MNM1502
NOTES
,Understanding Customer Service: Study Unit 1
1.1 Introduction to customer service
1.1.1 Customer service can be defined as:
The process whereby value is added by delivering service to internal and external customers in support of the organisation’s core
products and service offerings, whenever customers engage with the organisation.
1.1.2 Customer: Recipient of Goods and services from a supplier.
Any organisation has two types of customers - internal customers and external customers.
Internal External
Customers Customers
the groups of individuals who work inside the groups of individuals outside the
an organisation and with whom other organisation that the organisation does
employees interact on a daily basis. business with
Examples: Examples:
● An individual buying bread at a spaza shop. Tebogo walks into a fast-food outlet to order a chicken meal. Brouly is
● Paying a hairdresser to do your hair the friendly employee who greets Tebogo and takes his order. Tebogo’s
● Sending an e-mail to an insurance order is processed on the system and the kitchen staff starts to prepare
organisation his meal.
● Phoning a bank about a blocked account
In the scenario: Brouly is the internal customer as his service depends
on the kitchen’s staff to prepare Tebogo’s meal.
,External customers all have different wants and they can be categorized into five basic needs.
1. Service: customers tend to expect a certain level of service which they think is appropriate in accordance with the size of the
transaction they make.
2. Price: people have limited financial resources and therefore want to spend their money wisely and efficiently as possible.
3. Quality: Customers have a need to buy quality products – products that are durable, functional and will last for a reasonable
time.
4. Action: customers are looking for action. They want to see the organisations are willing to act and react by making toll-free
numbers or e-mail addresses available where they can log problems or queries.
5. Appreciation: customers want to feel valued and special. They want to hear words like thank you for supporting the
organisation.
, 1.2 Importance of Excellent Customer Service
Benefits of providing excellent customer service / customer satisfaction
1. Lower Customer Acquisition cost
2. Higher levels of customer retention
3. More profitable
4. Increase in sale/revenue
5. Cost savings
6. Generating positive word-of-mouth
7. Willingness to pay a premium price
8. Higher employee morale, leading to an increase in productivity
Characteristics of excellent customer services that organisation possess.
1. Customer service is a team effort.
2. All necessary process should be in place.
3. Organisations that continually look for new ways to improve their customer service.
4. Customer service should be the organisations main selling point.
5. Building relationships with customers.
6. Using the latest technology.
NOTES
,Understanding Customer Service: Study Unit 1
1.1 Introduction to customer service
1.1.1 Customer service can be defined as:
The process whereby value is added by delivering service to internal and external customers in support of the organisation’s core
products and service offerings, whenever customers engage with the organisation.
1.1.2 Customer: Recipient of Goods and services from a supplier.
Any organisation has two types of customers - internal customers and external customers.
Internal External
Customers Customers
the groups of individuals who work inside the groups of individuals outside the
an organisation and with whom other organisation that the organisation does
employees interact on a daily basis. business with
Examples: Examples:
● An individual buying bread at a spaza shop. Tebogo walks into a fast-food outlet to order a chicken meal. Brouly is
● Paying a hairdresser to do your hair the friendly employee who greets Tebogo and takes his order. Tebogo’s
● Sending an e-mail to an insurance order is processed on the system and the kitchen staff starts to prepare
organisation his meal.
● Phoning a bank about a blocked account
In the scenario: Brouly is the internal customer as his service depends
on the kitchen’s staff to prepare Tebogo’s meal.
,External customers all have different wants and they can be categorized into five basic needs.
1. Service: customers tend to expect a certain level of service which they think is appropriate in accordance with the size of the
transaction they make.
2. Price: people have limited financial resources and therefore want to spend their money wisely and efficiently as possible.
3. Quality: Customers have a need to buy quality products – products that are durable, functional and will last for a reasonable
time.
4. Action: customers are looking for action. They want to see the organisations are willing to act and react by making toll-free
numbers or e-mail addresses available where they can log problems or queries.
5. Appreciation: customers want to feel valued and special. They want to hear words like thank you for supporting the
organisation.
, 1.2 Importance of Excellent Customer Service
Benefits of providing excellent customer service / customer satisfaction
1. Lower Customer Acquisition cost
2. Higher levels of customer retention
3. More profitable
4. Increase in sale/revenue
5. Cost savings
6. Generating positive word-of-mouth
7. Willingness to pay a premium price
8. Higher employee morale, leading to an increase in productivity
Characteristics of excellent customer services that organisation possess.
1. Customer service is a team effort.
2. All necessary process should be in place.
3. Organisations that continually look for new ways to improve their customer service.
4. Customer service should be the organisations main selling point.
5. Building relationships with customers.
6. Using the latest technology.
