Practical Applications of Customer Service

 

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Learn how to make a great first impression. (1:48)

Personal presentation is how you present yourself in everyday situations. This communication skill is essential in gaining employment and being part of a workplace environment. What you say and do is part of your presentation and outward appearance.

A first impression is made within five seconds of meeting someone. In those five seconds, you have classed the person before you. You will have summed your impression of them by how they present themselves. The term ‘easy to make, hard to break’ aptly applies here!

We all have prejudices that affect us individually. You may not, for example, like tattoos or facial piercings. Should you be presented with someone like this, you will immediately put them in a compartment in your mind. This may be a young and trendy person so that they will be updated with things. It may be, ‘Oh no, that person won’t know what I want’.

Either way, perceptions are necessary, or your presentation will immediately affect how you are received. Before embarking down this road, a question to ask is, “What impression do I want to make?” then dress and present yourself accordingly.

Personal appearance in the workplace

Air New Zealand is revamping its grooming rules for cabin crew: What could change?

^{Image source: https://www.stuff.co.nz/travel/news/131919735/air-new-zealand-is-revamping-its-grooming-rules-for-cabin-crew-what-could-change}

Flight attendants have long been subject to strict grooming requirements to ensure they look fresh and polished at all times – but in recent years, some airlines have been rewriting the rulebooks.

Air New Zealand has said it will be revising its grooming standards as it begins the hunt for a designer to create a new uniform for its pilots, flight attendants and ground staff.

Gathering and Using Customer Feedback

Customer feedback is essential in developing and refining customer service delivery.

Customer feedback gives you insight into customer satisfaction levels. Customer satisfaction is how happy customers are with your products, services, and any interaction with your business. It's an important metric as it helps you address customer issues, prevent churn, and build a base of loyal customers.

Here are some ways a tourism or travel workplace can obtain meaningful customer feedback:

• Surveys
• Comment forms
• Feedback link on the website
• Monitoring complaints and compliments.

Here are some ways a company can use customer feedback to enhance customer service:

• Provide additional training where necessary
• Develop or introduce products or services that meet customer demand
• Have an adequately developed complaints resolution process

How does NZST gather feedback from their students and staff?

Students:

• Mid and end-of-year surveys
• Module surveys
• Q-time.

Staff:

• Bi-annual staff feedback surveys.

Building Loyalty and Generating Referrals

A vital component to the success of any business is to create repeat business from existing customers and to use their loyalty as “brand ambassadors” to generate new customers through word-of-mouth referrals. It is much easier and cost-effective for a company to retain existing customers than to gain new ones. Customer loyalty happens when customers give a company repeat business over time. If you provide great value in your product or service, and the customer experience stays consistently good, then your business will reap the benefits of customer retention.

Here are some ways a company can build loyalty amongst existing customers:

• Have a loyalty programme that provides rewards
• After-sales follow-up
• Creating a database and using direct mail for special offers
• Communicate your company values
• Provide exceptional customer service
• Ask for feedback.

Companies with Excellent Brand Loyalty

Let’s look at a few quick examples of companies with famously high customer loyalty – and explore how they nurtured it.

Apple

Apple routinely tops brand loyalty charts, and 2021 saw the company reach an all-time brand loyalty score of 92%. People who buy Apple products tend to keep buying Apple products, and there are lots of reasons why. Image is a crucial driver for Apple, with its products firmly positioning itself as high-value, aspirational products that are an apparent league above the competition. This works in tandem with a well-maintained company story that Apple is for people who “think different” and an origin that gave it innate underdog status against rival Microsoft.

But arguably, the most critical factor in its brand loyalty success is a focus on excellent customer service. The company continually tops customer satisfaction indexes in the 80s yearly (across the smartphone and computer segments) thanks to famously forgiving and robust repair programs and in-store excellence.

NIKE

Like Apple, Nike’s brand loyalty success has been built on a bedrock of aspirational, motivational image building. Nike uses famous athletes as brand ambassadors to significant effect, but in recent years a lot of Nike’s brand loyalty efforts have been focussed on the omnichannel customer experience as a way to foster a sense of both community and exclusivity.

Through a collection of free apps (Nike Run Club, Nike Training Club, etc.), customers are incentivised to create an account that offers priority tickets to events, exclusive deals, free training advice/programs, and community features. This ecosystem works to build brand-loyal customers who see Nike as their first choice for all things sports.

Starbucks

In 2020, Starbucks reported that its Starbucks Rewards loyalty program had crossed 19.3 million members, growing by 10% YoY despite the global pandemic causing a dip in overall transactions. Globally, this loyalty scheme is now responsible for almost 50% of the company’s total sales and stands as a fantastic example of customer loyalty being rewarded with natural intelligence.

Starbucks Rewards uses in-app user data, specific store insights, and purchase history to build out offers and discounts that feel unique and personalised to each customer.

^{Source: https://www.qualtrics.com/au/experience-management/brand/brand-loyalty/?rid=ip&prevsite=en&newsite=au&geo=NZ&geomatch=au}

Staff Training

Ensuring that staff are well trained is one of the most essential strategies in providing excellent customer service. It should begin with the induction of new employees and continue as the trading environment and product range change.

The training you would provide for staff in your tourism or travel workplace includes:

• Customer service skills training, e.g., PDT or Tourism IQ
• Telephone skills
• Product knowledge
• Complaint handling skills.

Complaint Handling

Even companies with the best levels of customer service have occasions when a customer is disappointed, or the delivery of service falls below what the customer expects or is used to. In these situations, the company must have a process to deal with customer complaints.

Some good strategies for a company to have when dealing with complaints include:

• Handle complaints promptly
• Train staff in complaint-handling procedures
• Ensure the customer understands the complaint procedure
• Follow up with the customer
• Record complaints and track trends.

Customer Expectations

Customers have expectations about how they will receive goods or services. If you are going to give a service described as exceptionally good, you need to identify your customers’ expectations and not only meet but exceed them.

As customers ourselves, we would expect:

• Timeliness – we know when we want things to happen
• Quality – we know how good the service should be
• Courtesy – we know how we want to be treated.

Enhancing Customer Service

Turn the cards to explore strategies for enhancing customer service.

To be able to evaluate the customer service being provided in a tourism or travel workplace, there needs to be some criteria established against which the service levels can be measured. Reflecting on the critical components of customer service that we studied earlier in the module and using them as the basis for an evaluation system.

We looked at the five components, which are:

• Tangibility
• Reliability
• Responsiveness
• Accuracy
• Empathy.

How can we use these components to create evaluation criteria? Firstly, we need to decide on the method of evaluation. Some of the ways a customer service evaluation can be conducted are:

• Telephone survey
• Mystery shopping
• Direct experience
• Customer exit surveys.

Mystery Shopping

A mystery shopper plays a vital role in assessing and evaluating various aspects of a business. Their primary objective is to gather insights into the customer experience by posing as a regular customer. It is someone who visits a location assigned to them and acts like a regular customer to observe and evaluate several different areas such as store presentation, customer service, selling skills and product quality. It is an effective tool that businesses use to gain insight into employee training areas needing improvement. Through discreetly observing employees in their daily tasks, mystery shoppers can identify potential issues like customer service, product knowledge, and overall attitude.

A list of customer criteria for evaluation needs to be created to enable an evaluation, which covers the five key components.

Using the five characteristics of Servqual, we have created a list of questions you could use for a telephone survey or in person for any Tourism and Travel workplace. Each question has been itemised under the five headings it relates to. We have also considered how to grade each question. Is it a straight ‘yes/no’ answer or a question ranging from 1(not good) to 5 (the best)?

Questions:

Tangibles

Was printed and visual material available in advance and easy to access?	1 2 3 4 5
Was the location of the tourism activity easy to find?	1 2 3 4 5
How would you rate the appearance of the facility from the outside?	1 2 3 4 5
Were the facilities provided clean and well-maintained?	1 2 3 4 5
Were the staff well groomed?	1 2 3 4 5

Reliability

Is the facility open at hours that would meet the needs of tourists?	1 2 3 4 5
Was the experience of the tourism facility comparable to prior expectations?	1 2 3 4 5
Did staff provide the service consistently?	1 2 3 4 5

Responsiveness

Were staff available to answer customer queries?	1 2 3 4 5
Were staff knowledgeable and efficient when dealing with customers?	1 2 3 4 5
Were staff willing to go the extra mile to meet customers’ needs?	1 2 3 4 5
Did the staff make customers feel valued?	1 2 3 4 5

Assurance

Did staff encountered appear to be well trained in their role?	1 2 3 4 5
Did staff demonstrate excellent product knowledge?	1 2 3 4 5
Did staff demonstrate good listening skills?	1 2 3 4 5
Did staff communicate effectively in response to customer requests?	1 2 3 4 5
Did staff represent their organisation well?	1 2 3 4 5

Empathy

Did staff appear to treat customers as individuals?	1 2 3 4 5
Did the organisation provide a means of gathering customer feedback?	1 2 3 4 5
Was there a readily identifiable and easily understood complaints procedure?	1 2 3 4 5

How to Evaluate Customer Service

In-person, visit a café or restaurant over the next week. When surveying for real, you must understand the need to be respectful and discreet. Once done you can complete this next Learning Activity.

Example: Sea Life Aquarium Kelly Tarltons

Positive Aspects of Customer Service

• Tangibles - Kelly Tarltons scored highly for easy access to printed and visual material. The company website is comprehensive and easy to use. On-site, there were printed brochures displaying various displays at the aquarium.
• Reliability - Kelly Tarltons is open from 9.30 am until 5.30 pm every day, including public holidays
• Responsiveness - Staff were well informed and were able to answer questions across a range of topics related to the aquarium
• Assurance - Staff were very knowledgeable about all aspects of the aquarium and the marine animals on display
• Empathy - Staff at Kelly Tarlton’s are selected for their ability to relate well to customers.

Negative Aspects of Customer Service

• Tangibles - The exterior paintwork and signage look dated

• Reliability - Although the aquarium is open daily, the last time for entry is 4.00 pm. This time is relatively early given the long hours of daylight in the peak summer season when evening visits might be attractive to some visitors

• Responsiveness - There were no negative responsiveness issues
•  Assurance - There were no assurance issues
• Empathy - Although a customer response form is available upon departure, it was not visible.

Final Statement

Kelly Tarlton's Sea Life Aquarium is a public aquarium opened in 1985 in Auckland. It is home to thousands of marine life, including penguins, sharks, stingrays, and octopuses. The overall customer service experience at Kelly Tarlton’s was very good. Despite the facility's rather tired and worn look, the aquarium is still fascinating. The enthusiastic, knowledgeable service provided by the staff adds to the experience. Given the evaluation results, it is considered that Kelly Tarlton’s Sea Life Aquarium provides a quality tourism experience.

Exceeding Customer's Expectations

If customer service is an organisation’s ability to meet its customers’ wants and needs, then excellent customer service is the ability of an organisation to exceed the customers’ expectations constantly and consistently. Suppose our goal is to exceed customer expectations. In that case, we must recognise that every aspect of our business impacts customer service, not just those aspects that involve face-to-face customer contact. Improving customer service involves learning customers' needs and wants and developing action plans implementing customer-friendly processes.

For example:

• Providing excellent customer service is one way a small business can distinguish itself from the competition.
• Improving customer service involves committing to learning customer’s needs and wants and developing action plans to meet those needs.

Communication between individuals is a process based on transmitting ideas and responses from one person to another. The communication process refers to a series of actions or steps to communicate successfully. It involves several components, such as the sender of the communication, the actual message being sent, the encoding of the message, the receiver and the decoding of the message. There are also various channels of communication to consider within the communication process. This refers to the way a message is sent. This can be through various mediums such as voice, audio, video, writing email, or body language. The overall goal of the communication process is to present an individual or party with information and have them understand it. The sender must choose the most appropriate medium for the communication process to work successfully.

Parts of the Communication Process

The communication process has several components that enable the transmission of a message. Here are the various parts:

• Sender: This is the person that is delivering a message to a recipient
• Message: This refers to the information the sender relays to the receiver
• Channel of communication: This is the transmission or message delivery method
• Decoding: This is the interpretation of the message. The receiver performs decoding
• Receiver: The receiver is the person who is getting or receiving the message
• Feedback: Sometimes, the receiver might receive a response from the sender. This starts an interaction.

How does the Communication Process Work?

To successfully communicate, it's essential to understand how the process works. Here are the seven steps in the communication process:

1. The sender develops an idea to be sent - the beginning of the communication process involves the sender creating an idea they plan to send to another person or group. Essentially, they plan the overall subject matter or information they want to transmit.
2. The sender encodes the message - once the sender develops an idea, they translate it into a form that can be transmitted to someone else. This means they transform the thoughts of the information they want to send into a specific format. For example, if you are writing a letter, you'll translate your idea into words. The message can also be nonverbal, oral or symbolic.
3. The sender selects the channel of communication that will be used - next, the sender decides how the message will be sent. This involves selecting the most suitable medium for the message they're relaying. Some communication mediums include speaking, writing, electronic transmission or nonverbal communication. Select the most professional communication channel if you're communicating at work.
4.  The message travels over the communication channel - after the medium is chosen, the message begins the transmission process. The exact process of this will depend on the selected medium. The sender should have selected the appropriate medium for the message to be correctly sent.
5. The receiver receives the message - next, the message is received by the recipient. This step in the communication process is done by hearing the message, seeing it, feeling it or another form of reception.
6. The receiver decodes the message and then decodes the sender's message. In other words, they interpret it and convert it into a thought. After this, they analyse the message and attempt to understand it. The communication process is performed effectively when the sender and receiver have the same meaning for the transmitted message.
7. The receiver provides feedback, if applicable - lastly, unless it's a one-way communication, the receiver will provide feedback in the form of a reply to the message's original sender. Feedback allows the recipient to ensure the sender that their message was received correctly and interpreted. Between two people, this is two-way communication.

^{Source: https://www.indeed.com/career-advice/career-development/communication-process}

However, at each stage of the transmission process, there is potential for interference. This is sometimes referred to as “noise” that gets in the way of the transmission and leads to misunderstanding or misinterpretation of the message. This interference can come in many forms, such as another conversation going on simultaneously, distraction caused by something happening around the sender or receiver, ambiguity in the message, actual noise interfering with the receipt of the message, and so on.

For communication to be successful, each communicator needs to be fully “tuned in” to the process to avoid misunderstanding and misinterpretation. Minimising interference and focusing on the communication process is the best means of ensuring successful communication.

Body Language

Body language uses physical behaviour, expressions, and mannerisms to communicate non-verbally. Body language is the unspoken part of communication that we use to reveal our true feelings and to give our message more impact.

A simple example of body language is a relaxed facial expression that breaks out into a genuine smile – with mouth upturned and eyes wrinkled. Equally, it can be a head tilt that shows you're thinking, an upright stance to convey interest, or hand and arm movements to demonstrate directions. Eye-to-eye contact is a powerful and effective “listening” tool. It shows interest, attention and understanding. It helps you assess the feelings of the customer. However, there are cultural differences as to how eye contact is perceived, and it is essential to avoid overdoing it. Too much eye contact can give the impression of staring. Being aware of body language in others means that you can pick up on unspoken emotions and reactions. It’s a valuable form of feedback, but it can easily be missed if you’re unaware of what to look for.

Gestures that are used for emphasis include:

• Open palm gestures rather than closed fists and pointing
• Nod to indicate understanding and empathy
• Lean forward slightly to communicate your interest
• Personal space of 2-4 feet is the most comfortable for most people.

It is okay to get closer if someone, for example, is demonstrating a product or reading a brochure. Sitting and using a table or desk can be more comfortable. Mirroring the customer’s posture and gestures indicates empathy. Care is needed, however, not to overdo it and appear to be mocking the customer.

Things to avoid using in body language include:

• Folding your arms
• Standing over customers
• Sitting while the customer stands
• Talking behind your hand
• Getting too close to a person, invading their personal space
• Using barriers to stand behind or leaning against something
• Watching something else happening in the room.

Watch this video

It is about the importance of body language. (2:10)

Questioning Skills

You use open and closed questioning when you ask questions to determine your customers’ needs and wants.

• Open questions gather information about the customer’s requirements
• Closed questions clarify something with a ‘yes’ or ‘no’ answer.

Closed questions are used to clarify or obtain one piece of information. Some closed-question examples are: 

• Can I help you?
• Is this a convenient time for you to talk?
• Will you be travelling alone?

Each type of question has its place but needs to be used at the appropriate time. Open questions start with the following:

• How
• Where
• What
• When
• Which
• Who
• Why

They are used in seeking information. Some open-question examples include:

• How does that fit with your programme?
• Which is the best option for you?
• When do you need this?

Handling Customer Complaints

The ability to LISTEN to a customer is often regarded as the most critical skill in customer service delivery. Similarly, research has shown that customers who have had a bad service experience list the wish that someone had just listened to them as their number one customer service complaint remedy.

1. The priority is to let the customer speak. Use active listening skills to reassure the customer that you are attentive to what they are saying. Listening involves more than just hearing their story; it is also about recognising signals and indicators of what is behind the story. Sometimes, the real problem is not explicitly outlined. Listening to a customer can provide helpful insights to improve systems or service issues that benefit others.
2. Allow the customer to finish venting. This allows them room to listen to you. When the customer has finished speaking, move to the next step.
3. Paraphrase their concerns. Rephrase it in your own words to ensure you have understood the issue correctly. This shows them that you are listening. For example, ‘So what you are saying is that your hamburger was raw and that you felt sick because of it’. Take notes if necessary to ensure you have understood all the essential points.
4. It is essential to remain calm even if the customer is angry at you. When responding to them, use a softer tone than the customer. This will have the effect of lowering their tone as well.
5. Invite the customer to sit down with you. If possible, move them away from public areas so you don’t have an audience of onlookers who may become drawn into the discussion. Avoid barriers such as desks or counters when sitting with an angry customer. Sitting at right angles to them makes it less confrontational than face-to-face.
6. Do not prejudge the situation – the customer is complaining for a reason.
7. Acknowledge the hurt and take possession of the problem. For example, “I can see how disappointing that must have been. I will do what I can to sort this out for you.”
8. Be transparent about the solution process. If you cannot solve the problem (due to lack of authority or knowledge), make a commitment that the customer will understand. For example, who, how, when – who the appropriate person is to deal with the problem; how they will contact the customer; when the customer can expect to be contacted. Always follow up with the person to whom you have referred the complaint to ensure that they have been in touch with the customer by the time you indicated. Remind them that the customer is waiting to hear from them if necessary.

Don't presume a customer complaint is a negative experience because, if handled well, it can be a valuable learning tool. It may also result in a loyal customer. An effective complaint-handling system needs someone in the company to drive it and take ultimate responsibility. The company can benefit in several ways, including:

• Improved product quality and service delivery
• Fewer mistakes and less time spent fixing them
• Better understanding of customer needs
• Greater customer loyalty
• More customers through word-of-mouth advertising from satisfied clients
• Less time and money spent attracting customers
• Improved business reputation
• A healthier bottom line.

Record Keeping

Keeping records of customer complaints can be a valuable management resource. The following procedures are good practice when dealing with complaints:

• Customer correspondence needs to be recorded and tracked
• Telephone logs of complaints need to be kept
• Staff should take notes during conversations
• Statistics on the number of complaints received and their method of resolution should be kept
• Comparison by month/quarter/year should be made
• Staff should be included in the review process
• Treat each complaint as an opportunity to learn
• Compliments should also be logged and shared with staff
• Surveys are a valuable way of measuring customer service performance
• Feedback should be recorded and compared.

Key Points for Complaints Procedures

The following points are resourceful in facilitating the company’s complaints procedures:

• Handle complaints immediately
• Train staff to handle complaints well
• Ensure the complaints procedure is easy for the customer
• Stay in touch with the customer. If the information does not arrive by the promised time, tell them!
• Send a follow-up message or small gift once the issue has been resolved
• Keep records and use the information to assist in staff development and procedures.

Emotional Quotient or Intelligence

Emotional Quotient (or EQ) is the emotional understanding and capability of oneself and others that help with differing situations and people. It is also sometimes referred to as Emotional Intelligence (EI).

A person with a high EQ tends to be more in tune and aware of their feelings. Usually, they are more empathetic and diplomatic, giving them desirable soft skills that positively impact their work environment.

Today, soft skills like emotional intelligence, empathy, and integrity are in growing demand for employees and leaders. Considered essential to the future of work, these emotional and social competencies are becoming a competitive differentiator for businesses. In 2017, a Deloitte report forecasted that “soft skill-intensive occupations will account for two-thirds of all jobs by 2030” and hiring employees with strong soft skills “could increase revenue by more than $90,000”. The Harvard Business Review’s 2016 Empathy Index demonstrated that empathy “is more important to a successful business than it has ever been”, correlating to growth, productivity, customer satisfaction and higher earnings.

The term ‘emotional intelligence' was popularised by psychologist Daniel Goleman, who has stated that self-awareness is the cornerstone of EI. Without it, individuals have little chance of demonstrating other competencies, such as empathy and adaptability, which are crucial to the hotel industry. To become more self-aware, one must constantly assess one’s feelings and moods. It is essential to understand why certain attitudes recur and what causes them.

External tourism customers are coming to the facility for an experience, whether staying overnight, an activity or something else. Making the customer feel prioritised, valued, cared for, listened to, etc., and anticipating their wants and needs requires a good deal of EQ. Being aware of your feelings, surroundings, actions, and body language provides excellent comfort to customers without anything being verbalised.

A team that displays and practices great EQ builds a fantastic working environment, naturally spilling over to the customers. A valued team member automatically instils positivity in themselves to their colleagues and customers.

Test Your Emotional Intelligence: How well do you read other people?

Answer the ten (10) questions below.

Now that you have learned about customer types and customer service's practical aspects, let’s look at the bigger picture. Many companies treat customer service differently based on their value system. Concerning customer service, there are two types of companies:

1. Inwardly (organisation) focused
2. Outwardly (customer) focused.

Inwardly Focused Companies

For these companies, the main concern is getting results for themselves rather than their customers. Recognition is more likely to go to staff who achieve company goals than those who provide good service. Team focus on making their managers happy rather than making their customers happy.

For inwardly focused companies, training concentrates on work skills and ignores skills for dealing with customers. Backroom departments with no customer contact do not understand their role in achieving customer satisfaction. Decisions are made at the management level and sent down without consulting front-line staff.

Customer requests are often met with responses such as:

• “We aren’t set up to do that for you.”
• “It’s not our policy to do that.”
• “I will need to check with my manager, but I don’t think we can do that.”

Outwardly Focused Companies

 

 

Outwardly focused companies consider the company’s interests (profits) and how best to serve its customers. They understand that profit and market share are enhanced by reacting to the customer’s needs.

In an outwardly focused organisation, staff get recognition for balancing efficiency with customer satisfaction. Management focuses on supporting staff to assist them in meeting customer needs. Training is a priority and includes both job skills and interpersonal skills.

Customer service skills are valued and are recognised for promotion. All staff know who their customers are (both internal and external) and know how they fit into the customer service chain. The company management style is participative, and staff input is taken on customer issues before making decisions.

Customer requests are met with responses such as:

• “I’m sure we can find a way to help you with that.”
• “That’s not how we would normally handle this, but let me see what I can do to accommodate you on this occasion.”
• “What can I do to make this work for you?”

An outwardly focused company will often have a Code of Customer Care that has several benefits:

• Communicates to customers what to expect in the service delivery
• Gives the organisation’s employees a clear idea of what is expected of them in serving their customers
• May also articulate what the organisation will do for the customer if the service delivery is not satisfactory.

Empowering Employees

Outwardly focused organisations actively seek to empower their employees to make decisions and solve problems.

Specifically, they will:

• Give employees the authority to identify and solve problems or complaints “on the spot”
• Decentralise decision-making or “flatten” the organisational chart to avoid top-down decision-making
• Have greater trust in subordinates and their judgments
• Make improvements in work processes when necessary.

These processes will become part of the company culture and will be reinforced at the human resources level through:

• Staff selection
• Orientation
• Training
• Motivating and retaining
• Empowering.