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Chapter 02 - Contributing to the Service Culture
2-1
Chapter 2
Contributing to the Service Culture
Table of Contents
Teaching Tools ................................................................................................................ 2
Instructor Teaching Tools ............................................................................................ 2
Student Learning Tools ............................................................................................... 2
Brief Chapter Outline ....................................................................................................... 3
Chapter Outline and Lecture Notes ................................................................................. 4
Class Activities and Sample Assignments ..................................................................... 14
Discussion Opportunities ............................................................................................... 15
In the Real World Notes ................................................................................................ 16
Retail—Ben and Jerry’s Ice Cream ............................................................................ 16
Work It Out Notes .......................................................................................................... 18
Work It Out 2.1—Organizational Culture .................................................................... 18
Work It Out 2.2 ........................................................................................................... 18
Work It Out 2.3—Managing Customer Encounters .................................................... 18
Work It Out 2.4 ........................................................................................................... 18
Work It Out 2.5—Your Customer Expectations .......................................................... 19
End-of-Chapter Material Notes ...................................................................................... 20
Key Terms .................................................................................................................. 20
Review Questions ...................................................................................................... 20
Collaborative Learning Activity ................................................................................... 23
Face to Face—You and Your New Job in Customer Service .................................... 23
Chapter 02 - Contributing to the Service Culture
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Teaching Tools
The tools included with this text are listed below.
Instructor Teaching Tools
▪ Instructor’s Manual
▪ PowerPoint Presentations
▪ Asset Map
▪ Test Bank
▪ Customer Service Videos
▪ Sample Syllabi
Student Learning Tools
▪ Customer Service Interactions
▪ Customer Service Videos
▪ Chapter Objectives
▪ Flashcards
▪ Online Quizzes
▪ Practice Tests
▪ Glossary
▪ Spanish Glossary
▪ Worksheets
Chapter 02 - Contributing to the Service Culture
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Brief Chapter Outline
Learning Outcomes
➢ 2-1: Explain the elements of a successful service culture.
➢ 2-2: Define a service strategy.
➢ 2-3: Recognize customer-friendly systems.
➢ 2-4: Implement strategies for promoting a positive service culture.
➢ 2-5: Separate average companies from exceptional companies.
➢ 2-6: Identify what customers want.
I. Defining a Service Culture
A. Service Philosophy or Mission
B. Employee Roles and Expectations
Rumba
Employee Roles in Larger Retail and Service Organizations
Employee Roles in Smaller Retail and Service Organizations
Employee Roles in Nonprofit Organizations
Policies and Procedures
C. Products and Services
D. Motivators and Rewards
E. Management Support
Strive for Improvement
Look for a Strong Mentor in Your Organization
Avoid Complacency
F. Employee Empowerment
G. Training
II. Establishing a Service Strategy
III. Customer-Friendly Systems
A. Typical System Components
Advertising
Complaint or Problem Resolution
B. Service Delivery Systems
Direct or Indirect Systems
Third-Party Delivery (Outsourcing/Offshoring)
C. Tools for Service Measurement
IV. Twelve Strategies for Promoting a Positive Service Culture
V. Separating Average Companies from Excellent Companies
VI. What Customers Want
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Chapter Outline and Lecture Notes
I. Defining Customer Service
• Service culture is a service environment made up of various factors, including
the values, beliefs, norms, rituals, and practices of a group or organization.
o No two organizations operate in the same manner, have the same focus, or
provide management that accomplishes the same results.
o A culture includes the values, norms, beliefs, rituals, and practices of a
group or organization.
o Any policy, procedure, action, or inaction on the part of the organization
contributes to a service organization.
o They are based on values, differ between individuals and cultures, and
affect the way people deal with various issues and situations.
o Attitude is critical to the success of an organization
o Efforts are focused on building long-term relationships and customer loyalty
rather than simply selling a product or service and moving on to the next
customer.
▪ Successful organizations are customer-centered or customer-centric
and focus on individual needs.
• In the past, organizations were continually making changes to their product and
service lines to try to attract and hold customers.
o Now, many major organizations have become more customer-centric and
communicate that they are focused on their customers.
A. Service Philosophy or Mission
• Generally, an organization’s approach to business, its mission or its service
philosophy, is driven from top of the organization.
o Upper management, including members of the board of directors, when
appropriate, sets the vision or tone and direction of the organization.
o Most successful organizations have written mission and vision
statements that answer the questions of “What does the organization
do?” and “Why does the organization exist?”
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o Leadership, real and perceived, is crucial to service success.
B. Employee roles and expectations
from one organization to another, and yet they may be performed in a variety
of different ways.
o Such roles and expectations are normally included in a job description
and in the performance goals.
RUMBA
• RUMBA is an acronym for five criteria (realistic, understandable,
measureable, believable and attainable) used to establish and measure
employee performance goals.
Employee Roles in Larger Retail and Service Organizations
• Customers expect service employees to typically have at least the following
qualifications and competencies in both large and small organizations:
o Broad general knowledge of products and service.
o Interpersonal communication skills (e.g., verbal, nonverbal, and
listening along with cross-gender and cross-cultural communication).
o Technical expertise related to products sold and serviced.
o Positive, customer-focused, “can-do” attitude.
o Initiative.
o Motivation.
o Integrity.
o Loyalty (to the organization, to products, and to customers).
o Team spirit.
o Creativity.
o Sound ethics.
o Time management skills.
o Problem-solving capability.
o Conflict resolution skills.
Employee Roles in Smaller Retail and Service Organizations
• The growth of sole proprietorships (one-owner businesses) and small
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businesses has an upside in that they provide more choices for customers.
o On the downside, this growth also created problems for people making
the transition from large to small organizations.
• Employees in small businesses perform greatly varied tasks.
o To stave off failure and help ensure that customer needs are identified
and satisfied, owners and employees in such establishments must
continually strive to gain new knowledge and skills while working hard
to deliver a level of service equal to that offered by the bigger
organizations.
Employee Roles in Nonprofit Organizations
• Even though revenue generation is not the primary goal in nonprofit
organizations, money is a significant force.
o Without donations, grants, and other fund-raising efforts, these
organizations cannot provide the crucial services, products, and
deliverables to their customer/client base (often lower-income and
older people or others who have few other alternatives for attainment
of needed items and services).
o In such organizations, administrators, staff, and volunteers provide a
wide degree of services and support.
Policies and Procedures
• Although there are a lot of local, state, and federal regulations with which
you and your organization must comply, many policies are flexible.
• Many customers negatively meet organizational culture directly when a
service provider hides behind “company policy” to handle a problem.
o The goal should be to respond to policy customer requests and satisfy
needs as quickly, efficiently, and cheerfully as possible.
• Return policies in a retail environment are a case in point.
o An effective return policy is part of the overall service process.
o In addition to service received, the return policy of an organization is
another gauge customers use to determine where they will spend their
time and money.
C. Products and Services
• If customers perceive that the organization offers reputable products and
services in a professional manner and at a competitive price, the organization
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will likely reap the rewards of loyalty and positive “press.”
o On the other hand, if products and services do not live up to
expectations or promises, or if the service employee’s ability to correct
problems in products and services is deficient, the employee and the
organization could suffer adversely.
D. Motivators and Rewards
• People work more effectively when and productively their performance is
recognized and adequately rewarded.
E. Management Support
• To handle some customer-related situation, frontline service providers will
have to depend on the knowledge and assistance of a more experienced
employee or supervisor or manager and defer to his or her experience or
authority.
o A key role played by the manager, supervisor, and/or team leader in a
customer-related situation is to provide effective, ongoing coaching,
counseling, and training to their subordinates.
Strive for Improvement
• Customer service can be frustrating and, in some instances, monotonous.
o Employees may need to create self-motivation strategies and continue
to seek fulfillment or satisfaction.
Look for a Strong Mentor in Your Organization
• Mentors are people who are well acquainted with the organization and its
policies, politics, and processes.
o They are well connected (inside and outside the organization),
communicate well, have the ability and desire to assist others (the
protégé), and are capable and experienced.
Avoid Complacency
• The people who excel, especially in a service environment, are the ones
who constantly strive for improvement and look for opportunities to grow
professionally.
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o They also take responsibility or ownership for service situations.
F. Employee Empowerment
• Employee empowerment is one way for a supervisor to help ensure that
service providers can respond quickly to customer needs or requests.
o The intent of empowerment is a delegation of authority where a frontline
service provider can take action without having to call a supervisor or
ask permission.
• Empowerment is also an intangible way that successful service organizations
reward employees.
o Often someone who has decision-making authority feels better about
himself or herself and the organization.
G. Training
• To perform a job successfully and create a positive impression in the minds
of customers, frontline employees must be given the necessary tools.
o Depending on the position and the organization’s focus, this training
might address interpersonal skills, technical skills, organizational
awareness, or job skills, again depending on the position.
II. Establishing a Service Strategy
• The first step a company should take in creating or redefining its service
environment is to make sure it knows who its customers really are and how it
plans to attract and hold those customers.
o It is not just the organization’s responsibility to insure the success of
customer service.
III. Customer-Friendly Systems
A. Typical System Components
• Customer-friendly systems refers to the processes in an organization that
make service seamless to customers by ensuring that things work properly
and the customer is satisfied.
o Some customer-friendly systems that can send positive messages are
advertising and complaint or problem resolution.
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Advertising
• Advertising campaigns should send a message that products and services
are competitive in price and that the quality and quantity are at least
comparable to those of competitors.
• An advertisement that appears to be deceptive can cost the organization
customers and its reputation.
Complaint or Problem Resolution
• The manner in which complaints or problems are handled can signal the
organization’s concern for customer satisfaction.
• As a service professional, one should make recommendations for
improvement whenever he or she spots a roadblock or system that impedes
provision of service excellence.
B. Service Delivery Systems
• Service delivery systems are a combination of people, technology, and
other internal and external elements that make up an organization’s method
of getting its products and services to customers.
• The organization must determine the best way to deliver quality products and
service and to provide effective follow-up support to its customers.
o This includes the way information is made available to customers, initial
contacts and handling of customer issues, sales techniques (hard sell
versus relationship selling), order collection and processing, price
quotations, product and service delivery, processing of paperwork,
invoicing, and follow-up.
Direct or Indirect Systems
• The type of delivery system used (direct or indirect contact) is important
because it affects staffing numbers, costs, technology, scheduling, and
many other factors.
• In a direct contact environment, customers interact directly with people.
o In an indirect system customers’ needs are met primarily with self-
service through technology (possibly integrated with the human factor
in customer contact/call centers) integrated with Internet services.
▪ ATMs versus branches of a bank would be an example of direct
versus indirect systems.
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Third Party Delivery (Outsourcing/Offshoring)
• Many companies are eliminating internal positions and delegating,
assigning, or hiring outside (third-party) organizations and individuals to
assume eliminated and newly created roles (call center customer support
functions, human resource benefits administration, accounting functions,
and marketing) for an agreed-upon price (normally without the extra cost of
benefits).
• The practice of outsourcing jobs to a third party provides multiple benefits
while also bringing with it some downsides.
o On the positive side, companies can save money by:
▪ Eliminating large ongoing salaries.
▪ Reducing health benefits, retirement, and 401(k) payments.
▪ Avoiding the need to purchase and update computers and
related equipment and a myriad of other equipment.
▪ Increasing workforce size without necessarily doing likewise to
the budget.
▪ Bringing in new, fresh expertise, ideas, and perspectives from
outside the organization.
o On the negative side:
Long-term employee expertise is lost.
▪ Employee loyalty to the organization suffers.
▪ Succession planning opportunities and the potential to groom
and hire from within an enculturated workforce is reduced.
▪ The organization’s reputation in the eyes of local citizens is
potentially tarnished due to sending jobs away.
▪ The morale of the “survivors” (employees whose jobs were not
eliminated) is adversely affected.
▪ Managing becomes more complex.
▪ Customers must deal with “strangers” with whom they cannot
build a long-term relationship because their provider may be
gone the next time they call or stop by.
▪ Response time in getting a job or task completed may increase
because of distance or other factors.
▪ Quality of work is not always up to expectations internally or for
customers (e.g., dealing with service representatives who have
hard-to understand accents or do not fully understand the
customer’s culture or expectations)
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C. Tools for Service Measurement
• Some of the typical techniques or tools available to organizations for
customer service data collection are as follows:
o Employee focus groups
o Employee opinion surveys
o Customer focus groups
o Mystery shoppers
o Customer satisfaction surveys
o Customer comment cards
o Profit and loss statement or management reports
o Employee exit interviews
o Walk-through audits
o On-site management visits
o Management inspections
IV. Twelve Strategies for Promoting a Positive Service Culture
• Following are 12 strategies for service success:
o Partner with customers.
o Explore your organization’s vision.
o Help communicate the culture and organizational vision to customers—
daily.
o Demonstrate ethical behavior.
▪ The ethics of the organization are intertwined with its culture.
▪ Ethical behavior is based on values—those of the society,
organization, and employees.
o Identify and improve your service skills.
o Become an expert on your organization.
o Demonstrate commitment.
o Work with your customer’s interest in mind.
o Treat vendors and suppliers as customers.
o Share resources.
o Work with, not against, your customers.
o Provide service follow-up.
▪ This can be through a formal customer satisfaction survey or
telephone callback system or through an informal process of sending
thank-you cards, birthday cards, special sale mailings, and similar
initiatives that are inexpensive and take little effort.
Chapter 02 - Contributing to the Service Culture
V. Separating Average Companies from Excellent Companies
• The following factors can demonstrate an organization’s level of service
commitment:
o Executives spend time with the customers.
o Executives spend time talking to frontline service providers.
o Customer feedback is regularly asked for and acted upon.
o Innovation and creativity are encouraged and rewarded.
o Benchmarking (identifying successful practices of others) is done with
similar organizations.
o Technology is widespread, frequently updated, and used effectively.
o Training is provided to keep employees current on industry trends,
organizational issues, skills, and technology.
o Open communication exists between frontline employees and all levels of
management.
o Employees are provided with guidelines and empowered (in certain
instances, authorized to act without management intervention) to do
whatever is necessary to satisfy the customer.
o Partnerships with customers and suppliers are common.
o The status quo is not acceptable.
VI. What Customers Want
• What customers want are things that customers typically desire but do not
necessarily need.
o It is value for their money and/or effective, efficient service.
• Following are seven common things that customers want and expect if they are
to keep doing business with you and your organization:
o Personal recognition
▪ This can be demonstrated in a number of ways, such as sending
thank-you cards, returning calls in a timely fashion, etc.
o Courtesy
▪ Basic courtesy involves pleasantries such as “please” and “thank you”,
as there is no place or excuse for rude behavior in a customer service
environment.
o Timely service
▪ A customer service professional should provide prompt yet effective
service.
▪ They should work diligently to stay on schedule and at least explain
when delays do occur so that the customer understands the reason for
the wait
