March 24

Assignment No. 01

2012
Submited By : Zerteef Ahmad. SP11MBA-070

Presented To: Sir Imran Khan

Q 1: Describe the factors that make up high quality customer service? A:

For any good services provider these fa ctors are very very necessary to satisfy his customer and for attracting of more and more customers. To provide the best customer service, a business needs to know what its customers expect of it and then meet these expectations. Customer satisfaction is vital for keeping customers happy to the business. It can often be much more cost-effective to retain customers than to attract new ones. 1) Customer service relies heavily upon good communication skills 2) A satisfied customer stays with a company longer, spends more and may deepen the relationship. For example a happy credit card customer may enlist the companys financial services and later take travel insurance. 3) Good social skills are another key element of good customer service. Good social skills enable a person to be able to demonstrate empathy and respond appropriately. 4) How can you meet your customers needs, if you dont know them? To understand your customers needs, just listen to the voice of the customer and take action accordingly. 5) Good quality customer service is only one factor in meeting customer needs. 6) Customers expect consistent quality of customer service; with a similar, familiar look and feel whenever and however they contact the company. 7) There should be number of sources through which customer can contact to you. 8) The customer wants to contact you in many ways face to face, by mail, phone, fax, and email - and will expect all of these communication channels to be open. 9) If you inform customers about new products or services when they contact you, you may make a valuable sale, turning your cost centre into a profit centre.

Q 2: Explain why customer retention is important to a business? A:

Firstly I will explain that what is customer retention? Customer retention is the keep in touch of customer to the business. Customer retention is not only a cost effective and profitable strategy, but in today's business world it's necessary. This is especially true when you remember that 80% of your sales come from 20% of your customer and clients. Taking these statistics into consideration I wonder why most marketing and sales campaigns are designed for the new customer. A great example is the wireless telephone companies; if you sign a new contract you are given a large rebate or even a free cellular telephone. If you are a current customer you have the privilege of paying full price. If it is difficult to attract customers, it is more difficult to retain them. Most marketing theories and practices over time have relied on attracting new customers rather then retaining the old ones. A sustainable business however, concentrates on its new as well as old customers equally. Customer complaints is not a measure of customer satisfaction. Important thing is that 95% of people never complain to a company. They just move on to another brand. Thus using toll free numbers and suggestions forms has become a norm in major MNCs as well as retail chains. Just so they can reach out to their customers, and possibly bring back lost customer.

Interesting facts on customer retention:

1) Acquiring new customers comprises of five times the cost of retaining your customers. 2) An average company loses 10% of its customers each year. 3) Lessening the defection rate by as low as 5% can increase companies profits by 25% depending on industry standards. 4) Customer profits keep on increasing over the life of the retained customer as cost in retaining the customer becomes lower and lower. These facts in themselves explain the need of customer retention Why would you want to spend 5 times your hard earned profits if you can tweak your own organization and thereby retain customers.Some excellent examples over time have been Samsung, Ford, Hyundai, Nike, Aquafina, Apple, McDonalds, Pepsi, Starbucks, Estee lauder and Walmart.

Q 3: Analyze how effective customer service benefits the business, its colleagues and its customers. A:
Customer services have a lot of effects on the businesss all activities.

The services of thee businesses play a key role between the customer and the business. Almost every business will take benefit from the good relationship between customer and colleagues.

For Customer:
Establishing and maintaining good relationships with customers provided few problems in the past when businesses were small and customers were identifiable by sight rather than by an ID number or code. The Manager of the small business knew each of his customers, understood their value to him in terms of how much they spent and how often, remembered their idiosyncrasies and their preferences. Customer relationship management was a term unknown but a practice adhered to if business was to be successful.

Today, the sheer size of businesses and organizations and the wide range of customers means that good customer relationships must be explicitly managed if they are to be successful The benefits of customer service improvement are customer loyalty, customer referrals, increased customer satisfaction and increased revenue. Employees who can provide good customer service will help to retain customers and grow the business. Customer service is so important that it is often difference between companies that survive and those that fail. Customer service improvement enables a company to ensure that all problems with customer service are handled expeditiously and that weak

areas are addressed which result in strong customer service and a robust company.

For Colleagues:
When the Colleagues of any institution are satisfied with the services

of their own institution then they will work good. Colleagues perform their best effort for best results. Colleagues check if their customer are satisfied with their services then the Colleagues will also work hard.

For Business:
Efficiency of business depend upon the services of the business. Customer services play a vital role on the performance of the business. The customer may not always be right, but he does pay your bills. That's something to consider if you're tempted to quibble with a customer over principle--you may achieve some smug satisfaction, but you will probably lose a future revenue stream and may create a new spokesperson for your competitors. According to an article on the U.S. Small Business Administration website, a National Federation of Independent Business study put customer service ahead of both price and product in determining business success. One obvious effect of providing outstanding customer service is that it can make you more money to business on right time. If a customer has a bad experience with your organization, a Harvard University study found that an unhappy customer will become a repeat customer 80 percent of the time if you act quickly to remedy the situation to her satisfaction.

Q 4: Evaluate the various methods that Morrisons uses to differentiate itself from competition. Judge why customer service is such a key part of such differentiation.
A: Marrison differentiate it self with his competitors by measuring customer services as through qualitative method and as well as through quantitative method. Quantitative measurement often takes place through exit surveys in every store each month. Qualitative measurement often takes place through methods such as mystery shops, which allows the gathering of customer opinions and comments. Exit survey: A method of collecting information from customers as they leave the store. Marrison give a very very good chain of information to their customers as this includes information given directly to customers by colleagues and details given on published material such as websites, packaging, catalogues and leaflets. In-store, directions and signs to products allow customers to navigate through the store more effectively. Marrison give special attention & advice to their customers as this includes expertly trained specialists such as butchers and fishmongers who advise on the best meat or fish for different menus as well as how to Cook it appropriately. Marrison provide special service to deliver their products refers to all areas of customer involvement once the sale has taken place. It includes delivery, packaging, guarantees, complaints, refunds and exchanges. At Morrisons, helpful and friendly colleagues deliver an exceptional checkout experience to help retain customers.

 Marrison is continent to all of their customer this includes the location of stores, ease of access and car parking, availability of public transport and convenient ways to pay, such as cash, card and chip and pin facilities. At Morrisons, 5% of all car parking is dedicated to blue badge holders to enhance accessibility for those with recognized disabilities. Marrisons also giving training to their colleague from their academy The Morrisons Academy provides support and training for colleagues of all levels from school leavers to senior roles. The Academy is a partnership between Morrisons and several academic institutions including the Bradford School of Management and the Bradford Business School.

(b) These customer services play such a key role to differentiate because due to these all differentiates customer relay on your product. Customer feel that seller is caring about us. Customer know that seller is not only their sale conscious but they also need and care customer.