for most adults in the United States? Why is this significant in a customer service environment? The average rate of thought speed for most adults in the United States is 125 to 150 words per minute. In other words, most adults in the United States can speak much more slowly than they can understand. This can make them impatient to finish sentences or interrupt in a customer service setting, which is not appropriate. 4. List the characteristics of effective listeners. Some characteristics of effective listeners are to be: respectful, focused, responsive, alert, understanding, caring, empathetic, unemotional, interested, patient, cautious, open, and accepting. 5. Of the characteristics common to good listeners, which do you consider the most important in a customer service organization? Explain. Answers will vary. Look for the students’ explanation for why they think the listening characteristic is the most important. 6. What is an important reason for practicing good listening skills in a customer service environment? An important reason for practicing good listening skills in a customer service environment is that customers who feel listened to will be more likely to return

because they feel good about the interaction. 7. What obstacles to effective listening have you experienced, either as a customer service professional or as a customer? Answers will vary depending on students’ individual experiences. You may consider asking students how listening skills (or lack of them) affect their personal lives as well. 8. How can you determine when someone is not listening to what you say? The person may use nonverbal cues, such as fidgeting, lack of eye contact, looking at a watch or cell phone, or responding in the wrong way or at the wrong time. 9. What techniques or strategies can you use to improve your listening skills? Having an awareness of your current abilities is the key to knowing what needs to be improved. Paraphrasing, eye contact, and asking open-ended questions that show you were listening are all ways to improve communication. 10. How is the outcome of customer service encounters improved by using a variety of questions? Customer service encounter is a technique to gather information regarding customer needs and wants. By doing this, the customer service professional can really find out the customers’ likes and dislikes and, as a result, make better recommendations to serve the customer.

Collaborative Learning Activity 1.

Walk around the room as this discussion takes place to ensure students stay on the topic and answer the following questions:    

What did the listener (customer service provider) do well? What needed improvement? Did the listener display characteristics of a good listener? Which ones? Did the customer adequately present the problem? Was either party emotional? Did the exchange ever become emotional between the service provider and the customer?



What did the observers notice about the exchange?

Face-to-Face—Handling an Irate Customer at Regal Florists The florist employee worked at first delivering arrangements, and for the past year creating arrangements and managing the shop. Long-time customer, Mr. Boyle came into the shop and was irate about a flower order mix-up. His assistant did not receive the flowers intended for her on Secretary’s Day. Instead she received red roses, intended for his wife, which contained a somewhat inappropriate note. (No one received the arrangement intended for the assistant although that was not mentioned.) 1. Do you think that Mr. Boyle should take Regal’s past performance record into consideration? Why or why not? This mistake resulted in an embarrassing situation for Mr. Boyle. Some students may not take past performance into consideration because it was a large mistake with embarrassing and possibly long-range consequences for Mr. Boyle. However, Mr. Boyle is a long-time, loyal customer and considering Regal’s long history of serving him, it would seem fair to give them the benefit of the doubt, particularly since the mistake was made by a 16-year-old who no longer works for the florist. 2. What listening skills addressed in this chapter should you use in this situation? Why? Empathy and understanding stand out as the two most important skills. Of course, having the patience to allow Mr. Boyle to finish his rant and remaining unemotional are also key factors. Although the employee who took the order no longer works for Regal, ultimately the Regal is responsible for the mistake. A customer should be able to place two separate orders during the same call. 3. What can you possibly do or say that might resolve this situation positively? The manager can attempt to resolve this situation positively by first apologizing, refunding the cost of the assistant’s arrangement that was never delivered, and then offering to make it right by sending his wife a complimentary arrangement of his choosing. The time might not be right for just replacing Mr. Boyle’s order, since Mrs. Boyle already saw that the assistant received red roses. Again, apologize and, this time, mention that the person who took his order is no longer with the shop. The owners must be aware of this mistake, so they can intervene.

4. Based on the information provided, how would you have reacted in this situation if you were Mr. Boyle? Why? If it is true that Mr. Boyle is having marital problems, it would not be uncommon to have reacted as he did. He was attempting to surprise his wife and make things better between them but instead the situation worsened. Additionally, this is an event she witnessed that would naturally increase any suspicions about her husband’s fidelity. 5. If you were Mr. Boyle, what could Regal say to convince you to continue to do business with the company? Finally, in this case it would be appropriate for the manager to let Mr. Boyle know that the incident would be reported to the owners. At this point, the owners would probably be the only ones who could convince Mr. Boyle to remain a customer. They might offer him something beyond the free arrangement given to him by the manager, especially since they have received many orders through Mr. Boyle’s position at the public relations firm. One of the owners, at the very least, should call Mr. Boyle and apologize.

Chapter 6 Customer Service and Behavior Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 2 Class Activities and Sample Assignments....................................................................... 9 Ethics in the Workplace ................................................................................................. 10 Discussion Opportunities ............................................................................................ 136 In the Real World Notes ................................................................................................ 11 Supermarket—ALDI.................................................................................................... 11 Work It Out Notes ........................................................................................................ 139 Work It Out 6.1—Describing Your Behavior ............................................................. 139 Work It Out 6.2—Monitoring Behavior ...................................................................... 139

Work It Out 6.3—Determining Styles .......................................................................... 13 Work It Out 6.4—Discovering Common Characteristics ........................................... 140 End-of-Chapter Material Notes ...................................................................................... 14 Key Terms ................................................................................................................. 14 Review Questions ..................................................................................................... 14 Collaborative Learning Activity ................................................................................ 144 Face-to-Face—Working through Technology and People Problems at Child’s Play Toy Company ............................................................................................................ 17

Learning Outcomes LO 6-1 Explain what behavioral styles are and why you should be concerned with them. LO 6-2 Identify four key behavioral styles and the roles they play in customer service. LO 6-3 Develop strategies for communicating effectively with each behavioral style. LO 6-4 Respond to customer problems effectively while building relationships. LO 6-5 Use knowledge of behavioral styles to help manage perceptions of others.

Brief Chapter Outline I. What Are Behavioral Styles? II. Identifying Behavioral Styles 1. Learning About Behavioral Styles 2. Identifying Behavioral Patterns 3. Exploring the RIDE Model A. R: Rational B. I: Inquisitive C: D: Decisive D. E: Expressive III. Communicating with Each Style IV. Building Stronger Relationships A. Discover Customer Needs B. Communicate Positively C. Seek Opportunities for Service D. Focus on Process Improvement E. Make Customers Feel Special F. Be Culturally Aware

G. Know Your Products and Services V. Dealing with Perceptions A. Perceptions and Stereotypes

Chapter Outline and Lecture Notes

I. What Are Behavioral Styles?

 

Behavioral styles are observable tendencies that people exhibit when dealing with tasks or other people. Customer service professionals need to understand human behavioral style characteristics. o The more proficient service professionals become at identifying their own behavioral preferences and those of others, the better they will be at establishing and maintaining positive relationships with customers.

II. Identifying Behavioral Styles 



Many self-assessment questionnaires in use today are based on the work begun by pioneers in the field, such as psychiatrist Carl Jung. o He divided behavior into two ―attitudes‖ (introvert and extrovert), and four ―functions‖ (thinking, feeling, sensation, and intuition). o These attitudes and functions can intermingle to form eight psychological types. From Jung’s complex research (and that of others) have come many variations, additional studies, and a variety of behavioral style self-assessment questionnaires (surveys) and models for explaining personal behavior. o An example of such an assessment is the Meyers-Briggs Type Indicator (MBTI) developed by Katherine Cook Briggs and her daughter Isabel Briggs Myers in 1962.

1. Learning About Behavioral Styles



To help give you a sense of what behavioral styles involve and understand the concepts, this chapter provides a hybrid model that the author has created, based on three decades of researching and teaching.

2. Identifying Behavioral Patterns



Although everyone typically has a primary behavior pattern—the way a person acts or reacts under certain circumstances—to which he or she reverts in stressful situations, people are a combination of various behavioral styles that they pull from as situations change. An important point to remember about any behavioral survey is that there is no ―best‖ or ―worst‖ style in a questionnaire or a survey; each style has its own attributes.

3. Exploring the RIDE Model  

The following descriptions of the four behavioral style categories are a general listing since people are not always one way or another. Since people are a combination of all four styles, they may exhibit some, but not all, of these characteristics at any given time. They may also exhibit characteristics from other style categories.

A. R: Rational



People who have a preference for the rational style may tend to: o Listen and observe more than they talk. o Be very patient. o Wait or stand in one place for periods of time without complaining, although they may be internally irritated. o Exhibit congenial eye contact and facial expressions. o Prefer one-on-one or small group interactions over large-group ones.

o o o o o o o o o o

Seek specific or complete explanations to questions. Dislike calling attention to themselves or a situation. Avoid conflict and anger. Often wear subdued colors and informal, conservative, or conventional clothing styles and accessories. Ask questions rather than state their opinion. Communicate more in writing and like the use of notes, birthday cards, e-mail, text, or thank-you cards just to stay in touch. Like to be on a first-name basis with others. Have intermittent eye contact, with a brief, businesslike handshake. Have informal, comfortable office spaces, possibly with pictures of family, friends, or pets in view. Like leisure activities that involve people.

B. I: Inquisitive



People who have a preference for the inquisitive style may tend to: o Rarely volunteer feelings freely. o Ask specific, pertinent questions rather than make statements of their feelings. o Rely heavily on facts, times, dates, and practical information to make their point. o Prefer to interact in writing rather than in person or on the phone. o Prefer formality and distance in interactions. o Use formal titles and last names as opposed to first names. May also stress the use of full names, not nicknames. o Use cool, brief handshakes, often without a smile. o Wear conservative clothing. o Be impeccable in their grooming. o Be very punctual and time-conscious. o Carry on lengthy conversations. o Be diplomatic with others. o Prefer solitary leisure activities. o Keep their personal life separate from business.

C. D: Decisive



People who have a preference for the decisive style may tend to: o Move quickly. o Seek immediate gratification of needs or results. o Work proactively toward a solution to a problem. o Be forceful and assertive in their approach. o Project a competitive nature. o Display a confident, possibly arrogant demeanor. o Ask specific, direct questions and give short, straight answers. o Might either discuss or write when they have a complaint. o Talk and interrupt more than listen. o Display symbols of power to demonstrate their own importance. o Be solemn and use closed, nonverbal body cues. o Have firm handshakes and strong, direct eye contact. o Have functionally decorated offices. o Display objects of achievement for others to see. o Prefer active, competitive leisure activities.

D. E: Expressive



People who have a preference for the expressive style may tend to: o Look for opportunities to socialize or talk with others. o Project a friendly, positive attitude. o Be enthusiastic, even animated while talking, using wide, free-flowing gestures. o Use direct eye contact and enthusiastic, warm. (often two-handed) handshake. o Smile and use open body language. o Get close or touch when speaking to someone. o Talk rather than write about something. o Initiate projects. o May wear bright, modern, or unusual clothes. o Dislike routine. o Share feelings and express opinions or ideas easily. o Get distracted in conversations and start discussing other issues. o Prefer informal use of names and like first-name communication. o Not be time-conscious and may often be late for appointments. o Speak loudly and expressively. o Like action-oriented, people-centered leisure activities.

III. Communicating with Each Style



Once service professionals recognize people’s style tendencies, they can improve their relationships and chances of success by tailoring their communication strategies. Figure 6.2 in the text lists the different personality styles, the behaviors exhibited by the different styles, the provider response for the different styles, and the possible customer relationship strategies for the different styles.

IV. Building Stronger Relationships

 



Recognizing and relating to a customer’s behavior style is the first step in providing better service. To deliver total customer satisfaction, service professionals need to make the customer feel special, which often requires skills such as relationship building through effective communication and problem solving. There are many ways of partnering with either internal or external customers to solve problems and produce a win-win situation—one in which both the customer and you and your organization succeed and feel good about the outcome.

A. Discover Customer Needs



Using sound listening and verbal and nonverbal communication skills, service professionals should engage customers in a dialogue that allows them to identify what they really need or want. o If service professionals can determine a customer’s behavioral style, they can tailor their communication strategy to that style.

B. Communicate Positively



If service professionals must decline a request or cannot provide a product or



service, they should do so in a positive manner. De-emphasizing what a service professional cannot do and providing an alternative puts the customer in a power position. o This approach of offering alternatives not only serves the customer but also (sometimes) results in a sale.

C. Seek Opportunities for Service



Service professionals should view complaints as a chance to create a favorable impression by solving a problem. o They should watch the behavioral characteristics being exhibited by their customer. Using what they see and hear, service providers can take appropriate action to adapt to the customer’s personality needs and solve the problem professionally.

D. Focus on Process Improvement

  

Defects in the service professionals’ system or processes or delays should be handled when the customer is not present. Service professionals should strive to provide seamless service to the customers. When breakdowns do occur, they should be fixed quickly, and the customer relationship smoothed over.

E. Make Customers Feel Special



Most people like to feel special and appreciated. o Creating that feeling in others is what stellar customer service is all about. By creating a bond with the customers though positive words and actions, service professionals can easily help them feel as if there is no other place they would rather be or with whom they would rather do business. When customers feel good about themselves as a result of something a

service professional did or said, they are likely to better appreciate what the service professional and his or her organization can offer them.

F. Be Culturally Aware

 

Service professionals must remember that because values and beliefs vary from one culture to another, behavior is also likely to vary. A heightened knowledge of behavioral styles can better prepare service professionals to serve a wide variety of customers.

G. Know Your Products and Services

 

Customers expect that service professionals will be able to identify and describe their company’s products and services. Service providers need to have a sound knowledge of the products and services they are offering so that they can provide the best customer service possible.

V. Dealing with Perceptions

 

Everyone has perceptions about the people and events he or she encounters. A person’s behavioral style as well as background, based on education, experiences, events, and interpersonal contacts, can influence how that person views the world.

A. Perceptions and Stereotypes

  

People’s perception of events and each other vary greatly. Customer service providers should be aware of how they perceive customers and, in turn, how customers perceive them. The following are some of the factors affecting perceptions: o Personal appearance



o Physical qualities o Social roles o Social behaviors o Psychological qualities o Group affiliations In some cases, service providers may stereotype people and, in doing so, adversely affect delivery of services. o Stereotype refers to generalization made about an individual or group not based on reality. Stereotyping people affects service providers’ relationships with customers and could even lead to legal charges of discrimination and liability for service providers and their organization. To avoid categorizing or stereotyping people, service providers should spend time observing them, listen to them objectively, and respond according to each situation and person.

Class Activities and Sample Assignments

21. Read chapter 6. (LO 6-1 through 6-5) 22. Ask students to visit http://www.colorcode.com/personality_test/ and take the free basic analysis test to determine their ―color.‖ Then, use the following information to discuss each students ―color.‖ (LO 6-1 through 6-2) a. RED (Motive: Power)—these are the power wielders. Power, the ability to move from point A to point B and get things done, is what motivates and drives these people. They bring great gifts of vision and leadership and generally are responsible, decisive, proactive, and assertive. b. BLUE (Motive: Intimacy)—these are the do-gooders. Intimacy, the ability to connect, create quality relationships, and have purpose is what motivates and drives these people. They bring great gifts of quality and service and are generally loyal, sincere, and thoughtful. c. WHITE (Motive: Peace)—these are the peacekeepers. Peace, the ability to stay calm and balanced even in the midst of conflict, is what motivates and drives these people. They bring great gifts of clarity and tolerance and are generally kind, adaptable, and good listeners.

d. YELLOW (Motive: Fun)—these are the fun lovers. Fun, the joy of living life ―in the moment,‖ is what motivates and drives these people. They bring great gifts of enthusiasm and optimism and are generally charismatic, spontaneous, and sociable. 23. Ask students to get into groups and brainstorm a list of at least 10 things a company can do to make the customer feel special. (LO 6-4) 24. Ask students to look at Figure 6.4, which includes the factors affecting perception. Then, ask students to answer the questions mentioned in the figure. (LO 6-5) 25. Ask students to discuss in groups (LO 6-5): a. What is perception, as discussed in this chapter? b. How do you recognize when you are using your perception to guess another person’s thoughts or feelings? c. How do you use perception checking? How can you get better at it?

Ethics in the Workplace Extra Service Under the Hood (LO 6-4)

You are an automobile technician at a small pre-owned-car dealership. You receive an hourly wage but also get commissions when you bring in extra customers or sell products or services to customers who come in for car maintenance. You took the job because you were laid off by a large car dealership about six months ago and could not find another similar position. You have a family to support that includes three children.

Many of the clients who use your services are lower income men and women who are not that educated. In your opinion, the dealership owner takes advantage of customers. He often encourages mechanics to upsell products and services to customers who come in. He suggests that by ―scaring‖ customers with potential safety and breakdown concerns, you and the other mechanics can get customers to agree to extra work. In many cases, such claims are not true. They are simply a means for getting customers to buy things they do not really need.

How would you handle this situation?

Instructor Debrief Notes

Start the debrief by asking the following questions:

1. What are the ethical issues in this situation? 2. Is there anything wrong with what the dealership does? Explain. 3. How would you feel about the mechanics and dealership if you were a customer and found out what they were doing?

Scams such as this have been around as long as people have been on Earth. Some people have low moral standards and feel that there is nothing wrong with taking advantage of others. Unfortunately, when people are not educated or do not know how to handle various issues that surface in life, they are susceptible to those who would prey on them. As the great American showman, P.T. Barnum, once said, ―There’s a sucker born every minute.‖

In this situation, employees have to decide for themselves if they agree with the unethical approach that this dealer is taking to deal with its customers. If they comply, then they are also acting in an unprofessional manner.

In some situations (e.g. depending on the conditions of the car sales contract) the dealer could be in violation of state and federal laws related to consumer issues.

The bottom line is that if you work for an employer who condones and encourages unethical practices, you have to decide to stay or go as an employee.

Discussion Opportunities

1. What impact do your life experiences have on perception of situations, people, and things? Give an example of how one of your life experiences has impacted your perception. (LO 6-5) 2. How accurate is your behavioral personality style from Work It Out 6.1 and Figure 6.1? Describe what makes it accurate or inaccurate. (LO 6-2) 3. What is process improvement? If you could improve a process at your current or former organization, what would you improve? (LO 6-4) 4. What are some of the barriers that prevent customer service people from being able to say, ―yes‖? Have you ever experienced these? (LO 6-4) 5. Do you think you can fully define a behavioral style? Why or why not? (LO 6-1)

In the Real World Notes (p. 231)

Supermarket—ALDI Founded in Germany in 1946, ALDI has grown to be one of the leading discount supermarket chains in the world with over $28 billion in sales in 2019. The company now has over 2,000 stores in 36 states in the U.S., which employ over 25,000 employees. The chain is on track to become the third-largest grocery retailer by store count by the end of 2022. To keep its costs low while serving the needs of customers, ALDI stocks notable U.S. name brands along with a large variety of products sourced from around the globe, and ALDI’s private label brands were named the most preferred among U.S. consumers.

Contributing to this growth is ALDI’s business model of providing great quality at the best price, fair and honest products, and efficient business processes. In its Corporate Responsibility Principles, ALDI defines its commitment to people and the planet. These principles focus on customers, supply chain, people, community, and environment.

An integral part of ALDI’s operational approach involves supporting efforts to provide a living wage and protect human rights throughout Its global supply chain. Additionally, the company works to ensure that members of its supply chain respect the environment and animal welfare rights. This includes a commitment to sustainable product packaging. One way that the company puts this environmental commitment into practice is to require customers to bring their own reusable bags or containers to the store when they shop. The company does not provide plastic or paper bags at the register. For its environmental efforts, ALDI received a 2019 GreenChill Store Certification and the 2020 Green Power Leadership Award from the U.S. Environmental Protection Agency (EPA).

1. Why do you think ALDI might have such a loyal customer base?

ALDI might have such a loyal customer base for the following reasons: 

They provide quality products at affordable prices, including U.S. name brands and highly-regarded private label products.  They support efforts to provide a living wage.  They protect human rights through its global supply chain. They demonstrate commitment to protecting the environment.

2. Do you believe that the commitments espoused by the company matter and make a difference when customers are deciding where to shop for groceries? Explain.

Answers will vary. ALDI defines its commitment to people and the planet. These principles focus on Customers, Supply Chain, People, Community, and Environment. Customers are concerned about prices, but many place great importance on sustainability and the environment, treatment of employees, and community contributions. These issues can impact a person’s decision to shop at ALDI.

3. Based on what you read above, on its website, and on an Internet search for the company, what do think about their approach to satisfying customer needs?

Answers will vary. Some of them may be in favor of ALDI’s product and pricing strategies, while others may focus on their human rights and environmental protection efforts.

4. Is this a company that you would patronize as a customer? Why or why not?

Answers will vary. Their decision of patronizing or not patronizing ALDI as a customer will depend on their experience at the store, research, or hearsay.

5. Would you want to work for this company? Why or why not?

Answers will vary. They should be able to justify their choice.

Work It Out Notes Work It Out 6.1—Describing Your Behavior (p. 235) This Work It Out box asks students to rate words to figure out their behavioral style preference. Remind students that this quiz is merely one tool among hundreds to help determine their behavior style. No one quiz and no one person will have the same style all of the time. Students may need help assessing the quiz. Work It Out 6.2—Monitoring Behavior (p. 247) This activity asks students to observe the behavior of people they know over a week’s time. Many students, if they know the person well, could already make guesses about the person’s preferred style. If you are limited on time, a variation of this exercise might be the best way to go. Ask students to think about someone they know well, then ask:

1. 2. 3. 4. 5. 6.

How does this person write? Is their writing short and formal? Is this person a good listener? Is he direct? How is this person’s body movement and other nonverbal behavior? What is this person’s dress style? What does this person’s home, office, or car look like in terms of decorations? What activities does this person like to do?

Based on what they know, ask students to select a preferred style for the person of whom they are thinking. Of course it is best to have them observe for a week, but this is a good alternative if you don’t have time to ask students to do that. Work It Out 6.3—Determining Styles (p. 253) This box gives four situations and asks students to figure out which behavioral style each person is. You can ask the students to do this in groups or independently. It might be interesting to have the students work alone first and then get into groups to compare answers. In Situation 1, the person is a decisive style based on her direct manner of communicating. In Situation 2, the person is likely a rational style, evidenced by the family picture and facial expressions used. In Situation 3, the customer is likely inquisitive since she asks detailed information and is focused on the task at hand. In Situation 4, this customer is most definitely expressive since she shares pictures, uses a lot of touching, and speaks exuberantly. Work It Out 6.4—Discovering Common Characteristics (p. 256) In this box, students are asked to describe the shopping habits of people they know. If you prefer this to be an in-class activity, ask students to get into groups of five and answer the questions in the box. You can then ask students to state what style they are. Obviously, at least two students will have the same style, but those two probably will not have the same answers on their reasoning for shopping. Use this is an example that even though we may have the same behavioral style, our needs may be different. You can also use this box to talk about stereotyping and the negative impact it can have on customer service.

End-of-Chapter Material Notes Key Terms

            

Behavioral styles (p. 233) Decisive style (p. 240) Discrimination (p. 256) Expressive style (p. 241) Inquisitive style (p. 239) Perceptions (p. 255) Primary behavior pattern (p. 235) Problem solving (p. 246) Process improvement (p. 251) Rational style (p. 238) Seamless service (p. 251) Stereotype (p. 256) Win-win situation (p. 246)

Review Questions 1. What are behavioral styles? A behavioral style is an observable tendency that people exhibit when dealing with tasks or other people.

2. What are the four behavioral style categories discussed in this chapter? The four behavioral styles include rational, inquisitive, decisive, and expressive.

3. What are some of the characteristics that can help you identify a person who has the following style preferences: R, I, D, E? People who have a preference for the rational style are very patient and are willing to wait or stand in line for long periods of time. They prefer small groups and want specific answers to questions. People who have a preference for the inquisitive style rarely talk about feelings, and they rely heavily on facts, times, and dates. They ask questions rather than stating how they feel. They prefer formality and distance. People who have a preference for the decisive style move quickly and seek immediate gratification. They tend to be more forceful and assertive in their approach. They display a confident demeanor and sometimes could be considered arrogant. People who have a preference for the expressive style like to socialize and are enthusiastic. They smile and use open body language, and they tend to get close when speaking with someone.

4. When communicating with someone who has an ―R‖ preference, what can you do to improve your effectiveness? When communicating with someone who has an ―R‖ preference, return a firm handshake, avoid aggressive gestures, and try to mirror their behavior. In addition, use open-ended questions to draw out their information and try to be structured in one’s approach to communications.

When communicating with someone who has an ―I‖ preference, what can you do to improve your effectiveness? When communicating with someone who has an ―I‖ preference, respond to them similarly by using careful, restrained body cues and avoiding touching. Use brief, accurate statements and provide background information and data. When applicable, respond in writing and address them by title.

6. When communicating with someone who has a ―D‖ preference, what can you do to improve your effectiveness? When communicating with someone who has a ―D‖ preference, return steady eye contact and smile. Also, stand your ground and maintain a professional demeanor, do not react defensively and avoid unnecessary details. Match your rate of speed in speaking and keep communications brief.

7. When communicating with someone who has an ―E‖ preference, what can you do to improve your effectiveness? When communicating with someone who has an ―E‖ preference, listen and respond enthusiastically, use open and positive body language, ask questions that involve the customer, and ask open-ended questions. Additionally, use a friendly style when communicating in writing.

8. What are some strategies for eliminating service barriers by using your knowledge of behavioral styles? By having an idea of someone’s behavioral style, service professionals can help the customer solve problems and create a win-win situation. By understanding their style, service professionals can better serve them and answer questions, and can address body language in a method that is similar to theirs, thus creating a better relationship.

9. What are perceptions? A perception is how someone views an item, situation, or others. It is often based on people’s knowledge and past experiences. Everyone has a different perception of events based on how they personally saw the event.

10. How can perceptions affect customer relations?

Service professionals’ perception of others influences how they communicate with their customers. How they communicate with their customers is one of the most important parts of excellent customer service. Consider ways of dressing; this alone can create an inaccurate perception of someone. (For example, ―Oh, they can’t afford my product.‖) This is stereotyping, which can have negative consequences.

Collaborative Learning Activity This activity can be done with or without the worksheet mentioned in the text. If you don’t have a lot of time, ask students to go to the student union, student library, or somewhere else on campus to observe behavior. Ask them to take notes on their behavior observations and then discuss in class. This activity can be as short as 30 minutes—15 minutes for observation on campus and 15 minutes for discussion. If you like, you can make it longer by asking students to observe for an hour or more. Students should write down thoughts on which behaviors they saw and then (either in writing or in class) categorize them into the behavior personalities discussed in this chapter.

Face-to-Face—Working through Technology and People Problems at Child’s Play Toy Company Since opening its newest store in Princeton, New Jersey, Child’s Play Toy Company of Minneapolis, Minnesota, has been getting mixed customer reviews. In order to reduce staffing costs, the store has stationed its customer service representatives in Philadelphia, Pennsylvania, who are remotely connected via satellite and computer to all new stores. This system is used for special ordering, billing questions, and complaint resolution. In recent months, the number of customer complaints has been rising. Many people complain about not getting the product they ordered over the system. Some are uncomfortable using the computer keyboard, while others dislike the impersonal touch and that they have to answer a series of standard questions asked by a ―talking head‖ on the screen. Some customers have also encountered system or computer breakdowns, and they cannot get timely service or resolution of problems. Mrs. Sakuro, likely a D behavior profile, comes in and is upset that her order never shipped and she was never notified. Even though she placed the order using the in-store system, she is

upset with the customer service representative.

1. From the behavioral style information in this chapter and other subjects discussed in this book, what do you think is causing the complaints being made?

The challenge in this case is that the customer service representatives in the store are the ones who take the brunt of dissatisfied customers because the system is not working well. The customer has no one to turn to when a problem arises, except for the store employees who, in turn, have no control or responsibility over items ordered on their in-store sytem.

2. What system changes would you suggest for Child’s Play? Why?

The customer service representatives in both Philadelphia and the individual stores can suggest changes that need to be made to the technical aspects of their system. No one appears to be responsible for delivery of items through their instore system. Ultimately, since arrival of the items does not affect employees in Philadelphia, they don’t need to be motivated to provide customer service excellence. In-store reps have no control over ordering procedures, stock, payment, or delivery. It’s unfair to make them the scapegoats for problems over which they have no control. Child’s Play must consider scrapping the in-store systems unless store customer service providers are given access to them. Or they should consider separating the online part of the business from the retail part of the business. Online orders could be returned through stores because the store reps would have control of the transaction.

3. What can you do at this point to solve the problem?

Call the service center in Philadelphia directly rather than trying to use the system Mrs. Sakuro would use in the store.

4. What primary behavioral style is Mrs. Sakuro exhibiting? What specific strategies

should you use to address her behavior?

To address Mrs. Sakuro’s concerns, the customer service representative should be direct and concise, and move quickly to find a way to solve the problem. Mrs. Sakuro, a D style, would appreciate a confident assurance that you could make it right. She is a regular customer, so it is important to apologize and make her feel special. The rep should reassure her that this order will expedited.

Personal Style Inventory

Chapter 7 Service Breakdowns and Recovery Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 16 Ethics in the Workplace: The Unlawful Act .................................................................... 19 Discussion Opportunities .............................................................................................. 20 In the Real World Notes ................................................................................................ 21 Retail/Manufacturing—Coca-Cola .............................................................................. 21 Work It Out Notes .......................................................................................................... 22 Work It Out 7.1—Handling Service Breakdowns ........................................................ 22 Work It Out 7.2—Service Breakdown Examples ........................................................ 23 Work It Out 7.3—Handling the Demanding Customer ................................................ 23 Work It Out 7.4—Dealing with Angry Customers ........................................................ 23 Work It Out 7.5—Responding to Rudeness ................................................................ 23 Work It Out 7.6—Building Your Skills .....................................................................23 Work It Out 7.7—Focusing on the Customer..........................................................24 Work It Out 7.8—Recovering from Policy Restrictions................................................ 24 End-of-Chapter Material Notes ...................................................................................... 24 Key Terms ................................................................................................................. 24 Review Questions ..................................................................................................... 25 Collaborative Learning Activities ............................................................................... 27 Face-to-Face—Handling Service Breakdowns at AAA Landscaping.......................... 28

Learning Outcomes LO 7-1 Define service breakdown. LO 7-2 Develop effective strategies for working with internal customers. LO 7-3 Apply knowledge of behavioral styles in difficult customer situations. LO 7-4 Recognize different types of difficult customers and effectively deal with them. LO 7-5 Use the emotion-reducing model to help keep difficult situations from escalating. LO 7-6 Explain why customers defect. LO 7-7 Identify strategies for preventing customer dissatisfaction and problem solving. LO 7-8 Explain the six steps of the problem-solving model. LO 7-9 Implement a frontline service recovery strategy, and spot roadblocks to service recovery. LO 7-10 Discuss the importance of disaster planning initiatives in the service recovery process.

Brief Chapter Outline I. What Is a Service Breakdown? II. Working with Internal Customers (Coworkers) A. Stay Connected B. Meet All Commitments C. Do Not Sit on Your Emotions D. Build a Professional Reputation E. Adopt a Good-Neighbor Policy III. The Role of Behavioral Style IV. Difficult Customers A. Demanding or Domineering Customers B. Indecisive Customers C. Dissatisfied and Angry Customers D. Rude or Inconsiderate Customers E. Talkative Customers V. Handling Emotions with the Emotion-Reducing Model VI. Reasons for Customer Defection VII. Strategies for Preventing Dissatisfaction and Problem Solving A. Make Positive Initial Contact B. Think Like the Customer C. Pamper the Customer D. Respect the Customer

E. Exceed Expectations F. Responding to Conflict G. Causes of Conflict H. Salvaging Relationships after Conflict VIII. The Problem-Solving Process A. 1. Identify the Problem B. 2. Compile and Analyze the Data C. 3. Identify the Alternatives D. 4. Evaluate the Alternatives E. 5. Make a Decision F. 6. Monitor the Results IX. Implementing a Service Recovery Strategy A. 1. Apologize, Apologize, and Apologize Again B. 2. Take Immediate Action C. 3. Show Compassion D. 4. Provide Compensation E. 5. Conduct Follow-Up X. Disaster Planning Initiatives in the Service Recovery Process

Chapter Outline and Lecture Notes I. What Is a Service Breakdown? o

o o o

Service breakdowns occur daily in all types of organizations. o They happen whenever the product or service delivered fails to meet customer expectations. When a product or service fails to meet what the customer wants or needs, dissatisfaction and frustration can result. Customer expectations can affect how service is delivered and perceived. Today’s customers are more discerning and better educated, have access to more up-to-date and accurate information, and are often more demanding than in the past.

II. Working with Internal Customers (Coworkers) 

Service providers have external customers who purchase or use their products or services. o In addition to these external customers or organizations, most service providers also have to deal with internal customers.



 

Although interactions with internal customers may not be difficult, they can often be more sensitive than the dealings with outsiders. o This is because if someone within the organization becomes irritated or dissatisfied with the service provider, he or she doesn’t necessarily go away. o Instead, this person might tell coworkers or the supervisor about the encounter, which can damage the service provider’s reputation and even put his or her standing in the organization in jeopardy. Service providers should extend all the same courtesies to internal customers that they do to external ones—in some cases, more so. Sound internal customer service practices can help to boost employee communication and morale while helping to enhance processes and procedures, reduce costs, increase productivity, and replace interdepartmental competition with interdepartmental cooperation. A. Stay Connected   

Since relationships within the organization are so important, service providers should go out of their way to regularly make contact with internal customers. If a coworker is celebrating a special occasion (e.g., birthday, anniversary, etc.), consider sending a card or an e-card to congratulate him or her. Coworkers are the ―normal‖ internal customers, but do not forget the importance of relationships with other organizational employees, such as the cleaning crew, security force, etc.

B. Meet All Commitments 



Too often, service providers forget the importance of internal customers. o Because of familiarity, service providers sometimes become lax and may not give the attention to internal customers that they would give to external customers. To prevent, or at least reduce, the possibility of breakdowns, service providers should honor all commitments they make to internal customers. o If something comes up that prevents service providers from fulfilling their commitment, they should let the customer know of the change in a timely manner.

C. Do Not Sit on Your Emotions 

Some people hold on to anger, frustration, and other negative emotions



rather than getting their feelings out into the open and dealing with them. o Not only is this potentially damaging to health, for it might cause stressrelated illnesses, but it can also destroy working relationships Whenever something goes wrong or you are troubled by something, go to the person and use feedback skills to talk about the situation. o Failure to do so can result in disgruntled internal customers, damage to the customer–supplier relationship, and damage to the service provider’s reputation.

D. Build a Professional Reputation 



Through words and actions, service providers should go out of their way to project a positive, can-do, customer-focused attitude to the customer as well as to own their supervisor. Part of projecting a professional image is to regularly demonstrate a commitment to proactive service. o Service providers should gather information, products, and other tools before coming into contact with a customer so that they are prepared to deal with a variety of situations and people.

E. Adopt a Good Neighbor Policy  

Service providers should take a proactive approach to building internal relationships so that they can head off negative situations. Service providers can accomplish this in part by adopting the following work habits: o Avoid gatherings of friends and loud conversations in your workspace. o Maintain good grooming and hygiene habits. o Do not overdo call forwarding. o Avoid unloading personal problems. o Avoid office politics and gossip. o Do not discuss politics, religion, sexual topics, or other potentially sensitive, divisive, or offensive topics o Pitch in to help. o Maintain a clean, organized work area. o Be truthful.

III. The Role of Behavioral Style o

Behavior style preferences play a major part in how people interact.

o Styles also affect the types of things people want and value. The more service providers know about behavioral style preferences, the easier it becomes to deal with people in a variety of situations and help match their needs with the products and services that their organizations can provide. Service providers should keep in mind that everyone possesses one or a combination of the four following different behavioral styles: o Rational—prefer one-on-one or small-group interaction, are congenial and patient, avoid conflict, and dislike calling attention to themselves. o Inquisitive—rarely volunteer feelings, ask ―why‖ questions, desire facts and figures, and are formal, task-oriented, conservative, and punctual. o Decisive—are decisive, directive, task- and goal-focused, confident, and competitive; seek immediate gratification or results; and talk more than listen. o Expressive—are open, laid-back, flexible, positive, enthusiastic, and informal; prefer dealing with people; and easily share feelings and emotions. Because customers can display various types of behavior from time to time, service providers should carefully observe their behavior and learn about each style as an indicator of the type of person with whom they are dealing.

IV. Difficult Customers o o

o o

Difficult customers are people who challenge a service provider’s ability to deliver service and who require special skills and patience. From time to time, service providers will be called upon to help customers who can be described in one or more of the following ways: o Dissatisfied with the service or products. o Indecisive or lack knowledge about the product, service, or policies. o Rude or inconsiderate of others. o Talkative. o Internal customers with special requests. o Speak a primary language other than the one spoken by the service provider. o Elderly and need extra assistance. o Young and inexperienced who might need to be guided in making a good choice. o Have some type of a disability or special need(s). A key to successfully serving all types of customers is to treat each person as an individual. If service providers stereotype people, they will likely damage the customer–

provider relationship and might even generate complaints to their supervisor or legal action against them and their organization based on perceived discrimination. Service providers will ultimately deliver successful service through their effective communication skills, positive attitude, patience, knowledge, service experience, and willingness to help the customer. A. Demanding or Domineering Customers o o

Demanding or domineering customers have definite ideas about what they want and are unwilling to compromise or accept alternatives. Some strategies for effectively handling demanding customers are: o Be professional. o Respect the customer. o Be firm, fair, and focus on the customer’s needs. o Tell the customer what you can do. By being thoroughly familiar with the organization’s policies and procedures and their limits of authority, service providers will be prepared to negotiate with demanding customers.

B. Indecisive Customers o o

Indecisive customers are people who have difficulty making a decision or making a selection when given choices of products or services. Strategies for dealing with an indecisive person are: o Be patient. o Ask open-ended questions. o Listen actively. o Suggest other options. o Guide decision making.

C. Dissatisfied and Angry Customers o o

Dissatisfied customers are people who either do not (or perceive that they do not) receive promised or quality products and services. In order to calm dissatisfied customers and make them happy, service providers could try the following strategies: o Listen with an open mind to discover the basis for their anger or dissatisfaction. o Remain positive and flexible while showing a willingness to work with

the customer or negotiate. o Smile, give your name, and offer assistance. o Be compassionate and empathize without making excuses. o Ask open-ended questions and verify information. o Take appropriate action. Angry customers are customers who become emotional because either their needs are not met or they are dissatisfied with the services or products purchased from an organization. Some possible tactics for handling angry customers are: o Be positive. o Acknowledge the customer’s feelings or anger. o Reassure. o Remain objective. o Listen actively; determine the cause. o Reduce frustrations. o Negotiate a solution. o Conduct a follow-up. Service providers should strive to do the unexpected and provide quality service to create a memorable customer experience—underpromise and overdeliver—and do whatever possible (within their authority) to rectify a situation in which a customer is dissatisfied with their product or service in order to ensure customer satisfaction.

D. Rude or Inconsiderate Customers o

Rude or inconsiderate customers are people who seem to take pleasure in being obstinate and contrary when dealing with service providers and who seem to have their own agenda without concern for the feelings of others. Service providers could try the following strategies to deal with rude or inconsiderate customers: o Don’t take their behavior personally. o Remain professional. o Listen and apologize, if appropriate. o Do not resort to retaliation. o Work to solve the problem or request.

E. Talkative Customers o o

Talkative customers are customers exhibiting extroverted behavior who are very people-oriented. The following tips might help when dealing with talkative customers:

o o o o

Remain warm and cordial, but focused. Ask specific open-ended questions. Use closed-ended questions to control the situation. Manage the conversation.

V. Handling Emotions with the Emotion-Reducing Model o

It is important to remember when dealing with people who are behaving emotionally that they are typically upset with the structure, process, organization, or other factors over which service providers and/or customers have no control. o In such situations, service providers should remain rational and should not react to customers emotionally. Before service providers can get their customer to calm down, listen, and address the situation, they must first deal with the customer’s emotional state. o Once service providers do this, they can proceed to use problem-solving strategies to assist in solving the problem. To help calm the customer, service providers must send customer-focused verbal and nonverbal messages. o Service providers need to demonstrate patience and use positive communication skills such as properly phrased verbal messages and questions, effective nonverbal cues, and active listening skills. o Listen calmly to what the customer has to say without interrupting or interjecting your views. Service providers should remember that a customer generally wants to be respected and acknowledged as an individual and as being important. o As service providers interact with a customer, they can soften the situation and reduce emotion by providing customer-focused responses. The key to helping resolve any service breakdowns is to frame the problem resolution with customer-focused messages through use of the emotionreducing model. o The model involves five steps—customer-focused message, emotional issue, customer-focused message, problem solving, and customer-focused message.

VI. Reasons for Customer Defection o

Customer defection occurs when customers take their business to a competitor because they feel that their needs or wants are not met or if they encounter breakdown in customer service or inferior products. Service providers must be especially careful to identify reasons for customer

defections and remedy potential and actual problems before they negatively affect customers. The following are some of the reasons for customer defection: o Price o Poor service and complacency o Lack of communication o Inappropriate complaint resolution o Unmet needs

VII. Strategies for Preventing Dissatisfaction and Problem Solving 

Strategies for preventing dissatisfaction refer to the techniques service providers use to prevent a breakdown in needs fulfillment when dealing with customers.

A. Make Positive Initial Contact  First impressions are crucial and often lasting.  Relationship-rating points are values mentally assigned by customers to a service provider and his or her organization, based on a number of factors starting with initial impressions and subsequently by the quality and level of service provided.  The mental rating system that customers use to evaluate service and service providers is called the relationship-rating point scale. B. Think Like the Customer  

Service providers should research and learn to use interactive communication techniques. Once service providers have mastered the interactive communication techniques, they should set out to discover what customers want by observing nonverbal behavior, asking specific questions, and listening to their comments and responses.

C. Pamper the Customer 



Service providers do not have to give into a customer’s every whim and request, but they should certainly attempt to provide the products and services promised in a timely manner, provide the best quality of service possible, and address customer concerns quickly and professionally. Service providers should make customers feel special and important.

D. Respect the Customer 



To demonstrate customer respect, service providers have to demonstrate that they care about, listen to, and are concerned for their customers and their well-being. When problems arise, service providers can show their respect by actively listening to their customers and empathizing with them.

E. Exceed Expectations  

Service providers should work hard to understand what the customer wants and expects. Service providers should provide the service faster, better, and more efficiently than others, and exceed customer expectations.

F. Responding to Conflict  

Conflict should be viewed as neither positive nor negative. It involves incompatible or opposing views and can result when a customer’s needs, desires, or demands do not match service provider or organizational policies, procedures, and abilities.

G. Causes of Conflict 

Some common causes of conflict are: o Conflicting values and beliefs o Personal style differences o Differing perceptions o Inadequate or poor communication o Contrary expectations o Inadequate communication o Goals out of sync with reality o Competition for shared resources o Outcomes dependent on others o Misuse of power

H. Salvaging Relationships after Conflict 

Managing conflict involves more than just resolving the disagreement.



Often poorly handled service recovery efforts result in such things as complaints to a service provider’s supervisor or consumer agencies, bad word-of-mouth publicity, and lost customers. The following strategies can assist in a service provider’s service recovery efforts: o Reaffirm the value of the relationship. o Demonstrate commitment. o Be realistic. o Remain flexible. o Keep communication open. o Gain commitment. o Monitor progress.

VIII. The Problem-Solving Process  

To solve a problem, service providers need to first identify the problem and determine if the problem is one that needs to be solved. Once service providers decide to solve the problem, they follow the proven, sixstep problem-solving model. The following six steps describe some key actions involved in this process. A. 1. Identify the Problem   

Before service providers can decide on a course of action, they must first know the nature and scope of the issue they are facing. Service providers should begin their journey into problem solving by apologizing for any inconvenience they or their organization has caused. Learn as much about the issue as possible; start by speaking to the customer. o Service providers should collect all available documentation or background information.

B. 2. Compile and Analyze the Data 

 

To be able to effectively determine a course of action, service providers need as much information as possible and a thorough understanding of what they are dealing with. In gathering data, service providers should also do a quick assessment of how serious the problem is. Once service providers have collected information through questioning and

from other sources, they should spend some time looking over what they have found. C. 3. Identify the Alternatives   

Service providers should let the customer know they are willing to work with them to find an acceptable resolution to the issue. Service providers should offer suggestions or viewpoints that the customer may not see or has overlooked. Service providers should be willing to listen to the customer’s suggestions and to ―think outside of the box‖ for ideas other than the ones that they and their organization typically use.

D. 4. Evaluate the Alternatives  

Once all the facts have been collected, service providers should look at their alternatives or possible options. A little extra time and money spent to resolve an issue could save a customer and prevent recurring problems later.

E. 5. Make a Decision 

Based on questions from step 4 (Evaluate the Alternatives) such as: ―What is the most efficient way to solve this problem?‖, ―Which are the most effective options for solving the problem?‖, and ―Which options are the most costeffective?‖, etc., and any others the service providers wish to use in evaluation, they should make a decision on what their course of action will be. o To do this, service providers could ask the customer, ―Which option would you prefer?‖ o This simple question puts the customer into the decision-making position and he or she feels empowered. o If the customer’s request is reasonable and possible, service providers should proceed and resolve the issue. o If not, service providers should negotiate a different alternative.

F. 6. Monitor the Results 

Once service providers have made the decision, they should monitor the effect or results.

 

Do not assume the customer is satisfied. Service providers can be monitor the situation with a follow-up call, by asking if the customer needs anything else when they next see or speak to him or her, or by sending a written follow-up.

IX. Implementing a Service Recovery Strategy   



The best service providers can hope for when something goes wrong is that they can identify the cause and remedy it quickly to their customer’s satisfaction. The primary purpose of any good service recovery program should be to return the customer–provider relationship to its normal state. Some typical reasons that necessitate service recovery action are: o Product or service did not deliver as expected. o A service provider lacked adequate knowledge or skills to handle a situation. o A customer request or order was not handled properly. o Attempts to return or exchange an item were hampered by policy or an uncooperative employee. o A customer was given the ―runaround,‖ being transferred to various employees or departments and being required to explain the situation to each individual. o The customer was treated unprofessionally or in a rude manner. o Corrective action was taken for any of these reasons and the customer is still not satisfied. According to a consumer survey by the internationally known training company AchieveGlobal of Tampa, Florida, customers—regardless of industry, geography, or product/service—want the service they receive to be: o Seamless o Trustworthy o Attentive o Resourceful Typically, there are five phases to the service recovery process—apologize, apologize, and apologize again; take immediate action; show compassion; provide compensation; and conduct follow-up. A. 1. Apologize, Apologize, and Apologize Again  

Showing sincere remorse throughout the recovery cycle is crucial. An apology should come immediately after the discovery of the customer’s dissatisfaction and should be delivered in person, if possible.

B. 2. Take Immediate Action   



As soon as the customer has identified a problem, service providers must set about positively resolving it. Service providers should avoid saying no without offering service options. There may be times when, even though service providers want to give customers exactly what they want, they will not be able to do so because of regulations or prohibitions. o In such cases, it is important for service providers to use interpersonal skills to inform their customer that they are prohibited from fulfilling his or her needs and explain why. In some situations, service providers may want to help a customer but cannot because their abilities, time constraints, resources, or the customer’s timing of a request prevent fulfillment. o In such instances, service providers should show a willingness to assist and meet the customers’ needs even though there are obstacles to meeting original requests. There might be other occasions when service providers or their organization does not meet a customer’s request even though it is possible to do so.

C. 3. Show Compassion  

A service provider must demonstrate empathy to help the customer see his or her genuine remorse and desire to solve a problem. If service providers disregard customers’ feelings, they may not give the service providers a chance to help resolve the breakdown.

D. 4. Provide Compensation 



Service providers should prove that customers are valuable by trying to make up for their inconvenience or loss. o This penance or symbolic self-punishment should be significant enough that the customer feels that the service provider and his or her organization have suffered an equal loss. Not only must the recovery compensate original loss, it should give additional value.

E. 5. Conduct Follow-Up



The only way to find out whether the service provider was successful in his or her recovery efforts or whether the customer is truly satisfied is to follow up. o The preferable methods are face-to-face questioning or a phone call.

X. Disaster Planning Initiatives in the Service Recovery Process 



Hurricanes Katrina and Sandy, the Oklahoma tornadoes of 1999 and 2013, and other similar natural catastrophes all have one thing in common—they devastated homes and businesses on a massive scale. o For organizations that did not have an active disaster preparedness or contingency plan, the results were dramatic and paralyzing financially and from an operational standpoint. The U.S. Small Business Administration suggests that organizations take at least the following actions to prepare for potential disaster situations in order to remain functional or to more effectively recover should a catastrophe strike: o Create a preparedness program for the business. o Identify critical business functions and systems. o Create an emergency communications plan. o Test preparedness systems regularly. o Build a disaster preparedness kit. As a result of such unthinkable destruction, many organizations have taken proactive measures to create and rehearse disaster preparedness and contingency plans. o They store vital information and data at reinforced offsite facilities in various geographic regions and via cloud technology. o They also train their employees about the need to think proactively and decide what information is crucial for storage.

Class Activities and Sample Assignments 1. Read chapter seven. (LO 7-1 through 7-10) 2. Ask students to get into groups and discuss a service breakdown they have experienced. Then, ask them to discuss the method used for service recovery. (LO 7-1 and 7-9) 3. Ask students to use Figure 7.11 to develop a specific service recovery process and options for the following situations: (LO 7-1 and 7-9) a. For servers at a restaurant: A customer doesn’t like his food.

b. For a cell phone service call center: A customer is disappointed by the number of dropped calls he or she has been experiencing. c. For an office manager: You didn’t order enough supplies, and your coworkers are upset they don’t have the materials they need to finish their job. d. For a day care owner: One of your employees told a child to ―shut up‖ and the parent found out about it and is very upset. e. For a contractor: You have been very busy and unable to complete a customer’s two-bathroom remodel on time. The customer is angry because she expects company and the bathrooms are not complete. 4. This chapter discusses a problem-solving process, a useful tool for not only customer service but all aspects of life. Present Edward de Bono’s Six Thinking Hats Model. The Six Thinking Hats Model is similar to the problem-solving process presented in the text, but provides a visual way to go through the process. Provide materials for students to make hats, one for each color. (If you have time limitations, you can make them and provide them to each group.) Have the students break into groups of six, making sure each group has each hat represented. Then, using each hat, ask students to solve the problems (from the customer service perspective) listed under examples of service breakdowns on p. 265. A handout for students that describes each of de Bono’s six hats follows this section. For more information about de Bono’s model, visit http://www.mindtools.com/pages/article/newTED_07.htm (LO 7-7 and 7-8) 5. Ask students to get into groups and discuss the reasons for workplace gossip. Then, ask them to discuss in what ways workplace gossip can be harmful. Discuss as a class and make the point that one of the major factors to career success is providing good internal customer service. (LO 7-2)

de Bono’s Six Hats

The White Hat calls for information known or needed. ―The facts, just the facts.‖ Example: The reservation agent may not have added early check-in to reservation. The Green Hat focuses on creativity; the possibilities, alternatives, and new ideas. Use it to generate possible solutions. Example: Offer another room, store bags, pay for lunch, ask housekeeping to make room a priority, upgrade to a suite, put customer in a neighboring hotel.

The Yellow Hat allows you to explore the positives and probe for value and benefit. The yellow hat allows you to see the benefits of the proposed solutions. Example: Customer will be happier.

The Black Hat is judgment—the devil’s advocate or why something may not work. Spot the difficulties and dangers of where things might go wrong. The black hat asks you to look at the negatives of a solution. Example: Customer may still be angry. The Red Hat signifies feelings, hunches, and intuition. When using this hat, you can express emotions and feelings and share fears, likes, and dislikes. This gives people the chance to share their ―gut‖ feelings about the solutions. Example: Customer is tired and cranky from traveling; he or she is frustrated with the reservations department. The Blue Hat is used to manage the thinking process. It makes sure all hats are used and summarizes the information, allowing the group to make a decision.

Example: Offer to store the customer’s bag, buy him lunch in the hotel, and ask housekeeping to work on the customer’s room immediately. Adapted from: The de Bono Group, LLC., http://www.debonogroup.com/six_thinking_hats.php

Ethics in the Workplace The Unlawful Act (LO 7-8) You have been a rookie officer for three months in the town where you grew up. Many of the officers in the department know others who also grew up in the surrounding counties. Some are even related. Following graduation from the police academy, your department requires you to ride with a training officer for one year before going on patrol alone. Your training officer’s father is a captain on the SWAT team. This morning while on patrol, your training officer stopped a car for speeding. Upon doing a routine radio background check, you determined that the driver had an outstanding warrant for domestic assault in a neighboring county. You relayed that information to your partner who was standing by the car. He immediately drew his firearm and commanded the driver to get out of the car. The driver seemed to peacefully comply. As he exited the vehicle, you witnessed your partner call him a profane name and say that he did not like men who bullied women and children and then hit the driver across the face with his gun barrel. After the driver was on the ground, your partner kicked him in the torso several times, then handcuffed and dragged him to the back of the vehicle where he kicked him again. Your department recently issued body cameras and requires them to be on whenever an officer is on duty, but your partner had turned his off prior to the traffic stop. He also knew that your dash camera had been malfunctioning all day. You had suggested taking the vehicle back to get another, but he brushed off the idea and said not to worry about it. You went up where your partner and driver were and helped get the driver into the back of your patrol car. On the way back to the substation, your partner said, ―Can you believe this jerk thought he was going to get away with beating up on a woman? He then said, ―You saw the way he lunged at me when he got out of the car, right?‖ When we get back to the department, you take care of the paperwork and I’ll okay it. What would you do or say at that point? Explain. When you got back to the department, what would you do? Explain What are the ethical issues in this situation? What impact could these issues have on you, your partner, and the organization? Explain. What are potential issues if you fail to accurately report what you saw happen? What are potential issues if you fail to report the incident as you saw it?

Instructor Debrief Notes Police violence has been a theme of news reports for decades. In many cases, officers have been found guilty of illegal and unethical behavior. Unfortunately, such incidents perpetrated by a few tarnishes the reputation of all law enforcement officers and puts them in danger. The training officer is an experienced and trusted member of the department, which is why he is likely in the position to orient newer officers. His behavior is unprofessional, unethical, and illegal. In this situation, there are several issues to consider. The training officer did multiple things that reflect negatively on him, the sheriff’s department, and potentially the rookie:    



He broke the law and assaulted an unarmed citizen without just cause. He violated the trust that the department placed in him as a sworn officer of the law and as a training officer. He intentionally violated departmental policy by turning off his body camera. He placed the rookie officer in a situation where he loses no matter what happens. If he reports the behavior, he could be labeled within the department as someone who is not trustworthy or who does not back up fellow officers, especially in a department in which many officers are friends and family members. Historically, many officers have dealt with similar situations in a variety of local, state, and federal departments. If the rookie does not report the incident, he has to live with that on his conscience. He also likely loses respect for the training officer and potentially the department as a whole. If the event eventually comes to light along with the fact that he knew what happened, but failed to report it, he could be charged as an accessory to assault and fired from his job. He could also face civil penalties for damages by the suspect. The training officer set up the department, himself, and the rookie officer for a potential civil lawsuit if the truth comes out at some point in the future.

Just like any other organization, law enforcement officers must remember that they are in the ―customer‖ business. Some of their customers are good while others are not. In this line of work, it is sometimes easy to lose sight of this fact and start to approach everyone as a potential suspect. Some officers become jaded over time and start to lose trust in people in general. While their job certainly is dangerous and they encounter the worst of the population during any given day, they have to remind themselves that their job is to ―protect and serve.‖

Discussion Opportunities 1. As you read in this chapter, a service breakdown occurs when customer

expectations are not met. As a customer service professional, what are some ways you determine customer service expectations? (LO 7-1) 2. Discuss a type of difficult customer you have had to deal with in your current or past workplace. What strategies did you use to work with the customer? Did the strategies work, and what would you do differently next time? (LO 7-4 and 7-7) 3. What is a customer-focused message in the emotion-reducing model? List five examples of customer-focused messages you can use. (LO 7-5) 4. Are there any places of business you have defected from? What were your reasons? What could the organization have done differently to prevent your defection? (LO 7-6) 5. Have you ever worked with someone who did not have a ―good-neighbor policy‖ as described in this chapter? Describe the situation and what the person should have done differently. (LO 7-2)

In the Real World Notes (p. 263) Retail/Manufacturing—Coca-Cola Coca-Cola is a soft drink brand that is recognized worldwide. The drink is one of the most recognized corporate logos and is sold in over 200 countries through 250 bottlers throughout the world. The Coca-Cola story began in Atlanta, Georgia, in 1886 when pharmacist John Pemberton was experimenting with a recipe that he later mixed with carbonated water and began to sell at his drugstore. Two years after its invention, Pemberton sold his secret formula to a businessman by the name of Asa Candler, who formed a corporation to bottle and distribute the trendy drink. He later sold the rights to two other businessmen who wanted to bottle the drink and enhance distribution. Candler sold syrup that his company produced to these distributors, but not his secret formula. They simply mixed the syrup with carbonated water and bottled it. From there, the product became a household name as more people began to take Coca-Cola home to enjoy. Competitors soon emerged. To ensure that people could tell the original from these wannabes, the distributors created the trademarked contour bottle in 1916 so that customers would recognize the original product. Candler ultimately sold his company in

1919 to a group of investors with Robert Woodruff as the president. The new group wanted to make Coca-Cola available anytime and anyplace. To accomplish this, the new company started adding bottling plants all over the world. Coca-Cola has a long history of promoting its products while giving back to the world. To assist in accomplishing its vision, the company established the Coca-Cola Foundation in 1984. This entity focuses on helping and giving back to communities worldwide. Some of the issues supported in various countries include water stewardship (providing safe, clean drinking water), lifestyle/behavioral change programs (e.g., nutrition, exercise, and behavior modification), recycling, and education. 1. What is your opinion of the Coca-Cola Company? Explain. Student opinions about the company are likely to vary. They would have come across the product on several occasions; however, an in-depth opinion about the company may require the student to peruse the company website and other sources to understand the nature of their activities and growth over the years. 2. Based on what you know or read on the Internet or through other sources, do you believe that the company is customer focused? Why or why not? Answers will vary. Some students may say that the company is customer focused which has resulted in its growth, while others may point at the growth of strong competitors as a sign of weak customer focus. 3. How does the company’s community involvement potentially affect its image in the eyes of customers or potential customers? The company’s community involvement worldwide positively impacts not only those in need, but encourages its customers and potential customers to support the company. For the existing customers, such a move by the company is a reinforcement of their belief in the company and the choice they have made. It also enhances their image in front of those potential customers who relate to such initiatives.

Work It Out Notes Work It Out 7.1—Handling Service Breakdowns (p. 266)

This box asks students, in groups, to determine the best solutions for the service breakdowns listed in Figure 7.1. While it is important to figure out what to do in case these things happen, reiterate to your students that development of good processes and a customer service mentality can prevent these things from happening in the first place. Remind them that even though something may be someone else’s fault, they are the ones who interface with the customer, they will be the ones to hear about it from customers, and they will need to be the ones to fix it. After students are finished discussing in groups, ask them to share their answers with classmates. Work It Out 7.2—Service Breakdown Examples (p. 273) This box asks students to discuss in groups their experience with service breakdowns and resolutions to those breakdowns. This box can create a good discussion on what should be done versus what is actually done. If you have time, extend the group discussions into a whole-class discussion of breakdowns and recoveries. Work It Out 7.3—Handling the Demanding Customer (p. 275) This box asks students to survey customer service professionals in various professions to see how they handle demanding and domineering customers. This will likely create some lively discussion. You can also address how various industries may handle the same types of problems differently. Here you can also discuss the term empowerment and how empowered employees are able to create service recoveries. Work It Out 7.4—Dealing with Angry Customers (p. 278) This box discusses some of the challenges in dealing with angry customers. It asks students to think of situations in which they have had to deal with an angry customer, what they did to reduce tension, and how these situations can be handled successfully. In turn, you can also ask students about situations in which they have been the angry customer and if the situation was handled at an acceptable standard. Work It Out 7.5—Responding to Rudeness (p. 279) This box asks students to brainstorm a list of rude comments that customers can make. While the possibilities can be endless, ask the students to come up with ten and then ask them to rank them from the most offensive to the least offensive. Then, ask your students to brainstorm possible responses. Work It Out 7.6—Building Your Skills (p. 282)

This box asks students to visit a business or store (possibly a mall) and engage in customer service interactions with customers. Then, it asks students to analyze the effective techniques in customer engagement. You can ask students to choose which ones they would like to work on/off of their lists. Finally, ask them to set a goal and specific objectives to focus on to improve these skills. Work It Out 7.7—Focusing on the Customer (p. 288) This box asks students to think about possible customer service strategies that were not included in this chapter. Here, you can point out that some of the simplest strategies are things such as being pleasant and using good manners. Work It Out 7.8—Recovering from Policy Restrictions (p. 303) This box asks students to think about the situation in the gas station example provided in the text. Then in groups, the students should discuss how this situation might be handled. Finally, have students brainstorm what could be done if none of the solutions was acceptable or possible.

End-of-Chapter Material Notes Key Terms              

Angry customer (p. 278) Conflict (p. 289) Customer defection (p. 284) Customer expectations (p. 265) Demanding or domineering customer (p. 274) Difficult customer (p. 273) Disaster preparedness (p. 304) Dissatisfied customer (p. 277) Emotion-reducing model (p. 283) Homesourcing (p. 271) Indecisive customer (p. 276) Needs (p. 265) Problem-solving model (p. 294) Prohibitions (p. 300)

        

Relationship-rating points (p. 285) Relationship-rating point scale (p. 285) Rude or inconsiderate customer (p. 280) Service breakdown (p. 264) Service options (p. 300) Strategies for preventing dissatisfaction (p. 285) Talkative customer (p. 281) Under-promise and over-deliver (p. 279) Wants (p. 265)

Review Questions 1. What does the term service breakdown mean? Service breakdowns are situations when customers have expectations of a certain type or level of product or service that are not met by the service provider. 2. What causes customers to become dissatisfied? Dissatisfaction is all about expectations. If the expectations that the customer has set in his or her mind are not met, the customer will feel dissatisfied. 3. What tactics can you use to deal with angry customers? While dealing with angry customers, service providers should be positive, remain objective, listen actively, and reduce frustration for the customer. Service providers should reassure customers that they will make it work out. 4. What can you do to assist indecisive people in coming to a decision? In order to assist indecisive people in making a decision, the service provider should be patient with them, ask open-ended questions to figure out what they want or need, listen, and suggest other options. Service providers should help guide customers in their decision making. 5. Why might some customers feel they have to demand things from others? It can be part of a person’s personality or simply a behavior that they have learned. Sometimes, remaining in control is a reason for people to be demanding. Insecurity

can be a reason as well. 6. How can you effectively deal with rude or inconsiderate customers? Service providers can deal with rude or inconsiderate customers by making sure that they remain professional. Just because the customer is rude doesn’t mean that the service provider should also be rude. Service providers should avoid retaliation when dealing with rude customers. 7. What are some strategies for refocusing a talkative customer? Some strategies for refocusing a talkative customer are remaining warm and cordial but focused on the task at hand; using specific open-ended questions; using closedended questions to control the situation; managing the conversation; and ending the interaction when necessary, so you can work with the next customer. 8. What are some strategies for preventing customer dissatisfaction? List them. The strategies for preventing customer dissatisfaction include thinking like the customer, pampering the customer, respecting them, and always going above and beyond to exceed their expectations, etc. 9. How does the emotion-reducing model work? First, the service providers should greet the customer with a customer-focused message and then let the customer explain the issue (emotional issue). Service providers can offer statements such as ―I understand‖ or ―I see.‖ They should use positive reinforcement and communication throughout the interaction. Service providers should solve the problem and then provide another customer-focused message. 10. Why do customers defect? Customers defect when they feel that their needs or wants are not being met, or if they encounter a breakdown in customer service or inferior products. 11. What strategies can you use to build strong relationships with coworkers? Strategies that can be used to build strong relationships with coworkers include keeping the noise down in your workspace, maintaining good grooming habits, not

unloading personal problems, avoiding gossip and politics, pitching in, being helpful, and being honest. 12. List the strategies for effective problem solving. Service providers should use the problem-solving model, which is a series of steps to follow when dealing with a problem. First, service providers should make sure that they properly identify the problem. Next, service providers should compile and analyze the data, identify alternatives, evaluate alternatives, and make a decision. Then, they should monitor the results and make changes as necessary. 13. What is service recovery and when do you need to implement it? Service recovery is the process of making things right after a service breakdown has occurred. Service providers should offer a sincere apology, take immediate action, and suggest other options. They should offer alternatives without the customer having to ask, and make sure to follow up in order to find out whether the recovery efforts were successful.

Collaborative Learning Activities 1. This activity asks students to role-play with each other on how to handle a variety of customer service situations. Consider asking one or two students to role-play for the entire class while the class addresses the questions in the activity: 1. How well was service provided? 2. Were any negative or unclear messages, verbal or nonverbal, communicated? If so, discuss. 3. How can you incorporate the improvements you have identified into a real customer service encounter? 4. What open-ended questions were used to discover customer needs? What others could have been used? 2. This activity asks students to deal with generational differences as a service provider. In equal-sized groups, students should use the generational value lists that they compiled while completing the Search It Out activity to discuss what possible conflicts might occur between customers and service providers who come from different generational groups. 1. What role do the perceptions of these two people play in breakdowns between generations? 2. How do those perceptions originate and how might they be avoided?

3. Once students have identified potential breakdowns, discuss what they might do as a service provider to prevent them. 4. If a breakdown does occur, how should they handle it? 3. Generational differences can present challenges such as communication and relationship breakdowns. Students in groups should brainstorm examples of ways that younger service providers (under 21 years old) and older service providers (over 21 years old) can create challenges when interacting with one another. Group challenges using the following categories: younger service providers dealing with older customers, older service providers dealing with younger customers, younger customers interacting with older service providers, and older customers interacting with younger service providers. Students should discuss strategies for avoiding breakdowns in each category. Use the strategy lists to avoid problems when interacting with different age groups.

Face-to-Face—Handling Service Breakdowns at AAA Landscaping Recently, you went to the home of Stu Murphy to bid on re-sodding his lawn. He obtained several other bids, but yours was the lowest. You arranged for work to begin to remove old grass and replace it with the St. Augustine grass sod that he requested. As part of the contract, Stu also asked that some basic maintenance be done (e.g., hedge and tree trimming, hauling away of old decorative wooden logs from around flower beds, and general sprucing up of the front area of the house). In addition, fertilizer and pesticide were to be applied within two weeks. Stu signed the contract on Friday (June 18) and the work was to be completed before Saturday (July 4), when he had planned a party. The work started on time, but on (June 29) Stu called and stated that some of the work was not finished to his satisfaction, and two bags of clippings have been left behind. By (July 3), Stu angrily called about the unfinished work and 40 guests coming to a party the next day (July 4). 1. Based on information in this chapter, how have you done on providing service to Stu? Explain. Stu did not receive good service. He signed a contract and expected the work to be completed satisfactorily and on time without having to call several times about unmet aspects of the contract. Stu should not have had to make calls about incomplete work, and he should have received answers to his calls. AAA Landscaping did not provide very good service. 2. What were Stu’s needs in this case?

His needs were clearly stipulated in the contract, but you did not fulfill the obligation or meet his needs. After several calls on Stu’s part, the work was completed yet after all the problems, the landscaping company never called Stu at the completion of the project. They assumed Stu was satisfied because they heard nothing else from him. 3. Could you have done anything differently? First, finishing one job before starting another makes good business sense and you did not do this. Trying to balance too many jobs at once will likely make all jobs mediocre at best. Second, when you realized the work would not be done on time, the customer should have been notified immediately. 4. Should you follow up with Stu? Why or why not? Yes, you should have followed up with Stu. He was already irritated that he had to make several calls to get his job completed. A follow-up call should have occurred to make sure customer needs were met. 5. If you plan to follow up with Stu, will you do it in person or on the telephone and what will you say? Explain your logic. It is doubtful that you will get a good recommendation from this person or that he will pass on business to you. You had an opportunity for service recovery but did not meet the expectations of the customer; however, an in-person visit or, at the very least, a call is necessary to minimize the damage.

Chapter 8 Customer Service in a Diverse World Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 4 Class Activities and Sample Assignments..................................................................... 21 Discussion Opportunities .............................................................................................. 26

In the Real World Notes ................................................................................................ 26 Restaurant Franchise—Chipotle Mexican Grill ........................................................... 26 Work It Out Notes .......................................................................................................... 28 Work It Out 8.1—Encountering Diversity ..................................................................... 28 Work It Out 8.2—Identifying Resources ...................................................................... 28 Work It Out 8.3—Serving a Variety of Customers ....................................................... 28 End-of-Chapter Material Notes ...................................................................................... 28 Key Terms.................................................................................................................. 28 Review Questions ...................................................................................................... 30 Collaborative Learning Activity ................................................................................... 32 Face-to-Face—Helping Difficult People on the Phone at MedMobile.......................... 32

Learning Objectives LO 8-1 Recognize that diversity is not a bad thing. LO 8-2 Describe some of the characteristics that make people unique. LO 8-3 Embrace the need to treat customers as individuals. LO 8-4 Determine actions for dealing with various types of people. LO 8-5 Identify a variety of factors that make people diverse and that help to better serve them. LO 8-6 Communicate effectively with a diverse customer population.

Brief Chapter Outline I. The Impact of Diversity II. Defining Diversity III. Customer Awareness IV. The Impact of Cultural Values A. Modesty 1. Impact on Service B. Expectations of Privacy 1. Impact on Service C. Forms of Address 1. Impact on Service D. Respect for Elders 1. Impact on Service E. Importance of Relationships 1. Impact on Service F. Gender Roles 1. Impact on Service G. Attitude toward Conflict 1. Impact on Service H. The Concept of Time 1. Impact on Service I. Ownership of Property 1. Impact on Service V. Providing Quality Service to Diverse Customer Groups A. Customers with Language Differences 1. Let Your Customer Guide the Conversation 2. Be Flexible 3. Listen Patiently

4. Speak Clearly and Slowly 5. Speak at a Normal Volume and Tone 6. Use Open-Ended Questions 7. Pause Frequently 8. Use Standard English (or whatever the primary language is for the country in which you are doing business) 9. Use Globally Understood References 10. Be Conscious of Nonverbal Cues 11. Paraphrase the Customer’s Message 12. Try Writing Your Message 13. Try a Different Language 14. Avoid Humor and Sarcasm 15. Look for Positive Options 16. Use Questions Carefully 17. Use a Step-by-Step Approach 18. Keep Your Message Brief 19. Check Frequently for Understanding 20. Keep Smiling B. Customers with Disabilities 1. Customers with Hearing Disabilities 2. Customers with Vision Disabilities 3. Customers with Mobility or Motion Impairments C. Elderly Customers 1. Be Respectful 2. Be Patient 3. Answer Questions 4. Try Not to Sound Patronizing 5. Remain Professional 6. Guard against Biases D. Younger Customers VI. Communicating with Diverse Customers 1. Be Careful with Your Remarks and Jokes 2. Make Sure That Your Language Is ―Inclusive‖ 3. Respect Personal Preferences When Addressing People 4. Use General Terms 5. Recognize the Impact of Words 6. Use Care with Nonverbal Cues

Chapter Outline and Lecture Notes I. The Impact of Diversity   

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Diversity refers to the characteristics, values, beliefs, and factors that make people different, yet similar. Diversity is encountered everywhere and is an important aspect of everyone’s life. One significant impact that diversity has on customer service is that people from varied backgrounds and cultures bring with them expectations based on the ―norm‖ of their country or group. Part of creating a positive diverse customer business environment is to train each service provider on the nuances of dealing with people who have backgrounds that are different from their own.

II. Defining Diversity  

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The word diversity encompasses a broad range of differences. Many people only associate the term diversity with race or color of skin; however, it also encompasses a variety of other characteristics such as cultural diversity—the different racial, ethnic, and socioeconomic varieties, based on factors such as values, beliefs, and experiences, that are present in people grouped together in a given situation, group, or organization. To better ensure service success, service providers should find out what customers want and treat them as they want to be treated. o This concept has been termed the Platinum Rule. Diversity is not a simple matter, yet it is not difficult to deal with. o Service providers could start their journey to better understanding of diversity by being fair to people and keeping an open mind when interacting with them. Some factors that make people different are innate, that is, they are born with them, such as height, weight, hair color, gender, skin color, etc. o Other factors that make people unique are learned or gained through our environment and our life experiences  Examples of these factors include religion, values, beliefs, economic level, lifestyle choices, etc.

III. Customer Awareness 

No two people are alike, no two generations are alike, and no two cultures are



alike. o In addition, each customer has needs based on his or her own perceptions and situation. In today’s highly mobile, technologically connected world, it is not unusual to encounter a wide variety of people with differing backgrounds, experiences, religions, modes of dress, values, and beliefs within the course of a single day. o Many of these factors can affect customer needs, wants, and expectations and potentially create situations in which service providers must be alert to the verbal and nonverbal messages that indicate those needs. By better understanding other cultures and contexts, service providers have a prime opportunity for building a solid customer–provider relationship.

IV. The Impact of Cultural Values 

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 

Although many cultures have similar values and beliefs, specific cultural values are often taught to members of particular groups starting at a very young age. o This does not mean that a particular group’s values and beliefs are better or worse than those of any other culture; they are simply important to that particular group. Values often dictate which behaviors and practices are acceptable or unacceptable. o They may or may not have a direct bearing on serving the customer, but they can have a very powerful influence on what the customer wants, needs, thinks is important, and is willing to seek or accept. From a customer service perspective, values often strongly drive customer needs and influence the buying decision. Values are based on the deeply held beliefs of a culture or subculture. o These beliefs might be founded in religion, politics, or group mores. A. Modesty    

Modesty refers to the way that cultures view propriety of dress and conduct. In some cultures (e.g., Muslim and Quaker), conservative dress by women is one manifestation of modesty. In some cultures, women demonstrate modesty and a dedication to traditional beliefs by wearing a veil or headdress. In other cultures, nonverbal communication cues send messages. o For example, direct eye contact is viewed as an effective communication approach in many Westernized cultures, and lack of eye contact could suggest dishonesty or lack of confidence to a Westerner.

o o

In some cultures, direct eye contact is considered disrespectful or rude. Often a sense of modesty is instilled into people at an early age (more so in females).  This value may be demonstrated by covering the mouth or part of the face with an open hand when laughing or speaking, or through avoiding direct eye contact in certain situations. Another way that service providers might offend someone’s modesty is through their environment.  For example, if a service provider has a waiting room that has magazines that show scantily clad models or a television or radio station broadcasting for customers that contains sexual situations or racy talk show hosts, the service providers should rethink the situation to potentially avoid offense to some customers.

1. Impact on Service 

When encountering examples of modest behavior, service providers should evaluate the situation for the true message being delivered. o The person may really be exhibiting suspicious behavior. o However, instead of assuming that the customer is being evasive or dishonest, service providers should consider the possible impact of culture as part of their assessment of the situation.

B. Expectations of Privacy 

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Based on one’s personality and prior life experiences, a person may be more or less likely to disclose personal information, especially to people not known well. Disclosing personal information about oneself is often a cultural factor and the expectations of privacy—the belief that personal information provided to an organization will be safeguarded against inappropriate or unauthorized use or dissemination—vary. 1. Impact on Service 

Service providers who tend to be gregarious and speak freely about virtually any topic should curtail this tendency in the customer service environment. o Failure to do so could make some customers feel uneasy and uncomfortable.

Their discomfort may result from the fact that if the service provider is conducting business in a Western culture, when someone asks a question or shares information, there is often an expectation that the other party will reciprocate. A good rule of thumb is to stay focused on the business of serving the customers in an expeditious and professional manner. Service providers should keep ―small talk‖ under control and watch customer reactions closely. o They should avoid controversial topics that might be emotional hot buttons or sensitive to other people (e.g., politics, religion, other customers, etc.). o

 

C. Forms of Address 

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 

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If a service provider from the United States doing business in another country fails to greet the customer appropriately (e.g., with a slight bow, sign of the wai, namaste, or other traditional greeting) or called customers from a more formal culture by their first name without their permission, the service provider might possibly irritate or anger them. When meeting someone from another culture who has not been acculturated yet, service providers might greet the customer according to his or her cultural background. To further confuse the issue of how to address a customer, some cultures have differing rules on how family names are listed and used. For example, when addressing someone from the Chinese culture, service providers should use an appropriate title such as Mr. or Mrs. followed by the family name (Mrs. Li) unless they are asked to use a different form of address. Many service providers from other cultures who move to a Westernized culture often adopt a Western first name (e.g., Amanda or Richard) when they immigrate to, or work with, people from that culture. o This makes it easier for their customers and coworkers to pronounce their names. In Argentina (and most Hispanic, Chicano, and Latino cultures), people have two surnames—one from their father (listed first) and one from their mother (e.g., Jose Ricardo Gutierrez (father’s surname) Martinez (mother’s surname). o Usually when addressing the person, service providers should use a title only with the father’s surname (e.g., Mr. or Mrs. Gutierrez).

1. Impact on Service 



A customer’s preference for a particular name or form of address can have an impact upon a service provider’s ability to effectively deal with him or her. Informality or improper use of family names could send a message of lack of knowledge or concern for the customer as an individual.

D. Respect for Elders 

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In most cultures, some level of respect is paid to older people. o Often this respect for elders is focused more on males (when older men are viewed as revered, as among Chinese). This arises from a belief that with age come knowledge, experience, wisdom, authority, and, often, higher status. 1. Impact on Service 

Service providers must be careful to pay appropriate respect when speaking to older customers (of both sexes). o Further, they should be sensitive to the fact that if the customer demands to speak to a senior person or to the manager or owner, he or she may simply be exhibiting a customary, generational expectation.

E. Importance of Relationships 

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In many Asian, Latin American, and Middle Eastern cultures, the building of a strong interpersonal relationship is extremely important before business is conducted. o For example, in China, Egypt, El Salvador, Indonesia, Korea, Japan, and Myanmar, it is not unusual to have a number of meetings with people in an organization before coming to an agreement. o Lunch, dinner, and office meetings may occur for weeks before an agreement is reached. Related to relationships is the concept of ―face‖ (sense of dignity or selfesteem) that is important in some Asian cultures (e.g. Chinese and Japanese). 1. Impact on Service

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 

Failure to establish support or an environment of trust could lead to a breakdown in service and/or lost customers. o This does not mean that service providers should hesitate to assume a quicker familiarity with customers from such cultures. When service providers have an ongoing contact or do repeat business, they should follow the customer’s lead. Service providers should familiarize themselves with cultural manners and etiquette for the customer’s country before meeting in order to avoid cultural taboos.

F. Gender Roles 

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Although gender roles are continually evolving throughout the world, decision making and authority are often clearly established as male prerogatives within many cultures, subcultures, or families. o For example, in many Middle Eastern, Asian, South American, and European countries, women have often not gained the respect or credibility in the business environment that they have achieved in many parts of North America. In some countries it is not unusual for women to be expected to take a ―seen and not heard‖ role or to remain out of business transactions. o Service providers do not have to agree with these practices, but they will need to take them into consideration when facing them in some customer encounters. When serving customers from different countries, service providers would do well to remember that people may leave a country, but they take their cultural norms and values with them. 1. Impact on service 

Generally, people who have lived or worked in Western cultures for longer periods will acculturate and not take offense to more direct behaviors that are meant to convey friendliness and to engage customers (e.g., smiling, engaging in small talk about families, etc.).

G. Attitude toward Conflict 

Conflict is possible when two people come together in a customer environment, but it does not have to happen.

By recognizing their own biases and preferences, and being familiar with other cultures, service providers can reduce the potential for disagreement. Many times, attitudes—emotional responses to people, ideas, and objects— toward conflict are rooted in the individual’s culture or subculture or based on personal behavioral style preference. Some cultures are individualistic cultures (emphasis is placed on the individual’s goals), and some are collective cultures (individuals are viewed as part of a group). o Members of individualistic cultures are likely to take a direct approach to conflict, whereas people whose culture is collective may address conflict indirectly, using an informal mediator in an effort to prevent loss of face or embarrassment for those involved. Regardless of culture or group, people choose different conflict resolution styles based on personality style preferences. o

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1. Impact on Service  

Depending on the individuals encountered and their cultural background, service providers and their customers may deal differently with conflict. The key is to listen and remain calm, especially if the customer becomes agitated.

H. The Concept of Time 

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In relation to time, people and societies are often referred to as being either monochronic or polychronic. o People from monochronic societies tend to do one thing at a time, take time commitments seriously, are often focused on short-term projects or relationships, and adhere closely to plans. o Polychronic people are used to distractions, juggle multiple things without feeling stressed, consider time as a guide and flexible commodity, work toward long-term deadlines, and view relationships as more important than deadlines. People from the United States are typically very time-conscious (monochronic). Figure 8.2 lists countries according to their concept of time—term used to describe how certain societies view time as either polychronic of monochronic.

1. Impact on Service 

In Western and other monochronic cultures, service providers are expected to be punctual. o They must observe time rules in order to project an appropriate image and to satisfy the needs of their customers and organization.

I. Ownership of Property 

In many cultures, (e.g., Buddhist, certain African tribes, and the Chickasaw Indian Nation), ownership of property, or accumulation of worldly goods or wealth, is frowned upon. 1. Impact on Service  

People have differing levels of needs. Service providers should ask customers what their needs are and listen to their responses.

V. Providing Quality Service to Diverse Customer Groups 

Given the potential diversity of a customer base, it may be impossible to establish a service strategy for each group. o However, service providers should think of what they might do to address the needs of some of the larger categories of customers with whom they will probably come into contact. A. Customers with Language Differences 

 

One major obstacle for service providers in the United States is that many adults believe that most of the world’s population speaks English. o English is the most spoken language in the world with 1.13 billion people who speak it. Bureau of Labor Statistics figures estimate that 17 percent) of the U.S. workforce are foreign-born people. The key to effectively serving all customers, and particularly people from different cultures, is flexibility. o For example, service providers might identify people in their organization who speak languages other than English so that they can call upon them, if necessary.

1. Let Your Customer Guide the Conversation  

When possible, service providers should let their customer take the lead in guiding the service interaction. Some customers may want to spend time getting to know the service provider, others may take a rigid or formal approach and get right down to business by taking the lead, and still others may choose to have someone else act as a mediator or an intermediary.

2. Be Flexible 

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Communicating with people from other cultures who do not speak a common language fluently can be frustrating and complicated. o Even if service providers do not understand the customers’ culture or language, using positive listening, nonverbal, and verbal techniques can help. Part of being flexible is recognizing that one’s own views are not the way of the world. o Making the mistake of believing that everyone has the same experiences and sees things in the same way can lead to communication and relationship breakdown.

3. Listen Patiently 

Service providers should focus on what the customer is saying and try to understand the meaning of the message and the needs being communicated by the customer.

4. Speak Clearly and Slowly 

The key to successful customer service is for the service provider to speak at a rate slow enough to allow customers to understand without being insulting.

5. Speak at a Normal Volume and Tone  

A customer who is unable to speak a service provider’s language is not necessarily deaf. A service provider may naturally raise his or her voice if a customer

cannot speak the language, but in doing so may offend the customer. The customer may also think that the service provider is hard of hearing and, in turn, raise his or her voice. o This is not an effective way to communicate or provide effective customer service. 6. Use Open-Ended Questions 

Open-ended questions encourage customers to share information. o On the other hand, closed-ended questions do not allow service providers to accurately gauge a customer’s viewpoint or understanding.

7. Pause Frequently 

Pausing allows customers to translate what service providers have said into their language, comprehend, and then respond in the service providers’ language or ask questions.

8. Use Standard English (or whatever the primary language is for the country in which you are doing business)  

Avoid technical terms specific to a product, organization, process, or industry; contractions; slang; or broken language. It is helpful to recognize that some people understand a language though they may not be able to speak it well.

9. Use Globally Understood References  

To reduce the risk of misunderstandings by people who speak a language as a second language, stick with basic verbiage. Service providers should avoid jokes, words, metaphors, or similes that are uniquely tied to sports or historical events from their country or culture.

10. Be Conscious of Nonverbal Cues 

Service providers should continually monitor nonverbal reactions as they converse with a customer. o If they sense confusion or lack of comprehension, the customer

service provider should stop and try to reestablish a bond. 11. Paraphrase the Customer’s Message 

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After focusing on what they think is the customer’s message, service providers may convey their understanding to the customer in their own words. When service providers think that they don’t understand, they should either paraphrase the part of the customer’s message up to the point at which they did understand or ask clarifying questions.

12. Try Writing Your Message 

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If a customer seems to be having trouble understanding what a service provider is saying, the service provider should try printing the message (legibly) to see if the customer can understand its meaning. Service providers might even try using recognizable symbols, if appropriate.

13. Try a Different Language 

If service providers speak a second language, they should try using it. o Their non-native-language-speaking customers may understand, since many countries require students to learn multiple languages in school.

14. Avoid Humor and Sarcasm 

Humor and sarcasm are common to many Westerners but do not work well with customers whose first language is not English. o They could lead to customer confusion and embarrassment.

15. Look for Positive Options 

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Many North Americans tend to use an abrupt no in response to a request they cannot fulfill. o This behavior is viewed as rude, arrogant, and closed-minded in many cultures. In many cases, the response no in a conversation may cause a person embarrassment or loss of personal sense of honor, worth, or self-esteem.

16. Use Questions Carefully 

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Service providers should watch their customer’s nonverbal responses so that they will be able to gauge the customer’s reactions to their questions. In some cultures, people believe that questioning someone is intrusive, and they therefore avoid it.

17. Use a Step-by-Step Approach 

When explaining something, service providers should outline exactly what they will do or what will be expected of the customer. o Service providers should write this information down for the customer’s future reference in order to prevent misunderstandings.

18. Keep Your Message Brief 

Service providers should avoid lengthy explanations or details that might frustrate or confuse their customer. o They should use simple one-syllable words and short sentences.

19. Check Frequently for Understanding 

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In addition to using short words and sentences, service providers should pause often to verify the customer’s understanding of their message before continuing. Service providers should avoid questions such as ―Do you understand?‖ o Not only can this be answered with a ―yes‖ or ―no,‖ but it can also offend someone who speaks and understands English reasonably well. o Instead, try tie-in questions such as ―How do you think you will use this?‖ or others that will give you an indication of whether the customer understands the information you have provided.

20. Keep Smiling 

Smiling is a universal language; service providers should speak it fluently (when appropriate).

B. Customers with Disabilities 

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According to the U.S. Center for Disease Control and Prevention, 61 million or 26 percent of adults in the United States have some type of disability. o This is not just an issue in the United States. Service providers will certainly encounter people in the workplace who have a disability and that may require their assistance in serving them. Some service professionals are uncomfortable working with customers with disabilities for various reasons. Even though service providers may be unfamiliar with how people with disabilities adapt to life experiences, they should strive to provide excellent service to them. To be effective in dealing with customers in the United States, service providers must be aware of the Americans with Disabilities Act of 1990 (ADA), the ADA Amendments Act of 2008, and other legislation passed by Congress to protect individuals and groups. 1. Customers with Hearing Disabilities  

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Hearing loss is common as people age or because of a medical condition and can be a real challenge in service environments. In interactions with customers who have hearing disabilities, service providers can do a variety of things to provide effective service: o Face the customer directly when speaking. o Speak louder. o Provide written information and instructions where appropriate and possible. o Use pictures, objects, diagrams, or other such items to communicate more clearly, if appropriate. o To get the person’s attention, use nonverbal cues such as gesturing. o Enunciate your words and speak slowly. o Check for understanding frequently by using open-ended questions o Reduce background noise, if possible. If service providers serve customers over the telephone or Internet, they may find themselves interacting with a Telecommunications Relay Service (TRS), also called relay service, relay operator, and IP-relay. o Through such services, specially trained operators act as intermediaries between people who are deaf, hard-of-hearing, speech disabled, or deaf and blind and standard telephone users.

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Real-Time IM Relay for Customers with Hearing and Speech Loss services are now available to assist people with hearing loss. o This technology supplements the previous relay services (telecommunications device for the deaf [TDD] or telephone typewriter [TTY]) and is used by people who do not have access to affordable Internet technology. o This is a real-time instant messaging system offered exclusively by AT&T at no cost to people who sign up for AT&T’s Relay Service.

2. Customers with Vision Disabilities   

Many people experience vision loss because of medical conditions or as a result of the aging process. Customers with vision disabilities may need special assistance, but they are not helpless. The following are some strategies that service providers can use to potentially improve the quality and level of service: o Talk to a visually impaired person the same way they would talk to anyone else. o They do not have to raise their voice; the person is visually impaired, not hard of hearing. o They should not feel embarrassed or change their vocabulary. For example, it is okay to say things like ―Do you see my point?‖ o They should speak directly to the customer. o They should speak to the person as he or she enters the room or approach the person so that he or she knows where they are. o When walking with someone who is blind, offer your arm; never take the person’s arm without permission.

3. Customers with Mobility or Motion Impairments 

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The term ―mobility impairment‖ typically refers to disabilities that impact someone’s ability to move without assistance, manipulate objects, and interact with the physical world. Customers who have mobility or motion impairments often use specially designed equipment; have had extensive training in how to best use assistive devices to compensate for the loss of the use of some part of their body. The following are some strategies for better serving customers with mobility or motion impairments:

o o o

Prior to a situation in which a service provider may have to accommodate someone who uses a walker, wheelchair, crutches, or other device, they should do an environmental survey of the workplace.  Note areas where space is inadequate to permit mobility or where hazards exist. Do not assume that someone who has an impairment cannot perform certain tasks. Make sure to place information or materials at a level that makes it possible for the person to see without undue strain. Do not push or lean on someone’s wheelchair without his or her permission.

C. Elderly Customers  

 

Being older does not make a person or a customer less valuable. Many older customers are in excellent physical and mental shape, are still employed, and have more time to be active now than when they were younger. As the baby boomer population (people born between 1946 and 1964) ages, there are a greater number of older Americans than ever. An aging population will have a greater need for services—and service providers—to care for people and allow them to enjoy a good quality of life. 1. Be Respectful  

Service providers should be respectful to elderly customers. Even if the customer seems a bit arrogant, disoriented, or disrespectful, service providers should not lose their professionalism.

2. Be Patient  

Service providers should allow older customers the time to look around, respond, react, or ask questions. Service providers should keep in mind that as some people age, their ability to process information lessens and their attention span becomes shorter—do not assume this is true of all older customers.

3. Answer Questions

 

Providing information to customers is crucial in order to help them make reasonable decisions. If it appears that the customer has misunderstood, service providers should try repeating the information, possibly using slightly different words.

4. Try Not to Sound Patronizing  

If service providers appear to talk down to older customers, problems could arise and they could lose a customer. A condescending attitude will often cause customers, elderly or otherwise, to take their business elsewhere.

5. Remain Professional  

Common courtesy and professionalism should always be extended to customers without regard for their age. Words such as please, thank you, yes sir/ma’am, and other such pleasantries can go a long way in building customer–provider relationships.

6. Guard against Biases 

Be careful not to let biases about older people interfere with good service. o Do not ignore or offend older customers by making statements like ―Hang on, old timer. I’ll be with you in a minute.‖

D. Younger Customers  



Some of the terms describing the ―younger generation‖ are Generation Y, Nexters, MTV generation, Millennial Generation, or cyber kids. Financially, both Gen Y and Z account for billions of dollars in business revenue for products such as clothes, music, videos, electronic entertainment equipment, and entertainment consumption. Service providers who are Gen Xers may potentially treat members of this generation as they would treat their own children. o Service providers should be careful not to do this or to come across as domineering or controlling since this will likely irritate the customer(s). A service provider who is a baby boomer or older may feel paternalistic or

 



maternalistic or might believe some of the stereotypical rhetoric about this group. o Although some of these descriptions may be accurate for some members of the group, it is dangerous to pigeonhole any group or individual. Their memories could prompt younger customers to take their business elsewhere if their experience with a service provider is negative. Older service providers may be tempted to talk down to the younger customers or be flippant. o Service providers should not give in to the temptation. Younger customers may not have the product knowledge and sophistication in communicating that an older customer might have. o Service providers can decrease confusion and increase communication effectiveness by using words that are appropriate for their age group and by taking the time to explain and/or demonstrate technical points.

VI. Communicating with Diverse Customers 

Service providers should learn as much technology as they can if they plan to effectively provide service to members of Generations X and Y, since they are very technically savvy. o Technology examples include smartphones, iPads, computer hardware and software, Internet options and services, social media, and service delivery technology such as wikis, blogs (web logs), videoconferencing, and podcasts. 1. Be Careful with Your Remarks and Jokes 

Comments that focus on any aspect of diversity (religion, sexual preference, etc.) can be offensive and should not be made. o Also, humor does not cross cultural boundaries well.

2. Make Sure That Your language Is ―Inclusive‖  

When speaking, service providers should address or refer to the people from various groups that are present. If service providers are addressing a group of two men and one woman, using the term guys or fellows excludes the woman and thus is not inclusive—the concept of ensuring that people of all races, genders, and religious and ethnic backgrounds, as well as a multitude of other diverse

factors, are included in communications and activities in the workplace. 3. Respect Personal Preferences When Addressing People 

Service providers should not assume familiarity when addressing others. o They should not call someone by first name unless given permission.

4. Use General Terms  

Instead of singling a customer out or focusing on exceptions in a group, service providers should describe people in general terms. Instead of referring to someone as a female supervisor, black salesperson, or disabled administrative assistant, service providers should say supervisor, salesperson, or administrative assistant.

5. Recognize the Impact of Words  

Service providers should remember that certain words have a negative connotation and could insult or offend. Using such words can reflect negatively upon both the service provider and organization and should never be used.

6. Use Care with Nonverbal Cues  

The nonverbal cues that service providers are familiar with may carry different meanings in other cultures. Service providers should be careful when they use symbols or gestures if they are not certain how their customer will receive them.

Class Activities and Sample Assignments 6. Read chapter eight. (LO 8-1 through 8-6) 7. If you have time, it is a good idea to ―experience‖ what it feels like to have a disability in order to better help students understand. Purchase earplugs, blindfolds (pieces of fabric), and pebbles. Have the students split into groups of two. Give each group a set of earplugs, a blindfold, and a handful of pebbles. Then ask them to do the following: (LO 8-5)

a. While sitting four feet apart from one another, have one student in the pair put in the earplugs. The other student should tell the student wearing the earplugs what they did last weekend. Then, have the students take turns wearing the earplugs. Once they are finished, ask the students to discuss what it felt like to not be able to hear. b. Ask students to put pebbles in their shoes and walk a set distance or for a set period of time with the pebbles in their shoes. (Choose based on your area limitations.) When they come back, ask them to talk about how it felt to be elderly. c. Have one person blindfold the other. Ask them to walk around campus, for a set period of time, blindfolded and completely dependent on their partner. Then have the students trade places. When they come back, ask them to discuss the experience. 8. Learning disabilities, although not discussed extensively in this chapter, can present a challenge in customer service situations. If a person cannot read the manual, or sign a receipt, they may need help. The customer service representative can’t always recognize this at first, but if a person asks many questions and doesn’t seem as if he or she is actually reading something, this person may have some learning disabilities. Following the activities are some examples of what a ―normal‖ paragraphi might look like to someone with a learning disability. Show each one to students and discuss how it feels to try to read it. (LO 8-5) 9. Ask students to discuss their own experiences with diversity in small groups. Then ask them to discuss in what ways THEY are diverse and may be different from someone else. Note: this can be a pretty personal activity, so it might be best to use only if you have a group of students who seem to know each other and are comfortable with discussion. (LO 8-1 through 8-6) 10. This can be used as an introductory activity to the concept of diversity. Ask two students to come to the front and have them stand back-to-back. Ask students to point out differences between the two people (but remind them to be kind). They will likely shout out the obvious differences (e.g., one has on a green shirt and the other has on a purple shirt). When each difference is shouted out, ask the two students to take a step forward. Once they are nearing the outer limits of the room, ask the class to stop shouting out differences. Then have the students face each other, still on opposite sides of the room, and have the class shout out similarities between the two students. As they do, the students should take a step forward. This can be used to define diversity (the differences between people) but also to make the point that some differences, such as values or religion, may not be obvious, so we have to be

careful in making assumptions when we are providing customer service. (LO 8-1 through 8-2)

Discussion Opportunities 1. To introduce the chapter, ask students to work in groups to brainstorm a list of what attributes or characteristics would be considered ―diversity.‖ (LO 8-1) 2. Why is it inappropriate to use words such as ―homo‖ even in a joking manner? Describe. (LO 8-4 through 8-6) 3. In groups, brainstorm five non-inclusive words or phrases that are common in our society. For example, the term mailman as opposed to mail carrier. (LO 8-6) 4. What assumptions do we sometimes make about elderly people that are likely incorrect or a stereotype? Brainstorm a list. (LO 8-5) 5. Do you think younger customers are often stereotyped? In what way? How might serving an elderly person be different than serving a young person? (LO 8-2 , 8-3 and 8-5)

In the Real World Notes (p. 313) Restaurant Franchise—Chipotle Mexican Grill Chipotle is the only restaurant of its size that owns and operates its restaurants. Since its beginning in Denver, Colorado, in 1993 by Steve Ells, he has sought to change the way food is prepared and served. According to its website, the company was one of the first national restaurant brands to use local and organic produce and responsibly raised meats. They do not use artificial flavors, colors, preservatives, or hormones; nor do they freeze, microwave, or get products from cans. Food components are locally sourced and prepared. The organization is committed to helping protect the planet. It diverts 50 percent of its waste from landfills through programs like one that recycles plastic gloves to bags in 42 percent of its restaurants. In addition to focusing on providing nutritious quality food, Chipotle provides a supportive environment in which people of diverse backgrounds come together in a family-type work environment. Some of the perks of working at Chipotle include free food, quarterly bonuses, an opportunity to learn transferrable culinary skills, and a debtfree college degree.

To further its mission of ―providing food for all,‖ the company created the Chipotle Cultivate Foundation which provides mentorship and helps fund refugees who have been granted sanctuary In the United States. Those with agrarian and fishing backgrounds can receive grants to reestablish their lives while becoming entrepreneurs who grow affordable produce in their new communities. There is also a program to develop curricula that encourage young people in Dallas, Atlanta, Seattle, and Oakland to become environmentally conscious growers and consumers. . 1. Do you have personal experience with Chipotle as either a customer or employee? If so, describe your impressions of the organization (e.g., positive or negative) and explain why you feel this way. Answers may vary. Students who have no personal experience as an employee may refer to its use of locally sourced produce and the fresh and natural ingredients Chipotle uses in its foods, or they may discuss its environmental efforts. Some students may mention Chipotle’s past issues with foodborne illnesses. Students should be able to support reasons for their rating. 2. How does this organization differ from other successful restaurants of which you are aware? Answers may vary. Students may discuss its mission of ―providing food for all.‖ They may also focus on how Chipotle sources its ingredients, how it tries to protect the planet, or how it provides opportunities for refugees who have been granted sanctuary in the U.S. 3.

As a current or potential customer, what do you think the company might do to improve customer service and satisfaction? Answers may vary, but students should be able to support reasons for their ratings.

Do you think that the organization lives up to its values? Why or why not? Answers may vary, but students should be able to support reasons for their ratings.

5. Would you want to work for this company? Why or why not? Students should be able to justify their choice.

Work It Out Notes Work It Out 8.1—Encountering Diversity (p. 316) This activity asks students to think about the diverse interactions they have had over the last week. It is likely that their lists will be long, but in some ways they may not have thought about the interactions as ―diversity.‖ It is important to point out that this thinking can get us into trouble, because if we don’t recognize the diversity, we may act and communicate based on our values and offend the other person if their values are different. Work It Out 8.2—Identifying Resources (p. 341) This activity asks students to check with local advocacy groups or on the Internet for information on the types of accommodations they might make for people with various disabilities and how best to interact with people who have specific disabilities. If you teach a hybrid or online class, this is a good weekly assignment. To get more specific, you may ask students to do the research and provide five things that surprised them from the research they performed. Consider using your online class discussion board for this assignment. Examples of websites might be the following:  http://www.draginc.com/  http://www.napas.org/  http://www.access-board.gov/index.php Work It Out 8.3—Serving a Variety of Customers (p. 344) This activity asks students to role-play three scenarios dealing with a blind person, a hearing-impaired person, and a person of another culture. The important thing for students to understand is that they must not stereotype people based on their abilities or the way they look. One option for this activity is to choose a handful of students to role-play to the entire class and then ask students to rate the performance of the customer service professional. You can pull ―actors‖ aside and ask them to handle the situation in an inappropriate way in order to see the rest of the class’s reaction. This section also serves to sensitize students toward the needs of differently abled and diverse customers.

End-of-Chapter Material Notes Key Terms

                                     

Acculturated (p. 319) Americans with Disabilities Act of 1990 (p. 335) Attitude (p. 326) Baby boomer (p. 340) Belief (p. 317) Blog (p. 345) Chicano culture (p. 322) Collective culture (p. 326) Concept of time (p. 326) Conflict resolution style (p. 326) Cultural diversity (p. 316) Customer with disability(ies) (p. 334) Diversity (p. 315) Expectation of privacy (p. 320) Face (p. 324) Foreign-born people (p. 329) Form of address (p. 322) Gender role (p. 325) Hearing disabilities (p. 336) Hispanic culture (p. 322) Inclusive (p. 345) Individualistic culture (p. 326) Interpersonal relationship (p. 323) Latino culture (p. 322) Matriarchy (p. 323) Mobility or motion impairment (p. 339) Modesty (p. 320) Monochronic (p. 326) Namaste (p. 322) Ownership of property (p. 327) Platinum Rule (p. 317) Podcast (p. 345) Polychronic (p. 326) Real-Time IM Relay for Customers with Hearing and Speech Loss (p. 337)Respect for elders (p. 323) Telecommunications Relay Service (TRS) (p. 336) Value (p. 317) Vision disability (p. 338)

  

Wai (p. 321) Wiki (p. 345) Younger customer (p. 343)

Review Questions 1. What are some innate qualities or characteristics that make people unique? Some innate qualities or characteristics that make people unique are height, weight, hair color, gender, skin color, physical and mental condition, and sibling birth order. 2. What external or societal factors affect the way members of a group are seen or perceived? Oftentimes, people’s perceptions are based on their own experiences, memories, and interpretations. These can influence how they see a situation or how they see other people. 3. What are values? Values are long-term appraisals of the worth of an idea, person, place, thing, or practice held by individuals, groups, or cultures. They affect attitudes and behavior. 4. Do beliefs differ from values? Explain. Beliefs differ from values. Beliefs are perceptions or assumptions that individuals or cultures maintain. These perceptions are based on past experiences, memories, and interpretations and influence how people act and interact with certain individuals or groups. People’s beliefs are based on their values. 5. Why would some people be reluctant to make eye contact with you? In some cultures, it would be considered rude to make direct eye contact. In other cultures, such as the United States, someone who does not make direct eye contact may seem suspicious, even though it may just be due to cultural differences. 6. When dealing with customers with a disability, how can you best help them? One should understand that everyone has different abilities. Just because someone

can’t see well doesn’t mean they aren’t perfectly capable of doing other things. Starting from a place of understanding is the best way to work with people. Also, understanding that people with a disability may not want help and can do things on their own can prevent missteps and insulting behavior. 7. What are some considerations for improving communication in a diverse environment? The following are some of the considerations that help improve communication in a diverse environment:  Be careful of nonverbal language and also be aware of how nonverbal messages are sent.  Avoid the use of general terms and be careful with one’s remarks and jokes.  Recognize the impact of words and how some words might be insulting to a group of people (e.g., ―homo‖). 8. How can you effectively communicate with someone who has difficulty with the English language? One can effectively communicate with someone who has difficulty with the English language by:  Speaking slower but not louder  Avoiding historical references, such as ―a John Hancock,‖ and sports references  Pausing frequently and using standard English (avoiding slang) 9. What are some techniques for effectively providing service to older customers? The following are some techniques for effectively providing service to older customers:  Be patient, respectful, and answer questions.  Don’t be patronizing and remain professional.  Avoid any biases you have about older people.

Collaborative Learning Activity The goal of this activity is simply to make students more aware of diversity. In customer service settings, it is easy to assume everyone is just like us, and in doing so, possibly offend someone who isn’t. As a result, it is important for students share experiences.

One follow-up activity you can do is simple: Ask students to write down: Before

_, I thought

_ about

_. Now I think

This asks students to really examine their own prejudices and values. It is important to point out that students may not always be willing to share their experiences for fear of sounding sexist, racist, homophobic, or otherwise. Hopefully, at this point in the class, you have already created familiarity with the group through activities and discussion, which will make the students more comfortable sharing their personal experiences. Another possible way to begin this conversation is to share with students your own experiences with diversity. For example, ―I was in Denmark working for a period of time, and whenever I walked by someone in the office, I said the normal ―hi, how are you doing?‖ However, I quickly noticed that when people in Denmark asked this or were asked, they actually gave a response or expected one in return!‖ In the United States, we use ―how are you,‖ ―how’s it going,‖ or other phrases as a greeting, but in some countries, they may take the question literally.

Face-to-Face—Helping Difficult People on the Phone at MedMobile You, as an account representative with MedMobile, are venting to your supervisor about a new claims adjuster, Abeyola, who immigrated to the U.S. from another country about 12 years ago. You have just tried unsuccessfully to explain to Abeyola why you felt the equipment he is ordering is not the best for the patient’s injury, as he described it to you. After your conversation, your supervisor called his friend, David, who supervises Abeyola. Abeyola has been venting to David about you. 1. What seems to be happening here? Does Abeyola have any legitimate complaints? If so, what are they? This scenario appears to be a cultural communication difference. Because one of the fictional people has a nontraditional name, warn students to avoid stereotyping. In this situation, neither party has taken into consideration the diversity of the workforce and both parties are now very frustrated with each other. Students may point out that Abeyola has some legitimate complaints, such as the account rep’s impatience with him trying to learn the terminology and equipment. Perhaps the account representative is speaking too rapidly.

2. What steps or process can you use to clarify understanding? Student answers will vary. It seems that neither party has been trained in diversity. This organization could greatly benefit from further training in this area. To improve communication, both parties need to understand cultural differences and how to deal with them. Additionally, the parties involved should speak slowly, clearly, avoid technical jargon, and listen to vocal cues (nonverbal). They should make sure to check for understanding periodically. 3. What cultural differences might be involved in this scenario? While it may seem that Abeyola’s chatter is unimportant, part of his culture might be to establish a relationship. In doing so, he may feel he can work with you better. Sensitivity to this is important. You are lacking patience due to the fact he is a new employee and may not know everything. Especially if English is his second language, it is important to speak slowly and to explain things when someone has begun a new job. Use of technical terms can create frustration for both parties. (―He doesn’t understand what I say!‖ and ―She doesn’t explain things!‖). Avoiding such language, especially when there is a cultural difference, is important to good cross-cultural communication. In addition, Abeyola should consider the standards and the norms of the company culture in which he is working.

Notes

Chapter 9 Customer Service via Technology Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 19 Role-Play Activity: The Broken Lamp ........................................................................ 20 Discussion Opportunities .............................................................................................. 22 In the Real World Notes ................................................................................................ 22 Technology—Zoom Video Communications, Inc. ....................................................... 22

Work It Out Note............................................................................................................ 24 Work It Out 9.1—Evaluating Voice Mail....................................................................... 24 End-of-Chapter Material Notes ...................................................................................... 25 Key Terms.................................................................................................................. 25 Review Questions ...................................................................................................... 26 Collaborative Learning Activity................................................................................... 28 Face-to-Face—Telephone Techniques at Staff-Temps ............................................... 28

Learning Outcomes LO 9-1: Recognize the role of technology-effective service delivery. LO 9-2: Describe ways in which technology enhances an organization’s service delivery capabilities. LO 9-3: Discuss ways in which companies are integrating the evolving web-based and mobile technologies into their service strategies. LO 9-4: Communicate effectively via e-mail, the Internet, and fax. LO 9-5: Deliver quality service through effective telephone techniques.

Brief Chapter Outline I. The Role of Technology in Customer Service II. The Customer Contact/Call Center or Help Desk A. Call Center Technology B. Traditional Call Center Technology 1. Automated Attendant System 2. Automatic Call Distribution System 3. Automated Computer Telephone Interview 4. Automatic Number Identification System 5. Customer Relationship Management Software System 6. Electronic Mail 7. Facsimile Machine 8. Instant Messaging 9. Intelligent Callback Technology 10. Interactive Kiosk or Digital Display 11. Interactive Voice Response System or Voice Response Unit 12. Internet Callback Technology 13. Internet Telephony 14. Media Blending 15. Online Information Fulfillment System 16. Predictive Dialing System 17. Screen Pop-Up 18. Speech or Voice Recognition 19. Telephone Typewriter System 20. Voice over Internet Protocol III. Tapping into Web-Based and Mobile Technologies A. Websites 1. Cloud Computing

B. Social Media 1. YouTube 2. LinkedIn 3. Twitter 4. Facebook 5. Pinterest 6. Podcast (Portable On-Demand Broadcast) 7. Smartphone and Tablet 8. Text Messaging 9. Blog C. Advantages and Disadvantages of Technology 1. Organizational Issues 2. Employee Issues 3. Customer Issues 4. Additional Issues IV. Technology Etiquette and Strategies A. E-mail B. Facsimile V. The Telephone in Customer Service A. Communication Skills for Success B. Tips for Creating a Positive Telephone Image C. Effective Telephone Usage D. Voice Mail and Answering Machines or Services E. Taking Messages Professionally F. General Advice for Communicating by Telephone

Chapter Outline and Lecture Notes I. The Role of Technology in Customer Service    

With the number of Internet users continuing to climb throughout the world, online sales of products and services continue to rise. Computers and other forms of technology are continually becoming smaller, more complex, and more powerful. We have become a 24/7/365 society. (We access technology 24 hours a day, 7 days a week, 365 days a year.) More people are accessing telephone and Internet-related customer service and the economies of many countries are being significantly influenced by technology-based customer services.



There has been some shrinkage in the number and size of call centers in the United States due to the following: o Offshoring call center functions to other countries o Outsourcing to third-party companies that specialize in call center operations o The rise in self-service web or speech recognition technologies that allow customers to place their own orders and access information without contacting a customer care representative Companies that are not prepared to meet the future using technology will lose business as customers migrate to providers that are better prepared.

II. The Customer Contact/Call Center or Help Desk 

  

Most organizations now have free 800 or 888 numbers that people can use to call the organization to get information, place orders, receive service, and for a variety of other functions. Organizations are also employing fee-based 900 numbers through which customers and others can call for information and service. Customer contact centers, or help desks, are more powerful and complicated than ever before. Successful service organizations realize that each customer is unique. o Some people are high touch (preferring assistance) while others are low touch (preferring to serve themselves). A. Call Center Technology  

Technology is advancing at such a rapid rate that typical organizations and their employees struggle to keep up with the changes. Today, customer service representatives have a vast amount of technology at their disposal and the industry and regulations governing it are continuing to evolve.

B. Traditional Call Center Technology  

Technology shifts are changing the roles of call centers and the people who staff them. The following are some of the traditional equipment used to provide call center-based customer service. 1. Automated Attendant System



Automated attendant systems provide callers with a menu of options from which they can select by pressing a key on their telephone keypad. o These systems can also be used to provide prerecorded responses to frequently asked questions (FAQs) and to route callers to specific representatives or other employees and departments.

2. Automatic Call Distribution System 



Automatic call distribution (ACD) systems route incoming calls to the next available agent based on number called, time of day, caller ID, or caller-selected codes. When agents are busy or lines are full, an ACD automatically places callers on hold and plays a prerecorded announcement.

3. Automated Computer Telephone Interviews  

Automated computer telephone interviews allow organizations to conduct automated phone surveys of customers. Programs are typically built around advanced interactive voice response (IVR) technology along with voice broadcasting technology.

4. Automatic Number Identification System  

Automatic number identification (ANI) is a form of caller identification similar to home telephone caller ID systems. The system allows customers to be identified and their calls directed appropriately before an agent talks to them.

5. Customer Relationship Management Software System 



Customer relationship management (CRM) software systems are designed to automate and integrate service and other functions within an organization. Among other things, CRM systems can perform the following functions: o Capture contact information. o Track suppliers and vendors. o Develop e-mail/direct-mail lists. o Generate event-related invoices and track payments. Some CRM systems can also integrate with social media sites like

Facebook, Google Plus, and LinkedIn to track opinions and feedback on experiences about the organization, products, and services and then communicate with those consumers. 6. Electronic Mail  



Electronic mail (e-mail) provides an inexpensive, rapid way of communicating with customers in writing worldwide. It allows customers to access information via telephone and then, through prompting (and using the telephone keypad), have the information delivered to them via e-mail. The downside of using this vehicle from a customer standpoint is that spamming or sending spam by unscrupulous people and organizations has given e-mail advertisers in general a bad reputation.

7. Facsimile Machine 



A facsimile (fax) machine allows graphics and text messages to be transported as electronic signals via telephone lines or from a personal computer equipped with a modem. Information can be sent anywhere in the world in minutes, or a customer can make a call, key in a code number, and have information delivered to his or her fax machine or computer without ever speaking to a person (fax-on-demand system).

8. Instant Messaging 



Instant messaging is a type of technology that allows online chats in real-time text transmission over the Internet between customers and service representatives. Some more advanced systems use technology that provides real-time texting in which a message receiver can view each character simultaneously as the message is being written by the sender.

9. Intelligent Callback Technology 

Customers have become far less tolerant of long wait times to receive service. o To address this concern, many organizations have introduced intelligent callback technology into their call centers.

With this equipment, they are able to allow customers to decide whether they prefer to wait to speak to a representative or would rather receive a scheduled callback.

10. Interactive Kiosk or Digital Display 



Interactive kiosks or digital displays are an evolving technology that allows customers and customer contact centers equipped with video camera computer hookups to interact via the computer. Many organizations are now using these in lobbies to allow self-service to customers.

11. Interactive Voice Response System or Voice Response Unit 



An interactive voice response (IVR) system or voice response unit (VRU) allows customers to call in 24 hours a day, 7 days a week, even when customer service representatives are not available. Such systems perform a text-to-speech conversion to present database information audibly to a caller.

12. Internet Callback Technology 

Internet callback technology allows someone browsing the Internet to click on words or phrases, enter his or her phone number, and continue browsing. o This triggers a predictive dialing system and assigns an agent to handle the call when it rings at the customer’s end.

13. Internet Telephony 

Internet telephony allows users to have voice communications over the Internet.

14. Media Blending 

Media blending allows agents to communicate with a customer over a telephone line while at the same time displaying information to the customer over the Internet.

15. Online Information Fulfillment System



Online information fulfillment systems allow customers to go to the Internet, access an organization’s website, and click on desired information. o This is one of the fastest-growing customer service technologies.

16. Predictive Dialing System 

Predictive dialing systems automatically place outgoing calls and deliver incoming calls to the next available agent. o This type of system is often used in outbound (telemarketing/call center) operations.

17. Screen Pop-Up  

Screen pop-ups are used in conjunction with ANI and IVR systems to identify callers. As a call is received and dispatched to an agent, the system provides information about the caller that ―pops‖ onto the agent’s screen before he or she answers the telephone.

18. Speech or Voice Recognition 



Speech- or voice-recognition programs allow a system to recognize key words or phrases from a caller. o These systems can be for routing callers to a representative and for retrieving information from a database. Call centers and many of the world’s largest companies are using voicerecognition software to facilitate customer service and provide services through their products.

19. Telephone Typewriter System 



Partly because of the passage of the 1990 Americans with Disabilities Act in the United States, and similar laws in other countries, organizations must now have the technology to assist customers who have hearing and speech impairments. By using a Telephone Typewriter system (TTY)—a typewriter-like device for sending messages back and forth over telephone lines—a person who has a hearing or speech impairment can contact someone



who is using a standard telephone. The federal government has a similar service (Federal Information Relay Service, or FIRS) for individuals who wish to conduct business with any branch of the federal government nationwide.

20. Voice over Internet Protocol 

Another video-based service option for businesses that has been used by individuals for a number of years is known as Voice over Internet Protocol (VoIP) and allows voice communications combined with multimedia, such as video images, to be transported over the Internet. o This free or low-cost means of communication has been popular with users as an alternative to long-distance calling that does not allow speakers to see one another.

III. Tapping into Web-Based and Mobile Technologies  Web-based and mobile technologies continue to multiply and expand daily, and so do ways in which businesses are rapidly learning to harness their power.  Everything from organizational branding, sharing information, introducing new products, and communicating and helping satisfy customer needs is possible via technology that is evolving rapidly. A. Websites 

 

Websites provide organizations with a valuable tool for presenting a ―face‖ to the entire world. o Websites are a series of electronic ―pages‖ that are hosted on a web server and that provide vital organizational, product, and service information. They also offer multiple ways for consumers to get in touch with key company representatives via the Internet. One key to effective website effectiveness is recognition and connections. The thing to remember about websites is that they are basically a ―pull‖ mechanism. o That means that site owners post information, provide service chat support, and encourage people to come to the site to retrieve information, use services and support, and make purchases. 1. Cloud Computing

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Cloud computing technology involves using hardware and software delivered over a network, such as the Internet. o This form of computing allows end users (e.g., customers) to use mobile phones, tablets, computers, or laptops to access data through a mobile application on the device through a web browser such as Internet Explorer, Firefox, Opera, Safari, or Google Chrome.

B. Social Media 

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The Internet has exploded with social networking websites that allow people and organizations a vehicle to post information about themselves, products, and services. Social media has become so popular and available to consumers that organizations are tapping into it to help establish their brand, share information, identify and connect with customers, and target specific demographic groups. Users connect on various social and media sharing sites for a variety of reasons. o This potentially provides a wealth of opportunity for companies that want to share their message about products and services with the world. One of the biggest advantages to using social media to get information out to current and potential customers is that the sites are almost exclusively free. Some of the ways that social media are being tapped by organizations include: o Lead generation by identifying and targeting key decision-makers in world-class companies. o Identifying and solidifying their position in niche markets by separating themselves from competitors and emphasizing why their products and services are superior. o Product and service brand management o Run inexpensive targeted advertisements based on age, gender, job title, geographic area, interests, and other factors. o Crisis management or damage control An important thing for companies to realize is that their employees are networking with other employees and possibly their customers directly or indirectly through social media. o This can have either a positive or negative impact on company image depending on what is being shared.

1. YouTube 

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YouTube—the largest video-sharing website on the Internet, where users can upload, share, and view videos—was established in 2005 by three former PayPal employees. The company is a subsidiary of Google and provides a forum for users to upload and view videos containing movie and TV clips or music, educational content, and personal or organizational messages and content.

2. LinkedIn 

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LinkedIn was launched in May 2003 as an employment-oriented service that operates through websites and mobile apps. Many users are job seekers who share their résumé or CVs, or employers looking for new talent. The site generates revenue from advertising sales, membership subscriptions, and recruitment solutions.

3. Twitter  

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Twitter is a real-time, short messaging service that works with a variety of communication networks and electronic devices. Because of its rapid delivery potential, many organizations are using tweets to interact with customers quickly in order to share information about products and services, respond to complaints, and answer questions. Twitter is a great vehicle for checking customer reactions to a commercial or product rollout, asking for ideas, or gathering information regarding other organization-sponsored events or activities.

4. Facebook 

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Facebook was founded in 2004 by Mark Zuckerburg and his college roommates as a social networking tool to allow students at Harvard University to network socially. o It quickly expanded to other major educational institutions and then to the world. In recent years, large and small organizations have realized the potential

in tapping into the Facebook network and are setting up professional profiles to which people and organizations can link and share information. o Using Facebook provides another creative option for communicating with current and potential customers. 5. Pinterest 

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Pinterest—a pin- or corkboard type of forum where users can share photos and images on various themes or interests—was founded in 2009 and initially run from a New York apartment by its founders, who had around 5,000 users the first year. Since the site started allowing people to establish business accounts, in addition to their personal account, there has been an influx of organizations using it to act as a storefront or inexpensive means of promoting its brand, products, and services.

6. Podcasts (Portable On-Demand Broadcast) 

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With podcasts, information (e.g., advertisements, product information, entertainment, etc.) can be shared with potential and current customers or the community. People subscribe to and download the content through their mobile device or computer. Organizations can transmit scheduled material to customers as a free service or as a subscription or per-event/item purchase.

7. Smartphone and Tablet 

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Smartphones are mobile telephones that are built with a mobile operating system similar to a computer that allows them to perform a myriad of functions using what are called applications or apps. Tablets are basically a personal computer (PC) that is a hybrid between a notebook or laptop computer and a personal digital assistant (PDA) and has a flat-screen viewing panel. These devices can connect to the Internet through wireless (Wi-Fi) connections; provide information; play music; allow users to read books; act as navigational devices, cameras, and calculators; and perform myriad other processes and functions. These amazing devices have provided new opportunities to

organizations wishing to get information and services to mobile phone customers. 8. Text Messaging 

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Text messaging or texting, an electronic form of messaging between mobile, desktops, or laptop computers over a cellular network or Internet telephone network, has been popular. For over a decade, businesses have adopted the practice as a readily available and inexpensive way to interact with customers. The following are some ways that organizations are applying the technology. o Travel agencies, entertainment companies, and others that deal with scheduling, events, and changing information for customers use this format to send short updates or information related to products and events to customers’ cellular phones. o On-call personnel such as maintenance, engineering, and medical staff are being notified when an issue or emergency needing their attention arises.

9. Blog 

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Blogs are used by individuals and organizations to share all sorts of information with employees, customers and potential customers, and general Internet users. o These chronological ―diaries‖ are a creative way for individual bloggers, and those within organizations, to provide updates, product or service commentary, and information and graphics or video to internal and external customers (e.g., product recalls, updates, etc.) in the form of posts. The key to successfully using a blog as a marketing tool is consistency and frequency.

C. Advantages and Disadvantages of Technology 1. Organizational Issues 

Through the use of computers, software, and various telecommunication devices, a company can extend its presence without physically establishing a business site and without adding staff.

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By setting up a website, organizations can become known and develop a worldwide customer base while helping to equalize the playing field with multinational and distant competitors. The challenge for organizations is to have well-maintained, state-of-theart equipment with trained, qualified, competent, and customer-oriented people to operate it. o In a low-unemployment period, this can be a challenge and can possibly result in disgruntled customers who have to wait on hold for service until an agent is available to help them. Staying on top of competition with technology is an expensive venture.

2. Employee Issues 

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The greatest benefit that technology brings to employees is that it frees them from mundane tasks such as taking information and mailing out forms, information, or other materials. o These tasks can be done by using voice-activated and push-button phone systems, IVR, or online fulfillment systems and self-service mechanisms where customers can access information and get answers on websites or interactive store kiosks. The downside for employees is that many organizations see technology as a way to reduce staff costs and overhead related to employees, and they therefore eliminate positions. o Another problem created by technology is an increase in stress levels of both employees and customers.

3. Customer Issues 

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In the age of technology, people contacting an organization typically expect immediate responses or assistance. o They do not care about problems with the system or that a service provider is experiencing. o They expect that issues related to services, phone systems, and other equipment are anticipated and an alternative is available— and that the service providers have a backup plan in place to handle them when something fails. There should be a process for circumventing technical problems and the service provider should take the initiative to get the information they need and get back to them as soon as possible. From a customer standpoint, if service providers and organizations use it

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correctly and professionally, technology can be a big help. However, to have the latest gadgets is costly in terms of time and money. A major consumer issue related to telephone usage is that many organizations conduct direct marketing (telemarketing) and/or collections activities via the telephone. o Many unscrupulous telemarketers pressure call recipients or use ―robocall‖ machines, illegally take advantage of them, and/or violate personal privacy. o Robocall is a type of automated phone auto-dialer that delivers a personalized, prerecorded message to recipients.

4. Additional Issues 

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Technology, especially the Internet, has spawned a new era of fraud and manipulation. o This is a major concern for consumers and can create many challenges for people working in a call center. Informed customers go to great lengths to protect their credit card, merchant account, and social security numbers; addresses; and personal data. Service providers should remember that a customer’s reluctance to provide them with information is not necessarily a reflection on them or their service providing peers; it is based more on a distrust in the system.

IV. Technology Etiquette and Strategies 

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As with any other interaction with people, service providers should be aware of some basic dos and don’ts related to using technology to interact with and serve their customers. Failure to observe some commonsense rules can cause loss of a customer. A. E-mail  

The e-mail system was designed as an inexpensive, quick way of communicating via the Internet. E-mail was not originally intended to replace formal written correspondence, although many organizations now use it to send things like attached correspondence and receipts and to notify customers of order status, to gather additional information needed to serve a customer, and for other business-related issues.

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Some e-mail tips to remember, as well as some etiquette for effective usage are as follows: o Use abbreviations and initials. o Proofread and spell-check before sending a message. o Think before writing. o Use short, concise sentences. o Use both upper- and lowercase letters. o Be careful with punctuation. o Use e-mail only for informal correspondence. o Use organization e-mail for business only. o Use blind courtesy copies sparingly. o Copy only necessary people. o Get permission to send advertisements or promotional materials. o Be cautious in using emoticons (emotional icons)—faces created through the use of computer keyboard characters. o Fill in your address line last.

B. Facsimile  

There are certain dos and don’ts to abide by when service providers use a fax machine to transmit messages. Failing to adhere to the simple guidelines can cause frustration, anger, and a breakdown in the relationships between service providers and their customers or others to whom they send messages. o Be considerate of your receiver. o Limit graphics. o Limit correspondence recipients.

V. The Telephone in Customer Service 

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Although many small- and medium-sized organizations may have dedicated customer service professionals to staff their telephones, others do not. o In the latter cases, the responsibility for answering the telephone and providing service falls on anyone who is available and hears the telephone ring. Modern businesses rely heavily on the use of telephones to conduct day-to-day operations and communicate with internal as well as external customers. o Effective use of the telephone saves employee time and effort. More businesses are setting up inbound (e.g., order taking, customer service, etc.) and outbound (e.g., telemarketing, sales, etc.) telephone staff.

Through these groups of trained specialists, companies can expand their customer contact and be more likely to accomplish total customer satisfaction.

A. Communication Skills for Success 

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Just as when one is delivering service face-to-face with a customer, the same skills apply to providing effective customer service over the telephone, especially the use of vocal quality and listening skills. To reduce the chances of message failure, service providers should think about the communication techniques discussed below: o Speak clearly. o Limit jargon, slang, and colloquialisms. o Adjust the volume. o Speak at a rate that allows comprehension. o Use voice inflection. o Use correct grammar. o Pause occasionally. o Smile as you speak. o Project a positive image and attitude. o Wait to speak. o Listen actively.

B. Tips for Creating a Positive Telephone Image 

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People quickly form an opinion about service providers and their organization. o The message they receive often determines how they interact with the service providers during the conversation and in the future relationship. Some suggestions to help service providers their customers effectively are as follows: o Continually evaluate yourself. o Use proper body posture. o Be prepared. o Speak naturally. o Be time conscious. o Be proactive with service. o Doing more than the customer expects after a breakdown is important, especially if the service provider or the company made an error. o Conclude calls professionally.

C. Effective Telephone Usage 

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One basic strategy for successfully providing effective customer service over the telephone is to thoroughly understand all phone features and use them effectively. Service providers could use the following strategies to ensure that they do not deliver poor service: o Eliminate distractions. o Answer promptly. o Use titles with names. o Ask questions. o Use speakerphones with caution. o Use call waiting.

D. Voice Mail and Answering Machines or Services 

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Although voice mail is hailed by many people as a time-saver and vehicle for delivering messages when an intended recipient is unavailable, many other people have difficulty dealing with this technology (including answering machines) or simply refuse to interact with a machine. Some ways to use voice mail are as follows: o Managing incoming calls—to effectively use voice mail, one must first understand how the system works. o Placing calls to voice mail—many normally articulate people cannot speak coherently when they encounter an answering machine or voice mail.  One technique for success is to plan the call before picking up the phone. o Avoiding telephone tag—telephone tag is frustrating and a waste of valuable time.  It results in a loss of efficiency, money, and, in some cases, customers.  To avoid telephone tag, service providers should plan their calls and make their messages effective by giving their name, company name, phone number, time and date of their call, and a succinct message, and by indicating when they can be reached.  If appropriate, service providers should emphasize that it is all right to leave the information they have requested on their voice mail or with someone else.

E. Taking Messages Professionally 

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At a minimum, when service providers take a message they should get the following information from the caller: o Name (correctly spelled—ask caller for spelling) o Company name o Phone number (with area code and country code, if appropriate) o Brief message o When call should be returned o Time and date of the call and the service provider’s name (in case a question about the message arises). If service providers are answering someone’s phone while he or she is away, they should let the caller know right away.

F. General Advice for Communicating by Telephone 

Service providers shouldn’t communicate personal information, belittle themselves, or use weak or negative language. o After they have taken the message, they should thank the caller before hanging up and then deliver the message to the intended receiver in a timely manner.

Class Activities and Sample Assignments 11. Read chapter nine. (LO 9-1 through 9-4) 12. Ask students to divide into two groups and sit on opposite sides of the room. Then, tell the students that one side will debate the agree position and one side will debate the disagree position for the statement, ―Technology has made customer service more difficult.‖ (LO 9-2) 13. In teams or alone, have students write a backup plan in case technology fails for their current or former organization. It should address the following—lost Internet connections, inability to access customer data stored on computers, telephone issues, and website issues. This assignment can be written and/or have a presentation aspect to it. (LO 9-2) 14. Ask students to break into teams of four and then role-play how a customer service

professional should react to a reluctant customer not wanting to give any private information over the phone. (LO 9-4) 15. Tell students to Google or Bing ―webinar‖ and also include a company name (e.g., ―Webinar Nordstrom‖). Then, review what items appear and view them. Tell students if the company of their choice doesn’t have any webinars listed, they should Google another company. Then, ask the students to write about the webinar they viewed and prepare a short presentation on it. (LO 9-1 and 9-2)

Role-Play Activity The Broken Lamp (LO 9-2) Customer Role 

Turn your chair so that you are not facing your customer during this ―phone‖ conversation.

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Do not share your role-play instructions with the ―service provider.‖

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Your name is Priscilla Maynard and you ordered a lamp online several weeks ago. It arrived on the 5th, but was broken when you unpacked it. It is now Tuesday the 20th. You are calling the company’s customer care center to return it, per the instructions included in the shipping box.

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You just called the company’s toll-free number.

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After the service representative answers the phone, explain your situation. Convey that while you had been meaning to call earlier this week, you had to deal with a family health crisis when your husband had to go into the hospital for emergency heart bypass surgery.

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Act as you normally would in a situation like this.

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During the interaction, monitor verbal and nonverbal messages sent by the service provider and respond as you believe is appropriate. Additionally: o Feel free to ask questions of the service provider or add additional details of your needs as you think of them.

Service Provider Role

Background information: Your organization has a policy regarding returns that says they will be accepted within seven days of receipt, if advance approval is obtained and a call ticket is issued to have a shipping company pick up and return the item for replacement or credit. Further, your company’s value statement stresses that ―Our customers are our purpose for being in business.‖ 

Turn your chair so that you are not facing your customer during this ―phone‖ conversation.

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Do not share your role-play instructions with the ―customer.‖

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You are a customer service representative who provides service via the telephone and Internet for a home products company.

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It is Tuesday the 20th and a customer is calling about a problem with a lamp that she recently purchased online and received on the 5th.

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Ask what you believe are pertinent questions and take any action you deem necessary to resolve the issue positively and professionally.

Observer Role Watch the exchange between the customer and service provider, make notes of service challenges and successes, what the server did well, and what needs improvement from a service perspective. Instructor Debrief Notes Ask the following questions of everyone: 1. What are the customer service issues in this scenario? 2. What do you believe are the customer’s needs, wants and expectations in this situation? Explain. 3. What role does your company policy play in this situation? 4. If you were the customer, what do you think the company (you) should do? 5. Have you ever been a customer in a service situation when the representative used the phrase ―our policy says…‖? How did you feel and react? Stress that one of the biggest mistakes that a service representative can make is to quote ―policy says‖ in such situations since this tends to turn a customer situation into an emotional one quickly. This scenario can be used to stress the importance of empowerment of employees and having employees take responsibility for a situation. If they do not have the authority to resolve such issues without approval of a manager, they should suggest that they be empowered to do so by management.

This situation calls for patience and calm, allowing the customer to vent while the service provider listens empathetically, negotiating a satisfactory service-oriented resolution. The ―feel, felt, found‖ technique in Chapter 2 of the text might be useful in such a situation. Explain that policies are made by people in companies. They can be changed, or exceptions can be made if situations occur that justify modifications. Often front-line employees are not empowered to override policies. Typically, there are two reasons that this is the case: (1) supervisors or managers do not want to delegate authority to employees or (2) employees sometimes abuse their authority. In instances when a policy prohibits an employee from performing in a manner that helps deliver effective customer service, the employee should contact a supervisor for assistance. Also, tactfully suggest to the supervisor that, in the future, employees be empowered to take action on their own. This sends a more positive message to customers who no longer have to wait or be transferred to a supervisor for approval or policy override.

Discussion Opportunities 6. Think back to a time you used an interactive kiosk to obtain information or place an order. What advantages did this technology offer? What obstacles did it create? (LO 9-2) 7. One of the major challenges companies face is providing customer service information via email. Think of companies you do business with. Do you email them? How long does it normally take for them to respond? Explain some of the shortcomings of using email for customer service. (LO 9-2 through 9-4) 8. Have you ever used Internet callback before? What was your experience? From the customer’s perspective, how does Internet callback differ from online customer service chat? (LO 9-2) 9. What are some of the disadvantages for employees in a world with technology? Explain. (LO 9-3 and 9-4)

In the Real World Notes (p. 355) Technology—Zoom Video Communications, Inc.

Eric Yuan, a former Cisco engineer, formed Zoom on April 21, 2011, and launched its software in 2013. Since then, the company has grown with over 2,500 employees worldwide and a valuation of over $1 billion. According to its website, ―Our easy, reliable, and innovative video-first unified communications platform provides video meetings, voice, webinars, and chat across desktops, phones, mobile devices, and conference room systems. Zoom helps enterprises create elevated experiences with leading business app integrations and developer tools to create customized workflows.‖ Unlike many companies during the COVID pandemic, this company’s growth has been positively influenced and has accelerated because of the increased number of customers working and schooling themselves and their children from home. The need for easy-to-use and efficient videoconferencing and meeting software drove hundreds of thousands of customers to seek services, such as the ones provided by Zoom. Like other major technology-based companies (e.g., Google and Microsoft), Zoom has created a relaxing and laid-back atmosphere where employees enjoy coming to work. It has received awards for the quality of the company work environment. In addition to fostering a strong employee-centric organization, the company’s founder believes in giving back to the local community through a variety of programs and events (e.g., discounts on products and services to education and nonprofit groups, employee volunteer initiatives, and employee recognition programs). 1. From your personal experiences as a customer, information that you just read, news reports, and what you found on the Internet, what do you feel are the strengths of Zoom as a company? Explain. Answers will vary. Some may point out the company’s success in having the right product in place when demand hit by offering a tool suited for remote working and schooling during the COVID-19 pandemic. 2. What societal factors do you feel have influenced Zoom and contributed to its popularity? Explain the relationship of these factors to Zoom’s growth. Answers will vary. Some factors influencing Zoom’s success include the increasing prevalence of telecommuting and telework and the overall growing reliance on technology for communication. Telecommuting, though increasing before the pandemic, skyrocketed during the pandemic. In addition, online schooling and videoconferencing for all age groups necessitated easy-to-use, meeting software that was already in place.

3. As a consumer, are you a fan of Zoom and what it has accomplished? Why or why not? Answers will vary depending on their individual experiences with Zoom. Some students may be fans because of the convenience and flexibility Zoom offers them in school and work. Others might reference issues they’ve encountered trying to use the technology or concerns about security flaws in Zoom’s product. 4. As a current customer or potential customer, what do you think about Zoom’s product and service offerings and its approach to business? Explain your views. Answers will vary. Zoom approaches business as any other company—they want to lead the industry and grab the largest market share. Zoom was in the right place at the right time for huge growth in a short period of time. 5. Would you want to work for Zoom? Why or why not? Answers will vary. Some students may want to work for Zoom because of the relaxed company culture or their philanthropic efforts. They also may want to work for Zoom because of the awards it has won celebrating it as a workplace. Others may be motivated by its software design and performance, and want to be a part of innovative business solutions.

Work It Out Note Work It Out 9.1—Evaluating Voice Mail (p. 398) This box discusses some of the etiquette of voicemail. A proper outgoing voice message should include:  A greeting  Organization’s name  Departmental name  A statement of when the person will return  An early announcement of an option to press a number for immediate assistance  Instructions for leaving a message  Information on when calls will be returned You can also use this box as a discussion point on how to leave a voicemail. A

voicemail should always be concise, clear, and to the point. It should include your name, contact information, and reason for calling. Even if you think they already have your contact information, it is important to provide it anyway.

End-of-Chapter Material Notes Key Terms                             

Application (app) (p. 377) Artificial intelligence (AI) (p. 368) Automated attendant system (p. 363) Automated computer telephone interview (p. 364) Automatic call distribution (ACD) system (p. 363) Automatic number identification (ANI) system (p. 364) Blind transfer (p. 395) Blogger (p. 378) Chat support (p. 370) Cloud computing (p. 371) Customer care center (p. 362) Customer relationship management (CRM) software (p. 364) Data mining (p. 374) Electronic mail (e-mail) (p. 365) Emoticon (emotional icon) (p. 387) Facebook (p. 376) Facsimile (fax) machine (p. 366) Fax-on-demand (p. 366) Fee-based 900 number (p. 362) Help desk (p. 362) Intelligent callback technology (p. 366) Interactive kiosk or digital display (p. 366) Interactive voice response (IVR) system (p. 367) Internet callback technology (p. 367) Internet telephony (p. 367) Media blending (p. 367) Online information fulfillment system (p. 367) Pinterest (p. 376) Post (p. 378)

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Predictive dialing system (p. 368) QR Code (Quick Response Code) (p. 358) Robocall (p. 382) Secure sockets layer (SSL) (p. 367) Screen pop-up (p. 368)  Smartphone (p. 377)  Spamming or spam (p. 365)  Speech or voice recognition (p. 368)  Tablet (p. 377)  Telephone Typewriter (TTY) system (p. 369)  Text messaging (texting) (p. 378)  Tweet (p. 375)  Twitter (p. 375)  Voice over Internet Protocol (VoIP) (p. 369)  Voice response unit (VRU) (p. 367)  Website (p. 370)  Wi-Fi (p. 377)  YouTube (p. 374)

Review Questions 1. In what ways can technology play a role in the delivery of effective customer service? Explain. Customers’ expectations have changed due to technology. They expect answers and availability faster and aren’t willing to wait for the information they need. Devices are now smaller and easier to use, which means customers can take care of business almost anywhere. In addition, because of the wide availability of pricing information, customers must see the value they receive when purchasing from a particular company since there are many more online choices. 2. What are some advantages of using technology for service delivery? Using technology for service delivery can be cheaper and faster for the company and satisfying to customers who can get answers to their questions almost any time of day without waiting until the business is ―open.‖ 3. What are some disadvantages of using technology for service delivery?

Some people prefer more high-touch service (personalized service from a human being), so expecting to do all transactions online may not meet the needs of these customers. Offering the option of ordering online but also providing a customer service phone number by which customers can order is a solution to this challenge. 4. What are some of the communication skills for success? Some of the communication skills for success are as follows:  Limit jargon and slang.  Adjust your volume as the conversation progresses.  Use nonverbal cues.  Don’t speak too fast.  Use voice inflection.  Use correct grammar and pauses.  Smile.  Project a positive attitude.  Listen actively and wait to speak so you don’t interrupt the customer. 5. How can you project a more positive image over the telephone? People can project a more positive image over the phone by:  Using pauses  Smiling into the phone  Using voice inflection and project a positive attitude  Not giving away too much personal information or belittling themselves or the company 6. What information should you always get when taking telephone messages? People should get the following information when taking telephone messages:  Name (correctly spelled—ask caller for spelling)  Company name  Phone number (with area code and country code, if appropriate)  Brief message  When the call should be returned  Time and date of the call and your name (in case a question about the message arises)

7. When transferring calls, what should you avoid and why? When transferring calls, customer service professionals should avoid losing the customer on the line by announcing the caller to the person/department receiving the transfer. This ensures that the person is available. 8. When you leave a message on voice mail, what information should you give? When people leave a message on voice mail, they should:  Plan their message ahead of time and give the reason for the call.  Leave their name (first and last); their number, even if they think the other person already has it; and their company name  Spell out their name when necessary 9. What is telephone tag, and how can you avoid or reduce it? Telephone tag starts when the intended call receiver is not available and a message is left. It continues when the call is returned, the original caller is not available, a return message is left, and so on. To avoid telephone tag, people should plan their calls and make their messages effective by giving their name, company name, phone number, time and date of the call, and a succinct message that indicates when they can be reached. 10. How are small businesses benefitting from today’s technology? By using technology, small businesses can look like larger organizations even if they run their business from home. They can work through drop-ship companies who have large warehouses, so they can have their offices at home.

Collaborative Learning Activity This activity presents four scenarios and asks students to role-play the scenarios. The students can work in groups of three so each person gets a chance to play each ―character,‖ or if you prefer, you can make this a class activity. This can be done by choosing three people from the class (or three people for each of the four scenarios) and having them act out each scenario in front of the class. Then, have the rest of the class critique how well the situation was handled.

Face-to-Face—Telephone Techniques at Staff-Temps Staff-Temps International is a temporary employment agency based in Chicago, Illinois. It has six full-time and three part-time employment counselors. The office is part of a national chain owned by Yamaguchi Enterprises Ltd., headquartered in Tokyo. Since most of the placement is done over the phone, the employees’ phone skills are extremely important. The employees are tested by recording calls. Phantom calls are also made to insure the employees are answering phones in the correct way. In this situation, students are asked to imagine that they are running an hour late from lunch because they had a car accident on their way back. They are nervous about what this is going to do to their insurance rates. When they come into the office, they are immediately handed six messages. As they walk into their office, the phone starts ringing. By the time they take their coat off and answer the phone, it has rung five or six times. One of their customers, who left two messages while they were gone, is on the line. They spoke earlier in the day, and they promised to help her but have been too busy to do so, and she is very angry. 1. How well was this customer call handled? Explain. Student answers will vary, but you may find that many students empathize with the person in the case and think the customer was out of line. While she may have been out of line, you can make the point that she is still the customer and was frustrated. The problem may have been prevented if the person would have provided an update call before leaving for lunch. 2. What should you have done differently? Her original call should have been handled much earlier in the day. The client had called first thing, and the temp not showing up was a serious problem for her. Even if the problem could not be solved immediately, the client should have been given a return phone call with options to solve the problem. Mentioning any detail of his day, i.e., lunch, was a mistake. 3. Do you believe that Aretha was justified in how she treated you? Explain. Students may have differing opinions here, but despite the pressure on Aretha, it was not professional for her to slam down a receiver in a business situation. 4. How do personal problems or priorities sometimes affect customer service?

Student answers will vary, but even with the best protocols in place for providing excellent service, it is difficult to put aside personal issues, particularly if the person is caught off guard. Chris did not intend to have an accident or to lose an hour of work. Chris losing his insurance was a looming financial worry that to be set aside while working to solve others’ problems.

Chapter 10 Encouraging Customer Loyalty Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 20 Ethics in the Workplace ................................................................................................. 20 Discussion Opportunities ............................................................................................ 263 In the Real World Notes ................................................................................................ 21 Wholesale—Costco .................................................................................................... 21 Work It Out Notes ........................................................................................................ 266 Work It Out 10.1—Preventing Customer Defection .................................................. 266 Work It Out 10.2—Problem Solving .....................................................................267 Work It Out 10.3—Showing Respect ....................................................................267 Work It Out 10.4—Personal Customer Relationship Experiences ............................ 267 Work It Out 10.5—Personal Service Expectations ................................................... 267 Work It Out 10.6—Passing Time ..........................................................................268 Work It Out 10.7—Preparing for Contingencies ........................................................ 268 Work It Out 10.8—Personal Customer Experiences ................................................. 268 Work It Out 10.9—Strategies for Making Customers Number One ............................ 25 End-of-Chapter Material Notes ...................................................................................... 25 Key Terms ............................................................................................................. 2665 Review Questions ................................................................................................. 2696 Collaborative Learning Activity .................................................................................. 27 Face-to-Face—Assessing the Need for Reorganization at Get Away ........................ 28

Learning Outcomes LO 10.1 Relate the role of customer and brand loyalty to organizational success. LO 10.2 Establish and maintain trust with customers. LO 10.3 Explain customer relationship management and its importance to quality service. LO 10.4 Develop the service provider characteristics that will enhance customer loyalty. LO 10.5 Describe the provider’s responsibility for establishing and maintaining positive customer relationships. LO 10.6 Identify strategies that can be used to make customers feel like they are number one. LO 10.7 Discuss strategies that can enhance customer satisfaction. LO 10.8 Define quality service.

Brief Chapter Outline I. Customer Brand Loyalty II. The Role of Trust A. Communicate Effectively and Convincingly B. Display Caring and Concern C. Be Fair D. Admit Errors or Lack of Knowledge E. Trust Your Customers F. Keep Your Word G. Provide Peace of Mind H. Be Responsible for Your Customer Relationships I. Personalize Your Approach J. Keep an Open Mind K. Individualize Service L. Show Respect M. Elicit Customer Input III. The Importance of Customer Relationship Management A. Benefits of Customer Relationship Management IV. The Role of Channel Partner Relationships on Customer Loyalty A. Three Types of Channel Partners V. Provider Characteristics Affecting Customer Loyalty A. Responsiveness B. Adaptability C. Communication Skills

D. Decisiveness E. Enthusiasm F. Ethical Behavior G. Initiative H. Knowledge I. Perceptiveness J. Planning Ability K. Problem-Solving Ability L. Professionalism VI. Making the Customer Number One A. Establish Rapport B. Identify and Satisfy Customer Needs Quickly C. Exceed Expectations D. Follow Up VII. Enhancing Customer Satisfaction as a Strategy for Retaining Customers A. Pay Attention B. Deal with One Customer at a Time C. Know Your Customers D. Give Customers Special Treatment E. Service Each Customer Adequately F. Do the Unexpected G. Handle Complaints Effectively H. Sell Benefits, Not Features I. Know Your Competition J. Cost of Dissatisfied Customers VIII. Strive for Quality

Chapter Outline and Lecture Notes I. Customer Brand Loyalty 

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Customer brand loyalty is the term used to describe the tendency of customers to return to a product or organization regularly because of the service and satisfaction they receive. Customer brand loyalty is an emotional rather than a rational thing. Each time there is contact at a touch point where the customer and provider come together, there is opportunity for further cementing the customer relationship and loyalty or driving a wedge between the customer and organization due to failure to meet expectations or needs.

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An important point to keep in mind about customer loyalty is that it does not happen as a result of a single customer–provider encounter. o Rather, true customer brand loyalty stems from an organization’s concerted, ongoing efforts that are part of its strategic goals to meet and exceed the expectations and needs of its customers. Lasting customer relationships are built on trust. o The most important thing to remember about trust is that, without it, there is no relationship. Customer loyalty has been impacted to some degree by the advent of mobile and other types of electronic communication devices that allow consumers to easily find a way to provide feedback on products and services to others and to reach out for information that helps them make a buying decision. By using technology, customers can access product and service experts from around the world in a matter of seconds to find out about a company’s reputation, products, and services. o They can check forums and organizations that focus on gathering consumer feedback to see if an organization or person is credible and worthy of their trust and business. The key to establishing and maintaining customer loyalty is to put forth an honest and ongoing series of initiatives and efforts that demonstrate to customers that they are important to the organization. o Through words and actions, service providers can show that they are truly there to assist customers meet their needs, wants, and expectations. One way that organizations try to cement relationships and encourage customer loyalty and retention is through loyalty or rewards programs.

II. The Role of Trust  

Trust is at the heart of any relationship, especially when there is an exchange of money for products or services. For trust to start and grow, the customers must believe several things about the service providers and their organization: o Service providers and the organization have the customer’s best interests in mind before, during, and after the transaction. o Service providers and the organization are honest and forthcoming with customers and their goal is to deliver the best products and services possible in a timely manner and at a fair price. o Service providers have quality products and services that are backed by a guarantee that should something go wrong, it will be quickly and earnestly taken care of.

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For customers to continue doing business with service providers, they must trust service providers and their organization. Even when service providers win trust and achieve customer satisfaction, the customer relationship is very fragile. The good news for North American businesses is that as the economic recession and COVID-19 pandemic of the past decade are past and the economy has begun to show continued signs of growth. Customer satisfaction levels for a number of industries have begun a slow movement toward improvement on the University of Michigan American Customer Service Index (ACSI) scale of 100 possible points. While organizations are starting to gain access to more capital due to loosening of restrictions on lending and other economic factors, many low- to middle-class consumers struggle to achieve higher income flows or levels of disposable income. To gain and maintain trust, service providers and their organization must actively work toward incorporating positive values and beliefs into daily actions. o Service providers must exhibit trustworthiness in words and actions, for although it takes a long time to gain trust, it can be lost in seconds. One way that consumers are turned off from a trust standpoint is through a loss of confidence that follows a breakdown in an organization’s manufacturing and distribution processes. A. Communicate Effectively and Convincingly 

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If service providers cannot articulate or clearly explain (verbally and in writing) information in a manner that customers can comprehend and act upon, they will not believe in the service providers. Service providers must provide more than facts and figures; they must send a message of sincerity, knowledge, and honesty. As service providers communicate, they should project their feelings and emotions by being positive and enthusiastic. Service providers should communicate frequently and keep customers informed.

B. Display Caring and Concern  

Service providers must emphasize to their customers that they have their best interests at heart. Service providers must work to demonstrate that they are willing to assist in satisfying their needs.

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Too often, service providers send a message that customers are not really that important. o This can happen when service providers adopt a ―next‖ mentality and treat customers as if they were numbers, not people.

C. Be Fair  

Service providers should make sure that they treat all customers (internal and external) with respect and consistency. If a customer believes that another customer is getting something that they are not, service providers could have problems.

D. Admit Errors or Lack of Knowledge 

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Service providers are human and are expected to make mistakes. o The key is to recover from errors by apologizing, accepting responsibility, and then quickly and appropriately solving the problem or getting the necessary information. In light of the costs associated with procuring new customers and keeping current ones, Forrester Research found that when service providers exceed customer expectations in solving problems, loyalty levels rise. In an era of strong competition and product and service availability worldwide, failure to work proactively to resolve issues quickly and efficiently makes little fiscal sense and does nothing to stimulate and maintain customer loyalty.

E. Trust Your Customers 

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Most customers are not out to cheat or ―rip the service providers (or their organization) off.‖ o They just want the best value and service for their money and expect service providers to provide it. One of the most common mistakes service providers make in dealing with customers who have a complaint or problem is to verbally acknowledge and agree, but nonverbally send a message of skepticism.

F. Keep Your Word 

Customers have many choices in selecting a service or product provider. o If they feel a service provider cannot be depended upon to take action,

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they simply leave, often without complaint or comment. The goal should be to provide customers with competitively priced, reliable products or services that are delivered with little or no inconvenience or difficulty. If feasible after delivering a product or providing service, service providers should contact their customer to make sure that he or she was satisfied and that their service met expectations. o This follow-up can be an informal call, a more formal questionnaire, or a friendly e-mail or text message (assuming he or she authorized the service provider to send such correspondence).

G. Provide Peace of Mind 

Service providers should be positive and assertive. o They should assure customers through their words and actions that they are confident, have the customers’ best interests at heart, and are in control of the situation.

H. Be Responsible for Your Customer Relationships 

Customers tend to enjoy dealing more with people whom they believe are caring and have their best interests at heart. o Interacting with someone they like is a pleasant experience and is likely to encourage trust and an enhanced relationship.

I. Personalize Your Approach  

Helping one’s customers feel accepted can create a bond that will keep them coming back. To create a social bond with customers, service providers will need to take time to get to know their regular customers and serve them individually. o Recognizing them and using their names while interacting goes a long way toward creating that bond.

J. Keep an Open Mind 

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To develop and maintain an open mind, service providers should make it a habit to assess their own attitude about their job, customers, products, and services before making contact with their customers. If service providers are facing personal problems that seem overwhelming,

they should contact their supervisor, human resources, or personnel department, or any other appropriate resource to help them sort out their problems. o Failure to do so could lead to poor customer service or a less-thanprofessional image. K. Individualize Service 

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Each customer is unique and has his or her own desires and needs. o For that reason, every situation service providers handle will be slightly different. Service providers should view each person as an individual and not deal with customers on the basis of preconceived ideas or the demographic group of which they are part. By addressing a customer as an individual, listening to discover his or her personal needs and problems, and then working to satisfy those needs or solve those problems, service providers potentially create a loyal customer. A simple way of accomplishing individualized service is to ask what else the customer would like.

L. Show Respect  

Even if service providers don’t agree with a customer, they should respect his or her point of view or need, and provide the best possible service. Some easy ways to show respect to customers include: o When addressing the customer, use his or her last name and title. o Stop talking when the customer begins to speak. o Take time to address the customer’s questions or concerns. o Do not get into arguments with customers. o Return calls or e-mail messages within reasonable amounts of time. o Show up on time for scheduled meetings. o Do what was promised, and do it right the first time. o Tell customers that you value them and appreciate their business.

M. Elicit Customer Input  

Some organizations encourage rewarding customers who complain. Complaints provide feedback that can enable service providers and organizations to rapidly shift resources to fix things that are not working well to satisfy the customer.

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To increase one’s own effectiveness and that of the organization, service providers should actively and regularly seek input from their customers. o Service providers should take the time to ask the customer, and then listen and act upon what they are told.

III. The Importance of Customer Relationship Management 

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Customer relationship management (CRM) is the concept of identifying customer needs; understanding and influencing customer behavior through ongoing communication strategies to acquire, retain, and satisfy the customer. There are a number of components in the CRM process: o Operational (involving sales and service representatives) o Relational/Collaborative (involving interaction with customers through such means as e-mail) o Technological web pages and automated voice response (AVR) systems o Analytical (involving analyzing customer data for efforts like marketing and financial forecasting) Through CRM, organizations and employees get to better know their customers and project needs that can be satisfied through appropriate products and services. With B2B (business-to-business), customers are often companies. o This makes managing customer relationships more difficult because of the number of contacts one might have in an organization and the varying requirements or needs each might have. Typically, many service providers look at customer interactions from a short-term perspective. o However, a more customer-focused approach is to view customers from a relationship standpoint. o It means that service providers should strive to employ as many of the positive relationship-building skills that they have learned as possible. People usually gravitate toward organizations and people with whom they have developed rapport, respect, and trust, and who treat them as if they are valued as a person. Service providers should remember that long-term customer relationships (customer retention) are the ones that sustain organizations. In many organizations, particularly those that have contractual customers (e.g., members or subscribers), the churn rate is often an indicator of customer dissatisfaction, better targeted marketing and sales efforts or better or cheaper pricing by competitors, or factors related to service provider relationships with customers.

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o Organizations that have an ongoing high churn rate are doomed to failure. It is not unusual for customers to switch back and forth between products or organizations simply because of pricing. o This is sometimes referred to as service churn. Seeking out new or replacement customers through customer acquisition marketing, advertising, and other means is a very costly proposition. o This is because in addition to having to find new customers, service providers and their organizations have to educate and win them over. Major organizations spend millions of dollars on customer loyalty programs— an incentive program offered by an organization to reward customers for spending money and purchasing products and services. o Small businesses cannot compete on those levels. A. Benefits of Customer Relationship Management 

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When organizations attain a high degree of brand recognition and a reputation for providing quality products and services at a competitive price, while going above and beyond their customers’ expectations, they are typically rewarded with customer loyalty and repeat and referral business. Direct benefits of going above customer expectations include: o Less need to obtain new customers through marketing because current customers are aware of offerings and take advantage of them. o Reduced marketing costs because direct mail, follow-up, and other customer recruitment activities are reduced. o Increased return on investment (ROI) because marketing can target specific customer needs. o Enhanced customer loyalty due to pricing and product service offerings that meet current customer needs. o Elevated profitability due to increased sales, customer referrals, and longer customer retention during life cycle. o Targeted marketing based on statistics on which customers buy more and on high-ticket item sales. By providing excellent customer service and dealing with dissatisfaction as soon it is identified, service providers can help ensure that customers remain loyal and keep coming back. Traditionally, customers will remain loyal to a product, service, or organization that they believe meets their needs. o According to the CX Solutions, many organizations have found that effective complaint handling is crucial for maintaining customer loyalty and business success.

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Service providers must realize that customer service is everyone’s business and that relationships are the basis of that business.

IV. The Role of Channel Partner Relationships on Customer Loyalty 

A key component of managing customer loyalty is for organizations to effectively manage its channel partner relationships. o Such partners can help gain access to new business opportunities at lower costs, without having to merge or acquire more assets and employees. o This provides a more competitive posture for the organization and potentially attracts and holds customers based on reduced pricing and enhanced product and service availability. A. Three Types of Channel Partners 

There are three types of typical channel partners with which an organization might have a relationship: o Transactional or indirect—this type of organization provides a distribution outlet or link for the company’s products and services. o Tactical—this category of partners includes organizations that are intricately meshed with the company’s internal operations. o Strategic—the third type of channel partnership involves signing agreements through which one organization creates a long-term alliance with another organization to brand, develop, or produce each other’s products or services.

V. Provider Characteristics Affecting Customer Loyalty A. Responsiveness   

If customers feel that they are not appreciated or not welcome by a service provider, they will likely take their business elsewhere. A simple way to demonstrate responsiveness is to attend to customer needs promptly. Once service providers get to serve the customer, and before delivering service, service providers should greet the customer with a smile and start the interaction on a friendly note in one or more of the following ways: o Be enthusiastic—service providers should use open body language, vocal cues, and gestures to let the customers know that they are glad customers have chosen them and their organization.

o o o o

Use the customer’s title and name—if service providers know the customer’s name, they should use it. Show appreciation. Engage in small talk. Compliment.

B. Adaptability 

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In a continually evolving world, service providers will have many opportunities to deal with customers who have different beliefs, values, perceptions, needs, and expectations. o Each of these meetings will provide an opportunity for service providers to adapt their approach in dealing with others. One way to show one’s ability to adapt relates to technology. o By quickly learning and mastering new technology systems provided by the organization, service providers can respond faster and more efficiently to customer needs.

C. Communication Skills 

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One’s ability to obtain and give information well; listen, write, and speak effectively; and deal with emotional situations are keys to successful customer service. To help ensure the most effective service possible, service providers should continually strive to improve their ability to interact and communicate with a variety of people.

D. Decisiveness  

Decisiveness relates to being able and willing to decide and take necessary actions to fulfill customer needs. Taking a wait-and-see approach to customer service often leads to customer dissatisfaction. o Keeping customers waiting in order to run to someone else for a decision or answer can be frustrating. o If service providers face such barriers, they should think of alternative ways of handling them, and then approach their supervisor with suggestions for improvement. o Once service providers have supportive systems in place, they should gather information effectively, and then carefully and quickly analyze the

situation and make a decision on how to solve the problem. E. Enthusiasm  

People typically react positively to dedicated employees who appear to be enjoying themselves as they work. If service providers and their organization can generate return customers through enthusiasm, the potential for organizational growth and prosperity exists.

F. Ethical Behavior 

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With a heightened incidence of actual or alleged corporate wrongdoing, customers have been become wary of organizations, their leaders, and practices. Many organizations have formed ethics committees made up of employees from across their organization to deal with actual or perceived violations of ethical standards or organization codes. Many organizations have adopted a code of ethics or codes of conduct that are taught to all employees, new and old, and to which they are held accountable. o By having a written standard of conduct, organizations demonstrate to customers that they are concerned for their welfare and have the intention of operating in an ethical manner. Establishing (and maintaining) high legal, social, and ethical standards in all interactions with customers is imperative. o Failure to do so can lead to loss of reputation and business, and/or legal liability.

G. Initiative 

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Taking an action related to one’s job or customer service without having to receive instructions from others is a sign of initiative. o Such actions also help to ensure that customer’s needs are identified and met in a timely fashion. Initiative does not only apply to external customer situations. o Actions around the boss and coworkers (internal customers) also send powerful messages about your initiative.

H. Knowledge

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Customers expect the service providers to know about their business organization. With all the products and service variations available to customers, the high level of technology, deregulation of industries, and innovations coming on the market daily, customers depend on service providers to educate and guide them in making purchases and decisions. If the organization service providers work for does not provide training or resources, service providers should take the initiative to ask supervisors or team leaders for materials and information. o They should also develop a network with other employees throughout the organization and use that network to gain access to information.

I. Perceptiveness  

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Recognizing the need to pay close attention to verbal and nonverbal cues, cultural factors, and the feelings or concerns of others is important. By staying focused on customers and the signals they send, service providers can often recognize hesitancy, interest in a product or adamant rejection, irritation, anxiety, and a multitude of other unspoken messages. o Once service providers have identified customers’ signals, they can react appropriately and address their needs. One way service providers can address customer needs is to anticipate them, depending on where they work. o By taking care of the customer’s basic needs, service providers might encourage him or her to shop longer and return in the future.

J. Planning Ability 

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Planning is a crucial skill to possess when operating in today’s fast-paced, changing customer service environment, especially in technology-based environments. o To prepare for all types of customer situations, service providers and their organization must assess various factors related to the organization, industry, products, services, policies and procedures, resources, and customer base. Service providers should also consider alternative strategies for dealing with unusual situations—contingency plans. o Such alternatives are helpful when things do not go as originally planned.

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The basic steps of the planning process model are: o Set a goal—in a customer service situation, the obvious goal is to prevent problems from occurring. o Examine and evaluate the situation—in this phase of planning, service providers should look at all possible factors that could affect a customer interaction. o Identify alternatives—service providers should meet with peers and supervisors or team leaders to develop a list of alternatives for dealing with various customer situations. o Select the best alternatives—after reviewing all the options, service providers should select the one (or more) that best addresses the targeted goal of providing quality service to customers. o Create an implementation plan—working with peers and supervisors or team leaders, service providers should decide which resources (human and otherwise) will be needed to deliver effective service.

K. Problem-Solving Ability 

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If a customer has a problem, service providers have a problem. o Remembering this simple concept can go a long way in reminding service providers of their primary purpose. Service providers’ primary job function is to address the needs of their customer. o To do this when a customer is dissatisfied or has a concern, service providers should take responsibility for the problem instead of trying to place blame and defer the issue to someone else. Problem resolution is not difficult if it is approached systematically.

L. Professionalism 

Projecting a positive personal image—through manner of dress, knowledge, appearance of one’s work area, and one’s mental attitude—is a crucial element in communicating an ―I care‖ image to customers and potential customers. o By paying close attention to such factors, service providers better position themselves to establish and maintain a strong customer relationship.

VI. Making the Customer Number One

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Most people like to feel that they are important and valued. o By recognizing and acting on that fact, service providers can go a long way toward providing solid customer service, reducing churn, and building a strong relationship with customers. Some companies call a service encounter the moment of truth or refer to them as contact points, in which the customer comes into contact with some facet of the organization. o At each stage of interaction with a customer, service providers have an opportunity to provide excellent customer service. A. Establish Rapport 

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Customers react to and deal effectively with employees whom they perceive as likable, helpful, and effective. o Throughout the interaction, service providers should continue to be helpful, smile, listen, use the customer’s name frequently, and attend to the customer’s needs or concerns. When something goes wrong, people who feel a kinship with service providers typically give higher ratings on the relationship-rating point scale than people who do not feel this connection.

B. Identify and Satisfy Customer Needs Quickly  

Service providers should use their questioning, listening, observing, and feedback skills to focus on issues of concern to the customer. By effectively gathering information, service providers can then move to the next phase of customer service.

C. Exceed Expectations  

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Customers typically expect that, if they pay a certain price for a product or service, they will receive a specific quality and quantity in return. Today’s customers tend to be better-educated consumers who recognize that if they cannot fulfill their needs in one place, they can easily access the same or similar products and services on the Internet or by visiting a competitor. Many terms are used to describe the concept of exceeding expectations— knock-their-socks-off service, positive memorable customer experiences, Eplus service, customer delight, dazzling service, stellar customer service, fabled service, and five diamond or five-star service. o All these phrases have in common the concept of going above and

beyond customer expectations—under-promise and over-deliver. D. Follow Up 

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Service professionals regrettably often overlook follow-up, although it can be one of the most crucial in establishing long-term relationships. o Follow-through is a major factor in obtaining repeat business. After service providers have satisfied a customer’s needs, they should follow up with the customer on his or her next visit or via mail, e-mail, or telephone to ensure that he or she was satisfied. o The prime objective is to let them know that the service provider has not forgotten them and appreciates their business and support.

VII. Enhancing Customer Satisfaction as a Strategy for Retaining Customers 

By providing a personal, professional strategy, service providers can help ensure that customers return. o This is because building good relationships in order to increase customer satisfaction is valuable—it can lead to repeat business—the key to keeping a business productive and profitable. A. Pay Attention  

As service providers listen, they should focus all their attention on the customer in order to identify and address his or her needs. If service providers are serving in person, they should use positive nonverbal cues (e.g., face the customer, smile, use open gestures, etc.) and language.

B. Deal with One Customer at a Time  

Service providers cannot effectively handle two people (on the phone or in person) simultaneously. When more than one call or customer comes in at the same time, a service provider should seek assistance, or ask one of the customers either if it would be possible for him or her to wait or if he or she might get back to the customer at a later time.

C. Know Your Customers 

Knowing one’s customer is crucial with long-term customers, but it is also

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important with everyone. Service providers could use notes or their computer to keep a record of conversations with customers. o They can review or refer to these notes in subsequent encounters. o This avoids having customers repeat themselves, and they will feel ―special‖ because a service provider remembered them.

D. Give Customers Special Treatment 

Service providers should try to take the time for a little small talk occasionally. o This will help them learn about their customers and what’s important to them.

E. Service Each Customer Adequately  

Service providers should take the necessary time to handle their customer’s questions, complaints, or needs. If service providers have a number of customers on the phone or in person, they should service one at a time and either ask to get back to the others or get help from a coworker, if possible.

F. Do the Unexpected 

Service providers should not just provide service, they should provide exceptional service. o They should provide additional information, offer suggestions that will aid the customer, send articles that may be of interest, follow up transactions with calls or letters to make sure that needs were met, or send cards for special occasions and to thank customers.

G. Handle Complaints Effectively 

Service providers should treat complaints as opportunities to redeem missed service expectations and handle them effectively. o They should acknowledge any error on their part and do everything possible to resolve the problem quickly and to the customer’s satisfaction.

H. Sell Benefits, Not Features

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Salespeople focus on benefits and not feature of a product or service. o A feature differs from a benefit in that it is a descriptive aspect of a product or service. Service providers should show each customer how their product, service, or information addresses his or her needs. o If the product or service doesn’t fit their needs, service providers should admit it and offer any available alternatives. o The customers will appreciate the service provider’s honesty, and even if the provider can’t help them, they will probably return in the future out of trust.

I. Know Your Competition 

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Service providers should stay abreast of what other, similar organizations are offering in order to counter comments about them. o This does not mean that they should criticize or belittle their competitors or their products and services. Staying aware of the competition helps service providers describe and offer the products, services, and features of their organization that are comparable to those being offered by others.

J. Cost of Dissatisfied Customers 

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The cost of dissatisfied customers is a phrase that refers to any formula used to calculate the cost of acquiring a new customer or replacing a current one as a result of having a dissatisfied customer leave an organization. Service providers must not look at the loss of a sale as a single event but one that can cost the organization a lot.

VIII. Strive for Quality 

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A final strategy for helping to increase customer loyalty relates to the quality of service that service providers and their organization provide. o A customer’s perception of quality service is often one of the prime reasons for his or her return. Terms such as total quality management (TQM) and continuous quality improvement (CQI) are often used in many industries and by manufacturers to label the goal of improvement. o Quality service involves efforts and activities that are done well and meet or exceed customer needs and expectations.

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On a personal level, service providers can strive for quality service by working to achieve an Exemplary rating on the relationship-rating point scale. o If service providers do not adopt a professional attitude and continually strive to improve their knowledge, skills, and efforts in dealing with customers, failure and customer dissatisfaction can result.

Class Activities and Sample Assignments 16. Read chapter ten. (LO 10-1 through 10-8) 17. Ask students to discuss a customer loyalty program that they are part of. Examples include coffee punch cards, airlines, and credit cards. Ask them to talk in groups about their program and if it encourages customer loyalty. (LO 10-3) 18. As a group or individual project, have students design their own customer loyalty program and present it. It can be for their current organization or one they have worked for in the past. (LO 10-3) 19. Ask students to discuss in groups a proper procedure for handling customer complaints based on the information in the chapter. Then, if there is time, ask students to present their ideas and have the class vote on the best presentation and ideas. (LO 10-7) 20. Ask students to research TQM and the Malcolm Baldrige awards. What are the criteria for the award? What organizations have recently been awarded this honor? (LO 10-8)

Ethics in the Workplace The Importance of Ethical Behavior (LO 10-5) To raise awareness of the importance of ethical behavioral in customer service, have each student research at least two examples (other than those listed here) of companies or organizations that have not acted ethically in a variety of situations (e.g. BP oil spill, Valdez oil spill, Denny’s racial discrimination, and Enron financial scandal) and the results of their behavior. In class, either form small groups and have them discuss what they found or lead a classroom discussion where each student presents an example found.

Have students discuss the impact of lack of ethical judgment on the company involved, its employees, and customers. Instructor Debrief Notes After your students share what they have found through their research, spend some time defining ethical behavior. Stress how crucial it is for organizations and all employees to take the ―high road‖ in actions and deeds. Whether dealing with current or potential customers, or projecting a professional image to the public, thinking before acting can prevent negative reactions from others. Ethical behavior has a direct link to trust and trust is a critical component for building relationships. Without trust, customers go away and organizations die.

Discussion Opportunities 1. What happens when trust is broken in a customer service relationship? Can this trust be repaired? (LO 10-2) 2. What is the actual financial cost of poor customer service? How can you calculate this? (LO 10-3) 3. What do you think defines average customer service and great customer service? Describe an example of both. (LO 10-6) 4. What are some ways to measure the level of customer satisfaction? How would you implement these measurement tools as a manager? (LO 10-6) 5. Using the relationship-rating point scale, describe and assess the transaction. (LO 10-2 through 10-7)

In the Real World Notes (p. 411) Wholesale—Costco Costco started the wholesale warehouse phenomenon in 1976 under the name Price Club in a converted airplane hangar in San Diego, California. The company found it could achieve greater buying power by serving small businesses and a select audience of non-business customers.‖

In 1983, a Price Club employee, James Sinegal, and Jeffrey Brotman, a lawyer from an old Seattle retailing family, opened the first Costco, a wholesale distribution center in Seattle. Ten years later, Costco merged with Price Club, owned by Sol Price and his son Robert, to become PriceCostco. The company became the first to grow from zero to $3 billion in sales in less than six years. After Price left the company in 1994, the organization formally changed its name to Costco in 1997. As of 2018, Costco had 782 warehouses in 11 countries staffed by 275,000 employees. The formula for success obviously worked because the company has flourished into a worldwide brand with a total of over $149.35 billion in sales in 2019. With a large membership base and a philosophy of keeping prices down and passing savings along to members, the company continues to flourish and outsells its nearest competitor Sam’s Club. Although Costco shoppers pay an annual membership fee, it has been reported that around 90 percent of their members renew their memberships each year. Today, besides food and household items, Costco facilities provide a variety of services. In addition to providing quality goods at the lowest prices possible, the organization strives to take care of its employees, operate efficiently in an environmentally responsible manner, source merchandise in a sustainable manner, and support the communities where its employees and members work and live. 1. What do you personally know about Costco, and how does this impact your perspective of the company as a current or potential customer? Answers will vary. Some students or their families may be Costco members, or have at some point in time shopped there with a member. Others may feel that becoming a member is only a cost savings for families, not individuals. Some may disagree with the concept of having to pay a store in order to shop there; it can be viewed as discriminatory. 2. From a customer perspective, why do you think some companies like Costco have flourished when other retailers have not? Answers will vary. The longevity of any successful firm or establishment depends on how they treat customers and whether or not they live up to their claims—in this case, providing quality merchandise at the lowest possible prices and allowing for returns. Costco has also continued to expand its product and service offerings. Today, in addition to food and household items, Costco facilities provide a variety of services including auto, electronics, jewelry, travel, insurance, appliances, gas, pharmaceuticals, hearing aids, photo processing, and more.

3. What role do you think management decisions to improve services since its inception have impacted customer service from Costco? Explain. Answers will vary. Management is one of the leading factors contributing to a company’s success. Decisions made by management are paramount to determine the direction the company is headed. From the start, PriceCostco grew from zero to $3 billion in sales in less than six years. With a large membership base and a philosophy of keeping prices down and passing savings along to members, the company continues to flourish. Management understands what kind of price savings customers demand in order to be willing to pay a membership fee. Additionally, Costco has a return policy that guarantees almost all of their products with a full refund. Exceptions include electronics and telephones that have a 90-day return window. Such return policies entice customers to purchase more expensive items, such as electronics, jewelry, and hearing aids without fear. 4. What positive aspects about the company do you think help contribute to its worldwide success and reputation? Explain. Answers will vary. Their formula for success obviously worked because the company has flourished into a worldwide brand with a total of over $149.35 billion in sales in 2019. As of July 2018, Costco had 782 warehouses in 11 countries staffed by 275,000 employees. The communities where Costco builds benefit by increased employment and economic growth. They have also gained a reputation for operating efficiently while being environmentally responsible and sourcing their merchandise in a sustainable manner. 5. Would you like to work for a company like Costco? Why or why not? Answers will vary. The decision to work for Costco will depend on students’ interest in the sector. However, the Costco commitment to its customers, its focus on the environment, and its dedication to the local communities it serves may encourage some of the students to seek employment with Costco.

Work It Out Notes Work It Out 10.1—Preventing Customer Defection (p. 420) Working in groups of three to five members, students are asked to create a list of

industries or companies that they know of that offer incentives to new customers, seemingly at the expense of existing ones. Ask students to discuss the impact that such policies have on existing customer loyalty. Also, ask them to talk about actions that customers might take as a result of such initiatives and how a frontline service provider might help stem such behavior. Work It Out 10.2—Problem Solving (p. 425) This is a typical customer service situation. A customer has purchased a lamp but realizes the person she bought it for already has this exact one. She doesn’t have the receipt, but she remembers the name of the salesperson (who no longer works there). You are allowed to give refunds up to $50 but only with a receipt. Ask students what they would do in this situation, and try to encourage them to think of creative ways to solve the situation. For example, they might try to find another item for the customer to replace the lamp and only have to make an exchange. If the customer isn’t willing to do this, offering her the refund despite the company policy is probably the best way to keep this customer. Work It Out 10.3—Showing Respect (p. 426) This box simply asks students to discuss how they can show respect for customers. Ask them to work on this in groups and brainstorm a comprehensive list to put on the whiteboard or flip charts. You can also ask students to rank their ideas from most important to least important. Or, to make it more interesting, have groups exchange their lists and rank each other’s lists. Work It Out 10.4—Personal Customer Relationship Experiences (p. 433) This box asks students to reflect on a place that they are loyal to and list the qualities of the customer service provider. It may be as simple as the Starbucks person knowing their name or knowing what they like to drink. Ask students, based on this list, to set some goals on things they can do to mimic the great customer service they receive. Work It Out 10.5—Personal Service Expectations (p. 436) This box is very general, as it asks students how they would expect to be treated if they were a customer of the company for which they currently work. Ask students to discuss in groups and then cite reasons why customers are not always treated that way at the students’ organizations.

Work It Out 10.6—Passing Time (p. 438) Everyone’s concept of time is different and this exercise illustrates that. Have students get into groups and say go. Then have one student stop the other when they think 15 seconds (or 1 minute or 2 minutes if you have time) has elapsed. This shows that when people are waiting in line, for example, the time will go much slower than time normally feels. This is an important concept to realize when students work with customers who must wait for periods of time to get service. Work It Out 10.7—Preparing for Contingencies (p. 442) This box asks students to consider situations in which things might not work out as planned. For example, a system goes down so you can’t see appointment times or a website goes offline. Ask students what should be said to the customer by the service provider and what should be done until the situation is resolved. Then, you can discuss the importance of contingency plans and the role they play in providing excellent customer service. Work It Out 10.8—Personal Customer Experiences (p. 446) This box asks students to self-assess their own ability to deal with customers. It asks students what someone would write about them if handed a piece of paper as soon as an interaction is over. What comments do the students think would be said about them? Then, ask students to write down what they could change if the comments weren’t good. Work It Out 10.9—Strategies for Making Customers Number One (p. 447) This box asks students to think about strategies they might use to make customers number one. This activity can be important because oftentimes students are told what needs to be done but not told how to actually do it. Consider making this a longer assignment or even a final project. Have students work in groups to write a report on action plans for improving customer service in their own organizations.

End-of-Chapter Material Notes Key Terms 

Channel partner (p. 434)

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Churn rate (p. 430) Code of ethics (p. 439) Contact point (p. 445) Contingency plan (p. 443) Cost of dissatisfied customers (p. 452) Customer acquisitional marketing (p. 431) Customer brand loyalty (p. 413) Customer loyalty program (p. 431) Customer relationship management (CRM) (p. 428) Customer relationship (p. 429) Customer retention (p. 430) Customer satisfaction (p. 418) CX Solutions (p. 433) Moment of truth (p. 445) Omnichannel (p. 451) Planning process model (p. 443) Total quality management (TQM) and continuous quality improvement (CQI) (p. 453) Touch point (p. 413) Trust (p. 417)

Review Questions 1. How can you build customer trust? One can build customer trust by communicating effectively and convincingly, displaying caring and concern, being fair, admitting errors or lack of knowledge, trusting the customers, keeping one’s word, providing peace of mind, taking responsibility for customer relationships, personalizing the approach to customers, keeping an open mind, and individualizing service. 2. What are some key reasons why customers remain loyal to a product, a service, or an organization? Some key reasons for customer loyalty are: service representatives who are knowledgeable, helpful, have excellent communication skills, and care about their job and customers; service and assistance that is readily available and easily accessible 24/7/365 and in a variety of formats (e.g., telephone, fax, Internet, face-

to-face); and unique products that differentiate you from competitors, creating a one-stop shopping experience where customers can obtain multiple types of products and services at one location. Also, having a flexible return policy and quality products can create loyalty. 3. What are some of the provider characteristics that affect customer loyalty? Some of the provider characteristics that affect customer loyalty are responsiveness, enthusiasm, adaptability, communication skills, decisiveness, ethical behavior, initiative, knowledge, perceptiveness, planning ability, problemsolving ability, and professionalism. 4. What are the steps in the planning process model? Describe. The steps in the planning-process model include setting a goal, examining and evaluating the situation (i.e. what needs to be done to meet the goal), identifying alternatives, selecting the best alternatives, and creating an implementation plan. 5. What are six common customer needs? The six customer needs are to feel welcome, to feel understood, to be comfortable, to be appreciated, to feel important, and to feel respected. 6. What are ways for service providers to take responsibility for customer relations? Service providers can engage in customer surveys and make changes based on the feedback from the customer. They can simply talk with the customers about how well the customer feels the organization is doing and make changes or provide additional training where necessary. Service providers can also be more aware of their own responsiveness to customer needs. 7. What are some techniques for making the customer feel that he or she is No. 1? Some techniques for making the customer feel that he or she is number one is by making a positive initial contact, establishing rapport, identifying customer needs and exceeding customer expectations, and following up.

Collaborative Learning Activity

This activity first asks students to create a list of things that frustrated or dissatisfied them with regard to service received from a provider. This is a great activity in groups and can take up to 20 or 30 minutes, or you can ask students to create a quick list on flip charts or on the board. The second part of this activity asks students to take a field trip around town and note the things that organizations are doing to encourage and discourage customer loyalty. The purpose of this activity is to help make students aware that in all businesses, either one or the other is encouraged. Signs such as ―restrooms for customers only‖ or ―must have exact change‖ do not create the kind of customer service environment that breeds customer loyalty. The next part to this activity asks students to survey people (at least 10) of different age groups and cultural and ethnic backgrounds and ask for their feedback on customer-service-related issues. This would be a great end-of-class project in teams. To take it a step further, ask students to report not only on their findings but also to make suggestions as to what can be done to meet the needs of the customers, similar to a customer service strategy, for the business of their choice. The final part of the activity asks students to list organizations of which they are a loyal consumer and describe what those organizations offer to earn their loyalty.

Face-to-Face—Assessing the Need for Reorganization at Get Away The situation described is a failing travel business and the new manager, although not publicly announced yet, has been put in charge of figuring out why the organization isn’t doing well while competitors are doing well. The manager goes on a covert mission before actually working for the company and places phone calls and makes office visits. During this ―mission‖ the student finds very poor customer service, both in person and on the phone. The case asks students to describe how they would tell the owners of the business about the situation and what they would do to improve the situation. To take this case a step further, you could ask students to develop a training manual or training presentation for the employees of the organization, addressing customer service specifically. 1. What impressions of the travel agency did you have as a result of your initial phone call? Students will most likely point out problems with getting service by phone—put on hold, excuses, insufficient call-backs; customer service by phone appears to be a recurring problem. 2. How did your office visit affect you?

Visiting the agency in person supported the initial impression of poor service. In addition to a staff shortage that day, the greeting was impersonal and almost rude, and the physical condition of the office was sloppy and in disarray. A cluttered, unorganized office would imply that the agency would be the same way with planning a client’s trip or scheduling flights. 3. What will you tell Marsha and Connie about employee professionalism? Students will most likely report that employee professionalism is lacking. It sounds like Marsha and Connie are seldom in the office to assess the climate. Do employees really feel they are so swamped? Why? Are they trustworthy and feel they are stakeholders in the agency’s future? Is low employee morale affecting treatment of the customers? Perhaps their employees need some retraining. 4. What customer needs are being overlooked in this scenario? Reasons for choosing to use a travel agency include ease of planning, getting tickets without the search, receiving knowledgeable advice, etc. With phones on hold, no prompt call-backs, and an uninviting office, the employees are ignoring practically every reason why a person would use an agency. 5. In what ways can this situation be improved? Student answers will vary, but many may refer to the role of trust in customer service relationships. The owners must get to the heart of why there has been such high employee turnover in the past six months in order to determine what to do next to get back on track.

Chapter 11 Managing Your Time Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 2 Class Activities and Sample Assignments..................................................................... 17 Discussion Opportunities ................................................................................................ 8 Work It Out Notes ............................................................................................................ 9

Work It Out 11.1—Managing Wait Times .................................................................... 9 Work It Out 11.2—Time Passages .............................................................................. 9 Work It Out 11.3—Eliminating Time Wasters .............................................................. 9 End-of-Chapter Material Notes ........................................................................................ 9 Key Terms ................................................................................................................... 9 Review Questions ....................................................................................................... 9 Collaborative Learning Activities ............................................................................... 14 Face-to-Face—Handling Change at a Call Center .................................................... 14

Learning Outcomes LO 11-1 Realize how time reality and perceptions of time differ. LO 11-2 Recognize the need for effective time management. LO 11-3 Prioritize daily tasks. LO 11-4 Apply techniques that save time while you are serving customers. LO 11-5 Use time usage criteria to reclaim time.

Brief Chapter Outline I. Why the Need for Effective Time Management? II. Where Does the Time Go? A. Time Reality B. Time Perception III. Prioritizing Your Time A. Guidelines for Setting Priorities 1. Judgment 2. Relativity 3. Timing B. Prioritizing System 1. Priority A—Must-Do or Critical Items 2. Priority B—Should Do 3. Priority C—Nice to Do IV. Saving Time While You Serve A. Time Management in Face-to-Face Situations B. Time Management on the Run C. Time Management and Technology 1. Telephone Management 2. Voice Mail Management 3. E-mail Efficiency V. Strategies for Reclaiming Time

Chapter Outline and Lecture Notes I. Why the Need for Effective Time Management? 

Time management is the systematic practice of categorizing daily activities, identifying and eliminating factors that interfere with efficiency, and developing



  

effective strategies for getting the most out of the time available. Four important positive results can come from effective time management in the workplace: o Elevated productivity through a more efficient approach to accomplishing tasks and dealing with customers. o Reduced stress levels, which can benefit you personally and can also make life easier for those around you since you will probably be calmer and seem more in control. o Increased self-satisfaction from confidence in your ability to get the job done professionally and in a more competent manner. o Improved quality of life, for good time management habits on the job can expedite the accomplishment of tasks and reduce the amount of overtime or extra hours needed to ―catch up.‖ This is time you can spend doing the things you enjoy in life either on or off the job. Customer service is a very rewarding, but stressful profession. The amount of time you have or do not have available for each customer has an important effect on your actions. Knowing how to manage your time can lead to fulfilling workplace experiences, satisfied customers, and self-satisfaction.

II. Where Does the Time Go? A. Time Reality  



Everyone has the same amount of time each day. Some people use their time more efficiently than others do. Even if you can squeeze out a few minutes here and there, those precious minutes can help you efficiently deal with your time reality and more effectively serve your customers or accomplish other tasks. Time reality is the acceptance of the fact that each person has only a finite amount of time each day to accomplish tasks and to enhance its usage.

B. Time Perception  

Time perception is the manner in which time is viewed as being either polychronic or monochronic. Time seems to pass slowly when the mind is not actively engaged or proactively performing and being stimulated. Alternatively, time seems to go quickly when the mind is involved in some sort of mental activity or you are enjoying what you are doing. You should try to engage your customers so

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they will not become preoccupied with the passage of time. Setting priorities is the process of deciding which factors or elements have greater importance and placing them in a hierarchy.

III. Prioritizing Your Time  

Prioritizing time relates to how someone decides the importance of various tasks and the order in which they are dealt with. A crisis manager is a person who waits until the last minute to address an issue or take an action. The result is that others are then inconvenienced and have to shift their priorities to help resolve the issue. B. Guidelines for Setting Priorities 

Setting priorities is the process of deciding which factors or elements have greater importance and placing them in a hierarchy. 1. Judgment    

You are the best judge of what you can accomplish in any given day. You know your strengths and what has to be done. Make sure to leave spare time to deal with unexpected events that might occur during the day. Remember that the priorities that have the most impact on customers and others should be placed high on your list. When you find that you have more high priorities than you have time, you may need to ask for help or guidance from your boss.

2. Relativity  

Some tasks and projects are readily rated higher than others. Let the question ―What is the best use of my time?‖ guide your actions.

3. Timing   

Once you begin a task, there must be enough time to finish it. If this is not possible, you may have to reprioritize or seek assistance. Be realistic about the time it will take to complete a task. Capitalize on your peak period and schedule high-priority tasks during that time, if possible.

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Circadian rhythm is the physiological 24-hour cycle associated with Earth’s rotation that affects metabolic and sleep patterns in humans as day displaces night.

C. Prioritizing System 

To set up a priority system, list the pending activities and group them according to their level of importance. 1. Priority A—Must-Do or Critical Items 

Some things must be done because of management directives; local, state, or federal regulations; importance to customers or clients; deadlines; or opportunities they provide for your success or advancement.

2. Priority B—Should Do 

Although these items may contribute to customer satisfaction and improved performance, they are not essential or do not have critical deadlines.

3. Priority C—Nice to Do 

These tasks are not a direct link to customer satisfaction. They may even be fun or interesting but could be omitted or left undone.

IV. Saving Time While You Serve 

In addition to prioritizing, many strategies can save time and result in a better quality of customer service. 1. Allocate enough time to handle customer issues. 2. Observe other service providers as they serve you and make mental notes. 3. Be prepared to serve by having available the information and materials you need. A. Time Management in Face-to-Face Situations

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By building effective relationships, you have a better chance of ensuring that interactions between customers and others in the workplace will be positive. Time management face-to-face refers to techniques for increasing time efficiency when dealing with customers. Techniques for time management face-to-face: 1. Recognize the value of a customer’s time and show a service orientation. 2. Get the customer busy. 3. Give the customer something to read. 4. Have the customer take a number.

B. Time Management on the Run 

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If your job involves traveling to a client’s site or if you work at or travel between remote locations, transit time can take a big chunk out of your day, and it is important to recognize how to best use your time. Time management on the run refers to strategies for using downtime effectively to accomplish small tasks or be creative. 1. Prepare in advance. 2. Plan visits during non-rush-hour traffic. 3. Group appointments. 4. Confirm your appointments. 5. Invest in a mobile phone. 6. List to audiobooks or podcasts.

C. Time Management and Technology  

Time wasters are events, people, items, and other factors that create unnecessary loss of time. Time management and technology refers to the ability to use technology to improve effectiveness and efficiency in a service environment. 1. Telephone Management   

Telephone management refers to strategies for the effective use of the telephone and associated equipment in communicating. Strategies for better managing your time when using the telephone: 1. Establish objectives before making your calls.

2. Prepare for the call by making a list of topics you wish to address. 3. Screen your caller as soon as someone answers the telephone. 4. Measure your activity periodically to determine how well you are doing at meeting your objectives. 5. Keep the customer informed by returning to the call every 20 to 30 seconds if you have placed them on hold. 6. Be efficient and service-oriented by avoiding transferring customers numerous times to different people. 2. Voice Mail Management  

 

Voice mail management refers to a system for creating outgoing messages and leaving messages on an answering system effectively. Service providers abuse voice mail systems when they decide to send all their calls to voice mail. These systems should be a backup, not a replacement. Callers abuse voice mail systems by hanging up when they realize they have reached a machine or leaving inadequate information. When you reach a voice mail, you should leave your name, the time and date of the call, your phone number, and a brief message. Long, drawnout messages may irritate or offend the recipient.

3. E-mail Efficiency  

E-mail management refers to a system of providing organizational guidelines for effective use of e-mail systems. Check and return e-mails at scheduled times throughout the day.

V. Strategies for Reclaiming Time  

Strategies for reclaiming time are techniques to eliminate time wasters and to become more effective and efficient. Examine your time usage in terms of the following three criteria: 1. Necessity. Scrutinize each activity to be sure that it is necessary and contributes in some way to better customer service. 2. Appropriateness. Once you have identified essential functions, determine who should be doing them and adjust your workload accordingly. 3. Efficiency: Consider how effectively you are performing.

Class Activities and Sample Assignments 26. Ask students to get into discussion groups for onsite/on-ground courses, and discuss any of the questions you choose from the discussion opportunities section below. (LO 11-1 through 11-5) 27. Organize students into the following groups: one group is allowed to use their cell phone, one group is allowed to work on a school assignment, and one group is not allowed to do anything. Set a timer for two minutes. At the end of the two minutes, have each person estimate how much time passed and compare the answers between groups. (LO 11-2) 28. Ask students to create a prioritizing system using the guidelines in the Prioritizing System section, and then use that system to prioritize their school tasks for the week. In class, ask students to share what they discovered about their time management and prioritization. (LO 11-4) 29. Ask students to apply at least two of the tips provided in the Time Management and Technology section for one week. In class, ask them if these techniques had an impact on their productivity or stress level, or if they impacted the students in other ways. (LO 11-4) 30. Ask students to use Figure 11.2 to track their daily activities for a week. Then have them examine their time usage using the criteria provided in the text. (LO 11-5)

Discussion Opportunities 6. How can mismanagement of your time outside the workplace impact how you provide customer service? (LO 11-1) 7. Think of examples in customer service situations in which waiting is inevitable. What can be done in these situations to make the waiting time feel like it passes more quickly? (LO 11-2) 8. Do you have guidelines you use when setting priorities? What have you found works well for you? What hasn’t worked? (LO 11-3) 9. How have you seen technology effectively used to improve the customer service experience? How have you seen it used in a way that made the customer service

experience worse? (LO 11-4) 10. What activities do you have in your regular schedule that aren’t necessary? Do you have any that should be done by someone else? Is there a way to perform any of them more efficiently? (LO 11-5)

Work It Out Notes Every chapter has several Work It Out sections that ask the students to think about the material a bit deeper and relate it to their own life. This section will provide notes for class discussion for each of these Work It Out topics. Work It Out 11.1—Managing Wait Times (p. 11-4) This box asks students to brainstorm ways to reduce wait times and frustration for customers. If they were the customer, do they believe the strategies they have identified would improve customer service? Why or why not? What obstacles might prohibit implementing the strategies? You can facilitate a discussion about the pros and cons of the suggested strategies and ways to modify the strategies to overcome the identified obstacles. Work It Out 11.2—Time Passages (p. 11-6) This box asks students to add to the list of slow and fast time passages provided earlier in the chapter, and to think about their own experiences as a customer. Additional items for slow time passage might include waiting for a device to charge, waiting for a stoplight to change, or waiting for food to cook. Additional items for fast passage of time might include watching an enjoyable television show, reading a book, or playing a game. Ask students to share their answers and experiences. Work It Out 11.3—Eliminating Time Wasters (p.11-13) This box asks students to take ten minutes to develop a list of typical time wasters for service providers. Have students gather in groups and share answers, and then come up with strategies for how these time wasters can be avoided.

End-of-Chapter Material Notes Key Terms

              

Circadian rhythm (p. 11-7) Crisis manager (p. 11-6) E-mail management (p. 11-13) Prioritizing time (p. 11-6) Setting priorities (p. 11-6) Strategies for reclaiming time (p. 11-13) Telephone management (p. 11-11) Time management (p. 11-3) Time management and technology (p. 11-11) Time management face-to-face (p. 11-9) Time management on the run (p. 11-10) Time perception (p. 11-4) Time reality (p. 11-4) Time wasters (p. 11-10) Voice mail management (p. 11-12)

Review Questions 11. What are some reasons for practicing good time management? 

 

By thinking about factors that inhibit effective productivity and coming up with strategies for improving time usage, you can gain insights into ways to handle a variety of personal and workplace situations. By better managing your time, you can improve your job performance and better serve your customers. If you learn to manage your time outside the workplace, you can apply that skill to your job.

12. What are four major positive results of good time management in the workplace? Four major positive results are:  Elevated productivity through a more efficient approach to accomplishing tasks and dealing with customers  Reduced stress levels, which can benefit you personally and can also make life easier for those around you since you will probably be calmer and seem more in control  Increased self-satisfaction from confidence in your ability to get the job done professionally and in a more competent manner  Improved quality of life, for good time management habits on the job can

expedite the accomplishment of tasks and reduce the amount of overtime or extra hours needed to ―catch up.‖ This is time you can spend doing the things you enjoy in life either on or off the job 13. What are three standards for prioritizing activities? Three standards for prioritizing activities are:  Judgment. When selecting priorities, remember that the ones having the most impact on customers and others should be placed high on your list. On the other hand, do not put so many priorities on a daily list that you will not get them done.  Relativity. Some tasks and projects are readily rated higher than others. Let the question ―What is the best use of my time?‖ guide your actions.  Timing. Once you begin a task, there must be enough time to finish it. If this is not possible, you may have to reprioritize or seek assistance. Be realistic about the time it will take to complete a task. Make sure that you schedule that much time, plus a little extra, on your daily planning sheet. 14. What are the three priority levels for daily activities? The three priority levels for daily activities are:  Must-do. Things must be done because of management directives; local, state, or federal regulations; importance to customers or clients; deadlines; or opportunities they provide for your success or advancement.  Should-do. Items in this category are of ―medium‖ value. Although they may contribute to customer satisfaction and improved performance, they are not essential or do not have critical deadlines.  Nice-to-do. Includes tasks that are not a direct link to customer satisfaction. They may even be fun or interesting but could be omitted or left undone. Postponing or scheduling such priorities until a slower time period will likely have little or no effect on customer service. 15. What can you do to save time while serving a customer? A key to effective service is to allocate enough time to handle customer issues. With experience, you will get better at doing this and at estimating how much time you need for various situations. Until then, talk to other experienced service professionals, your boss, and your customers to find out how long a task should normally take. Also, observe other service providers as they serve you. Make mental notes of the efficient and effective things you hear and see and avoid those

things you perceive as ineffective time management techniques. Also, be prepared to serve by having available the information and materials you need so that you do not have to search for something while your customer waits. 16. What are some time management techniques you can use in face-to-face service situations? Some time management techniques you can use include:  Recognize the value of a customer’s time and show a service orientation.  Get the customer busy. If you need to do other things or wait on other customers, try to get a waiting customer actively involved in doing some task (e.g., filling out necessary forms).  Give the customer something to read. Depending on the situation and the type of organization, you might give the customer new product brochures or other literature to read while they wait.  Have the customer take a number. Such systems were designed to let customers know where they are in the line for service, keep customers moving, and save service providers the unpleasant and time-consuming task of having to deal with angry customers who think that other customers have been served out of turn. 17. How can you increase time efficiency when providing service ―on the run‖? Techniques you can use to increase time efficiency include:  Prepare in advance. Make sure that you schedule your appointments far enough in advance to allow for emergencies. Gather the materials and information you will need well before the scheduled date and time.  Plan visits during non-rush-hour traffic. If possible, schedule client or customer visits when traffic is not snarled, and transit times can be reduced.  Group appointments. Setting up more than one appointment in the same geographic area can save you and your customers time, effort, and frustration while reducing your travel miles.  Confirm your appointments. Take the time to e-mail, text, or call your customer or client before leaving for an appointment.  Invest in a mobile phone. In today’s changing world, cell phones have become indispensable. Use your phone to text or call when you leave one client location for the next one to verify an appointment.  Listen to audiobooks or podcasts. Travel time is a great opportunity to catch up on the latest audiobooks or episodes of your favorite podcasts. You can

also listen to recorded notes from customers or meetings while you are traveling. 18. What telephone time management techniques can assist in providing better service? Time management techniques include:  Establish objectives before making your calls. If you are simply calling a customer or vendor or returning a call, you should have a clear goal in mind related to your reason for calling and what you want to get from the call.  Prepare for the call by making a list of topics you wish to address. This involves knowing to whom you want to speak and having a clear understanding of the reason for your call.  Screen your caller as soon as someone answers the telephone when you call a customer’s number, unless they give a name right away.  Measure your activity periodically to determine how well you are doing at meeting your objectives.  Keep the customer informed by returning to the call every 20 to 30 seconds if you have placed them on hold. If appropriate, offer to call the customer later.  Be efficient and service-oriented by avoiding transferring customers numerous times to different people. 19. What techniques for voice mail usage can help save time? Techniques that can help save time include:  Use voice mail for its designed purpose – to deliver pertinent information to callers when they are unavailable and request a call-back, if necessary.  Do not use voice mail as a replacement for you because you want to work on other tasks rather than answer incoming calls.  At a minimum when you call someone and reach a voice mail, you should leave your name, the time and date of the call, your phone number (including area code if appropriate), and a brief message. 20. How can e-mail be used effectively to add to, not detract from, available time? Respond to messages in a timely manner, and use strategies outlined in Chapter 9 of Customer Service Skills for Success for effective e-mail usage when serving customers. 21. What are three criteria for measuring time usage and reclaiming time?

Three criteria are:  Necessity. Scrutinize each activity to be sure that it is necessary and contributes in some way to better customer service.  Appropriateness. Once you have identified essential functions, determine who should be doing them and adjust your workload accordingly.  Efficiency. Examine your tasks to consider how efficiently you are currently performing.

Collaborative Learning Activities 1. At the end of the two weeks, place students in groups of 4-5 students and ask them to discuss the results of their research. Walk around the room as the discussions take place to ensure students stay on topic. Ask probing questions to each group as you walk around, such as:  Why do you think wait times might have differed from organization to organization?  Did you notice different wait times at different times of day or days of the week?  Do you think the strategies used to reduce wait times were effective? If now, how could they be improved? Bonus Activity 2.

In class, form even numbered groups of students. Select an industry or type of organization with which all members of the group are familiar or have dealt with in the past (e.g., supermarket, call center, dine-in restaurant, fast-food restaurant, coffee/smoothie shop, emergency room, retail store, doctor’s office, full service car wash facility, or school cafeteria). First, brainstorm a list of ways that you believe service providers in your chosen environment waste time. Next, create a list of ways that employees in your selected environment could speed up service and be more efficient. Finally, think about things you do throughout the day from the time you get up until you go to bed. Brainstorm ways that you can personally improve your own use of time throughout the day.

Face-to-Face—Handling Change at a Call Center

This situation asks the student to imagine they are a community college student who is also the team leader of a six-person team at a call center. They hope to become a call center manager eventually, so they are reluctant to say no when asked to take on a new assignment. In addition to their standard responsibilities of training their team members and performing typical call center tasks, they also must deal with a number of significant changes at the call center, including a pending merger and testing a new customer information tracking telephony system. The new system has led to irate customers and customer complaints, and as team leader, the student is responsible for working with the representatives onsite who are working on the new system. The department is also dealing with recent turnover among members of the team and management. The following questions are asked of the students: 5. From a time management standpoint, what issues are you dealing with? You are dealing with the following issues:  You are the team leader for six customer service representatives, and you are responsible for employee training.  You are working with software representatives to work out system glitches. For the past 2 weeks your team has been beta-testing a new customer information tracking telephony system. You have encountered recent problems with the new system, such as disconnected customers, deleted information on screens while customer service representatives were talking to customers, and representatives blocked from entry into certain areas of the system.  The CEO sent a memo requesting an explanation about the issues because a customer contacted him to complain.  With the merger pending, the senior vice president has been stressing the importance of new telephony system.  Three representatives resigned and the call center manager transferred recently.  You are taking classes at community college with exams this week.  You also handle calls and perform typical call center tasks.  You are writing a proposal for streamlining voice mail responses.  You decided to set up a new filing system in your work area. 6. How should you prioritize the tasks you must handle?

Priority A—Must-Do. Since several of these tasks are directly related to a new customer service system and could be tied to a potential merger, they should get priority, especially since they have the attention of your CEO and senior vice president.  Working with software representatives to work out system glitches. For the past 2 weeks your team has been beta-testing a new customer information tracking telephony system.  Recent problems with the new system, including disconnected customers, deleted information on screens while customer service representatives were talking to customers, and representatives blocked from entry into certain areas of the system.  Handling calls and performing typical call center tasks can be done when there is heavy call volume and you are needed as a back-up. If this becomes an ongoing issue, speak to the senior representative managing the department and ask for assistance or suggestions for dealing with this issue. Get the Human Resources department involved with recruiting new call center representatives and ask them to place a priority on finding people. Priority B—Should Do. While these tasks impact service satisfaction, they do not have critical deadlines and in some cases could be delegated (e.g., training of employees might be handled by more experienced service representatives that you are grooming for advancement). Priority C—Nice to Do.  You are taking classes at community college with exams this week. While trying to advance your knowledge and skill levels is commendable and a good career move, you cannot let these efforts interfere with your job and providing quality customer service. Perhaps you can approach your professor to explain the situation and ask for an opportunity to postpone the exam. At some point, you may also need to decide if now is the right time to take classes.  You are writing a proposal for streamlining voice mail responses. There is no indication that this is something that you were requested to do. Personal initiative to improve job performance and customer satisfaction is commendable. Such initiatives can lead to future job opportunities and advancement. They can also ultimately lead to better time management and stress reduction in the workplace. However, if you have a variety of A Priorities that have deadlines, such distractions can create challenges for you and others. Perhaps this project can be set aside until more crucial initiatives have been handled.  You are setting up a new filing system in your work area. Like the last issue,

this is a nice-to-do project that can potentially streamline processes and facilitate efficiency. However, there is no one pushing you to accomplish this task. Let it wait until you have more flexibility in your schedule. 7. Why did you prioritize the tasks in question 2 the way you did? Student answers will vary.

Chapter 12 Managing Your Stress Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments................................................................... 173 Discussion Opportunities .............................................................................................. 14 Work It Out Notes .......................................................................................................... 14 Work It Out 12.1—Fight or Flight? ............................................................................. 14 Work It Out 12.2—Personal Factors That Create Stress........................................... 14 Work It Out 12.3—Personal Job Stressors ................................................................ 15 Work It Out 12.4—Stress Reduction ........................................................................... 15 End-of-Chapter Material Notes ...................................................................................... 15 Key Terms ................................................................................................................. 15 Review Questions ..................................................................................................... 16 Collaborative Learning Activities ............................................................................... 20 Face-to-Face—Dealing with Stress at Southside Memorial Hospital ........................ 21

Learning Outcomes LO 1-1 Identify leading causes of stress in the customer service environment. LO 1-2 Describe personal stressors. LO 1-3 Recognize potentially stressful situations. LO 1-4 Avoid stressful situations. LO 1-5 Develop techniques for reducing stress.

Brief Chapter Outline I. Stress Research II. What is Job Stress? III. What Creates Stress? IV. Recognizing Stress A. Environmental Factors B. Job Factors C. Personal Factors V. Avoiding Stress through Effective Communication A. Be Polite B. Respond Appropriately to Messages Received C. Speak Assuredly D. Use ―I‖ Language E. Communicate Your Feelings VI. Maintaining Your Sanity A. Stay Calm B. Manage Your Time Effectively C. Avoid Procrastination D. Prioritize E. Set Realistic Goals F. Take Frequent Goals G. Exercise Regularly H. Eliminate Vagueness I. Reduce Personal Tensions J. Use Positive Self-Talk K. Vary Your Activities L. Get More Sleep M. Find a Hobby N. Take a Humor Break O. Be a Realist

P. Take a Mental Trip Q. Smile VII. Workplace Violence A. Preventing Workplace Violence B. Recognizing Potential Offenders C. Identifying Warning Signs

Chapter Outline and Lecture Notes I. Stress Research  

 

Stress is a major contributor to loss of workplace efficiency. Each year, millions of dollars and countless worker-hours of productivity are lost because of stress-related illnesses and issues, and more employees are reporting an escalated feeling of concern for real or potential violence on the job related to stress. Many studies have consistently listed customer service occupations in the top 10 most stressful occupations in the country. Jobs that require employees to hide their true feelings and emotions are considered to be the most stressful.

II. What is Job Stress? 

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Job stress can be defined as the harmful physical and emotional responses that occur when the requirements of a job do not match the capabilities, resources, or needs of the worker. Distress is pain or worry brough on by either internal or external physical or mental strain. Distress causes problems in dealing with customers and other people, reduces your effectiveness, dampens your motivation, makes your life miserable, and can lead to long-term mental and physical problems or death. Although some of the stress that you encounter in the workplace can be eliminated, some cannot; you simply have to work to minimize it as much as possible. Eustress is the term coined by psychologist Dr. Hans Selye to describe positive stress that people sometimes experience when they set goals or objectives that are essential for personal expansion and growth, and the resulting exhilaration. With eustress, you may go through the same physiological stages you would go through for negative situations, but at the end, when you reach your goal, you

have a sense of accomplishment and a feeling of exhilaration. III. What Creates Stress?  

According to WebMD.com, ―Forty percent of U.S. workers admit to experiencing office stress, and one-quarter say work is the biggest source of stress in their life. Causes of work stress include: o o o o o o o o

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  

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Being unhappy in your job. Having a heavy workload and too much responsibility. Working long hours. Having poor management, unclear expectations of your work, or no say in the decision-making process. Working under dangerous conditions. Being insecure about your chance for advancement or risk of termination. Having to give speeches in front of colleagues. Facing discrimination or harassment at work, especially if your company isn’t supportive.

Customers have been conditioned to expect quality products and services at competitive prices and in time frames unheard of one or two decades ago. The idea of getting it now has so permeated culture that failure to provide the quickest, most efficient delivery of products and services can be the kiss of death for an organization. If customers cannot get what they want from you and your organization when they want it, they simply go elsewhere. Increasing schedule pressures can add to stress for you and your coworkers. Stress affects different people in different ways. Both psychological and physical reactions to stress can vary from one person to another. The environmental, job, and personal factors you encounter throughout your day can have a major impact on your mental and physical state and can affect how you react to the stress you experience. You are a product of evolution when it comes to your brain’s reaction to stress. When your brain recognizes or perceives danger (or stress), it triggers a chain reaction of events, starting with the release of chemicals (adrenaline) into the nervous system. Your heart starts beating faster, sending more blood throughout the body. Your breathing accelerates so that you take in more oxygen so that you are ready to deal with the situation (fight) or perhaps to leave the area or situation (flight). The fight or flight syndrome is a term used by scientists to describe the body’s reaction to stressors in which the chemical adrenaline is released into the

  

bloodstream, the heart starts pumping, and the lungs start taking in more oxygen. This provides the fuel needed to deal with the situation. After spurts of excessive adrenaline and activity, the body typically needs to take a break to recuperate. In the customer service environment, increased levels of adrenaline can be helpful in solving customer problems or can cause problems if you lose control. Current system efficiency is causing customers to keep demanding faster service.

IV. Recognizing Stress 

The following are typical indicators that stress is present: 1. Inability to focus or concentrate on a customer problem or workplace situation. 2. Irritability in dealing with others in the workplace. 3. Excessive fatigue, which causes you to daydream or ―nod off‖ during the day. Fatigue also prevents you from operating at your full potential or exercising initiative. 4. Intestinal irritation that can affect your appetite or cause you to be absent from work. 5. Tardiness or absenteeism because of physical symptoms or the need to catch up on sleep. 6. Being argumentative or aggressive with customers and others. 7. Nail biting or other nervous habits (e.g., fidgeting, sighing, playing with hair, wringing hands, constantly tapping the feet or an object). 8. Poor attitude, which manifests itself in phrases like ―Who cares?‖, ―Is it Friday yet?‖, ―It’s not my problem,‖ ―Whatever,‖ or ―Tell someone who cares.‖ 9. Insomnia. 10. Rapid or irregular heartbeat. 11. Feelings of depression, crying spells, or feelings of uselessness and being underappreciated. 12. Bingeing on food, alcohol, or tobacco. 13. Pains in the stomach or head, neck or muscle pains, high blood pressure, or irregular menstrual cycles.

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Such symptoms, left unchecked for long periods of time, can cause serious health problems and even death. They can also affect your relationships with others for they can prevent you from performing at peak efficiency. If any one of these symptoms occurs, you may not need to be concerned (unless

it lasts for an extended period of time); however, the occurrence of multiple symptoms should raise a red flag that causes you to seek assistance. A. Environmental Factors 

Environmental factors affecting stress refers to the workplace, organizational, and societal elements that affect a service provider’s mental and physical state. 1. People can be a major source of stress because you cannot control other people and how they behave. 2. Physical factors such as noise, odors, bright or dim lighting, and heat or cold might affect you more than they affect others. Your ability to perform at peak efficiency may be inhibited by these factors. Such situations should be brought to the attention of a supervisor or team leader. 3. Occupational hazards that cause you to be concerned for your safety or that of others can be stressful. It is important that you and other workers use caution in such environments. Such stressors include dangerous people or situations; heavy equipment or machinery, flammable, caustic, or explosive materials; or heavy lifting. 4. Stressors are factors in a person’s life that cause them to react positively or negatively to a situation that caused the pressure. 5. In non-ergonomic situations, physical stress is created in environments in which chairs, tables, computer equipment, and other tools do not conform with industry standards related to employee protection, comfort, and safety. Back, eye, wrist, hand, arm, and leg strain, among other medical problems, can occur when such industry standards are not followed. 6. The organization you work for can play a big role in increasing or decreasing your stress levels. This is especially true if the organization is undergoing various changes in structure, product and/or service focus, technology, and so on. Having some degree of control over your environment can make a lot of difference in reducing stress.

B. Job Factors 

In addition to the environmental aspects of a job that can lead to increased stress levels, other job-related factors can frustrate you and add tension to your day. In most instances, if you take the time to think of the situation and your interpersonal skills, you can likely reduce your stress levels by negotiating or brainstorming solutions to the problem.

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The key to improving your job and environment is often related to simple, effective interpersonal communication. Working with your team leader or supervisor, move toward changing the way you and your organization view your job and the way you perform it. Do this by openly discussing the following: 1. Your level of authority and decision making in dealing with customer situations. 2. Realistic and mutually agreed-upon performance goals. 3. Specific opportunities for personal and professional growth. 4. Recognition and reward for job performance. 5. Elimination of unnecessary and repetitive tasks, where possible. 6. Increased open communication between all levels within the organization.

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Job factors affecting stress refers to the elements of a job that frustrate or pressure someone. These factors include: 1. Job structures 2. Job insecurity 3. Workplace management 4. Unreasonable goals 5. Conflicting demands 6. Repetitive tasks 7. Limited authority 8. Limited opportunities for advancement

D. Personal Factors 

Personal factors affecting stress refers to issues that someone has related to family, finances, or other elements of life that can create pressure or frustration. These may include: 1. Relationships 2. Physical condition and nutrition 3. Chemical use 4. Financial problems 5. Lack of ―alone‖ time 6. Overworking 7. Inability to solve problems

V. Avoiding Stress through Effective Communication 

By practicing active listening, selecting words and nonverbal cues carefully, and then selecting the right time and place to deliver your message, you can significantly improve your relationships with customers and reduce stress levels (for you and your customers) at the same time. A. Be Polite 

Acknowledgment refers to the communication technique for use with customers who have a complaint or are upset. It involves recognizing the customer’s level of emotion before moving on to help resolve the issue.

B. Respond Appropriately to the Messages Received 

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It is critical that you listen to a customer’s question or statement and respond in a suitable manner. Summarizing what was said is one technique to accomplish this. Failure to respond appropriately can frustrate and irritate a customer or lead to escalated emotion. Your customers are just like you—they experience pressure and stress. Although the customer may or may not have a legitimate complaint, it is your job to listen and take action to solve the problem to the best of your ability, and in a manner that will satisfy the customer.

C. Speak Assuredly 

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When a customer or someone else is upset, it is best to allow them to vent without responding immediately. When you do speak, do so clearly and with authority and confidence. Do not let the other person irritate you or draw you into an emotional exchange.

D. Use ―I‖ Language 

The word you can sound accusatory and challenging, but ―I‖ language sounds as if you are taking on responsibility and trying to join the other person in solving the problem.

E. Communicate Your Feelings

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Keeping feelings or emotions bottled up inside can cause stress and ultimately lead to relationship breakdown and illness. It is better to share your feelings in a low-key rational manner than to save them up and explode. When something occurs that bothers you, take the time to provide immediate (or as soon as possible) feedback to the person. Discuss the behavior, the impact it had, your feelings on the subject, and then listen to their side of the situation, offer suggestions where appropriate, and reaffirm the value of the relationship to you.

VI. Maintaining Your Sanity A. Stay Calm 

When an incident occurs that makes you frustrated or emotional, keep smiling inside, politely excuse yourself, and take a quick break from the situation. Either return once you cool down or ask someone else to handle the person.

B. Manage Your Time Effectively 

There are many good books, audiotapes, videos, and seminars that teach the skill of organization and task management. Learning and practicing these skills can help relieve stress.

C. Avoid Procrastination 

If your tasks seem overwhelming, break them into manageable chunks and work on one small piece at a time. Try asking whether you can do a portion of the job at a time.

D. Prioritize Tasks 

Specific techniques for prioritization can help reduce your stress level.

E. Set Realistic Goals 

Many people subject themselves to unnecessary stress by reacting as events occur. Set attainable goals and get in the habit of rewarding yourself when you achieve goals.

F. Take Frequent Breaks 

Taking time away from customers and job tasks can revitalize you mentally. If you build in some exercise, you will double the benefit. If you spend some time with coworkers, you will have an opportunity to strengthen workplace relationships while networking and sharing ideas and information.

G. Exercise Regularly 

Exercise can prevent emotional trauma brought on by stressful situations. You can even exercise right on the job with some simple isometric or stretching exercises.

H. Eliminate Vagueness 

Much stress is due to uncertainty. To reduce uncertainty, research solutions, ask questions, or set up a system to deal with various situations that occur in your job or personal life.

I. Reduce Personal Tensions 

Take the time to deal with problems in your personal life as they surface, and strive for balance in your personal and professional life.

J. Use Positive Self-Talk 

Give yourself a pep talk by saying positive things. Getting caught up in negative self-talk is unhealthy. If you tell yourself these types of things often enough, they might become a reality, because initiative fades as defeat is accepted. This can lead to stress and depression.

K. Vary Your Activities 

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Burnout is the category of stress that encompasses personal exhaustion, lack of enthusiasm, reduced productivity, and apathy toward the job and customers. Variety is crucial for preventing mental burnout. Your brain needs stimulation and challenge. Be creative in your job and personal life. By varying routine and what you see or experience, you will gain a new perspective. This can lead to reduced

stress, improved job performance, and increased satisfaction. L. Get More Sleep   

Each person is different in the amount of sleep needed to be efficient. Typically, eight hours of sleep has been recommended by various experts. If you find yourself trying to ―catch up‖ on your sleep during weekends, your body is telling you that it is sleep-deprived during the week. If you are a shift worker or work nights, try the following tips: 1. Make sure the room in which you sleep is dark and quiet. 2. Make sure that the room is cool. 3. Make sure that your mattress is comfortable and supportive, and is large enough so that you can move around comfortably.

M. Find a Hobby 

Most people who participate in a hobby that they enjoy find it relaxes them by providing a mental diversion.

N. Take a Humor Break 

Read, watch, or listen to something humorous, or share humorous workplace stories with your peers.

O. Be a Realist 

Recognize that you cannot do everything yourself or take on all opportunities offered to you.

P. Take a Mental Trip 

Close your eyes and relax as you think of pleasant events or locations.

Q. Smile 

Try to find something humorous about the situations you encounter at work. This can help reduce tensions. Looking for the reasons why you feel stressed, it may help you find ways to relieve the stress.

VII. Workplace Violence 

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Workplace violence is a trend that has developed and escalated in the past decade. Spawned by many changes in the workplace, shifting societal values and beliefs, and a variety of other factors, violence is blossoming in the workplace. Road rage is a term used to describe the practice of a driver or passenger in a vehicle verbally and/or physically assaulting others as a result of the frustrations experienced while driving (e.g., driver failing to signal, cutting in a lane abruptly, or tailgating). Prior to 1980, workplace violence was virtually unheard of. According to the Bureau of Labor Statistics, 20,790 workers in the private industry experienced trauma from nonfatal workplace violence in 2018. Of the victims who experienced trauma from workplace violence: 1. 71 percent were female. 2. 64 percent were aged 25 to 54. 3. 73 percent worked in the health care and social assistance industry. 4. 20 percent required 31 or more days away from work to recover, and 21 percent involved 3 to 5 days away from work.

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453 U.S. workers were workplace homicide victims in 2018. Of those who died from workplace violence: 1. 82 percent were male. 2. 47 percent were white. 3. 66 percent were aged 25 to 54. 4. 20 percent were working in sales and related occupations, and 19 percent were performing protective service activities. A. Preventing Workplace Violence    

Each employee must take a proactive role in dealing with and preventing workplace violence. A key to prevention is to conduct yourself in a professional manner at all times. By doing so, you are less likely to escalate a situation. It is important to educate yourself on strategies for recognizing danger signals and how to address them. Talk to your supervisor about the organization’s approach to dealing with violence and plan an escape route from the work area.

B. Recognizing Potential Offenders 

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Many law enforcement and private organizations have sought to create a profile of potentially dangerous people in the workplace. The following characteristics are offered to aid your awareness, not to make you suspicious of someone who fits the profile. Many factors, such as problems in someone’s life, could trigger violent behavior. Some general characteristics of offenders are: 1. White male who is between 35 and 45 years of age. 2. Has a history of job changes. 3. Takes constructive feedback or criticism poorly. 4. Is interested in firearms and other weapons. 5. Identifies with or talks about violence. 6. Is a loner who has few friends and little family contact. 7. Fails to take responsibility or blame when errors occur. 8. May use drugs and/or alcohol.

C. Identifying Warning Signs 

Many people who are prone to violence exhibit telltale behaviors that, when viewed in their totality, should be a warning signal. By being vigilant, you can possibly head off trouble. The following are possible indicators that someone could become violent under certain circumstances: 1. History of violence 2. Romantic obsession 3. Alcohol or chemical abuse 4. Depression 5. Threatening behavior 6. Mental conditions

Class Activities and Sample Assignments 31. Ask students to get into discussion groups for onsite/on-ground courses, and discuss any of the questions you choose from the discussion opportunities section below. (LO 12-1 through 12-7)

32. Ask students, either alone or in teams, to make a list of all the ways stressed employees hurt an organization. Examples may include missed work, lowered productivity when attending work, money spent on employee assistance programs, and lower engagement or enthusiasm for the job. (LO 12-1) 33. Have students review the symptoms of stress in the text. Ask them to identify which symptoms they experience. Then have them review the environmental factors listed in the text and identify which factors may be stressors in their own lives. (LO 12-4) 34. Ask students to review the tips for dealing with stress and to select three strategies to implement over the following week. At the end of the week, ask the students to share which strategies they used and how the experiences affected them. (LO 12-6)

Discussion Opportunities 11. How have you experienced eustress? How do you think your performance for school or work might be different if you didn’t experience eustress? (LO 12-2) 12. Think of the last three experiences you had as a customer. What were your expectations regarding speed of service? After a closer look, do you think your expectations were reasonable? (LO 12-3) 13. What are the top five stressors in your life currently, and what symptoms of stress do they create in you? Determine whether these stressors are environmental factors, job factors, or personal factors. (LO 12-4) 14. Give an example of a time you used the acknowledgment technique with a customer (or someone used the technique with you as the customer). How did it change the conversation? (LO 12-5) 15. Give an example of a recent high-stress situation. What kind of self-talk did you use? Provide specific examples of what you said to yourself in the situation. How did your self-talk influence your stress level and performance? (LO 12-5)

Work It Out Notes Every chapter has several Work It Out sections that ask the students to think about the

material a bit deeper and relate it to their own life. This section will provide notes for class discussion for each of these Work It Out topics. Work It Out 12.1—Fight or Flight? (p. 12-6) This box asks students to think of a time they experienced fight or flight syndrome in a customer environment as either a provider or customer. Arrange students in groups and ask them to discuss the experience. What happened? Was the situation handled professionally? If not, what was done wrong? What could have been done differently? Work It Out 12.2—Personal Factors That Create Stress (p. 12-11) This box asks students to develop a list of stressors in their personal lives that might carry over to and affect their workplace performance and/or their personal relationships. Arrange students in groups and ask them to share their lists and brainstorm possible stress-reduction strategies. You can encourage them to use the text for strategy ideas and then discuss how those strategies could be used to apply to specific stressors. Work It Out 12.3—Personal Job Stressors (p. 12-13) This box asks students to think about all the elements of their workplace or one in which they would like to work, and then to consider what factors can lead to personal stress. You can lead a class discussion and allow students to provide specific examples, real or hypothetical, and discuss how those stressors might be addressed. Work It Out 12.4—Stress Reduction (p. 12-19) This box asks students to go through a stress reduction activity in which they sit in a chair and go through guided breathing exercise. You can ask students to write down a description of how they’re feeling mentally and physically, and then lead the class through this activity as a group. After you’re done, ask students to discuss how they felt after the exercise compared to how they felt before.

End-of-Chapter Material Notes Key Terms   

Acknowledgment (p. 12-13) Burnout (p. 12-17) Distress (p. 12-4)

        

Environmental factors affecting stress (p. 12-8) Eustress (p. 12-4) Fight or flight syndrome (p. 12-5) Job factors affecting stress (p. 12-9) Job stress (p. 12-4) Personal factors affecting stress (p. 12-11) Stressors (p. 12-8) Road rage (p. 12-20) Workplace violence (p. 12-20)

Review Questions 22. How does stress benefit you? Not all stress is bad. Dr. Hans Selye, a prominent psychologist, coined the term eustress a number of years ago to describe ―good‖ stress. You would experience eustress if you set a goal for yourself and achieved that goal. With eustress, you may go through the same physiological stages that you would for negative situations, but at the end, when you reach your goal, you have a sense of accomplishment and a feeling of exhilaration. Additionally, the increased levels of adrenaline triggered by fight or flight syndrome can be helpful in solving customer problems. For example, getting excited about a project can work in your favor, especially when deadlines are tight for extended periods. 23. Describe the fight or flight syndrome. The fight or flight syndrome is a term used by scientists to describe the body’s reaction to stressors in which the chemical adrenaline is released into the bloodstream, the heart starts pumping, and the lungs start taking in more oxygen. This provides the fuel needed to deal with the situation. 24. What are some signs of stress? Signs of stress include:  Inability to focus or concentrate on a customer problem or workplace situation.  Irritability in dealing with others in the workplace.  Excessive fatigue, which causes you to daydream or ―nod off‖ during the day. Fatigue also prevents you from operating at your full potential or exercising initiative.  Intestinal irritation that can affect your appetite or cause you to be absent from

        

work. Tardiness or absenteeism because of physical symptoms or the need to catch up on sleep. Being argumentative or aggressive with customers and others. Nail biting or other nervous habits (e.g., fidgeting, sighing, playing with hair, wringing hands, constantly tapping the feet or an object). Poor attitude. Insomnia. Rapid or irregular heartbeat. Feelings of depression, crying spells, or feelings of uselessness and being underappreciated. Bingeing on food, alcohol, or tobacco. Pains in the stomach or head, neck or muscle pains, rapid pulse, high blood pressure, or irregular menstrual cycles.

25. What are five environmental factors that cause increased stress? Five environmental factors that cause increased stress are:  People  Physical factors  Occupational hazards  Non-ergonomic situations  Organizational elements 26. What job factors cause increased stress levels? Job factors that cause increased stress include:  Job structures  Job insecurity  Workplace management  Unreasonable goals  Conflicting demands  Repetitive tasks  Limited authority  Limited opportunities for advancement 27. What are some personal factors that contribute to high stress levels? Personal factors that cause increased stress include:

      

Relationships Physical condition and nutrition Chemical use Financial problems Lack of ―alone time‖ Overworking Inability to solve problems

28. What are some communication strategies that can help reduce stress? Communication strategies include:  Be polite.  Respond appropriately to messages received.  Speak assuredly.  Use ―I‖ language.  Communicate your feelings. 29. What are some strategies for maintaining your sanity in the workplace? Strategies include:  Stay calm.  Manage your time effectively.  Avoid procrastination.  Prioritize tasks.  Set reasonable goals.  Take frequent breaks.  Exercise regularly.  Eliminate vagueness.  Reduce personal tensions.  Use positive self-talk.  Vary your activities.  Get more sleep.  Find a hobby.  Take a humor break.  Be a realist.  Take a mental trip.  Smile. 

30. What are some characteristics of the typical violent offender in the workplace? Some characteristics of the typical violent offender include:  White male who is between 35 and 45 years of age.  Has a history of job changes.  Takes constructive feedback or criticism poorly.  Is interested in firearms and other weapons.  Identifies with or talks about violence.  Is a loner who has few friends and little family contact.  Fails to take responsibility or blame when errors occur.  May use drugs and/or alcohol. 31. What are some warning signs that someone in the workplace might become violent? Warning signs include:  History of violence  Romantic obsession  Alcohol or chemical abuse  Depression  Threatening behavior  Mental condition(s) Bonus Questions 32. What are three factors that affect the amount and type of stress experienced by workers? Three factors that affect the amount and type of stress experienced by worders are:  Performance demands  Interpersonal demands  Physical demands 33. What is job stress? Job stress is the harmful physical and emotional responses that occur when the requirements of a job do not match the capabilities, resources, or needs of the worker.

34. What creates stress? Situations or factors that create stress include:  Being unhappy in your job.  Having a heavy workload and too much responsibility.  Working long hours.  Having poor management, unclear expectations of your work, or no say in the decision-making process.  Working under dangerous conditions.  Being insecure about your chance for advancement or risk of termination.  Having to give speeches in front of colleagues.  Facing discrimination or harassment at work, especially if your company isn’t supportive.

Collaborative Learning Activities 1.

After each group has presented their presentation, select 2-3 questions to ask the class to generate discussion about the presentation.

Bonus Activity 2.

Form equal sized groups with your fellow students. Have an open discussion related to the following:  What do you believe are causes of stress in the workplace (based on what others tell you or personal experience)?  How can the stressors identified potentially be eliminated or reduced by employees? Their supervisors?  What personal stressors can carry over into the workplace and create challenges in delivery of positive customer service?  What can be done to reduce the impact of personal stressors on the job?

Face-to-Face—Dealing with Stress at Southside Memorial Hospital This situation asks the student to imagine they are the triage nurse at the front desk of an emergency room in Houston. There are several job stressors and environmental stressors, including an upcoming merger with another hospital, a broken air conditioner, and an exceptionally busy rush of patients. There are also personal stressors, including a double shift, a skipped meal, a sick child at home, and the possibility the student is becoming sick themselves. Paramedics then arrive with a belligerent patient from a car accident who refuses help from the student and insults them.

The following questions are asked of the students: 8.

What are some of the stressful environmental factors in this scenario? The number and types of patients treated daily in the ER can lead to added stress. The malfunctioning air conditioning in the emergency room waiting area can also add stress.

9. What are some of the stressful job factors present in this scenario? Some of the stressful job factors present include:  Patients of various ethnic minorities coming into the ER, which can lead to delays in treatment due to communication breakdowns.  Uncertainty about a potential merger with Houston General Hospital.  The assortment of medical issues you have seen, such as a woman in labor, a man with a severe back strain, an elderly woman with dementia, and a man with 11-inch spike through his forearm.  The radio call that an ambulance is bringing a man injured in an automobile accident, and that man is highly agitated and belligerent and is possibly under the influence of drugs or alcohol. 10. What are some of the stressful personal factors in this scenario? Some of the stressful personal factors present include:  Being passed over for advancement to supervisor.  Having to deal with a high volume of patients daily and a surge in patients in the past hour.  The student worked a double shift, is fatigued, lacks time to eat, and their daughter called to say she was sick. 11. How would you handle the situation with the patient who has just arrived? Explain. While the ambulance crew can facilitate transfer of the patient into the hospital’s care, you may want to have a male attendant accompany you to receive the man in case he becomes violent. After assessing the situation, process the patient and handle the situation as required by hospital policy and protocol. 12. What could go wrong in this situation?

Possible ways that things could go wrong include:  A patient could experience additional health issues due to the heat.  The student could be correct that they are getting sick, and their own condition could deteriorate, making it impossible for them to complete their shift.  The belligerent patient could succeed in escaping from his restraints and hurt someone. Bonus Question 13. What can you do to potentially reduce stress levels during your shift? You can take short breaks when possible. Get out of the environment for a while, go for a short walk to a breakroom, cafeteria, or outside the building for fresh air. Have a snack or something to drink, or do something to mentally relax (e.g., look at your Facebook postings, watch a few humorous videos on YouTube or elsewhere, read a short passage from an article in a magazine or book).

Chapter 13 Customer Service through Written Means Table of Contents Learning Outcomes ......................................................................................................... 2 Brief Chapter Outline ....................................................................................................... 2 Chapter Outline and Lecture Notes ................................................................................. 3 Class Activities and Sample Assignments..................................................................... 17 Discussion Opportunities .............................................................................................. 18 Work It Out Notes .......................................................................................................... 19 Work It Out 13.1—Nonsexist Pronouns..................................................................... 19 Work It Out 13.2—Reducing Wordiness.................................................................... 19 Work It Out 13.3—Passive Voice .............................................................................. 19 End-of-Chapter Material Notes ...................................................................................... 20 Key Terms ................................................................................................................. 20 Review Questions ..................................................................................................... 20 Collaborative Learning Activities ............................................................................... 23 Face-to-Face—Written Correspondence at William’s Pest Control............................... 23

Learning Outcomes LO 13-1 Recognize the importance of written messages in business. LO 13-2 Correctly apply the basic rules of grammar when writing. LO 13-3 Create professionally written documents. LO 13-4 Apply a three-step approach to ensure effectiveness of written documents. LO 13-5 Write in a way that enhances service. LO 13-6 Set the right tone when you write. LO 13-7 Deliver bad news and say no positively. LO 13-8 Identify reference sources that will help improve your writing.

Brief Chapter Outline I. Why Write to Customers? II. The Importance of Business Writing III. Back to Basics A. Parts of Speech 1. Nouns 2. Pronouns 3. Verbs 4. Adverb 5. Adjectives 6. Prepositions 7. Conjunctions 8. Interjections D. Word Choice E. Keep It Simple IV. The Three-Step Process in Preparing Written Material A. Planning 1. Audience or Customer 2. Purpose or Objective for Writing 3. Format, Appearance, and Content 4. Timing 5. Delivery Method B. Drafting Your Masterpiece C. Editing Your Work V. Writing Your Way to Better Service A. Letters 1. Enhancing Appearance

2. Parts of a Letter B. Memorandums C. E-mail D. Text Messages VI. Setting the Tone of Your Correspondence A. Speak to Your Customer B. Use a Positive Tone 1. Delivering Bad News or Saying No Positively C. Use the Active Voice When Writing D. Use Inclusive Language VII. Style and Writing Sources

Chapter Outline and Lecture Notes I. Why Write to Customers?      

Face-to-face or telephone is probably the best and most expedient way to share information. If done professionally, written communication can send a more formal message while making your message more visual. People read and reread a message at their leisure. People can review written messages and call for clarification if necessary. You can plan and edit written communication. The downside is that you may never know how (or whether) the person received your message.

II. The Importance of Business Writing  

  

No matter what business you’re in, you need to master the basics of business writing and effective communication. Document, document, document! By putting your thoughts and important details in writing, you create a written paper trail or record that will help you and your organization in the future. Writing is just another form of sending an image of yourself nonverbally. By communicating well, you set yourself above most of your peers because many people cannot write effectively. Writing requires conscious effort and preparation, especially when writing to prospective or current customers, for your reputation and that of your company are at stake.

 

  

In most cases, you only have a few seconds to grab their attention. The AVARFM principle is based on the acronym for Added Value And Results For Me. This refers to a concept in which a person considers what they will personally gain before taking action or making a decision. State your purpose for writing early in the correspondence. Once you get your customer’s attention, you need to prompt them to act or respond. Desired actions might be: o To get the customer to respond. o To use your products or services. o To tell others about your organization and its products and/or services. o To contact you in the future.

III. Back to Basics    

Your image, and that of your organization, are at stake each time you create some form of written communication. If your use of grammar is poor, it reflects negatively on your professionalism and the organization. Grammar and syntax checkers and spell checkers are only tools to assist you; they do not replace you. Over time, the ―rules‖ for sentence and word usage change. However, what you learned in high school is still relevant. Mastery of written English can not only help you deal with customers but can often strongly influence your career opportunities. A. Parts of Speech 



Although you may be able to communicate well without knowing the roles of the various parts of speech, to communicate most effectively with your customers you should be able to use all the tools available to you. Parts of speech are categories or classes to which words in the English language are assigned (e.g., nouns, pronouns, verbs, adverbs, adjectives, prepositions, conjunctions, and interjections) based on their purpose or function in a sentence. There are exceptions to most grammar rules. 1. Nouns 

Nouns name a person, place, thing, idea, ability, or quality.

  

Proper nouns are specific and capitalized, and common nouns are neither specific nor capitalized. Nouns can be collective or individual. As with the use of pronouns, descriptive gender nouns may create concern for some readers. Do some research on the topic.

2. Pronouns 

    

 

Pronouns are words that can traditionally be used in place of nouns. Using pronouns reduces the need to repeat nouns several times and creates a smoother flow to your writing. Make sure that the pronoun matches (agrees with) the noun (antecedent) that it replaced in terms of gender, number, and person. Acceptable pronouns are changing in society, and keeping track of the evolving trends when writing and speaking can be challenging. Nonsexist pronouns are becoming more common as some people grapple with a means of referring to certain individuals and groups. Periodically researching the topic is one way to stay abreast of evolving rules. Nonsexist pronouns are words to describe a male or female (e.g., she/him, him/her, and her/him) and that do not involve traditional male or female stereotypes, show prejudice, or demean based on gender. Among others, some examples of alternative nonsexist pronouns include they, them, person, or individuals. You may be wiser to simply eliminate gender-related pronouns where feasible and rewrite your sentences. Demonstrative pronouns (e.g., these, those, that, this) should be used only when referring to a specific noun (e.g., those items, that blouse, these books), not to an entire thought or sentence. Using demonstrative pronouns to refer to a sentence can confuse your reader and cause your intended message to be lost.

3. Verbs 

Verbs are the drivers behind sentences because they tell the condition, action, or state of being related to the subject of the sentence.

4. Adverbs 

An adverb modifies (describes, explains, or limits) another adverb, or

  

adjective, or a verb. An adverb answers the questions When? Where? Why? How? How much? and To what degree? Adverbs often end in ly—but not always. Place an adverb as close as possible to the word it is modifying.

5. Adjectives   

Adjectives enliven your sentences by modifying, limiting, or describing a noun or pronoun. Adjectives can be modified only by an adverb. Adjectives may be single words, phrases, or clauses.

6. Prepositions   

Prepositions connect a noun or pronoun with other words in a sentence. Prepositions also show direction or location. It is permissible to use a preposition at the end of a sentence for emphasis or to avoid an awkward sentence structure.

7. Conjunctions  

Conjunctions are words or phrases used to connect words, phrases, clauses, or sentences. Such words are also referred to as transition words, transition phrases, or adverbial conjunctives.

8. Interjections 

Interjections are words or phrases added to a sentence to express emotion or surprise.

B. Word Choice  

Keep in mind that people outside your organization, industry, culture, or geographic area may not have heard the term(s) you are using. Jargon refers to words or terminology that is either technical or used by or oriented to a specific group, profession, or activity (e.g., sport, firearms, computers, hobby academia) and not easily understood by people outside the group or without previous knowledge of the meaning.



 

Using jargon, buzzwords, or slang that people outside a particular group do not understand can cause a breakdown in communication and might signal your lack of interest in the reader’s ability to comprehend your message. Selecting the wrong word can change the meaning of your sentence and make you look foolish, careless, or uneducated. Have someone who has a good command of the English language look over documents that you have written before you send them.

C. Keep It Simple 

 



The KISS principle is an acronym for Keep It Short and Sweet to remind communicators that they should make their message simple and include only needed information when writing letters, memorandums, and e-mail or text messages. Use only the words you need to make your point. Many people think that, by using more words, they appear to be better educated or more intelligent. Actually, they often confuse the reader and cloud the message by using unnecessary words. Many people do not have time to read messages with too many words.

IV. The Three-Step Process in Preparing Written Material 

 

In most cases, the format and appearance of written materials sent to customers are dictated by tradition, organizational and industry preference, and established procedure. Many companies have standard formats for written customer materials that are stored in a computer database. Whether you are creating a letter, a memorandum, or an e-mail, you should include three simple phases: (1) plan, (2) write a draft, and (3) edit and proofread. A. Planning 

The planning phase is when you decide what is important to include and exclude from your message. 1. Audience or customer  

Your format and tone typically depend on who will receive the correspondence. To select your recipient(s), answer these questions before you start

writing: o o

Who is the appropriate person to receive this information? Is there anyone else who needs to receive this information? If so, why?

2. Purpose or Objective for Writing 

In deciding your purpose, you should consider desired outcomes. Ask yourself some basic questions: o o o o o o o o

What do I want the recipient to think, know, or do differently? What actions do I want the recipient to take? What are the key points that I am trying to make? What information does the recipient need? Why does the recipient need this information? What does the recipient already know about this topic? What else does the recipient need to know about this topic? How do they feel about this topic?

3. Format, Appearance, and Content  

      

Numerous formats or styles can be used to create the written documentation you usually encounter in a customer service environment. Remember that you should write only what you would not mind seeing on the 6 o’clock news. If you keep this in mind when you are assembling information and selecting a style of writing, you are likely to end up with a professional-looking product. A key determinant in deciding on your style is your intended audience. Two approaches to writing letters and memorandums are available: formal and informal. Formal formatting involves using a salutation that includes titles and last names of recipients. Address your correspondence to a specific individual when possible. If addressing a group, avoid using gender-based terms unless it is a group composed of one gender. An alternative to addressing the individual by name is to address them by their title or to address a department. Many larger dictionaries list the correct salutation for various public officials, and some reference manuals provide comprehensive guidelines



on writing business correspondence. Informal formatting is a relaxed or casual style of writing or addressing someone known on a personal level when sending letters, memorandums, and e-mail or text messages (e.g., Dear Sue vs. Dear Ms. Richards). Correspondence might also include contractions, abbreviations, emojis, or colloquial terms or phrases. People from different cultures may have differing views on what is acceptable in a business environment, so if you are writing to someone from another culture or country, it is typically better to address correspondence more conservatively. Make sure to research how names are written in different countries.

4. Timing  

 

The timing of message delivery can have a major impact on how a message is received. As a rule of thumb, sending important e-mails, documents, and correspondence that will arrive on a Monday is a bad idea since most business professionals are swamped on their first day back at work. Mail announcements early enough so that the invitees can make plans and you do not look as though you forgot to allow adequate time. Depending on the situation, you may also want to send out a reminder notice.

5. Delivery Method 



 

Usually, communicating in person or over the telephone is better than through written means if you want your message to be understood and you want to encourage feedback. Follow up important telephone conversations with a written summary. This provides documentation for future reference for you and the receiver. Some people are visual learners and receive and comprehend information better when they read it. Your choice of delivery method may be affected by: o o o o

How fast you need the document delivered. The size and weight of the document. Time constraints. The image you wish to project.

o o

Content (e.g., legal documents requiring an original signature). Recipient (e.g., CEO, customer, or high-ranking official).

B. Drafting Your Masterpiece  

 

Creating a draft allows you to later spot grammar and syntax errors, possible ―political time bombs,‖ or faulty organization. The drafting phase is not the time for editing. Editing as you go slows you down and can cause you to lose your train of thought, so that you might forget to include important information. Your purpose in drafting is to capture the essence of your message. Other options include verbally recording your thoughts and later transcribing them, or jotting down key points on sticky notes or index cards that you can reposition on a board or wall as you edit.

C. Editing Your Work  

Try to catch your own errors, or have someone proofread your work, before sending a letter to a customer. Check your work correspondence to be sure you covered the following: o o o o o



Did I include a date line? Is the addressee (and any other recipient) clearly and appropriately identified? Is my writing clear and concise? Does each sentence and each paragraph contain only one thought or main idea? Have I followed the structural formats for letters and memorandums? Did I proofread each message carefully?

For e-mail: o o o

Did I observe the appropriate etiquette? Is there a call for action in the text of the document? Have I included a signature? If enclosures or attachments will be sent, did I indicate their existence on the document or in text?

V. Writing Your Way to Better Service 

The three types of written materials that a typical customer service



representative, or someone dealing with customers, prospects, vendors, and others will use are letters, memorandums, and e-mail. Text messages are also sometimes used to provide small bits of information or to respond to a customer message. A. Letters  



The key in all correspondence is to remain professional in tone and appearance. The way you word your letters, along with other factors discussed in the chapter, will help determine the way the reader interprets what you have written. Before writing a business letter, find out whether your organization has a style manual that outlines the format for outgoing letters. If not, you can use Figures 13.8 and 13.9 as guides. 1. Enhancing Appearance 

Whether you use preprinted letterhead or generate your own letterhead, your letters might adhere to the following guidelines: o o o o

Use a margin of 1 inch on the sides and bottoms of the sheet. Use a top margin of 2 inches or use a ½-inch space between the letterhead and the first element in the letter. Use a 12-point serif-style font such as Times New Roman or a sans serif font such as Arial. Either left-justify the text and leave the ends of the lines unjustified or fully justify all lines so that the text at the left and right margins is aligned.

2. Parts of a letter  

The four main parts of a letter are the heading, the opening, the body, and the closing. Heading. An organization’s logo, name, and address are normally included in a letterhead. If you are creating a letter on a blank sheet of paper, type this information either above the date or below the typed signature at the end of the letter. Include the following items: o

Organization name

o o o o 

 

The date in the heading should be typed month, day and year (e.g., October 6, 2021). This format may differ depending on your customer. The date should be approximately 2 inches from the top of the sheet, or about ½ inch below the letterhead. Opening. The opening of a letter contains the inside address and salutation. Leave 3 blank lines under the date and begin typing the inside address, including the following information: o o o o o o

 



Name of recipient (if applicable) Name and address of the recipient’s organization Room, suite, or apartment number. Street address or post office box number City, state abbreviation, and zip code Country (in all-capital letters), if applicable

Type the salutation on the second line under the inside address. The form of the salutation will be determined by the content, purpose of writing, whether you know the recipient, and the image you are trying to convey. When typing the title and name of your recipient: o o o o

 

Street address City, state, and Zip code Country (if appropriate) Telephone and fax numbers and e-mail and website addresses

Start at the left margin. Leave 1 space above and below the salutation. Abbreviate titles such as Mr., Mrs., Ms., and Dr. Spell out titles of position or rank such as Sheriff, General, Mayor, Pastor, and Chairperson. Follow the salutation with a colon for business letters (or a comma for informal correspondence).

Capitalize the first noun or title in a salutation. If you know the title or organization only, but do not know the recipient’s gender, you can address them by their title, the organization, or their full name. Body. The body of a letter consists of the message—what you want to

 



say. Apply all the guidelines related to parts of speech covered earlier in the chapter. Include your key points in the first one or two paragraphs, as many people will not read beyond that point if they do not feel a need to know what you have said. Word your opening statement in a way that gives the reader a reason to continue. Writers often begin their correspondence with a trite statement and then go to the real message. Unfortunately, by the time they get to the ―good stuff,‖ the reader is no longer with them. As you develop your message, follow these guidelines: o o o o

 



Start with a strong opening statement. Single-space each paragraph. Leave one blank line between paragraphs. Keep paragraphs short and concise. Limit the first and last paragraphs to four lines (not sentences). Limit other paragraphs to six to eight lines for maximum readability. Indent the first sentence (about ½ inch) of each paragraph, if desired.

Closing. A typical letter ends with a complimentary closing followed by a comma. The writer’s name and title are placed under the complimentary closing, and reference initials (the initials of the person who prepared the document) appear below the writer’s name and title. Enclosure and copy notations may also be added, along with a postscript.

B. Memorandums   



To a great extent, memorandums (memos) have been replaced in many organizations by e-mail. Memorandums were originally designed to provide quick information in an informal format. They are intended mainly for use inside an organization and often serve as follow-up documentation to a conversation, meeting, or other encounter with a person. Many people use memorandums when a more formal letter or approach



  

would be appropriate, some make them too complex, and some fail to follow common formatting guidelines. A memorandum should normally address a single topic. If you need to cover other topics, have a meeting with the person, send separate memorandums for each topic, or write a more detailed letter and attach enclosures. Decide who really needs a copy of the document; many people get so much mail and e-mail that they do not have time to read it all in detail. Memos have two main parts: the heading and the body. The heading includes: o

o o o 

The body includes: o o o o o o o o



The names of the intended receiver and the sender. If there are multiple recipients and senders, list their names from top to bottom based on rank. Names of people who will receive a courtesy copy. The date that the memorandum was sent. A short, concise subject line.

Plenty of white space to aid readability. A purpose sentence (why you are writing) Concise, short sentences that convey your primary message. Paragraphs that are short, concise, and to the point. Key points or ideas numbered or bulleted for easier reading, if appropriate. A concluding sentence or paragraph that calls for action. The initials of the originator of the message. An enclosure notation, if appropriate.

Most organizations have style manuals that dictate how written correspondence should be formatted, or may even have templates or printed forms. If your organization does not have these tools, use these guidelines: o o

o o

Set 1- to 1¼-inch margins on the sides. Start typing 2 inches from the top of the sheet or about ½ inch under the organization’s name if your organization provides preprinted stationary. Double-space the guide words in the heading (e.g., To, CC, From, Date, and Subject). Use a colon after each heading guide word. Tab after each guide word (clear the longest guide word by at least

2 spaces). Use uppercase and lowercase letters for the addressee’s name, sender’s name, title and or/department, date, and subject. Start the message body at the left margin. Use block style (all lines begin at the left margin). Use a ragged right margin (do not justify the right margin). If you have enclosures (attachments to the memorandum), place an enclosure notation under the originator’s initials. Reference initials, file name notations, and enclosure notations should all begin at the left margin.

C. E-mail   

Because of the informal nature of this medium of communication, use e-mail carefully and sparingly in interactions with customers. Choose your words carefully, proofread, spell-check, and double-check your message before clicking ―Send.‖ The importance of your message is crucial in deciding whether to use e-mail or some other method of message delivery.

D. Text Messages    

Text messaging or SMS marketing has become a popular form of communication technology for businesses. Some major companies have adopted their products for use in both inbound and outbound customer care centers. Small businesses can also use text messages to contact potential and current customers in a more informal and less expensive manner. According to data compiled by Quiq: o o



Sixty-four percent of customers prefer texting to talking on the phone. Phone calls are expensive, often ranging from $2 to $5 per conversation. Text messaging ranges from $0.65 to $1 per conversation. When customers can send images with texting, a picture truly is worth a thousand words.

According to another AI industry source, SlickText:

o o o o o 

Ninety percent of text messages are read within the first 5 minutes. Seventy percent of Americans would like offers from their favorite businesses sent right to their cell phones. The average American looks at their cell phone 150 times per day. Twenty-two percent of text messages with value are forwarded to friends and family. The average redemption rate for a mobile coupon is twenty percent.

Texts are limited to 160 characters before they break into multiple texts for the recipient, so you should keep your messages concise. Keep the format and wording professional. If you are sending unsolicited messages or offers, you should include a statement at the end that says, ―Text STOP to opt out.‖ This keeps you in compliance with federal law so you aren’t added to a list of known spammers. The statutory fine is from $500 to $1,500 per text for willfully violating the Telephone Consumer Protection Act (TCPA) of 1991. In some instances, complainants might also be able to file a class-action suit against your company for illegally sending unsolicited text message spam.

 

VI. Setting the Tone of Your Correspondence  

 

Tone can send a powerful message about your attitude, even in writing. It is conveyed through word choice, sentence structure, and punctuation. One way to avoid sending a negative message when you are emotionally charged is to have someone else read what you’ve written before you send it to a customer. If you can’t have someone read your message, write a draft, set it aside for a couple of hours or a day to give you time to cool off, and then reread it. Ask yourself the following questions and then modify the text as needed: o o o o

What message is this correspondence supposed to convey? Did I convey that message? Have I addressed the customer’s questions or problems? How would I react to this message? Is there anything in the wording, punctuation, or sentence structure that could be misconstrued by the customer? Did I use the active voice in structuring the sentences? What do I need to add or take away?

A. Speak to Your Customer  

When you personalize what you write through use of words such as you, I, ours, we, and mine, you have established a mental link with your reader. Often, people do not consciously realize that you are using a personalized approach, but they react positively to the tone.

B. Use a Positive Tone    

Even when you have to say no or deliver ―bad news‖ to a customer, try to do so in a positive manner. Choose your words carefully so that you sound courteous and friendly, yet assertive. Use all the standard pleasantries to help make the customer feel appreciated and important to you and your organization. The most successful strategy for communicating a positive tone is through effective ―reader management.‖ By choosing the right words and style of writing, you can often guide your reader to a decision or in the direction you want them to go. 1. Delivering Bad News or Saying No Positively      

Part of your job as a representative of your organization may be to deliver bad news to customers. Customers do not want to hear what you cannot do. Instead, they want to hear how you can assist them. When you must say no, try to do so in a manner that protects the relationship between the customer and your organization. Avoid a negative tone. Start off with some pleasant information and lead up to the letdown or bad news. There are three basic parts in such communications: o o o

Use a buffer. State the reason for the refusal. Reaffirm the value of your organization to the customer and the relationship.

C. Use the Active Voice When Writing

  

Use a direct or active approach when you write to customers. Active voice helps define where, when, and why an action is taking place. Using it, the subject of a sentence ―does‖ something or completes the action. Active voice helps the reader understand who is taking action, and it livens up sentences by eliminating unnecessary words.

D. Use Inclusive Language  



Respect for others must be observed in the workplace, not just because of the laws requiring it, but because it is the right thing to do. Inclusive language is language that avoids the use of terms that might be considered demeaning or offensive based on personal perceptions or stereotypes or might exclude particular groups of people. Inclusive language includes using appropriate nouns and pronouns that include people of all races, genders, religions, and ethnicities.

VII. Style and Writing Sources 

Depending on whether you are drafting a letter or a memorandum, or developing a formal report or research paper, there are many sources that you can look to. The following books are standard references: o William A. Sabin, The Gregg Reference Manual, 11 ed., McGraw-Hill, New York, NY, 2010. o The Modern Language Association of America, MLA Handbook for Writers of Research Papers, 9th ed., New York, NY, 2021. o The American Psychological Association, Publication Manual of the American Psychological Association, 7th ed. Washington, DC, 2020. o The University of Chicago Press, The Chicago Manual of Style, 17th ed., Chicago, IL, 2017.

Class Activities and Sample Assignments 35. Ask students to get into discussion groups for onsite/on-ground courses, and discuss any of the questions you choose from the discussion opportunities section below. (LO 13-1 through 13-8) 36. Ask students to get into discussion groups and discuss the most memorable written message they have received as a customer. What made it memorable? Did it leave a positive or negative impression? (LO 13-1 through 13-6)

37. Ask students to bring a marketing e-mail to class. Ask them to critique the message based on the tips provided in this chapter (e.g., does it use concise language? Does it use proper grammar? Did it use effective timing?). (LO 13-2 through LO-6) 38. Imagine a customer has e-mailed you for the third time to follow up on a computer she ordered that she hasn’t yet received. You’ve spoken with multiple departments and your supervisor, but you haven’t been able to track down the missing computer. You’re waiting to hear back from one last person, and if they don’t provide an answer, you’ve been authorized to send the customer an upgraded computer with overnight shipping at no additional cost. Write two brief replies to the customer. In the first, use a tone that conveys your frustration with the situation. In the second, use a professional tone. Compare the two versions and explain how they differ. (LO 15-5)

Discussion Opportunities 16. Why is documentation important in a business environment? (LO 13-3) 17. Have you ever noticed grammar errors in professional writing? How did it affect your opinion of the writer or their organization? (13-3) 18. Does your own writing process typically reflect the three-step method? If not, how do you think this method might help you? What might make this method difficult? (LO 13-4) 19. Which forms of written communication do you prefer? Why? Do your preferences change if it’s personal communication as opposed to professional communication? (LO 13-5) 20. What factors make it difficult to ensure you have the correct tone in writing? What strategies can you use to offset those factors? (LO 13-6)

Work It Out 13.1—Nonsexist Pronouns (p. 13-7) This box asks students to conduct an Internet search for ways to reduce or eliminate the use of what some might perceive as sexist language when communicating with customers. Students should develop a list of at least three website resources to share with their professor and other students and be prepared to discover the tips they discovered in class. Work It Out 13.2—Reducing Wordiness (p. 13-11) This box provides a list of overly wordy statements and asks students to work in teams to take five minutes to determine more concise ways to phrase each of the statements. Work It Out 13.3—Passive Voice (p. 13-26) This box provides a list of sentences in passive voice and asks the student to rephrase the sentence to active voice. Afterwards, you can ask students how they would feel about saying the active voice statements to customers compared to the passive voice statements.

End-of-Chapter Material Notes Key Terms        

Active voice (p. 13-27) AVARFM principle (p. 13-4) Inclusive language (p. 13-27) Informal formatting (p. 13-13) Jargon (p. 13-9) KISS principle (p. 13-10) Nonsexist pronouns (p. 13-6) Parts of speech (p. 13-5)

Review Questions 35. How can the information provided in this chapter help you to better serve customers?

This information can help you determine whether written communication is the best form of communication for the situation and can help you walk through the steps for crafting a piece of professional writing. It can also help you determine the best way to present the information to ensure that the customer receives it and that you (and your organization!) are perceived as professional, credible, and friendly. 36. Why is it sometimes important to put communications to customers in written form? From a legal standpoint, the cliché ―If it isn’t in writing, it didn’t happen‖ is very important to remember. By putting your thoughts and important details in writing, you create a written paper trail or record that will help you and your organization in the future. Whether the format is a letter, memorandum, report, e-mail, or text message, having the key elements of a conversation or agreement, along with background information, can help successfully solve many problems in a customer service environment. 37. What are some of the basics that are important to use effectively when writing to a customer? Before sending any written messages to a customer, always spell and grammar check what you have written. Do not depend on software to do this, especially with things you might create in text or other software that ―autocorrects‖ words. Sending a message that has not been appropriately reviewed (by you or someone else) is a recipe for disaster. If errors exist in it, the resulting message(s) can send a negative image of you and your organization. If you are not familiar with the eight parts of speech, take the time to learn them. Having someone else who is cognizant of effective writing elements review your documents or messages is always a wise decision. 38. How does word choice affect your customer’s reaction to a written message? Using jargon or slang that people outside of your organization, industry, culture, or geographic area might not understand might send the message that you are not interested in the reader’s ability to understand the message. Additionally, if you select the wrong word, you might change the meaning of your sentence. This can make you look foolish, careless, or uneducated. 39. When writing your way to better customer service, what are the three types of written materials typically used?

The three types of materials typically used are:  Letters  Memorandums  Electronic mail In addition to these three formats, text messaging is also becoming more acceptable when interacting with customers in some situations. 40. What are the roles and importance of formatting when writing to a customer? There are several possible formats you might use when writing to a customer, and each one has its advantages when you are trying to communicate a specific type of message and image. The intended purpose, recipient, content, organizational style, and many other factors affect the final appearance of writing. The key is to remain professional in tone and appearance. Bonus Questions 41. With the ease of face-to-face and telephone communication, why would service providers write to their customers? Writing allows you a further outlet for exchanging ideas and thoughts. If done professionally, written communication can send a more formal message while making your message visual. Since people gather information in different ways, giving customers something in writing allows them to read and reread the message at their leisure. In addition, you can use written documentation to summarize verbal discussions you have with a customer. This helps ensure that you both have the same interpretation of the discussion. 42. What is the value in following a three-step process when preparing written material? Before you ever send a written message to someone, make sure that you go through the following three-step process. This will help ensure that you send the message you really intend. The three steps are:

  

Plan what you want to say and the image you want to project. Write a draft that you, and potentially others, thoroughly review before sending. Proofread for grammar, syntax, and spelling.

43. Why is it important to think of the tone of your correspondence with customers? Tone can send a very powerful message about your attitude, even when you write. Tone can convey your frame of mind—arrogant, angry, frustrated, sarcastic, friendly, hostile, and so on. Tone is conveyed through your word choice, sentence structure, and punctuation.

Collaborative Learning Activities 1. Provide the students with written materials for them to evaluate. You can provide each group with the same material if you’d like to discuss as a class afterwards, or you can provide each group with a different piece of writing. As they work, walk around the room to ensure students stay on topic and to be available for any questions. 2. Ask students to share what they wrote, and ask then ask the following questions:  What decisions did you make to ensure you maintained a professional tone?  What format and method of delivery would be best for this situation?  How did you use inclusive language in your response? Bonus Activity 3. Watch for generic incoming mail (yours or your family). Select a generic letter (solicitation/junk mail) from some source that is requesting donations, promoting items, or selling goods or services. Evaluate the letter based on the chapter content L-O 13-5 Writing Your Way to Better Service and L-O 13-6 Setting the Tone of Your Correspondence.  What is your immediate reaction to the document?  How well does the correspondence meet the criteria outlined in these sections?  List any deficiencies that you note.

Face-to-Face—Written Correspondence at William’s Pest Control

This situation asks the student to imagine they handle the administrative functions for William’s Pest Control. William’s brother, John, and cousin, Mark, help with service calls. Stephanie Murphy, owner of Stephanie’s Convenience Mart and a customer of William’s Pest Control, has written to demand that the company pay for repairs to her building for damage done by termites. The student has been asked to write to the client to gain more information. The following questions are asked of the students: 14. How will you approach this situation? Based on what the letter from Ms. Murphy states, this may be a non-warranty issue since Formosan termites are excluded from coverage. Discuss the issue with John and Mark and get their perspective. You should also review the service paperwork from John and Mark’s visit to determine what service was provided and anything that they documented during their visit. 15. Do you believe that you should call Ms. Murphy, or are other means of communication necessary or appropriate? Explain your logic. From a service perspective, once you have gathered all the facts, you should give Ms. Murphy a call to get any additional information and review the summary of John and Mark’s visit with her. Since this issue could potentially turn into a legal one, do not make any commitments or promises. Inform her that you have sent a letter requesting additional details and that once you get her response, your company will review the case and get back to her within seven business days. 16. Because Ms. Murphy has described what she believes is negligence or a failure to perform properly by John and Mark, what additional actions might William’s take? Depending on Ms. Murphy’s response to your letter, you may need to consult an attorney. 17. Should a lawyer be consulted? If so, when and why? Depending on Ms. Murphy’s response to your letter, you may need to consult an attorney at that time. Since Ms. Murphy is demanding that William’s Pest Control

pay for the repairs and there might be disagreements about the contract, an attorney may be needed to provide input and guidance on how to respond to her demands.

Irlen, Helene, ―Reading by the Colors,‖ Perigree Trade, 2005.