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2.3 Customer Service and Customer SatisfactionUnit 2: Developing Customer Relations

2.3 Customer Service and Customer Satisfaction

Unit 2: Developing Customer Relations

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Contents

Teacher’s notes included in the Notes Page

Flash activity (these activities are not editable)

For more detailed instructions, see the Getting Started presentation

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Printable activity

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Customer satisfaction

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Word of mouth reputation

Confidence in service

Value for money

In this section, you will learn why customer satisfaction is important to businesses, and what they do to encourage it.

Repeat custom

Internal customer satisfaction

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Customer expectations

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Goods that are suitable for their purpose

Confidence in service

It is important that customers have confidence in service.

This means that they expect to have their needs and expectations fully met.

Accurate and honest information

What do customers expect from businesses?

Reasonable prices

Prompt and efficient service

Effective after sales service.

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Value for money

For many customers, the principal factor in determining which organization they purchase their goods or services from will be their perception of getting value for money.

This does not mean the cheaper the better!

availability

accessories

delivery

installation

servicing.

guarantees

Value for money is about the whole ‘package’, which includes other factors, for example:

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Value for money

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Repeat custom

If organizations can generate high levels of customer satisfaction, they are more likely to encourage repeat custom.

This is when customers return and buy products or services on more than one occasion, and it is a good indicator that the business is meeting customers’ needs and expectations.

McDonald’s is one firm that has achieved large-scale repeat custom, and as a consequence, has also achieved brand loyalty from many of its customers.

What do you think is meant by the term ‘brand loyalty’?

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Repeat custom

Organizations benefit from repeat custom in several ways.

Advertising costs are reduced as the business is well-known.

Satisfied customers tell other potential customers about the business, creating

word of mouth advertising.

Customers need less adviceand information, since repeat customers know the ‘routine’ (e.g. ordering procedure, available products, etc.).

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Word of mouth reputation

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Internal customer satisfaction

Organizations also need to consider the importance of providing satisfaction for internal customers.

High levels of internal customer satisfaction result in increased job satisfaction for staff.

In some organizations, the largest group of customers will be internal, so it is crucial for the organization’s success that these people have high levels of customer satisfaction.

How will this positively impact on an organization?

Teamwork skills should also improve, which in turn improves the effectiveness of the organization.

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Communication problems

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Wheel of Misfortune