The Customer’s Role The Employee’s Role 2 Chapter Objectives Define customer service. Describe customer-service expectations. Explain word-of-mouth communication. Identify the employee’s role in customer service. Explain the importance of employee empowerment and recognition. 3 Understanding Customer Service Customers are knowledgeable about their needs and wants. The manner in which retailers meet or exceed customer expectations has a big effect on a retailer’s success. 4 What Is Customer Service? Types of customer service can include: accepting credit cards and personal checks delivery repair gift-wrapping placing special orders customer service the set of enhancements retailers offer customers to make shopping more convenient or rewarding 5 Determining Customer Service Methods that retailers can use to help determine which customer services to use include: customer survey questionnaire designed to gain information from customers Customer survey Customer comments Observing the competition Listening to store employees 6 Handling Customer Complaints Let the customer speak. Be empathetic. Apologize. Follow up. Log the incident and learn from the experience. Take responsibility. Research, identify, explain, and solve the problem. Thank the customer for his or her comments. Be positive. 7 What Customers Expect Customers expect to be treated fairly and honestly. They want to be treated with respect and feel they are valued guests. The customer’s perception of the customer service is formed by the way the service is delivered by the employee. 8 What Customers Expect The two areas of customer service are: Retailer reliability services – The ability of the customer to depend on retailers to do what they say they will. Employee contact services – A customer’s contact with store employees. 9 Word of Mouth Positive word-of-mouth communication is a valuable asset. word-of-mouth communication customer conversations about their retail experiences Public consumer Web sites include forums where people rate retail establishments and comment on their personal experiences. 10 Service With a Smile Retailers who have extended their wares to Operating an e-tail business on an electronic the electronic channel can fallchannel—the short in Web—can be costly,offering due tocustomer design, service. delivery,Even returns, and though operating expenses.convenience and low prices attract customers to Web site shopping, many Though Manystill larger dot-com companies crashedthat in comes the online customers expect the same personal attention 1990’s, small stores likeNordstrom.com Harris Cyclery of West Newton, from good customer service. offers customers the Massachusetts, actually increase using a stores. basic Web same renowned customer service online sales as it does in its site. Today, third of Harris’s bicyclequestions business rides in on Customers can a ask online representatives about sizes, the Web to get partsexpect and personal product features andhard-to-find availability—and a prompt, service. courteous response. The site also features a Wish List, where customers can Describe an may e-business’s keep items they want to buyhome in thepage future.to your class after viewing one through marketingseries.glencoe.com. For more information on retailing, go to marketingseries.glencoe.com. 11 1. What are four methods retailers use to determine customer preferences? 2. What are the two large areas of customer services? 3. Why is word-of-mouth communication so important? 12 Representing the Business Retail employees provide most of the personal contact customers have with a retail business. The employee is the key player in the delivery of customer service. 13 Employees and Customer Service Factors affecting employees and service are: Employee retention – Employee turnover – Low employee turnover – High employee turnover Compensation packages employee retention a company’s ability to keep workers employed for an extended period of time employee turnover the change in employment status at a company when employees leave their jobs low employee turnover the change in employment status at a company when few employees leave their jobs high employee turnover the change in employment status at a company when the staff changes frequently 14 Providing Customer Service Managers should set goals for their employees. Managers should make sure that their employees are aware of the company’s mission statement. 15 Providing Customer Service Two ways management can help employees provide excellent customer service are: empowerment granting employees responsibility for making decisions Training Empowerment 16 Providing Customer Service Two important areas of customer service are: Telephone customer service Internet customer service 17 Employee Recognition The employee’s role in providing outstanding customer service must be rewarded. In a way, employees are like customers: When they feel valued and appreciated, they remain loyal. 18 1. What is the most important part of a sales associate’s job? 2. Why is employee retention important in the delivery of outstanding customer service? 3. What are the two ways management can help employees provide excellent customer service? 19 Checking Concepts 1. Define customer service. 2. Explain positive customer/client relations. 3. Explain customer-service expectations. 4. Discuss the importance of word-of-mouth communication. continued Customers share Positive 1. Customers 2. 3. 4. A set of relations expect their shopping and involve anfairness, attitude of enhancements honesty, that customer-service “the customer is retailers respect, and offervalued experiences with always right.” customers guest status. to make friends, relatives, and shopping more colleagues. Positive convenient or word-of-mouth rewarding. communication encourages more customers to attend the store and results in more sales. 20 Checking Concepts 5. Identify the employee’s role in customer service. 6. Describe management’s role in customer relations. 7. Explain the concept of empowerment. continued 5. Management 6. 7. An empowered The employee's has role to staff beis will consistently to be be more availableOne reliable. motivated totoassist area customers might provide begood deliveries; by locating other service. areas may merchandise, involve credit or handling billing services. special orders, and serving the customers' needs. 21 Checking Concepts Critical Thinking 8. Describe what happens to a store if employees give poor customer service. 8. It won't last. Customers will find other places to shop. 22 23 End of