To get the most from this book and your study of customer service, apply ideas from each chapter to an organization of your choice. If you are currently employed or have a clear idea of the organization you want to work in, apply the end-of-chapter exercises to that organization. If you prefer, select one of the following hypothetical organization as your application target. Use the same organization throughout your study (i.e., don't use one for this chapter, another to apply ideas from Chapter 2, etc.).
Below are brief descriptions of two hypothetical companies you may select from if you do not have a real-world application. Feel free to add details as you consider service strategies and ideas you could use if you were involved in the company.
1. INDEPENDENT AUTO SALES AND SERVICE (IAS) Priority goals:
Expand sales and service business, especially via repeat customers and word-of-mouth recommendations.
This mid-size auto dealership sells late model used automobiles, many of which are recently off-lease cars the owner gets from large new-car dealers in a southwestern city. IAS is owned by Stephany and Lee Bergen, a husband-and-wife team. They have been in business for 15 years and have a positive reputation for honesty. Many of their sales come from referrals from past customers. Competing with other new- and used-car dealerships is always a battle. New cars are sometimes being offered with zero interest loan incentives. IAS, however, can almost always offer a much better purchase price, especially on two- or three-year-old cars with some mileage on them.
With a difficult economy and reduced sales of cars, Steph and Lee have decided to emphasize their repair services in addition to sales. They have three full-time mechanics on duty. The service manager is Ray, a man with good skills but not much of a personality. Nevertheless, repairs now account for about 15 percent of IAS revenues.
In addition, IAS has been cultivating additional business-to-business (B2B) sales efforts. They recently got a contract to provide servicing for the vehicles owned by their local city government as well as a major building contractor. This increase in service business has posed some problems due to lack of repair staff. Sometimes Ray promises more than he can deliver or misses deadlines. IAS is recruiting qualified mechanics to meet this need. They are also on the lookout for good salespeople.
2. NETWORK NUTRITION DISTRIBUTORS (NND) Priority goals:
Build extensive network of satisfied customers and motivated distributors.
NND's customers are both people who use their products (nutritional supplements and health care items) and the distributors who sell for them. As a "network marketing" organization, NND owners Lisa and Tom Fairmont succeed when people in their "downline" (distributors from whose sale they get a small percentage) effectively sell both product and the business concept to other distributors.
One customer service challenge Lisa and Tom face is that they rarely deal face-to-face with their customers. They do recruit new distributors and demonstrate products at meetings and conferences, but most follow-up and sales comes from online, email, text messaging, and phone calls.
NND also needs to differentiate their products from similar ones sold in stores. Personalizing products for the individual needs of customers is particularly important. Their products also cost more than similar nutritionals sold in big box stores or supermarkets.
Finally, NND deals with suspicion of potential customers and distributors who worry about the idea of network marketing (some see it as a pyramid scheme where only the people at the top succeed while others lose money as distributors). Most consumers acknowledge the high quality of NND products but worry about the pricing. They seem expensive relative to some competing products available in stores.
Strategy planning questions
1. If you were an owner or leader in this business, what could you do to help employees understand the value of excellent customer service?
2. Who are your external customers and what are their specific needs? (Describe at least three.)
3. Who are your internal customers and what are their specific needs? (Describe at least three.)
4. What are some starting points for developing the core competencies we discussed in your selected business? Be as specific as possible.
5. How could your business apply the ideas in this chapter to build customer loyalty?