CRM- ASSIGNMENT- Written Test

Learner Name Sameer

ID
FIAT/UGR/23-24/5
Course Title Customer relationship management

Assessor Name

Internal Verifier Name Date 25/01/2024

Unit Number and Title CUSTOMER SERVICE
Assignment Title Customer Service
Outcome
Number(s) Examine the importance of Customer Service.
and Statement(s)
Date Set Hand In Date

Instruction Your assignment will not be accepted if it does not contain the list of
source details of the text material referred to and the details of the people
contacted in accomplishing this project and the tasks attached.

Purpose/Aim Explain ways in which the needs of different types of customers are met.
Examine the importance to customers, the employee, and the organization of
exceeding customer expectations.

I confirm that the work submitted for this assignment is my own.

DEEPANS
HU
CHAUD

Learner name
FIAT/UGR
Reference id /23-24/256 06/01/2024
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Back Ground work:

As an integral part of your Customer Service module, you are required to visit any Customer service
outlet--a shopping mall/an individual vendor/a super market/a daily ‘bazaar’/a restaurant/a theatre/a
travel agency/a ticketing counter of the Railways or Ferry Service or any other service outlet – In
person or Online.

You are required to have a verbal/ virtual chat transaction with the concerned service provider with
or without the purpose to actually purchase, but definitely with the objective to record your
experience in the process as an external customer as well as your observation of the internal
customer behaviour. You will focus on Customer behaviour, the basic needs of a Customer,
Customer Satisfaction and Customer delight aspects including both external and internal
customers. You may record your experience as a brief PPT presentation /MS word write up
presentation in the following format:
• Introduction
• Acknowledgement
• Reference
• Conclusion

On the basis of the above project, you are required to answer the given Questions.

Guidelines: Students to attempt the below questions for getting PASS/ MERIT/ DISTINCTION
1. Write your responses in the space provided below the questions
2. Review your answers before submitting the Assignment

TIMELINE: You can take upto One Week to submit the Assignments-

PIC
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Question 1. Define Customer and Customer Service. Describe External and Internal Customer,
with examples from the project work. Identify different types of external customer (PASS)
Ans.

A customer is an individual or business that purchases another company's goods or services.

Customers are important because they drive revenue; without them, businesses cannot continue
to exist.

Customer service is the act of taking care of the customer's needs by providing and delivering
professional, helpful, high-quality service and assistance before, during, and after the
customer's requirements are met. Customer service meets the needs and desires of any
customer.

What is an external customer?

External customers are the people that pay for and use the products or services your company
offers. When brainstorming problems and designing solutions, these customers are who you’re
designing for.

To be clear, an external customer is a person who is not directly connected to your organization
other than by purchasing your product or service. This customer could be a one-time purchaser
or a person who’ve you worked with long-term and to whom you’ve provided add-ons or
customization options. External customers are also known as “clients” or “accounts.”
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What is an internal customer?
Internal customers have a relationship with, and within, your company, either through
employment or as partners who deliver your product or service to the end user, the external
customer. Less obvious but certainly still significant, stakeholders and shareholders are also
internal customers. All of these may or may not purchase your product or service.

External Customers
These are the people or organizations that buy what an individual or an organization sells. The
concept is simple enough to be illustrated by a few examples:
A person buys a car from a new car dealer (that person is the new car dealer's
customer).

A couple have dinner at an exclusive restaurant (the couple are the restaurant's
customers).

A consultant prepares a market trend analysis for a motorcycle manufacturer (the

motorcycle manufacturer is the consultant's customer).

A defense contractor manufactures a weapon system for the Department of Defense

(the Department of Defense is the defense contractor's customer).

Question2.Demonstrate the methods/strategies used to identify the customer need. Analyze and
discuss the basic needs of a Customer and present your findings on the same from the project
that you have done. (MERIT)

Ans. What are customer needs?

Customer needs are defined as the influential factors that trigger them to buy your product or
service. In order to identify customer needs, it is important to understand the reasons behind
their decision making.
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In order to understand customer needs better, it’s very important to know who your customers
are. By defining your target audience and segmenting them based on their industry or other
attributes, you not only get a clear view of what’s your selling proposition but also identify their
needs.
Here are four simple steps to follow in order to meet customer needs successfully.

• Identify – Follow customer needs analysis via surveys, interviews, focus groups, or social
listening.
• Distribute – Once identified the needs, you can distribute it across the right teams and
departments.
• Create – Tailor product features, create detailed content that speaks about customer
needs.
• Collect – Obtain customer feedback regularly to learn how your efforts meet their
expectations.

Why is it important to identify customer needs?

Businesses are taking strides to understand customer needs and meet them as early as possible
to align with internal teams. 76% of customers expect companies to understand their needs.

With business operating under a cyclical process of anticipating, and meeting customer needs,
you can have quick and positive results. Prior to your business promotions or product launch, it
is vital to know your customer needs and wants. Conducting market research can greatly help
you to understand your potential customers.

The more you know about your customers, it helps you define your brand positioning around
their needs and help your business in the following ways:

• Provide faster solutions – One of the common things customers want is real time
support. By identifying the needs of your customers you can provide faster and effective
support.
• Improve your products & services – Customer research helps understand the motives
behind the buying process. You can learn about the areas you are missing out and
create an effective USP. The insights can be used to enhance the products or services to
satisfy customer needs.
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• Reduce the number of support tickets – Building the product and services considering
the needs of the target customers ensures effective solutions to customer issues.

How to identify customer needs?

Recognizing customer needs includes deep research across your industry and asking your
customers lots of specific questions. It is very important to gather in-depth details from your
customers through regular communication and be sure you can deliver on their individual n

What is the customer needs analysis?

It refers to a comprehensive analysis that can benefit your business to understand what value
your customers want from your products or services. It provides valuable insights about your
target audience that can be inculcated within the brand positioning to make sure that delivers
great customer value.

Effective customer needs analysis depends mainly on two factors. Firstly, to create customer
personas and identify what customer inputs are needed to create breakthrough products and
the second is to know how to capture customer inputs and feedback.

Conducting customer research to understand the factors that influence purchasing decisions
can be done by:

• Customer interviews – It is the direct way of collecting customer inputs. You can
interact directly with customers who are using your product or who have chosen to buy
it. It is considered to be reliable over other ways of acquiring inputs.
• Focus groups – Focus groups comprise a small group and focal point is a specific product
or topic. The groups emphasize qualitative or quantitative surveys because it provides
more opinions and motivations.
• Surveys – The analysis done through surveys help businesses to get a picture of their
position in the market in terms of fulfilling the needs of their target customers.

The case study video speaks about the importance of identifying customer needs:
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Types of customer needs

Businesses ought to understand customer needs as it is vital to match the competitive market
place. Broadly, customer needs are about delivering a better experience by exceeding their
expectations. When you anticipate what your customers want, you can create content, expand
your product features or services to meet those needs early.

Types of customer needs

Customer needs can be classified on the basis of customers of the market demographics.
However, customer needs can be bifurcated under two verticals.

Product needs

Product requirements are associated with and around the product. If your product matches
your customer needs they become your potential buyers and vice-versa. The main attributes of
product needs can be:

• Price – Customers generally set their budgets for any product purchase.
• Features – Customers look for features that would solve their problem and reliability in
functioning while using the product.
• Effectiveness – The product should be effective in streamlining the process to save time.

Service Needs

Service needs refer to the emotional needs of the customers. Being able to quench the
customer service needs, can give your business a competitive edge and set good example for
other brands to follow. The key attributes of good service can be:

• Empathy – Customers stick to brands that serve them with an empathetic attitude.
• Clarity– Customers look for transparent information from the brand related to pricing,
refund policy, etc.
• Information – Customers need information from the point of interaction until the end.
Build FAQ pages, Knowledgebase, how-to videos to educate the customers
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Good examples to meet customer needs

Addressing customer needs is critical for any business that focuses on customer retention in
order to create good examples. Because, as important as the discovery phase is, knowledge
about what your customer needs from you is only as good as the way you use it.

Let us discuss the best practices of how to meet customer needs and build stronger
relationships.

1. Deliver quality customer support

Not always “good product quality” is what customers look for. Customers prefer brands that
offer real time support. So, your support teams should focus on providing frictionless service
experience and improve customer handoff.

When customers get what exactly they need, there is an increase in the satisfaction rate. If you
focus on putting extra effort towards exceeding customer satisfaction , it will certainly be
worthy. You are able to delight your customers with excellent service.

How can you enhance your customer support quality?

• Provide real time support – You can connect with your customers with live chat to
deliver real time assistance for sales and support queries.
• Use live assistance solutions – By using tools like co-browsing and video chat, you can
provide faster solutions by reducing the number of touchpoints.

2. Map your customer journey

You can map your customer journey to get a visualization of the process they go through when
engaging with your products or services.
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Mapping journeys include multiple phases and touchpoints the customer goes through, right
from prospect to loyal customers. It helps you to streamline fragmented efforts and identify
points of friction and opportunities for improvement.

Identifying and meeting customer needs in the whole journey are all about providing a
delightful experience that will further cultivate loyalty.

3. Measure customer satisfaction regularly

To know how happy your customers are with your overall business you need to measure it on a
regular basis. Choosing the right communication channels and customer satisfaction metrics is
crucial.

4. Be consistent in customer communication

Inconsistent customer service is among the top frustration reported by customers. If your
representatives are unable to deliver consistent assistance, there are chances that consumers
feel confused and alienated.

It takes no time to create a negative impression on your customers and shows that your
business strategies are not organized. You can meet your customers’ requirements if you make
the right efforts to understand the goals and capabilities of the company.

5. Develop a customer centric culture

One great way to meet your customer needs is to create a company culture that is focused on
customer experience at every touchpoint.
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The customer experience (CX) is the major differentiator for every business, but creating a great
CX isn’t that easy.

6. Enhance the USP of your product

Every business needs a reason for its customers to buy from them over their competitors,
which is known as a Unique Selling Proposition (USP).

A good product is anything that can be offered to a market for attention, acquisition, or
consumption satisfies customer needs. Product quality is the characteristic that bears on its
ability to satisfy implied customer needs. The USP of your product can be effective to
differentiate your brand when the customers are making their buying decision.

The product quality speaks for itself. If your products are built across helping customers to
resolve their issues faster, it will attract them and keep them coming back.

7. Ask customer feedback

Customer feedback is a vital ingredient for the success of every business. It helps to enhance
your products and services to better suit the needs of your customers. This will then raise the
chances of the purchase of your improved products or services.

Final thoughts on customer need analysis

When you start prioritizing customer needs, you need to identify them successfully in your
products and services. When customers are able to relate your brand along with their needs,
they are highly satisfied. Being able to deliver a great experience grows your customer base of
loyal customers.
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Question3. Identify, analyse the bottleneck of customer problem and implementation of solutions to
exceed the customer expectations and enhance the customer satisfaction. Correlate Customer
Expectation, Customer Satisfaction and further, Customer Delight in the process…How do you think
Customer perception is related to service evaluation?
(MERIT)

Ans. Bottlenecks are a sign of inefficiency—they impede your business operations from properly
flowing. When it comes to sales, bottlenecks can be especially dangerous because they
negatively impact your bottom line. Delays, inconsistencies, and oversights can veer potential
customers off the path to purchase, leading to revenue loss.

With a few straightforward process changes, and by leveraging technology, you can progress
toward eliminating bottlenecks to better optimize your time and resources—but first, you have
to know what to look for.

Flow Charts • Example :- Use a flow chart to help you identify where bottlenecks are occurred.
• For example: • Step 1 – Goods are manufactured at the factory. • Step 2 – Goods are loaded
onto the truck. • Step 3 – The warehouse is notified about the truck's arrival time. • Step 4 –
The warehouse schedules a forklift for the expected arrival time. • Step 5 – The truck arrives at
the warehouse, and unloading starts. • In this case, the delay occurred because Steps 3 and 4
were missing, and this led to a long wait between Steps 2 and 5. Creating the flow chart before
investigating the problem would have helped you quickly see where your process broke down.

Customer expectations and satisfaction are closely related. Customers feel less satisfied when
they expect something from a company but do not get what they expected. On the other
hand, if they have low expectations of a company and are pleasantly surprised, they may
feel more satisfied than if they had high expectations and feel they have been let down.
Interestingly, companies are not always able to accurately predict what customers will
expect from them, and systems of gathering and analyzing feedback are typically important.
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Often, a customer's level of satisfaction is dependent on the expectations he has for a

company. For example, if he expects a company to offer prompt service, but he encounters
delays in the processing of his order, he may feel unsatisfied. Likewise, if he believes a
company will provide a quality product and his purchase seems cheaply made, he may feel
unhappy. Additionally, a customer may feel dissatisfied with a company if he believes his
business is valued, but a company proves otherwise by allowing its employees to ignore him,
behave rudely, or fail to respond appropriately to complaints.

Most people think that customer satisfaction and customer delight are the same thing, but they
aren’t. Even through the definition of the adjectives, it’s easy to tell the difference. Being
satisfied with something is clearly not the same thing as being delighted. Satisfaction means
that your expectations have been met, whereas delight means that you are extremely happy
and joyous, which is presumably because your expectations have been exceeded.

Question 4. Analyse customer Satisfaction, Customer Delight, and Customer Retention.

(MERIT)

Ans. Customer satisfaction (often abbreviated as CSAT) is a term frequently used in marketing. It
is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its products, or its
services (ratings) exceeds specified satisfaction goals." Customers play an important role and are
essential in keeping a product or service relevant so it is in the best interest of the business to
ensure customer satisfaction, and build customer loyalty.

Step 1: Define your target group Before starting a customer satisfaction analysis, the target
group must be defined...
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Step 2: Design of the Questionnaire Once it is clear who is to be interviewed, the appropriate
questionnaire for a...

Step 3: Evaluate the data The evaluation of a customer satisfaction survey is based on a
descriptive analysis. Mean...

Step 4: Drawing conclusions

Customer delight differs from customer satisfaction in one very crucial way: it's about
exceeding a customer's expectations, or going above and beyond, rather than just simply
providing a satisfactory experience that met expectations.

1. Listen. You'd be surprised how many little things you can pick up on if you're listening closely
instead of formulating your answer. Your delight moment may come from a simple comment
made by a customer that you can fulfill with ease.

2. Surprise. You want your customers to be wowed; that's where the delight comes in. Give
people something unexpected and build spontaneity into your business practices.

3. Give. We're not talking about money or stuff here but rather time, space, and contact. Work
efficiently for your consumers, but give them room to process information you've provided and
a specific contact person they can reach out to when they're ready.

Customer retention refers to the ability of a company or product to retain its customers over
some specified period. High customer retention means customers of the product or business
tend to return to, continue to buy or in some other way not defect to another product or
business, or to non-use entirely.

1. Reduces cost to acquire customers

It’s much cheaper to keep an existing customer than it is to earn a new one. In fact, it can
be five times more expensive to attract a new customer, than to keep an existing one.
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Stay best friends with your loyal customers, as they are extremely valuable. Once you know
why your happy customers stay and why some leave, you can take the right measures to keep
the right customers.

2. Easier upsell/cross-sell opportunities

It goes without saying, but your existing customers are much easier to market and sell to.
Consider that usually, there are no huge customer acquisition costs associated with selling a
new product or service to your existing customer base.

3. Facilitates sustainable growth

Keeping existing customers allows for more sustainable growth. increasing customer retention
rates by 5%, can increase profits by anywhere from 25% to 95%. It’s clear that retaining existing
customers makes the most business sense, but doing so isn’t quite that simple. One way many
companies are finding a competitive advantage is through customer retention analytics.

Question 5. Assess the different Customer Service skills that you noticed (external and internal)
during your project. Evaluate your own aptitude towards serving another human being.
Demonstrate the customer handling skills with example in Rater Model (Reliability, Assurance,
Tangibles, Empathy & responsiveness) (DISTINCTION)
Ans. Empathy
Communication skills

Product knowledge

Problem-solving skills

Patience

Positive attitude

Positive language

Listening skills

A willingness to go the extra mile

Personal responsibility
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Confidence

Tenacity

Authenticity

Adaptability

Attentiveness

Reliability
Is the organisation able to deliver the agreed upon services consistently, accurately and on
time? This concerns the quality of the reliability and the way in which the customer can rely on
it. If it turns out that a provider is not able to deliver Internet services without issues, the
organisation’s reliability will decline.

Assurance
Are employees able to convincingly communicate their knowledge to the customers? Does the
customer trust what the employees have to say and do they feel the employees can give them
helpful advice? When the information about an interest tax deduction for an expensive
mortgage turns out to be inaccurate, both the bank’s and its employee’s credibility will diminish
rapidly. The customer might even go to a different bank for his mortgage.

Tangibles
Are the physical aspects of the service appealing? Think for instance of the office, website,
equipment and employees looking reliable. If a customer is selecting a health insurance plan,
but ends up on a website that looks unprofessional, that customer will probably opt for a
different insurance company.

Empathy
Are employees able to empathise well with the customers and give them individual attention?
How is the relationship between employees and their customers? If a customer has a complaint
about a considerable delay at an airline, he wants to feel heard by the employee. If there is not
even a shred of empathy in the employee’s response, the customer will be disappointed and
decide never to fly the airline in question again.

Responsiveness
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To what extent can the organisation offer quick service and to what extent is the company
willing to help customers? Quality service is paramount. If a commercial training institute does
not pay enough attention to a customer who requested more information about a specific
study programme, chances are the customer will look for a different school. After all, the
customer wants to start the programme within a month. If it takes a month just to get a
response, he is likely to have found another study programme.

Question 6. If you were in the place of the service provider that you noticed in the project,
how differently would you render service to your customers? What changes would you try
bringing in and how would you implement the same? (DISTINCTION)
Ans.
If I was in the place of the service provider I would firstly try to give more benefits to my employees, so
that they don’t feel that all the benefits are only available to the customers and not to them. • I would
try to implement changes like promoting public relation • Increase the advertising methods etc……… • I
would see that rare forms of business personally seen in the other shops • And sending the discount
offers to customers by through sms • For staff I will train much more skills to interact with customers • I
would motivate my employees to perform better, keep good conditions like available exchange offer,
discounts, free samples, etc., etc.

Question7. How would you handle an angry customer? Explain with reasoning. (DISTINCTION)
Ans.

TRY TO REMAIN CALM THROUGHOUT

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Some people find it easier to stay calm when fielding customers' phone calls rather than dealing
with them in person. Even if there is no physical threat, some people struggle to read body
language and generally find it intimidating when being in a challenging interaction with
someone who is angry or disappointed. Remembering that there is a way to resolve any issue is
important and recalling difficult situations that have been resolved before reminds your brain
that this anger is just temporary.

Everyone has different ways of staying calm and doing so may get easier with experience. If you
really don't find the situation manageable, consider whether you have a colleague or supervisor
who can help. Their presence might be enough to calm you down.

BE UNDERSTANDING AND DIFFUSE THE SITUATION

Whether your customer's issue is legitimate or not, you should try to be understanding and
diffuse the situation. The reason a customer is getting angry is usually to make a statement and
try to communicate urgency; they want the issue resolved. One of the best ways of dealing with
angry customers is to quickly make sure they know that you are taking the issue seriously. This
will usually calm down the situation or at least buy you some time to get to the bottom of the
customer's concerns.

Promising to look into a problem immediately is a good way to try to diffuse the situation. A
customer's anger may instantly reduce if they know that you are immediately going to look into
the issue and try to deal with it.

APOLOGIZE

This is probably the most simple tip on the whole list. An apology costs nothing and doesn't
even have to be an admission of any sort of wrongdoing. Not apologizing quickly can make your
customer feel like you really don't care about the issue they are having.

TREAT ONLINE COMPLAINTS WITH THE SAME SERIOUSNESS

Have you ever heard the saying, "The squeaky wheel gets the grease?" In some businesses, it
can be really easy to ignore the complaints you get on social media. A "real person" on the
phone or visiting your business feels like a more immediate concern. However, the complaints
online are just as legitimate and also incredibly prevalent. Many studies estimate that most
people who have a negative experience now take to social media in some way, shape or form
to communicate their problems and hold staff accountable.

FOLLOW UP AND FIND THE ROOT CAUSE

Dealing with angry customers can be an opportunity to learn. Follow up with the customer to
check if their issues were resolved. Not only does this show that you care and increase the
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chances of customers coming back to you, it helps you to evaluate why the issue happened in
the first place and avoid the same things happening in the future.