© 2012 by robert w. lucas chapter 1: the customer service profession instructor: mr. leon roberts...

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© 2012 by Robert W. Lucas Chapter 1: The Customer Service Profession Chapter 1: The Customer Service Profession Instructor: Mr. Leon Roberts Instructor: Mr. Leon Roberts Contact: Contact: [email protected] Website: leon-roberts.com Website: leon-roberts.com

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Page 1: © 2012 by Robert W. Lucas Chapter 1: The Customer Service Profession Instructor: Mr. Leon Roberts Contact: Lroberts@cci.edu Website: leon-roberts.com Lroberts@cci.edu

© 2012 by Robert W. Lucas

Chapter 1: The Customer Service ProfessionChapter 1: The Customer Service ProfessionInstructor: Mr. Leon RobertsInstructor: Mr. Leon RobertsContact: Contact: [email protected]: leon-roberts.comWebsite: leon-roberts.com

Page 2: © 2012 by Robert W. Lucas Chapter 1: The Customer Service Profession Instructor: Mr. Leon Roberts Contact: Lroberts@cci.edu Website: leon-roberts.com Lroberts@cci.edu

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Learning OutcomesLearning Outcomes

• 1-1: Define customer service.1-1: Define customer service.• 1-2: Describe factors that have impacted the 1-2: Describe factors that have impacted the

growth of the service sector in the United growth of the service sector in the United States.States.

• 1-3: Identify the socioeconomic and 1-3: Identify the socioeconomic and demographic changes that have influenced demographic changes that have influenced customer servicecustomer service..

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Learning OutcomesLearning Outcomes

• 1-4: Recognize the changes in consumer 1-4: Recognize the changes in consumer behavior that are impacting service.behavior that are impacting service.

• 1-5: List the six major components of a 1-5: List the six major components of a customer-focused environment.customer-focused environment.

• 1-6: Explain how some companies are 1-6: Explain how some companies are addressing the changes impacting the service addressing the changes impacting the service sector.sector.

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What is Customer Service?What is Customer Service?

• DefineThe ability of knowledgeable, capable and enthusiastic The ability of knowledgeable, capable and enthusiastic employees to deliver products and services to internal and employees to deliver products and services to internal and external customersexternal customers

• What Is the service industry?– The definition of customer service really depends on the type The definition of customer service really depends on the type

of businessof business– A service industry is one that engaged in service delivery, A service industry is one that engaged in service delivery,

rather than working with productsrather than working with products– ProductProduct

» Something produced or tangibleSomething produced or tangible

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Customer-Focused OrganizationCustomer-Focused Organization

• Define• A company that focused and spends effort by insuring great serviceA company that focused and spends effort by insuring great service

• Characteristics of a customer focused organization– Internal Customers– Their focus is on determining and meeting the Their focus is on determining and meeting the

needs of customers while treating everyone with needs of customers while treating everyone with respect and as if they were specialrespect and as if they were special

– Management and systems support and Management and systems support and appropriately reward employee efforts to serve appropriately reward employee efforts to serve customerscustomers

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Customer-Focused OrganizationCustomer-Focused Organization

• Characteristics of a customer focused organization (contd)

» Reevaluation and quantitative measurement of the way Reevaluation and quantitative measurement of the way business is conducted is ongoing and results in necessary business is conducted is ongoing and results in necessary changes and upgrades to deliver timely quality service to changes and upgrades to deliver timely quality service to the customerthe customer

» Continual benchmarking or comparison with competitors Continual benchmarking or comparison with competitors and related organizations helps maintain an acute and related organizations helps maintain an acute awareness and implementation of best service practices awareness and implementation of best service practices by the organizationby the organization

» The latest technology is used to connect with and provide The latest technology is used to connect with and provide service to customers, vendors, or suppliers and to service to customers, vendors, or suppliers and to support business operationssupport business operations

» They build relationships through customer relationship They build relationships through customer relationship management (CRM) programsmanagement (CRM) programs

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Customer Service Historically Customer Service Historically

• The service sectorThe service sector– What is it?What is it?

• Historical customer serviceHistorical customer service– Cottage industriesCottage industries– Shift to serviceShift to service

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Customer Service Historically Customer Service Historically

• The service sectorThe service sector

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Growth of Service SectorGrowth of Service Sector

• Job GrowthJob Growth– Jobs in service are expected to grow while goods producing Jobs in service are expected to grow while goods producing

occupations are expected to shrinkoccupations are expected to shrink

• EconomyEconomy– Overall quantityOverall quantity

» Growth is projectedGrowth is projected– Distribution of jobs among industries, occupations, geographic areas Distribution of jobs among industries, occupations, geographic areas

and different size businessand different size business» Telecommuting as a trendTelecommuting as a trend» More training and technology providedMore training and technology provided» Jobs may be more centered in major metropolitan areaJobs may be more centered in major metropolitan area

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Growth of Service SectorGrowth of Service Sector

• Quality of jobsQuality of jobs– Quality of jobs, measured by wages, security and Quality of jobs, measured by wages, security and

opportunities for developmentopportunities for development» Better paying jobs on the riseBetter paying jobs on the rise» Service sector tends to pay more than goods-producingService sector tends to pay more than goods-producing» Different skills are neededDifferent skills are needed» Education is neededEducation is needed

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Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• Global economic shiftGlobal economic shift– Economic indicators have been in turmoil, Economic indicators have been in turmoil,

creating new needscreating new needs– People tend to cut costsPeople tend to cut costs

• Shifts in populationShifts in population– Higher population growth in some countriesHigher population growth in some countries

• Increased technology efficiencyIncreased technology efficiency– New machines can work longer and fasterNew machines can work longer and faster– Technological advances can lead to increase in Technological advances can lead to increase in

some jobs, but decrease in otherssome jobs, but decrease in others

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Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• GlobalizationGlobalization– Trade barriers came downTrade barriers came down– Offshoring and outsourcing as a result—can help Offshoring and outsourcing as a result—can help

increase profitincrease profit• DeregulationDeregulation

– The removal of governmental restrictions on an The removal of governmental restrictions on an industryindustry

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Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• GeopoliticalGeopolitical– Political unrest, conflicts, wars and embargosPolitical unrest, conflicts, wars and embargos– Limit access to product and that global marketLimit access to product and that global market– Trade agreements can assist companies in finding Trade agreements can assist companies in finding

cheaper labor in other countriescheaper labor in other countries– China’s increased need for services and productsChina’s increased need for services and products

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Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• White Collar WorkersWhite Collar Workers– Less farming, mining so more people work at traditional nine-Less farming, mining so more people work at traditional nine-

to-five jobsto-five jobs

• Women entering workforceWomen entering workforce– Shifting of traditional rolesShifting of traditional roles– Women’s incomes have risen but still not equal to the pay of Women’s incomes have risen but still not equal to the pay of

men doing the same jobmen doing the same job

• DiversityDiversity– Number of people from different cultures entering workforceNumber of people from different cultures entering workforce– Traditions, customs are differentTraditions, customs are different

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Societal Factors Affecting Customer Societal Factors Affecting Customer ServiceService

• Older workersOlder workers– Median age is rising because of baby boomersMedian age is rising because of baby boomers– Many older people working traditionally “younger” jobsMany older people working traditionally “younger” jobs

• E-commerceE-commerce– Growth of online transactionsGrowth of online transactions

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Consumer Behavior ShiftsConsumer Behavior Shifts

• New mindsetsNew mindsets• ExpectationsExpectations• Customer PreparationCustomer Preparation

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The Components of a customer service The Components of a customer service environment environment

• The CustomerThe Customer• Organizational CultureOrganizational Culture• Human ResourcesHuman Resources• Products and deliverablesProducts and deliverables• Delivery systemsDelivery systems• ServiceService

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How to address the customer service How to address the customer service changeschanges

• Learning organizationsLearning organizations• The small business perspective The small business perspective