Difference Between Customer Care And Customer Service Management Essay

CUSTOMER CARE

Customer care is going the extra mile for the customers to exceed their expectations and wants. It is a little extra effort made by service provider while delivering service to customer.

Customer care demonstrates leaving customer with a lifetime memory or experience. It helps in exceeding customer’s expectations resulting in repeat business. Customer Care is a trait which creates a difference in service and represents the uniqueness of an organisation. It also acts as a word of mouth; marketing tool for company hence works towards getting more business, harnessing the brand image and promoting goodwill amongst the masses.

CUSTOMER SERVICE

Customer service is addressing and satisfying customer’s basic needs and expectations. It is offering customer a consistent service.

While delivering service to a customer it is duty of a service provider to provide all tangible services expected by customer. Customers always expect a service which is value for their money.

Reference: http://sbinfocanada.about.com/od/customerservice/a/custservrules.htm

DIFFERENCE BETWEEN CUSTOMER CARE AND CUSTOMER SERVICE

CUSTOMER CARE

CUSTOMER SERVICE

It is exceeding customer expectations.

It is creating a sense of belonging with customer which leads to repeat business and loyal customers

It is a little extra effort made by service provider to make its customer happy.

It is going an extra mile to meet customer’s expectations

For Example: –

Wishing a guest on his anniversary or Birthday with the help of guest history profile.

It is fulfilling the customer’s basic needs and wants

It is offering consistent levels of service to customer.

It is value for their money.

It is meeting customer’s requirements

For Example: –

Escorting guest to their rooms.

NEED FOR CUSTOMER CARE POLICES AND PLANS

PLANS: – It is formal set of actions to achieve specified goals or objectives of the organisation.

POLICES: – The conversion of set of actions or plan into set of rules and regulations to ensure the consistent development of the organisation.

Plans are essential for continuous development of an organisation. Plans are necessary for future forecasting of set of decision about how to do something in future. Plans are made for achieving objectives or future goals of organisation. For an example: Mc Donald’s have

planned to launch a training programmes consists of two phases, hospitality plus workshops and customer care programme for its current employees and new recruits in order to achieve higher standards of customer service and care.

Policies are required to put all planes together in official and formal form for their implementation throughout the organisational hierarchy. For examples: knowledge of menu ingredients, observation of cleanliness standards etc.

CUSTOMER PATTERNS

Customer patterns help in estimating the characteristics of targeted population in order to finalise style, scope and diversity of the organisation.

This in turn helps in making future plans and policies of the organisation.

Customer patterns are classified on following bases: –

Length of stay

Identification of customers

Financial capability of targeted customers

Customer patterns are classified in two categories

Geographic

Socio Economic

Geographic

Area of customer density

Rural area/cities/metropolitan city

Socio Economic

Lifestyle

Economic capability

Professional Status

Market trends

Reference: http://reader.eblib.com

RANGE OF CUSTOMER PATTERNS AFFECTING THE HOSPITALITY INDUSTRY

Geographical factor:

This illustrates the importance of the area of customers chosen by the organisation. These areas can be classified as rural area, cities and metropolitan cities. Out of these three, metropolitan cities are the most significant and challenging as it consists of varied age groups and economic backgrounds that prefer diversified services.

Socio economic:

Lifestyles

Lifestyle represents the classification of the customers according to their choice, taste and values.

Economic capability

Economic capability is the spending power of the targeted customer market.

Professional status

Professional status reflects the type or standard of service expected by the targeted professional customers. For an example, Business customers always prefer fast and professional service while leisure customers prefer causal form of service.

Market Trends

A Market trend signifies the changing likes and dislikes of customers.

IMPORTANCE OF CUSTOMER PATTERNS IN HOSPITALITY INDUSTRY

Customer patterns are essential in hospitality industry in order to meet the expectations & needs of targeted customer market. As demands of a customer varies with their requirements. Customer pattern helps in identifying needs of all the customers comes in hence helps organisation in achieving customer’s satisfaction.

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IMPORTANCE OF CUSTOMER PATTERNS IN THE CASE STUDY

In the case study of McDonalds the customer targeted market is predominantly children & teenagers. Thus keeping its customer pattern in mind McDonalds initiated giving free toys and gifts with their happy meals to attract its young customers. It also highlights the importance of imparting training throughout its staff hierarchy about gauging customer target market.

Reference: http://www.hud.ac.uk/uni/customer/

IMPORTANCE OF CUSTOMER CARE CULTURE

Customer care culture is created by the person working in the organisation or employed by the organisation. Customer care culture sets a benchmark and imparts its tradition of customer care to all current as well as new recruits of the organisation. This helps in making loyal customers and repeat business resulting in organisation profit. Customer care culture enlightens the brand image and develops the brand loyalty of the organisation in the industry. McDonald’s has stated its two phased training programme which focuses on customer care culture and services. This training programme has successfully developed customer care culture by providing friendly services to its customers who are predominantly children & teenagers.

IMPORTANCE OF CUSTOMER CARE CULTURE TO McDonalds

Importance of customer care culture in MacDonald being the largest brand in fast food industry they serve more than 50 million customers a regular basis through its 390000 number of employees. Thus this being a Herculean task they maintain their brand image in the market through continuous improvement in their brand image in the market through continuous improvement in their products, services & work culture.

CARE CULTURE FOR EMPLOYEES

McDonalds tries to provide better work environment to its employees, thus to make it best place to work in, it always keep on discovering new ways to work. McDonald introduced a two phased training programme to enhance the customer care culture, which was also fun & learning for its employees.

The main criterion of customer care programme was to give better understanding of customer care culture to its staff hierarchy. This programme benefits its staff, on completion of the programme, staff was able to attract, help, appreciate and retain more customers.

CUSTOMER CARE CULTURE FOR EXTERNAL CUSTOMERS

For McDonalds, customer satisfaction comes first in priority list. The Organisation knows it very well that customer satisfaction can curve a niche for them in this competitive fast food market. Thus to accomplish this very purpose McDonalds have upgraded its outlets to provide fast yet more efficient and friendly services to its clientele who are mainly teen agers and children. McDonalds now primarily focuses on their likes and dislikes, and also take into consideration their menu choice as well as pocket money.

Reference: http://ivythesis.typepad.com/term_paper_topics/2008/02/mcdonalds-corpo.html

EVALUATION OF McDonald’s CUSTOMER CARE PROGRAMME

The main aim of customer care programme was to deliver superior service to customers and to have high level of consistency. Thus to increase productivity McDonald introduced new policies to its staff, which are as follow:

Policy of continuous improvement

Giving customer prime preference

Training & development programmes

Brand Promotion

Performance appraisals

Effective & efficient services to customers

Making McDonald outlets unique

Treat ”kids as stars” so that mothers appreciate the interaction

The importance of body language and listening skills in creating a welcoming environment

Hospitality Plus Workshop & Customer Care Programme

KEY PERFORMANCE INDICATORS

Key performance indicator is used for quantitative measurement that is essential to run an organisation successfully and helpful in achieving the goals and objectives of the organisation.

Key performance indicator is critical for the growth of the organisation. Key performance indicator may differ depending on the organisation, For example, profit can be a key performance indicator used by an organisation to measure its profitability, a restaurant can use the number of table covers as a key performance indicator to measure the density of customers and the profitability of the restaurant and a collage can judge their key performance indicator by the percentage of graduate students passed out from the college. Key performance indicators are the key to the success of the organisation and they are measurable. This key performance indicator reflects the organisational goals, objectives, policies and strategies. Predominately key performance indicator is the part of long term plans of the organisation which leads to the consistency in their performance.

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KEY PERFORMANCE INDICATOR FACTORS IN McDonalds

McDonald’s Key performance indicators

For Years 2004, 2005, 2006, 2007

sustainable supply chain:

Supplier Social Accountability (worldwide)

(Percent of food, packaging and tier-1 equipment suppliers that have affirmed our

Code of Conduct2)

2004

2005

2006

2007

57

89

93.5

92

Animal welfare (worldwide)

Number of supplier meat processing plants audited (including beef, pork

And poultry)

2004

2005

2006

2007

534

521

562

513

nutrition & well-being

Offering Menu Choice

(Average number of items, per market menu, that contains at least 1 serving of fruit Or vegetables)

2004

2005

2006

2007

NA

NA

6.1

6.1

Average number of items, per market menu, that contains at least 1/2 a serving of fruit or vegetables.

2004

2005

2006

2007

NA

NA

9.9

10.9

Providing Nutrition Information

(Percent of nine largest markets that provide nutrition information in-restaurant

(I.e. tray liners, nutrition brochures)

2004

2005

2006

2007

100

100

100

100

Percent of nine largest markets that provide nutrition information out-of restaurant

(I.e. websites)

2004

2005

2006

2007

100

100

100

100

Environmental responsibility

Restaurant-Level Electrical Energy Use

(Kilowatt hours used per transaction count (kWh/TC), resulting from electrical

Energy use in the restaurant)

2004

2005

2006

2007

NA4

NA4

1.15

1.15

Greenhouse Gas Emissions3

(C02 emissions (in tons) resulting from electrical energy use in the restaurant)

2004

2005

2006

2007

NA4

NA4 1

1,707,921

1,882,961

Environmental Impacts of Consumer Packaging

Amount of packaging used, by weight in lbs., per transaction count

2004

2005

2006

2007

NA

0.1396

0.1387

0.1357

Percent of packaging material that is made from recycled paper

2004

2005

2006

2007

NA

31.56

33.17

29.87

employment experience

Training, development & opportunity

(Percent of crew members satisfied that they receive the training needed to do a good job)

2004

2005

2006

2007

79.49

80.69

82

84

Percent of managers who feel the person they report to supports their

professional development.

2004

2005

2006

2007

80.310

81.610

8211

8311

Percent of company-operated restaurant managers who started as crew members

2004

2005

2006

2007

NA

63.6

64.9

53

Percent of worldwide top management team who started in the restaurant

2004

2005

2006

2007

NA

42

42

42

Management Opportunities for Women

(Percent of company-operated restaurant managers who are women)

2004

2005

2006

2007

NA

44

46.2

49

Percent of worldwide leadership (VP and above) team who are women

2004

2005

2006

2007

NA

NA

26.4

26.7

community

Philanthropic Activities (Worldwide)

(Total money raised by the McDonald’s system, including employees,

owner/operators, and suppliers, and with the help of customers, for RMHC and other charities in millions)

2004

2005

2006

2007

NA

$60.9

40.5

NA

Total corporate cash & in-kind contributions in millions

2004

2005

2006

2007

$9.2

$13.3

$13.6

$10.6

Local Economic Impacts

(Total capital expenditures worldwide (investments in new and existing restaurant in billions)

2004

2005

2006

2007

$1.4

$1.6

$1.7

$1.9

Social Taxes: Total social taxes paid by McDonald’s in millions

2004

2005

2006

2007

$345.3

$382.3

$4936

$6216

Reference: http://www.crmcdonalds.com/publish/etc/medialib/mcdonalds_media_library/report/downloads/McD_KPIs.Par.0001.File.tmp/McD_KPIs_11.08.pdf

KEY PERFORMANCE INDICATORS FOR McDonalds

Number of table covers – It estimates the speed of the customer service provided by the staff to the customer.

Number of footballs – it counts the customer density at a regular time interval.

Employee turnover – it signifies the employee satisfaction within the organisation.

Average number of bill size – it indicates the number of bills generated by the organisation in a particular day thus helping in counting the profit on that particular day.

Swinging of profit – it states the economic stability of the organisation amongst its chosen target market thus reflects the popularity of the organisation among the masses.

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BENCHMARKING

Benchmarking is the standard set by the organisation as a role model or example for achievement of its desired target and objective, also stated as “Best Practice”.

Benchmarking is understanding thoroughly or in depth existing detail process.

Analysing the business process of the competitors in the market.

Comparing own business process with the others analysed.

Implication of the necessary action plans to fill the performance gap

BENCHMARKING SUGGESTIONS FOR McDonalds

By looking at the existing competition in the fast food market, following are the few suggestions, which can act as benchmark for McDonalds

Food quality – food quality catered to customer must be of high quality in terms of nutritional values and presentation of food. This leads to the value for their money.

Speed of Service – McDonalds is known for their quick and automated service.

Customer Feedbacks – customer feedbacks always acts as vital tool to analyse quality of service and helps to iron out faults in the service.

Reference: http://tutor2u.net/business/strategy/benchmarking.htm

COMMUNICATION MATHODS

Communication is a very important assessment tool between the employees as well as with customers. Communication can be classified in two different types

Formal communication

Informal communication

Formal communication – formal communication means the legal form of any communication such as legal agreements or orders from the authority that is from the conveyor to receiver who has to follow that formal orders. For example, memo, court orders etc.

Informal communication – Informal communication is a more causal form of communication. It is the verbal form of any communication between two parties where no written agreements are made. For example, Word of mouth, causal addressing etc.

DIFFERENT WAYS OF CONVEYING FEEDBACKS

Customer feedback methods would be: –

Feedback forms

Through E – mail

Through websites

Suggestion/Comment drop Boxes

Phone survey for customer feedbacks

Contact number details

Maintain proper records and analysing complaints

Contact officers

ADVENTAGES AND DISADVANTAGES OF CUSTOMER FEEDBACKS METHODS

FEEDBACK METHODS

ADVANTAGES

DISADVANTAGES

EFFECTIVENESS

Feedback forms

It helps to keep the record of customer suggestion and complaints

Sometimes it can just be a mere piece of paper, If it is not conveyed or handled properly

It is a very effective way of contact between the top management and customer

E – mail

Fast and latest form of communication

May result in record lost

It is very popular among masses

Contact details of the customer

Efficient and fast

Costly mean of feedback

Partly effective

Contact officers

Conveys better customer service through personal service

Time consuming

Partly effective

Comment/Suggestion drop boxes

Customer friendly way of communication

Sometimes can be ignored by customer, may not reach to the concerned person

Less effective

Maintain records of customer

Helpful in formulating future plans and strategies

Sometimes difficult to handle and can be lost

Less effective

Phone survey for the customer feedbacks

Innovative

May be disturbing to customer

Stiil in experimenting stage

Reference: http://www.elook.org/dictionary/feedback.html

STAFF EMPOWERMENT

Staff empowerment is giving authorities or responsibilities to the employees, which encourage them to take initiative to act upon their knowledge and expertise. It creates better environment for the employee to work in.

AREAS OF IMPLIMATION OF STAFF EMPOWERMENT

Reception/front desk

Sales counter

Marketing department

Food & beverages service personnel

ADVENTAGES OF SERVICE EMPOWERMENT

It increase customer satisfaction

Result in less staff turnover rate

Gives more responsible feel to employees

Better co-operation between the hierarchy

Improve standards of customer service of the organisation

Helps in time management for managers, thus save valuable time of the organisation

Gives satisfaction to employees and more confidence in workforce thus result in better customer service

DISADVENTAGES OF SERVICE EMPOWERMENT

May cause confusion & misunderstanding between the staff due to lack of decision making ability

Misuse of authorities given to the employees, which may affect productivity of the organisation

It may affect the team spirit or unity of the employees of the organisation

Staff may not be capable enough to handle some tricky situations because of lack of experience

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