MPI Assignment.MPI

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Assignment

No. 01

March 24

2012Presented To: Sir Imran Khan

Submited By :

Zerteef

Ahmad. SP11-

MBA-070

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Q 1: Describe the factors that make up high quality customer

service?

A: For any good services provider these fa ctors are very very necessary to

satisfy his customer and for attracting of more and more customers.

To provide the best customer service, a business needs to know what its

customers expect of it and then meet these expectations.

Customer satisfaction is vital for keeping customers happy to the business. It can

often be much more cost-effective to retain customers than to attract new ones.

1) Customer service relies heavily upon good communication skills2) A satisfied customer stays with a company longer, spends more and may

deepen the relationship. For example a happy credit card customer may

enlist the companys financial services and later take travel insurance.

3) Good social skills are another key element of good customer service. Goodsocial skills enable a person to be able to demonstrate empathy and

respond appropriately.

4) How can you meet your customers needs, if you dont know them? Tounderstand your customers needs, just listen to the voice of thecustomer and take action accordingly.

5) Good quality customer service is only one factor in meeting customerneeds.

6) Customers expect consistent quality of customer service; with a similar,familiar look and feel whenever and however they contact the company.

7) There should be number of sources through which customer can contact toyou.

8) The customer wants to contact you in many ways face to face, by mail,phone, fax, and email - and will expect all of these communication channels

to be open.

9) If you inform customers about new products or services when they contactyou, you may make a valuable sale, turning your cost centre into a profit

centre.

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Q 2: Explain why customer retention is important to a business?

A: Firstly I will explain that what is customer retention? Customer retention isthe keep in touch of customer to the business.

Customer retention is not only a cost effective and profitable strategy, but in

today's business world it's necessary. This is especially true when you remember

that 80% of your sales come from 20% of your customer and clients. Taking these

statistics into consideration I wonder why most marketing and sales campaigns

are designed for the new customer.

A great example is the wireless telephone companies; if you sign a new contract

you are given a large rebate or even a free cellular telephone. If you are a current

customer you have the privilege of paying full price.

If it is difficult to attract customers, it is more difficult to retain them. Most

marketing theories and practices over time have relied on attracting new

customers rather then retaining the old ones. A sustainable business however,

concentrates on its new as well as old customers equally.

Customer complaints is not a measure of customer satisfaction. Important thing is

that 95% of people never complain to a company. They just move on to another

brand. Thus using toll free numbers and suggestions forms has become a norm in

major MNCs as well as retail chains. Just so they can reach out to their

customers, and possibly bring back lost customer.

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I nteresting facts on customer retention:

1) Acquiring new customers comprises of five times the cost of retaining yourcustomers.

2) An average company loses 10% of its customers each year.3) Lessening the defection rate by as low as 5% can increase companies profits

by 25% depending on industry standards.

4) Customer profits keep on increasing over the life of the retained customeras cost in retaining the customer becomes lower and lower.

These facts in themselves explain the need of customer retention Why

would you want to spend 5 times your hard earned profits if you can tweak

your own organization and thereby retain customers.Some excellent

examples over time have been Samsung, Ford, Hyundai, Nike, Aquafina,

Apple, McDonalds, Pepsi, Starbucks, Estee lauder and Walmart.

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Q 3: Analyze how effective customer service benefits the

business, its colleagues and its customers.

A: Customer services have a lot of effects on the businesss all activities.The services of thee businesses play a key role between the customer and

the business. Almost every business will take benefit from the good

relationship between customer and colleagues.

For Customer:

Establishing and maintaining good relationships with customers provided

few problems in the past when businesses were small and customers were

identifiable by sight rather than by an ID number or code. The Manager ofthe small business knew each of his customers, understood their value to

him in terms of how much they spent and how often, remembered their

idiosyncrasies and their preferences. Customer relationship management

was a term unknown but a practice adhered to if business was to be

successful.

Today, the sheer size of businesses and organizations and the wide range ofcustomers means that good customer relationships must be explicitly

managed if they are to be successful

The benefits of customer service improvement are customer loyalty,

customer referrals, increased customer satisfaction and increased revenue.

Employees who can provide good customer service will help to retain

customers and grow the business. Customer service is so important that it

is often difference between companies that survive and those that fail.

Customer service improvement enables a company to ensure that all

problems with customer service are handled expeditiously and that weak

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areas are addressed which result in strong customer service and a robust

company.

For Colleagues: When the Colleagues of any institution are satisfied with the services

of theirown institution then they will work good.

Colleagues perform their best effort for best results. Colleagues check if their customer are satisfied with their services

then the Colleagues will also work hard.

For Business:

Efficiency of business depend upon the services of the business. Customer services play a vital role on the performance of the business. The customer may not always be right, but he does pay your bills. That's

something to consider if you're tempted to quibble with a customer over

principle--you may achieve some smug satisfaction, but you will probably

lose a future revenue stream and may create a new spokesperson for your

competitors. According to an article on the U.S. Small Business

Administration website, a National Federation of Independent Businessstudy put customer service ahead of both price and product in determining

business success.

One obvious effect of providing outstanding customer service is that it canmake you more money to business on right time.

If a customer has a bad experience with your organization, a HarvardUniversity study found that an unhappy customer will become a repeat

customer 80 percent of the time if you act quickly to remedy the situation

to her satisfaction.

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Q 4: Evaluate the various methods thatMorrisons uses to

differentiate itself from competition. Judge why customer

service is such a key part of such differentiation.

A: Marrison differentiate it self with his competitors by measuring customer

services as through qualitative method and as well as through quantitative

method.

Quantitative measurement often takes place through exit surveys in everystore each month.

Qualitative measurement often takes place through methods such asmystery shops, which allows the gathering of customer opinions and

comments.

Exit survey: A method of collecting information from customers as theyleave the store.

Marrison give a very very good chain of information to their customers asthis includes information given directly to customers by colleagues and

details given on published material such as websites, packaging, catalogues

and leaflets.

In-store, directions and signs to products allow customers to navigatethrough the store more effectively.

Marrison give special attention & advice to their customers as this includesexpertly trained specialists such as butchers and fishmongers who advise

on the best meat or fish for different menus as well as how to Cook it

appropriately.

Marrison provide special service to deliver their products refers to all areasof customer involvement once the sale has taken place. It includes delivery,

packaging, guarantees, complaints, refunds and exchanges. At Morrisons,

helpful and friendly colleagues deliver an exceptional checkout experience

to help retain customers.

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Marrison is continent to all of their customer this includes the location ofstores, ease of access and car parking, availability of public transport and

convenient ways to pay, such as cash, card and chip and pin facilities. At

Morrisons, 5% of all car parking is dedicated to blue badge holders to

enhance accessibility for those with recognized disabilities.

Marrisons also giving training to their colleague from their academy TheMorrisons Academy provides support and training for colleagues of all

levels from school leavers to senior roles. The Academy is a partnership

between Morrisons and several academic institutions including the

Bradford School of Management and the Bradford Business School.

(b)

These customer services play such a key role to differentiate becausedue to these all differentiates customer relay on your product.

Customer feel that seller is caring about us. Customer know that seller is not only their sale conscious but they

also need and care customer.