5. Managing Customer Service

Question 1

Expectations of customer service can be formed by; (3)

Answer 1

1. Own past experience
2. WOM
3. Promises made explicitly or implicitly by the firm

Question 2

What are explicit promises?

Answer 2

1. Direct & clear
2. Advertising makes explicit promises to customers
3. Verbal statement an employee makes to a customer may also be interpreted as an explicit promise

Question 3

What are implicit promises?

Answer 3

1. Implied or expressed indirectly
2. Good example is tangibles, best one is price.

Question 4

How can staff influence the emotions of the customer through their own social interaction;

Answer 4

1. Smile
2. Increased eye contact
3. Displays of gratitude
4. Extending a greeting

Question 5

Closing the gap - it can be closed in 5 ways, what are they?

Answer 5

1. Customer gap
2. Knowledge gap
3. Policy gap
4. Delivery gap
5. Communication gap

Question 6

Explain the customer gap.

Answer 6

• The gap between the customers expectations & customers perceptions.
• Understanding the needs of customers expectations will close this gap.

Question 7

Explain the knowledge gap

Answer 7

• Gap between managements knowledge of consumers expectation & reality
• To close this gap, firm needs to undertake research to learn their customers requirements

Question 8

Explain the policy gap

Answer 8

• Managers understand what the customer wants but fail to deliver in practice
• Customer complaints may provide an insight into this & how to correct it

Question 9

Explain the delivery gap

Answer 9

• Gap occurs when firm has correctly specified the right service for the customer but employee fails to deliver
• Staff training & development can reduce this gap

Question 10

Explain the communication gap

Answer 10

This gap is a result of the company overpromising

Question 11

Why is customer complaints a poor indicator?

Answer 11

Many don’t complain to the firm, they just walk away & spread NWOM. Research shows only 5% typically complain

Question 12

All firms should have a clear customer complaints policy, which should follow 6 steps, what are they?

Answer 12

1. Listen to customer to identify problem
2. Ask Q’s to clarify problem in a caring way
3. Emphasise w the customer to show you understand
4. Apologise w/o blaming anyone
5. Ask customer what they would like you to do to solve the problem
6. Solve the problem

Question 13

Where possible, why should problems be solved w/o passing them to another person?

Answer 13

Saves firm time & money, also helps w customer satisfaction.