Business - 9225 OxfordAQA

Good Customer Services

Overview

Two shops on the same street in Kumasi sell the same phone at the same price. In the first, the assistant hands over the box and turns to the next customer. In the second, the assistant asks what the phone is mainly for, points out that the model on the shelf above holds its charge longer for the same money, sets up the email account at the counter, writes a number on the receipt to call if anything goes wrong, and says come back in a week and we will check it is running properly. Both shops made one sale today. Only one of them has any idea what will happen next year.

This lesson is about the difference between those two counters and what it is worth in money. You will learn the three methods of good service the specification names, work out why keeping an existing customer is so much cheaper than finding a new one, put a figure on what a dissatisfied customer actually costs, and see how websites, e-commerce and social media have changed customer service from something that happened in a shop into something that happens in public, at any hour, where everyone can read it.

Objectives

  1. Methods of good service:
  2. product knowledge
  3. customer engagement (creating a positive experience for the customer)
  4. post-sales services (eg user training, help lines, servicing).
  5. Benefits of good customer service and dangers of poor customer service to businesses.
  6. The ways in which ICT has allowed customer services to develop:
  7. websites
  8. e-commerce
  9. social media.

Mind map

This topic is mapped out so you can see how the ideas connect.

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Lesson Note

Nothing separated those two phone shops on the day of the sale. Same stock, same price, same margin, same one phone sold. The difference only shows up in the figures that arrive later: which shop the customer goes back to for a charger, which one their sister visits when her screen cracks, which one gets a five-star review and which one gets a one-star review that will still be at the top of the search results in two years.

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Lesson Evaluation

Congratulations on completing the lesson on Good Customer Services. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.

You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.

Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.

  1. Which one of the following is likely to happen when a business improves its customer service? A. A fall in the business's costs of production B. An increase in the volume of the business's sales C. A reduction in the number of employees needed D. An increase in the rate of tax the business pays Answer: B
  2. Which one of the following is an example of post-sales service? A. Advertising the product on social media B. Displaying the price clearly C. Providing a help line for customers who have already bought D. Offering a discount for buying two items Answer: C
  3. A shop has 500 regular customers and loses 4 per cent of them each year through poor service. How many customers does it lose in a year? A. 4 B. 20 C. 40 D. 200 Answer: B
  4. Which one of the following is a risk to a business of selling through social media? A. Customers can be reached outside opening hours B. Complaints are visible to people who are not customers C. The business can respond to problems quickly D. The business can post information about new products Answer: B
  5. Which one of the following best describes 'product knowledge' as a method of good customer service? A. Keeping large quantities of stock in the shop B. Staff understanding what they sell well enough to advise a customer accurately C. Advertising the features of the product widely D. Offering a refund whenever a customer is unhappy Answer: B

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