Chapter 09 – Customer Service via Technology
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Customer Issues
• In the age of technology, people contacting an organization typically
expect immediate responses or assistance.
o They do not care about problems with the system or that a service
provider is experiencing.
o They likely expect that issues related to services, phone systems,
and other equipment are anticipated and an alternative is
available—and that the service providers has a backup plan in
place to handle them when something fails.
• There should be a process for circumventing technical problems and the
service provider should take the initiative to get the information they need
and get back to them as soon as possible.
• From a customer standpoint, if service providers and organizations use it
correctly and professionally, technology can be a blessing.
• However, to have the latest gadgets is costly in terms of time and money.
• A major consumer issue related to telephone usage is that many
organizations conduct direct marketing telemarketing) and/or collections
activities via the telephone.
o Many unscrupulous telemarketers pressure-call recipients or use
“robocall” machines, illegally take advantage of them, and/or
violate personal privacy.
o Robocall is a type of automated phone auto-dialer that delivers a
personalized, prerecorded message to recipients.
Additional Issues
• Technology, especially the Internet, has spawned a new era of fraud and
manipulation.
o This is a major concern for consumers and can create many
challenges for people working in a call center.
• Informed customers go to great lengths to protect their credit card,
merchant account, and social security numbers; addresses; and personal
data.
• Service providers should remember that a customer’s reluctance to
provide them with information is not necessarily a reflection on their or
their service providing peers; it is based more on a distrust in the system.
IV. Technology Etiquette and Strategies
• As with any other interaction with people, service providers should be aware of
Chapter 09 – Customer Service via Technology
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some basic dos and don’ts related to using technology to interact with and serve
their customers.
• Failure to observe some commonsense rules can cause loss of a customer.
A. E-Mail
• The e-mail system was designed as an inexpensive, quick way of
communicating via the World Wide Web.
• E-mail was not originally intended to replace formal written correspondence,
although many organizations now use it to send things like attached
correspondence and receipts and to notify customers of order status, to
gather additional information needed to serve a customer, and for other
business-related issues.
• Some e-mail tips to remember, as well as some etiquette for effective usage
are as follows:
o Use abbreviations and initials.
o Proofread and spellcheck before sending a message.
o Think before writing.
o Use short, concise sentences.
o Use both upper- and lowercase letters.
o Be careful with punctuation.
o Use e-mail only for informal correspondence.
o Use organization e-mail for business only.
o Use blind courtesy copies sparingly.
o Copy only necessary people.
o Get permission to send advertisements or promotional materials.
o Be cautious in using emoticons (emotional icons)—faces created
through the use of computer keyboard characters.
o Fill in your address line last.
B. Facsimile
• There are certain dos and don’ts to abide by when service providers use a
fax machine to transmit messages.
• Failing to adhere to the simple guidelines can cause frustration, anger, and a
breakdown in the relationships between service providers and their
customers or others to whom they send messages.
o Be considerate of your receiver.
o Limit graphics.
o Limit correspondence recipients.
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V. The Telephone in Customer Service
• Although many small- and medium-size organizations may have dedicated
customer service professionals to staff their telephones, others do not.
o In the latter cases, the responsibility for answering the telephone and
providing service falls on anyone who is available and hears the telephone
ring.
• Modern businesses rely heavily on the use of telephones to conduct day–to-day
operations and communicate with internal as well as external customers.
o Effective use of the telephone saves employee time and effort.
• More businesses are setting up inbound (e.g., order taking, customer service,
etc.) and outbound (e.g., telemarketing, sales, etc.) telephone staff.
o Through these groups of trained specialists, companies can expand their
customer contact and be more likely to accomplish total customer
satisfaction.
A. Communication Skills for Success
• Just as when one is delivering service face–to-face with a customer, the
same skills apply to providing effective customer service over the telephone,
especially the use of vocal quality and listening skills.
• To reduce the chances of message failure, service providers should think
about the communication techniques discussed below:
o Speak clearly.
o Limit jargon, slang, and colloquialisms.
o Adjust the volume.
o Speak at a rate that allows comprehension.
o Use voice inflection.
o Use correct grammar.
o Pause occasionally.
o Smile as you speak.
o Project a positive image and attitude.
o Wait to speak.
o Listen actively.
B. Tips for Creating a Positive Telephone Image
• People quickly form an opinion about service providers and their
organization.
o The message they receive often determines how they interact with the
service providers during the conversation and in the future relationship.
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• Some suggestions to help service providers their customers effectively are as
follows:
o Continually evaluate yourself.
o Use proper body posture.
o Be prepared.
o Speak naturally.
o Be time-conscious.
o Be proactive with service.
o Doing more than the customer expects after a breakdown is important,
especially if the service provider or the company made an error.
o Conclude calls professionally.
C. Effective Telephone Usage
• One basic strategy for successfully providing effective customer service over
the telephone is to thoroughly understand all phone features and use them
effectively.
• Service providers could use the following strategies to ensure that they do
not deliver poor service:
o Eliminate distractions.
o Answer promptly.
o Use titles with names.
o Ask questions.
o Use speakerphones with caution.
o Use Call Waiting.
D. Voice Mail and Answering Machines or Services
• Although voice mail is hailed by many people as a time-saver and vehicle for
delivering messages when an intended recipient is unavailable, many other
people have difficulty dealing with this technology (including answering
machines) or simply refuse to interact with a machine.
• Some ways to use voice mail are as follows:
o Managing incoming calls—to effectively use voice mail, one must first
understand how the system works.
o Placing calls to voice mail—many normally articulate people cannot
speak coherently when they encounter an answering machine or voice
mail.
▪ One technique for success is to plan the call before picking up the
phone.
o Avoiding telephone tag—telephone tag is frustrating and a waste of
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valuable time.
▪ It results in a loss of efficiency, money, and, in some cases,
customers.
▪ To avoid telephone tag, service providers should plan their calls
and make their messages effective by giving their name, company
name, phone number, time and date of their call, and a succinct
message, and by indicating when they can be reached.
▪ If appropriate, service providers should emphasize that it is all
right to leave the information they have requested on their voice
mail or with someone else.
E. Taking Messages Professionally
• At a minimum, when service providers take a message they should get the
following information from the caller:
o Name (correctly spelled—ask caller for spelling)
o Company name
o Phone number (with area code and country code, if appropriate)
o Brief message
o When call should be returned
o Time and date of the call and the service provider’s name (in case a
question about the message arises).
• If service providers are answering someone’s phone while he or she is away,
they should let the caller know right away.
F. General Advice for Communicating by Telephone
• Service providers shouldn’t communicate personal information, belittle
themselves, or use weak or negative language.
o After they have taken the message, they should thank the caller before
hanging up and then deliver the message to the intended receiver in a
timely manner.
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Class Activities and Sample Assignments
2. Ask students to divide into two groups and sit on opposite sides of the room. Then,
3. In teams or alone, have students write a backup plan in case technology fails for
their current or former organization. It should address the following—lost internet
4. Ask students to break into teams of four and then role-play how a customer service
5. Tell students to Google or Bing “webinar” and also include a company name (e.g.,
“Webinar Nordstrom”). Then, review what items appear and view them. Tell
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Discussion Opportunities
1. Think back to the last time you had to make a customer service phone call. Do you
think the company used computer telephony integration (CTI)? Why or why not?
2. One of the major challenges companies face is providing customer service
information via email. Think of companies you do business with. Do you email
them? How long does it normally take for them to respond? Explain some of the
3. Have you ever used internet callback before? What was your experience? From the
4. What are some of the disadvantages for employees in a world with technology?
Chapter 09 – Customer Service via Technology
In the Real World Notes
Technology—Netflix
Netflix was founded in 1997 and is headquartered in California. The company grew and
came to dominate the video and Blu-ray disc rental business with its low pricing and fast
delivery policies. In 2007 Netflix introduced streaming capability. The following year they
partnered with Apple and several consumer electronics companies and have since
grown to be the leading company streaming videos and TV episodes globally to
customers’ television sets via Xbox 360, Wii, and PS3 devices and some Internet-
connected Blu-ray disc players and HDTVs. Individuals downloading content to their
computers can watch it instantly.
There are 900 employees working at the corporate office to serve over 30 million
members in the United States, Canada, Latin America, the United Kingdom, Ireland,
and the Nordics. The beauty of the technology involved with Netflix is that users do not
have to download expensive viewing software to watch movies and television shows
they want to see. Compared to cable costs and considering that at a theater a movie for
two people, each having popcorn and a drink, can cost upwards of $50 to $60 in some
areas, the basic Netflix $7.99 monthly membership price is a true bargain. This service
allows members the ability to download an unlimited number of movies or shows and to
view them on multiple devices simultaneously.
Netflix leaders made a severe miscalculation related to its products and services in
2011. This error not only cost the company market share and lost customer loyalty, but
also put it into a potential death spiral. Briefly, the CEO, Reed Hastings, announced that
Netflix was spinning off its DVD-by-mail business into a separate service called
Qwikster and raised prices on its service. The result was a huge member outcry, major
financial analyst and media criticism, and a drop in stock prices between July 2011 and
September 2012 from nearly $300 per share to slightly over $50 per share. Luckily, Mr.
Hastings quickly realized that he had erred and reversed the decision, apologized for
his bad judgment, and started to get the company back on a comfortable and productive
track.
1. From your personal experiences, what you just read about the company, and what
you found on their website, what do you feel are the strengths of the company from
an external customer perspective? Explain.
Students’ answers will vary. Some of them may feel that out of the many strengths
that Neflix has, the streaming services and the price at which it is offering the
services are the main ones.
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2. What societal factors have impacted Netflix and contributed to its popularity and
growth? Explain the relationship of these factors to Netflix’s growth.
3. What do you think are some future opportunities for growth related to customer
service at Netflix? Explain.
4. As a consumer, are you a fan of Netflix and what it has accomplished? Why or why
not?
5. How do you feel Mr. Hasting’s actions as the CEO have helped or hurt the
company? Explain your views.
Chapter 09 – Customer Service via Technology
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Work It Out Notes
Work It Out 9.1—Evaluating Voice Mail
This box discusses some of the etiquette of voicemail. A proper outgoing voice
message should include:
• A greeting
• Organization’s name
• Departmental name
• A statement of when the person will return
• An early announcement of an option to press a number for immediate assistance
• Instructions for leaving a message
• Information on when calls will be returned
You can also use this box as a discussion point on how to leave a voicemail. A
voicemail should always be concise, clear and to the point. It should include your name,
contact information and reason for calling. Even if you think they already have your
contact information, it is important to provide it anyway.
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End-of–Chapter Material Notes
Key Terms
• Apps or applications (p. 332)
• Automated attendants (p. 319)
• Automated computer telephone interviews (p. 320)
• Automatic call distribution (ACD) system (p. 320)
• Automatic number identification (ANI) system (p. 320)
• Blind transfer (p. 350)
• Bloggers (p. 333)
• Blogs (p. 333)
• Chat support (p. 326)
• Cloud computing (p. 327)
• Computer telephony integration (CTI) (p. 320)
• Customer relationship management (CRM) software (p. 321)
• Electronic mail (e-mail) (p. 321)
• Emoticons (emotional icons) (p. 342)
• Facebook (p. 331)
• Facsimile (fax) machine (p. 322)
• Fax on demand (p. 322)
• Fee–based 900 numbers (p. 317)
• Help desk (p. 318)
• Instant messaging (p. 322)
• Intelligent callback technology (p. 322)
• Interactive kiosks or digital displays (p. 322)
• Interactive voice response (IVR) system (p. 323)
• Internet callback technology (p. 323)
• Internet telephony (p. 323)
• Media blending (p. 323)
• Offshoring (p. 316)
• Online information fulfillment system (p. 323)
• Outsourcing (p. 316)
• Pinterest (p. 331)
• Podcasts (p. 331)
• Posts (p. 333)
• Predictive dialing system (p. 323)
• QR code (Quick Response Code) (p. 315)
• Robocall (p. 337)
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• Screen pop-ups (p. 324)
• Smartphones (p. 332)
• Social media (p. 328)
• Spamming or spam (p. 322)
• Speech or voice recognition (p. 324)
• Tablets (p. 332)
• Telephone Typewriter system (TTY) (p. 324)
• Text messaging (p. 332)
• Texting (p. 332)
• Tweet (p. 330)
• Twitter (p. 330)
• Voice over Internet Protocol (VoIP) (p. 325)
• Voice response unit (VRU) (p. 323)
• Websites (p. 326)
• Wi–Fi (p. 332)
• Wikis (p. 333)
• YouTube (p. 330)
Review Questions
1. In what ways can technology play a role in the delivery of effective customer
service? Explain.
2. What are some advantages of using technology for service delivery?
3. What are some disadvantages of using technology for service delivery?
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Education.
customers. Offering ordering online but also a phone number that customers can
call is a way to get around this challenge.
4. What are some of the communication skills for success?
5. How can you project a more positive image over the telephone?
6. What information should you always get when taking telephone messages?
7. When transferring calls, what should you avoid and why?
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8. When you leave a message on voicemail, what information should you give?
9. What is telephone tag, and how can it be avoided or reduced?
10. How are small businesses benefitting from today’s technology?
Collaborative Learning Activity
This activity presents four scenarios and asks students to role-play the scenarios. The
students can work in groups of three so each person gets a chance to play each
“character,” or if you prefer, you can make this activity a class activity. This can be done
by choosing three people from the class (or three people for each of the four scenarios)
and having them act out each scenario in front of the class. Then, have the rest of the
class critique how well the situation was handled.
Face to Face—Telephone Techniques at Staff-Temps
Staff-Temps International is a temporary employment agency based in Chicago, Illinois.
It has six full-time and three part-time employment counselors. The office is part of a
national chain owned by Yamaguchi Enterprises Ltd., headquartered in Tokyo, Japan.
Because much of the placement is done over the phone, the employee’s phone skills
are extremely important. The employees are tested by recording calls. Phantom calls
are also made to insure the employees are answering phones in the correct way. In this
situation, students are asked to imagine that they are running an hour late from lunch
because they had a car accident on their way back. They are nervous about what this is
Chapter 09 – Customer Service via Technology
going to do to their insurance rates. When they come into the office, they are
immediately handed six messages. As they walk in to their office, the phone starts
ringing. By the time they take their coat off and answer the phone, it has rung six times.
One of their customers, who left two messages while they were gone, is on the line.
They spoke early in the day, and they promised to help her but have been too busy to
do so, and she is very angry.
The questions ask if the customer was justified in treating them this way and asks how
they can avoid letting personal problems get in the way of their work. The situation also
asks for an analysis on what could have been done better and a general overview of
how they think the situation was handled.
You will probably find that many students feel empathy for the person in the case and
think the customer was out of line. While she may have been out of line, you can make
the point that she is still the customer and was frustrated. The problem could have been
solved if the customer had her call returned before the person left for lunch.