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Learner Guide

BSBCUS501 Manage quality customer service


BSBCUS501 – Learner Guide Version 1.1 (2016/07/21)

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Contents

Module one: Plan to meet internal and external customer requirements ............................................ 1

Section 1 – Customer needs planning process ............................................................................................. 1

Module two: Ensure delivery of quality products and services ......................................................... 19

Section 1 – Customer specifications ........................................................................................................... 19

Module three: Monitor, adjust, and review customer service .......................................................... 29

Section 1 – Monitor progress of service targets and standards ................................................................. 29

Section 2 – Obtain customer feedback to improve products and services ................................................ 32

Section 3 – Use resources effectively to provide quality products and customer service ......................... 35

Section 4 – Make decisions in order to overcome problems ...................................................................... 38

Section 5 – Manage records, reports, and recommendations ................................................................... 42

References ...................................................................................................................................... 44


BSBCUS501 – Learner Guide Version 1.1 (2016/07/21) i

Welcome to the Manage quality customer service course. Before you begin please read through

the following frequently asked questions.

What is the full name of the course award I am working for?

Successful completion of this course can count towards several qualifications. Check your registration details for the qualification you are working towards.

How much work is involved?

Whichever qualification you are working towards will have a number of units of competency you

are required to complete. This unit is entitled: BSBCUS501 Manage quality customer service.

Each unit represents one course on your journey towards completion of your qualification.

We recommend that, to successfully meet the requirements of each unit, you plan to complete

one unit of study per month. You will receive your personalised study plan two weeks after your

enrolment date. This study plan is a structured plan which allocates a manageable study

timeframe, with the allocation of additional months at the end of your study period.

This will enable you to read through the materials, undertaking a range of activities which focus

on this Unit. Then you will be ready for the final assessments at the end of the Unit.

If I get stuck or need help, what is available?

The Technical Panel is available to support you during business hours, from Monday to Friday

(excluding public holidays). You may book a phone coaching session with a Technical Advisor by

emailing your questions to [email protected]. One of the Technical Advisors will

respond to you within two business days. In the meantime, whilst you are waiting for a response,

we recommend that you continue working through your unit learning and activities.

Aim: What is this unit about, and what will be expected of me?

The aim of this unit is to develop your skills, knowledge, and attributes for managing quality

customer service. You will learn about planning to meet customer needs, ensuring quality

products and services and monitoring and reviewing customer service.

For the purposes of this unit, Manage quality customer service will involve any employee who is

required to manage customer service, including establishing service standards and monitoring

and reviewing those standards.



ii

Learning objectives: What should I be able to do, when I have successfully achieved this Unit?

We are working with you to support you in developing your competence in the following areas:

i) Plan to meet internal and external customer requirements.

ii) Ensure delivery of quality products and services.

iii) Monitor, adjust, and review customer service

What kind of work will I have to undertake and complete?

This is an online learning course, which is different from learning in the traditional classroom. You

can work at your own pace, refer to your own past experiences and seek support, when needed.

Each time you read and complete a set of information, save that work and return to it, if you wish

to revise or review, at any time. Work through one module at a time. It will take time to adapt to

online learning, so be fair to yourself, and allow yourself time to get used to this new and exciting

way of developing your skills and knowledge!

How many modules are in this course?

There are three modules to be completed within this course. They are:

1. Plan to meet internal and external customer requirements

2. Ensure delivery of quality products and services

3. Monitor, adjust, and review customer service

How are the modules presented?

Each module will provide you with an introduction and overview of information. A range of

activities will be presented for you to undertake, and then review your progress. You will be able

to assess your own development throughout the three modules.

Once a module is completed, you will also have completed a range of self-assessment activities

that reflect on what you have learnt. This is useful in supporting you in preparing for the final

assessments.

How can I assess my progress in the Unit?

At the completion of each module, you will be able to self-assess your work against the activities

you have completed. Answers are provided to assist you in this regard. You may revisit this work

at any time throughout the course.

Your activity responses are for your own information and guidance, and are not assessable.



iii

What assessments do I need to submit?

At completion of the unit, you will be requested to complete and submit four pieces of evidence

for formal assessment. These will include:

Assessment item Description

1. Defining terms

Wherever possible, provide your own examples. All terms and phrases will have been included within the content of this unit. The assessor is looking at your level of understanding and interpretation of terms and applications within business.

2. Knowledge questions

Five specific questions are posed for which you are to respond. You will need to undertake your own research, as well as reflect on the unit content. This is to enable you to correctly define, respond and fully explain different concepts, models or applications. Remember, you can revisit your learning unit/activities at any time. The Assessor is looking for the correct use of terms, knowledge applied, and your ability to accurately interpret and respond to specific questions within the context of this unit.

3. Case study A situation/scenario will be presented, and you will be asked to respond and explain strategies for future actions. The case study will be relative to what you have learnt within this unit. Although some templates are available for you to use, you may prefer to design or use your own. The assessor is looking at how you would effectively manage a range of situations and apply problem-solving strategies.

4. Project You will be provided with information to complete a project that fully demonstrates your competence in this unit. Remember that assistance is available if you have any queries. The assessor is looking at your ability to read, interpret, and present a comprehensive outcome, thereby demonstrating your competence in this unit. The correct use of tools, resources, and templates relevant to this unit will be required.

5. Performance and Knowledge Evidence

Should the Assessor identify a requirement for additional evidence to attain competency in this unit, you will be required to complete the Performance and Evidence Form. This form is locked in My eCampus (grayed out) and will be released by your assessor should you be required to submit further evidence.

If the assessor decides it is needed to meet all criteria for this unit, you will need to select and provide evidence using one of the options shown below:

Options available for you to select:

1. Identify a Manager or Supervisor you have worked with for at least three months to complete the form provided. He or she should have had access to and have read through your Case Study and Project in this unit prior to completing this evidence form, OR

2. Identify a qualified Assessor who can observe and assess you and complete the provided form. He or she should have had access to and have read through your case study and project in this unit prior to completing this evidence form, OR

3. Agree and organise for a teleconference (or skype) meeting with an AIPT Technical Advisor who will ask you a range of questions about this unit. He or she should have had access to and have read through your case study and project in this unit prior to completing the evidence form, OR

4 Provide and attach copy of a resume or CV which clearly demonstrates your competence in this field (AIPT/Foundation Education reserve the right to contact any identified referee – with your permission, to confirm competence), OR

5 Any other arrangement which suits you that will provide a qualified confirmation of your competence in this field. The person who undertakes the assessment should have had access to, and have read through your Case Study and Project in this Unit, prior to completing this evidence form.



iv

When do I get assessed?

You will submit your assessments at the end of the unit. You can of course ask for help before or

during your studies if you wish. Please feel free to read through the assessments at any time.

How will I be scored/assessed?

The Assessor is looking for a demonstration of your competence in this unit. There are four

assessment items for each Unit. Each of the four assessment items must be assessed as

‘Satisfactory’. If any assessment item is assessed as ‘Not Yet Satisfactory’, this means that the

item does not meet the Unit standards/requirements. You will then be required to review and

resubmit the assessment item/s. The Assessor will provide comments for you for the purpose of

assisting in revising and reviewing your submission to meet Unit standards and criteria.

Professional AIPT assistance is also available for you, on request.

The final assessment outcome of the Unit will recognise you to be ‘Competent’. This can only be

confirmed when all four assessment items are assessed as "Satisfactory". You will not be deemed

"Competent", until all four assessment items are separately assessed as “Satisfactory". This is the

basis on which all vocational (work-based) training is assessed. Please note that neither scores

nor grades are issued to candidates within the competency-based assessment process.

How will I know the difference between learning activities and final assessments?

Within this Unit, you will be provided with the following presentations, in this order:

• General information – to read through, interpret and understand

• Activities – are formative learning activities, modelled on a self-assessment approach; answers will be provided automatically, on completion

• Final assessment tasks – are to be found in a separate resource; the Assessment area of eCampus.

Additional learning aids (subject to availability)

• eLibrary of templates and resources available for you to use

• Video clips to enhance your e-learning (subject to availability)

• Webinars can be organised (subject to availability and numbers)

• Online chat forums are encouraged (subject to availability).



v

What icons are used throughout the course?

We have included the following icons to identify the different work you are going to undertake:

Icons Icon type Description

Prescribed Reading Courses with prescribed readings require you to have access to a particular text for the duration of the course. This icon represents readings from this text.

Suggested Reading These are readings which will add depth and understanding to your course participation.

Definition These represent definitions of important terms relevant to this course.

Activity Activity to be completed, with answers being provided at completion. These activities are to be completed in My eCampus.

Reflection Reflections prompt you to think about certain subject matters. You are being encouraged to draw on your own personal experiences.

Tip Hints and tips to assist you in this subject area.

Video Videos to support the course content. Watch these short videos to learn more about the topics covered.

Web Internet web link to support course content and provide further reading or research opportunities

Learning objectives

AIPT is committed to, and continuously reviews, the design and development of their

contemporary eLearning tools and resources to support you, in your studies. However, availability

of resources will be subject to availability.



vi

Recommendation to make the best use of your time

We recommend that you attempt to complete at least one unit per month. A minimum of 12

hours per month should be set aside in a quiet area where there are minimum interruptions for

you. This time is YOUR investment in YOUR learning and, in YOUR success.

Great! I think we are ready to get started. Please work through and complete the following

checklist, to ensure you have the tools needed to get started.

To be successful within this Unit, we need you to demonstrate your competence. What does that

mean for you?

To be competent is to: Demonstrate your skills, knowledge and attributes for completing a

task/job to national standards.

Tip:

Read through and identify any area/s in which you may wish to undertake personal

research prior to commencing your studies.

Remember that AIPT has Technical Advisers who are available to work with you after you have

commenced your studies. When contacting them (preferably by email), list the key questions or

queries you have. By doing so, you will enable them to assist you in the best possible way.

Telephone appointments are also available! Their email address is [email protected].

Checklist for you to get started

Computer – full access to the Internet and Microsoft Office suite (Word, Excel and PowerPoint, at the very least)

Writing materials (pens, paper, ruler, rubber) – these are useful for note taking

Contact details for AIPT technical advisors – please refer to the Support area of eCampus (Subject Support)

Timeframes, to complete this Unit, written into diary/calendar – please refer to your personalised Study Plan

mailto:[email protected]



vii

So, let’s look at the ‘competencies’ that are to be demonstrated, within this Unit.

Pe

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rman

ce E

vid

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ce

Evidence of the ability to:

• Develop and manage organisational systems for quality customer service

• Develop and review plans, policies and procedures for delivering and monitoring quality customer service

• Implement policies and procedures to ensure quality customer service

• Solve complex customer complaints and system problems that lead to poor customer service

• Monitor and assist teams to meet customer service requirements

• Develop, procure and use human and physical resources to support quality customer service delivery.

Kn

ow

led

ge E

vid

en

ce

To complete the unit requirements safely and effectively, the individual must:

• Outline the legislative and regulatory context of the organisation relevant to customer service

• Describe organisational policy and procedures for customer service including handling customer complaints

• Identify service standards and best practice models

• Summarise public relations and product promotion

• Outline techniques for dealing with customers including customers with specific needs

• Explain techniques for solving complaints including the principles and techniques involved in the management and organisation of:

- Customer behaviour

- Customer needs research

- Customer relations

- Ongoing product and/or service quality

- Problem identification and resolution

- Quality customer service delivery

- Record keeping and management methods

- Strategies for monitoring, managing and introducing ways to improve customer service relationships

- Strategies to obtain customer feedback.



viii

Standards established to assess you

As you will learn over the course of this unit, to assess any performance requires that a minimal

standard or standards (or benchmark) be achieved. This is written into a Performance Criterion.

A Performance Criterion will clearly state WHAT is to be demonstrated for assessment to be

successful. The performance criteria for this unit are set by the Australian Qualifications

Framework (AQF).

Performance Criteria

1. Plan to meet internal and external customer requirements

1.1 Investigate, identify, assess, and include the needs of customers in planning processes

1.2 Ensure plans achieve the quality, time and cost specifications agreed with customers

2. Ensure delivery of quality products and services

2.1 Deliver products and services to customer specifications within organisation’s business plan

2.2 Monitor team performance to consistently meet the organisation’s quality and delivery standards

2.3 Help colleagues overcome difficulties in meeting customer service standards

3. Monitor, adjust and review customer service

3.1 Develop and use strategies to monitor progress in achieving product and/or service targets and standards

3.2 Develop and use strategies to obtain customer feedback to improve the provision of products and services

3.3 Develop, procure and use resources effectively to provide quality products and services to customers

3.4 Make decisions to overcome problems and to adapt customer services, products and service delivery in consultation with appropriate individuals and groups

3.5 Manage records, reports and recommendations within the organisation’s systems and processes



1

Module one: Plan to meet internal and external customer requirements

Section 1 – Customer needs planning process

Investigate, identify, assess, and include the needs of customers in planning processes

Reflection:

You are a customer, are you not? How do you think the establishment that you

custom meets your needs?

One of the keys to success for marketers is to try to

find ways in which they can differentiate from their

competitors in a global market. Using value-added

initiatives to drive customer retention can mean the

difference between increasing or decreasing their

share of the market.

Using customer-driven organisations is one way of

obtaining and retaining your competitiveness. This

means that the organisation must develop its

mission, vision, and all of its goals to ensure that they

meet and exceed customer expectations.

Video:

Watch this short video on understanding customer needs: You tube - understanding

customer needs

Customer-driven organisations are driven by customer service.

The measures of customer service are projected in all

organisational policy and procedures, including employees’ job

descriptions; goals at all levels, be they operational, tactical, or

strategic; and in both the organisation’s mission and vision

statements. It is also essential that all of your organisation’s

stakeholders be aware of what your organisation’s intentions

are.

https://www.youtube.com/watch?v=8LmaQaBMqd8

https://www.youtube.com/watch?v=8LmaQaBMqd8



2

It is essential that you not only identify what the

customer needs to purchase now but also what the

customer will need in the future. If service excellence

is what your organisation is aspiring to or has

achieved, then the excellence that the organisation

strives for or has attained will only be derived from

your ability to research the organisation’s systems,

services, and products continuously so that you can be

proactive in meeting the ever-changing needs of your

customer.

Who are your customers?

Before you can research your customers, it is imperative that you know who your customer is. In

most cases, your customers are the stakeholders of the organisation. There are two main types of

customers. If you do not keep up to date with who the customer is, you will not be able to

correctly research the market or identify the changing needs of the customer so that you can

change your systems, products, and/or services to meet the customer’s needs.

The two types of customer are internal and external customers.

A key factor in your research is your ability to identify the need

for change. You should then change before demand changes

rather than being reactive and waiting for the change to be

forced upon you. Your responsiveness to the market will have

an impact upon your ability to obtain a larger share of the

market. If you change your systems, products, and services

before the customer is aware of them, then the chance of them

remembering you increases because you may have the product

and/or service as they need them.



3

Internal customers

An internal customer is the person who works for the organisation. They can be a part of your

department or work in a completely different section, even in another country.

External customers

Anyone who does not work for the organisation is considered to be an external customer.

Examples of external customers may include:

• Clients or purchasers of services

• Members of the general public who make contact with the organisation, such as prospective purchasers of services

• Potential funding bodies

• Suppliers of goods and services and contractors providing goods and services

Examples of internal customers may include:

Colleagues, peers, and fellow frontline managers

Supervisors

Board members

An internal customer “is anyone you count upon to complete a task or a function to provide you

with information so that you can get your job done…and anyone who counts on you to complete

a task or function or to provide them with information so that they can get their job done.”



4

Internal and external customers should expect the same standards. Internal customers need to

be provided with a culture that supports their needs, thereby providing them with clear policies

and procedures that align with a Customer Service Charter.

To ensure that an open communication environment towards customer service excellence is

maintained throughout the whole organisation, you weaken any tendency for territorial walls by

means of the following:

Never lose sight of the customer because they should

always come first. It is important to make sure that you

are aware of the customer’s differing needs. In turn, you

can ensure that your team has the ability to develop their

product knowledge and maintain the policies and

procedures of the organisation.

Customer’s requirements

Before considering the theory requirements about establishing customer needs, watch this video

on leadership and providing products and service to our customers:

Video:

Before considering the theory requirements about establishing customer needs,

watch this video on leadership and providing products and service to our customers: Ted - how

great leaders inspire action

• Creating an environment to ensure that information is shared. Staff newsletters, meetings, and clear goals will assist staff in not building walls to protect themselves. All staff should be aiming at working together in order to meet the same goal.

• Practising pro-active information sharing. As an extension of information-sharing above, offer information to team members. Give them the information that they require in the performance of their jobs.

• Create or contribute to an environment in which information is shared freely and walls are not built. Teach your staff to realise that the sharing of information makes their job easy. Reward employees who freely share information and do not build walls. Rewards could include giving staff pats on the back, letters of congratulation, lunches, and bonuses as an acknowledgement for their open information-sharing behaviour.

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action



5

Your customer’s requirements will vary, so it is important that all of the information that you

provide them with is:

• Accurate: If you do not know the answer, do not lie, for the customer will know. If you have face-to-face interaction with the customer, ask another team member to assist you. If you are responding to a telephone enquiry, ask the customer if you can ring them back. If the customer does not assent, ask another member of your team for assistance.

• Responsive: Customers might make a complaint or a suggestion. Do not take it as a criticism; they have a right to an opinion. Consider their feedback, and see it as a way to improve. Customers will complain for many reasons. For example, they may not be happy with a product that you have sold them.

• Specific and clear: When providing either advice or giving general information, make sure that you answer the question. Be clear and concise. You may even obtain special requests. Consult with members of your team if you need to clarify information.

Once you are clear on the needs of the customer, it is

important to consider the type of customer that will be

purchasing products from you. Remember that a customer

comes into your business because you can provide them with

a product or service that they require. By providing them with

quality service, you help ensure that they remember you. This

will increase the chance that your organisation will have a

competitive advantage because of return business.

To maintain a competitive advantage, it is important to be

proactive. As a manager, you ought to practise what you

preach. Do not say that you support a customer-driven

approach if you are not going to follow it up with actions that

demonstrate your support.

Accurate

Responsive

Specific and clear

Information



6

Reflection:

What would need to change to provide better service? What will I need to consider?

Change has always been associated with job terminations.

Employees need to learn that, to remain competitive, their

organisation has to change and adapt to the changing needs of

the customer.

You need to ensure that your culture has processes, systems,

policies, and procedures in place that are adaptable to change.

Today’s globalised economy is forever changing. To remain

competitive, organisations cannot have a rigid culture. Your

employees need to feel that they have the support required to

evolve. They need to know that you will listen to them.

Your employees are the front of your business. Their

professionalism, knowledge, skills, and actions should

convey a positive image. For this reason, you need to give

them the confidence to change as required to suit the

needs of the customer within the procedures set for them.

If you can provide this support structure, your employees

should be more willing to be innovative.

Employees can only be responsive to the customer’s needs

if they can identify them. Train your staff on your products

and services. They also need to know what the customer

expects of them and how they are supposed to supply it.

Many organisations have failed because of a lack of

communication. If your organisation does not have clear

procedures and focus, it cannot then be customer driven.

Each member of your team must be a part of the

communication process. This is about sharing information

so that the needs both of the organisation and of the

customer are met.

Communication is integral to customer service. If your team

cannot communicate, then there are no customers, no

organisation, and thus no income to survive. In order to

survive, we must learn to satisfy customers’ needs and make sure that we are giving them what

they want.

A customer has four basic needs:



7

The success of the business will depend upon how well your organisation and the team meet their

needs. To find out the needs of the customer, you need to use research.

Needs of the customer

Once you have identified the types of customers that you have, you need to make sure that you

know:

1. The Market

Your customer will determine the product, the service, the quality of the

product, and the types of products that they are prepared to purchase.

If your organisation tries to do this, you will lose customers as they will

only buy according to their own needs and not what your organisation

thinks they need.

Globalisation and the Internet have led to an informed customer. This

means that the customer knows what they want and what they need.

As customers will only buy what they want and need, you will then lose

Customers need to know that they are

understood. Use clear emotions and body language to convey

that gives the impression you

understand them.

To be understood

Customers want to feel welcome. Let them see that you are happy to

see them and that their business is important

to you.

To feel welcome

You should do anything that you can to let the customer feel special.

If they feel special, they will stay to hear what

you have to say.

To feel important

The customer needs to feel comfortable with

their surroundings and comfortable with the people around them.

For comfort

4. Target marketing

3. The marketing

mix

2. How to gather

information

1. The market



8

your profit margin if you cannot meet their expectations because they will go to your

competitors.

2. How to gather information

There are two types of customer: the internal customer and

the external customer. The problem with this is that you do

not know what part of the market your customer belongs to.

If you do not have a part of the market that is specifically your

customer, you are selling to the mass market. Mass marketing

treats the market as a homogenous group, thereby offering

the same marketing mix to all customers.

3. The marketing mix

This is otherwise known as the 5 Ps because it includes the price of the product, the place of your

product, the product itself, its packaging, and the promotion of that product.

For example, there are soft drinks that are the same price. They are promoted in a similar way,

taking into consideration the culture where it is being sold, with the same packaging and taste

sold all over the world. Conversely, there are products that are aimed at a specific section of the

market.

Price

Place

ProductPromotion

Packaging



9

This section, otherwise known as the market segment, allows you to explore your customer base

in order to determine the best way to promote your products. Market segmentations “[are] the

identification of portions of the market that are different from one another. Segmentation allows

the firm to better satisfy the needs of its potential customer”.

4. Target marketing

Unlike mass marketing, target marketing recognises

that customers are not homogenous but rather

diverse. The organisation should not try to please

them all by offering the same product; instead, it

should offer products according to the segment/s of

the market that they sell to and the needs of the

customers within that segment of the market.

As part of identifying the segment or segments of the market that the organisation has, you

should evaluate the requirements of the segments of the market according to the needs. These

needs are broken down into the following criteria:

Good market segmentation will offer products and/or services as similar as possible within the

segments and as different as possible between the segments.

Accessible:

•Can your organisation reach the customer through communication and by using the channels of distribution?

Durable:

•To save on costs, try to ensure that your segments of the market are stable.

Identifiable:

•What attributes do your customers buy that are measurable so that they can be identified?

Unique needs:

•To justify the products that you sell, the segments must respond differently to the different marketing mixes.

Substantial:

•Are the segments that the organisation sells to large enough to support the resources that are required to target them?



10

Bases for segmentation in consumer markets

Consumers can be segmented by the following customer characteristics:

Behaviouristic Segmentation

This is based on the customer’s behaviour towards products, such as:

• What benefits they seek in buying the product and/or service, e.g. women buy make-up in order to look and feel good about themselves.

• Usage rate, e.g. if a customer is going to use a product a lot, they will probably be prepared to pay more for a quality product that will last longer.

• Brand loyalty, e.g. you may have grown up using Colgate toothpaste. You would not buy another brand.

• User status, such as potential, first time, regular, etc.

• Readiness to buy, e.g. some customers will purchase a product straight away whereas other customers may need to shop around and check out the market before buying a product.

• Occasions, such as holidays and other events that stimulate purchasing.

Demographic Segmentation

This relates to the following variables:

• Age – Older customers have usually brought their children up and watched them leave the family nest. They will usually have more disposable income than a young couple with new children.

• Gender, i.e. female, male, or other

• Family size – the amount of children that are in the family

• Family life situation – The individual could be a bachelor, married with no children, married with two or three young children, etc.

• Generation, i.e. Baby boomer, Generation X, etc.

Behaviouristic segmentation

Demographic segmentation

Geographic segmentation

Psychographic segmentation



11

• Income – How much do they earn? Can they afford to buy the product?

• Occupation – White or blue-collared worker and the differences in their needs

• Education – Knowledge will have an impact on the products that a customer purchases

• Ethnicity, i.e. ethnic traits, background, and affiliations

• Nationality – Where the customer was born, their political affiliations, and their traditions

• Religion – Beliefs will sometimes have an impact on what the customer purchases. For example, Muslims observing Islamic law can only eat certain foods that are killed and prepared in a specific way (Halal). Any other food is called Haraam.

• Socio-economic status, i.e. what income the customer has and what their background is

Geographic Segmentation

• Climate, i.e. weather patterns of the area

• Population density, be it urban, suburban, or rural

• Region, by continent, state, country, or neighbourhood

• Size of the area, i.e. the size of the population in the area

Psychographic Segmentation

This relates to the lifestyle of the customer:

• Activities: What activities does the customer enjoy? i.e. hobbies

• Interests: What are the interests of the client, and do they need your product and/or service?

• Opinions: How much are they prepared to spend on the product?

• Attitudes: What are the client’s likes or dislikes?

• Values: Ethical values, political and religious beliefs

Psychographic variables are primarily psychological in nature.

By knowing and researching the segment of the market that purchases

products and/or services from you, you will be able to target your

marketing to them. This will allow you to improve the quality of your

service in that you will know what the customer needs and how to give

them greater satisfaction. This in turn provides a higher level of customer loyalty, thereby leading

to a greater retention of customers.

Video:

Please use this link for market research: https://www.business.qld.gov.au/starting-

business/planning/market-customer-research/researching-customers/customer-needs

Watch this informative video on different consumer markets: You tube - consumer markets

https://www.business.qld.gov.au/starting-business/planning/market-customer-research/researching-customers/customer-needs

https://www.business.qld.gov.au/starting-business/planning/market-customer-research/researching-customers/customer-needs

https://www.youtube.com/watch?v=hVWjXwWlKsk



12

Types of Data Collection Methods

There are two types of data collection:

Primary Data Collection

This is information collected specifically for the investigation at hand. This form of data collection

occurs when information about the purpose of the study is not readily available.

Secondary Data Collection

This can be obtained through company records, archives, government publications, and industry

analysis offered by the media.

The information gathered from these collection methods can then be transformed into qualitative

and quantitative data.

Primary data collection

Secondarydata

collection

1. Qualitative data - Is descriptive and takes shape in the form of words, sounds, visual images, or objects.

2. Quantitative data - Is information in the form of numbers.



13

The type of data collection method that you use will be determined by the type of information

that your business is trying to gather.

Information that may be relevant to keep you up to date includes:

When you gather data, it is important that you analyse it so as to identify:

Data is collected in order to provide you with the information that you need. Data keeps you in

touch with the market and the changing needs of the

customer. The customer feedback process and their input

will assist you in planning, analysing, and monitoring the

market so that you can remain competitive.

Ensure that the information is correct and not an

assumption. Always ask the customer questions; do not

assume that you know their needs. Talk to the customer

before making a final decision on the product and/or

service that you are going to either introduce or phase out.

For this, you need reliable information that comes from the

customer.

Video:

Here is a great video that shows you an example of how companies are using

customer data through our shopping habits: https://blog.hubspot.com/marketing/marketing-

personalization-examples

The products that the

customer buys

When the customer purchases

the product

The attitude of the

customer in regard to

your product range

Whether the appropriate

target market is

purchasing the desired

product

The changing needs of the

customer

The changes in what the customer

determines is quality

customer service

Any new opportunities and markets

The need for change

Change in buying trends

https://blog.hubspot.com/marketing/marketing-personalization-examples

https://blog.hubspot.com/marketing/marketing-personalization-examples



14

The stakeholders

Stakeholders in your business include:

Employees and shareholders alike are dependent on the success of the business for income or

profit. If the business is unable to offer quality products, services, or pricing and is unable to

reach the target market, then profits will not be made, and employees may be at risk of losing

their jobs.

In turn, if staff are not satisfied with their work environment, absenteeism will increase. As a

result of this absenteeism, standards will fall. This means that turnover and risk of injury will

increase, and workplace disruption will cause customers to go to other businesses that can meet

their needs and expectations.

Tip:

Remember that performance is reflected in the satisfaction that employees feel with

their job. If performance suffers, so too does the level of customer service that the customer

receives.

1. Shareholders

• Owners in the business

2. Stakeholders

• Personnel who have an interest in the product and/or service development and who have an interest in the business’s processes and systems

3. Customers

• Those buy the product and/or service



15

Make sure that all interest groups are aware of your expectations that come from the customers’

expectations.

This is a supply chain. If any communication is misinterpreted within the supply chain, or if there

is any problem with the supply chain, the customer will not receive what they want.

Each step in the supply chain is a step towards the needs of each party and thus everyone in the

supply chain process.

For example, your customer shows an interest in a new product that your main supplier supplies.

However, when you make an order, you find that the supplier has produced two different

products. Not wanting to appear unprofessional, you assume the product that the customer

wanted. When the product arrives, you contact the customer. When they come into the store,

you find that you have actually purchased the wrong product.

In this process, you:

Customer feedback

Retail operations

Supplier input

Wholesaler

Retail operations

1. Made an incorrect assumption

2. Gave the supplier incorrect information

3. Did not meet the customer’s needs. In fact, they came in to the business to purchase the product. How would you feel if you had gone to a store to purchase something only to find that the store had ordered the wrong product? You would not be very happy.



16

Ensure that plans achieve the quality, time, and cost

specifications agreed with customers.

No matter what type of business you operate, the

customer is there for a reason. It may be because they

are happy with the quality of your service, the quality

of your product, the price, or the product itself. It

could be because of where your business is, what your

business says about the customer, and what the needs

of the customer are.

Video:

Watch this video on adding value: You tube - adding value

A good manager makes sure that staff can

make a connection between their level of

service and customer retention. In turn, the

level of service and return of customers will

have an impact on the organisation’s income.

Managers need to assist their staff in making

the link between their actions and customer

satisfaction.

When your team members understand these

connections, staff will have more opportunity

to understand that the more that they strive

to meet the customer’s needs and

expectations, the more products and/or

services they will sell and the higher the

chance of the customer returning.

The success of businesses relies in their ability

to add value to the customer’s experience.

Value added selling is a series of creative

improvements that will enhance the

customer’s experience.

https://www.youtube.com/watch?v=9I2baWR-rqg



17

For example, a customer enters a beauty business for a facial.

Whilst waiting for a product to work into the pores of the

customer’s skin, the beautician gives the customer a partial arm

massage. This has added to the quality of the customer’s

experience. Not customer’s expectations were not only met by

the beautician, they were exceeded.

As demonstrated by this example, value added selling is derived

from intangibles, such as the quality of the service. Care should

be taken to make sure that, in value-added selling, the

customer does not feel like they have been deceived. In such a

case, the customer will go somewhere else.

The use of value adding is a key to saving both costs and time. If you seek to enhance the

customer’s experience, you can for example take actions such as responding to and resolving

complaints as soon as possible. This will save not only time but also in costs whereby you are not

spending extra time resolving the complaint.

The key to a successful customer/sales relationship is

the ability of a business to differentiate their services

from their competitors and to build on the emotional

loyalty of thorough value.

For example, your car breaks down and is towed and

repaired by the mechanic. The mechanic guarantees

that he checked the car’s system when it was repaired.

Two days later, the car breaks down again. Apparently,

a hose cracked wide open from wear and tear. Based

on the guarantee, you assumed that the minor water

leak had been repaired by the mechanic’s guarantee.

Manning and Reece in Selling Today: Creating Customer Value (p.366) write that organisations

that develop a reputation for servicing each sale is sought by customers who want a long-term

partner to help them with their buying needs.

Satisfied customers represent an auxiliary sales force. This

is a group who recommend customer-driven businesses to

others. If your customer is happy with your level of service,

they will tell others about it. Research shows that, when a

customer has a good customer service experience, they will

tell at least six people. However, if they have an

outstanding experience, they will tell twice as many.

It is important for managers to provide support and foster

customer relationships between the customer and the staff.

This relationship must be built within the policies and

procedures of the organisation. Managers must make sure that information flows freely through

the organisation so that a customer-focused workplace culture can be developed and supported.



18

The following module will examine delivery of customer service.

Activity 1: Customers and their needs

You have read through the requirements for preparing for meetings.

This activity requires you to consider the key concepts.

Read through the following terms and descriptions, and select whether they are

‘True’ or ‘False’. Then, read our correct response in order to assess the response

you gave.

Log onto My eCampus to complete this activity



19

Module two: Ensure delivery of quality products and services

Section 1 – Customer specifications

Deliver products and services to customer specifications within organisation’s business plan

Every customer has needs, wants, and expectations. This means that the customer:

A customer’s wants are higher than needs whereas expectations are what the customer believes

they should be receiving. For example, you need to buy a car. A car that will allow you to move

from Point A to Point B will be enough to satisfy you. You would like to buy a new car, but your

cash flow is low, so you would not be able to afford the car that you would like.

Satisfaction is measured by the customer as based on the level of expectations that they have.

This satisfaction is supported by the information that you give the customer.

Customers like to make informed decisions about their choices and

the products that you have. Make sure that the customer is supplied

with the information that they need in order to make that decision.

The closer they come to their expectations, the greater their

satisfaction will be. In turn, the satisfaction of the customer will be

reflected by their return to your organisation to purchase more

products and/or services.

Reflection:

Before continuing on the path of delivering a product/service to customer

specifications according to the business plan, let us look at the business plan. What is

it, and what does it do?

1. Specifically requires what they need

2. Wants what they would like

3. Purchases what they

perceive is a good price and

meets their expectations



20

Business plan

A business plan is about results. The contents of the business plan must match your purpose. A

business plan aims at assisting the business in looking

ahead, allocating resources, focusing on key points,

and preparing for problems and opportunities. For

example, as a part of meeting the organisation’s

needs, you arrange for staff to be trained in the skills

that are required to meet the changing needs of the

customer.

As the purpose for developing a business plan is to

have a successful business, it is important that you

have a complete understanding of your organisation,

the products and/or services offered, the pricing and

sales information, your strengths and weaknesses in

comparison to your competitors, where the

organisation now is, and where would they want to

be in the future. Every aspect on the business plan

needs to reflect customer service information, such as

what the organisation’s strengths and weaknesses are against the customer’s own.

Once all of the information about the business plan has been analysed, the organisation will be

able to use this information to develop a vision, mission, goals and objective, processes, systems

and policies and procedures on driving customer service.

As such, your team should be in a position where they will know the main segments of the market

they mainly service. This will enable them to answer at the very least the following questions:

Customer service activities should be aimed at staff and team members actively participating in

the sale or enhancement of the sale.

Service starts at the first contact and only ends when the customer stops coming to you. Service

is an essential part of meeting the customer’s needs. If the customer is treated with courtesy and

respect, they are more likely to return to you than if you were to treat them with disrespect or lie

to them.

Does the product have the ability to meet my needs?

Am I happy with the product/service?

Am I receiving the value for service I want?



21

Video:

Watch this video on Implementing Customer Service Strategy: You tube - customer

service strategy

Monitor team performance to meet quality and delivery standards

Successful business management lies in your ability to monitor the team’s performance in order

to generate enough data by which to judge the success or otherwise of specific strategies. Three

areas in which a professional firm can have commercial and professional success and needs

performance indicators are:

1. Measuring financial performance and business development

2. The views of the customers in the delivery and provision of products and/or services

3. Personal views about all aspects of personnel in regard to their professional relationship with the firm

Since customer service ends when the customer stops

coming to you, it is important to make sure that your

staff keep meeting and exceeding their expectations.

To this point we, meeting and exceeding customers’ expectations has been discussed. Next shall

be discussed the importance of making sure that the customer is always presented with

consistency.

The business plan shows the organisation the correct path that they

should take to differentiate their quality and delivery standards.

Policies and procedures present the quality and delivery standards

that your staff should maintain. In turn, it is imperative to monitor

the consistency of the quality delivery standards so that customer

expectations are met and therefore retained. Monitoring will assist

you in identifying problems with the level of service and addressing

the problems or weaknesses identified.

https://www.youtube.com/watch?v=s4IOWJ_2N2Y




22

There is a number of standards that you can monitor. For example, the areas in which team

members will obtain benefit from monitoring include:

These standards can be measured for consistency against sales, customer feedback, and customer

retention.

Along with sales, it is essential that customer service also be monitored from the moment the

customer enters or contacts the business. Staff must be familiar with the organisation’s

procedures so that customer service is measured for consistency.

In order to achieve this consistent customer service, questions that you could ask include:

Consistency of sales

Consistency of returning customers

Customer loyalty

Consistent Customer

Service

What impression do staff members portray?

Do staff members consistently use value adding, relationships, and innovation to improve service?

Do staff member demonstrate an understanding of the customer/customer service relationship, including the buying choices and behaviour of the customers?



23

How can these be measured?

Staff can be monitored to see whether they demonstrate the skills that the customer expects

from them. The skills will vary from organisation to organisation and can include demonstrating:

Take this example. Frank wanted to update his computer. He wanted a computer that was faster

and could meet his needs. Sam, the customer service representative, listened to Frank’s

requirements and started presenting the appropriate computer. During their discussion, Frank let

Sam know that he wanted to store and refine his personal photos.

One of the computers came with a copy of Photo Shop on it.

Frank left the store with the computer that met his needs.

His expectations were exceeded as he was given the means

to refine and place his photos in electronic albums.

Each sale that you make turns into a financial measurement.

Financial measurements alone are not sufficient. It is

important to understand why the variation arose. Your

employees’ interaction with the customer as well as the

feedback from the customer can assist you in identifying

changing demand.

Understanding value adding, relationships, and innovation can assist you in identifying possible

innovation opportunities that will not only be innovative but will also add to the loyalty of the

customer. This will in turn assist you in measuring, analysing, and improving performance.

Sound product knowledge:

•Does the staff member answer the customer’s questions correctly and in a professional manner?

Sound listening skills:

•Does the staff member demonstrate the ability to listen to what the customer requires? Do they use the correct questions to demonstrate that they are listening? Do they paraphrase and summarise what the customer is saying in order to demonstrate that they are listening to the customer’s requests correctly?

The identification of the customer’s hidden needs:

•There are times in which a customer has an idea of what specifications they want in a product. They may have identified their initial needs, but due to lack of product knowledge, they may not know other needs that they have.



24

Understanding the customer/business relationship

To understand customer and business relationships, it is

important to understand how innovation can impact your

organisation. We are now in the Information Age. Before

this age was the Industrial Age. As knowledge and

schools of thought were introduced to business, business

practices became less rigorous and more flexible with the

changing demand of customers.

This figure gives you a snap shot of both ages:

Increase relationship marketing and selling

The Information Age has generated a more knowledgeable

customer. This customer knows what they want and, in most

instances, they will accept nothing less. Customers are taking

more control of their own destiny and as such require a more

personal investment to ensure that they obtain their

requirements and needs.

Success in understanding the customer/business relationship is

derived from value adding and building cultures of quality

service excellence.

Industrial Economy (1860 – 1960)

• Major advances occur in manufacturing and transportation

• Strategic resources are capital and natural resources

• Business is defined by its products and factories

• Sales success depends on meeting sales quotas

Information Economy (1960 – 2020)

• Major occurrences occur in information technology

• Strategic resource is information

• Business is defined by customer relationships



25

Value adding, relationships, and innovation

Innovation is the development on a new idea or a new innovation.

Innovation is looking at different ways to improve your job whilst

retaining the same standards in the quality of your output.

Innovation plays a huge role in your workplace.

Innovative work practices can be put in place to increase your

output by finding better and newer ways of doing things at work.

Some innovations come from the identification of a problem. Other

innovations are simply ideas that people have about how to increase

productivity.

Selling relationships can be built on the value that the customer

derives from the products and/or services that you sell. Successful

relationships and customer loyalty can be initiated through value

adding. To obtain a competitive edge, it is important to be creative

and innovative.

Value adding and innovation can include:

1. Adding more to the products and/or services that

are sold by the business

•Products and/or services in this instance do not have to cost anything. It is the thought that counts. Even if you provide them with a sample product or introductory trial, the customer will remember the value offered by your business.

2. Offering complementary importance items each time

a purchase is made

•If you know that a customer is going to purchase a product, you may offer them the product before they buy it. It gives the customer an opportunity to buy the product, and they will remember the offer you made. This saves them from shopping around for the items.

3. Send acknowledgements during the holiday period

•A Christmas or birthday card that is personalised with a discount voucher reinforces the fact that the customer is important to you

4. Aim for free publicity

•Anything new is interesting. If you have any interesting information that you think a magazine would be interested in, then draft a press release, and send it to them.

5. Crossovers with other companies

•This means that you can form agreements whereby each organisation offers each other assistance in advertising their businesses. For example, if a potential customer has a meal at a local restaurant, they may be given a voucher to use at your store.



26

The loyal customer

Customers become committed to the seller when they obtain

satisfaction from them. When your business aims at obtaining

loyal customers, they need to ensure that customer levels are

maintained. The customer needs to feel like they have a good

relationship with the business. The customer will usually form

a committed relationship with the business based on the fact

that the customer is gaining some benefit from the business in

terms of high-quality service and uniqueness.

Video:

Watch this video about customer loyalty: You tube - customer loyalty

The aim is to find ways in which

customers can be drawn to the

business or even be drawn back to the

business. The loyalty of your

customers is a hard thing to build.

Innovative ideas will assist the

customer in remembering the business.

https://www.youtube.com/watch?v=C1jt6xvISqw



27

Help colleagues overcome difficulties in meeting customer service standards

Once you have identified any difficulties that staff members may have in the level of the service

standards, it is important to overcome them by

providing training, such as coaching or mentoring.

Mentoring and coaching both aim to enable staff to

reach their full potential.

The aim of coaching is to provide a coach who will

focus on an existing problem until an outcome is

achieved. Conversely, a mentor lets an individual

learn from an older and more experienced

colleague who can pass on their knowledge and

experience so as to help their colleague identify

new opportunities.

The type of difficulty that the member of staff has will help

determine whether they will have a coach or mentor. For

example, if the staff member has difficulty with the level of

customer service they offer, they will probably be assigned a

coach until they can overcome their problem. On the other hand,

a mentor may be chosen should the staff member fail to identify

opportunities for improvement.

In both cases, the problems with each member of staff could have

been measured from customer feedback. Even though the

problems seem similar, they will need different approaches to

ensure that the desired future outcome is received.

For example, the mentor could provide the staff member with a

basic understanding about changing trends and the need to remain competitive to ensure that

they have a job in the future. Staff members need to know what is in it for them and that they

will receive the support that they require.

Lack of performance can be derived from many areas.

Your staff member may know the skills that they

need, but they may not know how to implement

them. On the other hand, they may just be lazy and

need that extra support and feedback to motivate

them.

Notice that, in both cases, the member of staff

needed to be motivated. The mentor needed to use

their experience to explain the importance of

innovation to motivate the staff member whereas the

feedback was needed to motivate the staff member

under the coach.



28

Video:

Watch these videos on Implementing Customer Service Strategy:

5 keys customer service part 1



The following section will look at overcoming problems in service delivery.

Activity 2: Value adding and innovation

Being able to develop an effective plan for customer service requires

knowledge in adding value and innovation.

Consider each of the following examples, and drag and drop them into the correct

response.


https://www.youtube.com/watch?v=P5RtBRc0X3g


https://www.youtube.com/watch?v=On5Xvd12zh0



29

Module three: Monitor, adjust, and review customer service

Section 1 – Monitor progress of service targets and standards

Develop and use strategies to monitor progress in achieving product and/or service targets and

standards

Any innovation in a customer-driven organisation needs

to be geared towards offering new products and/or

services that will meet the needs and expectations of

customers. It is important to monitor changes in demand

within your organisation. When you monitor customer

service, you need to know why customers return or leave

your business. This in turn means that you will be able to

measure whether the level of service offered to the

customer is sufficient. In short, you need to know why

the customer does not return to the business and why

another returns.

Monitoring is the process of identifying changes to

customer behaviour and identifying why these changes

occurred. Customer behaviour can be either positive or

negative. For example, if one of your product lines is no longer in vogue, the customer will no

longer buy it. Conversely, technological innovation will decrease demand for a product. Trends

change. To stay ahead of your competitors, you need to have the ability to identify the need to

change and change before your competitors.

Survival in a globalised economy stems from an organisation making a link between the

relationship between profits, customer satisfaction and employment. For example:

1. The customer is not satisfied with the service they were given

2. The customer does not return to the business

3. There is a loss in revenue

4. No revenue, no employment



30

The process of monitoring measures the current situation

and the future desired situation. For example, the goal of

the business is to increase sales. However, there has been

a decrease in sales. As a manager, your question will be:

What is the cause of the decrease in sales?

The cause of the decrease can include many variables

including:

1. There has been a change in customer demand

2. The needs and expectations of the customer have changed

3. The level of service from staff has fallen

4. The quality of the product has changed, so the customer does not wish to buy it anymore

Tip:

As a manager, your job is not to assume that you know the cause of the decrease.

Rather, your job is to monitor and identify the actual cause of the decrease. In short,

you cannot put a band aid on the wound until you see how big it is.

When you gather information, you must know what it is that you are measuring. The question is

what is the cause of the decrease? The strategies that you should consider include:

• Databases and other controls to record and compare data over time

What records does your organisation keep? Historical records are a record of the previous years’ sales, and they can assist you in identifying whether there has been a change in demand. If there is a seasonal trend where the customer automatically buys less, i.e. suntan lotion in winter, then the cause of the change may not be internal but rather an automatic part of customer demand.

If you compare the historical data with this year, you may find that sales have actually increased.

• Electronic feedback mechanisms using intranet, Internet, and email

Does your organisation have an electronic feedback process? Check it to see whether you can identify the cause of the change. Customers may for example identify that a change in a raw material may make the product more prone to breaking. If this is the case, you should talk to your supplier to see whether you can rectify the problem.



31

• Feedback forms and other devices to enable communication from customers

Feedback can be either formal or informal, so do not rely wholly on formal feedback. The questions that the forms ask may not help identify a problem. A casual observation from a customer may assist you in getting to the crux of the problem. These methods will be discussed in more detail further on.

• Short-term or long-term plans for monitoring achievement and evaluating effectiveness

Review these plans as they may not be realistic. For example, if your organisation is in an industry where your competitor has a major share of the market, it may be hard for you to increase sales in the product. If you are up against customer loyalty, you may find that the customer will not even enter your business.

• Policies and procedures

What changes have occurred in policies and procedures? There are times when your organisation will make a change in procedures and the change may not work. For example, the customer service techniques used by one organisation that were meant to appeal to the younger generation did not work. Instead, the product and the organisation’s customer service techniques appealed to baby boomers.

• Questionnaires, survey, and interviews

They provide formal feedback so that the concerns of the organisation can be addressed.

Suggested reading:

Read this very interesting blog on Customer Feedback Surveys: Help scout -

customer feedback surveys

For some example surveys, visit this site: Qualtrics - example surveys

Search customer service surveys on Google. You will find hundreds of online options for creating surveys, such as surveymonkey.com and getfeedback.com

http://www.helpscout.net/blog/customer-survey/

http://www.helpscout.net/blog/customer-survey/

http://www.qualtrics.com/blog/customer-satisfaction-survey-questions/



32

• Training and development activities

Monitoring training and development activities will assist you in determining whether the training is working.

Another way in which you can monitor the

organisation is through the feedback process. By

targeting and measuring your feedback, you can

ensure that you obtain the feedback that you need in

order to be meeting your goals.

Video:

Watch this video on Training Evaluation: You tube - training evaluation

Section 2 – Obtain customer feedback to improve products and services

Develop and use strategies to obtain customer feedback in order to improve the provision of

products and/or services

What is quality measured against?

Quality can be measured in several ways. You may not necessarily need to contact the customer.

When a survey is being designed, it is important to ensure that the questions that you ask relate

to information that the recipient will be able to answer. In an earlier chapter, we discussed how

data collection can be either primary or secondary. This data can then be broken down into

formal and informal collection methods.

Quality can be

measured against:

1. Sales

2. Customer feedback

3. Suppliers

4. Wholesalers

5. Managers

6. Workers

7. Any other stakeholder

https://www.youtube.com/watch?v=H1kxJi7AEVA



33

Collection methods

Informal data collection is when data is collected casually. You may have a conversation with a

customer at which point they could highlight some areas in which they are not satisfied with

service or how their preferences are changing.

Informal collection methods include:

• Observation

Observation is an excellent way in which to collect information that is based on the actions and reactions of customers and staff in their natural settings. For example, a customer’s body language can indicate when they are not comfortable. You may identify that staff members are not comfortable with the way in which they are working.

Observation can also reinforce your confidence in the team. For example, if the staff member is competent that they are comfortable forming relationships with customers and are proficient in completing their tasks.

Formal collection methods:

Formal collection methods are methods prepared with set questions. The aim of a formal

collection method is to obtain specific information. One form of collection method is telephone

interviews.

• Telephone interviews

Telephone interviews are a source of primary data collection. The information that you gather can be used for quantitative or qualitative studies.

Telephone interviews are popular in Australia because over 95 % of the population can be reached by telephone. Neuman (2003, p.289) estimates that a staff of interviewers “can interview 1,500 people across a nation over a few days and, with several call backs, response rates can reach 90 per cent.”

Telephone interviews are flexible, and they have the advantages of face-to-face interviews

but for about half the cost. Interviewers control the sequence of the questions and can use some probes.

There are however several disadvantages to telephone interviews, including costs and limited interview lengths. Costs can be minimised by reduced long-distance telephone rates. You may telephone customers at inconvenient times.



34

There are numerous methods in which to collect information. They include:

Care should be taken when you undertake any research. Too many surveys may scare the

customer away. In such instances, information can become biased, and the validity and reliability

of the feedback may come under question.

When you obtain feedback, you should also aim at trying to define

the customer’s definition of quality. Remember not to assume that

you know what the customer wants. Instead, confirm with them

what they want. Quality is influenced by the perception of the

customer irrespective of whether they are an internal or external

customer.

Problems with products/services need to be measured out of the

responses obtained when you collected data. When you collect

data, it is important to ensure that the information is collated into

a collection format that the end user will be able to read and

understand. This means that you may need to use software

programs to make the information user friendly. Hardware is also necessary to print and scan

information so as to suit the purpose of the audience.

Collection methods

Direct contact

Benchmarking against

competitors

Focus groups

Market research

Activity 3: Monitoring and reviewing customer service

Being able to monitor and review customer service will ensure you

understand why your customers stay or leave.

Consider the each of the examples and drag and drop the correct ones.




35

The following section will look at using resources effectively in service delivery.

Section 3 – Use resources effectively to provide quality products and customer service

Develop, procure, and use resources effectively in order to provide quality products and/or

services to customers

No matter how well laid out your business plans are, they will not work if you do not have

sufficient resources to see them into fruition.

Resources

There are three main types of resources found in business. They are:

1. Financial Resources

Financial resources are resources that are or will

become available for spending. Finance can include

cash balances; bank overdrafts; shareholders; working

capital, such as stocks; and debtors, who are already

invested in the business. Finance can also include

creditors, such as suppliers and the government.

For example, if the business wishes to open a new

store, then the business will need to invest in new staff,

the site of the store, training, and new products. Such a

strategy would put a strain on the organisation, so the

organisation’s finances will need to be managed

carefully.

3. Capital resources

2. Human resources

1. Financial resources



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2. Human Resources

Human resources are your workers, the individuals who are

part of your business. Human resources seek to achieve

positive outcomes. By aligning the skills and qualifications of

potential staff against the needs of the organisation, human

resource professionals can assist the organisation in achieving

a maximum return on investment by meeting the

organisation’s goals both now and in the future as a way of

ensuring the longer-term survival of the organisation.

Human resources include:

• People, who are the skill base of the business. There need to be sufficient staff to ensure that the organisation operates efficiently. They need to have the skills, knowledge, and experience that is required to ensure that the business keeps operating to meet its goals and objective.

• Information, which is the asset that employees bring to the organisation. It can be the knowledge and experience that employees bring to the business or learn either during their employment or outside of the business. This information will in turn assist in determining the appropriate remuneration for staff members.

3. Capital Resources

Capital resources will aid in the storage of goods. They

can include the assets that are used in the process of

producing goods and services as a part of an

organisation’s operations.

There are different types of capital resources. However,

we shall for this unit look at capital resources generically.

Capital resources include:

Technology:

• This includes robots, computers, and so forth that are always being updated. To maintain a competitive edge, it is important to keep your technology up to date.

Time:

• This is used to produce the organisation’s outcomes.

Information:

• Information is used as an asset. There are times when an innovation is made, and the potential users have to pay a fee to access the copyright on the equipment.



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Every operation performed within an organisation uses resources. For example, research includes

the finances to pay the employee who completes the research and to pay for the power and

energy to operate the computer to write the report for you. Computers and printers are used to

produce the report, and the employee needs to the have the skills and knowledge to research in

measureable terms the quality of the service offered.

The following section will look at overcoming problems in service delivery.

Buildings/facilities:

•This can include the building in which you produce your stock or the location of the store. The facilities include the kitchens and other amenities used to provide service to their internal customer.

Equipment:

•Equipment will vary according to the type of organisation you work for. For example, if you work for a production company, you would have equipment, maybe even robots, that would assist you in building the organisation’s stock and supplies. On the other hand, if you work in an office, your equipment will primarily be computers, printers, telephones, and scanners.

Power/energy:

•This keeps your business operating by supplying the resources necessary to do so.

Activity 4: Resources for customer service

To ensure effective delivery of quality customer service you must have

the correct resources. This activity will review the resource requirements

Read through the following terms and descriptions, and select whether they are

‘True’ or ‘False’. Then, read our correct response in order to assess the response

you gave.




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Section 4 – Make decisions in order to overcome problems

Make decisions in order to overcome problems and adapt customer services, products, and/or

service delivery in consultation with appropriate individuals and groups

Complaints are the way in which you can gather the best feedback. They can assist you in

identifying problems in the quality of the customer

service offered and assist you in overcoming

problems within the organisation’s system,

processes, policies, and procedures.

Encourage your customer to make

complaints/suggestions, and thank them when they

do. Customers gain confidence when the business

responds to their complaints. When you respond to

complaints, you are demonstrating your concern for

their welfare and that you will alter your processes

to correct errors as soon as possible.

Responding to customer complaints in this way means that:

Customer complaints are one of the keys to success. Never take complaints personally.

Customers are more concerned with having their problem fixed, and they only become angry

when they are frustrated. An angry customer will become a happy customer when you correct

their problem.

Res

po

nd

ing

to c

om

pla

ints

in

the

corr

ect

man

ne

r m

ean

s: There will be an increase in

customer loyalty

There will be more free advertising – by word of

mouth

More customers will return to the business

There will be a higher level of customers feeling

important and valued

Services and products will be improved



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Customers only become unhappy after a sale if they have a problem with their purchase. In turn,

the customer will not return if you do not resolve the problem quickly.

When a complaint is raised, use it as an opportunity to improve the customer/business

relationship by:

Complaints give the business the chance to respond to customer concerns and allow them to see

that you are committed to their needs. This in turn will build customer loyalty, especially if you

respond to their complaint in a positive way.

Always contact the customer personally. Take care of the task yourself. If you make a mistake,

apologise to them as soon as possible; they will

appreciate the effort that you have made.

Customers need to be treated the same way

irrespective of who they are.

When your staff members respond to a customer

complaint, they need to have access to a flow

chart. The flowchart is handy when the customer

becomes upset because it helps the staff remain

in control and handle the situation.

Listening carefully when the customer is

talking

Not taking a complaint personally.

Instead, take it as a way to

improve your skills

Not blaming others –

Remember that you do not

really have a problem. The customer just believes that a problem exists

Resolving the problem



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Handling customer complaint flow chart

1. Listen to what the customer has to say

2. Show them that you are listening by validating them, i.e. yes, I understand

3. Ask the customer what solution they would prefer

4. If resolution is agreed upon, settle it as soon as possible so as to ensure that the customer is happy

5. If higher authority is needed, explain the position to the customer, and let them know that you will get back to them

6. If the customer is happy, repeat 3 and 4

7. If the resolution is not approved, then apologise to the customer, and offer different alternatives. If accepted, see steps

4 and 5. If rejected, have a final back-up offer. Second offers need to be well thought out



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The following section will look at recommendations and reporting.

Activity 5: Handling complaints

Handling complaints is a critical key for successful customer service.

Drag and drop each of the options into their correct position in the following chart.




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Section 5 – Manage records, reports, and recommendations

Manage records, reports, and recommendations within the organisation's systems and

processes

It is important to realise that you need to recognise that a customer service plan is needed to

assist your team in handling customer service issues. To do this, you should develop a customer

service plan. The aim of the customer service plan should be to ensure that all customers obtain

the same level of service whilst protecting your employees from angry customers.

Process for changing systems

1. Determine the service level

needed

2. Write goals for the plan

3. Measure customer level &

business to business service

4. Create benchmarks

5. Adjust the plan as needed

6. Recognise and reward employees

7. Hold regular meetings with

updates

This should be a continuous

process so you are updating your

system to meet the changing

needs of the customer.



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Tip:

Visit the business website for useful information, templates, and videos on

developing a customer service plan:

Australian government - business - customer service

Develop Operating Procedures

To ensure that all of your operating procedures are

aimed in the correct way, you should develop a vision

statement. The vision statement provides you with a

guide for the standard of customer service that the

business is aiming for. The vision will assist you in the

decision-making process.

Whenever a new complaint arises, a new operating

procedure should be written so that there is a record of

what happened and how the issue was resolved. This

should become the new standard until a better way of

resolving the issue is raised and agreed to. Then, the

operating procedures should be updated.

When an issue is raised and/or updated, you should

ensure that you communicate the change to the

business employees. If you find that an employee does

not understand the procedure, you should make

arrangements to have another employee coach and

mentor them until they have shown they understand

the standard and issue.

Reports, records, and recommendations should be filed

and processed as per organisational procedures. If you

are unsure about any part of the process, consult with

individuals and relevant teams so that they might assist

you with completing your filing and maintaining documents correctly.

Video:

Watch these videos to learn about the keys to Customer Service Strategy:



https://www.business.qld.gov.au/business/running/customer-service/improving-customer-service/creating-customer-service-program

https://www.youtube.com/watch?v=BXMAV2U3hi8

https://www.youtube.com/watch?v=BP4eL67eEPI



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You have now finished the unit Manage quality customer service.

References

Davidson, P., & Griffin, R.W. (2003) Management: An Australasian Perspective. John Wiley and

Sons. Australia.

Fitzsimmons, J.A. and Fitzsimmons, M.J. (2006). Service Management: Operations, Strategy,

Information Technology. Fifth Edition. McGraw- Hill International Edition. Singapore.

Scott Miller, More Tips for Internal Customer Service

URL Address: http://www.kirkmillerandassoc.com/brieftips.htm

Access Date: 18 Jan 2011

Manning and Reece (2007) Selling Today: Creating Customer Value. Pearson International Edition

Activity 6:

In this section you examined the process for changing systems.

Drag and drop each of the options into their correct position in the following chart.


learner guide - library.myecampus.com.au

Documents