NCFE Level 2
Certificate in Principles of
Customer Service
COMMUNICATION
PRODUCTS
EXPECTATIONS
ORGANISATIONS
SERVICES
POLICIES
Workbook 1
How to use your learning materials
This course is delivered on a flexible learning basis. This means that most of your
study will take place away from your Assessor/Tutor. It helps to carefully plan your
studying so that you get the most out of your course. We have put together some
handy tips for you below.
Study Guidance
Try to plan an outline timetable of when and where you will study.
Try to complete your work in a quiet environment where you are unlikely to
be distracted.
Set realistic goals and deadlines for the various elements of your course.
Plan what you are going to study during each session, and try and achieve
this each time.
After each session, reflect on what you have achieved and plan what you hope to
complete next time.
Remember that not only do you have the support of your Assessor/Tutor, but it is
likely that your family, friends and work colleagues will also be willing to help.
Assessor/Tutor Support
Your Assessor/Tutor will be available to support and guide you through the
programme. They are experts in your area of study and are experienced in helping
many different types of learners.
They can help you to improve the standard of work you submit and will give
you useful feedback on areas in which you have excelled, as well as where
you can improve.
Remember to listen to, or read, their feedback carefully. Ask if you are unsure
about any of the feedback you receive as your Assessor/Tutor is there to help.
Make note of any tips they give. Refer to the learning materials as they contain the
information you need to complete the end-of-unit assessments.
Look out for areas in which you can improve, and set yourself an action plan to
make sure you complete the required work.
Take positive feedback on board; this demonstrates you are doing things right and
have a good understanding of the subject area.
Use the feedback to avoid repeating any mistakes you may have made.
Enjoy your studies!
2
© LCG 2018
NCFE Level 2 Certificate in
Principles of Customer Service
Workbook 1
Workbook Contents
This workbook deals with underpinning knowledge required by employers for staff
working in a customer service role. The workbook covers the principles of customer
service, effective delivery of service, legal and ethical requirements, different types of
customer, the value of customer loyalty, and different types of employer organisation.
Within the workbook, there are several Knowledge Activities that help to focus on the
various topics. These are informal activities that help to consolidate knowledge. In
the last section, there are Extension Activities for learners who wish to develop their
knowledge further.
Contents
This workbook contains four sections:Page
Section 1:
Principles of customer service and delivery
Section 2:
Understand customers 87
Section 3:
Understand employer organisations
Section 4:
Extension activities129
Each section has a corresponding assessment that must be
completed in order to achieve this part of the programme.
The assessments for this workbook can be found in:
Assessment 1
4
108
NCFE Level 2 Certificate in
Principles of Customer Service
Assessment 1
Learner contact details:
Name:
Contact address:
Postcode:
Contact number:
Email:
When you have completed this workbook you should
attempt the assessment. Your Assessor/Tutor will then give
you detailed written feedback on your progress.
Learner declaration
I confirm that the answers in Assessment 1 were completed by me, represent my own
ideas and are my own work.
Learner signature:
Assessment date:
If you need any help in completing these assessments, refer to the
relevant section within Workbook 1, or contact your Assessor/Tutor.
Please tick one of the boxes below to show what your status will be when you complete this course.
 EMP 1 In paid employment for 16 hours or more
 GAP 1 Gap year before
per week
starting HE
 EMP 2 In paid employment for less than 16 hours
 EDU 1 Traineeship
per week
 EDU 2 Apprenticeship
 EMP 4 Self-employed for 16 hours or more per week
 EDU 3 Supported Internship
 EMP 5 Self-employed for less than 16 hours per week  EDU 4 Other FE* (Full-time)
 NPE 1 Not in paid employment, looking for work and
 EDU 5 Other FE* (Part-time)
available to start work
 EDU 6 HE
 NPE 2 Not in paid employment, not looking for work
 OTH # (please state)
and/or not available to start work (including retired)
 VOL 1 Voluntary work
………………………………
Assessment 1
1
Workbook 1
3
Section 1: Principles of customer service and delivery
When working through the examples, activities and assessments, please base your
answers on any of the following:
a customer service role you have in your current job
a customer service role in a previous job
an organisation that is familiar to you
an organisation that you have researched
Introduction
In this section, we are going to look at the principles of customer service and delivery.
We will look at the products and service that organisations offer their customers, legal
and ethical requirements and how to manage expectations. We will also examine how
to deliver excellent customer service, manage customer information and understand
the relationship between customer service and a brand.
The purpose and scope of customer service
Please read the following as it will help you to answer question 1.
We all know when we have received bad customer service, for example:
when sales assistants are too busy chatting to serve us
when staff in a restaurant or store are rude and unfriendly
when a call centre puts us on hold for half an hour
when our complaints are handled badly
But what makes customer service good?
Customers have expectations. They want:
efficient and polite service before, during and after a transaction (buying or
an
using products or services)
good-quality products and services
any complaints and problems to be dealt with properly
their opinion to matter
Good customer service meets these expectations.
4
© LCG 2018
Section 1: Principles of customer service and delivery
An organisation needs to offer good customer service at all times so that it can
survive and thrive. If the customers are satisfied with the products or services, they
return and they recommend the organisation to others. Quite simply, this keeps the
organisation alive and means that their employees’ jobs are safer.
The organisation
develops and provides
good-quality products
and services
The organisation
employs more staff,
and trains them
well in customer
service
The organisation’s
staff give good
customer service
The organisation
generates more
products and
services to cope
with demand
Customers’
expectations are
met and they are
happy with the
product or service
Customers
come back and
buy/use the products
or services again, and
they recommend
them to others
The purpose of customer service is to:
provide
good-quality products and services that meet or exceed customers’
expectations
provide an efficient and polite service before, during and after a transaction
treat customers with respect and consideration
deal with any feedback, complaints and problems effectively
Workbook 1
5
Section 1: Principles of customer service and delivery
The scope of customer service is very broad as it can affect many people. There can
be serious consequences if customer service is not good enough, for example:
dissatisfied customers who go elsewhere for their products and services
a loss of revenue and good reputation for the organisation
loss of jobs, security and career development for employees
a knock-on effect on suppliers if the organisation reduces its output or fails
knock-on effect on the local community if an employer moves away or makes its
a
workers redundant
On the other hand, good customer service has the scope to make a positive impact
on everyone concerned. For example, good customer service can:
meet
or exceed their customers’ expectations, inspire their loyalty and encourage
repeat business and recommendations
ensure
that products and services are developed and provided to meet and exceed
current and changing expectations
help
to make sure that the organisation is successful and sustainable, which can
have a positive knock-on effect on suppliers and the local community
help
to give staff job security and scope for career development with a successful
employer
When considering the scope of customer service, we need to remember that it is
important before, during and after the transaction when the customer buys or uses
a product or service.
Knowledge Activity 1: Look on the Internet and find three examples of how
companies define their customer service (e.g. the John Lewis Partnership) and
make a few notes about each statement.
1.
2.
3.
6
© LCG 2018
Section 1: Principles of customer service and delivery
An organisation’s service offer
Please read the following as it will help you to answer questions 2 and 3.
Organisations offer their customer a range of products and services. The extent and
limits of the customer service that an organisation offers its customers is called its
service offer.
The service offer will cover many things, for example:
the range of goods and services offered
pricing – e.g. stating the price including Value Added Tax (VAT), or maybe
excluding VAT for trade customers
discounts – e.g. buy one get one free; 10% off if customers buy today
delivery options – e.g. free for standard delivery when customers spend above a
minimum amount; charges for overnight or weekend delivery
installation options – e.g. charges for installing household appliances like washing
machines
warranties – e.g. extended warranties on electrical goods that guarantee repairs or
replacement if there are faults after the period covered by the manufacturer
returns policies – e.g. rules about exchanges or refunds on returned items that
are not faulty
other value-added features – e.g. loyalty card points
The service offer can include items and deals that are
in addition to the customer’s normal statutory rights,
which we cover later on.
An organisation’s service offer might be covered in a
Service Level Agreement (SLA) between two parties.
For example, trade show organisers will have an SLA
with the catering outlets that serve the public attending
the show. This will cover agreed levels of prices,
quality, service, waste disposal, safety and emergency
arrangements and so on.
Workbook 1
7
Section 1: Principles of customer service and delivery
The value of service offers for an organisation
Service offers can all be different, which can be valuable to an organisation that
wants to offer something that their competitors do not.
Supermarkets often change their service offer to make themselves more appealing to
current and potential customers. They might, for example:
have a special deal for a week to lure customers in within a few days
have long-term deals and bargains that customers know will always be there
offer a very wide range of choice – e.g. 50 brands of bread or coffee
offer
a select and restricted choice – e.g. only locally-produced, organic food
and drink
stay open for longer hours
offer free parking for a few hours
have a variety of trolleys and baskets to suit different customers
have wider aisles for easy access
make sure that their staff are known for always being polite and friendly
offer a ‘no-frills’ service with a very short turnaround time at the till
pack customers’ bags for them
take groceries to their cars
offer home delivery for in-store or Internet shopping
offer free coffee and newspapers to loyalty card customers
have
loyalty schemes so that customers can earn points that they can redeem for
goods and services
offer non-grocery services – e.g. foreign currency exchanges, pharmacies or eye tests
These service offers are all valuable to the organisation as they allow them to:
differentiate themselves from competitors
attract more business
keep
themselves in the public eye when they make announcements or offer
special deals
secure and maintain customer loyalty
set a high standard of customer service
meet and exceed customer expectations
8
© LCG 2018
Section 1: Principles of customer service and delivery
Knowledge Activity 2: Think about businesses that you use and make a
few notes about what they offer to make themselves seem different to their
competitors. For example:
Supermarkets and local food stores
Mobile phone providers
Local restaurants and cafes
Delivering high-quality customer service
Please read the following as it will help you to answer question 4.
As we have already seen, good customer service is at the heart of an organisation’s
ability to survive and thrive, look after its customers and provide better job security
and prospects. To provide high-quality customer service, an organisation needs to:
meet or exceed customers’ expectations
ensure that staff perform at the highest level
Customer expectations can be met or exceeded
by giving them:
the best service offer
good-quality products and services
highest quality of customer service before,
the
during and after the transaction
Workbook 1
9
Section 1: Principles of customer service and delivery
Staff performance needs to follow or exceed agreed standards to make sure that
customers are given high-quality service at all times. Standards will apply to, for
example:
politeness when speaking or writing to customers
efficiency
knowledge about all aspects of the service offer
being helpful and approachable
dealing with queries, problems and complaints
knowing when and how to liaise with colleagues and others
It is important for an organisation to provide high-quality customer service as this will,
for example:
maintain, promote and increase customer loyalty
reduce the number of complaints and rejected goods and services
maintain and improve the organisation’s reputation
portray a good image of the organisation
help to secure future business, profits and employment for all concerned
Knowledge Activity 3: Think of a time when you received bad customer
service.
What happened?
How did you feel?
How did you feel about the organisation?
How did your bad experience make you feel about buying from the
organisation again and recommending them to your friends and family?
10
© LCG 2018
Section 1: Principles of customer service and delivery
Competitors’ activities
Please read the following as it will help you to answer question 5.
When organisations look at their service offer and review their overall position, they
need to look at what their competitors are doing. This helps them to make sure that
their own service offer is still attractive, up to date and competitive.
We just need to think about supermarkets again to realise how important it is to
have knowledge of what competitors are doing. The different companies are always
looking out for new products, new deals and new trends, and it is vital to make sure
that their knowledge is as up to date as possible. This helps them to avoid missing
opportunities to improve their own service offer for old and new customers.
For example, if one supermarket chain decides to stop selling clothes because they
are no longer profitable for them, the other supermarkets will look at their customer
profiles and try to work out what they should do. Similarly, if a trend changes away
from self-service scan-and-pack to the more traditional check-outs with staff (because
customers are fed up with the problems and technology), all of the supermarkets will
review their own check-out operations.
Organisations will keep up to date with their competitors’ activities in a variety of
ways, including:
using
the competitors’ service themselves – e.g. secret shopping in another
supermarket
independent
research – e.g. by a retail sales and marketing consultancy; by
reviewing trade papers and magazines to identify trends
customer surveys – e.g. using focus groups, forms, Internet forums or social media
By being aware of competitors’ activities and service offers, an organisation can,
for example:
make sure that its service offer is reliable, competitive and dependable
protect future revenue by being aware of changes in customer expectations
change their service offer to meet changing expectations and trends
Workbook 1
11
Section 1: Principles of customer service and delivery
Barriers to effective customer service
Please read the following as it will help you to answer question 6.
Several things can stop customer service being effective. Organisations and individuals
need to be aware of these potential barriers so that they can put things right and
achieve a high quality of customer service.
Barriers can include, for example:
Policies and procedures that are restrictive and hard to manage
An organisation’s policies and procedures might prevent staff giving good customer
service for a variety of reasons. For example:
Several
shops and cafes in a tourist town close at lunchtime on Saturdays and
refuse to open on Sundays, even in the main tourist season.
restaurant does not let customers come in just for a coffee and cake. They can
A
only come in for full meals, even in quiet periods.
Inadequate customer service systems
Some organisations do not have adequate systems or procedures to support effective
customer service. For example:
small hotel’s booking-in system is time-consuming and relies on customers and
A
staff handling several pieces of paper.
A gift shop refuses to accept credit and debit card payments.
Refunds
and queries in a retail outlet can only be corrected by the senior manager,
causing delays at tills.
Staff problems
Many staff problems can affect the quality of customer service. For example:
Staff
may be unclear about their responsibilities and limits of their authority. This
makes it hard for them to make a decision and deal with problems.
Staff shortages often cause queues and poor service.
12
© LCG 2018
Section 1: Principles of customer service and delivery
Staff
might not have the right levels of knowledge, experience or competence to be
able to do the job well – e.g. if they are new to the role.
Staff
may not be motivated to give good service due to lack of incentives and
accountability.
Lack of a customer service culture
Many organisations do not have a good culture of customer service. They often rely
on the goodwill and loyalty of their customers, or they become complacent because
they know that no one else can offer what the customer needs. For example, if there
is only one pub in a village, the managers as there is nowhere else for the locals to
go.
Organisations without a customer service culture often take customers for granted
and do not adapt to their changing needs and expectations. However, they can find it
very difficult to attract new customers, or keep their old customers interested.
Poor communication
Poor communication between any of the stakeholders of an
organisation (anyone who is interested in or connected with it)
can be a barrier to effective customer service. For example, an
organisation might have poor communication with:
its workforce – leading to confusion, problems and lack of goodwill
suppliers – leading to delays and problems with ordering goods
its
and services for customers
its customers – making complaints and problems far more likely
officials,
such as local government officers or quality inspectors –
leading to difficulties with legal compliance or when seeking
planning permission
financial
institutions, such as banks – making it difficult to seek finance to upgrade
the service offer
Poor communication between colleagues can also cause problems that affect the
continuity and level of customer service. This happens especially when one colleague
is passing responsibility to another, maybe at the end of a shift. Colleagues need to
hand over carefully so that the customer receives consistent attention.
Workbook 1
13
Section 1: Principles of customer service and delivery
Knowledge Activity 4: Imagine that you are coming to the end of your shift
working in a nursing home. One of the residents (your customer) has asked
you to make an appointment with the visiting hairdresser for them but you have
not been able to get through. When you hand over to your colleague at 2pm,
what should you do about the request?
Effective follow-up service
Please read the following as it will help you to answer question 7.
In customer service, following up is an important element. As we have seen, good
customer service needs to be given before, during and after a transaction. The actions
that are taken after the transaction can have a big impact on the relationship with
the customer and can, for example:
meet or exceed their expectations
increase their loyalty
reduce the chances of problems or complaints
enhance the organisation’s good reputation
increase the chances of additional business
14
© LCG 2018
Section 1: Principles of customer service and delivery
Follow-up service can take many forms, for example:
after-sales service
asking for and checking customer feedback
answering questions about products and services
offering
associated products or services in addition to the original transaction
(upselling)
dealing with queries, problems and complaints effectively
offering
customers something as a thank you for their custom – e.g. vouchers or an
invitation to a corporate event
Effective follow-up service can have many features, for example:
Fast and reliable response times
Customers often need a fast response time, especially if their query is urgent. A
customer who calls an emergency roadside assistance company when their car has
broken down may need a fast rescue, particularly if there are children in the vehicle.
Customers also need a reliable response time. If someone says that they will call
them back by a certain time, this needs to happen, even if it is only to give them an
update, an explanation for the delay and new deadline.
When an organisation has several competitors who would be more than happy to
step in and give the customer what they want, a slow response time would lose them
valuable business.
Response times need to be realistic and as honest as possible. There is no point
in promising a time that cannot be achieved as this would affect the organisation’s
reputation for being reliable and truthful.
Contacting customers after their transactions
Getting in touch with customers soon after services or products have been provided
can be very valuable. It is usually very important to make sure that the product or
service meets the customer’s needs and expectations. If the customer has problems
or queries, they can ask for assistance straight away and reduce the chances of
problems developing further and becoming complaints.
Having said that, pestering customers several times in a restaurant to see if their
meal is all right can be incredibly annoying, so a balance needs to be found. It can
often be more effective to let customers know that we are there if they wish to ask
anything, rather than bombarding them with irritating questions.
Workbook 1
15
Section 1: Principles of customer service and delivery
Proactively keeping customers up to date about new developments
An effective follow-up service would include being proactive about letting customers
know about new products or services that are linked to their original transaction. For
example, a garage that sells new cars will often contact its previous customers to let
them know about new cars that are going to be on sale, offering them the chance to
test-drive the vehicles and discuss their options.
Offering incentives
Incentives can be a useful way of enhancing the follow-up service for customers. They
can be offered as a thank you for previous custom and can be used to entice old and
new customers to try an organisation’s products and services, maybe for the first time.
Incentives that are often used include, for example:
discounts
– e.g. two meals for the price of one on Wednesday and Thursday
lunchtimes
free
extras – e.g. three years of servicing for a new car; free bags with each laptop
purchased; free installation when buying a new dishwasher; free courtesy car to
use when the customer’s vehicle is being serviced
invitations
to events – e.g. to attend a launch of a new
product with complimentary food and drink
rewards
– e.g. vouchers or cash for introducing new
customers who go on to buy the products or services
cheap
finance – e.g. a low-interest or interest-free loan
when buying a car or furniture
16
© LCG 2018
Section 1: Principles of customer service and delivery
Knowledge Activity 5: Have a look at three major car manufacturers on
the Internet and make a few notes about the incentives they are offering
to customers who buy a new car.
1.
2.
3.
Sales and consumer-related legislation and regulations
Please read the following as it will help you to answer question 8.
Sales and consumer-related legislation and regulations can affect the delivery of
customer service, and customers’ rights need to be protected and observed at all
times. It is useful to be aware of the rules and laws that affect each industry so that
the service offer does not take away any legal rights.
The following table gives examples of sales and consumer-related legislation and
regulations that deal with the legal rights of customers:
Legislation or
regulation:
General Data
Protection
Regulation
Main points:
Customers’ legal rights:
This regulation deals with data
security and how personal
data is used and managed
by an organisation – e.g.
bank account details, email
addresses, CCTV footage,
medical records, tax records,
full names, date of birth and
contact details.
Customers have legal rights
about how their personal
information is used and
managed.
Workbook 1
17
Section 1: Principles of customer service and delivery
Consumer Rights The Act covers the supply of
Consumers have the right to
Act 2015
goods, services and digital
reject goods and claim repair or
content through sales, hire, hire replacement.
purchase and in work/materials
contracts.
The goods must:
be of satisfactory quality
be fit for a particular purpose
match
the description,
sample or model
Consumer
Protection Act
1987
installed correctly (when
be
this is part of the contract)
People can claim compensation Customers have legal rights
for death, injury or damage to
about misleading information
and can claim compensation if
property from faulty goods.
goods are faulty.
Displaying or giving customers
misleading information is an
offence.
These deal with the location
of the retailer and purchaser,
delivery deadlines, cooling-off
periods, cancellation rights,
confirmation of purchases and
rights to refunds.
The consumer has updated
rights to cancel and traders can
no longer charge for additional
items added by a pre-ticked box
online. Delivery times, telephone
helpline charges and returning
faulty goods are also covered.
Service contracts can be
cancelled online, and refunds
need to be made within strict
time limits.
Consumer
This deals with the licensing
Regulated by the Financial
Conduct Authority (FCA),
Credit Act 2015 and controlling of credit,
customers have rights when
(incorporating
hire purchase agreements.
the 1974 Act)
Customers can challenge unfair they enter into credit or hire
relationships with creditors and purchase agreements. For
there is an ombudsman scheme example, there are rules about
to hear complaints.
guarantors, high-cost-short-term
credit, and management of
arrears.
Consumer
Contracts
Regulations
2014
18
Section 1: Principles of customer service and delivery
Consumer
Protection from
Unfair Trading
Regulations
2008 (and later
amendments)
Contracts
(Rights of Third
Parties) Act
1999
Consumer
Contracts
(Information,
Cancellation
and Additional
Charges)
Regulations
2013
Trade
Descriptions Act
1968
Transport Act
2000 (and later
additions and
amendments)
The regulations ban traders from Customers have the right to
using unfair practices.
honest market practice and
to enter a contract in good
faith. They are protected from
misleading practices and
aggressive sales techniques.
The law gives rights to anyone
If something is bought as a
who was intended to benefit
gift and proves to be faulty,
from the transaction.
the recipient or buyer can take
action for breach of contract.
The regulations cover refunds.
Consumers can change their
minds within 14 days of
receiving goods in most cases.
This covers the description
of goods and services.
Descriptions must be accurate,
and the consumer has rights
if the product, service or
accommodation is not as
described.
This law deals with all forms
of travel – e.g. airlines and air
traffic control; railways and
buses; parking fines and tolls;
all road users.
Customers have rights if they
believe that they have been
misled by false claims.
Mainly applicable to the travel
industry, or for councils or
companies who provide parking
or transport, customers may
dispute parking fines, rail, air or
bus services.
The Civil
These regulations formalise the Customers using airports or
Aviation (Denied compensation and assistance
airlines can have rights if they
Boarding,
that airlines must give
are denied access to a plane.
Compensation
passengers who are not allowed This could be because of bad
and Assistance) to board their booked flight.
weather, delayed aircraft or
Regulations
overbooked seats.
2005
Workbook 1
19
Section 1: Principles of customer service and delivery
The effects of legislation and regulations on customer service
Each piece of legislation or set of regulations can have an effect on the delivery of
customer service. They establish the customer’s legal and statutory rights as well as
the organisation’s legal and statutory responsibilities. The products and services need
to meet the legal requirements and staff need to follow clear procedures to make
sure that they comply with all relevant laws and regulations.
The organisation needs to have clear procedures in place, and they need to train and
monitor their staff to make sure that standards are being met.
Staff members have responsibilities too – mainly to follow the employer’s training and
procedures, use all equipment correctly and report any issues.
On a day-to-day basis, the legislation, regulations and the procedures laid down by
the organisation become part of the normal work routines. Everyone needs to be
aware of the reasons for doing certain actions so that they can understand their
importance and explain why things are done in a particular way.
For example, Consumer Rights Act 2015 states that goods must:
be of satisfactory quality
be fit for a particular purpose
match the description, sample or model
be installed correctly – when this is part of the contract
Consumers have the right to reject goods and claim repair or replacement in certain
circumstances.
The Chartered Trading Standards Institute (CTSI) and the Department for Business,
Innovation and Skills have worked together and produced a sign or notice that can be
placed at the point of sale to show customers their rights:
Buying Goods
The Consumer Rights Act 2015 says goods must be as described, fit for purpose
and of satisfactory quality. During the expected life of your product you’re entitled
to the following:
up to 30 days: if your item is faulty, then you can get a refund
to six months: if your faulty item can’t be repaired or replaced, then you’re
up
entitled to a full refund, in most cases
to six years: if the item can be expected to last up to six years you may
up
be entitled to a repair or replacement, or, if that doesn’t work, some of your
money back
20
© LCG 2018
Section 1: Principles of customer service and delivery
You don’t have a legal right to a refund or replacement just because you change
your mind, but please do ask traders about their returns policy as they may be
able to help in-store.
This is a summary of your key rights. For detailed information please visit the
Citizens Advice website www.adviceguide.org.uk or call 03454 04 05 06.
When buying goods at a distance, over the Internet for example, an extra law can be
mentioned in the notice:
The Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013 say that within 14 days of receiving your goods, in most
cases, you can change your mind and get a full refund.
The organisation needs to have policies and procedures in place for dealing with
problems. When delivering customer services, it is important to make sure that
customers’ rights are respected, and to handle complaints and problems properly
and quickly.
The Consumer Rights Act 2015 also covers services and the trader must meet the
following standards:
the service must be carried out with reasonable care and skill
information
said or written to the consumer is binding where the consumer
relies on it
the service must be done at a reasonable price
the service must be carried out within a reasonable time
The CTSI’s suggested wording for a notice at the point of sale of services is:
Buying Services
The Consumer Rights Act 2015 says:
can ask the trader to repeat or fix a service if it’s not carried out with
you
reasonable care and skill, or get some money back if they can’t fix it
if you haven’t agreed a price upfront, what you’re asked to pay must be
reasonable
if you haven’t agreed a time upfront, it must be carried out within a
reasonable time
This is a summary of your key rights. For detailed information please visit the
Citizens Advice website www.adviceguide.org.uk or call 03454 04 05 06.
Workbook 1
21
Section 1: Principles of customer service and delivery
When buying services at a distance, the extra information needed on the notice is:
The Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013 say that, in most cases, you can cancel within 14 days.
If you agree that the service will start within this time, you may be charged
for what you’ve used.
When traders cannot settle a dispute with a customer, they need to give the customer
details of an Alternative Dispute Resolution (ADR) provider and provide the consumer
with the following information:
a statement that the trader cannot settle the complaint with the consumer
name and website address of an ADR provider that could deal with the
the
complaint, if the consumer wishes to use ADR
whether
the trader is obliged or prepared to submit to an ADR procedure operated
by that provider
ADR is any process for the resolution of a dispute out of court. The simplest and most
common form of ADR is direct negotiation, and this often leads to a solution.
Consumer Protection Act 1987
The Consumer Protection Act 1987 states that:
people
can claim compensation for death, injury or damage to property from
faulty goods
displaying or giving customers misleading information is an offence
Most cases are settled out of court, but staff need to be aware of the safety of the
products they are selling. If they think that an item is unsafe or faulty, they should
refer the matter to the manager.
They also need to make sure that they do not give out misleading information to
customers.
22
© LCG 2018
Section 1: Principles of customer service and delivery
Knowledge Activity 6: Have a look at information about the Consumer
Rights Act 2015 online and make a few notes about:
Customers’ rights to reject goods
Repair and replacement rights
What customers can do if a service is not carried out with reasonable care
and skill
The website www.businesscompanion.info is a useful source of information.
Health, safety and environmental legislation and regulations
Please read the following as it will help you to answer questions 9a and 9b.
We are going to have a look at the main health, safety and environmental legislation
and regulations that may affect customer service delivery. The main ones are:
The Health and Safety at Work Act 1974
This is the main piece of UK legislation for health and safety and applies to all
industries. This Act of Parliament covers all employers, employees and customers on
the premises. The Health and Safety Executive (HSE) is the government body that is
responsible for creating and enforcing the legislation.
An employer’s responsibilities are based on duty of care of the people in their
workplace. Employers have to do a risk assessment to analyse any potential health
and safety hazards. They also have to appoint a competent person, usually one of
the owners in a small business, or a member of staff trained in health and safety in a
large organisation. If there are more than five employees, the employer must keep an
official record of its risk assessments, and have a formal health and safety policy.
Workbook 1
23
Section 1: Principles of customer service and delivery
There are many aspects that the employer has to consider, and the HSE gives more
detailed information. However, broadly speaking, the employer must also:
make
sure that the workplace is free from risks to health, as far as is reasonable
and practical – e.g. arranging for proper cleaning, providing sinks for hand-washing,
organising waste areas to reduce the risk of fire or attracting vermin, taking
precautions with flammable and explosive hazards
assess
any risks and take action to reduce these – e.g. by providing safety signs,
moving the food waste bins away from the kitchen door
share
information about health and safety matters with other employers who use
the building
provide
health and safety information, training and supervision for employees and
others
provide
first-aid facilities, and other welfare facilities, and health supervision as
needed – e.g. a first-aid box, a staff restroom, maybe a medical room
provide
any necessary safety clothing and Personal Protective Equipment (PPE),
free of charge – e.g. gloves, aprons, safety shoes, protective goggles
up emergency procedures, and make sure that employees and customers can
set
understand them – e.g. fire evacuation procedures, fire exit signs
ensure
that they provide training and supervision for manual handling – e.g. training
staff how to lift heavy items to reduce the risk of injury
ensure
that all plant, machinery and equipment is correct for the job, properly
maintained, safe to use, with safe working practices set up and followed
make
sure that the workplace meets health, safety and welfare requirements – e.g.
ventilation, temperature, lighting, rest facilities, toilet and washing facilities
report
injuries, diseases and dangerous occurrences to the appropriate authority
under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
(RIDDOR)
Under the legislation, employees also have responsibilities and must:
take
reasonable care of their own and others’ health and safety by following
instructions, guidelines and company policies
cooperate
with their employer on health and safety issues, and follow the health
and safety training given
use
work items correctly, in accordance with instructions, training and agreed
safe practices
never tamper with or misuse anything provided for health, safety or welfare
24
© LCG 2018
Section 1: Principles of customer service and delivery
wear the correct PPE when provided
report any hazards or risks to the employer or health and safety representative
The impact on customer service delivery can be wide-ranging.
For example:
businesses
selling food that is eaten on their premises need
to offer toilet and hand-washing facilities for their customer
staff need to use warning signs to warn customers about hazards
organisations
need to have fire and emergency evacuation
procedures and signs to help to protect staff, customers
and other visitors to their premises
if customers sustain certain injuries or illnesses
whilst in the care of the organisation, these
may need to be reported under RIDDOR
Manual Handling Operations Regulations 1992
Incorrect manual handling is one of the most common causes of injury at work. These
regulations exist to help to minimise injuries from lifting and handling. They ensure
that the correct training and equipment are provided and used.
Employers are required to:
avoid the need for hazardous manual handling, as far as is reasonably practicable
assess the risk of injury from any hazardous manual handling that cannot be avoided
reduce
the risk of injury from hazardous manual handling, as far as is reasonably
practicable
In reality, this means that employers need to
provide and maintain the correct equipment
and training for their staff. Trolleys, hoists or
other lifting equipment need to be provided
when needed, and staff need full training and
monitoring.
Workbook 1
25
Section 1: Principles of customer service and delivery
Employees also have duties under the regulations and should:
follow systems of work that are in place for their safety
use equipment that is provided for their safety properly
cooperate with their employer on health and safety matters
inform the employer if they identify hazardous handling activities
take care to ensure that their activities do not put others at risk
The impact on customer service can be considerable, especially in a healthcare
environment when people need to be lifted or moved. Customers need to be handled
correctly and with dignity and respect.
Manual handling can also be a feature in the retail sector when staff need to be aware
of the limits for lifting items of different weights and at different heights. For example, in
a DIY superstore customers are advised to ask for help with heavy or awkward items.
Personal Protective Equipment at Work Regulations 1992
Employers need to provide Personal Protective Equipment
(PPE) and employees need to use it correctly. PPE is
equipment that will protect the user against health and
safety risks at work – e.g. gloves, aprons, high-visibility
(hi-viz) clothing, safety helmets, safety shoes or boots,
safety harnesses, safety goggles or glasses.
PPE can have an effect on customer service delivery in
some industries. For example:
customers
who do bungee jumps needs harnesses
and helmets
adult
customers riding horses at a riding school need helmets and safe footwear,
and children may also need body armour
customers
visiting a building site will need safety helmets, safe footwear and hi-viz
jackets or waistcoats
26
© LCG 2018
Section 1: Principles of customer service and delivery
Control of Substances Hazardous to Health (COSHH) Regulations 2002
COSHH regulations cover hazardous substances that may affect health in the workplace
– e.g. chemicals, dust, fumes, detergent, wet working, lubricant, paint or glue.
In some work environments, there can be many hazardous substances. These could
be, for example: chemicals that may burn the skin, affect the eyes or cause breathing
problems; contaminated surfaces; airborne dust landing on the skin or being inhaled;
wet working causing skin problems such as dermatitis.
Customer service delivery can be affected where hazardous substances are present.
For example:
customers
visiting a manufacturer’s factory could be at risk and need to take
proper precautions and use the correct PPE
customers
who do a driving experience day with tanks and other unusual vehicles
will need to be aware of fuels, oils and other potentially hazardous substances, and
follow the correct procedures
Reporting of Injuries, Diseases and Dangerous Occurrences
(RIDDOR) Regulations 2013
These regulations require employers, self-employed and people in charge of premises
to report certain incidents, such as food poisoning and major accidents.
Incidents have to be reported when there are:
accidents resulting in the death of any person
accidents resulting in specified injuries to workers
non-fatal accidents requiring hospital treatment to non-workers
dangerous
occurrences – e.g. the collapse or overturning of lifting equipment used
for people, materials or goods
Workbook 1
27
Section 1: Principles of customer service and delivery
Environmental Protection Act 1990
This is a very important piece of legislation and affects many organisations, directly
and indirectly. It makes provisions for improved control of pollution from certain
industrial and other processes. The Act brought together several different agencies
and laws, and streamlined their powers and obligations.
The areas covered by the Act include:
emissions
from certain processes and substances – e.g. smoke, fumes,
gases, dust, steam, smell, effluvia (unpleasant discharge) or noise
disposal of controlled household, industrial or commercial waste on land –
e.g. unauthorised or harmful deposit, treatment or disposal of controlled waste
contaminated land – e.g. how to deal with land after a chemical spill to avoid it
getting into the water supply
litter – e.g. defining a set of criminal offences
radioactive substances – e.g. controlling access, transport and storage
genetically modified organisms (GMOs) – e.g. providing a system for notification
and risk assessment for the importing, purchasing, keeping, releasing or marketing
of GMOs
conservancy – e.g. creating the Nature Conservancy Councils for England and
Scotland, and the Countryside Council for Wales
This legislation can have an effect on customer service delivery for some industries.
For example, restaurants need to be careful about their emissions from their airconditioning systems and litter from takeaway food.
Hazardous Waste Regulations 2005
Hazardous waste is something that can pose a threat to human health or the
environment – e.g. poisonous, flammable, corrosive or carcinogenic. In the workplace,
this could be, for example: medical waste such as used needles; chemical waste and
gases from cleaning or manufacturing processes; contaminated water or liquid that
must not go into storm drains or the normal sewer system; fluorescent light tubes;
solvents; contaminated cloths; aerosols; non-edible oils.
28
© LCG 2018
Section 1: Principles of customer service and delivery
Hazardous waste is monitored and policed by the Environment Agency and
the regulations cover all aspects of its management, handling and disposal.
Manufacturers label the packaging with details of how to use and store the product,
and the possible problems and side effects that may occur. The instructions also
cover disposal of the product, and what to do in the event of an accident with it.
Customers may need to be made aware of the safe disposal of certain waste. For
example, on a campsite, customers need to make sure that their toilet waste goes
into the correct drain. As part of their service offer, a well-run campsite will make sure
that their disposal facilities are as convenient, hygienic and well-labelled as possible.
Waste Electrical and Electronic Equipment (WEEE) Regulations 2013
The aim of these regulations is to reduce the amount of untreated WEEE disposed
of in landfill sites, to ensure that it is dealt with properly, and to require electronic
equipment producers to pay for its disposal.
If possible, WEEE needs to be recycled, reconditioned or reused. Some WEEE is
hazardous and requires special treatment and disposal – e.g. fridges, televisions,
computer monitors and fluorescent lighting.
Retailers who sell electrical goods must either:
provide a free and in-store take-back service to customers
set up an alternative free take-back service
Retailers can join the Distributor Take-back Scheme (DTS) instead of providing their
own service.
They must provide free written information to their customers on:
which take-back service they provide, including collect on delivery
how they can reuse and recycle electrical and electronic equipment
why this waste needs to be separated from other waste
the damaging effects of not recycling electrical and electronic equipment
the meaning of the crossed-out wheelie bin symbol
Workbook 1
29
Section 1: Principles of customer service and delivery
Shops can provide this information by, for example:
displaying posters in their stores about which services they provide
including information leaflets with the electrical and electronic equipment they sell
Online retailers must publish this information on their websites.
Batteries and vehicles at the end of their lives are also covered by regulations.
Other legislation and regulations
The following regulations and legislations apply to all industries:
Waste (England and Wales) Regulations 2011
This covers the general sorting of waste.
Regulatory Reform (Fire Safety) Order 2005
This covers fire risk assessment, fire safety training,
equipment and procedures.
Health and Safety (First Aid) Regulations 1981
These lay down the rules for the provision of first-aid
equipment, facilities and people so that employees and
customers can be given immediate help if they are injured or taken ill.
Producer Responsibility Obligations (Packaging Waste) Regulations 2007
These are aimed at reducing packaging. The regulations divide the ‘packaging chain’
into four activities:
raw material manufacturers – e.g. making the steel for food cans
convertors – e.g. making the food cans
packers/fillers – e.g. the company that fills the cans with food
seller – e.g. the supermarket that sells the canned food to the consumer
30
© LCG 2018
Section 1: Principles of customer service and delivery
The seller’s actions can have an impact on customer service as customers can have
issues with packaging – e.g. too much packaging; weak packaging that does not
protect the goods; packaging that is ‘green’ but very hard to open.
Smoke-free (Premises and Enforcement) Regulations 2006 (part of the Health
Act 2006)
In England, places open to the public, or used as places of work, must be smokefree (other parts of the UK have their own version of the regulations). These include
places where a worker enters to make a delivery or provide a service, and most work
and public vehicles. ‘No Smoking’ signs must be shown in certain places, including
smoke-free vehicles.
Useful website: Health and Safety Executive – www.hse.gov.uk
A very useful site that covers a wide range of subjects on health and safety –
e.g. guidance notes, risk assessments, WEEE, COSHH, controlling risks, different
industries, and health and safety myths.
Effects on customer service delivery
As we have seen, legislation and regulations put safeguards in place for the safety of
customers and staff. They also establish rights and responsibilities about the safety of
products and services, as well as environmental protection.
As always, organisations need to train and monitor staff, inform people and take
reasonable care of their workforce, customers and other visitors. Staff need to follow
procedures and report any issues that might need attention.
Some of the procedures may need explaining so that customers, staff and others
understand the aims of the legislation, regulations and work activities.
Workbook 1
31
Section 1: Principles of customer service and delivery
Knowledge Activity 7: In the table below, give examples of how each
one can have an effect on customer service delivery.
Example of how customer service delivery might
be affected
The Health and Safety
at Work Act 1974
Manual Handling
Operations Regulations
1992
Control of Substances
Hazardous to Health
(COSHH) Regulations
2002
Waste Electrical and
Electronic Equipment
(WEEE) Regulations
2013
Other legislation and regulations that can affect customer
service delivery
Each industry will have a mixture of laws and regulations to follow. Organisations need
to train and monitor their staff, and the staff need to make sure that they understand
the training and keep it up to date.
Other laws may not have a direct impact on customers’ legal rights, but there might
be an indirect effect on the policies and procedures that apply to customers. For
example, in the hotel industry, organisations may have to comply with laws about:
alcohol licensing and duty (tax) on alcohol – if they have bar or restaurant facilities
gambling – if they have a casino
local authority planning rules about the number of letting rooms
fire safety – for fire escapes, fire doors and equipment
32
© LCG 2018
Section 1: Principles of customer service and delivery
food safety and food waste – to cover meals for guests
common
law about contracts and property – to cover bookings, valuables and other
personal property
illegal workers – when taking on staff
money laundering – especially when receiving cash
tax and VAT – to be paid to HMRC (HM Revenue and Customs)
Ethical considerations
Please read the following as it will help you to answer questions 10 and 11.
There are many ethical considerations that can affect customer service. Some
organisations have their own ethical policies and procedures, and these explain their
ethical values and show how they treat their workforce, customers, suppliers and others
connected with them. For example, they might have policies and procedures on:
Fairness – e.g. pricing, how customers are treated, levels of service offered and
provided
Equality and diversity – e.g. respecting people’s differences and not tolerating
discrimination
Standards and codes of practice – e.g. following industry standards of customer
service, work practices and quality of supplies
Supporting ethical and sustainable trade – e.g. using suppliers in the fair trade
scheme, avoiding suppliers who exploit their workforce or use unsustainable or
unacceptable methods
Environmental and ecological impact – e.g. minimising emissions and the use of
fossil fuels, having high standards for waste management and recycling, using local
produce and suppliers
Animal welfare – e.g. avoiding animal testing for products and intensive farming,
promoting and supporting free-range and sustainable farming
Giving back to the community – e.g. working with local, national and international
charities and educational foundations and groups
Workbook 1
33
Section 1: Principles of customer service and delivery
Effects on customer service delivery
When an organisation follows ethical codes, there can be effects on customer service
delivery. For example, an organic food supplier that provides local and seasonal
produce, and refuses to allow food to be transported by air, will not be able to offer
customers a full range of foods all year round. Strawberries, for instance, will only be
available in the warmer months.
This means that:
customers
need to be aware of any restrictions and understand the ethical reasons
behind the decisions – e.g. to reduce emissions and food miles
staff
need to be trained, able to explain policies and procedures, and offer
alternatives
suppliers
need to be supported to help them to be as efficient and sustainable as
possible – e.g. working with the organisation to develop sustainable methods and
offer different produce for each season
Similarly, if an organisation insists on paying a living wage to all of its suppliers and
has to charge their customers a bit more than less-ethical competitors, this needs to
be communicated with customers.
Some customers will reject the service offer, due to the price or restricted supply.
However, if customers support the ethical policies and procedures, and can maybe
afford to pay a little more, they will usually accept the compromises and value the
organisation’s commitment and beliefs. Ethical considerations can be positive selling
points that will attract and inspire loyalty of like-minded customers.
Equality considerations
In the UK, there have been serious efforts over many years to reduce discrimination
and prejudice. Discrimination occurs when a person is treated less favourably than
another person in the same situation because of their race, gender, disability,
religious beliefs etc. For example, in the past there was sex discrimination, and it was
legal to pay men and women at different rates for the same job.
Cultural influences and legislation have changed to encourage everyone to strive for
equality. Equality is about making certain that people are treated fairly and are given
fair chances.
34
© LCG 2018
Section 1: Principles of customer service and delivery
However, equality is not about treating everyone in exactly the same way. It is about
recognising the importance of everyone as an individual, and making sure that their
needs are met in a variety of ways.
Equality is supported through anti-discrimination legislation, particularly the Equality
Act 2010. This Act addresses unfair discrimination against people:
the workplace – during recruitment and employment – e.g. in care homes,
in
offices, retail, voluntary workplaces
in education – e.g. schools, colleges, training companies
consumers – e.g. in shops, on the Internet, in cafes and restaurants, when
as
buying or renting property
when using public services – e.g. healthcare, libraries, transport, councils, civil service
in clubs with more than 25 members
The Equality Act 2010 means that all people are now protected from discrimination
due to their:
age – young (but over 18) or old are protected at work and in work training
disability or impairment – organisations must make ‘reasonable adjustments’ to
accommodate staff, customers and visitors with disabilities
gender – equal pay, training and opportunity for males and females
gender reassignment – people changing from male to female, or female to male
marriage
or civil partnership – preventing discrimination on the grounds of being
married or in a civil partnership at work or in work training
pregnancy
or maternity (including breastfeeding) – only reasons of safety are
not covered – e.g. equality may not be possible for pregnant women in some
circumstances if the activity could harm them or the baby
race – wherever they were born, their parents’ and their own race, colour, ethnicity
are protected
religion or beliefs – any religion, lack of religion or personal belief is protected
sexual orientation – heterosexual, gay, lesbian and bisexual people are covered
Under the Act, these are called protected characteristics. These characteristics are
protected in most circumstances, and organisations need to have sound operational
reasons for discrimination.
Workbook 1
35
Section 1: Principles of customer service and delivery
Organisations must make sure that discrimination is not tolerated – in the workplace,
in shops, in healthcare etc. They have to train and monitor their workforce, and put
in place policies and procedures for dealing with problems and complaints. They
need to make sure that all employees, customers and others know where to find the
information.
Effects on customer service delivery
The effects on customer service delivery can be quite varied.
Practical issues
There may be practical issues that an organisation has to consider. For example,
hospitals, colleges, public transport, shops, restaurants, hotels, offices, call centres
and so on must be as accessible as possible. There are numerous aids and
adaptations that an organisation may need to use, such as:
ramps for wheelchair users, pushchairs and people with walking difficulties
loop
systems for those with hearing difficulties – a special microphone system that
hearing aids can be tuned into to boost the sound
subtitles
on training and information DVDs – for hearing impaired and also useful
for those whose first language is not English
wide doors and corridors, adapted kitchen units to allow space for a wheelchair
assistance
for people with sight impairments – large print forms, Braille forms and
signs, large computer screens, facilities for guide dogs
lifts and doors which open automatically, or that have special buttons to press
handrails, grab rails
adapted
changing and toilet facilities – called accessible toilets, most have wide
doors, room for wheelchairs, accessible handrails, sinks and driers
Organisations have to make ‘reasonable adjustments’. In some small, old buildings,
for instance, it is not possible to put in ramps. Sometimes there will be a special
button outside for people in wheelchairs to press to call a staff member who will
come out and offer assistance. This is not a problem legally as the organisation has
done all that it can.
36
© LCG 2018
Section 1: Principles of customer service and delivery
Supportive behaviours
In the customer service role, staff can do several things to promote and maintain
equality and diversity at work. Staff can:
observe,
understand and respect different dress codes and symbols – e.g. customers
wearing a cross, hijab or turban
respectful and aware of how different genders can be treated in other cultures –
be
e.g. some cultures can seem quite sexist to us in the UK, with the husband making
all of the decisions during a transaction, for instance
sensitive to the person’s gender – e.g. female patients may prefer or insist on
be
seeing a female doctor. Some people may identify as ‘non-binary’ this means they
have no gender and are neither male or female
be very discreet and allow privacy – e.g. in a changing room
learn
about festivals and customs for other cultures – so that they understand the
main points and can hold an informed conversation with the customer
be polite, courteous and friendly at all times
speak
clearly and slowly, avoiding local sayings – especially if English is not the
customer’s first language
repeat
very clearly if requested – maybe using different words, gestures or a
diagram to help the customer understand something
stay calm when they are not sure about how to handle the situation
If an organisation deals with customers from the same cultures all of the time, staff
with a customer service role will soon learn about the details of the cultures. This
will enable them to relax and engage with
customers on a wide variety of subjects.
If staff find that they do not understand the
cultural differences and do not know how to
act, they should just stay calm and remain
polite and courteous. They should not make
assumptions about the customer’s needs and
expectations, but politely ask the customer
about what they can do to help.
The main objective is to treat every customer,
colleague and work contact as an individual,
with respect and patience, whatever their
background or culture.
Workbook 1
37
Section 1: Principles of customer service and delivery
Knowledge Activity 8: Imagine you are a customer going to an employment
agency in the high street to register for work. You are a qualified IT specialist
and you are a wheelchair user.
What practical assistance do you think you may need at the agency?
How do you expect the staff to treat you?
Use and storage of customer information
Please read the following as it will help you to answer question 12.
Many organisations hold confidential and personal data about their customers. The
information is used for a variety of reasons, including:
as a formal record of the transaction and its details – e.g. legal documents
held by a solicitor; health records held by a hospital; tax and financial records kept
by an accountant or tax office
for sales information – e.g. a supermarket loyalty card to track customers’
spending patterns
as a database for future sales – e.g. for a company to be able to send emails
about new products to customers who have
given permission
Data can be held on paper or electronically, and
organisations must follow strict guidelines about
how personal data is processed. It needs to be
kept securely, used correctly and the sharing of
information must be restricted and controlled.
When the data is no longer needed, it needs
to be disposed of securely – e.g. confidential
and secure shredding by a registered waste
management company.
38
© LCG 2018
Section 1: Principles of customer service and delivery
The General Data Protection Regulation (GDPR)
The GDPR deals with the security of confidential personal information that is held
by an organisation. When dealing with personal data, organisations need to make
sure that their data handling procedures comply with this regulation and protect the
individual’s rights.
Personal data can include, for example:
financial details – e.g. bank account, credit referencing or credit card details
full names, addresses and dates of birth
CCTV footage and voice recordings
medical, pay and tax records
details of family, lifestyle or social circumstances
biometric data – e.g. fingerprints, eye scans
The GDPR is a European Union (EU) regulation and covers the countries who
are in the EU. The Data Protection Act 2018 (DPA) is the UK’s national law that
complements the GDPR and incorporates it into UK law. The DPA ensures that GDPR
standards will continue to apply to the UK and adds some further technical details
that only apply to the UK.
Principles of the GDPR
There are very strict guidelines about how personal information can be accessed,
used and stored, and this information cannot be given to anyone who just asks for it.
The GPDR states that personal data needs to be:
processed lawfully, fairly and in a transparent manner in relation to individuals
collected for specified, explicit and legitimate purposes
adequate, relevant and limited to what is necessary
accurate and up to date
kept in a form that permits identification of individuals for no longer than is
necessary
processed in a manner that ensures appropriate security of personal data
Workbook 1
39
Section 1: Principles of customer service and delivery
The lawful basis for keeping and using records
Under the GDPR, organisations need to be specific about the lawful basis for keeping
and using personal data before processing it. There are six lawful bases and at least
one of these must apply when processing personal data:
1. Consent – the individual gives clear consent to process data for a specific purpose
– e.g. agreeing that a company can stay in touch and send newsletters and offers;
giving permission for data to be shared between an insurance company and the
company doing the repairs. The individual controls the data and can change their
mind about whether or not it can continue to be processed
2. Contract – processing data that is necessary for a contract with the individual
3. Legal obligation – processing is necessary to comply with the law
4. Vital interests – to protect someone’s life
5. Public task – to perform a task in the public interest or official functions
6. Legitimate interests – e.g. used by a charity for sending out unsolicited
fundraising letters and calls; used by a bank when it checks a credit agency when
considering a loan application; used by companies when recording telephone
calls for training and quality purposes. The organisation takes responsibility for
demonstrating that the data is in line with reasonable expectations and will not
have an unwarranted impact on people
An individual’s rights
One of the main changes in the GDPR is that individuals have new rights about how
their personal data is used and managed. Individuals have the following rights:
• right to be informed – e.g. about how data is processed
• right of access – e.g. the individual can ask for access to particular records
held about them; when information is requested, organisations need to provide
information without delay
• right to rectification – e.g. to correct, complete and update details held
• right to erasure – also known as ‘the right to be forgotten’, individuals can ask
for records to be deleted or removed where there is no compelling reason for its
continued processing
• right to restrict processing – individuals have a right to block or suppress
processing of their data
• right to data portability – individuals can move data from one authorised
organisation to another without hindrance – e.g. when changing energy suppliers
• right to object – individuals can object to how data is processed if it is
inappropriate, and the organisation needs to prove its legitimate interests to
continue
40
© LCG 2018
Section 1: Principles of customer service and delivery
• right not to be subjected to decisions based solely on automated
processing – e.g. a mortgage application rejected by a computer needs to be
checked by an authorised, competent advisor when making a lending decision
Organisations need to make sure that they have:
• active agreement from individuals – implied consent is no longer valid, so
organisations cannot use pre-ticked boxes or just assume that consent has been
given; parental permission is needed to process online data until the person is
13 years old
• a thorough record of consent – to trace the person’s consent on how their data
can be used
• procedures to allow the individual to withdraw consent easily and quickly – e.g.
an accessible email address or telephone number for removing consent
Managing the data held
Organisations usually have privacy and data protection policies and procedures about
collecting, retrieving, using, storing, archiving and deleting information. These will
make sure that the procedures comply with the GDPR, so it is important to follow
them, especially when handling personal or private information.
For example, a firm of independent mortgage advisors could have a data protection
and privacy policy that covers:
• collecting information – e.g. financial and personal details from customers
in line with their consent; using approved forms, questionnaires or meeting
notes; accessing credit reports from a credit reference agency in line with the
organisation’s legitimate interests
• retrieving information – e.g. using a traceable,
password-controlled computer in the office but not
a personal laptop
• using information – e.g. for specific purposes
only, in this case to process a mortgage
application but not for marketing;
• storing information – e.g. backing up files on
a hard drive that is locked away securely off
site; locking paper files away in a fire-resistant
filing cabinet; not allowing other customers or
unauthorised people to see records
Workbook 1
41
Section 1: Principles of customer service and delivery
• archiving information – e.g. off site in a fully protected storage facility that
specialises in sensitive data storage
• deleting information – e.g. shredding (preferably cross-shredding that chops up
the paper into small pieces so that strips of paper cannot be put back in order);
using a secure disposal agency; destroying backed-up information on hard drives,
flash drives or rewritable disks
Further information about the GDPR and data protection issues can be found on the
Information Commissioner’s Office (ICO) website: www.ico.org.uk
Effects on customer service delivery
Customer service delivery can be affected by procedures that organisations use to
comply with the GDPR. For example, they may use:
a long list of security questions when checking identity
security passes and keypads to gain access to areas when data is kept
passwords to gain access to sensitive data
forms to gain specific consent from customers about how their data can be used
This can cause delays and irritation, but most customers will be relieved and
reassured that the organisation is taking data-handling procedures seriously.
Staff need to be trained and monitored to make sure that they understand the
principles behind certain work routines when they are delivering customer service. For
example, they need to know why they must check a customer’s identity thoroughly
before releasing personal or financial details to them – to ensure that they comply
with the GDPR and give the correct information to the correct and authorised person.
Staff also need to be able to explain some of their procedures to customers, suppliers
and others who may want access to data. For example, if a customer complains about
being irritated about security questions, staff may need to explain why they need the
customer’s date of birth, postcode and first line of their address – again, to ensure that
only the authorised and correctly identified person is given the personal information.
42
© LCG 2018
Section 1: Principles of customer service and delivery
Knowledge Activity 9: Think of a time when you have been asked security
questions (maybe when contacting a bank or doctor’s surgery) and make a
few notes about:
The nature of the information being protected
The security questions you were asked
How long the process took
The staff member’s manner and tone of voice
How reassured you were about the security of your data
Customers’ wants, needs and expectations
Please read the following as it will help you to answer questions 13, 14, 15,
16, 17, 18a and 18b.
As we have already seen, customers have expectations and generally want:
efficient
and polite service – before, during and after buying or using a product
or service
good-quality
products and services – in line with the standards promised in
catalogues, brochures, websites, customer charters, company policies etc.
complaints
and problems to be dealt with properly – politely and quickly, with
an effective outcome
their
opinion to matter – when dealing with staff, when giving feedback or when
discussing a problem
Workbook 1
43
Section 1: Principles of customer service and delivery
Wants, needs and expectations
There can be subtle differences between customers’ wants, needs and expectations.
These are illustrated below with some comments about what a customer may want,
need and expect when buying a new vacuum cleaner for their home.
General description:
Customer
wants
Customer
needs
What the customer
sees as their idealistic
view of which type of
product or service will
meet their needs
What the customer
requires the product
or service to do –
looking at the benefits
and features that the
customer needs
Example of customer buying a new
vacuum cleaner:
A perfect, low-cost cleaning machine that
is lightweight and can clean their house
with very little effort
Individual features that are needed:
must
be able to deal with dog and
cat hair
must be lightweight
must have tools and a long hose
prefer a long electrical lead
prefer a quiet, low-wattage motor
must be under £250
prefer to buy from retail outlet
prefer a three-year warranty or guarantee
44
© LCG 2018
Section 1: Principles of customer service and delivery
What the customer
Customer
expectations expects the product or
service to do to meet
their needs – these
can be realistic or
unrealistic
The chosen vacuum cleaner should:
do everything that was promised
be reliable
be easily available, preferably in stock to
take away that day
come with good customer service and
guarantees
Staff should:
be polite, friendly and knowledgeable
be able to answer queries
make the transaction easy and
straightforward
make the customer feel valued and
respected
The retail outlet should:
be easy to get to, with free parking
be clean, tidy, well-lit and well-ventilated
be well laid out with logical sections
have enough knowledgeable staff on duty
have plenty of stock and choice
Even in this simple example we can see differences between wants, needs and
expectations. A customer’s wants can be very general and idealistic, and their wants
do not necessarily give enough information about their needs. Their needs are the
focus of the negotiations and transaction. If the needs cannot be satisfied, the
expectations cannot be met.
By looking at their needs in detail, it is possible to match the service offer and meet or
exceed their expectations. Each customer will have a ‘wish list’ of features and benefits
that they need from the product or service – some of these features will be ‘must
haves’ and others will be ‘prefer or would like to have’ features that are optional.
Effective customer service skills can result in a match by, for example:
asking
relevant questions to assess needs accurately – especially if the customer is
not sure about what they want or need initially
using good listening and questioning skills to encourage useful answers
clearly explaining the features and benefits of relevant products and services
Workbook 1
45
Section 1: Principles of customer service and delivery
dealing with objections with respect and an open mind
offering and suggesting alternatives and compromises
remaining focused on the customer’s needs
Identifying customers’ needs and expectations
Organisations will constantly review their operation to make sure that they are doing
their best to meet the needs and expectations of their customers. This happens
in all sectors – e.g. companies in the retail business; government departments,
NHS or councils offering services to each other or the public; or charities providing
counselling. They will all work to identify their customers’ needs and expectations in
several ways which may include:
Using good questioning and listening techniques
Open questions can help to ‘paint a picture’ of what the customer needs and expects.
Open questions cannot be answered with a ‘yes’ or ‘no’. For example: ‘Tell me what
you need the machine to do’; ‘How do you feel about the extra functions?’; ‘What are
your top three priorities?’; ‘How do you intend to use it?’
It is important to listen to people carefully, and to understand what they are saying.
By using ‘active listening skills’, we can show that the other person’s issues are
understood and being taken seriously. This helps to build trust and is an important
element of successful communication.
Active listening skills include:
using eye contact
nodding the head in agreement
actively focusing on what is being said
using
open body language to show that we
are receptive to what is being said
taking notes if the matter is complicated
repeating
back key information in a
summary of what has been said
46
© LCG 2018
Section 1: Principles of customer service and delivery
In a contract or order
This is the clearest way to identify needs and expectations. Contracts between
organisations, individuals, businesses or groups will state very clearly what is expected
from both parties. For example, a contract between an aircraft manufacturer and an
airline company will have many details about the costs and standards of equipment
that the airline expects; a contract between a customer and a sofa retailer will
show details about the quality, price, product details and delivery times that can be
expected; an order in a restaurant will state details of the food and drink expected,
including how it should be prepared (such as rare, medium or well done for a steak).
Collecting and using feedback
Feedback can be requested or it may be left voluntarily by the customer. It is
incredibly useful when identifying customers’ needs and expectations. For example,
in a restaurant, staff will often ask if everything has been satisfactory; retailers will
often ask customers to complete a short survey on a form or online; people will leave
honest feedback about an organisation on a forum, website or social media site.
Looking at sales or usage figures
Organisations will study figures to look for successes and failures to identify their
customers’ needs and expectations. For example, commercial organisations will
look to see what is selling well; doctors’ surgeries may look at waiting times for
appointments for their patients; a supermarket will use its loyalty card system to see
the shopping patterns of their customers; a college will look at attendance records for
courses to indicate the quality, popularity and suitability of classes offered.
Giving details about different products or services
By giving detailed information about its products and services, an organisation can
identify the needs and expectations of the customers who go ahead and buy/use
them. For example, the hospitality industry often uses systems to show the quality of
its amenities. This could be bronze or 1-star for basic accommodation, up to platinum
or 5-star for luxury hotels and apartments. The grading will reflect and help to identify
the customers’ expectations for that level.
Workbook 1
47
Section 1: Principles of customer service and delivery
Monitoring complaints
Although complaints are often thought of as negative, they are a useful source of
information about what customers need and expect.
In meetings
Customers can openly state and discuss their needs and expectations in meetings.
For example, a meeting between the customer, their interior designer, builder and
project manager can reveal exactly what is needed and expected. Any differences
and problems can be discussed and, hopefully, avoided with amendments to designs,
schedules and plans.
Arranging focus groups and market research
Many organisations run surveys, focus groups or market research exercises to analyse
or test a product or service. Market research varies from taste-testing and secret
shoppers to surveys on the telephone, online, or face-to-face in the high street or
door-to-door. The organisation can ask for very detailed feedback from the customer
about their needs, expectations and opinions.
Knowledge Activity 10: Think of a time when you have been asked several
questions about your needs and expectations before making a purchase or
choosing a service – e.g. buying a computer, mobile device or vehicle, or signing
up for a new course. Make a few notes about:
The product or service you were buying or signing up for
Your wants and needs at the beginning of the process
How well your expectations were met
How queries and problems were dealt with
48
© LCG 2018
Section 1: Principles of customer service and delivery
Managing customers’ expectations
Having identified customers’ needs and expectations, it is important for an
organisation to do its best to manage the expectations of its previous, current and
potential customers. Where possible and realistic, an organisation will strive to meet
or exceed customers’ expectations with its service offer and delivery of high-quality
products, services and customer service.
However, expectations cannot always be met. Some expectations are unrealistic
– e.g. the customer might expect a delivery time that is impossible to achieve.
Sometimes there are problems that mean that expectations cannot be met – e.g. bad
weather could delay production or delivery of an item. Sometimes there are external
forces that force a change – e.g. a change in legislation about how a product must
be made to comply with new laws. Such situations also need to be managed to make
sure that the customers understand what is going on and what is being done to help
them complete their transaction.
By making sure that previous, current and potential customers are fully informed
about the service offer, and any significant changes, the organisation can benefit
from, for example:
repeat business – from establishing and maintaining customer loyalty
increased sales – increasing the chances of the organisation doing well and
surviving difficult market conditions
a good reputation – from delivering consistently high standards of products,
services and customer services
competitive advantage – standing out from competitors by satisfying and
exceeding customers’ needs, requirements and expectations
reduced
complaints and problems – from listening to customers, dealing with
issues effectively and amending the service offer when appropriate
The process of managing expectations does not mean that all expectations have
to be met, especially if they are unrealistic or unreasonable. It is important to take
into account the organisation’s needs and expectations during the process as well.
The policies and procedures set out by managers need to be considered carefully
when managing customers’ expectations, to make sure that there is continuity and
sustainability of the service offer.
Workbook 1
49
Section 1: Principles of customer service and delivery
Managing customers’ expectations broadly means:
respecting each customer’s individual needs and expectations
liaising
with each customer to match their expectations with the right service offer
for them
suggesting or offering alternatives and compromises when needed
keeping each customer informed at all stages
keeping
the organisation informed about any issues, so that changes can be
discussed and implemented if necessary
If the service offer has been researched, developed and delivered well, customers’
needs and expectations will usually be met without too many changes. The service
offer will be flexible enough to cope with demands. If, however, customer service staff
keep coming across shortfalls and problems that prevent the service offer satisfying
customers’ demands, the line managers need to know so that they can change and
develop the service offer.
Behaviour that meets customers’ expectations
The focus of customer service is on sales and after-sales service. Organisations look
after their customers by providing good products and services, and by training and
supporting their customer service staff to give good service.
The attitude and appearance of staff members are extremely important when meeting
and exceeding customers’ expectations, and staff need excellent interpersonal and
communication skills. These skills and behaviours include, for example:
strong speaking, listening and writing skills – e.g. confident and clear
telephone manner
good body language – e.g. with open posture and good eye contact
good problem-solving and sales skills – e.g. for dealing with queries or finding
products and services that meet customers’ needs
the
ability to liaise with a diverse range of people – e.g. people of all ages and
cultures in a family restaurant
excellent
grooming standards – e.g. neat and tidy clothes that are appropriate
for the customer and the venue
good
teamwork skills – e.g. the ability to help colleagues and solve issues as
a team
good level of IT skills – e.g. to be able to find information for customers or check
on delivery times
50
© LCG 2018
Section 1: Principles of customer service and delivery
Customer service staff need to communicate with people all of the time, so they need
to be able to speak confidently and politely with everyone. Good communication skills
are important so that the staff members can, for example:
treat everyone as an individual
use
the appropriate method and tone of communication for each person
and situation
make
sure that the information has been received and understood correctly
by everyone
build
a good and useful relationship with each customer, supplier, contractor
or colleague
minimise problems and misunderstandings
leave a good impression of themselves and their organisation
Good customer service skills and behaviours are needed during every stage of each
transaction to meet and exceed the customers’ expectations. For example:
Before:
giving
information about the products and services on
the phone, by email or face-to-face
checking
that the supply of the products and services
can meet the demand from the customers
making sure that quality is good
During:
being well groomed and correctly dressed
using good body language when face-to-face
listening to customers and making them feel welcome
providing what customers want, need and expect where possible
being well informed about the product or service so that all queries can be answered
explaining any delays or problems, then finding solutions
being polite, helpful and friendly
meeting agreed standards and following procedures
Workbook 1
51
Section 1: Principles of customer service and delivery
After:
following up on queries and problems as promised
leaving
the customers with a good impression, so that they are more likely to return
and recommend the organisation to others
asking
for feedback and using the information to develop and improve the products
and services on offer
dealing with complaints politely, quickly and effectively
informing
customers about new developments, products and services to keep up
with new trends and customers’ changing expectations
Knowledge Activity 11: Think about a time when an organisation was
unable to meet your expectations about a product or service.
How did you feel about their inability to provide what you wanted or needed?
How did the organisation’s staff deal with you?
Make a few notes about how the situation could have been handled differently.
52
© LCG 2018
Section 1: Principles of customer service and delivery
Putting customers at their ease
When working with customers, it is important to be able to put them at ease and
gain their trust. This applies during a brief interaction with a customer at a busy
supermarket checkout as well as an in-depth, ongoing relationship with a customer
that spans several years. Customers need to have faith in the person who is dealing
with them, and to trust that the staff member and organisation will provide what they
need and expect.
Staff members can put customers at ease by building a rapport to reassure them
about their commitment and ability to deal with all aspects of the transaction. They
can do this by, for example:
being friendly and approachable
using active listening skills
asking questions and engaging with the customer
using open body language and good eye contact
showing empathy and understanding
being
patient and responding to different communication needs – e.g. if
someone is hard of hearing or if English is not their first language
Customers want and need to be able to trust an organisation and the people who
work for it. They need to have confidence in the people and procedures so that they
feel comfortable about investing their time and money in a product or service.
Staff can gain the trust of their customers in several ways. They need to, for example:
remain impartial – e.g. giving objective advice and information rather than
personal opinions
open and honest about the limits of their knowledge and authority – e.g.
be
only making decisions that are within their limits
ask
for help and support from colleagues and others when necessary – e.g.
referring a customer to a manager for certain queries or asking a more experienced
colleague for advice
use
active listening skills – e.g. making notes when a query is complicated
or serious
avoid making misleading comments – e.g. not giving incorrect or unclear advice
avoid
making promises that cannot be met – e.g. promising a solution to a
problem that cannot be achieved and is outside the staff member’s limit of authority
Workbook 1
53
Section 1: Principles of customer service and delivery
When expectations cannot be met for any reason, staff members need to diffuse and
manage the situation. This can help to stop the problem escalating into a complaint
and major issue. Techniques can include, for example:
apologising to the customer
explaining the problem
outlining possible solutions, compromises and alternatives
keeping the customer informed
apologising once again, reassuring and thanking the customer for their patience
Knowledge Activity 12: Imagine that you are discussing the technical
details of a new mobile device with a sales assistant in a shop. Make a
few notes about how you would feel if:
They obviously do not understand the features but keep talking anyway.
They know the product range very well and can discuss all aspects and
options with you.
They offer you a special offer price then come back and say that the offer
price finished last week.
They know 95% of the products’ features and just check with their colleague
about a brand new addition to the range.
54
© LCG 2018
Section 1: Principles of customer service and delivery
Follow-up actions and promises
During and after a transaction, follow-up actions may be required. Staff members may
need to, for example:
find
out more information about features – e.g. to see if optional extras
are available
ask
the manufacturer for clarification – e.g. about technical aspects not
covered in the brochure
arrange delivery times
arrange installation of a new product – e.g. a washing machine
check accessibility or suitability – e.g. to find out if a hotel is wheelchair-friendly
chase up products or services that have not been delivered
chase
up a third party for a response – e.g. an estate agent chases a landlord
for a response about a new tenant’s requests
obtain authority from a line manager – e.g. to approve a refund
In all cases, it is important to follow up actions and keep promises. Staff members
need to:
make
sure that the products and services are delivered on time and according to
the customer’s expectations
back when agreed – even if it is just to even if it is just to give an update if a
call
full answer is not possible give an update if a full answer is not possible
resolve
problems and complaints in line with the organisation’s policies and
procedures
ask managers and colleagues for assistance if necessary
Following up actions and keeping promises are important aspects of customer
service. Customers that are left waiting for information, actions or responses have
high expectations that a resolution will be delivered. Failing to follow up and keep
promises leave a bad impression and can negatively affect the customer relationship
– sometimes forever.
Workbook 1
55
Section 1: Principles of customer service and delivery
Negative effects could include, for example:
the customer feeling that they do not matter and that their views do not count
lack of trust in the staff member and their organisation
a bad reputation for unreliability
customers going elsewhere and refusing to recommend the organisation
time-consuming and expensive legal action if the problem escalates
Even if it is bad news, the customer needs to know so that they can make other
choices and leave with a good impression of the organisation.
When delivering customer service, following up and keeping promises can have
several positive benefits, for example:
customer satisfaction can be improved and maintained
goodwill is promoted
customer loyalty is encouraged and improved
the organisation gains a positive reputation for customer service
increased business from positive recommendations and feedback
lower chances of complaints and possible compensation costs
If something needs to be chased more than once, staff members need to have a
system that reminds them to follow up an enquiry. This might be a notebook, diary or
electronic reminder, for example.
56
© LCG 2018
Section 1: Principles of customer service and delivery
Customer needs and satisfaction
Please read the following as it will help you to answer questions 19 and 20.
As we have already seen, there are differences between customers’ wants, needs
and expectations. We also need to consider the relationship between their needs and
expectations and customer satisfaction.
A customer’s needs are based on their specific requirements of the products or
services – e.g. the features that the vacuum cleaner must/should have to be able to
do the tasks in their home.
A customer’s expectations are what the customer reasonably expects to happen
when they make a purchase and perform the transaction – e.g. for the vacuum cleaner
to be reliable and work as promised, and for the customer service to be excellent.
Customer satisfaction is a measurement of how well the products of services provided
meet or exceed customers’ expectations. It is an abstract concept and can be very
subjective, with customers having their own individual views, standards and concerns.
Organisations use several ways to try to quantify their customers’ reactions and levels
of satisfaction and they can measure several things, such as, for example:
the level of sales
the amount of repeat business that is generated
the level of complaints, negative feedback and product returns
comments and scores in satisfaction surveys
performance indicators (KPIs) that assess the performance and key features of
key
the product or service
Reviews on websites and forums are often used as an indication of customer
satisfaction – e.g. comments and star ratings on websites that deal with restaurants,
hotels and travel. Although the reviews are usually left by legitimate customers who
leave impartial and independent comments and ratings, a significant number can
be false. Fake reviews can influence potential customers who want extra information
before they decide to buy or reject a product or service, so care needs to be taken
when using these to measure customer satisfaction. Surveys can also be inaccurate,
and they need to be thorough and well-run to give an accurate picture.
If an organisation can identify customers’ needs, then meet or exceed their
expectations, the level of customer satisfaction should be high. This helps them to build
relationships with customers and develop repeat business and recommendations.
Workbook 1
57
Section 1: Principles of customer service and delivery
Treating customers as individuals
Earlier in this workbook, we looked at the effect of the Equality Act 2010 on customer
service delivery. The Act protects people from discrimination due to their protected
characteristics:
age
disability or impairment
gender
gender reassignment
marriage or civil partnership
pregnancy or maternity (including breastfeeding)
race
religion or beliefs
sexual orientation
These cover the main sources of potential discrimination, but customers will also have
other characteristics, tastes, standards and life choices that make them individual.
Although not specifically covered in law, customer service staff also need to be
tolerant, respectful and accepting of other differences.
For example, customers may also have individual requirements relating to:
where they live – e.g. influencing where they choose to use a service
their transport arrangements – e.g. having no car and being unable to get to an
appointment for a service
their general health – e.g. causing difficulty with mobility when planning how to
access products and services
their income – e.g. influencing their choices of products, financial arrangements
and payment terms
their
childcare and other family commitments – e.g. families wanting holidays
during the school breaks only
who
lives in their household – e.g. wanting products that are suitable for a
large family
whether
they own or rent their home – e.g. influencing permanent fixtures such
as replacement windows
58
© LCG 2018
Section 1: Principles of customer service and delivery
personal tastes, likes and dislikes – e.g. preferring certain colours and styles
of products
how
they dress and present themselves – e.g. expressing individual choices
about clothes, jewellery, tattoos or piercings
The main objective is to treat everyone as an individual, with respect and patience,
whatever their background or culture, and whatever their differences.
We can never assume facts about our customers until we get to know them, and it
is vital to remain open-minded when finding out about their needs and expectations.
Just because customers are dressed in scruffy clothes and turn up in a muddy car, it
does not mean that they cannot want, need or afford the full range of services and
products on offer. If we work in a building supplies company or a garden centre, we
would expect people to turn up in work clothes if they are working on a project.
Similarly, we cannot assume that a well-dressed customer who wears expensive
jewellery can afford everything on offer. Their circumstances might have changed
since they bought the high-end items, and we must not make assumptions about
their income and spending patterns.
By treating customers as individuals, customer service can be enhanced and more
effective. Benefits can include, for example:
more accurate identification of customers’ needs and expectations
increased customer satisfaction
improved customer relationships and loyalty
compliance with legislation
a good reputation for the organisation
Workbook 1
59
Section 1: Principles of customer service and delivery
Knowledge Activity 13: Imagine that you are dressed in scruffy clothes
because you have been helping to clear out and clean a friend’s house.
You go to the local shop for some food and the shop staff look at you and
judge you by your appearance. They are rude and disrespectful, making
unpleasant jokes to each other about how you look. They take a long time
to serve you and are not helpful when you need help to find something.
How do you feel about their reaction to you?
How do you feel about going to that shop again for something else?
If you were their manager, how would you advise those staff members to
treat all customers, and why?
Features and benefits of products and services
Please read the following as it will help you to answer question 21.
Organisations can be in different sectors:
the commercial sector – e.g. manufacturers, businesses, supermarkets, hotels,
landlords, financial services providers, or transport providers
the public sector providing public services – e.g. the NHS, libraries, schools
and colleges, local councils, armed forces, police, fire or ambulance service
the third sector – e.g. voluntary and not-for-profit groups, such as charities
The products and services offered by each organisation will have a range of features
and benefits, and these will vary according to the type of organisation.
Features are the distinguishing characteristics of a particular product or service. The
features will deliver the benefits to the customer.
Benefits are the positive effects enjoyed by the customer if they buy or use the
product or service. The benefits meet the customer’s needs.
60
© LCG 2018
Section 1: Principles of customer service and delivery
Features and benefits can include, for example:
Features of the product or service
Charging consistently low prices – e.g. large
supermarkets offering deals and value for money;
budget airlines and train companies offering some
tickets very cheaply.
Offering a wide range of goods and services
– e.g. an online art materials supplier offering
a wide range of products from many different
manufacturers; insurance companies offering
access to products from the majority of insurance
providers.
Fast service and response times – e.g. in fastfood outlets; promised by broadband suppliers;
telephone call-back service from doctors in a
GP surgery; ambulance, police and fire service
emergency response.
Personal service and aftercare – e.g. from a
hospital or healthcare professional.
Fast and reliable delivery of goods – e.g. courier
companies and Royal Mail.
Benefits for the customer
Lower costs
Able to budget and plan
expenditure
More choice
Greater chance of being able to
satisfy needs and expectations
Saving time
Convenience
Actions can potentially save
lives and reduce suffering
A feeling of well-being
Feeling valued and safe
Greater chance of being able to
satisfy needs and expectations
Convenience
Saving time
Able to plan the rest of the day
Excellent data security – e.g. from banks;
from online payment systems; for personal
health records.
Able to rely on times that may
have a critical effect on a
business or personal task
Personal and financial security
and safety
Trust and good working
relationship
Peace of mind
Good guarantees and warranties – e.g.
department stores with a good reputation for
Confidence that help will be
‘no quibble’ guarantees; car manufacturers offering available if needed
free or low-cost extended warranties.
Less likely to lose money if
something goes wrong
Workbook 1
61
Section 1: Principles of customer service and delivery
Commercial sector
Organisations in the commercial sector offer goods and services for which they are
paid, and the features and benefits need to be cost-effective. Profit is important for
their survival and development, so it is crucial for them to retain old customers and
attract new customers. Their commitment to customers is based on sales and aftersales service, for example:
giving efficient and polite service – before, during and after buying or using a
product or service
supplying
good-quality products and services – in line with the standards
promised in catalogues, brochures, websites, customer charters, company
policies etc.
dealing with complaints and problems properly – politely and quickly, with an
effective outcome
treating
their customers with respect and taking their opinions and needs
seriously – at all stages of the transaction, and when dealing with feedback,
complaints or problems
Giving good customer service before, during and after transactions is based on, for
example:
before – by analysing what the customers want, developing products and services
to suit the customers, training staff to deliver these
during – well-informed staff delivering good-quality products and services in a way
that suits the customers
after – dealing with complaints, collecting and using feedback, developing the
products and services to keep up with the changes in standards and expectations
Public sector
In the public sector, organisations offer services to the public on a not-for-profit basis.
They are funded by taxes, national insurance contributions, VAT, council tax and fees
that are charged for some services. This funding is decided and controlled by central
government, local councils and government agencies.
The features and benefits offered to customers are based on the quality and level
of service that is provided. Although profits are not made, the organisations usually
have budgets that they must manage and balance. They aim to satisfy customer
expectations by planning the best use of the resources, and by training and
supporting their customer service staff.
62
© LCG 2018
Section 1: Principles of customer service and delivery
Features and benefits for customers can be based on many things, for example:
waiting times – e.g. for healthcare, emergency services or for a response from
a government department
value for money – e.g. to provide the widest range of services they can for the
customers’ council tax contributions
excellence
of service and delivery – e.g. promising to deliver education or
housing of the highest standard possible for the budget
fairness – e.g. committing to give all customers equal opportunity of access
to services
Third sector
Organisations in the third sector offer products and services. Sometimes they are
sold, such as items in a charity shop, and sometimes they are donated for free, such
as counselling services. They have to balance their operation between raising funds
and giving services and support to customers.
The features and benefits for customers can also be split. The customers who use the
services, such as free counselling from a charity, will benefit from the organisation’s
commitment to funding and providing good-quality care and support services. The
customers in the charity’s shops, on the other hand, will benefit from the same
commitment as the commercial sector, with the added bonus of knowing that they
and the volunteers are involved in supporting a wider cause.
Knowledge Activity 14: Find a car insurance company’s website. Make a
few notes about the main features and benefits of their service offers.
Features:
Benefits:
Workbook 1
63
Section 1: Principles of customer service and delivery
Balancing promises to customers with organisational needs
Please read the following as it will help you to answer question 22.
There will always be a balance between the customers’ needs and expectations, and
the products and services that an organisation offers. The balance is not static as
there are so many variables. Every customer is different, and products and services
can vary.
When organisations produce their service offer and make promises to customers,
they need to make sure that their own needs are also met. An organisation has many
functions and requirements, and it needs to achieve its own objectives to survive and
thrive. Organisational needs include, for example:
having a robust and sustainable supply chain – e.g. a supermarket making sure
that its suppliers produce and deliver high-quality goods at the right time
matching the supply of goods and services with the demands of its
customers – e.g. a supermarket making sure that they order the right amount of
Christmas goods, at the right time, to cope with customers’ needs
managing human and physical resources – e.g. a supermarket having the right
number of staff on duty and convenient opening times of its stores
managing budgets – e.g. making sure that products and services are financially
viable and able to make a profit
developing products and services – e.g. looking for new trends and
technological improvements that can become part of the service offer
compliance with legislation – e.g. satisfying health and safety rules as well as
consumer-based legislation
following its own policies and procedures – e.g. a supermarket following ethical
policies about how it treats its suppliers
maintaining a good reputation for quality and reliability
Organisations need to balance their needs with what they offer and promise to
customers. For example, if a supermarket promises its customers very cheap milk,
it has to consider whether it can:
make a profit from the low price
get hold of enough milk to satisfy customers’ demands
safely
store and display all of the milk at the right temperature in the warehouses
and stores
abide by its own ethical policy about how to treat its suppliers
maintain a good reputation if promises to customers and suppliers cannot be met
64
© LCG 2018
Section 1: Principles of customer service and delivery
Organisations constantly review all aspects of their operations to balance their needs
against their customer offer. They make changes and adjustments to ensure that their
customer offer is realistic, attractive, achievable and sustainable.
There are times when staff working in the customer service role need to tell
customers that their organisation cannot meet expectations. This can be due to
delays or problems, and it can happen because the organisation simply does not offer
that particular product or service.
However, the main rule is that staff should only promise what can be delivered. False
promises lead to disappointment for the customer or serious consequences for the
organisation.
Knowledge Activity 15: Imagine you are working in a toy shop in December.
Having checked with your manager, you have promised several customers that
the shop will have a delivery of the new ‘must-have’ toy today, but the company
has been unable to get hold of the stock after all. Head office cannot say when
the toys will be delivered to your shop, if at all.
How do you feel having to explain the problem to several angry and
disappointed customers?
How do you think the customers will feel about you, your manager and the
toy shop company?
Workbook 1
65
Section 1: Principles of customer service and delivery
Escalating problems
Please read the following as it will help you to answer question 23.
When delivering customer service and working to balance the customers’ expectations
with the organisation’s needs, it is important to know when to ask for help and
escalate a problem up to the next level in the line management structure.
Everyone needs to work within their limits of authority. This helps to make sure that
people do not promise or do things that could cause problems for the customer, staff
member, team, organisation or others. Even if the intentions are good, inappropriate
promises or actions could be illegal, impossible to achieve, unfair, too expensive etc.
The organisation’s procedures will show when staff need to escalate a problem.
For example:
when a decision is needed that is outside their limits of authority
when a customer requests something that is outside the limits of their responsibility
when dealing with complaints or problems that are outside the limits of authority
when
they do not have enough knowledge, experience or skill to be able to deal
with something on their own
The procedures will also show to whom the staff members should escalate their
problems. For example:
their line manager, team leader or supervisor
a more experienced team member
someone from a different team who understands the issue
a staff helpline or help desk
To provide consistent standards of products, services and customer service, the
organisation needs all of its staff members to work to the same goals. The operating
procedures show the details about how to achieve these goals, and what to do when
there is a problem.
66
© LCG 2018
Section 1: Principles of customer service and delivery
Supervisors and managers need to know if there are problems so that they can take
steps to put things right and improve the service offer for everyone. If staff members
do not escalate their problems, queries, issues, concerns or suggestions, the
management team will not have the information they need to:
understand new problems experienced during customer service delivery
offer consistent standards of products and services
keep customer complaints to a minimum
support their staff and identify training and career development needs
comply with regulations and legislation
improve and maintain standards for the organisation as a whole
Knowledge Activity 16: Imagine that you are dealing with a customer who is
complaining about the service they have received in the restaurant where you
work. You have followed your employer’s procedures but the customer is not
satisfied. You are not authorised to offer anything else. Explain why it is important
to escalate the problem to your line manager.
Workbook 1
67
Section 1: Principles of customer service and delivery
Measuring effectiveness
Please read the following as it will help you to answer question 24.
As we have seen, measuring customer satisfaction can be difficult, especially as many
aspects of customer service can be abstract, personal and subjective. However, it is
important to evaluate customer satisfaction to identify areas that need to be improved
and developed.
It is also important to measure the effectiveness of the organisation’s effectiveness
in the delivery of customer service. When evaluating effectiveness, an organisation
measures effectiveness by analysing:
sales figures – e.g. to see if the number and value of transactions have increased
or decreased
levels
of repeat business and retention of customers – e.g. supermarket
loyalty cards track purchase patterns; customer records for leisure centres or banks
show how often services are used; Internet-based purchases can be tracked
electronically to see spending patterns
website and social media activity – e.g. hits on a website that are converted to
sales; likes on Facebook or hits on YouTube to show interest in products
media comments – e.g. comments about the organisation sent by customers;
news reports and investigations about the organisation’s customer service
analysing
competitors’ activities and sales – e.g. to see where the customers
have gone, or might go, and why
complaints levels – e.g. tracking the volume and types of complaints, and how
they were dealt with; monitoring changes since improvements introduced; analysing
different levels following staff changes or introduction of new products or services
feedback
during the appraisal process – e.g. when discussing career
development with team members formally or informally
Individuals can measure their own effectiveness using similar methods, for example:
listening
to feedback from colleagues – e.g. from praise, advice or constructive
criticism during a shift
gaining
feedback from their line manager – e.g. formally during an appraisal
session or informally at the end of a shift
reviewing
sales targets and analysing results – e.g. measuring sales made over
a month and identifying reasons for changes in success rates
68
© LCG 2018
Section 1: Principles of customer service and delivery
reading
customer complaints – e.g. reading feedback cards from their customers
or review comments online
listening
to customer feedback – e.g. positive and negative comments given
during customer service delivery
Knowledge Activity 17: Imagine that you are preparing to have an appraisal
interview with your line manager about your effectiveness in customer service
delivery. Make a few notes about:
Your strengths and successes
Areas where you could improve
Examples of how you identified your strengths and weaknesses – e.g.
feedback from customers and colleagues
How customer service information can be used
Please read the following as it will help you to answer questions 25, 26 and 27.
Many organisations hold confidential and personal data about their customers. The
information is used for a variety of reasons, including:
as a formal record of the transaction and its details – e.g. legal documents
held by a solicitor; health records held by a hospital; tax and financial records kept
by an accountant or tax office
for sales information – e.g. a supermarket loyalty card to track customers’
spending patterns as a database
for future sales – e.g. for a company to be able to send emails about new products
and services to customers who have given consent
Workbook 1
69
Section 1: Principles of customer service and delivery
By having detailed information about their customers, organisations can target
their information or marketing at the people who are most likely to use or buy
their products or services. There are some circumstances under the GDPR in
which organisations can contact people to pursue legitimate interests - e.g. a
charity sending out generic fund-raising letters. However, consent is required from
the customer for an organisation to stay in touch or share their data with other
organisations.
Organisations can also give their customers long-term care and service by holding
records for an appropriate time. A law firm, for instance, will keep copies of
customers’ wills indefinitely, but a retailer will only keep purchase data for a short
time.
The data and information held and used by an organisation could include:
a customer’s personal details – e.g. full name, address and date of birth
their financial details – e.g. credit card numbers and security codes
a record of previous purchases and transactions
feedback forms from the customer
survey results
letters and emails received from the customer
notes or recordings of conversations with the customer
Personal information is protected by the GDPR and it can only be used by the
organisation where there is a lawful basis. Customers need to opt in to give their
consent about how their data can be used. It is no longer acceptable to have a preticked box to give consent, and organisations cannot just assume that consent has
been given.
Having gained the necessary consents, organisations may wish to use customer data
when, for example:
processing the service or product delivery and after-service
assisting
with marketing and promotions – e.g. offering products and services that
are related to the original transaction
developing
relationships with customers – e.g. contacting customers after their
purchases to make sure that everything is going well
improving customer service – e.g. using feedback data
carrying out market research – e.g. through customer profiling to see what their preferences are
70
© LCG 2018
Section 1: Principles of customer service and delivery
An effective system helps an organisation respond to its customers’ demands, gather
information and feedback, have regular interaction and build relationships.
The staff member’s responsibilities when using information
When dealing with confidential information about customers or organisations, staff
members need to bear in mind the limits of their responsibilities at all times. The
details will be in the organisation’s policies and procedures, and in the staff contract
of employment. These will be updated and reinforced during ongoing training.
Broadly speaking, an individual’s responsibilities will include:
following
the policies and procedures – e.g. when gaining consent, shredding
papers or answering questions about customers
keeping
all customer information private and confidential – e.g. when taking
personal details at a hotel check-in
not disclosing confidential information about the organisation
keeping
passwords, key codes and keys safe, and not letting unauthorised people
have access to them
not gossiping about customers or the organisation
answering questions unless authorised and briefed – e.g. questions from the
not
media about a food poisoning problem or a guest
leaving information around where unauthorised people can see it – e.g. leaving
not
the company’s bank statements on a desk that customers can see
In all cases, when the staff member in the customer service role has any doubts
about releasing information and the limits of their responsibility, they should ask their
line manager.
Workbook 1
71
Section 1: Principles of customer service and delivery
Knowledge Activity 18: Imagine that you work on reception for a company.
After a meeting at a conference centre, your colleague left their briefcase in
the back of a taxi. At the end of the working day, someone phones up and
says that they have found the briefcase. They ask for your colleague’s home
number so that they can arrange to return it.
How would you handle the conversation?
Would you give out your colleague’s home number?
Suggest a couple of solutions to the problem that you could offer.
Systems for managing customer service information
When handling customer service information, organisations will have systems in place
so that the data can be managed. For example, they might use:
computer databases – e.g. to keep a record of customers’ names, addresses and
preferences to use when doing a mailshot or email promotion to those who have
given permission
the
organisation’s own software – e.g. to track particular information and
spending patterns
specialist Customer Relationship Management (CRM) software
paper files and card indexes
secure
interactive websites – e.g. to track online orders, bookings and feedback
comments on a forum
cloud-based Internet storage and applications
72
© LCG 2018
Section 1: Principles of customer service and delivery
A well-designed and efficient management system is important so that:
information is easy to locate when it is needed
authorised people can access data easily
efficient service can be given
follow-up actions can be tracked effectively
information is secure and unauthorised people cannot gain access
it complies with legislation and regulations
Systems can be used to manage customer service information in several ways. For
example, a system can be used to:
target customers for marketing purposes – if permission is given
monitor
spending and buying habits – e.g. through tracking supermarket loyalty
card use
review
and analyse sales patterns – e.g. to see how a new product sells during its
first three months on the market
review
and analyse how services are being used – e.g. looking at attendance
records for a college
have all customer details to hand when processing a transaction
A CRM system can be integrated with other IT systems to bring different functions
together – e.g. sales, warehousing and ordering. This can produce more efficient
order-processing and financial administration.
Keeping information safe and secure
As we have seen, the GDPR deals with the security of information about customers
and staff that can be held by an organisation – e.g. bank account details, addresses,
personal data, patients’ medical records, CCTV footage.
Marketing emails, cookies and other electronic communications to potential or
existing customers are also covered by the Privacy and Electronic Communications
Regulations (PECR) that are updated from time to time. PECR run alongside the
GDPR and Data Protection Act 2018. Organisations need to comply with e-commerce
regulations.
Workbook 1
73
Section 1: Principles of customer service and delivery
Confidential information cannot be disclosed to just anyone. It must be stored safely
and must only be accessed by authorised people. This is important in all industries,
particularly for organisations that hold customers’ personal and financial details.
For example, staff working in the healthcare sector go to extraordinary lengths to
protect patient confidentiality. Files are kept locked away when not in use; computer
records are protected by complicated password procedures; staff who have access
are DBS (Disclosure and Barring Service – previously the Criminal Records Bureau)
checked; their contracts have very strict codes about keeping information secret.
This is common sense, as nobody wants their medical records to be made public or
to have staff gossiping about their personal details.
All information needs to be stored safely and securely, especially the confidential
details about individuals. There are several ways in which organisations keep customer
information secure and confidential, including:
Password protection – this is a normal activity when using computer systems.
Passwords can be set to allow different staff to access different parts of the system.
Keypad codes and till keys – these allow the correct people to access restricted
areas where sensitive information may be stored.
Locked storage – sensitive paper files can be locked away, with access restricted to
only those who are authorised.
Shredding documents – under strict guidelines, confidential papers will be shredded
properly, maybe by a specialist secure contractor.
Security questions – these will often be asked before a discussion can take place
about confidential information, e.g. to discuss banking or tax records.
Staff contracts – these usually include clauses on confidentiality about the
organisation and its products and services.
Staff with access to customers’ details need to know about the information security
procedures in their workplace. These should describe: what is considered confidential;
who is allowed to access what; what data is to be collected and how it is to be
handled; maybe how to detect and manage a breach of security.
74
© LCG 2018
Section 1: Principles of customer service and delivery
Knowledge Activity 19: Imagine that you work for a mobile telephone
supplier. You call your customer, Alex Thompson, on the mobile number on
the contract to discuss renewing or updating the contract. The woman that
answers says that she is Alex’s mother. She provides the correct name and
other details about Alex, and says that she is taking over the phone contract
and wants to set up a new direct debit with you.
How do you handle the call?
Are you allowed to discuss the financial details about Alex’s contract? Give
your reasons.
Can you just move Alex’s contract and direct debit into the mother’s name?
As expected, the GDPR prevents discussions about Alex’s contract and direct debit
with anyone. Alex has to go through the security questions first, and then give
full permission for any changes. Mum will probably have to have a new contract,
especially to change the name on the phone contract. Credit checks on Alex will not
count if the new contract is in the mother’s name.
Workbook 1
75
Section 1: Principles of customer service and delivery
Customer complaints process
Please read the following as it will help you to answer questions 28 and 29.
Customers may complain to an organisation or about an organisation. They can
complain directly to the organisation, for example:
by letter or email
using social media
on the telephone
face-to-face
Although these can be difficult to handle, the
organisation does have the opportunity to deal with
the complaints, and sort out the problems, if they
are made directly to them. They have the chance
to put things right and avoid future complaints.
Complaints can arise for a variety of reasons, including:
faulty goods or missing parts
poor-quality products or services
incorrect or incomplete delivery of items
bad customer service – e.g. from rude or unhelpful staff
the
service or product does not matching the description – not meeting the
customer’s expectations
delays and missed deadlines – maybe leading to fines and interest charges
lack of information – e.g. when transport is delayed
inefficient systems – e.g. call centres passing customers from one advisor to
another when they call for help; long queues that are badly managed
unfair treatment – e.g. for receiving a parking ticket when the signs were unclear
or absent
impact
on the environment – e.g. the location of wind turbines; noise from
neighbours or traffic; dealing with waste inefficiently
negative
consequences of someone’s actions – e.g. medical problems missed
during an examination that lead to serious health issues; someone slipping on a
wet floor in a hotel when the cleaner had forgotten to put out a warning sign
76
© LCG 2018
Section 1: Principles of customer service and delivery
An effective customer complaints process
Organisations usually have standards, procedures and processes for handling
and dealing with complaints. Some large organisations have a customer service
department and the staff there will deal with complaints. Others have special
complaints teams that focus purely on handling issues raised by customers. Smaller
organisations and businesses will rely on their staff and managers to handle
complaints themselves.
Whatever the size of the organisation, complaints need to be handled in a consistent
way throughout. Features of a complaints process could include standardised
processes about, for example:
who deals with complaints
what each staff member is allowed to say and agree
timescales for resolution
how to deal with each situation and which solutions can be offered
when to escalate the problem up the management line
what
happens if the organisation cannot agree a satisfactory outcome with the
customer – e.g. the customer’s rights under consumer legislation
customers’ statutory rights
Whoever deals with the complaints, the standard approach will be similar. For
example, the person dealing with the complaint will:
listen
to or read the details of the complaint – maybe making notes about
the details
apologise
to the customer – and show that they understand and sympathise with
the customer
explain
the background to the problem or issue – or offer to investigate if the
cause of the problem is not obvious
keep
the customer informed at all stages of the process – even if it takes
many weeks to resolve the problem
apologise
again, reassure and thank the customer for their patience and
custom
Workbook 1
77
Section 1: Principles of customer service and delivery
They may be instructed to use the HEAT method when applicable:
Hear – listening to the customer’s complaint properly
Empathise – showing that they understand the customer’s position, frustration etc.
Apologise – saying sorry is incredibly important
Take ownership – taking the problem seriously, seeing it through to a satisfactory
end, keeping the customer informed, passing on feedback to the organisation
Complaints need to be dealt with quickly and effectively to defuse the anxiety and
stop the complaint becoming more serious. It may be that staff need to diffuse the
situation before they pass on the complaint to a manager, the customer service team
or the complaints team. If they are the first point of contact with the complaining
customer, their role is vital to keep everything calm and polite, even if they cannot
solve the problem.
In all customer service situations, staff need to bear in mind any possible
communication problems. The customer may be nervous and a little aggressive due
to nerves about making the complaint. They may also have visual, speech, reading,
writing or hearing problems, or not have English as their first language. Staff need
to take these factors into account when responding to keep the anxiety levels as low
as possible.
Uses of a customer complaints process
Using a standardised customer complaints process can have several benefits for
customers, staff and the organisation. For example:
Customers will feel valued and confident about the organisation’s ability to take their
issues seriously and with respect. They will be able to see how the process will work
until a resolution is agreed. This can help to diffuse a situation and stop a complaint
becoming more serious as they can see how their feedback is being taken seriously.
The organisation can use the complaints process to identify areas of weakness. This
can lead to changes and improvements that benefit everyone. A well-run, transparent
process can also help limit the damage to the organisation’s reputation as the
customer can see that nothing is being hidden.
Staff members use the complaints process to deal with potentially awkward
situations, knowing that they are following agreed and established procedures. This
should give them confidence when faced with difficult and negative situations, and
enable them to deal with issues calmly and with authority.
78
© LCG 2018
Section 1: Principles of customer service and delivery
Knowledge Activity 20: Ask your employer (or an organisation that you
know well) for a copy of their complaints procedure or look up a company
online and find theirs. Make a few notes to outline their procedures for
handling complaints.
Relationship between customer service and a brand
Please read the following as it will help you to answer questions 30, 31, 32
and 33.
Branding is everywhere and we are used to seeing different brands on show. Our
supermarkets, fast-food restaurants and high-street shops, for example, all have their
own ways of telling us who they are – often without using words.
The importance of a brand to an organisation
Organisations work extremely hard to promote and protect their brands. They go
to great lengths to make sure that previous, current and potential customers can
recognise their brands, and understand what they offer.
Workbook 1
79
Section 1: Principles of customer service and delivery
A brand can be identified by, for example:
logos
– e.g. the McDonalds’ golden arches ‘M’, or different badges used by car
manufacturers
brand names on labels, packaging and signage
colours
on packaging and signage – e.g. orange for Sainsbury’s, green for Asda and
blue for Tesco
sponsorship
relationships – e.g. companies sponsoring the football leagues and
tournaments
trademarks or copyright
A brand is important to an organisation because the brand image reflects the image
of the organisation. It is a major part of an organisation’s identity. Our impression of
a brand goes a long way to establishing our expectations of the products and services
offered.
For example, when we see a sign for Burger King, we know that we can go into any of
their restaurants anywhere in the country and get the same product and service. The
same is true for chains of hotels, restaurants, shops and other businesses – we know
what to expect. Even if there are local differences, the core values of the service offer
are the same.
This is vital for an organisation because they know how to manage their customers’
needs and expectations, based on the brand promise that they make and deliver.
Having a brand enables an organisation to position itself in the market, promote and
protect itself. It does this by, for example:
establishing
legal protection of unique product features – e.g. registering a
brand name or logo so that competitors cannot use the same one
giving
customers a specific perception of the organisation – e.g. Rolls Royce
establishing itself as a supplier of prestige cars
establishing
its place in the marketplace – e.g.
designer clothes shops aiming at one part of the
market, low-cost clothing shops aiming at another
displaying
how it is different to competitors –
e.g. gaining a reputation for their brand being the
most reliable on the market
encouraging
customer loyalty – e.g. from
customers being pleased and proud to be identified
as supporters of their brand
80
© LCG 2018
Section 1: Principles of customer service and delivery
How a brand affects the service offer
How people perceive a brand can have a big influence on the service offer. If a brand is
seen as a prestige, high-end, expensive brand, the organisation will have to make sure
that its service offer supports this if it wishes to attract the same types of customer.
Similarly, if a brand appeals to families, the organisation needs to make sure that the
service offer is aimed at what families want.
Example A – a company that deals with designer watches
A company that makes high-end watches that sell for thousands of pounds each
will make sure that their brand is associated with successful businesses, highend goods, and expensive pastimes and interests. They will sponsor and support
events such as polo matches, aviation displays, skiing competitions or international
equestrian events as these are the sorts of events that their current and potential
customers attend. They will make sure that their brand is seen by the ‘right’ people
in the ‘right’ places.
The company will also run corporate events and offer bespoke, personal customer
service to look after their customers and encourage them to think of themselves as
part of an exclusive club.
The products will be of the highest quality so that the brand has and maintains a
reputation for excellence.
The advertising and sales process will be discreet to maintain the prestige and
excellent image of the brand.
The aftercare service, warranties, guarantees and maintenance will also be
excellent, so that customers know that they are valued and will be looked after.
Workbook 1
81
Section 1: Principles of customer service and delivery
Example B – a company that runs a chain of family pubs/restaurants
A company that owns and runs a chain of hundreds of family pubs/restaurants will
target their brand at families to attract previous, current and potential customers.
The selling point of their brand is that people will get the same great prices,
quality and choice in every restaurant. This gives their customers reassurance and
confidence that they know what to expect from the brand, even if they go to one of
their restaurants in a different town than usual.
The company will place their outlets in similar locations in each town – near to
areas where young families live, but on the edge of a development so that they
can offer plenty of free parking. The buildings will usually have standard facilities,
furniture, layout, music, art and lighting, so that the atmosphere is similar in each
restaurant.
The products on the menus will be the same in every restaurant throughout the
country, using the same ingredients, preparation and presentation, so that the
food choices are always the same.
The staff will be trained in the same way to deliver the same level of customer
service in each outlet. They will have the same uniforms, name badges and
minimum grooming standards.
Aftercare service, complaints processes and ways of collecting feedback will also
be standardised throughout the chain.
As we can see from these two examples, the service offer needs to support the brand
to maintain the image of the organisation. This can be positive or negative.
On the positive side, if previous, current and potential customers are happy to
identify with the brand, they will be happy to accept the service offer, as this is seen
as part of the brand. They will feel comfortable about what the brand gives them and,
usually, their expectations will be met.
This can work to the organisation’s advantage because it can attract more customers
who are happy to either return to them or aspire to buy their products and services.
The organisation knows that the brand and the brand image are attracting the
customers that are needed for success and sustainable growth.
On the negative side, a brand can be a problem when trying to deliver the customer
service offer. If people perceive an organisation as being too upmarket, exclusive or
expensive, potential customers may avoid it they think that they will not fit in or able
to afford the services and products.
Conversely, if an organisation’s brand seems to be too downmarket, people might
refuse to buy there because they do not want to be associated with an ‘inferior’ brand.
82
© LCG 2018
Section 1: Principles of customer service and delivery
Both of these attitudes can cause problems for an organisation that needs to broaden
its appeal and attract new customers. They do not want to alienate their core of loyal
and established customers by changing the brand and brand image too drastically,
but they do need to change the customer offer to attract newcomers.
For example, if the watch company needs to increase the number of customers, it
cannot afford to alienate its core of customers who value the prestige and exclusive
nature of the brand. They need to launch a new brand that is similar to the original,
but not as expensive or exclusive – an entry-level range for people who aspire to buy
the exclusive range but cannot afford it.
There has been an interesting shift in the customers who use cheaper supermarkets,
such as Lidl and Aldi. The supermarkets have amended their service offer to attract
new customers, with clever marketing to show that their quality and choice of
products are attractive to a wide range of people. Winning prizes from independent
reviewers has broken down barriers by showing that the quality of the products and
customer service is high and sustainable.
Customer service language to support a brand promise
The language that staff use when delivering customer service is part of establishing and
maintaining a brand image. It supports a brand promise, which is the organisation’s
commitment to its service offer and might be called a mission statement.
To support the brand promise, customer service staff will need a range of phrases
that they can use when communicating with customers – face-to-face, on the
telephone or when writing to them. Customers might have seen advertisements
or logos, but contact with staff will have a major effect on their impression of the
brand and how they perceive the brand promise. It can help to cement a good
impression, help customers to develop a good impression of the brand, or leave them
disappointed and sceptical about the brand promise.
To create a positive impression, key words about the brand, products or services
need to be part of the staff members’ everyday language, to make sure that the key
features and benefits of the brand promise are highlighted. A brand promise for a
product might state that it is, for example:
the most advanced product of its kind in Europe
cheaper than all competitors’ similar products
reliable and safe
of good and affordable quality
Workbook 1
83
Section 1: Principles of customer service and delivery
long-lasting and durable
made using the very latest technology
faster than other products
An organisation will usually have a selection of key phrases for its staff to use in
their customer service language to support the brand promise. By having established
phrases, an organisation can make sure that the descriptions given out by their staff:
are accurate and truthful
are compliant – e.g. with consumer-related legislation
give the right impression of the brand
are kept up to date to tie in with current marketing and advertising campaigns
In addition to key phrases that describe the features and benefits of the brand, some
organisations have set customer service phrases that they like their staff to use for
certain situations. These could be, for example:
“Have a nice day”
“Is everything all right with your meal?”
“No problem”
“You’re welcome”
“My pleasure”
The customer service language needs to support the brand, so careful thought needs
to be given to make sure that the tone and words are appropriate. For example, staff
working for a funeral director should avoid “Have a nice day” when talking to grieving
family members. Similarly, waiting staff working in a four-star restaurant will use more
complicated language than those working in a family pub/restaurant, as they will need
to discuss and explain their products and services in more detail.
84
© LCG 2018
Section 1: Principles of customer service and delivery
Staff also need a range of customer service language phrases that they can use in
potentially awkward situations, so that they can maintain a positive impression of the
brand and the organisation. For example:
Phrases to avoid:
I don’t know.
Alternative phrases that could be used:
I just need to check that for you; let me call you back in a
few minutes.
I’ll find out for you…
Who is this?
May I have your name, please?
You didn’t fill out the I would be happy to help you fill out the form.
form properly.
She is not taking
She is not at her desk at the moment. May I take a message
any calls.
or put you through to her voicemail?
He’s not in.
He’s away from his desk just now. May I take a message and
get him to call you back?
I can’t help you.
Let me see what I can do for you…
You owe us money. Our records show that there is a balance of…
You need to…
We usually find it works best if…
I suggest…
What do you want?
How can I help you?
Are you ready to order or shall I come back in a few minutes?
Standard phrases, such as “Have a nice day”, are not always welcomed in the UK as
we sometimes consider the comments to be insincere and impersonal. However, it is
important for staff in a customer service role to use phrases that are positive, helpful
and professional. A positive attitude expressed in positive and helpful language helps
to support and sell the brand image.
Using the right customer service language is important as it helps to:
reassure and put customers at their ease – but it does not put them down
confirm or exceed their expectations
build a relationship with the customer
support the identity of the brand
confirm the link between the customer, the brand and the organisation
focus staff members on the expected service standards and brand promise
Everyone who works for an organisation needs to use language that supports the brand
promise so that they give out a consistent message about the brand to, for example,
customers, suppliers, media contacts or others connected with the organisation.
Workbook 1
85
Section 1: Principles of customer service and delivery
Delivering a brand promise
Staff working in a customer service role need to bring several elements together when
ensuring that a brand promise is delivered. They need to, for example:
be clear about what the brand promise is
understand what the brand means to the organisation
follow the organisation’s procedures about how to deliver the brand promise
have
thorough and up-to-date knowledge about the brand and all of the related
products and services
treat each customer as an individual
use appropriate customer service language
remember to take appropriate follow-up actions and keep promises
escalate
any problems or issues as soon as possible, so that the brand is not
compromised
Summary
In this section, we have looked at the principles of customer service to gain an overall
understanding of the subject. We have examined:
the purpose and scope of customer service
what organisations and their competitors offer customers
barriers to effective customer service
legal and ethical requirements that relate to customer service
customers’ wants, needs and expectations
managing expectations and gaining trust
the importance of follow-up actions and keeping promises
customer satisfaction
features and benefits of products and services
measuring the effectiveness of customer service
the management of customer service information
the relationship between customer service and a brand
86
© LCG 2018
Section 2: Understand customers
Introduction
In this section, we will look at different types of customer and the value of customers
and their loyalty. We will consider how to deal with customers to enhance customer
loyalty and the organisation’s reputation.
Internal and external customers
Please read the following as it will help you to answer question 34.
Traditionally we think of a customer as someone who buys products or services from
a shop or business. However, organisations have business relationships with different
people, agencies, contractors, companies and so on, and many of these will be
customers too.
Customers can be:
Internal customers
These customers are within the organisation itself. For example:
The
shop-fitting department of a large supermarket chain call the store managers
their customers.
The
printing team in a company may consider the marketing team as their
customer because of preparing brochures, leaflets etc. for them.
manager employed by a charity to look after the welfare of volunteers may think
A
of the volunteers as their customers, as their job is to provide back-up and
resources to the voluntary workers.
External customers
These are outside people or organisations that buy and/or use the products and
services. These will include:
clients – customers who use the organisation’s services over a period of time,
where there is usually an ongoing business relationship – e.g. in a hospital, the
cleaning contract company will call the NHS its customer; an accountant will have
the same clients for many years
walk-in customers and passing trade – customers who walk in from the street
without pre-booking a service or product, usually wanting to buy or browse and get
to know a business
Workbook 1
87
Section 2: Understand customers
Internet-based customers – there may never be a direct, personal relationship
with these customers if all transactions are performed on a website, although email
contact is now very common
telephone customers – call centres deal with millions of people this way, dealing
with services, orders, queries, payments, complaints and so on
contacts from referrals and recommendations – people referred to the
organisation by existing customers
Money does not always need to change hands directly between customers and the
organisation. There is still a customer service role even if products and services are
not paid for. For example:
a free drop-in centre funded by a charity and local council, the customers will
For
be the people who use the facilities. The level of activity will probably affect the
money given to the centre, and customer service is still important.
library funded by the local council does not charge for many of its services, but
A
the users of the library are still customers.
Differences between internal and external customers
There can be differences between the two types of customer, for example:
Their level of knowledge and understanding of the organisation’s systems and
procedures
Internal customers will usually have a reasonable working knowledge about how the
organisation works. They may work for a different department and have different skills,
but they will know about the organisation’s structure and functions.
External customers may know nothing about the organisation, especially during their
first transaction. Unless we have worked for or studied a similar organisation, we are
unlikely to understand how its systems and procedures work.
Their expectations of the products and services
Internal customers will base their expectations on a working knowledge of the
organisation. They are much more likely to have come across the products and
services before and will have a good idea about what to expect.
External customers’ expectations might be based on previous experience, but they are
likely to be based on their impression of the brand. This impression could have been
formed by finding out about the products and services from several sources – e.g.
advertising, research or recommendation.
88
© LCG 2018
Section 2: Understand customers
Styles of communication
Internal customers will often use jargon and abbreviated
references, such as acronyms. Using inside knowledge
and familiar phrases keeps things brief when
communicating with people who also understand what is
meant. Communication can often be informal between
established colleagues, for example, although formal
styles are needed in some circumstances.
External customers often require more formal communication styles and methods,
avoiding jargon and over-familiar phrases and greetings, especially if the working
relationship has not been established. Organisations will usually use a more
formal approach with external customers, as a sign of respect and to minimise
misunderstandings.
Cultural factors
Please read the following as it will help you to answer question 35.
Customers’ expectations can be heavily influenced by cultural experience, and
organisations take this into account when delivering their service offer and managing
expectations.
Cultural factors that need to be considered include, for example:
anguage – e.g. English not being the first language; different traditions about tone
L
of voice; cultural traditions about the formality of language communication styles
Nationality – e.g. established traditions that reflect national culture
Age – e.g. cultural traditions about how people of different ages treat each other
Religion and beliefs – e.g. affecting food and drink choices; different holy days;
religious festivals; fasting periods
Social attitudes and behaviours – e.g. the formality and type of greetings
Body language – e.g. personal space; touching and gestures; showing feet
Values – e.g. ethics and perception of right and wrong; lifestyle; attitudes to
environmental and animal welfare issues
As we know, customers all expect good-quality products and services, and excellent
customer service. In addition to these expectations, we need to add cultural
awareness as it is an important part of treating each customer as an individual.
Workbook 1
89
Section 2: Understand customers
The following table gives some examples about topics that may affect customers’
expectations and how an organisation might address these:
Cultural
factor:
Language
Nationality
Age
90
© LCG 2018
Possible effects on
When considering cultural values,
customers’ expectations: organisations might:
unable to check if needs
print product information in different
can be satisfied
languages
not understanding the
train staff to speak slowly and clearly
details about the service
and be prepared to repeat
offer, leading to
encourage staff to use gestures and
disappointment or surprise
diagrams to communicate when
finding communication
necessary
with customer service staff
have access to translation services
difficult and embarrassing
use a formal approach when
fear about asking
greeting customers – if their culture
questions
expects this
offended by the words
reassure staff that customers from
and tone of voice used
certain cultures do not use ‘please’
and ‘thank you’ as we do in the UK –
although considered rude here, this
is seen as normal in many countries
want to find familiar
do different versions of products for
products and services that
different nationalities – e.g. flags and
reflect their nationality
souvenirs sold at international
and traditions
sporting events
offer national dishes and drinks – e.g.
haggis for a Scottish New Year party
offer imported products and brands –
e.g. Polish tiger bread or German
bratwurst sausages
expect to be treated in a
treat older customers more formally
certain way for their age
– if their culture expects this
might have preconceptions
use formal forms of address for adults
about staff being much
amend their service offer for children
older or younger than
and young people
them – and unable to deal
research a person’s cultural
with their queries
expectations for different age groups
Section 2: Understand customers
Religion
and beliefs
want foods that are
prepared in a special way
want products and
services required by their
specific religion
want products and
services available at
correct time for religious
holidays, festivals, fasts
etc.
expect respect and
tolerance for the beliefs,
or lack of beliefs
Social
attitudes
and
behaviours
some expect to be served
by a person of their own
gender only
expect products and
services associated with
certain social situations to
be available
expect staff to respect or
follow their own traditions
and cultural behaviours
Body
language
some expect staff to
display body language
that is acceptable in their
own culture
offer
alcohol-free options
offer vegetarian, kosher, halal and
pork-free options
set aside an area for prayer
target service offers at religious
festivals and respect fasting periods
be aware of having to separate men
and women at certain events
make sure that there are no
offensive images or symbols on show
– e.g. covering up a cross at a
crematorium when there is a nonChristian funeral
making sure that staff cover up
sufficiently to show respect
be aware that some cultures treat
males and females differently in
some cultures – amending the
service offer if appropriate
match the service offer to particular
cultural practices – e.g. allowing
alcohol sales at a rugby match in a
stadium, but not a football match
avoid interruptions and shouting –
considered to be very rude in some
cultures
be aware of types of customer
service that people from other
cultures may be used to
train staff about not standing too
close to people, or touching them –
if this will be considered offensive
encourage eye contact with some
cultures, but discouraging it for others
check which gestures are acceptable
or offensive
make sure that staff know how to
greet people from different cultures –
e.g. whether to shake hands, bow,
remain silent or be very relaxed and
chatty
Workbook 1
91
Section 2: Understand customers
Values
some customers will not
choose products and
services that do not
support their values
customers expect claims
about the organisation’s
values to be genuine
provide
a range of ethically-sourced
goods to give customers choice
be members of associations and
schemes that identify with their
values – e.g. the Soil Association,
Fairtrade, Assured Food Standards
(British Red Tractor logo)
offer vegetarian
offer approved options – e.g. Halal
or Kosher meat
make sure that their service offers
reflect different lifestyles
make sure that their image and
behaviours support their values
Organisations will usually have policies, procedures and training to help their staff
treat customers equally and fairly. They encourage respect and make it clear that
discrimination is not tolerated. They may have ‘diversity days’ where people bring and
try things from different cultures, so that they can learn about different customs, food,
festivals etc.
In the customer service role, staff can do several things to embrace and respect
cultural diversity. Staff can:
observe, understand and respect different dress codes and symbols – e.g.
customers wearing a cross, a hijab or a turban
be respectful and aware of how different genders can be treated in other
cultures – e.g. some cultures can seem quite sexist to us in the UK, with the
husband making all of the decisions during a transaction, for instance
be sensitive to the person’s gender – e.g. female patients may prefer or insist
on seeing a female doctor
be very discreet and allow privacy – e.g. in a changing room
learn about festivals and customs for other cultures – so that they understand
the main points and can hold an informed conversation with the customer
be polite, courteous and friendly at all times
speak
clearly and slowly, moderate strong regional accents and avoid local
sayings – especially if English is not the customer’s first language or they come
from a different region of the UK
92
© LCG 2018
Section 2: Understand customers
repeat
very clearly if requested – maybe using different words, gestures or a
diagram to help the customer understand something
stay calm when they are not sure about how to handle the situation
If an organisation deals with customers from the same cultures all of the time, staff
with a customer service role will soon learn about the details of the cultures. This will
enable them to relax and engage with customers on a wide variety of subjects.
If staff find that they do not understand the cultural differences and do not know how
to act, they should just stay calm and remain polite and courteous. They should not
make assumptions about the customer’s needs and expectations. They should ask
the customer, in a polite way, about what they can do to help.
The main thing is to treat every customer as an individual, with respect and patience,
whatever their background or culture.
Knowledge Activity 21: Imagine that you work in an insurance call centre.
You are having great difficulty understanding a customer who has called
to complain.
What could be the causes of the communication difficulties?
How would you deal with the situation?
Workbook 1
93
Section 2: Understand customers
Dealing with challenging and dissatisfied customers
Please read the following as it will help you to answer questions 36, 37a, 37b
and 38.
Sometimes staff in a customer service role have to deal with challenging customers.
There can be communication difficulties that need to be overcome, and it is important
for the staff member to respond professionally and appropriately. This is to:
safeguard the personal safety of the staff member, their colleagues, the customer,
and others who may be affected
respect the customers’ rights
comply with legislation and regulations – e.g. the Equality Act 2010 or the General
Data Protection Regulation (GDPR)
maintain good customer service in all situations
Different types of challenging customers
Customers can present extra challenges at work for a variety of reasons. People might
exhibit challenging behaviour or make extra demands as a result of:
reasons
outside the organisation’s control – e.g. permanent or temporary
factors in the customer’s personal life
reasons
within the organisation’s control – e.g. a reaction to problems with
products or bad customer service
mixture of the two – e.g. someone with drug or alcohol issues overreacting to a
a
problem with a product
Whatever the cause, challenging customers may be angry, unreasonable, confused,
distressed, demanding, difficult to communicate with, or in need of extra assistance.
Customers may be challenging to deal with due to, for example:
additional
needs or requirements – e.g. impaired vision, hearing or mobility
issues that need to be accommodated
poor
communication skills – e.g. learning difficulties that make communication
difficult
language barriers – e.g. making them upset because they find it hard to express
themselves in English
cultural barriers – e.g. making some customers seem rude because saying
‘please’ or ‘thank you’ is not part of their culture
94
© LCG 2018
Section 2: Understand customers
personal problems – e.g. issues with alcohol, drugs or a medical condition;
childcare or family problems; difficult living conditions
incident, emergency or trauma – e.g. reacting badly if they (or a person close
an
to them) have been involved in an accident, injury or serious illness
dissatisfaction
and disappointment – e.g. reacting emotionally when there is a
problem with the product or service
impatience – e.g. being short-tempered if they are not dealt with straight away
indecision – e.g. uncertainty about how to proceed, what they want or how to
solve problems
being
overly assertive, confident or intimidating – e.g. coming across as a
bully when talking to customer service staff
being
too talkative – e.g. making it hard for staff to deal with their query quickly;
making things unnecessarily complicated; making it difficult to find out exactly what
the problem is
It is important to collect information about the reasons behind a challenging
customer’s behaviour as this helps us to work out how to react and take appropriate
action. Challenging behaviours can include, for example:
aggression – e.g. threatening or bullying staff or others; being violent; standing
very close to someone and intimidating them; using threatening gestures
frustration – e.g. getting angry and making inappropriate comments; refusing to
accept limitations and procedures; crying or losing control of their temper
irritation – e.g. being impatient and bad-tempered; questioning the competence of
staff or the organisation
confrontation – e.g. arguing with staff
confusion – e.g. not understanding what they need to do due to physical or
mental impairment
making
unreasonable demands – e.g. expecting solutions that cannot be
delivered; being unrealistic about deadlines or the limits of the service offer
When customers are angry, they usually ‘run out of steam’ quite quickly if people just
listen to them using good active listening skills. Arguing with them just gives them
an excuse to carry on ‘ranting’ and is like throwing petrol on a fire. Listening and
apologising are the best ways to defuse anger.
Workbook 1
95
Section 2: Understand customers
Staff dealing with angry customers need to be very aware that anger can quickly lead
to violence. If there is a possible threat to personal safety, during a heated argument
between customers in a bar for instance, it is usually best to let specially trained
security staff handle the situation. Security staff and police officers are properly
trained in how to deal with difficult people in difficult situations, so it is important to
know when to step back and let them take over.
Dissatisfied customers
When customers are dissatisfied with the service offer or customer service, they do
not make repeat purchases or recommend the organisation to others. This can harm
the organisation, especially if negative reviews mean that potential customers refuse
to try the organisation’s products or services for themselves.
Customers can be dissatisfied with any part of the service offer, such as rude
staff, lack of staff, waiting times or problems with their purchases, and they can be
identified by, for example:
their direct complaints – e.g. on emails, letters, telephone or face-to-face
their indirect complaints – e.g. leaving poor reviews on social media or surveys
body language – e.g. crossed arms, angry expressions or aggressive hand movements
their tone of voice – e.g. using a raised voice or shouting
96
© LCG 2018
Section 2: Understand customers
When dealing with dissatisfied customers, staff members need to follow their
organisation’s complaints procedures. The staff member will usually, for example:
listen to or read the details of the complaint – maybe making notes about the details
apologise
to the customer – and show that they understand and sympathise with
the customer
explain
the background to the problem or issue, or offer to investigate if the cause
of the problem is not obvious
take action and follow it up
keep
the customer informed at all stages of the process – even if it takes many
weeks to resolve the problem
apologise again, reassure and thank the customer for their patience and custom
Knowledge Activity 22: Imagine that you work in a large shop and a
customer comes in from the street in a distressed state. They are hardly
able to speak, they have blood on their arm and they are extremely pale.
How do you handle the situation?
It turns out that they have been attacked outside the store and had their bag
and purse stolen. What other action can you take?
Workbook 1
97
Section 2: Understand customers
During the conversation, they become even paler and they complain of
feeling sick and dizzy. What should you do now, and why?
Customer service offer and customer loyalty
Please read the following as it will help you to answer question 39.
The achievement of the customer service offer can be a major contribution to the
enhancement of customer loyalty. Meeting or exceeding expectations when delivering
customer service is a vital part of developing a relationship with customers and
earning their loyalty.
As we have seen already, the service offer is defined as the extent and limits of
the customer service that an organisation offers its customers – e.g. the range of
goods and services, pricing, discounts, delivery options, warranties and other valueadded features. The service offer might be outlined in a contract of Service Level
Agreement (SLA).
To achieve a service offer, an organisation needs to gain customer satisfaction by
meeting and exceeding expectations through delivering excellent products, services
and customer service. This can be identified in positive feedback and increased sales
from customers’ recommendations and loyalty.
When an organisation achieves its service offer, it develops a relationship with the
customer that builds:
confidence in the organisation
trust in the service offer
commitment to the organisation
98
© LCG 2018
Section 2: Understand customers
5. The
organisation does
well, takes comments
on board and
continues to maintain
and develop excellent
products and
services
1. Organisation
achieves its
customer service
offer and delivers
excellent products
and services
4. Customers
tell other people
about their positive
experience – and they
return to make
further purchases
themselves
2. Customers
are happy – their
needs are met and
expectations are
met or exceeded
3. Customers
develop a loyalty
for the organisation
and its brand and
service offer
Customer satisfaction and organisational performance
Please read the following as it will help you to answer questions 40 and 41.
There are links between all aspects of customer service. One relationship is between
customer satisfaction and organisational performance, a two-way and interdependent
process.
Customer satisfaction is an abstract concept of when customers’ needs and
expectations are met or exceeded by, for example:
receiving good-quality goods and services
delivery being on time
staff ‘going the extra mile’ when delivering customer service
having problems and queries dealt with effectively
knowing that their opinions and feedback matter
Workbook 1
99
Section 2: Understand customers
Organisational performance must be at a good level to be able to achieve this success
on a sustained basis. All operational functions need to run smoothly, efficiently and
effectively for the products and services to be consistently delivered at a high and
sustainable standard.
Once an organisation has achieved good levels of customer satisfaction, there can be
several benefits, including:
repeat business from the customer
increased
customer spend – e.g. a customer who starts by buying one new
product might be so impressed that they try three or four new products next time
customer loyalty – e.g. always buying the same brand
recommendations – e.g. from the customer telling friends and family about the
new products
performance
targets being met or exceeded – e.g. sales, profits, new contracts
or SLAs
Even if the organisation enjoys success and benefits as a result of good rates of
customer satisfaction, it needs to continue to deliver excellence to maintain and
improve its position to survive and thrive.
Potential consequences of customers’ dissatisfaction
If an organisation fails to achieve its customer service offer, it will lead to customer
dissatisfaction. It can fail by, for example:
providing substandard goods or services
failing to deliver on time and in good condition
giving poor customer service
not dealing with queries or complaints effectively
mis-selling – deliberately or by accident
charging excessively high prices
not keeping up to date with trends and customer expectations
not being ethical or environmentally aware
100
© LCG 2018
Section 2: Understand customers
1. Organisation
produces high
standard of products
and services
6. Organisation
uses feedback to
continue to develop
and improve
products and
services
2. Customer
service staff deliver
high standard of
customer service
5. Levels of sales
are maintained
or increased
3. Customers are
satisfied
4. Customers buy
again, spend more
and recommend
to others
The consequences for an organisation that fails to earn customer satisfaction can be
extremely serious and difficult to address. For example, an organisation could:
suffer from bad publicity and lose a good reputation
lose current and potential customers to competitors – in the short or long term
have orders cancelled or reduced
suffer a drop in revenue and profits
receive more complaints
lose staff from redundancies or resignations
have a demotivated workforce
Workbook 1
101
Section 2: Understand customers
Once the cycle is broken, by not making sure that customers are satisfied, it can
be extremely difficult or impossible to mend. Customers really are the lifeblood
of organisations in all sectors. Their needs and expectations need to be met and
exceeded if organisations are to avoid failure, reductions or closure.
Knowledge Activity 23: Imagine that you go to your favourite restaurant
where you normally have a great meal with great service. On this occasion,
the meal is not up to standard and the usual kitchen staff do not seem to be
on duty. You find out that the usual chef and manager are away, but they will
be back next week. Make a few notes about:
How you feel about the problems
Whether you will give the restaurant another chance
How you would feel if the problems were repeated on your next visit
102
© LCG 2018
Section 2: Understand customers
Reputation and image
Please read the following as it will help you to answer question 42.
When we think about an organisation’s reputation and image, we consider a wide
variety of subjects that influence our impressions. The organisation’s values, often
mentioned in its brand promises, form the base of its reputation. Its reputation and
image can be based on, for example:
the
standard of products and services produced – e.g. a car manufacturer that
is known for producing only prestige cars
the
standard of its customer service delivery – e.g. companies known for their
excellent customer care
being
a market leader in its industry – e.g. the larger supermarkets who
compete for market share
its size – e.g. being known for being the biggest in the town, country or the world
its business structure – e.g. John Lewis being a partnership where all employees
have a stake in the organisation
its ethics – e.g. refusing to bring food into the UK by air
reputation as an employer – e.g. a school being known as a good place
its
to work
legal compliance – e.g. a building firm having a good safety record and high
standards of health and safety on site
publicity – e.g. positive coverage about charity work done by employees; negative
coverage about illegal or unethical practices
The image that an organisation usually wants to present is that they are competent,
decent, trustworthy, solvent, reliable and competitively priced.
All of these elements influence the customers’ perceptions of the brand, products and
services offered by the organisation. If customers have a positive perception of the
organisation, they are far more likely to have a positive impression of their goods and
services. They will feel positive about associating themselves with the brand.
However, if customers have a negative perception of the organisation, they are very
likely to have a negative view on the products and services. If they feel that they
cannot trust the organisation, they will feel that they might not be able to trust the
quality and reliability of the service offer, so they may refuse to buy a product, or only
spend a small amount to ‘see how it goes’.
Workbook 1
103
Section 2: Understand customers
This is especially true of larger and longer-term transactions. If people are going
to make a considerable investment, they need to feel that they can trust the
organisation and its service offer – e.g. when buying large electrical appliances, cars
or homes. They want to know that their needs and expectations will be met and that
any problems will be dealt with effectively.
Changes in demand for an organisation’s products and services need to be managed.
If they have a good reputation and image, the organisation needs to plan for
sustained or improved development – e.g. in production, sales or employment levels.
If they develop a bad reputation, the organisation needs to act quickly to put things
right. If they fail to take early action, the chances are that the organisation will
become unsustainable and will have to reduce its output, make redundancies and
cuts, and it may be forced to close or sell.
Knowledge Activity 24: Think about three of your favourite brands.
Make a few notes about the reputation and image you have of each
of the organisations that make them:
1.
2.
3.
104
© LCG 2018
Section 2: Understand customers
Attracting customers and retaining loyalty
Please read the following as it will help you to answer question 43.
We have seen how the organisation relies heavily on its customers being satisfied with
its customer offer. It needs new customers and repeat business all of the time to be
able to do well and plan ahead. There are many things that organisations can do to
help to attract customers and retain their loyalty.
Attracting customers
Methods that organisations use to attract customers include, for example:
advertising campaigns – e.g. television, radio, magazine and newspaper
advertisements about a new or revised product or service
promotional offers – e.g. offering discounts and special offers
promotional events – e.g. having an open day; taking stands at trade shows;
running corporate events; product launches for media and invited guests
sponsorship – e.g. sponsoring local, national or international events or sporting
competitions
offering unique selling points (USPs) – e.g. offering brand-new technology
marketing and publicity campaigns – e.g. mailshots, cold-calling, marketing
emails or telephone calls; doing radio, press or television interviews
social media and Internet activity – e.g. using Twitter, Facebook or YouTube
incentive schemes – e.g. bonuses or gifts for customers who introduce new
business; loyalty cards and vouchers
developing websites – e.g. working to improve rankings on search engines and
links with compatible websites
developing relationships with compatible organisations – e.g. sporting event
organisers working with different stadiums and venues who have similar customers
contacting previous customers – e.g. to offer new products or entice them back
from competitors
An organisation needs to have its service offer ready by the time it embarks on
activities to attract customers, so that it is ready to cope with demand. It needs to do
a coordinated approach so that all of the different activities complement each other
and appeal to the right customer profile.
Workbook 1
105
Section 2: Understand customers
Retaining customer loyalty
Having attracted its customers and met or exceeded their expectations, organisations
need to continue to make their service offer attractive to retain their loyalty. Methods
that can be used include, for example:
consistently providing excellent products and services – e.g. proving that their
trust and confidence are justified
providing excellent customer service – e.g. making customers feel valued and
important
loyalty schemes – e.g. loyalty cards, sales, discounts, offers, incentives or events
for loyal customers
dealing with feedback, problems and complaints quickly and effectively –
e.g. to apologise, explain and make sure that amendments to the service offer are
made when required
reacting to any adverse publicity or feedback quickly and in a professional
manner – e.g. to explain the situation, be clear about remedial actions and be
involved in follow-up media coverage
remaining competitive – e.g. to make sure that they can continue to compete
with competitors’ service offers
constantly reviewing trends and customers’ expectations – e.g. to make sure
that the products and services are up to date with changes in fashion, technology
and so on
developing new or improved products and services – e.g. to give them new
opportunities to approach previous, current and potential customers
staying in touch with customers – e.g. to continue, maintain and develop the
customer relationship
106
© LCG 2018
Section 2: Understand customers
Knowledge Activity 25: Imagine that you manage a phone shop in town.
You have new products coming to your store next month and you need to
attract new customers and retain the loyalty of your current customers.
Make a few notes about what you could do to achieve your objectives to
develop the business.
Summary
In this section, we have looked at the different types of customer and the importance
of customer loyalty. We have considered:
internal and external customers
cultural factors
how to identify and deal with challenging and dissatisfied customers
how the service offer can enhance customer loyalty
the organisation’s reputation and image
attracting customers and retaining their loyalty
Workbook 1
107
Section 3: Understand employer organisations
Introduction
In this section, we will cover organisational structures and the organisational
environment. We will look at the different types of organisation, internal and external
influences and the importance of change.
Organisational structures
Please read the following as it will help you to answer questions 44, 45 and 46.
In previous workbooks, we have mentioned many different types of organisation – e.g.
retail outlets, doctors’ surgeries and charity shops. Some of these will have been
large companies, others will have been owned and run by individuals. Some will have
been public services, and others will have been charities that rely on volunteers and
donations. These different types of organisation have different structures, belong to
different sectors and follow different legal guidelines.
Different sectors
Products are things that are manufactured or produced – such as food, cars,
magazines or furniture. A service is the action of helping or doing work for someone.
Organisations are either in the commercial sector, the public sector or the third
sector, and they provide either products or services, or a mixture of both.
The private sector
This is often called the commercial sector. It includes organisations in all industries,
such as retail, hospitality, transport, finance, technology, manufacturing or leisure – e.g.
shops, pubs, hotels, gyms, private bus companies, financial and legal services, factories
and workshops. Some of these industries make products – e.g. furniture or food – and
some of them offer services – e.g. fitness training or legal advice. Many businesses offer
products and services – e.g. food cooked and served in cafes by staff.
108
© LCG 2018
Section 3: Understand employer organisations
The organisations can be small businesses with only one or two people, or large
multinational companies that employ many thousands of people. Profit is important
to the commercial sector as this provides the income for the business owners, so it is
vital to attract new and old customers to generate the income needed.
The focus of customer service is on sales and after-sales service, supporting the
customer before, during and after the purchase. For example, a small pub owned by
a family provides products and service, and they take care of their customers:
before – choosing the drinks and menus that their usual and new customers want;
advertising and marketing the meals and drinks on offer in a way that pleases new
and old customers; being polite on the telephone when taking bookings
during – taking care of customers’ expectations by providing excellent food, drink
and service; dealing with any problems or complaints politely and effectively;
making the customers feel welcome
after – asking for feedback from the customers to make sure that they were
satisfied with everything; taking the customers’ comments seriously; passing on
the information to the managers to make changes if necessary; leaving them with
the impression that they were valued customers and that they will be welcome in
the future
The public sector
This sector includes organisations such as the NHS, police, fire service, HM Revenue
and Customs, the armed forces, local councils, schools and colleges. They provide a
variety of services to the public – e.g. healthcare, security services, education classes,
rubbish collection. They often have to generate income and handle budgets, but they
are not necessarily profit-making.
The focus of customer service is on the quality and level of the service that is
provided. As they are funded by the public, they constantly review their customer
service to make sure that it satisfies the needs of the public:
before – by planning the levels of services that are needed – e.g. the number of
hospital beds or police officers needed for the size of the town
during – by providing the actual services – e.g. collecting recycling weekly, dealing
with housing benefit claims, collecting taxes
after – by reviewing the service provided and making changes as necessary
Workbook 1
109
Section 3: Understand employer organisations
The voluntary sector
This sector includes voluntary and not-for-profit organisations and is sometimes
called the third sector. Third sector voluntary organisations can be known as social
enterprises – e.g. charities, community groups, housing associations, trusts or
cooperatives. They can provide products or services, and they are often involved with
selling products to raise money – e.g. selling items in a charity shop to raise funds,
then providing counselling services.
The focus of customer service can be split between raising funds – e.g. taking care
of customers who buy from a charity shop – and providing services – e.g. supporting
individuals and groups who need support or assistance.
An example would be a charity that runs hospices for the terminally ill. It will raise
money through donations, selling donated and purchased items in its charity shops,
fundraising activities and funds from the NHS and local councils. It will support
people in need and provide a well-equipped building and offer healthcare, nursing and
specialist support, counselling for the patients and families, bereavement counselling
and support. It will work closely with the NHS, especially the GP surgeries, to
coordinate care and support.
Knowledge Activity 26: Think of two organisations you know in each of the
three sectors – commercial, public and third. Make a short list of their products
and/or services. What is the main focus of their customer service?
Organisation’s name
Products/services
offered
Main focus of their
customer service
a)
a)
a)
b)
b)
b)
c)
c)
c)
d)
d)
d)
e)
e)
e)
f)
f)
f)
Commercial organisations
Public sector
Third sector
110
© LCG 2018
Section 3: Understand employer organisations
Functions of different organisational structures
The structure of an organisation is important as it can influence the way that people
communicate with each other. The structure develops over time and it shows who
reports to whom, and who is responsible for each area and function.
Organisations can have different structures. These can depend on, for example:
the size of the organisation
the products and services on offer
strategy and planning needs
the workforce and contractors engaged by the organisation
the business environment
Typical organisational structures include:
Hierarchical line management
The most common structure is hierarchical line management. It develops over time
with employees at different levels. As they move up the line, employees have more
authority and decision-making power.
Usually, each person in the hierarchy reports to their line manager at the next level,
and there is only a vertical relationships between different levels. This can simplify
authority, responsibility and decision-making, but it can overload key people and links
between different departments can be awkward. If staff always have to go to their line
manager, it is hard to communicate effectively with people in other departments.
Organisations in all three sectors can have hierarchical line management – e.g.
medium and large companies, local councils and large charities.
Flat or horizontal structure
The organisation has fewer layers of management and a wider span of control. Team
members can access and communicate with managers more easily, and they need
to take responsibility for making more decisions themselves. This structure is quite
common in new and small businesses.
Workbook 1
111
Section 3: Understand employer organisations
Functional or staff structure
The structure is organised according to the functions of the organisation, especially
when products require a high level of specialist knowledge. The senior functional
manager will be responsible for allocating resources for the total product. Coordination
with the rest of the organisation occurs through, for example, detailed specifications
or regular meetings.
Line and staff structure
Most large organisations fall into this category. There are direct, vertical relationships
between different levels as well as functional specialists who are responsible for
advising line managers. Jobs can be described as:
line management positions – for a direct chain of command
functional
or staff positions – to provide expertise, advice and support to line
positions
Line managers have direct authority and staff have functional authority to advise the
line managers. The structure can be complicated, and there can be confusion about
the chain of command, so organisations need to have detailed procedures that are
reviewed and updated as the organisation changes.
Divisional structure
Divisional organisations are often divided into smaller operational units. Each division
focuses on a sales or production unit, then has its own sales, production, finance, HR
and marketing functions. It is still a hierarchical structure, but each division operates
independently for most of the time.
Charities and other third sector organisation, plus some small and medium-sized
businesses, will often use a mixture of divisional and functional structures as they
need to be very responsive to their particular marketplace.
112
© LCG 2018
Section 3: Understand employer organisations
Matrix
A matrix structure is often used for projects and one-off activities. It shows how
different parts of the organisation will work together for the project, often in addition
to their normal day-to-day functions.
For example, a car manufacturing company could use a matrix to show the
involvement of different departments when making and selling new cars. Working with
batches of 100 cars, in April the matrix would show: Batch 1 is finished and under
the control of the Sales department; Batch 2 is under the control of the Paintshop
department and being sprayed; Batch 3 is in the early stages of assembly under the
Production department’s control, and so on. The matrix structure brings together
all functions in a three-dimensional picture, based on how and when the different
departments need to coordinate with each other.
Knowledge Activity 27: Using a search engine, type in ‘organisational
structure UK’, and find three examples of structures for different organisations.
Many larger organisations are very open about their management structure
and show the information in clear tables and charts.
Workbook 1
113
Section 3: Understand employer organisations
Legal structures
Organisations can be classified in many ways, and their legal entities can be
important when considering how they are run, and how they have to comply with
different legislation. Legal entities can include, for example:
Sole trader
A business can be owned and run by a sole trader, sometimes referred to as a
proprietor or freelancer. A sole trader has full responsibility for the business – e.g.
income tax, national insurance contributions, VAT, payroll, welfare, health and safety.
Example of sole traders could be: a florist who owns and runs a small flower shop
that employs three part-time staff; a journalist who works for themselves and submits
work on a freelance basis.
The person can work alone or can employ many people. The business owner takes
all of the risk and receives all of the profits or suffers all of the losses. They are
personally liable for any business debts and liabilities. In a small business, the sole
trader is likely to make all of the important decisions, although they may employ
managers to run elements of their business.
When businesses and their turnover grow, the owners often form
a limited company or maybe a partnership.
Partnership
Partnerships are formed when two or more people join their
business activities, assets and liabilities together.
They are jointly and severally liable for any debts and liabilities. This means that all of
the partners are jointly responsible for any or all of the partnership’s liabilities, even
if one individual acts alone on behalf of the partnership. For example, if one partner
takes out a car loan on behalf of the partnership for their own car, all partners are
responsible for the debt. The same applies to tax liabilities and so on.
The organisation’s structure will depend on the number of partners and the
percentage of their share. For example, in a firm of solicitors with five partners, the
two senior partners have 26% each, and the three junior partners each have 16%.
They will usually receive their percentage share of annual profits (or losses) and have
voting rights that match their share.
Some organisations are traditionally run as partnerships rather than limited companies
– e.g. GP joint practices, solicitors or accountants. This can be a legal requirement
because they are personally responsible for their business.
Partnerships can employ managers and employees, but the final responsibility rests
with the partners who are legally responsible.
114
© LCG 2018
Section 3: Understand employer organisations
Limited partnership
The liability for debts that cannot be paid in a limited partnership is split among
partners. Partners’ responsibilities differ as ‘general’ partners can be personally liable
for all the partnerships’ debts, whereas ‘limited’ partners are only liable up to the
amount they initially invested in the business. General partners are also responsible
for managing the business.
Limited liability partnership
The partners in a limited liability partnership (LLP) are not personally liable for debts
the business cannot pay, and their liability is limited to the amount of money they
invest in the business. Partners’ responsibilities and share of the profits are set out in
an LLP agreement. ‘Designated members’ have extra responsibilities.
Private limited company
A limited company is a legal entity in its own right. The finances, assets, liabilities and
debts of a company are separate to those of the people who own and run it.
Many small, medium and large businesses are run as limited companies. If they are
‘private companies’, it means that the shares in the company are not available for
public purchase.
A limited company will have shareholders who own the shares – e.g. a husband
and wife have one share each in their company; a family business has one hundred
shares that are held by five different members. The shareholders can receive
dividends per share if there are profits to be shared out.
A limited company will also have at least one director. Directors take responsibility
for running the company and they have to satisfy legal requirements. They do not
have to be shareholders, although many do own shares that they have purchased or
been given as part of their remuneration package.
Salaries and benefits for directors and employees are paid via the Pay As You Earn
(PAYE) tax system.
Most limited companies are ‘limited by shares’. This means that the shareholders’
responsibilities for the company’s financial liabilities are limited to the value of the
shares that they own but have not paid for. Company directors are not responsible for
the debts of the business if things go wrong, so long as they have not broken the law.
A company can be ‘limited by guarantee’. The directors or shareholders give financial
backing to the organisations up to a specific amount, if things go wrong.
Workbook 1
115
Section 3: Understand employer organisations
Public limited company (PLC)
When a company is large and well-established, it can be floated on the Stock
Exchange and its shares can be offered to the general public. There are very strict
rules that need to be followed before a company can be floated and become a PLC.
The structure is similar to a limited company, in that there are directors who are
responsible for running the company and shareholders who own it.
Public sector organisation
This sector includes organisations such as the NHS, police, fire service, housing
departments, HM Revenue and Customs, the armed forces, local councils, schools
and colleges. They provide a variety of services to the public – e.g. healthcare,
security services, education classes, rubbish collection. They often have to generate
income and handle budgets, but they are not necessarily profit-making.
The focus is to provide a good quality and level of service and they are funded by
the public.
Even though there are no company directors or shareholders, public sector
organisations usually have a sophisticated structure, and they are answerable to the
public – e.g. via a board of trustees, directly to a central government department, or
to a commissioner who acts on behalf of the public.
Third (voluntary) sector organisation
This sector includes voluntary and not-for-profit organisations. They can be known as
social enterprises and could be charities, community groups, trusts or cooperatives.
They can provide products or services, and they are often involved with selling
products to raise money – e.g. parents and others in the community raising money to
fund a local youth band or orchestra.
The focus is usually on supporting individuals and groups.
Charities that are registered with the Charity Commission need to have an annual
income of more than £5,000 (although smaller charities can apply for voluntary
registration). The Commission has strict rules about registration, to make sure that
people can feel confident about making donations to registered charities.
116
© LCG 2018
Section 3: Understand employer organisations
The organisational structure can be similar to the public sector. For example, a third
sector organisation can be:
An unincorporated association
This is an organisation set up through an agreement between a group of people
who come together for a reason other than to make a profit – e.g. a voluntary group
or a sports club. Individual members are personally responsible for any debts and
contractual obligations.
A charitable incorporated organisation (CIO)
This is registered and regulated by the Charity Commission. It produces annual
accounts and trustees reports.
A charitable company
This is a limited company with charitable aims. Run like a normal limited company, it
will have to abide by strict rules to qualify for registration with the Charity Commission.
A charitable trust
Voluntary organisations can also be charitable trusts run by small groups of people
who are trustees and do not receive any personal benefit from the activities.
Third sector organisations are usually held to account by an independent body – e.g.
a board of trustees or the Charity Commission for registered charities.
Knowledge Activity 28: Make a few notes about your organisation’s legal
status – e.g. limited company, public sector organisation or charitable trust.
This can be for your current employer, previous employer, training provider
or an organisation you know well.
Workbook 1
117
Section 3: Understand employer organisations
Influences on the organisational environment
Please read the following as it will help you to answer question 47.
Organisations can be influenced by factors that are within their control – internal
influences – and factors that are outside their control – external influences. These
factors have an impact on how the organisation operates and how it delivers its
customer service offer. Organisations need to observe and measure the impact of
relevant influences so that they can prepare for changes, and take action to put
things right when necessary.
Internal influences
There are many internal factors that can influence how an organisation runs its
operations, develops its products and services and delivers its customer service offer.
These are influences that are within the organisation’s control. For example:
Policies and procedures
Organisations develop and follow their own policies and procedures. These will cover
all aspects of the way that the organisation and its staff operate, for example:
ethical policies – e.g. how to source goods and services
complaints procedures – e.g. how to deal with customers when there are difficulties
operational
procedures – e.g. how to make a product, opening times or cleaning
routines
If the policies and procedures are effective and up to date, they will support the
workforce and enable them to deliver good-quality products and services as well as
excellent customer service. They will also make sure that the organisation can comply
with relevant regulations and legislation.
If the policies and procedures are out of date, inappropriate or too difficult to apply,
they can adversely affect the service offer delivery and lead to good staff leaving to
work elsewhere. Failure to have and follow effective policies can lead to poor-quality
products, bad service, complaints or even legal action.
118
© LCG 2018
Section 3: Understand employer organisations
Planning and strategy
Organisations often develop strategies and plans to make sure
that they are sustainable – able to grow, meet challenges and
changing expectations, and to keep ahead of competitors.
Setting and pursuing organisational objectives keeps everyone
focused on shared goals, for example:
an advertising campaign to launch a new product
a marketing campaign to attract new customers
developing
relationships with suppliers with a view to
increasing the size of the business
plans to open new stores over the next few years
If an organisation has effective plans and strategies, it will be more likely to succeed
and deliver a competitive service offer in the short and long term.
If plans and strategy are missing, inadequate or inappropriate, an organisation
can suffer failure if it gets left behind or does not make sure that its objectives are
realistic and achievable.
Management and recruitment of staff
An organisation’s ability to manage its staff well, and recruit the right people, is
extremely important and it will have a major influence on how it operates. Good
management skills are needed to ensure that there are enough well-trained,
experienced and well-motivated staff members to deliver the service offer – in the
short and long term.
If an organisation is good at managing and recruiting good staff, it will be in a strong
position when delivering its customer service offer.
If it fails to recruit the right people and look after its staff, an organisation will be
unable to deliver and maintain a high standard or customer service. After a while, its
customers will probably want to go elsewhere and the organisation will fail if it does
not address any HR problems quickly.
Workbook 1
119
Section 3: Understand employer organisations
Communication
An organisation needs to be good at communicating
with all of its stakeholders (anyone connected with
it) to operate smoothly and deliver excellence. It
needs to have good channels of communication
so that important information can be given and
received, working relationships can be developed
and confusion can be minimised. For example, an
organisation might communicate using:
regular updates in emails or newsletters for staff
advertisements and marketing – to tell customers about new products and services
websites, forums and reviews – to monitor and respond to feedback
staff meetings and training sessions
telephone call centres – e.g. helplines for customers
If communication is of a poor standard, confusion and dissatisfaction can easily lead
to problems for the organisation – e.g. a dissatisfied and under-motivated workforce;
difficulties with suppliers; unhappy customers who do not feel valued.
Reputation, image and brand promise
An organisation has quite a lot of control over its image and reputation, although
external influences may apply from time to time. It needs to do all that it can to gain
and maintain a good image and reputation so that customers feel confident about
what to expect. It can do this by, for example:
making sure that brand promises are kept
consistently meeting and exceeding customers’ expectations
using media and marketing to let people know about successes and developments
keeping up with changes in trends, fashion and competitors’ activities
dealing with problems and complaints quickly and effectively
As we have seen before, a poor image and reputation can do a great deal of harm to
an organisation, and it may not recover if it does not deal with issues promptly and
comprehensively.
120
© LCG 2018
Section 3: Understand employer organisations
External influences
An organisation can also be influenced by external forces – things that happen outside
its control. There are many external factors that can have an impact, for example:
World prices of raw materials and labour
Organisations can be affected by changes in world prices, up and down. World prices
can affect the cost of, for example:
raw materials – e.g. oil, copper or wheat
processed materials – e.g. components that are used in manufacturing
labour – e.g. people who make clothes and shoes for export
transport
costs – e.g. for shipping in bulk by sea, or for delivery by container lorry
or van
Changes in prices have a knock-on effect on production costs, which affect the
sale price.
For example, a drop in oil prices may be beneficial to consumers who want to fill
up their cars with fuel, but companies and countries who depend on income from
supplying oil can lose a considerable amount of their revenue.
Another example is the high price of copper, steel and other metals when large
countries (such as China) go through a phase of major development and building.
Those supplying the metal (including from scrap metal) receive better prices. However,
manufacturing businesses who needed to obtain metals find supplies low and prices
high, which affects their operations and profits.
Changes in technology
Most organisations are impacted by changes in technology. The changes can be
relatively minor or involve a complete transformation of processes, policies and
procedures.
Examples of how new technology has impacted organisations include, for instance:
widespread Internet shopping replacing high-street shopping
mobile telephones making staff easier to access
barcodes simplifying functions such as stocktaking and sales analysis
post
offices closing as many of the functions they offered became computerised
and available online
Workbook 1
121
Section 3: Understand employer organisations
widespread use of CCTV improving security and surveillance tasks
advances in surgery and medical procedures
Competitors’ activities
If competitors take action to develop and improve their products and services, this
can have an impact on other organisations. They need to review their own products,
services and procedures to see if they should, for example:
develop their products and services in the same way – e.g. offering similar price cuts
offer
something even better than their competitors – e.g. to be the only one to
offer free delivery
consider
adapting to appeal to a slightly different market – e.g. going for prestigious
brands rather than trying to compete purely on low prices
add
value in a different way – e.g. offering excellent customer service and inspiring
loyalty from customers
Changing customer expectations
The Internet has increased access to information, making it much easier to research
trends and opinions. There are forum and review websites for so many products
and services, and customers’ expectations continue to change. These changing
expectations can impact on an organisation quickly and dramatically, so it is
important to respond to changes or risk losing out to competitors.
Bad service and poor-quality products are challenged more than ever, and customers
expect higher quality and better value for money.
New legislation, regulations or standards
Changes in legislation, regulations, standards or government policy can influence
organisations.
Sometimes the changes will be seen as a burden – e.g. changes in employment
law that may affect the shift patterns, hours of working, or annual leave entitlement;
health and safety regulations may be increased to deal with new technology and
processes; gaining active consent from customers before processing their personal
data.
Sometimes the changes provide new opportunities – e.g. government grants being
made available for home insulation for some people; changes in funding for adult
education leading to more training courses; reorganising and bringing databases up to
date to comply with new data protection regulations.
122
© LCG 2018
Section 3: Understand employer organisations
Analysing the organisational environment
Please read the following as it will help you to answer question 48.
Organisations need to measure and analyse possible impacts on their operations and
ability to deliver excellent products, services and customer service. This helps them
to review their performance and strategies in detail and consider a wide variety of
internal and external influences. There are two models that are frequently used to
measure and analyse performance – SWOT analysis and PESTLE analysis.
SWOT analysis
An organisation can use a SWOT analysis when reviewing its business plans, analysing
a situation and working out its plans and strategies for development. A SWOT analysis
looks at:
S
Strengths – what the organisation is good at – e.g. its best products and
services; what is going well; features of its successful brands
W Weaknesses – areas that need to improve – e.g. brands that are out of fashion;
poor staff recruitment and retention; high numbers of complaints; legal action
taken by staff or customers
O
Opportunities for improvement – opportunities to maintain or improve
performance – e.g. new markets to approach; new customers; new technology
to improve production and communication; redesigning and relaunching products
and services; new processes, policies and procedures
T
Threats to such progress – things that may stop progress – e.g. problems
with suppliers; competitors’ activities; changes in legislation and regulations;
insufficient time or money to develop and improve operations
Workbook 1
123
Section 3: Understand employer organisations
When we analyse our own skills, we can do a SWOT analysis, and an organisation will
have similar questions:
S
W
O
T
Strengths
What are my strengths? What am I good at already? What
qualifications do I have? What have I achieved already? What
do people praise? When do I get positive feedback?
Weaknesses
What areas of weakness do I have? What mistakes did
I make, or nearly make? What are the gaps in my skills,
knowledge, understanding and experience?
Opportunities
How can I improve? What training can I do to improve? What
for improvement support do I need? Which work opportunities can I find that
will help me to develop?
Threats to such What might stop me? Finance? Time? Support from others?
progress
Lack of information? What can I do to minimise these
potential problems?
A SWOT analysis is a good model to use to focus on the important elements when
reviewing any performance or organisational environment. It helps organisations to
think clearly about where they are, where they need to be, how they need to get
there, and which problems they need to consider that may prevent them reaching
their goals.
Knowledge Activity 29: Prepare a SWOT analysis about your own work
performance in customer service delivery:
Strengths
124
© LCG 2018
Weaknesses
Opportunities for
improvement
Threats to such
progress
Section 3: Understand employer organisations
PESTLE analysis
When evaluating and analysing the impact of external and internal factors, it can be
useful to prepare a PESTLE analysis. This stands for:
P
Political – e.g. planning regulations; waste management strategy, government
schemes to assist people who want to buy their own home
E
Economic – e.g. increased costs of materials, wages and other costs; fears about
recession and unemployment generally make people spend less; confidence in
growth and having more disposable income can increase spending levels
S
Social – e.g. more people driving to work; effects of lifestyles on health and
fitness; dealing with an ageing population and gearing up services and products
to satisfy demand
T
Technological – e.g. more Internet shopping than before; more services and forms
done online; faster computers with more capacity to do more complex tasks
L
Legal – e.g. to cover collection, use, storage and destruction of personal and
confidential data; to protect customers, staff and others from harm from the
incorrect storage and preparation of food; to ensure that consumers are treated
fairly and that their rights are observed
E
Environmental – e.g. affecting the disposal of items such as fridges and cars;
recycling targets; regulations to reduce packaging
Collecting operational data in a logical fashion enables organisations to review the
influences and make decisions about what they need to do to adapt to changes. Some
aspects will be small and can be changed easily following consultation with the relevant
decision-makers. Other aspects will be large-scale and out of the organisation’s control,
in which case the managers will analyse and plan for possible knock-on effects of any
changes.
If an organisation does not react to the external and internal influences on its
operation, it may affect its ability to survive and thrive.
Workbook 1
125
Section 3: Understand employer organisations
Knowledge Activity 30: Do an informal PESTLE analysis of your favourite
restaurant or fast-food outlet. Which of the influences that you have chosen
might have the biggest impact on the business if it changes, and why?
Change in a business environment
Please read the following as it will help you to answer question 49.
Organisations need to change for a wide variety of reasons. Some of them are
internal reasons – things going on within the organisation that need to be addressed.
Some of them are external reasons – things happening out in the rest of the world
that influence the organisation and prompt a need for change.
Several things can prompt the need for organisational change, including:
changes
in technology – e.g. telecommunication companies adapting to newgeneration mobile phones, tablets and other new devices
competitors’ activities – e.g. airlines changing their routes, prices or level of
service to be able to compete with each other successfully
changes
in the marketplace – e.g. customers moving away from the high street
and making most of their purchases online or in out-of-town shopping centres
changing
customer expectations – e.g. hotel guests expecting a higher quality of
accommodation at low cost
new
legislation, regulations or standards – e.g. consumer-related legislation
that affects customers’ rights
environmental factors – e.g. new waste management procedures to reduce
landfill and contamination of the environment
financial issues – e.g. rising costs making current processes unsustainable
126
© LCG 2018
Section 3: Understand employer organisations
political factors – e.g. changes in government funding for apprenticeships
internal
business factors – e.g. following a change in senior managers and other
decision-makers
external
business factors – e.g. fluctuations in currency exchange rates that
affect holiday prices for customers
Organisations can go through change at any stage of their development, for example:
when they first start to expand – e.g. leading to changes in staffing levels
when
they need to restructure after being in operation for a while – e.g.
following changes in technology or competitors’ activities
they are taken over by another organisation – e.g. leading to a merger of
if
staff, resources, customers, working practices and so on
when
they need to close – e.g. after a major downturn that leads to
redundancies or the actual winding up of a business
Organisations need to react to change in a positive way and without too much delay.
This can help them to review their operation and deliver improved performance,
increased efficiency, productivity and profitability. By embracing change and managing
it in a positive way, organisations, teams and individuals can ‘stay ahead of the game’
and remain competitive and effective.
Change in a business environment is important so that an organisation can, for
example:
keep up with and outperform competitors
adapt to market changes and take advantage of new opportunities
comply with new regulations and legislation
keep up with changes in technology
keep
up with changes in demand – e.g. recruiting extra staff, reviewing production
techniques or moving to larger premises
Workbook 1
127
Section 3: Understand employer organisations
Summary
In this section, we have looked at employers’ organisational structures. We have
examined:
differences
between the private/commercial sector, the public sector and third/
voluntary sector
internal and external influences on organisations
analysis models
the importance of change in the business environment
128
© LCG 2018
Section 4: Extension activities
Further your knowledge and understanding of the topics in this workbook by
completing the following extension activities.
Principles of customer service and delivery
Extension Activity 1: Have a look at three major car manufacturers on
the Internet and make a few notes about the incentives they are offering
to customers who buy a new car.
1.
2.
3.
Workbook 1
129
Section 4: Extension activities
Extension Activity 2: Have a look on the Internet and find some brand
promises or mission statement from some brands that you know. For each
one, make a few notes about:
The wording of the brand promise
Whether you think it fits your image of the brand
130
© LCG 2018
Section 4: Extension activities
Understand customers
Extension Activity 3: Look at a website for a large charity that has shops
in the UK. Find out who their target customers are – those who use the shops
and those who benefit from and use the charity’s services – and make some
notes about how the charity operates to meet its customers’ expectations, and
satisfy demand for its various services.
You could consider, for example:
cultural factors – e.g. level of income, country of residence and cultural traditions
how it identifies and deals with challenging customers
how
the charity organises its resources to be able to meet the demand for
its services
how it uses volunteers
how it finds and maintains its income
the importance of goodwill from the general public
Workbook 1
131
Section 4: Extension activities
Extension Activity 4: Research the story of Ratners, the high-street
jewellers. Find out and analyse how the company’s loss of image and
reputation caused its downfall.
132
© LCG 2018
Section 4: Extension activities
Understand employer organisations
Extension Activity 5: Research your favourite charity and find out about its
structure. Make some notes about:
how it is organised – e.g. as a CIO, charitable company or trust
who regulates its activities
how you think its management is structured – e.g. hierarchical, flat or functional
who its customers are
how
it seems to treat its customers and work towards meeting their
expectations and needs
Workbook 1
133
Section 4: Extension activities
Extension Activity 6: Make some notes about how organisations ran their
sales and delivery operations before mobile telephones were brought into
widespread use.
You could consider, for example:
how sales staff on the road stayed in touch with their managers
how they found out about changes in their appointments
how they told customers they were running late
how delivery drivers could check where to find a customer’s house when lost
Then make notes about how the first companies to use mobile phones for their
sales and delivery staff would have had a competitive advantage. You will need to
think about how an external influence (new technology) was used to advantage by
changing internal influences (amending policies and procedures).
Well done!
You have now completed Workbook 1 and should
attempt the assessments. If you require any help
or guidance please contact your Assessor/Tutor.
134
© LCG 2018
Please use this page for additional notes
Workbook 1
135
REPUTATION
PROCEDURES
Disclaimer
Copyright 2018
Every effort has been made to ensure that the information
contained within this learning material is accurate and reflects
current best practice. All information provided should be used
as guidance only, and adapted to reflect local practices and
individual working environment protocols.
All rights reserved. All material contained within this manual,
including (without limitation): text; logos; icons; and all other
artwork is copyright material of Learning Curve Group (LCG),
unless otherwise stated. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted in any
form or by any means (electronic, mechanical, photocopying,
recording or otherwise), without the prior permission of the
copyright owners.
All legislation is correct at the time of printing, but is liable to
change (please ensure when referencing legislation that you
are working from the most recent edition/amendment).
Neither Learning Curve Group (LCG); nor their authors,
publishers or distributors accept any responsibility for any
loss, damage or injury (whether direct, indirect, incidental or
consequential) howsoever arising in connection with the use of
the information in this learning material.
If you have any queries, feedback or need further
information please contact:
Learning Curve Group
1-10 Dunelm Rise
Durham Gate
Spennymoor, DL16 6FS
info@learningcurvegroup.co.uk
www.learningcurvegroup.co.uk
This resource has been endorsed by national Awarding
Organisation, NCFE. This means that NCFE has reviewed it
and agreed that it meets the necessary endorsement criteria.
LCG-PCS October 2018
Version 2