Customer Care

Question 1

Discuss methods an organisation can use to monitor customer satisfaction levels.

6 Marks

Answer 1

Comment Cards -

• Customers can quickly fill the cards in during their own time and return them to the box.
HOWEVER
• Business may not be able to ask follow-up questions.
• Some people don’t take it seriously and make inappropriate comments.
• Low response rates as no pressure to complete

Mystery Shoppers -

• Unbiased views are gathered
• Very detailed feedback can be gathered
• Staff are unaware so genuine information/feedback is gathered
HOWEVER
• Mystery shopper/agency needs to be paid and this Increased expenditure can lower profits

Online Survey -

• Inexpensive way of gathering feedback
• Customer can usually remain anonymous so will likely give genuine opinions (less embarrassed)
HOWEVER
• Low response rates
• Specific follow-up questions cannot usually be asked

Question 2

Describe 3 methods that could be used to research customer satisfaction levels.

3 Marks

Answer 2

• Customer focus groups

Face-to-face meetings with small groups of customers — these provide the organisation with feedback on their products, services or opinions regarding proposed new products/services — customers feel they are being listened to and taken account of — which will encourage brand loyalty.

• Mystery shopper

Mystery shoppers are employed to act as normal customers and report back on the service they received — this information can then be fed back to staff — either to praise or reinforce good practice — or highlight bad customer service.

• Surveys

o Written survey such as a pre-printed form or questionnaire — which is posted out to the customer with a reply-paid envelope — permanent record created.
o Telephone survey — customers are phoned and asked a series of pre- set questions/have become more popular with the increase in call centres.
o Online survey on company website, which may pop up or may be emailed to customer after a purchase has been made/customers now becoming intolerant of these

Question 3

Describe features of an effective customer care policy.

6 Marks

Answer 3

A good customer care policy may include:

• Mission statement
An outline of the organisation’s main aims and focus - to ensure the customer understands the ethos and direction of the organisation.

• Customer service strategy
A written statement of principles relating to organisational customer service - sets out what level of service and the standards customers should expect. (Service level agreement/minimum standards).

• Loyalty schemes
Details of how the organisation aims to retain existing customers and the benefits the loyalty scheme offers to loyal customers.

• Complaints procedure
Will set out what customers can do if they are unhappy with the level of service they receive - and how the organisation will respond to customer complaints.

Measuring Customer Satisfaction
• Outline ways the organisation will measure levels of customer satisfaction, ie market research
• Organisations may run focus groups, online surveys etc to measure

Question 4

Outline the features of an effective complaints procedure a company might use.

4 Marks

Answer 4

• States to whom the complaint should be made
• They should deal with the complaint as quickly as possible
• Complaints should be acknowledged immediately
• The customer should receive feedback on the amount of time it will take for their complaint to be handled eg 14/30/90 days etc
• The customer should receive feedback on what steps will be taken to deal with their problem
• Face-to-face/verbal complaints should be logged by employees
• Details should be provided so an appeal/further action can be made if the customer wants eg to the Ombudsman
• The process should be monitored internally by management
• Policy on compensation and refunds available
• Staff should be trained to effectively handle complaints
• Dedicated complaints contact, eg a phone number/e-mail address

Question 5

Justify the need for a complaints procedure.

2 Marks

Answer 5

• Staff know how to respond to complaints
• Customers know who to contact/how to complain
• Customers know the process -Timeline shared with customers
• Customers are aware of their rights -next step if still unhappy
• Compensation level is made clear to customer
• Created feedback to be analysed and can be used to improve service
• Can create a positive image of the organisation if effective complaints procedure
• Customers will be retained if the process is effective

Question 6

Describe the possible benefits to an organization of providing good customer care.

4 Marks

Answer 6

• Will promote customer loyalty as customers will return to the organisation.
• Returning customers will increase sales turnover.
• Creating a good reputation will attract more customers to the organisation - which could increase sales.
• Good customer care will result in fewer complaints to employees from customers - this will mean employees can be happier at work.
• Increased morale amongst employees may result in a lower staff turnover - thus reducing recruitment costs for the organisation.
• A good reputation for the organisation may attract a higher quality of potential employees.
• Good customer care may give the organisation a competitive edge in the market - it may attract customers away from competition.