FINAL EXAM CSM452 NOTES

CHAPTER 1
- 5 NEEDS OF EVERY CUSTOMER

• SERVICE – Customer expect the service that they this is appropriate for the level of
purchase that they are making.
• PRICE – The cost of everything we purchase is becoming more and more important.
• QUALITY – Customers want the products that they purchase to be durable and
functional until customers decide to replace them.
• ACTION – Customers need action when a problem or question arises.
• APPRECIATION – Customers need to know that we appreciate their business. Saying
“thank you”.

- CUSTOMER ATTRIBUTE – Characteristic that allow customers to be categorized

according to demographic, psychographic, or firmographic information.

• DEMOGRAPHIC INFORMATION – Characteristic like age, income, marital status,

education, stage in the family cycle, home ownership, sex, zip code, occupation, ethnic
background, and religion
• PSYCHOGRAPHIC INFORMATION – Lifestyles, modes of living, needs, motives,
attitudes, reference groups, culture, social class, family influences, and hobbies.
• FIRMOGRAPHIC INFORMATION – Characteristic about a company such as how
many employees they have; the kind of business they are in, whether they are retail,
wholesale, or sale provider.
CHAPTER 2

- TECHNIQUES FOR EXCEEDING CUSTOMER’S EXPECTATIONS

▪ Become familiar with your customers – Get to know who they are and why they do
business with you. Find out their likes and dislikes.
▪ Ask your customers what their expectations are – Find out what they see as the
benefit of doing business with you. What would they like for you to do that are not
already doing?
▪ Tell your customers what they can expect – Convey to your customers your
commitment to them.
▪ Live up to their expectations – Follow through by accomplishing what you have said
that you would do.
▪ Maintain consistency – Do not promise what you cannot deliver, but always deliver a
consistent service.
▪ Communicate with customers using the method they want to use – If customers
prefer face-to-face communication provide that if they prefer online ordering or
assistance provide that.

- NEW TRENDS IN CUSTOMER SERVICE

▪ Accessibility for the customer

▪ Immediacy for response
▪ Feedback from customer-to-customer service provider
▪ Outsourcing of all or part of customer service functions
▪ Nontraditional examples of customer service
CHAPTER 3

- PROBLEM SOLVING PROCESS

1. IDENTIFY THE PROBLEM – Attempt to recognize and understand what the real
problem is.
2. UNDERSTAND THE PROBLEM’S UNIQUE CHARACTERISTIC AND THE
POSSIBLE OUTCOMES – The problems that must be solved by customer service
providers are frequently confounded by unique characteristic.
3. DEFINE THE REQUIREMENTS OF A POSSIBLE SOLUTION CONSIDERING
THE COMPANY POLICIES IN PLACE – Frequent request may have resulted in
policies being developed to promote consistency in solutions.
4. IDENTIFY POSSIBLE SOLUTIONS – Frequently, the success of the problem’s
solution has to do with the generation of more than one possible solution and the
selection of the best solution.
5. SELECT THE BEST SOLUTION – Selecting the best solution may be the most
challenging aspect of the problem-solving process.
6. IMPLEMENT THE SOLUTION, INFORMING THE CUSTOMER OF THE
DETAILS AND HOW THE CUSTOMER WILL BE AFFECTED – Putting the solution
into place is integral part of the problem-solving process.
7. OBSERVE AND EVALUATE THE SOLUTION’S IMPACT – After a solution has
been implemented, it should be observed and evaluated to determine whether it was
successful.

- PROBLEM-SOLVING STRATEGIES

❖ BRAINSTORMING
❖ DIAGRAMMING
I. Pro/cons sheet
II. Flowcharts
III. Organizational chart
IV. Mind mapping
- BARRIERS TO PROBLEM SOLVING AND DECISION MAKING

☺ RESISTANCE TO CHANGE – People are often reluctant to change from the time-
honoured way of doing things.
☺ HABITS – Habits limit our vision of what can be accomplished and may stand in the
way of solving a problem.
☺ INDIVIDUAL INSECURITY – Individual insecurity may deter individuals from
taking risks or from pursuing behaviour that may require them to take a stand.
☺ PAST HISTORY – Knowing what has happened before and what worked and did not
work can inhibit an individual’s desire to try new methods or problem solving or
decision making.
☺ FEAR OF SUCCESS OR FAILURE – At some time, everyone experiences some type
of fear.
☺ JUMPING TO CONCLUSIONS – When problems must be solved and decision made,
it is easy to jump to conclusions.
☺ PERCEPTIONS – As we stated, perceptions are the ways that we see things based on
our experiences.
CHAPTER 4

- INFRASTRUCTURE – Made up of the networks of people, physical facilities, and

information that support the production of customer service.

- HIGH-TOUCH AND LOW- TOUCH CUSTOMERS

o HIGH-TOUCH
 Require a high level of customer interaction.
- EXAMPLES OF HIGH-TOUCH
Bank lobbies
Specialty stores
Hotel lobbies
Purchase of real state
Lawyers and accountants
Prestige restaurant

o LOW-TOUCH
 Expect a low level of customer interaction.
- EXAMPLES OF LOW-TOUCH
Automatic teller machines (ATM)
Express car rental
Pay-at-pump gasoline.
DIY copy shops
Online bill paying and account management.
Self-checkout
Downloading of music or ringtones
CHAPTER 5

➢ COPRODUCTION – When customers participate in providing at least a part of their

own customer service.
• EXAMPLES OF COPRODUCTION
1. Salad bars (make your own salad as you like it)
2. Free beverage refills that you get yourself.
3. Self-service copy shops
4. Payment at the pump for gasoline
5. Telephone customer assistance lines

➢ GUIDELINES FOR SYSTEM DESIGN

1. IDENTIFY – An area in need of a new procedure or a system update.

2. LIST – The steps necessary to create or improve the system.
3. REVIEW – The mission and purpose statement to make sure that you stay on track
with the company’s goals.
4. SEEK TO EMPOWER – Those involved, both providers and customers.
Eliminate unnecessary steps.
5. CREATE A CULTURE that support empowerment.
6. EVALUATE THE SYSTEM’S EFFECTIVENESS – After it has been in
operation for a specified period.
CHAPTER 6
➢ METHODS OF COMMUNICATION:

a. Listening – The ability to hear and understand what speaker is saying.

b. Writing – Communication by using the written word so that others can understand
the intended message.
c. Talking – Speaking, using words and terminology that others can comprehend.
d. Reading – The ability to look at and comprehend the written word.
e. Nonverbal expression - Tone and inflection of voice, facial expressions, posture,
and eye contact. Nonverbal communication can contradict the message conveyed
through another method of communication.

➢ LISTENING
• To listen to your customers is to show them that you care about and respect their
questions and concerns.
• Listening is a skill that must continuously be developed.
• May be distracted from what is being said, may have a closed mind to the speaker
and the message, may not stop talking, or may be lazy and unwilling to make the
commitment to be a good listener.
• Wait until the speaker has stopped talking before you determine your response.
• A good listener:
o Conveys sincerity. (Show facial expression)
o Does not interject his or her own thoughts.
o Nod head.
o Does not finish the sentence for the speaker.
o Paraphrases what was said. (Conclude in the short sentences)
o Leans toward the speaker. (Focus)
o Share positive comments.
o Shows good eye contact.
CHAPTER 7
➢ CUSTOMERS WITH SPECIAL NEEDS:
• When communication with someone with a disability, consider the following:
o If a person has a hearing loss, speak directly to the person. If they have an
interpreter or assistant with them, acknowledge them but continue to speak to
the customer.
o Speak clearly and slowly, facing the individual.
o Include appropriate facial expressions since people who are deaf depend a lot
on facial expressions and gestures for communication cues.
• If a person is in a wheelchair, try to communicate with them at eye level. Do not
touch the wheelchair or any walking appliance. This would be considered a
violation of their personal space.
• If a person is visually impaired, never play with or talk to a guide dog; you will
distract the animal from its job.
• If a person has a speech impediment, be patient and listen carefully. Avoid the
temptation to finish their sentences for them.

➢ EMPATHY – The ability to understand what someone is experiencing and to take

action to assist in resolving the situation.

➢ SIX SUPER WAYS TO COPE WITH CHALLENGING CUSTOMERS

o LISTEN – Allow customers to express their concern or to share their side of the
story.
o ASK QUESTIONS – Seek clarification of the problem. Determine the variables
involved.
o SHOW EMPATHY – Attempt to understand what the customer is experiencing
and take action to assist in resolving the situation.
o SOLVE THE PROBLEM – Determine the most appropriate solution to the
situation. Use creativity and follow company policies as you seek to create positive
outcome for both the customer and your organization.
o FOLLOW UP – Restate what has been decided and how the situation is being
resolved. Ask the customer if he/she has any more questions.
o END ON A POSITIVE NOTE – Thank customers for their understanding.
Customers are more likely to remember the end of an interaction than the beginning.
CHAPTER 8
➢ UNDERSTANDING OF MORALE
▪ Morale is an individual’s or group’s feelings or attitudes towards a job, supervisor,
or company.
▪ Two types of morale:
o HIGH MORALE
o LOW MORALE

❖ HIGH MORALE – May result when employees are feeling good about their work,
a high level of overall satisfaction occurring, and employees are secure in their jobs.
▪ Employee loyalty and dedication are strong.
▪ Supportive management
▪ Unified work environment
▪ Individual, department, or corporate success

❖ LOW MORALE – When employees and, possibly, management are feeling less
positive about their work and organization.
▪ Poor management
▪ Negative sharing their dissatisfaction with others
▪ Company’s uncertain future
▪ Rumoured layoffs
▪ Too much work or overtime
▪ Smaller than expected salary increases.
CHAPTER 9
➢ CHARACTERISTIC OF EXCELLENT LEADERS
• The characteristic that describes excellent leaders are varied.
• Everyone has his/her own definition of what it takes to be an outstanding leader,
some characteristics are important to all definitions.
• Excellent leaders:
o Show care and respect.
o Practice what they preach.
o Have expertise in the area in which they are working.
o Practice consistency.
o Behave professionally.
o Allow employees to do what they have been empowered to do.
o Give support.
o Demonstrate flexibility.
o Make time for others.
o Are personable.
CHAPTER 10

➢ WHAT IS CUSTOMER RETENTION?

❖ The continuous attempt to satisfy and keep current customers actively involved in
conducting business.

➢ MEASUREMENT OF SATISFACTION:
▪ Creating a format for measuring customer satisfaction,
☺ Who are the customers?
☺ How did they begin doing business with your company?
☺ Where are they located?
☺ Where did they conduct business with you (if there are multiple locations)?
☺ When did they conduct business?
☺ What did they like about the experience?
☺ How can we do a better job?

➢ SOURCES OF INFORMATION
 Information surveys – Informal surveys can provide insights about what
customers like and dislike.
 Comment cards – The use of comment cards is one of the most popular
methods of determining a customer’s satisfaction.
 Verbal comments – Easy to collect, but they are often ignored.
 Historical data (point of sale) – With the use of customers in most workplaces,
it is easy to collect historical data.
 Sales – Like historical data, sales do not show emotion, but they do show what
customers are currently doing.
 Corporate-generated surveys – Many corporations generate surveys that are
sent to their customers.
 Discussions with internal customers – Internal customers frequently have
information about what customers like, do not like, and are interested in.
 Focus groups – Random groups of customers or prospective customers who are
brought together to discuss current or future offerings of a business.
 Toll-free phone numbers – Should be answered promptly by knowledgeable
employees who are well trained in answering customer questions and in
responding to customer concerns.
 Customer intelligence information – Customer intelligence is the process of
gathering information; building historical database; and developing an
understanding of current customers.
CHAPTER 11

➢ TODAY’S CHANGING MARKETPLACE

▪ Social media – Electronic communication used by consumers to share ideas,
information, opinions, and personal message.

➢ HELPFUL TIPS TO USE SOCIAL MEDIA

• Express appreciation to customers for referrals. Congratulate them on successes or
new opportunities and affiliations.
• Share information, not a heavy sales pitch.
• Use status updates to remind customers of upcoming deadlines, events, and
opportunities.
• Link to other resources whether offered by you or not. Especially, YouTube videos,
articles that mention your business or product, important links, etc.
• Share what is trending in your market, such as, books, products, topics, new
information, and interesting tie-ins to your business.
CHAPTER 12

➢ REWARDS OF PROVIDING EXCELLENT CUSTOMER SERVICE

• Customers approach business expecting a positive experience.
• Work is more personally fulfilling.
• Customers act as coproducers (when appropriate) in assisting in the provision of
their own customer service.
• A unique competitive edge is achieved.
• Customer challenges are recognized, and productive solutions are developed to
successfully retain current customers.
• Problems are creatively solved in an effective and efficient manner.
• Profits goals are more successfully accomplished because business philosophies
and focus are on satisfying customers.
• Businesses earn a positive reputation and the respect of customers and peers.