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MANAGE QUALITY CUSTOMER SERVICE

FACILITATOR MANUAL WITH SIMULATED ONLINE BUSINESS ASSESSMENT

BSBCUS501A

Precision Group (Australia) Pty Ltd

9 Koppen Tce, Cairns, QLD, 4870

Email: [email protected]

Website: www.precisiongroup.com.au

© Precision Group (Australia) Pty Ltd

BSBCUS501A

Manage Quality Customer Service

ISBN: 978-1-74238-

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1Facilitator Manual BSBCUS501A Manage Quality Customer Service© Precision Group (Australia) Pty Ltd

Table of Contents

2 Legend3 Qualification Pathways4 Qualification Rules5 Introduction7 BSBCUS501A/01 Plan to Meet Internal and External Customer Requirements Key Points

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

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

21 ‘True’ or ‘False’ Quiz

23 BSBCUS501A/02 Ensure Delivery of Quality Products and /or Services Key Points

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

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

Assist colleagues to overcome difficulty in meeting customer service standards using leadership, supervision, coaching and mentoring


35 BSBCUS501A/03 Monitor, Adjust and Review Customer Service Key Points

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

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

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

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

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


44 Summary45 Bibliography47 Assessment Pack

2 Facilitator Manual BSBCUS501A Manage Quality Customer Service© Precision Group (Australia) Pty Ltd

Legend

This symbol indicates the beginning of new content. The bold title matches the content of the competency and they will help you to find the section to reference for your assessment activities.

Activity: Whenever you see this symbol, there is an activity to carry out which has been designed to help reinforce the learning about the topic and take some action.

This symbol is used at the end of a section to indicate the summary key points of the previous section.

This symbol is used to indicate an answer to the Candidate’s questions or notes to assist the Facilitator.

Use considered risk taking in your ‘grey’ area...and others will follow you!


“There are always two choices. Two paths to take. One is easy. And its only reward is that it’s easy”. Source Unknown

This unit of competency is provided to meet the requirements of BSB07 Business Services Training Package although it can be used in a range of different qualifications. The BSB07 Business Services Training Package does not state how a qualification is to be achieved. Rather, Registered Training Organisations are required to use the qualification rules to ensure the needs of the learner and business customer are met. This is to be achieved through the development of effective learning programs delivered in an order that meets the stated needs of nominated Candidates and business customers.

Qualification Pathways


Qualification requirements include core and elective units. The unit mix is determined by specific unit of competency requirements which are stated in the qualification description. Registered Training Organisations then work with learners and business customers to select elective units relevant to the work outcome, local industry requirements and the qualification level.All vocational education qualifications must lead to a work outcome. BSB07 Business Services Training Package qualifications allow for Registered Training Organisations (RTOs) to vary programs to meet:

Specific needs of a business or group of businesses.

Skill needs of a locality or a particular industry application of business skills.

Maximum employability of a group of students or an individual.

When packaging a qualification elective units are to be selected from an equivalent level qualification unless otherwise stated.

Qualification Rules

“You’re either part of the solution or part

of the problem.”Eldridge Cleaver


This unit of competency is all about being able to manage quality customer service in your workplace. It will help you with the skills you need to demonstrate competency for the unit BSBCUS501A Manage Quality Customer Service. This is one of the units that make up Diplomas in Business.

This manual is broken up into three distinct sections. They are:

1. Plan to meet internal and external customer requirements: First we will look at the process of examining what customers want and how you can provide customer service advice to your organisation.

2. Ensure delivery of quality products and / or services: Then we will examine how you go about selecting customer service strategies and ensuring you have planned their implementation to ensure it goes smoothly.

3. Monitor, adjust and review customer service: In the final section we will examine how you can monitor the performance of your customer service staff and look for ways of improving overall performance.

At the conclusion of this training you will be asked to complete an Assessment Pack for this unit of competency. The information contained in this resource will assist you to complete this task.

On conclusion of this unit of competency you will have demonstrated your ability to develop strategies to manage organisational systems that ensure products and services are delivered and maintained to standards agreed by the organisation and the customer.

Introduction

“Whether as an individual, or as part of

a group, real progress depends on entering whole-heartedly into

the process and being motivated to make you a

more deeply satisfiedhuman being.”

Source Unknown


Key Points Section 1 In order to ensure that your business provides quality customer service it is

crucial to ensure that you know exactly what it is your customers want.

In order to know what your customers want you need to know:

Who your customers are

What they buy

How they buy

Where they buy

When they buy

Why they buy

Your customer service plans should be written taking into account the desired quality, costs and time requirements that your customers expect.

PART 1:

Plan to Meet Internal and External Customer Requirements


Why Do We Need to Know Our Customers?

It is a fact in business that no matter how good the product or service you offer is, no-one will buy it if they don’t want it or believe they don’t need it. You also will not be able to persuade anyone that they want or need to buy what you’re offering unless you clearly understand what it is your customers really want. This process is often referred to as understanding buyer or consumer behaviour.

Knowing and understanding customer needs is at the centre of every successful business, whether it sells directly to individuals or to other businesses. Once you have this knowledge, you can use it to persuade potential and existing customers that buying from you is in their best interests.

In this first section, we will examine what you need to know about your customers, how to use this information to sell to them more effectively, and how to win business from your competitors.

Understanding your customers is so important that large companies spend millions of dollars annually on market research. This type of research is very important to large organisations, however if you are a smaller company, it is likely that you can avoid this expense. For the most part, the owner or manager of a small company will know their customers personally. From this an owner can build an understanding of their customers through systematic effort. These efforts attempt to build an understanding of customers by understanding their fundamental qualities. These qualities are outlined in the diagram following:

What You Need to Know About Your Customers.

What

Here you need to understand what your customers are buying as goods – toothpaste, hammers, video games, houses – or as services which are helpful – dentistry, building, theatres, medical care. This provides you with a fundamental understanding of what it is that is being bought, but it is important to understand that there is more to understanding what it is your customers are buying. As well as buying a specific product or service, the customer wants a specific benefit that using that product or service will provide. Your customers don’t just buy toothpaste; they buy a nice taste, whitening abilities or cavity prevention or in the case of dentistry, they are buying preventative diagnosis, or care of their dental problems.

Part 1: Plan to Meet Internal and External Customer Requirements

Qualities you need to

know

Who

What

When

Where

How

Why



The reason that you might buy a hammer is not because you are interested in hammers; you might need nails hammered, a picture hung or any other use for a hammer. It is buying a hammer that is appropriate for the use you want to put to it – you need it to be at a good price, and of a reasonable quality. Video games are great fun to play. Your customers may be purchasing them for entertainment, as something the family can do together, to help introduce kids to how to use computers, development of personal dexterity, or for other reasons. However some customers (perhaps hotel owners as an example) buy video games as they represent a potential source of income, a means of attracting buyers to their premises, or perhaps a competitive move. Different customers will have different motives for buying the same product.

Managers are looking to establish a high level of satisfaction among their customers. This requires you to know exactly what it is that they are seeking and how you can assist those customers in getting there. Think for example about buying a cake, the actual ingredients generally do not matter and the technical names are not known, but the actual end product – the cake – is what is most important in these processes – it is this that will bring about the level of required satisfaction.

So, think about the products that you sell. Generally the actual benefit behind any product you sell doesn’t change over time. What does change, however, are some of the basic attributes like colour, features and quality.

A company that looks primarily at the way it produces quality benefits for its customers is more like to be profitable. Organisations look to attempt to enhance these benefits in order to make their customers willing to spend more on those products.

Why

An important consideration to consider is why a person purchases a given product. This reason may seem logical from the point of view of the customer but may be impossible to work out for the organisation. Remember, however, one important point:

Everyone is differentEvery one of your customers has a unique set of needs that require a unique set of benefits to be resolved. Consider carefully:

The pressure a person feels when choosing a product

The considerations they make

The benefits they want to achieve

The perceptions a customer has.

By carefully examining the benefits they want to achieve you can put yourself in a position of actually meeting and even exceeding those needs.



Customers however can be difficult creatures. They often hide the exact reasons why they are making a purchase - in some cases they may not even know themselves or you may find that there are multiple reasons for a given purchase. Think about purchasing a new house... you may want:

More room

A nice garden

Lower council rates

These in some cases work together and others are opposed. The reasons are often very complicated to work out.

Reasons could be trivial, reasons could be intimately related to just not liking a specific brand or store selection may be completely random. However, knowing that rationale behind buying decisions, no matter how they are made, is critical.

Now consider the time when a purchase is made. This is highly dependant on a number of factors which we will consider in this section.

“A customer is the most important visitor on our premises. They are not dependent on us – we are dependent on them”. Source Unknown



When

In order to make a sale, the seller must be ready to sell at the same time the buyer is ready to buy. If not, there may be an opportunity lost to make an effective sale. Customers buy when:

They have the needed resources

There is an opportunity for a sale

The need is great.

Often you will find that the consumers lifecycle dictates certain purchasing patterns, you may find for example that nappies are brought when a new baby is due. Some of the major events that occur for retailers and manufacturers to consider are:

Organisations may, for example, begin recording some of these important dates and times, they may keep a record of birthdays, anniversaries, and the like.

You should also consider seasonal reasons for buying:

Weather

Holidays.

While the time of year or time of life is important, buying decisions may come down to time of day as well:

Some customers can only shop after work

Can only shop on weekends

Can only shop on public holidays.

So, there could be a need to alter your offerings depending on this. For example you may make sure you have more staff available at 5pm-8pm than any other time of day, especially for large organisations like supermarkets.

Important Lifecycle Steps for Retailers

Marriage

Divorce

Buying a home

Getting a new job

Getting injured

Pregnancy

Having an operation

Looking after children

Reaching milestone ages

Retirement



How

The way in which people buy is always different, but generally follows a similar process:

1. A need is found - this may be a desire or a problem

2. Once this is discovered the consumer sets out to fulfil that need or desire.

As we mentioned earlier, everyone is different and approaches the buying process in different ways. The process itself may depend on:

The significance of the purchase

The effort willing to be expended

The budget they have.

When examining reasons for purchase, consider where the consumer is in their life as well as trying to identifying everyone who has influence over the particular decision being made. Everyone is influenced by different people and this needs to be understood in order to make those customers happier with their experience.

Think about the many reasons:

Change in circumstance

Change in lifestyle

Lack of knowledge causing someone to seek friend’s advice

Budgetary constraints.

This is all part of what is referred to as the search stage. At this stage the individual will seek out advice looking for input into what they should do. You need to make sure that your customers are satisfied by the advice you give and the products that you offer. You may find that annoying staff or a poorly designed store reduce the chance of purchase at this early stage.

Make the positive points of your products as strong as possible, in order to keep the customer in your store and to make the decision to purchase in your store. Ensure your store is welcoming and try to make your customers more open to purchasing from your store. If you manufacture products make them as easy to use as possible.

Why is Knowing How Your Customers Buy Important?

Ensuring that as an organisation, your product and service offerings exactly meet the consumer’s needs

You can ensure that you are able to influence those who have the most effect in making buying decisions

You can ensure that you are able to make sure that the customer returns again and again.



Some attributes that should be considered include:

Exclusive benefits

Friendly staff

Attractive packaging

Simple to use products

Easy to read manuals

Good post-purchase service.

There is sometimes an emergency reason for making a specific purchase. Some examples include:

Medication for sickness

Flowers for a funeral

Rain coats for the rain

Tyres when one deflates

A new car battery.

In these cases you might find that little consideration is given to different brands, rather easy access is the key to making a specific sale. The more options that you are able to provide to your customers the better.

Other considerations that may affect this type of purchasing decision include:

Product availability

Brands that are available.

Where

Where to shop is quite a difficult decision to make for many customers because there are a wide range of factors that affect the choice of store. Location is commonly thought to be one of the deciding factors. The majority of your customers will come from the suburbs directly surrounding your location.

Those customers who have limited choices tend to shop with the store that is closest to them; however there are other options that make the store choice more difficult:

Mail order

Home delivery

Internet shopping.



The range of factors that may influence buying decisions can be quite broad and may include:

Product being purchased

Type of store

Price

Breadth of product offering

Quality of goods supplied

Layout of the store

Quality of the staff

Perceptions of the speed of the service.

In order for a store to make a sale, the consumer must actually understand that the product is available for sale at a given location. This is where promotional tools such as advertising become important. They allow you to put out a message into the market that certain products can be purchased.

Other sorts of promotions, like competitions and sales may also assist in injecting some desire to shop at a particular location. Sales promotion works to bring people in for a given period and can be extremely effective at achieving this.

Let’s think of a good example of a product that on the face of it seems quite homogenous, but when you delve deeper there are subtle yet important differences, the supermarket. For the most part there are four key supermarket types to consider. Try to think about where your local supermarkets fit and how this affects your purchasing decisions:

Who

Identification of customers and prospects makes targeting of your marketing and sales efforts possible. Small business owners pride themselves on knowing their customers personally – and thus being able to tailor the experience to the customer’s needs in tremendous detail. In the industrial field, understanding of each major customer and buying influence is essential. When dealing with a large number of customers, however, individual familiarity is not a realistic goal. This means that department stores and discounters must group their customers, whose reactions to offerings are similar, into groups known as segments. Then they design an appropriate marketing program for each segment.

Different Supermarket Styles

Quality products and high price

Being the cheapest supermarket

Being quick to check out of

Providing friendly and knowledgeable service



Strategies between segments may vary considerably. A small firm might prosper by concentrating its resources on one segment. However this can mean that an organisation is vulnerable to sudden change in its target segment’s custom. This means that most companies address several segments simultaneously. Although expensive, a strategy of employing different tactics for different segments can be profitable. Other firms scatter offers to just about anybody. They hope that segments will select themselves. Mass merchandisers generally use this approach.

There are many methods that can be used to segment your market. As a customer service manager you will need to look at the various strategies open to you and consider which will provide the most benefit to you and the organisation as a whole. Sometimes you will find the ‘who’ question involves a range of different answers and responses depending on exactly what is required. Often this will be broken down into:

Who

Where

Why

How.

You can begin by looking at where your customers are actually located. This may divide up a market into:

Streets

Towns

Suburbs

Countries.

“Treat every customer as if they sign your paycheck … because they do”. Unknown



Depending on the nature of your organisation and the services that they provide, a strategy to segment your market works well because:

It allows you to quickly get an overview of the differences and similarities among your customers

Allows you to take cultural differences into account between the customers you may have

Allows you to adjust your offerings according to the difference in climate provided.

You can then undertake a segmentation of the market by considering the demographics of the market. Demographic variables include:

Age

Gender

Income

Social Class

Religion

Lifecycle.

By understanding these variables, the products and services that you provide can be adjusted to better meet the needs of your customers.

Psychographic segmentation works in a very similar way, but segments the market by psychographic rather than demographic variables such as:

Lifestyle

Values

Influence.

Why Do Your Customers Need You?

We can now move on to consider the reasons why a customer may shop at a particular location. This can be examined by looking at specific reasons for shopping in one place rather than another. This is often distilled down into a Unique Selling Proposition (or USP). A USP can be found by answering the question:

A customer will only shop with our store because...

USP are never set in stone, as they change with your market and your customers. You are trying to think about exactly why a customer would only buy with you, rather than with others… what makes you unique?



For example:

The USP for a certain pizza chain could be “we will deliver your pizza still hot, or it is free”.

This USP is effective because it is driven by a specific attribute that the customer is looking for when choosing where to get their pizza. Give me hot pizza.

What Do You Know About Your Customers?

Earlier in this section, we addressed the type of information you need to know about your customers in detail. It is also important to establish exactly what it is that we already know about our customers and how we can go about learning more. One of the simpler methods that can be adopted is to simply ask them. Talk with your customers and get to know them that way. You might:

Ask them what they are buying

Ask them why they are buying it

Ask them if there is anything else they would like to see.

This is, in essence, some very basic market research aimed at attempting to gain an understanding of your customer base. You should also go over any other market research that has been conducted by your organisation in order to build up a picture of exactly what your customers are like. We will examine this in section three of this manual.

The Customer’s Current Supplier

In order to establish why your potential customers are buying from someone else rather than from you, you need to consider a number of points. These allow you to attempt to convert a customer from one store to another - to yours.

It may seem like quite a difficult thing to actually obtain… where do potential customers currently shop? But the easiest way to find out is to simply ask them. People are usually quite open about providing this sort of information and it is very valuable to you as an organisation. They will generally also be quite open as to whether they are happy with their current supplier or not, and this information can be used to target your offerings to exactly the customer’s needs.

What You Need To Know

Who is currently supplying your customer?

Are the customers happy with that supplier or unhappy?

Would buying from you supply benefits not available to them from other suppliers?



By understanding the specific needs and desires of your customers you can begin to better plan exactly what you need to do to make your organisation grow and have a better customer base to build from. Essentially you need to:

Understand your customers

Define their needs

Design a solution to meet their needs

Implement this solution.

Developing Plans for Improving Service

Service problems are inevitable. They, however, can assist you in building stronger relationships with your clients if they are able to be resolved as quickly as possible. In this section, we will look at how you can accomplish this. There are four key factors that can be obtained from customers:

Some More Things You Need To Know About Your Customers

Income

Your product and service offerings will be more successful if your customers can actually afford what you are offering.

FeelingsWhat preferences do they have?

What makes them happy?

Expectations

You need to achieve what you want them to achieve, so by meeting or even exceeding their expectations you can make a strong relationship and a repeat customer.

Thoughts about you?What is it they like about you? What don’t they like?

Thoughts about the competition?

What is it they like about them? What don’t they like?

Steps to Improving Service

What is the problem?

Who has the problem?

How important is the problem’s solution to the customer?

How valuable is the problem’s solution to the customer?


What is the Problem?

It may seem logical to know this, but many people do not actually know what the problem is. If you do not know what the problem is, it can be very difficult to identify the problem and find a way of resolving it.

Think from the customer’s point of view

Define the problem the customer is having clearly

Make sure you understand the importance of that customer to your business before attempting to resolve an issue.

Who has the Problem?

There are a range of customers who may have a problem and identifying who that person is can be critical to a successful resolution. The three major types of customer are:

1. External paying customers

2. Suppliers

3. Staff members and other stakeholders.

How Important is the Problem’s Solution to the Customer?

When attempting to resolve an issue, it is very important to consider the importance of the problem to the end user. An unimportant problem will require less resources and time to resolve than a highly important one. Discuss problems one-on-one with your customers to identify those areas which are of key importance.

How Valuable is the Problem’s Solution to the Customer?

Finally look at the impact of the problem on your organisation and the income it is making, are there significant implications to not addressing the problem? Is the customer a large one? Can we do anything to make them continue on being a customer of ours?



Activity OneWhat is your organisation’s USP? How does the service you provide allow you to reflect this USP?

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Facilitator’s Notes for Activity OneThe USP is the unique sales proposition of the organisation. The Candidate should have identified WHY customers use their product or service above the competition. The Candidate should have then discussed how what they provide lives up to the USP.


Section 1 - ‘True’ or ‘False’ Quiz


Customers will usually only buy from a store that provides them with what they need or want.

Knowing and understanding customer needs is at the centre of every successful business.

Sometimes the reasons why customers buy are trivial.

Buying methods are a process.

You only need to know who your customers are.

Keeping track of customers’ birthdays is not useful to do.

Store location is not an important consideration when making a purchase.

All stores should have the same USP.

All customers will buy a product for the same reason.

Businesses will always understand why a customer buys a product.

True False

When they buy, why they buy, how they buy, what they buy and where they buy are all important to know!

This type of information can be used to personalise a shopping experience.

Research suggests that it is.

A USP should be unique to a given store to be successful.

Different people may have different motives for buying the same product.

This is a key thing to know, but it is not always easy to establish.

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