Description
tourism and hotel management
Instructor.M.KANNAN……………III YEAR TOURISM
Course Title: Course Code: Credit Hours: Course placement: Course Description:
Customer Care & Services TMgt 461 2 Cr.Hr Year III – Semester I
Service quality in tourism and hospitality, designing quality, tourism and hospitality service delivery system, effects of customer services on the satisfaction of customers, global code of ethics for tourism, improving tourism and hospitality services, kinds of customers; how to carry out customer satisfaction research-checklist; the real situation of the tourism industry operations as far as the guest service standards are concerned. Course Objective: After the end of the course students will be able to: ? Understand customers in order to provide appropriate customer service ? Perform service provision activities with appropriate personal qualities ? Provide proper service in order to satisfy customers and establish good customer relationship ? Perform customer services in accordance with proper customers handling principles and techniques
Course outline: 1. Introduction to customer care and service 1.1. 1.2. Definitions (customer, customer care and service) Types of customers
Instructor.M.KANNAN……………III YEAR TOURISM 1.3. Types of customer services
2. Service quality in tourism and hospitality 2.1 Designing quality service 2.2 Personal qualities of service providers 2.3 Customer contact employees responsibilities 2.4 Tourism and Hospitality service delivery system 3. Effects of customer services 3.1. 3.2. 3.3. General requirement of customers Positive effects of good customer service Negative effects of bad customer service
4. Guest service standards 4.1 Customer handling tactics 4.2 Customer care golden rules 4.3 Customer service check list 4.4 Customer focused strategy 5. Customers handling techniques 5.1 5.2 5.3 5.4 Identification of customers’ background Identification of customers’ expectation and needs Provision of appropriate services Dealing with awkward customers
6. Factors determining quality of services in travel and tourism 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. Tangibility Credibility Confidence Accessibility Reliability Responsiveness Courtesy
Instructor.M.KANNAN……………III YEAR TOURISM 6.8. 6.9. 6.10. Ease of Communication Customer -understanding Security
7. Improving tourism and hospitality services 7.1 Steps in managing service 7.2 Services encounter handling guest complaints 7.3 Handling guest complaints 7.4 Regulatory controls and deadly signs 8. Customer satisfaction research
Assessment Method: Continuous assessment Final Examination References: ? CERT (1988) Practical Guide to Customers Relations, 1st Edition ? Aarna Raj, Tourist Behaviour : A Psychological Perspective, Nice printing press, Delhi, 2004 ? Marc Mancini, Conducting Tours, 3rd Edition, Albany, NY, 2001 ? Ph. Kotler, G. Armstrong, Principles of Marketing, 10th Edition, Syndicate binders, Newdelhi, 2004 ? Donald Davidoff – Customer Service in the Hospitality and Tourism Industry, Prentice Hall, 1994 ? Jon & Lisa Burton – Interpersonal Skills for Travel & Tourism, 1994 60% 40 % (Class participation, Simulation activity, mid exam and assignment)
Instructor.M.KANNAN……………III YEAR TOURISM ? Roger I. Cartwright – Mastering Customer Relations, Macmillan, 2000 ? Derek Taylor – Hospitality Sales & Promotion Strategies for Success, Reed Educational & Professional Publishing Ltd, 2001 ? Bill Marvin – Guest based Marketing – How to increase restaurant sales without breaking your budget, John Wiley & Sons, 1997
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter.1. Introduction
to customer care and service
Introduction;
Customer Services is directly related to Tourism because Travel Industry is based on Money and without customer there is no Income. Good customer service is required at every part of tourism either it is hotel, restaurant, travel agency, flight etc. Regardless of how rude and demanding the customer can be it is more important to keep positive attitude and be friendly with the customer.
Importance;
Tourism is the industry in which passenger contact us to get what he/she dreams of for there holiday. Travelers at the end of the day go on a vacation to relax and to have a good time. Every airline or Railways, travel company emphasize on a strong customer service as to those who get service are likely to return for their future travel arrangements. If tourists get good service in a reputed hotel then he will consider that hotel chain first whenever he will travel and would recommend others with his word of Mouth within his/her social circle. Similarly if the traveler gets good service from any specific airline or travel trader then he will consider being a frequent customer with that specific service provider and in turn will generate future business for the serving companies, including Yatra.com, makemytrip.com, cleartrip.com and Travelocity.com, etc. Poor customer service can ruin the reputation of that hotel, restaurant, airline or a travel agency. If customer gets bad experience then neither he will use that supplier again nor will he advise anyone to use it again. So directly that supplier will loose that customer revenue in future and indirectly he will loose the prospective client which could get them a lot of business in the future.
Customer care is an essential part of the hospitality industry.;
Tourism is the industry which helps a country to get economical stability. Tourist generates business in a country and plays a key role in achieving the socio-economic goals of development plans of the nation. Good customer service ensures more opportunities for business for the service providers like IRCTC (Public sector enterprise under Ministry of Railways). Customer care is the base of any industry and its growth. It helps us to develop a loyal customer base and improve relationship with our customer. Tourism is such a wide industry and customers have number of other alternatives available for their requirement. Today customer is well informed and needs full value of his money spend. In case of inconvenience, they do dial Toll Free Number of the customer care support of the company in rule. In such a competitive industry, it is very difficult to make him a loyal customer and a satisfied customer. Loyal customers come back again and again which promotes the business through of word of mouth, all goes with a good and strong
Instructor.M.KANNAN……………III YEAR TOURISM customer support. By building a long term customer base, we can reduce the cost of looking new customers. Good service helps to turn customer into ambassador of our business. They will buy our product and service regularly and will give valuable feedback which will generate more revenue to the supplier in his good or bad time.
Understand the importance of providing excellent customer service in travel andtourism organizations;
Customer service: first impressions; company image eg logo, premises, organizational efficiency; speed and accuracy of service; consistency; products and services offered; meeting customer needs; offering information and advice; dealing with complaints; dealing with problems; meeting and exceeding customerexpectations Importance to the organisation: keeping existing customers satisfied; increasing customers‘ loyalty; ensuring repeat business; enhancing an organisation‘s image; providing an edge over the competition; increasing sales and usage by attracting new customers; the consequences of poor customer service for the customer, the staff and the organization. Importance to the customer: meeting individual customer needs; exceeding customers‘ expectations; safeand secure environment for internal and external customers Importance to the employee: a happier working environment; job satisfaction; job security; higher selfesteem;possibility of promotion 2 Know how travel and tourism organizations adapt customer service to meet the individual needs of customers Different types of customer: individuals eg leisure, business; groups Individual needs: products and services; stated; unstated; special needs eg medical conditions, mobility; customers with cultural and language needs; other needs eg relating to age, gender, socio-economic group, family circumstances 3 Know the customer service skills required to meet customer needs in travel and tourism contexts Communication skills: face to face; telephone eg call centre; building rapport; effective listening; questioning; developing a dialogue; non-verbal communication eg body language, eye contact; written communication Presentation: of self eg hygiene, dress, personality, appearance; of working environment Teamwork: eg motivation, team roles, delegation of tasks, lines of authority; benefits of teamwork tocolleagues, customers and the organization Business skills: completion of documentation eg tickets, forms; use of IT eg email, computerized reservations system (CRS), internet; business standards eg accuracy, legibility, business conventions Complaint handling: listening; questioning; empathising; understanding the problem; taking control of the situation; agreeing solutions; follow up Selling skills: Selling skills: building rapport; establishing customer needs and expectations; product knowledge; featuresand benefits; overcoming objections; closing the sale. 4 Be able to apply customer service and selling skills in travel and tourism situations Customer service: providing information and advice; providing assistance; dealing with complaints; dealing with problems eg over bookings, lost property; making sales; after sales advice; product knowledge Situations: verbal (face-to-face, telephone); non-verbal (written, electronic); holiday sales eg accommodation reservations, flight bookings, ticket sales, excursion sales; requests for
Instructor.M.KANNAN……………III YEAR TOURISM
information eg flight and journey details; requests for advice eg visa and health requirements; complex requests eg airport assistance, priority seating and flight upgrade; complaints eg flight delays, poor quality accommodation Types of customer service;
1. Loyalty
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The best way to build customer loyalty in the tourism and hospitality industry is to provide good customer service. Customers who are treated with respect and feel important will return. If you are running a hotel chain they will most likely seek out your hotel in other cities they visit. Perhaps they will even come back regularly to utilize your services.
Growth
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Customers who receive good customer service at hotels, restaurants and tourist attractions will tell other people about their experiences. It is then likely that others will come, expecting good customer service. If they enjoy their visit they will probably tell their friends and family, and ultimately your business can begin to boom.
Reputation
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Poor customer service will give restaurants, hotels and other tourism and hospitality businesses a bad reputation. People will opt to choose other hotels because they are afraid of having a bad trip. Just one poor review can be bad for your business in the tourism industry.
Sales
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The happier customers are the more likely they are to spend more money at your establishment. If they are given extra little perks, like a 15 minute massage for free, they are likely to come back the next day for another massage or may pay for other services. If the hotel staff is friendly they may visit the hotel bar or restaurant because they know they will receive good customer service there as well.
Rating
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Part of a hotel or restaurant's star rating is customer service. An establishment with a five-star rating is expected to have the best customer service, and not only because it is expensive to visit or stay there. A onestar hotel is likely to have less customer service and amenities, this is all implied with a rating system.
Instructor.M.KANNAN……………III YEAR TOURISM
Customer service manager : Job description
Customer service managers ensure that the organisation they work for satisfies its customers' needs. They may work at various levels, from head office to the front end of the business and in most cases will be:
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helping to develop a customer service policy for an entire organisation; managing a team of customer services staff; handling face-to-face enquiries from customers.
Possible roles vary widely and job titles in customer services management include customer care manager, corporate services manager, customer relationship manager and customer operations manager. In each of these roles, customer service managers are expected to understand and satisfy their customers' requirements and exceed their expectations if possible.
Typical work activities;
Types of customer service;
The main aim of a customer service manager is to provide excellent customer service. Although the work varies, depending on the type and size of the employing organization, typical activities are likely to include some or all of the following:
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providing help and advice to customers using your organization‘s products or services; communicating courteously with customers by telephone, email, letter and face to face; investigating and solving customers' problems, which may be complex or longstanding problems that have been passed on by customer service assistants; handling customer complaints or any major incidents, such as a security issue or a customer being taken ill; issuing refunds or compensation to customers; keeping accurate records of discussions or correspondence with customers; analysing statistics or other data to determine the level of customer service your organisation is providing; producing written information for customers, often involving use of computer packages/software; writing reports analysing the customer service that your organisation provides; visiting customers to provide a one-to-one service; developing feedback or complaints procedures for customers to use; developing customer service procedures, policies and standards for your organisation or department; meeting with other managers to discuss possible improvements to customer service;
Instructor.M.KANNAN……………III YEAR TOURISM
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being involved in staff recruitment and appraisals; training staff to deliver a high standard of customer service; leading or supervising a team of customer service staff; learning about your organisation's products or services and keeping up to date with changes; Keeping ahead of developments in customer service by reading relevant journals, going to meetings and attending courses.
Types of customers
customers are of two main types: internal customers and external customers.
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Internal customers: individual colleagues or groups of colleagues at your workplace with whom you are required to liaise and to whom you provide products or services. External customers: those from outside the organisation with whom you are required to liaise or provide with services and products.
External customers of the tourism industry are those upon whom the industry relies entirely for the success of their business and for whom they are expected to provide quality products and services. This group may include those from outside of or external to the tourism business, such as members of other tourism and hospitality industry sectors, domestic and international customers and visitors, or local residents and business people. The outcome from dissatisfied external customers can be negative publicity when they inform other family members, friends and colleagues of their unpleasant experience. Not only will the dissatisfied customer never return, other potential customers will not be encouraged to visit. In the tourism industry, our customers come from all walks of life. When you look at your own upbringing and how your friends were brought up, you can easily see that everyone has a different set of values in life. Your behavior with one friend may differ from that which you display towards another friend. Personal relationships can be compared to your relationships with customers. Customers' attitudes and outlook on life are very diverse. Customers are the focus of your work. How you treat them and relate to them helps determine the success of your workplace. Customers are entitled to good service from efficient, friendly staff, all the time. Without customers, there would be no jobs.
Instructor.M.KANNAN……………III YEAR TOURISM
Customers are categorized based on behavior;
1. Routine Response
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Consumers purchase commonly used products like juice, milk, toothpaste, socks, eggs and bread with little decision involved in making their purchases. It's often as simple as running out of a product and needing to replenish it with their preferred brand. These are usually small purchases, on the lower end of the pricing spectrum.
Impulse Buying
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Trips to the supermarket, discount stores and even the drugstore can often result in consumers purchasing items they didn't originally intend on buying. Impulse buying is a type of consumer buying behavior that results in an unplanned purchase. A consumer may purchase an items while at the checkout from a point-of-purchase display. The decision to buy is instant, and usually not based on need.
Limited Decision Making
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Limited decision making is a mixture of an extensive purchase decision and a routine one. Consumers who participate in this type of buyer behavior typically know what kind of product they want, but they are trying to decide which brand they want. Making a jeans purchase is a good example of how limited decision making works. A customer who needs a new pair of jeans goes into a store looking for jeans, but investigates various brands to determine which is the best fit. The consumer may consult with friends or family, but he won't ask as many questions about the product or service, or take as long to decide as he would with an extensive, high-priced item.
Extensive Decision Making
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When consumers purchase a high-ticket item, such as a vacation package or time share, electronics, a car or a home, they spend time researching their options. They may use the Internet to find information, speak with credible family, friends or colleagues, or even consult with trusted sales professionals to get the features and benefits of the product or service they're considering purchasing. Consumers participating in the extensive decision-making process, typically take longer to make a final decision to buy and spend more time researching their options.
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter…2 Service qualities in tourism and hospitality
Service Quality in Hospitality and Tourism Services.;
The aim of designing service quality and customer satisfaction that has been successfully integrated into the practice in hospitality and tourism operations and to identify the areas that warrant further research in the future, as it plays a major role. Today's travel and tourism industry environment is more complex, volatile, and competitive than ever before. Shifts in the world's demographics and tourists' psychographics, the changing tourism economy and travelers' tourism consumption patterns create both new challenges and opportunities to the world's tourism industry. Growing complexity in the management infrastructure of the tourism industry is evidenced by the fact that travel and hospitality service providers establish various forms of strategic alliances and pursue non-conventional strategies that are aimed at increasing their fair market shares. A notable change occurring in the tourism industry is the consumer's growing orientation towards an emphasis and demand for `quality of experience.' More than ever before, operators in the tourism industry recognize that it is the `high quality service experience' that makes a tourist patronize a particular establishment in the tourism business. Consequently, the industry is becoming more competitive in the `race for a higher level of service.' As one industry executive has put it forcefully; `The race for service has no finish line. As the race progresses, the finish line moves further away. Those who do not run fast enough will fall behind.' This is clearly evidenced by a quick glance at the industry trends. According to an annual survey of world's finest hotels polled by readers of Institutional Investment magazine, many of the hotels listed among `World's Top 75' dropped in their rankings while their overall scores improved during the same period. They improved their quality indexes and therefore improved the scores, but their ranks dropped at the same time simply because their competitors outperformed them. Much has been written in recent years about quality service and customer satisfaction in the tourism and hospitality industry. As previously mentioned, the race for quality service and guest satisfaction will continue to intensify as the industry becomes more competitive and the tourism end-users will have even a wider range of choices in their tourism purchase.
Instructor.M.KANNAN……………III YEAR TOURISM
Personal
qualities
of
service
providers
in
tourism and hospitality;
1. There are two types of service quality that concern hospitality and tourism industries. One type of service quality has to do with the product features that enhance customer satisfaction and the other type of service quality is related to freedom from deficiencies. It is the former type of quality service in which we are mainly interested, because of its potential to influence customer satisfaction. Guests perceive `value' only when they believe that the benefits received are greater than the sacrifices made. So, the key to service quality enhancement is how one can generate the maximum received value in the eyes of the customer. The sacrifices of the guest (i.e. a visitor or a tourist) include money and time spent on the consumption of the product. 2. In order to ensure the maximum customer value, there should be a service delivery system that meets or exceeds customer expectations. The service delivery system created will thus, in turn, create customer satisfaction. This means that hospitality and tourism operators must develop service delivery systems that create value for their target markets. 3. Some of the economy lodging chains (e.g. La Quinta Inns and Hampton Inns) in the United States realized that, when choosing a hotel, clean and safe guest rooms and an efficient check-in and check-out are the most important considerations for their target customers. They also realized that a majority of their clients are automobile travelers who spend the night and take-off early the next morning for another day of journey. So, they created `value' for their customers by providing clean and safe guestrooms plus a complimentary continental breakfast service in the hotel lobby in the morning. The complimentary service in the lobby allows guests to continue their journey the next morning without consuming too much time over breakfast. This is how one can generate `value' in the minds of consumers. The core product in most hotels in this class is the same or very similar. Therefore, the only way a hospitality firm can differentiate the product is by modifying the way it designs a service delivery system. In many cases, the delivery system does not have to be radically different or even innovative -- it must help to solidify the firm's identity as a quality organisation with its target market. Differentiating one's product (one's service) in the eyes of customers can add tangible and intangible value to one's business worth.
Important factors;
The `value engineering' process in tourism and hospitality industry involves the four steps of: 1 identifying the market segments that give the most value to the destination;
Instructor.M.KANNAN……………III YEAR TOURISM 2 identifying what these target markets value; 3 developing a service delivery system that provides better customer value than the competitors; and 4 listening to customers and modifying the service delivery system.
Customer contact employees responsibilities;
Listening to the customer expectation;
One hotel in United States had been open for fifteen years before its management realized that two-thirds of all guest calls to housekeeping were to request irons and ironing boards. This discovery prompted the idea of simply providing an iron and an ironing board in all guestrooms, an idea which would cost the hotel US$20,000. The hotel's management reviewed the year's budget and saw that an equivalent amount was earmarked to replace black and white television sets with color sets in the bathrooms of the executive floor. The management then inquired how many guests in the executive floor rooms requested a color-television set in the bathroom and found no one had made such a request. So the hotel decided to shift the budget for replacing televisions to providing irons and ironing boards in each guestroom. By listening to the customer and seeking input from personnel that dealt with guest requests on a daily basis, management was able to change a service delivery system. It not only changed the system, but it did so in such a manner as to make a more positive impact on customers. The program was consequently implemented at all hotels within its chain throughout the United States. Listening to the customers and adopting services to customer tastes is critically important in this process. Some tourism companies like Ritz-Carlton Hotels and Singapore Airlines make considerable efforts to make all employees a `listening post.' Every employee at Ritz-Carlton is trained to listen to Ritz-Carlton guests. Guests' comments, preferences, likes, dislikes and habits are recorded and entered into a guesthistory profile. Ritz-Carlton uses this information to develop a more `personalised' service for the guest on subsequent visits. Additionally, the information is entered into a service-oriented data bank that is shared by all Ritz-Carlton hotels. Therefore, a guest whose favorite newspaper was The Washington Post would be thoroughly delighted to receive a copy of The Washington Post with his or her breakfast while staying at the hotel. Since all the guest ever did was mention to a housekeeping employee that The Washington Post was his or her favorite newspaper, this unexpected response from the hotel enhances the guest's perceived value of staying with Ritz-Carlton. The customer information collected has been collectively utilised chain-wide in modifying their product/service mix and also re-engineering their service delivery system.
Instructor.M.KANNAN……………III YEAR TOURISM Tourism and Hospitality service delivery system; Designing an effective service delivery system requires a paradigm shift on the part of operators and managers who need to be open-minded about changes and the process of continuously adapting to the changes. Taco Bell is one example of such a company that stands out for its efforts to change the paradigm in the fast food industry. Taco Bell found in its research of fast food customers that there are three matters which cause customers to perceive good value in the fast food experience. They are: 1 a lot of food for the money paid; 2 a clean and pleasant restaurant environment; and 3 accuracy in order taking and food delivery. Based on its study, Taco Bell made a change in its food cost. While in general the fast food industry considered that a good fast food operator would run the restaurant with twenty-five percent food cost or less, Taco Bell decided to raise its food cost from twenty-seven percent to thirty-one percent. In other words, the company committed to deliver `a lot of food for the little money paid.' In an effort to deliver a clean and pleasant environment, Taco Bell redesigned its restaurant seating area and offered a new interior design. They also learned that one of the most common reasons for costly high employeeturnover was that employees do not enjoy the work related to food production. They decided to automate the food production system, mechanising most of the food production thus allowing less food production and kitchen work to be undertaken by employees. As a result of automation in production systems, they realised they did not need as much space in the kitchen area, so a typical Taco Bell went from being seventy percent kitchen area and thirty percent seating area to thirty percent kitchen area and seventy percent seating area. In doing so, the company changed its emphasis from being production-oriented to being customer-oriented. It also purchased a time-saving management information system which put the power of computer technology in the hands of its managers. Managers were freed from much of the drudgery of `getting the management work' done and this gave the managers more time to spend with the customers. The overall program resulted in Taco Bell going from 1.6 billion U.S. dollars annual revenue to 3.3 billion U.S. dollars in three years. In promoting the service quality and customer satisfaction, service technology must be used to its maximum. This was applied in the case of Singapore Airlines (SIA), which has been consistently rated as the world's top airline in polls of frequent flyers. In order to enhance quality service and passenger satisfaction, SIA re-engineered its service delivery system, by first drawing a sequential flow chart of all possible service incidents which could occur to a passenger. The service incidents were then grouped into the three areas of `pre-flight service,' `on-flight service,' and `post-flight service.' Management then used creative brainstorming to imagine how they could ensure service quality and passenger satisfaction at each of these three phases. One idea which was generated was the creation of `city terminals' that allowed passengers to process their check-in and also check their
Instructor.M.KANNAN……………III YEAR TOURISM luggage at a city center (or a hotel) so that they would avoid waiting in long lines in the airport. The idea was later replicated by several other airlines and destinations. Successful, quality, service-delivery systems would not be possible without creating a service-oriented culture in a hospitality and tourism organisation. An organisation's culture is a deposit of values, beliefs, ideals and rituals of the organisation. Developing an organisational culture that focuses on serving the customer is essential in providing quality customer service. Hospitality and tourism enterprises in developing countries have the disadvantage of their employees not being familiar with what constitutes a `good service.' Employees may want to do a good job and to provide a good service. However, they simply do not know how to do it because they themselves have rarely been exposed to service as guests or they were not properly trained. Therefore, continuous training and education would be required to relieve the situation. The internal marketing concept; states that the internal market of employees is the best motivator for service-mindness and customer-oriented performance. Internal marketing uses a marketing perspective to manage the firm's employees. The employee becomes the target market, to motivate the employee to respond to customer needs in the most effective manner, during routine or usual circumstances. The internal marketing concept, which can be operationalised via the following four steps, is only possible when there is a commitment from the organisation's leadership: 1 Establishing service culture. 2 Developing a marketing approach to human resources management, from hiring to employee development programs. 3 Disseminating marketing information to employees. 4 Implementing reward and recognition programs. It is not surprising that employees like to work in fun, exciting environments. Walt Disney Enterprises recognizes this fact and uses it to its advantage. Employees are provided with their own on-premises recreational facilities, dining rooms and library. The message that Disney sends to its employees and prospective employees is: 1 we care about you as an individual; 2 your health and well-being are important to us; 3 we want you to grow and develop as an individual; and 4 we want you to be happy, stay relax and enjoy.
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter.3. . Effects of customer services
General requirement of customer;
1.
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1 .Learn everything about your company. Consumers are becoming increasingly savvy about the products and services they invest in. They are price shopping, comparing customer service policies and reading product warranties before they buy. In order to provide outstanding customer service you have to know what your company offers in the areas of product, pricing and service. Companies will usually provide you with updates and information. Place these materials in your own three ring binder to use as a resource when necessary.
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2. Be a professional, active listener. Customer service is less about what you say and more about what you say after you have actively listened. During every customer interaction, be careful to not just hear, but listen to what the customer is saying. A good way to solve each customer problem is by first understanding what it is. A few ways to ensure that you are using active listening skills is to repeat the customer's concern and to ask questions if there are parts you didn't fully understood.
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3 .Give customers the service they don't expect. Every customer expects to be heard and given good service; what they don't expect is to have someone treat them as if their job depended on it. When a customer shares with you his issue, be proactive, help him resolve it and then give him advice on how to prevent a future issue that he might not be aware of. For example, a customer might express a problem he is having with his remote control. You help him resolve that technical issue, but notice that the model is outdated and could potentially have future problems. Because of this, you offer to send him a newer model at little to no cost.
Instructor.M.KANNAN……………III YEAR TOURISM
Positive effects of good customer service;
1. Satisfied Customers & Customer Relationship Management
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The first benefit of customer service is obtaining customer retention. Happy customers become repeat customers. This means competent, welltrained customer service representatives are needed to handle questions and issues; if the company doesn't have this it often looks for a cmr solution that will reassure customers that their needs will be met. Representatives who excel at listening to the customer go a long way with the customer‘s resolution of an issue. Support desk representatives that strive to help the customer can ultimately lead to better customer satisfaction.
Customer Loyalty & Loyalty Marketing
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A key indicator of quality customer service is customer loyalty. Customer loyalty means what it says. Customer retention occurs when a product or service is consistent in what it‘s supposed to do. The result can be a steady revenue stream and consistently fulfilling a costumer's expectations increases the customer's loyalty. A study by US News and World Report reports 68% of why customers leave a product or service for a competitor is because of a bad experience. The typical customer will talk to people about a negative customer service experience than a positive experience. The typical customer will tell between 8 and 25 people about a negative experience, and the Internet continues to increase this exposure. A typical customer will only tell one or two people about a positive experience. However, if you reward customers for their loyalty (with rebates, coupons, freebies, etc.) they feel valued for their choices and continue to remain a consumer of a company's product or service.
Less Costs Needed to Attract New Customers
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Quality customer service relieves pressure on the organization to attract new customers. Statistics show that it costs more to gain new customers that it is to retain existing ones. The benefit of customer service comes into play here. A thorough customer service program will help maintain an existing customer base rather than lose a percentage of it.
Instructor.M.KANNAN……………III YEAR TOURISM
Edge on Competitors With Good CRM
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If your organization out-performs another competitor in customer service, most likely, your organization will be one of the leaders in your industry. Interestingly, if a company offers a product or service at a higher price than a competitor, it doesn‘t necessarily mean the more expensive competitor will lose its customer base. According to Accenture‘s 4th Annual Study on Customer Service for the United States, 73% report they left a service provider because of poor customer service, versus only 47% who left because of a lower price.
Promotes Customer Service Employee Retention
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Customer service representatives who understand they are the face of the company will help them communicate with customers on the other side of the phone. Proper training in handling phone calls and trouble-shooting issues can promote job satisfaction, which translates into longer employee retention.
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Needed characteristics;
Friendly Attitude
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In customer service, you must be able to maintain a friendly, positive attitude in the face of adversity. A friendly attitude is often unexpected, and your customer may be calmer and more agreeable as a result. You must remain friendly when faced with an irate customer, even when he launches personal attacks. His anger is directed at the company and not you personally. Allowing him to vent and responding in a friendly manner can often turn a confrontation into an opportunity to help. Your attitude sets the tone for a positive customer experience.
Empathy
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Customer service requires the ability to empathize with your customer's situation. You must be able to communicate that you understand where an angry customer is coming from. By putting yourself in the customer's shoes, you show a willingness and desire to solve the problem quickly and efficiently. This leaves a positive impression and allows your company to retain customers that would otherwise seek to do business elsewhere.
Listening Skills
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Active listening skills are vital to your success in customer service. The ability to listen without interrupting is critical to a successful interaction with clients and potential customers. After the person speaks, you must be able to communicate that you have heard and understood what was said. You must focus on what the
Instructor.M.KANNAN……………III YEAR TOURISM other person is saying and not jump to conclusions until she has completed speaking.
Ownership
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Customers often get frustrated when no one they speak with takes ownership of the problem. Taking responsibility allows you to set yourself apart from the competition. Taking ownership of the customer contact means to communicate that the customer has come to the right place to solve her problem. You must communicate that you will do everything in your power to bring the issue to a satisfactory conclusion.
Computer Skills
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In many customer service occupations, computer skills are required. The ability to maintain a company's spreadsheets, databases and other customer records may be required. Usually, typing speed is also an important qualification. You must be able to enter information into the computer system while listening to your customer.
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Important factors;
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1. Communication
Communication skills are beneficial when providing customer service. Customer service is responsible for inquiries, technical issues or general information. To accomplish these tasks efficiently, proper communication is important. Although customer service is mostly through face-to-face interaction, much of it is over the telephone or online. Since the customer cannot point out his problem or question, listening and interpretation skills are important to determine the issue or question that he may have. This is also important in face-to-face interactions when the customer may not understand something about a product or have the product available. Empathy is also sometimes required when a customer is experiencing a unique or rare issue or complication. Additionally, the ability to diffuse a situation when the customer is irate requires careful communication skills from someone who is polite and courteous.
Problem Solving
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Those providing customer service must possess problem-solving skills for those times when a problem occurs. In many instances, customer service involves handling simple requests. There are, however, times when serious issues or technical questions arise. To handle the situation, the customer service representative must obtain information or a response in the most effective way possible. This will involve going to various sources for information, such as a manual or other reference, or asking a seasoned co-
Instructor.M.KANNAN……………III YEAR TOURISM worker. Whether it is researching or directly obtaining the information, those providing customer service must be prepared to handle any situation.
Sales
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Some situations will require those performing customer service to take on other roles. Customers may rely on customer service to point out the benefits of a product and how it may help him specifically. This shows the customer whether the product or service would be of any use to him and why he should buy it above all others. Ultimately, the customer may or may not buy based on the advice and information provided by the customer service representative. Although the representative is not a sales person, sales are generally a routine task when performing customer service.
Technical
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Customer service relays quick and accurate information to customers. In providing this information, computers are generally referenced as they are the easiest way to obtain the fastest, most updated information. Those providing this information must possess basic computer skills with the ability to learn new programs. As business needs change, so do software and methods used to keep up with products and services. From obtaining a price to checking a complete order history, knowing how to use computers and other technology is an important skill to possess.
2. Types of of good customer service
1. Verbal Communication
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A customer service representative has to have listening and speaking skills. There are several aspects of verbal communication: verbal IQ, the physical ability between memorized knowledge and speech; verbal memory, the ability to focus and memorize spoken messages; and exceptional vocabulary and grammar. Brain neural connections are being created during one's lifetime, but most of them are created in childhood. Hundreds of drugs such as antihistamines, antidepressants, cardiovascular, muscle relaxants may have anticholinergic effect, which means they slow down the activity of acetylcholine, a brain neurotransmitter that enables quick neural connections. Anything that decreases brain activity such as low oxygen due to slow circulation or low blood sugar, hypoglycemia, can affect overall brain performance and verbal IQ.
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Writing Skills
Instructor.M.KANNAN……………III YEAR TOURISM A customer-service job may require writing a newsletter or a blog, creating a flyer or a press release or letters to customers. A dedicated customer service rep in a company is likely to write most of the correspondence with clients. Email is a major form of communication in business, so a customer-service rep should be adept at writing business emails. Business writing uses special vocabulary and avoids slang and informal phrases. It is concise, factual, accurate, objective and involves no emotion. Most community colleges and even adult schools offer business writing courses.
2. Company Knowledge
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A customer-service representative is required to have knowledge about the company and its products and services, as well as possible ways to solve issues that may arise while interacting with the customer.
3. Conflict Resolution
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Often, customer service representatives deal with customers who are unhappy with the company's performance. Listening and paying attention are essential in a customer-service job. A person may be unhappy with a purchased product, or the attitude of an employee, or she may just be mad for no reason. A customer-service representative must mitigate a conflict and remain unemotional.
4. Outgoing Personality
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A customer representative must have an outgoing personality, to enjoy people and show a leveled interest in them. There is an unspoken dialogue between people through body language that sets the relationship's tone even before a word is spoken. An outgoing personality comes natural to some people, but it can also be a learned skill if someone learns to trust people. Keeping a positive attitude can lead to positive expectations for a situation's outcome.
Negative effects of bad customer service
1. Negative Reputation
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First and foremost, bad customer service will automatically give your business a bad reputation. Unhappy customers will not only recount their unpleasant experience to everyone they know, but also have access to
Instructor.M.KANNAN……………III YEAR TOURISM hundreds of ways to take their complaint viral. Word of mouth is nothing compared to the millions of people who visit customer service watchdog sites like The Consumerist. Complaint videos also become a runaway success on sites like YouTube and DailyMotion. Add to that various complaints filed with the Better Business Bureau, and your business can take a major hit from unhappy customers.
Loss of Customers
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Unhappy or upset customers tend to not return to the business after experiencing bad customer service. Some people will go as far as to convince everyone they know to also boycott your business. This means that while you may be acquiring new customers, you are losing the customers you already had. It is common knowledge to marketers that it costs less to retain a customer than to find a new one, so offering superior customer service can actually reduce your costs in marketing and customer-retention initiatives.
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Loss of Revenue
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Cutting costs in the short-run can result in a significant loss of revenue in the long-run. A large portion of bad customer service is a result of underpaid, unhappy employees in less-than-perfect working conditions. Paying employees less to keep costs low only encourages bad customer service by creating an environment where employees are neither motivated nor invested in their jobs. This means that money saved in payroll is lost when your employee's attitudes are sending your customers to the competition. Bad customer service can also add unexpected costs to your business in the case of law suits, refunds and discounts. Angry customers will frequently try to get the most out of the situation, be that free products or services, extra perks or reduced prices. Trying to rectify the problem may cost more than having done it correctly in the first place.
Instructor.M.KANNAN……………III YEAR TOURISM Chapter.4.
Guest service standards Introduction;
Great customer service skills are an asset to every company. When a customer has a good experience with your company, he can be like a walking billboard. He will tell everyone he knows about it, which equates to free advertisement for your business. Likewise, a customer will talk about his negative experiences. Too many negative customer service experiences can drive customers away and discourage repeat businesss. By implementing customer service standards throughout your organization, your employees will know how to treat and how not to treat your customers.
Implementing Guest service standards;
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1 .Identify areas and issues that could cause potential customer service problems. For example, employees arguing with customers, ignoring customers, brushing off a customer's complaint and not following up with customers in a timely manner. 2 .Create a manual or handbook to address the potential problem areas. The handbook should serve as a rulebook to instruct your employees about how each situation should be handled. For instance, you can document in the handbook that the employee is to never, under any circumstances, argue with the customer. List a rule that the employee is to acknowledge every customer by greeting them with a smile instead of ignoring them. More sample rules are no talking on the cell phone while customers are around and apologize to customers who report negative experiences. 3 .Ensure that your employee reads the customer service handbook. Have him sign and date a page at the back of the handbook. This will hold him accountable for implementing the behavior required by your company. Place this signed and dated form into the employee's work file. 4 .Create a feedback system that allows feedback from your customer. If you don't have a feedback system in place, you won't know whether or not your customer service standards are consistently being followed. To collect feedback, you can provide short survey forms to the customer. You can also contact the customer via email or telephone to hear about his customer service experience. 5 .Address the bad customer service behavior of employees instead of overlooking it. If a customer complains about an employee, speak to the employee about the matter. Take corrective action to stop the behavior if needed. If the behavior does not cease, it may be necessary to terminate the employee in order to keep your customers.
Instructor.M.KANNAN……………III YEAR TOURISM
Customer handling tactics;
Instructions
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1 .Approach the customer in a firm but kind manner when delivering negative news. If a customer believes he is not getting enough for his money, and you cannot offer more than is being offered, explain to the customer that you are unablet to make any further amendments. Remember to be kind but firm. If the customer is persistent, kindly tell the customer that you will have to have a manager review the matter further. 2 .Approach the customer with an alert attitude when trying to help. When customers come to you for help, they expect you to be alert and knowledgeable. Be direct and ask question to find out how you solve the customer's problem. 3.Never make a customer wait for you. If you need to leave to find additional help, ask the customer to follow you. 4.Offer discounts or promotions upon arrival. For example, if a customer comes in with a discount coupon from another pizza establishment; ask a manager if you can honor the competitor's coupon. If not, ask if you can give the customer a reduced price for the item. 5 .Be productive when customers are around. Ask questions, monitor the stock, or perform light cleaning. Failure to do so may give customers a negative view of the establishment. This may prevent future business. 6 .Leave a good impression on your customers as they leave your establishment. After serving a customer, it is extremely important to leave a good impression. After serving a customer, thank him for coming, hold the door open as she leaves, ask if there is anything else you can do to help. Remember, the customer is the heart of your company!
2. Through phone communication
? Remain calm. Whether you're getting cussed out or taking personal verbal attacks from a customer, you must avoid, at all costs, getting upset or angry with the customer. This includes being sarcastic. If you feel as though you are unable to keep your cool, it's best to hand the phone over to someone else or to transfer the call to someone more likely to be able to help. ? 2 Let the customer rant. It is likely that there is a lot that the customer wants to get off her chest. Let her speak, cuss, yell or whatever is necessary. Be patient with her. After she has finished, acknowledge her anger by saying something along the lines of, "We understand that you're angry. You're absolutely right, this shouldn't have happened." When she realizes that her concerns are being addressed, she will be more likely to calm down in order to get the situation sorted out.
Instructor.M.KANNAN……………III YEAR TOURISM ? 3 Give him something free. If the company messed up or the product was ineffective, provide the customer with a freebie. Strike first by offering something to show the customer that you care and you are truly sorry for what has happened. Whether it's a discount, free shipping on his next purchase or a free item, most of the time, a customer will be pleased and calm down enough to figure out a solution for the problem. ? 4 Apologize. Tell the customer that you're sorry for the problems she is having with the company or product. Explain that you vow to resolve this issue as soon as possible and that you will begin working on it as soon as you get off of the phone. ? 5 Provide him with options. Do not end the phone call by saying you will get back to him. Instead, provide him with solutions, ask him which sounds best to him, and after agreeing, provide him with a specific time frame when you will get back to him. Two or three days max is an acceptable time-frame, but the earlier the better. ? 6 Stay true to your word. Do not hang up the phone forgetting about the customer. Start working to resolve the issue immediately, or hand the issue over to someone who can start working it out. Any delay will create even more frustration. ? 7 Give the customer what she wants. If the customer was misinformed and is ranting because of her own mistake, don't spend time arguing with her. Instead, think about how much time you're wasting trying to get through to an angry person. It's better to just let the customer have what she wants, and then politely guide her to the proper web page where your policy is. This will help to avoid problems in the future. Be as humble and courteous as possible. Try not to come off as though you are blatantly telling her that she's mistaken.
1. How to Deal With an Angry Customer
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1 .Listen intently to what the customer is saying to you. Even if they are really angry because their daughter just mouthed off to them and are taking it out on you instead, you don't want to belittle their concern. Listening shows intelligence and care. Hear them out to the end of the story whenever possible. Nod your head to show that you are paying attention. Comment in empathy whenever they pause or seem to expect it. o 2 .Express empathy, but do not acknowledge your own fault, or that of another or the company, right away unless you are positive that it was an error on your part. 3 .Remove yourself from the situation mentally. Think about how petty their complaint often truly is, and think about the wide scope of importance that this issue may or may not be. 4 .Consider for yourself whether or not the customer is truly right. It's hard to be objective when someone is berating you severely for something that, even if it's true, should not be handled in such a volatile manner. The truth is, people often want something for free; pointing out the smallest weakness in a worker can lead to freebies in corporations. 5 .Apologize and accept responsibility if the customer was truly wronged. They will still be angry. They might even use this as an opportunity to switch their tactics to "I told you so." Simply be gracious, take care of the problem if you have authority. If not, you will need to call your supervisor.
Instructor.M.KANNAN……………III YEAR TOURISM
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6 .Explain what power you do and do not have within a company. If you are a waitress, merely point out the fact that you do not set the prices or policies. In order to keep your job, you have to follow the rules that were given to you. Sometimes they think you are just being mean, and some people that never work in restaurants don't understand that you have limited power as a server. 7 .Follow up even the most heated situation with "Thank you for your understanding." Concluding the confrontation on a positive and thankful note sets the tone for a pleasant and friendly future relationship for the customer and company.
Instructions
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1.. Identify the problem. Without a good working knowledge of the problem, you have no chance of providing resolution. 2 ..Empathize with the customer. Do more listening than talking, conveying that you understand how he feels, even if you disagree. A customer wants to feel understood, which will go a long way toward solving the problem. 3 ..Concentrate on the solutions truly at your disposal. Do not focus on what you cannot do, because this will agitate even more. If you keep a positive attitude and explain your options, the customer will often choose from those options. 4 ..Bring in your supervisor if an angry customer demands more than you can deliver. Politely excuse yourself and explain that you will bring this problem to the attention of your supervisor to see if something can be worked out. 5 ..Deliver on any promises or solutions in a timely, friendly way. Many times when the customer "wins," the associate will carry out the solution in an irritated fashion. Do not give in to this temptation. Apologize for the inconvenience and ask for the customer to come back again.
Golden rules;
Customer service, sometimes referred to as customer excellence, is often a job description in retail industries. However, customers can be found in many industries by other names (patients, clients, students and their parents). Each group deserves to be respected, treated with dignity and in the end, satisfied as a result of your interaction. Delivering good customer service doesn't always come naturally.
1. Be Professional
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No matter what industry you are a part of, if you deal with customers or clients you represent your company. You must be a professional. Being a
Instructor.M.KANNAN……………III YEAR TOURISM professional means several things all at once. It can mean wearing a suit and tie to show the customer you care enough to put forth some effort to look your best. It can mean watching your language so as not to use slang or profanity in the customer's presence. Being professional can mean not just pointing the customer in a particular direction but walking him over to where something is or better yet, going to get it yourself and bringing it back.
Know Your Job
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There is nothing more irritating to a customer than incompetence. With the increase in the amount of electronic information available, interacting with another human is increasingly seen as something workers reluctantly "must do." With that in mind, handing a customer's needs promptly, courteously, and with accuracy is a one of the golden rules of customer service. Give the type of service you would want in return.
Go the Extra Yard
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Know the difference between listening and hearing. Your customer may be saying one thing but really needing something else. Learn to discern your customer's needs so as to give him what he needs when he needs it. Often it will require you go beyond just the customer's request and devote time and energy to making her happy. By doing this you can secure a customer's loyal support for a long time. If you are in a commission-based position, customer service that goes above and beyond is noticed. Remember, your first duty is to the customer.
The Customer is Always Right
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The adage should actually be "the customer is always right... sort of." This is more of a state of mind than a reality these days. Nonetheless. when trying to appease a customer who believes she is right, you must show diplomacy. Good customer service would dictate that you help the customer see ways of compromising before you give in to costly or unreasonable demands. You, as an employee, owe it to your employer not to give in at the slightest confrontation. It's okay to give a little sometimes, however. Try to find a respectful compromise in the customer's favor. This way the customer knows you respect his feelings yet, that you are a loyal, honest and thoughtful employee.
Customer care check list
Your customers are the lifeblood of your business. Keeping them satisfied should be your goal.
Instructor.M.KANNAN……………III YEAR TOURISM
"The way to ensure repeated business is through better customer service," says Allbusiness' Barbara Swenson. Better customer service can be achieved by creating policies that ensure your staff is equipped to deliver the best customer experience possible. Whether you have a new business or an established company, it's a good practice to establish a checklist of customer service skills essential to your employees.
1. Product Training
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It's imperative that customer service representatives (CSRs) know the ins and outs of the products or services offered in order to provide excellent customer service."If sales and service staff do not have adequate training and expertise, they may give out antiquated or incorrect information. Most customers are relying on sales and service staff to know the products, including specifications and performance," says Swenson. Your company's customer service checklist should include policies that address ongoing training in products and services. While this is especially important for new hires, it's also important for existing employees, who should be aware of changes and additions to product lines or services provided. Allbusiness recommends that employees "convey an articulate and indepth knowledge of products and services to win customer trust and confidence. Know your company's products, services, and return policies inside and out. Try to anticipate the types of questions that customers will ask."
2. Customer Policies Training
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It's important that employees know and understand your organization's customer policies. Otherwise, customers will not know what to expect--a potential customer service disaster. "Your policy toward your customers should be clearly spelled out and consistently followed," Swenson says. "Customers do not like it when one salesperson tells them one thing and another salesperson tells them something completely different. Any discounts, return policies, and guarantees should be spelled out in writing to customers as well as reinforced by your customer service employees at the time of a sale." Additionally, Swenson recommends that your policies be printed or included on customer receipts if possible, and posted visibly throughout your establishment--or website.
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Instructor.M.KANNAN……………III YEAR TOURISM
Customer Service Training
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Knowledge of your products and services, plus customer policies, will only take your employees so far. A customer service checklist should also include training on the basics of customer service.Your customer service representatives are just that--representatives of your organization, responsible for customer service. The service that your CSRs provide reflects directly on your organization."Customer service personnel need to be trained in how to handle customers in a professional manner, one that makes the customer's interaction with your company a positive experience," Swenson notes.Customer service training should cover basics such as customer interaction skills, how to handle complaints and angry customers, and telephone/correspondence skills.
Customer Focused strategy
One of the most important doctrines in business is that the customer is always right. Businesses thrive on happy customers, and keeping a focus on the people who will help your business grow is the most vital factor in maintaining a solid business structure. In times of recession, it can be argued that businesses and retail outlets that concentrate on customer focus will do better than those that appear not to care.
1. Customer Demand
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It's said that necessity is the mother of invention, and the same goes for customer service. Customers have begun to dictate the parameters of development with demands for new technology, new ideas and innovations. In consumer electronics, the company that offers customerfocused products that appeal to the masses will do well. If a customer wants a specific item or appliance, he will look for the traits and characteristics of comparable items. The one he buys will be the best value for the money, with the best list of features and benefits. Product focus gives the customer what he wants. Customer focus gives the customer what he wants, but it can also create situations in which the customer can be persuaded to purchase something he may not have otherwise considered. It's the power of selling.
2. Selling Power
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Knowing your customer will ultimately grant you more chances of winning her business. In the days of monopolies, when people were forced to go to only one place for their goods, little choice was offered. Now, with chain stores offering discount products, reduced prices and yearround sales, people have options. Advertisers understand that by appealing to people's buying nature, they can persuade consumers to buy product X over product Y. An
Instructor.M.KANNAN……………III YEAR TOURISM advertisement with a funny jingle or a memorable punch line or slogan will cause people to remember that product. They will not think about the price, but their minds may have taken the product on board, so that when they go through the supermarket aisles they will head for it.
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Keep In Touch
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Keeping in touch with your customers will win you praise and business. If your customers know you understand their needs and requirements, they will come back to you time and again. This applies in any industry, whether a retail business, a supermarket, a construction company or a bank. Giving customers respect is a key factor in their choosing your company over another. Supermarket shoppers have long used loyalty and reward cards to save money and gain perks from shopping in certain stores. Saving up points on the reward card can bring benefits to the customer that he feels serves him as well as making him feel that his business counts.
Chapter;5;Customers handling techniques
Identification of customers’ background; Demographics are the statistical characteristics of human populations, such as age and income, that are used by businesses to identify markets for their goods and services. Demographics are used to identify who your customers are (now and in the future), where they live, and how likely they are to purchase the product you are selling. By studying your customers and potential customers through demographics, one can identify changing needs in the marketplace and adjust to them. For the businessperson, identifying the demographic groups that will be most interested in your product can mean the difference between success and failure. This is especially critical for the small businessperson who might have less room for error than larger companies. Basic demographic analysis is used for two reasons: to identify population characteristics in order to determine just who your potential customer is and to serve as a means of locating geographic areas where the largest number of potential customers live. For example, if you were interested in selling a new denture cream, it is likely that you would want to identify the counties or cities in the United States that had the largest concentration of elderly consumers. Once you identified those areas, you would want to know more about the elderly people who lived in those counties: What are their buying
Instructor.M.KANNAN……………III YEAR TOURISM habits? How many wear dentures? How many are on a fixed income? These are the types of questions that demographic studies can help answer. Until recent years, the most common method of selling goods and services was through mass marketing—trying to reach the most people possible via the media—primarily television, radio, and newspapers. Finding the people who were most likely to purchase the product was not the point—spreading the word about the product to as many people as possible was. The result of this "shotgun" approach to selling was fairly obvious. Companies were spending enormous amounts of money to reach audiences with no guarantees that anyone in that audience wanted to buy the products that were being pitched to them. Mass marketing remains a staple of advertising and marketing efforts today. But businesses now recognize that such methodologies might not be the most cost-efficient means of selling a product or service, in large part because of the fast-changing characteristics of the marketplace. After all, the past several decades have ushered in tremendous social, political, and technological changes. Lifestyles have changed dramatically as a result of the rising divorce rate and the subsequent increase in singleparent households, increased participation by women in the labor force, and other societal changes. Women have far more control over household purchasing decisions than ever before. Technology, especially the Internet, has changed the way people interact and purchase products. In addition, the sheer number of products available for purchase has exploded—consumers have literally dozens of products to choose from in almost every product category. Perhaps the most important change, however, has been in the ethnic makeup of the United States. Even with immigration restrictions, the U.S. is still the melting pot of the world. The Latin American and Asian populations are experiencing particularly explosive growth at this time. The change in diversity is especially apparent among children, where one in three American children is African American, Hispanic, or Asian.
BUILDING A CUSTOMER PROFILE
As mass marketing's appeal begins to fade, it is being replaced by target marketing. Target marketing means knowing as much as possible about your current and potential customers and reaching them through very specialized advertising or marketing campaigns. Demographic data is the cornerstone of target marketing. The first question to ask when using target marketing is: Is a product to be sold to a household or an individual? Products such as refrigerators, stoves, and dinette sets are sold to a household (a household might need only one of such products), while products such as shoes and toothbrushes are sold to individuals (each individual who lives in a household needs those products). Households can be broken down as "family" households and "nonfamily" households. The younger the person, the more likely they are to live in a nonfamily household (such as with a roommate or significant other). Everyone in the U.S., with the exception of the homeless, live in a household or
Instructor.M.KANNAN……………III YEAR TOURISM something known as "group quarters." Group quarters covers such diverse living spaces as nursing homes, prisons, and college dormitories. With the exception of dormitories, most group quarters are considered to be unimportant marketing targets. Once that question has been answered, a company can use demographics to compile a "customer profile" of their target audience. Factors that should be considered in the profile include: Ethnic background . It is important to make a distinction between ethnicity and race. The term "Hispanic," refers to an ethnic group, not a race of people. Income. In general, income tends to increase with age as people obtain better-paying jobs and receive promotions. Married couples often have a higher income because both spouses are working. Income is recorded by the U.S. Census Bureau in a number of ways, each with different ramifications for marketers. Income is defined as all money and public assistance that is earned before taxes and union dues are taken out. Personal income is money plus noncash benefits such as food stamps. Disposable income is the money that is left after taxes are taken out, and discretionary income is the amount of money left after taxes are paid and necessities such as food and shelter are paid for. It is often this last type of income that marketers are most interested in. Income can be reported for households or individuals. Education level. This is an increasingly important factor as technology becomes more important to day-to-day living. Generally, the more education a person has, the greater the income they earn, thus the more money they have to purchase products. Education is most often measured by level of schooling completed. As a rule of thumb, collegeeducated people are among the most desirable consumer groups, but studies show that they also tend to be the least brand loyal. This means a business may have to work harder to reach and keep those customers. Other important demographic factors include age, sex, geographic location, occupation, size of family, and ages of the children in the family unit. In addition, analysis of these demographic characteristics is often undertaken in conjunction with so-called lifestyle factors. Studies of these factors can be very helpful in shaping marketing campaigns and other business efforts because analysis indicates a high correlation between certain lifestyle characteristics and their buying patterns. Key lifestyle attributes include the following:
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Cultural background Religious background and beliefs Values Political convictions Hobbies/Recreational activities Musical preferences Reading preferences Entertainment preferences (television viewing, moviegoing, etc.)
Instructor.M.KANNAN……………III YEAR TOURISM
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Eating habits Travel/vacation preferences
This examination of the less tangible aspects of the consumer market is also sometimes known as psychographics. The data contained in both cluster systems and lifestyle/psychographic surveys must be considered to develop a truly accurate customer profile. Demographic information is readily available from companies that repackage and sell U.S. Census Bureau data. Most common is something called a cluster system, which is also known as a geodemographic segmentation system. Cluster systems take large numbers of demographic variables (age, income, ethnic background, occupation, etc.) and combine them to create profiles of individuals and households. When used in conjunction with business mapping systems that link demographic data to geographic areas (as specific as the household level, but more commonly by ZIP Codes or other market areas), cluster systems are a powerful marketing tool.
Identification of customers’ expectation and needs;
introduction
You are the 'Product' Tourism is essentially an amalgam of service industries. The 'products' we sell are 'experiences'. A motel room, tour bus, fishing boat, café or any other piece of infrastructure are not the 'product', they are simply the means to deliver the visitor 'experience'. Tourism 'experiences' are largely created through service and, in particular, through the people who deliver that service. When working in the tourism industry you are more than just a 'supplier' - you are a 'host'. Long after the holiday photos have started to fade, it is the service, the experiences and the people who helped to create them that visitors remember. Whether you are a single operator or a regional tourism association, creating exemplary service requires an intimate understanding of your customer and the wider marketplace.
Segment your thinking There is no such thing as the 'mass market', especially in the tourism industry. The marketplace comprises smaller and often niche segments that reflect people's diverse tastes, interests, values and priorities.
Instructor.M.KANNAN……………III YEAR TOURISM Almost all products have higher appeal to some market segments than others. It is your challenge as a tourism operator to discover which segments will produce the best return on your effort and financial investment. Advertising is an expensive way to reach new prospects, so your marketing effort needs to be as targeted as possible. Your message and product offer needs to reach those who will respond most positively to it and at times when they're most likely to respond. To determine the best product offering to meet the needs and wants of your market segment, as well as to cost-effectively target your marketing message, it is essential that you thoroughly understand your customer base. For regional and local tourism associations, the challenge is to not only understand the characteristics of the region's key market segments, but also to convey that knowledge to your operators and to introduce mechanisms to ensure higher standards of customer service across the town or region. Luckily, in the tourism industry there is no shortage of material and services available cheaply, or at no cost, to help you understand the customer.
Satisfaction is no longer enough
You'll find many definitions of 'customer satisfaction', but what it boils down to is the difference between…. 1. what the consumer expects from you, your business and staff , vs 2. what you actually deliver to them. Better understanding of the marketplace should produce higher performance and levels of customer satisfaction. This usually results in:
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Increased loyalty Future visitation Greater tolerance of price increases Enhanced reputation Cheap/ no cost customer acquisition Improved staff morale and workplace satisfaction
You need to evaluate market segments for: size, potential yield, basic demographic characteristics (eg age, sex, socio-economic status), geographic proximity, business growth potential, needs, wants and values. The Roy Morgan/ Colin Betjeman psychographic segmentation of the marketplace has underpinned Tourism Victoria's marketing for more than 15 years.
Instructor.M.KANNAN……………III YEAR TOURISM It's often said that simply meeting customer 'needs and wants' is now the everyday expectation of consumers. It may get them through your door once, but it will not ensure that they will buy again and will probably not generate word of mouth endorsement among friends, family and colleagues. To build repeat business and to achieve excellent word-of-mouth you must aim to exceed their wants, needs and expectations. It's called the 'delight' factor and is best described as the 'surprise' component of your product offer. In tourism and travel, this delight factor is most often generated through exceptional and personalised service.To read how two major tourism attractions used research to identify key issues and to subsequently improve their visitor experience click on the following links Look before you leap If you are looking to develop a new tourism product, you have the opportunity to carefully plan and tailor your product to satisfy the highest yielding market segment/s. This is achieved not just through the 'bricks and mortar' of your facility, but, more importantly, how you meet and exceed the service and experiential needs of those segment/s. The information needed to be known by someone contemplating establishing a new tourism product, or buying an existing business includes:
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Will the product meet a real market need and demand ? What competition already exists ? What will be my point of difference ? Does the product have synergy with the branding and market positioning of the region ? Who will best respond to the product offer ? Is that market segment large enough – and accessible enough – to sustain business for the majority of the year ? What service standards are expected by that market segment/s
To read the case study of a small tourism operator whose careful analysis of the marketplace has resulted in an annual average occupancy of 93% click on the following link. Fine-tuning can pay dividends If you have an existing tourism product, then it's a matter of choosing and targeting the market segment/s that will best respond to your product offer. If a segment can't be found, it may mean that your product is outdated and may need re-working to enable it to survive in today's very competitive tourism environment.
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Where they live Leisure/ recreation interests
Instructor.M.KANNAN……………III YEAR TOURISM
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Travel patterns Disposable income Spending habits and priorities Values How they obtain their information
How can you do this ?
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Ask questions Listen to your customers' comments Observe other businesses Consult tourism industry colleagues Consult relevant industry associations Conduct surveys Analyse existing data
Where is the data available ?
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Council Economic Development Units Regional Tourism Organisations Visitor Information Centre staff and surveys Local/ regional tourism studies/ strategies Other State/ Territory Tourism Organisation's research libraries (online) Industry associations ( Industry and professional journals Industry conferences and workshops (key presentations are often available online) Market research companies Tourism industry consultants Newspapers (business sections, opinion pages and letters to the editor are often good sources)
Find out more information about data available to you to help understand your customers and the industry environment. It's important to remember that once you have selected your market segment/s, you will need to continue to monitor the characteristics of that segment. Just as fashions change, so to do social needs and trends. The health of the tourism industry and your business depends on consumer confidence and the discretionary dollar available in the community. Spending habits and priorities can change rapidly in response to economic and emotional factors. To read about accommodation proprietors who used all available resources to establish and then to fine-tune their product, to find out about their target market, and who are still keeping up with the ever changing trends of the industry, the people should try to satisfy their expectation.
Instructor.M.KANNAN……………III YEAR TOURISM If you are working off customer survey data that is more than 2 years old, then you're probably out of touch with what your customer is thinking and what they require from a tourism product. Regional tourism organizations have an important responsibility to continually monitor the marketplace and to provide this information to their businesses. To read how an RTO conducts its own research to ensure that the right mix of accommodation is available within the region to meet visitor expectations. Surveying makes very good 'cents' If you are already an operator, one of the simplest and most cost-effective ways to obtain customer data is to conduct your own survey. This can be a series of structured questions you ask when:
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You receive enquiries by telephone Customers check-in Customers are enjoying your product Customers check-out You conduct a post-visit follow-up
If you are going to conduct primary research, remember:
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Format the questions for ease of data processing Minimise the number of questions and keep them brief Make the questions meaningful to your business Consider offering an incentive (especially for written surveys) Set-aside the time to regularly analyse the results Share the results with your staff
There are many companies who can assist you to accurately construct and conduct surveys.. Why bother ? If constructed and conducted correctly, the results of surveys can not only inform you about your customers, but can also reveal your business's strengths and weaknesses. Regular analysis may enable you to correct problems and react to emerging trends before they can adversely affect the business. This is particularly relevant to those businesses involved with international markets. However, there are plenty of examples of tourism operators in regional Australia who failed to read the dramatic changes in domestic trends during the past two decades.
Instructor.M.KANNAN……………III YEAR TOURISM By thoroughly understanding your market segments, you will be able to identify key selling points and to determine product offers and marketing messages that may appeal to them. Having analysed the information processing habits of your segments, you will also be more cost-effective in choosing which publications and electronic media you could use to reach them. One product does not make an 'experience' No one in the tourism industry operates in isolation. The total experience relies on quality delivery from many suppliers. “…the industry comprises the airline that brings the tourists, the buses and taxis transporting them, the hotels housing them, the restaurants feeding them, the coaches and boats showing them the sites, the shops selling them goods and the theatre and entertainment areas that provide amusement. “ (Stimson et al, 1996). Many other industries rely on vertical integration of processes and suppliers to ensure consistent quality. However, tourism and hospitality is an amalgam of strongly individualistic businesses and business people, who need to rely on the cooperation and inter-dependence of others to build the overall visitor experience. This makes the issue of quality control even more critical for the tourism industry, especially for tourism organisations and associations, who need to build quality control across their entire sector. Establishing strong, mutually beneficial relationships with suppliers will enable you to have some influence over the product they deliver to your guest. One prominent Victorian accommodation provider will not recommend anything in the region to its customers until it has been assessed by a senior staff member. They believe that every recommendation they make is a direct reflection upon the professionalism and customer service of their business. Talk to your regional tourism organisation about how it approaches industry networking, training and quality control across the local sector. Observe how other successful regions build the quality of the local product and service delivery. Tourism Victoria's Industry Development Unit and Tourism Alliance Victoria can also help.
Instructor.M.KANNAN……………III YEAR TOURISM
SERVICES PROVIDED ;
Tourism Tactics is a specialist in providing tourism business with support and has developed a range of templates and resources that can assist your business with:
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Tracking marketing efforts and customer service levels. Providing relevant pricing information to travel buyers. Getting prepared for Qualmark. Business planning Optimising your website. Ensuring customers have a great experience.
Tourism Tactics is available to assist with a range of marketing and business development functions. TOURISM PLANNING Tourism Tactics is experienced at assessing current business practices and assisting organisations postion themselves in the market to be more successful. The process includes analysing the current competitor situation, defining the current market and potential new markets, and suggesting product development ideas. After the market and product assessment stage is complete Tourism Tactics is able to produce a strategic plan along with an action list to assist the business implement the plan. FEASIBILITY STUDIES Tourism Tactics have undertaken feasibility studies for proposed visitor attractions and accommodation. Key outcomes that Tourism Tactics reports: assessment of current market environment, key competitors, market research amongst key industry informants, analysis of recent international and domestic visitor trends, projections of achievable visitor numbers and admission fees. BUSINESS DEVELOPMENT - SALES CALLS AND TRAINING VISITS Tourism Tactics is available to assist your business grow its distribution via inbound tour operators, wholesalers and other agents. As a result of being in the industry 10 years Tourism Tactics has established many contacts. We will ensure that we
Instructor.M.KANNAN……………III YEAR TOURISM
match your business with the most appropriate contacts. Included as services in this area are sales calls and training visits, newsletter communications, rate distribution and liaison services. Sales representation in Australia is also provided. MARKETING AND ADVERTISING PLANNING Are you wondering what marketing you should be doing to reach your target audience? Tourism Tactics can help you with a plan that will ensure your marketing is generating enquiries and bookings. Firstly we will complete a marketing audit to look at what advertising you are currently doing, who your target audience is, and identify your key selling points. By taking a closer look at your customers we can start to understand what types of marketing material they are using to make their travel decisions and whether your current selection is appropriate. From the audit we will also come up with the key messages you want to put forward in your advertising. This information becomes the basis for a plan that will be used to undertake the production of revised marketing material and ensuring it is distributed in the most effective places. We have had lots of experience working with ?creative? agencies, printers, and web developers, so we can take on the role as account manager for you or if you want to do this yourself we can equip you with the appropriate brief to get the job done. WEB MARKETING Your website is an important sales tool for your tourism business – it is a chance to sell your product to a traveller before they have even entered New Zealand. Statistics amongst some of your key target markets (Australia and UK) are showing that the internet is the most popular way of obtaining travel information. If you are not generating business through your site it means you are not visible to your potential clients and that they have probably found your market competitorNeed a new website - we work with the best website developers to make sure you get a site that is right for your business. Website marketing requires time, patience and hard work, and just like any marketing plan, goals and performance measures need to be set. We will take an in-depth look at how well your website is performing, present you with a detailed report and offer our ideas as to how your site can reach its full potential.
Instructor.M.KANNAN……………III YEAR TOURISM
Dealing with awkward customers
People who work in sales and especially, customer service are at the sharp end of having to deal with angry people and it‘s not restricted to just these two types of job that have to bear the brunt of an irate customer. Most of us at some time in our jobs will encounter an uncomfortable situation like this no matter what line of work we do. We‘ll be faced with having to deal with fault finders, picky people, complainers, angry people or just down right know-it-alls and, whilst this isn‘t the most pleasant of experiences we‘ll have in our everyday working lives, it‘s important to know how to deal with them. Why a Correct Approach is Important to Business What some companies fail to realise is that it‘s not the angry person on the end of a phone or face-to-face which presents the most risk of you losing business. For every person who complains, there are perhaps 10 others who have simply gone away and taken their business elsewhere without you ever realising that they were unhappy with your product or service. Therefore, whilst a customer may be ranting and raving at you over the phone, it‘s important to remember that, while they are still there complaining, they are still a valued customer and, as such, you have an ideal opportunity to win them over. This not only benefits the company but if you‘re able to turn the situation around, you‘ll gain more confidence and will be much more adept in tackling difficult customers next time it happens. Of course, you‘re not going to be able to please all of the people all of the time and no matter how much empathy you show or how tactful and diplomatic you are, you‘re not going to win every ?battle‘ and some customers are, inevitably, going to vent their spleen and have already decided never to do business with your company again. However, if you adopt a correct approach, you can rescue many situations which would otherwise have resulted in another lost customer. Here are a few tips in how to deal with a difficult one. It’s Not You Personally That’s the Problem….It’s the Problem Itself When a person complains about something, it‘s important to remember that they‘re not attacking you personally. It‘s a problem they‘ve encountered which has caused them to fly off the handle.
Instructor.M.KANNAN……………III YEAR TOURISM
Yes, they might be ranting and raving or, perhaps, even swearing at you but if you take a deep breath – remember they‘re not angry at YOU personally but because they have a problem. Therefore, even though you may think that their tone and/or language are highly inappropriate, it‘s crucial you maintain a respect for the person even if you don‘t respect their behaviour towards you. Remember It’s YOU that has the Control People can often ?lose it‘ completely when they are annoyed. They‘ll shout and scream and gabble so fast, it‘s often hard to get to the gist of knowing what their particular problem is. However, you are not angry and are calm and, therefore, you have the power and you are in control by remaining restrained. If you adopt this mentality whenever you‘re faced with an irate customer, you‘re likely to eventually win the customer around. But, the moment you start reacting emotionally to their outburst, you‘ve released your grip on the power and control of the situation which will then escalate the problem even further and is likely to result in failure in terms of coming to a satisfactory resolution. Listen Before Saying Anything Once you?ve asked the person to explain their problem or issue to you, it?s then crucial that you simply listen without any kind of interruption whatsoever until they?ve finished or pause for breath to ask you a question. Not only will this enable you to gain a thorough comprehension of what the problem is, by interrupting them „mid-flow? when they are likely to be highly charged emotionally, you run the risk of them getting even more upset. By letting them speak until they?ve completed what they want to say, you?ll soon become accustomed to a plateau which is the point at which their anger is at its fiercest and then, once this climax point has been reached, they?ll start to slow down and regain their composure before reaching the end of what they?ve had to say – Then, and only then, is it your time to speak. Display Empathy Once they?ve finished their diatribe, it?s important that you try to look at the situation from their perspective. Having not interrupted their flow and by listening intently, it?s already sent a signal to the person that you have listened and that you care about them and the situation they?re facing. Saying things like, “I can understand your situation” or “I?m sorry that you?ve been having this problem” can have a real positive effect of calming the person down to an extent to which you can start
Instructor.M.KANNAN……………III YEAR TOURISM
having meaningful dialogue between you. Identifying the Issue; Once you have identified what the problem is, it?s important that you re-iterate it to the customer so that they are sure that you have heard them correctly. For example, “Now, would you mind if I just clarify that with you. You said you?d paid £10 extra for next day delivery service but the goods didn?t arrive for a further three days, is that correct?” If you?ve assumed correctly, the customer will say „yes? and then you can move on. If not, they might wish to explain things further before you can proceed to the next stage. Once they?ve acknowledged that you have understood them correctly, you re-iterate your apologies then start to work upon a resolution to the problem. Don’t Apportion Blame Before resolving the problem, however, it?s important that you don?t apportion blame – neither to the customer or to your company directly to prevent damaging its reputation further. It?s proper and correct for you to apologise if your company has made a mistake but there is a right and wrong way of doing this. In the situation just described, the wrong way would be to say, “I?m sorry. It?s hardly surprising your order was delayed. Two of the staff are on holiday at present and that department is way behind with processing orders”. In responding that way, you are going to irk the customer even more. What you should be saying is something along the lines of; “I?m sorry to hear that. There has clearly been a problem with communication and the processing of orders here. I can?t change that but I am going to try to rectify the situation for you.” By giving such a response, you have acknowledged the problem and apologised for it but without apportioning direct blame. The Resolution Now it?s time to try to resolve the situation. There is never going to be a successful outcome every time here and what may be a satisfactory resolution for one customer may not appease another but what is important is to go about trying to resolve the problem in the correct manner. Let?s go back to our very
Instructor.M.KANNAN……………III YEAR TOURISM
simple problem with the late delivery of goods. Your response might be, “I am going to refund the £10 as we clearly didn?t get the goods to you by the next day as promised and, as you are a valued customer, I?m going to send you a voucher for £20 which you can use against any future purchase you make with us”. Hopefully, this will not only appease the customer but you?ve also opened up the opportunity for them to shop again with you. Of course, you?re never going to get all customers to accept your offer and some of them will choose to refuse it. At this point, it?s acceptable for you to ask them; “How would you like us to resolve the situation which would be satisfactory to you?” This then leaves the ball in the customer?s court for them to respond. Occasionally, they?ll ask for compensation which you can?t agree to and they will want to escalate their issue higher up the chain of command but by taking all of these steps, you?ll have done your job to the best of your ability and in a manner which is likely to resolve most issues. The more you encounter difficult customers, the easier it becomes to deal with them and the more you?ll experience satisfactory outcomes. As long as you adopt an approach similar to that above, you?ll win more than you?ll lose. Nevertheless, always bear in mind that you?re never going to win them all.
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter 6. Factors determining quality of services in travel and tourism;
Instructor.M.KANNAN……………III YEAR TOURISM
Instructor.M.KANNAN……………III YEAR TOURISM
doc_385077632.docx
tourism and hotel management
Instructor.M.KANNAN……………III YEAR TOURISM
Course Title: Course Code: Credit Hours: Course placement: Course Description:
Customer Care & Services TMgt 461 2 Cr.Hr Year III – Semester I
Service quality in tourism and hospitality, designing quality, tourism and hospitality service delivery system, effects of customer services on the satisfaction of customers, global code of ethics for tourism, improving tourism and hospitality services, kinds of customers; how to carry out customer satisfaction research-checklist; the real situation of the tourism industry operations as far as the guest service standards are concerned. Course Objective: After the end of the course students will be able to: ? Understand customers in order to provide appropriate customer service ? Perform service provision activities with appropriate personal qualities ? Provide proper service in order to satisfy customers and establish good customer relationship ? Perform customer services in accordance with proper customers handling principles and techniques
Course outline: 1. Introduction to customer care and service 1.1. 1.2. Definitions (customer, customer care and service) Types of customers
Instructor.M.KANNAN……………III YEAR TOURISM 1.3. Types of customer services
2. Service quality in tourism and hospitality 2.1 Designing quality service 2.2 Personal qualities of service providers 2.3 Customer contact employees responsibilities 2.4 Tourism and Hospitality service delivery system 3. Effects of customer services 3.1. 3.2. 3.3. General requirement of customers Positive effects of good customer service Negative effects of bad customer service
4. Guest service standards 4.1 Customer handling tactics 4.2 Customer care golden rules 4.3 Customer service check list 4.4 Customer focused strategy 5. Customers handling techniques 5.1 5.2 5.3 5.4 Identification of customers’ background Identification of customers’ expectation and needs Provision of appropriate services Dealing with awkward customers
6. Factors determining quality of services in travel and tourism 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. Tangibility Credibility Confidence Accessibility Reliability Responsiveness Courtesy
Instructor.M.KANNAN……………III YEAR TOURISM 6.8. 6.9. 6.10. Ease of Communication Customer -understanding Security
7. Improving tourism and hospitality services 7.1 Steps in managing service 7.2 Services encounter handling guest complaints 7.3 Handling guest complaints 7.4 Regulatory controls and deadly signs 8. Customer satisfaction research
Assessment Method: Continuous assessment Final Examination References: ? CERT (1988) Practical Guide to Customers Relations, 1st Edition ? Aarna Raj, Tourist Behaviour : A Psychological Perspective, Nice printing press, Delhi, 2004 ? Marc Mancini, Conducting Tours, 3rd Edition, Albany, NY, 2001 ? Ph. Kotler, G. Armstrong, Principles of Marketing, 10th Edition, Syndicate binders, Newdelhi, 2004 ? Donald Davidoff – Customer Service in the Hospitality and Tourism Industry, Prentice Hall, 1994 ? Jon & Lisa Burton – Interpersonal Skills for Travel & Tourism, 1994 60% 40 % (Class participation, Simulation activity, mid exam and assignment)
Instructor.M.KANNAN……………III YEAR TOURISM ? Roger I. Cartwright – Mastering Customer Relations, Macmillan, 2000 ? Derek Taylor – Hospitality Sales & Promotion Strategies for Success, Reed Educational & Professional Publishing Ltd, 2001 ? Bill Marvin – Guest based Marketing – How to increase restaurant sales without breaking your budget, John Wiley & Sons, 1997
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter.1. Introduction
to customer care and service
Introduction;
Customer Services is directly related to Tourism because Travel Industry is based on Money and without customer there is no Income. Good customer service is required at every part of tourism either it is hotel, restaurant, travel agency, flight etc. Regardless of how rude and demanding the customer can be it is more important to keep positive attitude and be friendly with the customer.
Importance;
Tourism is the industry in which passenger contact us to get what he/she dreams of for there holiday. Travelers at the end of the day go on a vacation to relax and to have a good time. Every airline or Railways, travel company emphasize on a strong customer service as to those who get service are likely to return for their future travel arrangements. If tourists get good service in a reputed hotel then he will consider that hotel chain first whenever he will travel and would recommend others with his word of Mouth within his/her social circle. Similarly if the traveler gets good service from any specific airline or travel trader then he will consider being a frequent customer with that specific service provider and in turn will generate future business for the serving companies, including Yatra.com, makemytrip.com, cleartrip.com and Travelocity.com, etc. Poor customer service can ruin the reputation of that hotel, restaurant, airline or a travel agency. If customer gets bad experience then neither he will use that supplier again nor will he advise anyone to use it again. So directly that supplier will loose that customer revenue in future and indirectly he will loose the prospective client which could get them a lot of business in the future.
Customer care is an essential part of the hospitality industry.;
Tourism is the industry which helps a country to get economical stability. Tourist generates business in a country and plays a key role in achieving the socio-economic goals of development plans of the nation. Good customer service ensures more opportunities for business for the service providers like IRCTC (Public sector enterprise under Ministry of Railways). Customer care is the base of any industry and its growth. It helps us to develop a loyal customer base and improve relationship with our customer. Tourism is such a wide industry and customers have number of other alternatives available for their requirement. Today customer is well informed and needs full value of his money spend. In case of inconvenience, they do dial Toll Free Number of the customer care support of the company in rule. In such a competitive industry, it is very difficult to make him a loyal customer and a satisfied customer. Loyal customers come back again and again which promotes the business through of word of mouth, all goes with a good and strong
Instructor.M.KANNAN……………III YEAR TOURISM customer support. By building a long term customer base, we can reduce the cost of looking new customers. Good service helps to turn customer into ambassador of our business. They will buy our product and service regularly and will give valuable feedback which will generate more revenue to the supplier in his good or bad time.
Understand the importance of providing excellent customer service in travel andtourism organizations;
Customer service: first impressions; company image eg logo, premises, organizational efficiency; speed and accuracy of service; consistency; products and services offered; meeting customer needs; offering information and advice; dealing with complaints; dealing with problems; meeting and exceeding customerexpectations Importance to the organisation: keeping existing customers satisfied; increasing customers‘ loyalty; ensuring repeat business; enhancing an organisation‘s image; providing an edge over the competition; increasing sales and usage by attracting new customers; the consequences of poor customer service for the customer, the staff and the organization. Importance to the customer: meeting individual customer needs; exceeding customers‘ expectations; safeand secure environment for internal and external customers Importance to the employee: a happier working environment; job satisfaction; job security; higher selfesteem;possibility of promotion 2 Know how travel and tourism organizations adapt customer service to meet the individual needs of customers Different types of customer: individuals eg leisure, business; groups Individual needs: products and services; stated; unstated; special needs eg medical conditions, mobility; customers with cultural and language needs; other needs eg relating to age, gender, socio-economic group, family circumstances 3 Know the customer service skills required to meet customer needs in travel and tourism contexts Communication skills: face to face; telephone eg call centre; building rapport; effective listening; questioning; developing a dialogue; non-verbal communication eg body language, eye contact; written communication Presentation: of self eg hygiene, dress, personality, appearance; of working environment Teamwork: eg motivation, team roles, delegation of tasks, lines of authority; benefits of teamwork tocolleagues, customers and the organization Business skills: completion of documentation eg tickets, forms; use of IT eg email, computerized reservations system (CRS), internet; business standards eg accuracy, legibility, business conventions Complaint handling: listening; questioning; empathising; understanding the problem; taking control of the situation; agreeing solutions; follow up Selling skills: Selling skills: building rapport; establishing customer needs and expectations; product knowledge; featuresand benefits; overcoming objections; closing the sale. 4 Be able to apply customer service and selling skills in travel and tourism situations Customer service: providing information and advice; providing assistance; dealing with complaints; dealing with problems eg over bookings, lost property; making sales; after sales advice; product knowledge Situations: verbal (face-to-face, telephone); non-verbal (written, electronic); holiday sales eg accommodation reservations, flight bookings, ticket sales, excursion sales; requests for
Instructor.M.KANNAN……………III YEAR TOURISM
information eg flight and journey details; requests for advice eg visa and health requirements; complex requests eg airport assistance, priority seating and flight upgrade; complaints eg flight delays, poor quality accommodation Types of customer service;
1. Loyalty
o
The best way to build customer loyalty in the tourism and hospitality industry is to provide good customer service. Customers who are treated with respect and feel important will return. If you are running a hotel chain they will most likely seek out your hotel in other cities they visit. Perhaps they will even come back regularly to utilize your services.
Growth
o
Customers who receive good customer service at hotels, restaurants and tourist attractions will tell other people about their experiences. It is then likely that others will come, expecting good customer service. If they enjoy their visit they will probably tell their friends and family, and ultimately your business can begin to boom.
Reputation
o
Poor customer service will give restaurants, hotels and other tourism and hospitality businesses a bad reputation. People will opt to choose other hotels because they are afraid of having a bad trip. Just one poor review can be bad for your business in the tourism industry.
Sales
o
The happier customers are the more likely they are to spend more money at your establishment. If they are given extra little perks, like a 15 minute massage for free, they are likely to come back the next day for another massage or may pay for other services. If the hotel staff is friendly they may visit the hotel bar or restaurant because they know they will receive good customer service there as well.
Rating
o
Part of a hotel or restaurant's star rating is customer service. An establishment with a five-star rating is expected to have the best customer service, and not only because it is expensive to visit or stay there. A onestar hotel is likely to have less customer service and amenities, this is all implied with a rating system.
Instructor.M.KANNAN……………III YEAR TOURISM
Customer service manager : Job description
Customer service managers ensure that the organisation they work for satisfies its customers' needs. They may work at various levels, from head office to the front end of the business and in most cases will be:
? ? ?
helping to develop a customer service policy for an entire organisation; managing a team of customer services staff; handling face-to-face enquiries from customers.
Possible roles vary widely and job titles in customer services management include customer care manager, corporate services manager, customer relationship manager and customer operations manager. In each of these roles, customer service managers are expected to understand and satisfy their customers' requirements and exceed their expectations if possible.
Typical work activities;
Types of customer service;
The main aim of a customer service manager is to provide excellent customer service. Although the work varies, depending on the type and size of the employing organization, typical activities are likely to include some or all of the following:
? ? ? ? ? ? ? ? ? ? ? ? ?
providing help and advice to customers using your organization‘s products or services; communicating courteously with customers by telephone, email, letter and face to face; investigating and solving customers' problems, which may be complex or longstanding problems that have been passed on by customer service assistants; handling customer complaints or any major incidents, such as a security issue or a customer being taken ill; issuing refunds or compensation to customers; keeping accurate records of discussions or correspondence with customers; analysing statistics or other data to determine the level of customer service your organisation is providing; producing written information for customers, often involving use of computer packages/software; writing reports analysing the customer service that your organisation provides; visiting customers to provide a one-to-one service; developing feedback or complaints procedures for customers to use; developing customer service procedures, policies and standards for your organisation or department; meeting with other managers to discuss possible improvements to customer service;
Instructor.M.KANNAN……………III YEAR TOURISM
? ? ? ? ?
being involved in staff recruitment and appraisals; training staff to deliver a high standard of customer service; leading or supervising a team of customer service staff; learning about your organisation's products or services and keeping up to date with changes; Keeping ahead of developments in customer service by reading relevant journals, going to meetings and attending courses.
Types of customers
customers are of two main types: internal customers and external customers.
?
?
Internal customers: individual colleagues or groups of colleagues at your workplace with whom you are required to liaise and to whom you provide products or services. External customers: those from outside the organisation with whom you are required to liaise or provide with services and products.
External customers of the tourism industry are those upon whom the industry relies entirely for the success of their business and for whom they are expected to provide quality products and services. This group may include those from outside of or external to the tourism business, such as members of other tourism and hospitality industry sectors, domestic and international customers and visitors, or local residents and business people. The outcome from dissatisfied external customers can be negative publicity when they inform other family members, friends and colleagues of their unpleasant experience. Not only will the dissatisfied customer never return, other potential customers will not be encouraged to visit. In the tourism industry, our customers come from all walks of life. When you look at your own upbringing and how your friends were brought up, you can easily see that everyone has a different set of values in life. Your behavior with one friend may differ from that which you display towards another friend. Personal relationships can be compared to your relationships with customers. Customers' attitudes and outlook on life are very diverse. Customers are the focus of your work. How you treat them and relate to them helps determine the success of your workplace. Customers are entitled to good service from efficient, friendly staff, all the time. Without customers, there would be no jobs.
Instructor.M.KANNAN……………III YEAR TOURISM
Customers are categorized based on behavior;
1. Routine Response
o
Consumers purchase commonly used products like juice, milk, toothpaste, socks, eggs and bread with little decision involved in making their purchases. It's often as simple as running out of a product and needing to replenish it with their preferred brand. These are usually small purchases, on the lower end of the pricing spectrum.
Impulse Buying
o
Trips to the supermarket, discount stores and even the drugstore can often result in consumers purchasing items they didn't originally intend on buying. Impulse buying is a type of consumer buying behavior that results in an unplanned purchase. A consumer may purchase an items while at the checkout from a point-of-purchase display. The decision to buy is instant, and usually not based on need.
Limited Decision Making
o
Limited decision making is a mixture of an extensive purchase decision and a routine one. Consumers who participate in this type of buyer behavior typically know what kind of product they want, but they are trying to decide which brand they want. Making a jeans purchase is a good example of how limited decision making works. A customer who needs a new pair of jeans goes into a store looking for jeans, but investigates various brands to determine which is the best fit. The consumer may consult with friends or family, but he won't ask as many questions about the product or service, or take as long to decide as he would with an extensive, high-priced item.
Extensive Decision Making
o
When consumers purchase a high-ticket item, such as a vacation package or time share, electronics, a car or a home, they spend time researching their options. They may use the Internet to find information, speak with credible family, friends or colleagues, or even consult with trusted sales professionals to get the features and benefits of the product or service they're considering purchasing. Consumers participating in the extensive decision-making process, typically take longer to make a final decision to buy and spend more time researching their options.
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter…2 Service qualities in tourism and hospitality
Service Quality in Hospitality and Tourism Services.;
The aim of designing service quality and customer satisfaction that has been successfully integrated into the practice in hospitality and tourism operations and to identify the areas that warrant further research in the future, as it plays a major role. Today's travel and tourism industry environment is more complex, volatile, and competitive than ever before. Shifts in the world's demographics and tourists' psychographics, the changing tourism economy and travelers' tourism consumption patterns create both new challenges and opportunities to the world's tourism industry. Growing complexity in the management infrastructure of the tourism industry is evidenced by the fact that travel and hospitality service providers establish various forms of strategic alliances and pursue non-conventional strategies that are aimed at increasing their fair market shares. A notable change occurring in the tourism industry is the consumer's growing orientation towards an emphasis and demand for `quality of experience.' More than ever before, operators in the tourism industry recognize that it is the `high quality service experience' that makes a tourist patronize a particular establishment in the tourism business. Consequently, the industry is becoming more competitive in the `race for a higher level of service.' As one industry executive has put it forcefully; `The race for service has no finish line. As the race progresses, the finish line moves further away. Those who do not run fast enough will fall behind.' This is clearly evidenced by a quick glance at the industry trends. According to an annual survey of world's finest hotels polled by readers of Institutional Investment magazine, many of the hotels listed among `World's Top 75' dropped in their rankings while their overall scores improved during the same period. They improved their quality indexes and therefore improved the scores, but their ranks dropped at the same time simply because their competitors outperformed them. Much has been written in recent years about quality service and customer satisfaction in the tourism and hospitality industry. As previously mentioned, the race for quality service and guest satisfaction will continue to intensify as the industry becomes more competitive and the tourism end-users will have even a wider range of choices in their tourism purchase.
Instructor.M.KANNAN……………III YEAR TOURISM
Personal
qualities
of
service
providers
in
tourism and hospitality;
1. There are two types of service quality that concern hospitality and tourism industries. One type of service quality has to do with the product features that enhance customer satisfaction and the other type of service quality is related to freedom from deficiencies. It is the former type of quality service in which we are mainly interested, because of its potential to influence customer satisfaction. Guests perceive `value' only when they believe that the benefits received are greater than the sacrifices made. So, the key to service quality enhancement is how one can generate the maximum received value in the eyes of the customer. The sacrifices of the guest (i.e. a visitor or a tourist) include money and time spent on the consumption of the product. 2. In order to ensure the maximum customer value, there should be a service delivery system that meets or exceeds customer expectations. The service delivery system created will thus, in turn, create customer satisfaction. This means that hospitality and tourism operators must develop service delivery systems that create value for their target markets. 3. Some of the economy lodging chains (e.g. La Quinta Inns and Hampton Inns) in the United States realized that, when choosing a hotel, clean and safe guest rooms and an efficient check-in and check-out are the most important considerations for their target customers. They also realized that a majority of their clients are automobile travelers who spend the night and take-off early the next morning for another day of journey. So, they created `value' for their customers by providing clean and safe guestrooms plus a complimentary continental breakfast service in the hotel lobby in the morning. The complimentary service in the lobby allows guests to continue their journey the next morning without consuming too much time over breakfast. This is how one can generate `value' in the minds of consumers. The core product in most hotels in this class is the same or very similar. Therefore, the only way a hospitality firm can differentiate the product is by modifying the way it designs a service delivery system. In many cases, the delivery system does not have to be radically different or even innovative -- it must help to solidify the firm's identity as a quality organisation with its target market. Differentiating one's product (one's service) in the eyes of customers can add tangible and intangible value to one's business worth.
Important factors;
The `value engineering' process in tourism and hospitality industry involves the four steps of: 1 identifying the market segments that give the most value to the destination;
Instructor.M.KANNAN……………III YEAR TOURISM 2 identifying what these target markets value; 3 developing a service delivery system that provides better customer value than the competitors; and 4 listening to customers and modifying the service delivery system.
Customer contact employees responsibilities;
Listening to the customer expectation;
One hotel in United States had been open for fifteen years before its management realized that two-thirds of all guest calls to housekeeping were to request irons and ironing boards. This discovery prompted the idea of simply providing an iron and an ironing board in all guestrooms, an idea which would cost the hotel US$20,000. The hotel's management reviewed the year's budget and saw that an equivalent amount was earmarked to replace black and white television sets with color sets in the bathrooms of the executive floor. The management then inquired how many guests in the executive floor rooms requested a color-television set in the bathroom and found no one had made such a request. So the hotel decided to shift the budget for replacing televisions to providing irons and ironing boards in each guestroom. By listening to the customer and seeking input from personnel that dealt with guest requests on a daily basis, management was able to change a service delivery system. It not only changed the system, but it did so in such a manner as to make a more positive impact on customers. The program was consequently implemented at all hotels within its chain throughout the United States. Listening to the customers and adopting services to customer tastes is critically important in this process. Some tourism companies like Ritz-Carlton Hotels and Singapore Airlines make considerable efforts to make all employees a `listening post.' Every employee at Ritz-Carlton is trained to listen to Ritz-Carlton guests. Guests' comments, preferences, likes, dislikes and habits are recorded and entered into a guesthistory profile. Ritz-Carlton uses this information to develop a more `personalised' service for the guest on subsequent visits. Additionally, the information is entered into a service-oriented data bank that is shared by all Ritz-Carlton hotels. Therefore, a guest whose favorite newspaper was The Washington Post would be thoroughly delighted to receive a copy of The Washington Post with his or her breakfast while staying at the hotel. Since all the guest ever did was mention to a housekeeping employee that The Washington Post was his or her favorite newspaper, this unexpected response from the hotel enhances the guest's perceived value of staying with Ritz-Carlton. The customer information collected has been collectively utilised chain-wide in modifying their product/service mix and also re-engineering their service delivery system.
Instructor.M.KANNAN……………III YEAR TOURISM Tourism and Hospitality service delivery system; Designing an effective service delivery system requires a paradigm shift on the part of operators and managers who need to be open-minded about changes and the process of continuously adapting to the changes. Taco Bell is one example of such a company that stands out for its efforts to change the paradigm in the fast food industry. Taco Bell found in its research of fast food customers that there are three matters which cause customers to perceive good value in the fast food experience. They are: 1 a lot of food for the money paid; 2 a clean and pleasant restaurant environment; and 3 accuracy in order taking and food delivery. Based on its study, Taco Bell made a change in its food cost. While in general the fast food industry considered that a good fast food operator would run the restaurant with twenty-five percent food cost or less, Taco Bell decided to raise its food cost from twenty-seven percent to thirty-one percent. In other words, the company committed to deliver `a lot of food for the little money paid.' In an effort to deliver a clean and pleasant environment, Taco Bell redesigned its restaurant seating area and offered a new interior design. They also learned that one of the most common reasons for costly high employeeturnover was that employees do not enjoy the work related to food production. They decided to automate the food production system, mechanising most of the food production thus allowing less food production and kitchen work to be undertaken by employees. As a result of automation in production systems, they realised they did not need as much space in the kitchen area, so a typical Taco Bell went from being seventy percent kitchen area and thirty percent seating area to thirty percent kitchen area and seventy percent seating area. In doing so, the company changed its emphasis from being production-oriented to being customer-oriented. It also purchased a time-saving management information system which put the power of computer technology in the hands of its managers. Managers were freed from much of the drudgery of `getting the management work' done and this gave the managers more time to spend with the customers. The overall program resulted in Taco Bell going from 1.6 billion U.S. dollars annual revenue to 3.3 billion U.S. dollars in three years. In promoting the service quality and customer satisfaction, service technology must be used to its maximum. This was applied in the case of Singapore Airlines (SIA), which has been consistently rated as the world's top airline in polls of frequent flyers. In order to enhance quality service and passenger satisfaction, SIA re-engineered its service delivery system, by first drawing a sequential flow chart of all possible service incidents which could occur to a passenger. The service incidents were then grouped into the three areas of `pre-flight service,' `on-flight service,' and `post-flight service.' Management then used creative brainstorming to imagine how they could ensure service quality and passenger satisfaction at each of these three phases. One idea which was generated was the creation of `city terminals' that allowed passengers to process their check-in and also check their
Instructor.M.KANNAN……………III YEAR TOURISM luggage at a city center (or a hotel) so that they would avoid waiting in long lines in the airport. The idea was later replicated by several other airlines and destinations. Successful, quality, service-delivery systems would not be possible without creating a service-oriented culture in a hospitality and tourism organisation. An organisation's culture is a deposit of values, beliefs, ideals and rituals of the organisation. Developing an organisational culture that focuses on serving the customer is essential in providing quality customer service. Hospitality and tourism enterprises in developing countries have the disadvantage of their employees not being familiar with what constitutes a `good service.' Employees may want to do a good job and to provide a good service. However, they simply do not know how to do it because they themselves have rarely been exposed to service as guests or they were not properly trained. Therefore, continuous training and education would be required to relieve the situation. The internal marketing concept; states that the internal market of employees is the best motivator for service-mindness and customer-oriented performance. Internal marketing uses a marketing perspective to manage the firm's employees. The employee becomes the target market, to motivate the employee to respond to customer needs in the most effective manner, during routine or usual circumstances. The internal marketing concept, which can be operationalised via the following four steps, is only possible when there is a commitment from the organisation's leadership: 1 Establishing service culture. 2 Developing a marketing approach to human resources management, from hiring to employee development programs. 3 Disseminating marketing information to employees. 4 Implementing reward and recognition programs. It is not surprising that employees like to work in fun, exciting environments. Walt Disney Enterprises recognizes this fact and uses it to its advantage. Employees are provided with their own on-premises recreational facilities, dining rooms and library. The message that Disney sends to its employees and prospective employees is: 1 we care about you as an individual; 2 your health and well-being are important to us; 3 we want you to grow and develop as an individual; and 4 we want you to be happy, stay relax and enjoy.
Instructor.M.KANNAN……………III YEAR TOURISM
Chapter.3. . Effects of customer services
General requirement of customer;
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1 .Learn everything about your company. Consumers are becoming increasingly savvy about the products and services they invest in. They are price shopping, comparing customer service policies and reading product warranties before they buy. In order to provide outstanding customer service you have to know what your company offers in the areas of product, pricing and service. Companies will usually provide you with updates and information. Place these materials in your own three ring binder to use as a resource when necessary.
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2. Be a professional, active listener. Customer service is less about what you say and more about what you say after you have actively listened. During every customer interaction, be careful to not just hear, but listen to what the customer is saying. A good way to solve each customer problem is by first understanding what it is. A few ways to ensure that you are using active listening skills is to repeat the customer's concern and to ask questions if there are parts you didn't fully understood.
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3 .Give customers the service they don't expect. Every customer expects to be heard and given good service; what they don't expect is to have someone treat them as if their job depended on it. When a customer shares with you his issue, be proactive, help him resolve it and then give him advice on how to prevent a future issue that he might not be aware of. For example, a customer might express a problem he is having with his remote control. You help him resolve that technical issue, but notice that the model is outdated and could potentially have future problems. Because of this, you offer to send him a newer model at little to no cost.
Instructor.M.KANNAN……………III YEAR TOURISM
Positive effects of good customer service;
1. Satisfied Customers & Customer Relationship Management
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The first benefit of customer service is obtaining customer retention. Happy customers become repeat customers. This means competent, welltrained customer service representatives are needed to handle questions and issues; if the company doesn't have this it often looks for a cmr solution that will reassure customers that their needs will be met. Representatives who excel at listening to the customer go a long way with the customer‘s resolution of an issue. Support desk representatives that strive to help the customer can ultimately lead to better customer satisfaction.
Customer Loyalty & Loyalty Marketing
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A key indicator of quality customer service is customer loyalty. Customer loyalty means what it says. Customer retention occurs when a product or service is consistent in what it‘s supposed to do. The result can be a steady revenue stream and consistently fulfilling a costumer's expectations increases the customer's loyalty. A study by US News and World Report reports 68% of why customers leave a product or service for a competitor is because of a bad experience. The typical customer will talk to people about a negative customer service experience than a positive experience. The typical customer will tell between 8 and 25 people about a negative experience, and the Internet continues to increase this exposure. A typical customer will only tell one or two people about a positive experience. However, if you reward customers for their loyalty (with rebates, coupons, freebies, etc.) they feel valued for their choices and continue to remain a consumer of a company's product or service.
Less Costs Needed to Attract New Customers
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Quality customer service relieves pressure on the organization to attract new customers. Statistics show that it costs more to gain new customers that it is to retain existing ones. The benefit of customer service comes into play here. A thorough customer service program will help maintain an existing customer base rather than lose a percentage of it.
Instructor.M.KANNAN……………III YEAR TOURISM
Edge on Competitors With Good CRM
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If your organization out-performs another competitor in customer service, most likely, your organization will be one of the leaders in your industry. Interestingly, if a company offers a product or service at a higher price than a competitor, it doesn‘t necessarily mean the more expensive competitor will lose its customer base. According to Accenture‘s 4th Annual Study on Customer Service for the United States, 73% report they left a service provider because of poor customer service, versus only 47% who left because of a lower price.
Promotes Customer Service Employee Retention
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Customer service representatives who understand they are the face of the company will help them communicate with customers on the other side of the phone. Proper training in handling phone calls and trouble-shooting issues can promote job satisfaction, which translates into longer employee retention.
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Needed characteristics;
Friendly Attitude
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In customer service, you must be able to maintain a friendly, positive attitude in the face of adversity. A friendly attitude is often unexpected, and your customer may be calmer and more agreeable as a result. You must remain friendly when faced with an irate customer, even when he launches personal attacks. His anger is directed at the company and not you personally. Allowing him to vent and responding in a friendly manner can often turn a confrontation into an opportunity to help. Your attitude sets the tone for a positive customer experience.
Empathy
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Customer service requires the ability to empathize with your customer's situation. You must be able to communicate that you understand where an angry customer is coming from. By putting yourself in the customer's shoes, you show a willingness and desire to solve the problem quickly and efficiently. This leaves a positive impression and allows your company to retain customers that would otherwise seek to do business elsewhere.
Listening Skills
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Active listening skills are vital to your success in customer service. The ability to listen without interrupting is critical to a successful interaction with clients and potential customers. After the person speaks, you must be able to communicate that you have heard and understood what was said. You must focus on what the
Instructor.M.KANNAN……………III YEAR TOURISM other person is saying and not jump to conclusions until she has completed speaking.
Ownership
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Customers often get frustrated when no one they speak with takes ownership of the problem. Taking responsibility allows you to set yourself apart from the competition. Taking ownership of the customer contact means to communicate that the customer has come to the right place to solve her problem. You must communicate that you will do everything in your power to bring the issue to a satisfactory conclusion.
Computer Skills
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In many customer service occupations, computer skills are required. The ability to maintain a company's spreadsheets, databases and other customer records may be required. Usually, typing speed is also an important qualification. You must be able to enter information into the computer system while listening to your customer.
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Important factors;
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1. Communication
Communication skills are beneficial when providing customer service. Customer service is responsible for inquiries, technical issues or general information. To accomplish these tasks efficiently, proper communication is important. Although customer service is mostly through face-to-face interaction, much of it is over the telephone or online. Since the customer cannot point out his problem or question, listening and interpretation skills are important to determine the issue or question that he may have. This is also important in face-to-face interactions when the customer may not understand something about a product or have the product available. Empathy is also sometimes required when a customer is experiencing a unique or rare issue or complication. Additionally, the ability to diffuse a situation when the customer is irate requires careful communication skills from someone who is polite and courteous.
Problem Solving
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Those providing customer service must possess problem-solving skills for those times when a problem occurs. In many instances, customer service involves handling simple requests. There are, however, times when serious issues or technical questions arise. To handle the situation, the customer service representative must obtain information or a response in the most effective way possible. This will involve going to various sources for information, such as a manual or other reference, or asking a seasoned co-
Instructor.M.KANNAN……………III YEAR TOURISM worker. Whether it is researching or directly obtaining the information, those providing customer service must be prepared to handle any situation.
Sales
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Some situations will require those performing customer service to take on other roles. Customers may rely on customer service to point out the benefits of a product and how it may help him specifically. This shows the customer whether the product or service would be of any use to him and why he should buy it above all others. Ultimately, the customer may or may not buy based on the advice and information provided by the customer service representative. Although the representative is not a sales person, sales are generally a routine task when performing customer service.
Technical
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Customer service relays quick and accurate information to customers. In providing this information, computers are generally referenced as they are the easiest way to obtain the fastest, most updated information. Those providing this information must possess basic computer skills with the ability to learn new programs. As business needs change, so do software and methods used to keep up with products and services. From obtaining a price to checking a complete order history, knowing how to use computers and other technology is an important skill to possess.
2. Types of of good customer service
1. Verbal Communication
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A customer service representative has to have listening and speaking skills. There are several aspects of verbal communication: verbal IQ, the physical ability between memorized knowledge and speech; verbal memory, the ability to focus and memorize spoken messages; and exceptional vocabulary and grammar. Brain neural connections are being created during one's lifetime, but most of them are created in childhood. Hundreds of drugs such as antihistamines, antidepressants, cardiovascular, muscle relaxants may have anticholinergic effect, which means they slow down the activity of acetylcholine, a brain neurotransmitter that enables quick neural connections. Anything that decreases brain activity such as low oxygen due to slow circulation or low blood sugar, hypoglycemia, can affect overall brain performance and verbal IQ.
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Writing Skills
Instructor.M.KANNAN……………III YEAR TOURISM A customer-service job may require writing a newsletter or a blog, creating a flyer or a press release or letters to customers. A dedicated customer service rep in a company is likely to write most of the correspondence with clients. Email is a major form of communication in business, so a customer-service rep should be adept at writing business emails. Business writing uses special vocabulary and avoids slang and informal phrases. It is concise, factual, accurate, objective and involves no emotion. Most community colleges and even adult schools offer business writing courses.
2. Company Knowledge
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A customer-service representative is required to have knowledge about the company and its products and services, as well as possible ways to solve issues that may arise while interacting with the customer.
3. Conflict Resolution
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Often, customer service representatives deal with customers who are unhappy with the company's performance. Listening and paying attention are essential in a customer-service job. A person may be unhappy with a purchased product, or the attitude of an employee, or she may just be mad for no reason. A customer-service representative must mitigate a conflict and remain unemotional.
4. Outgoing Personality
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A customer representative must have an outgoing personality, to enjoy people and show a leveled interest in them. There is an unspoken dialogue between people through body language that sets the relationship's tone even before a word is spoken. An outgoing personality comes natural to some people, but it can also be a learned skill if someone learns to trust people. Keeping a positive attitude can lead to positive expectations for a situation's outcome.
Negative effects of bad customer service
1. Negative Reputation
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First and foremost, bad customer service will automatically give your business a bad reputation. Unhappy customers will not only recount their unpleasant experience to everyone they know, but also have access to
Instructor.M.KANNAN……………III YEAR TOURISM hundreds of ways to take their complaint viral. Word of mouth is nothing compared to the millions of people who visit customer service watchdog sites like The Consumerist. Complaint videos also become a runaway success on sites like YouTube and DailyMotion. Add to that various complaints filed with the Better Business Bureau, and your business can take a major hit from unhappy customers.
Loss of Customers
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Unhappy or upset customers tend to not return to the business after experiencing bad customer service. Some people will go as far as to convince everyone they know to also boycott your business. This means that while you may be acquiring new customers, you are losing the customers you already had. It is common knowledge to marketers that it costs less to retain a customer than to find a new one, so offering superior customer service can actually reduce your costs in marketing and customer-retention initiatives.
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Loss of Revenue
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Cutting costs in the short-run can result in a significant loss of revenue in the long-run. A large portion of bad customer service is a result of underpaid, unhappy employees in less-than-perfect working conditions. Paying employees less to keep costs low only encourages bad customer service by creating an environment where employees are neither motivated nor invested in their jobs. This means that money saved in payroll is lost when your employee's attitudes are sending your customers to the competition. Bad customer service can also add unexpected costs to your business in the case of law suits, refunds and discounts. Angry customers will frequently try to get the most out of the situation, be that free products or services, extra perks or reduced prices. Trying to rectify the problem may cost more than having done it correctly in the first place.
Instructor.M.KANNAN……………III YEAR TOURISM Chapter.4.
Guest service standards Introduction;
Great customer service skills are an asset to every company. When a customer has a good experience with your company, he can be like a walking billboard. He will tell everyone he knows about it, which equates to free advertisement for your business. Likewise, a customer will talk about his negative experiences. Too many negative customer service experiences can drive customers away and discourage repeat businesss. By implementing customer service standards throughout your organization, your employees will know how to treat and how not to treat your customers.
Implementing Guest service standards;
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1 .Identify areas and issues that could cause potential customer service problems. For example, employees arguing with customers, ignoring customers, brushing off a customer's complaint and not following up with customers in a timely manner. 2 .Create a manual or handbook to address the potential problem areas. The handbook should serve as a rulebook to instruct your employees about how each situation should be handled. For instance, you can document in the handbook that the employee is to never, under any circumstances, argue with the customer. List a rule that the employee is to acknowledge every customer by greeting them with a smile instead of ignoring them. More sample rules are no talking on the cell phone while customers are around and apologize to customers who report negative experiences. 3 .Ensure that your employee reads the customer service handbook. Have him sign and date a page at the back of the handbook. This will hold him accountable for implementing the behavior required by your company. Place this signed and dated form into the employee's work file. 4 .Create a feedback system that allows feedback from your customer. If you don't have a feedback system in place, you won't know whether or not your customer service standards are consistently being followed. To collect feedback, you can provide short survey forms to the customer. You can also contact the customer via email or telephone to hear about his customer service experience. 5 .Address the bad customer service behavior of employees instead of overlooking it. If a customer complains about an employee, speak to the employee about the matter. Take corrective action to stop the behavior if needed. If the behavior does not cease, it may be necessary to terminate the employee in order to keep your customers.
Instructor.M.KANNAN……………III YEAR TOURISM
Customer handling tactics;
Instructions
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1 .Approach the customer in a firm but kind manner when delivering negative news. If a customer believes he is not getting enough for his money, and you cannot offer more than is being offered, explain to the customer that you are unablet to make any further amendments. Remember to be kind but firm. If the customer is persistent, kindly tell the customer that you will have to have a manager review the matter further. 2 .Approach the customer with an alert attitude when trying to help. When customers come to you for help, they expect you to be alert and knowledgeable. Be direct and ask question to find out how you solve the customer's problem. 3.Never make a customer wait for you. If you need to leave to find additional help, ask the customer to follow you. 4.Offer discounts or promotions upon arrival. For example, if a customer comes in with a discount coupon from another pizza establishment; ask a manager if you can honor the competitor's coupon. If not, ask if you can give the customer a reduced price for the item. 5 .Be productive when customers are around. Ask questions, monitor the stock, or perform light cleaning. Failure to do so may give customers a negative view of the establishment. This may prevent future business. 6 .Leave a good impression on your customers as they leave your establishment. After serving a customer, it is extremely important to leave a good impression. After serving a customer, thank him for coming, hold the door open as she leaves, ask if there is anything else you can do to help. Remember, the customer is the heart of your company!
2. Through phone communication
? Remain calm. Whether you're getting cussed out or taking personal verbal attacks from a customer, you must avoid, at all costs, getting upset or angry with the customer. This includes being sarcastic. If you feel as though you are unable to keep your cool, it's best to hand the phone over to someone else or to transfer the call to someone more likely to be able to help. ? 2 Let the customer rant. It is likely that there is a lot that the customer wants to get off her chest. Let her speak, cuss, yell or whatever is necessary. Be patient with her. After she has finished, acknowledge her anger by saying something along the lines of, "We understand that you're angry. You're absolutely right, this shouldn't have happened." When she realizes that her concerns are being addressed, she will be more likely to calm down in order to get the situation sorted out.
Instructor.M.KANNAN……………III YEAR TOURISM ? 3 Give him something free. If the company messed up or the product was ineffective, provide the customer with a freebie. Strike first by offering something to show the customer that you care and you are truly sorry for what has happened. Whether it's a discount, free shipping on his next purchase or a free item, most of the time, a customer will be pleased and calm down enough to figure out a solution for the problem. ? 4 Apologize. Tell the customer that you're sorry for the problems she is having with the company or product. Explain that you vow to resolve this issue as soon as possible and that you will begin working on it as soon as you get off of the phone. ? 5 Provide him with options. Do not end the phone call by saying you will get back to him. Instead, provide him with solutions, ask him which sounds best to him, and after agreeing, provide him with a specific time frame when you will get back to him. Two or three days max is an acceptable time-frame, but the earlier the better. ? 6 Stay true to your word. Do not hang up the phone forgetting about the customer. Start working to resolve the issue immediately, or hand the issue over to someone who can start working it out. Any delay will create even more frustration. ? 7 Give the customer what she wants. If the customer was misinformed and is ranting because of her own mistake, don't spend time arguing with her. Instead, think about how much time you're wasting trying to get through to an angry person. It's better to just let the customer have what she wants, and then politely guide her to the proper web page where your policy is. This will help to avoid problems in the future. Be as humble and courteous as possible. Try not to come off as though you are blatantly telling her that she's mistaken.
1. How to Deal With an Angry Customer
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1 .Listen intently to what the customer is saying to you. Even if they are really angry because their daughter just mouthed off to them and are taking it out on you instead, you don't want to belittle their concern. Listening shows intelligence and care. Hear them out to the end of the story whenever possible. Nod your head to show that you are paying attention. Comment in empathy whenever they pause or seem to expect it. o 2 .Express empathy, but do not acknowledge your own fault, or that of another or the company, right away unless you are positive that it was an error on your part. 3 .Remove yourself from the situation mentally. Think about how petty their complaint often truly is, and think about the wide scope of importance that this issue may or may not be. 4 .Consider for yourself whether or not the customer is truly right. It's hard to be objective when someone is berating you severely for something that, even if it's true, should not be handled in such a volatile manner. The truth is, people often want something for free; pointing out the smallest weakness in a worker can lead to freebies in corporations. 5 .Apologize and accept responsibility if the customer was truly wronged. They will still be angry. They might even use this as an opportunity to switch their tactics to "I told you so." Simply be gracious, take care of the problem if you have authority. If not, you will need to call your supervisor.
Instructor.M.KANNAN……………III YEAR TOURISM
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6 .Explain what power you do and do not have within a company. If you are a waitress, merely point out the fact that you do not set the prices or policies. In order to keep your job, you have to follow the rules that were given to you. Sometimes they think you are just being mean, and some people that never work in restaurants don't understand that you have limited power as a server. 7 .Follow up even the most heated situation with "Thank you for your understanding." Concluding the confrontation on a positive and thankful note sets the tone for a pleasant and friendly future relationship for the customer and company.
Instructions
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1.. Identify the problem. Without a good working knowledge of the problem, you have no chance of providing resolution. 2 ..Empathize with the customer. Do more listening than talking, conveying that you understand how he feels, even if you disagree. A customer wants to feel understood, which will go a long way toward solving the problem. 3 ..Concentrate on the solutions truly at your disposal. Do not focus on what you cannot do, because this will agitate even more. If you keep a positive attitude and explain your options, the customer will often choose from those options. 4 ..Bring in your supervisor if an angry customer demands more than you can deliver. Politely excuse yourself and explain that you will bring this problem to the attention of your supervisor to see if something can be worked out. 5 ..Deliver on any promises or solutions in a timely, friendly way. Many times when the customer "wins," the associate will carry out the solution in an irritated fashion. Do not give in to this temptation. Apologize for the inconvenience and ask for the customer to come back again.
Golden rules;
Customer service, sometimes referred to as customer excellence, is often a job description in retail industries. However, customers can be found in many industries by other names (patients, clients, students and their parents). Each group deserves to be respected, treated with dignity and in the end, satisfied as a result of your interaction. Delivering good customer service doesn't always come naturally.
1. Be Professional
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No matter what industry you are a part of, if you deal with customers or clients you represent your company. You must be a professional. Being a
Instructor.M.KANNAN……………III YEAR TOURISM professional means several things all at once. It can mean wearing a suit and tie to show the customer you care enough to put forth some effort to look your best. It can mean watching your language so as not to use slang or profanity in the customer's presence. Being professional can mean not just pointing the customer in a particular direction but walking him over to where something is or better yet, going to get it yourself and bringing it back.
Know Your Job
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There is nothing more irritating to a customer than incompetence. With the increase in the amount of electronic information available, interacting with another human is increasingly seen as something workers reluctantly "must do." With that in mind, handing a customer's needs promptly, courteously, and with accuracy is a one of the golden rules of customer service. Give the type of service you would want in return.
Go the Extra Yard
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Know the difference between listening and hearing. Your customer may be saying one thing but really needing something else. Learn to discern your customer's needs so as to give him what he needs when he needs it. Often it will require you go beyond just the customer's request and devote time and energy to making her happy. By doing this you can secure a customer's loyal support for a long time. If you are in a commission-based position, customer service that goes above and beyond is noticed. Remember, your first duty is to the customer.
The Customer is Always Right
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The adage should actually be "the customer is always right... sort of." This is more of a state of mind than a reality these days. Nonetheless. when trying to appease a customer who believes she is right, you must show diplomacy. Good customer service would dictate that you help the customer see ways of compromising before you give in to costly or unreasonable demands. You, as an employee, owe it to your employer not to give in at the slightest confrontation. It's okay to give a little sometimes, however. Try to find a respectful compromise in the customer's favor. This way the customer knows you respect his feelings yet, that you are a loyal, honest and thoughtful employee.
Customer care check list
Your customers are the lifeblood of your business. Keeping them satisfied should be your goal.
Instructor.M.KANNAN……………III YEAR TOURISM
"The way to ensure repeated business is through better customer service," says Allbusiness' Barbara Swenson. Better customer service can be achieved by creating policies that ensure your staff is equipped to deliver the best customer experience possible. Whether you have a new business or an established company, it's a good practice to establish a checklist of customer service skills essential to your employees.
1. Product Training
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It's imperative that customer service representatives (CSRs) know the ins and outs of the products or services offered in order to provide excellent customer service."If sales and service staff do not have adequate training and expertise, they may give out antiquated or incorrect information. Most customers are relying on sales and service staff to know the products, including specifications and performance," says Swenson. Your company's customer service checklist should include policies that address ongoing training in products and services. While this is especially important for new hires, it's also important for existing employees, who should be aware of changes and additions to product lines or services provided. Allbusiness recommends that employees "convey an articulate and indepth knowledge of products and services to win customer trust and confidence. Know your company's products, services, and return policies inside and out. Try to anticipate the types of questions that customers will ask."
2. Customer Policies Training
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It's important that employees know and understand your organization's customer policies. Otherwise, customers will not know what to expect--a potential customer service disaster. "Your policy toward your customers should be clearly spelled out and consistently followed," Swenson says. "Customers do not like it when one salesperson tells them one thing and another salesperson tells them something completely different. Any discounts, return policies, and guarantees should be spelled out in writing to customers as well as reinforced by your customer service employees at the time of a sale." Additionally, Swenson recommends that your policies be printed or included on customer receipts if possible, and posted visibly throughout your establishment--or website.
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Instructor.M.KANNAN……………III YEAR TOURISM
Customer Service Training
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Knowledge of your products and services, plus customer policies, will only take your employees so far. A customer service checklist should also include training on the basics of customer service.Your customer service representatives are just that--representatives of your organization, responsible for customer service. The service that your CSRs provide reflects directly on your organization."Customer service personnel need to be trained in how to handle customers in a professional manner, one that makes the customer's interaction with your company a positive experience," Swenson notes.Customer service training should cover basics such as customer interaction skills, how to handle complaints and angry customers, and telephone/correspondence skills.
Customer Focused strategy
One of the most important doctrines in business is that the customer is always right. Businesses thrive on happy customers, and keeping a focus on the people who will help your business grow is the most vital factor in maintaining a solid business structure. In times of recession, it can be argued that businesses and retail outlets that concentrate on customer focus will do better than those that appear not to care.
1. Customer Demand
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It's said that necessity is the mother of invention, and the same goes for customer service. Customers have begun to dictate the parameters of development with demands for new technology, new ideas and innovations. In consumer electronics, the company that offers customerfocused products that appeal to the masses will do well. If a customer wants a specific item or appliance, he will look for the traits and characteristics of comparable items. The one he buys will be the best value for the money, with the best list of features and benefits. Product focus gives the customer what he wants. Customer focus gives the customer what he wants, but it can also create situations in which the customer can be persuaded to purchase something he may not have otherwise considered. It's the power of selling.
2. Selling Power
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Knowing your customer will ultimately grant you more chances of winning her business. In the days of monopolies, when people were forced to go to only one place for their goods, little choice was offered. Now, with chain stores offering discount products, reduced prices and yearround sales, people have options. Advertisers understand that by appealing to people's buying nature, they can persuade consumers to buy product X over product Y. An
Instructor.M.KANNAN……………III YEAR TOURISM advertisement with a funny jingle or a memorable punch line or slogan will cause people to remember that product. They will not think about the price, but their minds may have taken the product on board, so that when they go through the supermarket aisles they will head for it.
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Keep In Touch
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Keeping in touch with your customers will win you praise and business. If your customers know you understand their needs and requirements, they will come back to you time and again. This applies in any industry, whether a retail business, a supermarket, a construction company or a bank. Giving customers respect is a key factor in their choosing your company over another. Supermarket shoppers have long used loyalty and reward cards to save money and gain perks from shopping in certain stores. Saving up points on the reward card can bring benefits to the customer that he feels serves him as well as making him feel that his business counts.
Chapter;5;Customers handling techniques
Identification of customers’ background; Demographics are the statistical characteristics of human populations, such as age and income, that are used by businesses to identify markets for their goods and services. Demographics are used to identify who your customers are (now and in the future), where they live, and how likely they are to purchase the product you are selling. By studying your customers and potential customers through demographics, one can identify changing needs in the marketplace and adjust to them. For the businessperson, identifying the demographic groups that will be most interested in your product can mean the difference between success and failure. This is especially critical for the small businessperson who might have less room for error than larger companies. Basic demographic analysis is used for two reasons: to identify population characteristics in order to determine just who your potential customer is and to serve as a means of locating geographic areas where the largest number of potential customers live. For example, if you were interested in selling a new denture cream, it is likely that you would want to identify the counties or cities in the United States that had the largest concentration of elderly consumers. Once you identified those areas, you would want to know more about the elderly people who lived in those counties: What are their buying
Instructor.M.KANNAN……………III YEAR TOURISM habits? How many wear dentures? How many are on a fixed income? These are the types of questions that demographic studies can help answer. Until recent years, the most common method of selling goods and services was through mass marketing—trying to reach the most people possible via the media—primarily television, radio, and newspapers. Finding the people who were most likely to purchase the product was not the point—spreading the word about the product to as many people as possible was. The result of this "shotgun" approach to selling was fairly obvious. Companies were spending enormous amounts of money to reach audiences with no guarantees that anyone in that audience wanted to buy the products that were being pitched to them. Mass marketing remains a staple of advertising and marketing efforts today. But businesses now recognize that such methodologies might not be the most cost-efficient means of selling a product or service, in large part because of the fast-changing characteristics of the marketplace. After all, the past several decades have ushered in tremendous social, political, and technological changes. Lifestyles have changed dramatically as a result of the rising divorce rate and the subsequent increase in singleparent households, increased participation by women in the labor force, and other societal changes. Women have far more control over household purchasing decisions than ever before. Technology, especially the Internet, has changed the way people interact and purchase products. In addition, the sheer number of products available for purchase has exploded—consumers have literally dozens of products to choose from in almost every product category. Perhaps the most important change, however, has been in the ethnic makeup of the United States. Even with immigration restrictions, the U.S. is still the melting pot of the world. The Latin American and Asian populations are experiencing particularly explosive growth at this time. The change in diversity is especially apparent among children, where one in three American children is African American, Hispanic, or Asian.
BUILDING A CUSTOMER PROFILE
As mass marketing's appeal begins to fade, it is being replaced by target marketing. Target marketing means knowing as much as possible about your current and potential customers and reaching them through very specialized advertising or marketing campaigns. Demographic data is the cornerstone of target marketing. The first question to ask when using target marketing is: Is a product to be sold to a household or an individual? Products such as refrigerators, stoves, and dinette sets are sold to a household (a household might need only one of such products), while products such as shoes and toothbrushes are sold to individuals (each individual who lives in a household needs those products). Households can be broken down as "family" households and "nonfamily" households. The younger the person, the more likely they are to live in a nonfamily household (such as with a roommate or significant other). Everyone in the U.S., with the exception of the homeless, live in a household or
Instructor.M.KANNAN……………III YEAR TOURISM something known as "group quarters." Group quarters covers such diverse living spaces as nursing homes, prisons, and college dormitories. With the exception of dormitories, most group quarters are considered to be unimportant marketing targets. Once that question has been answered, a company can use demographics to compile a "customer profile" of their target audience. Factors that should be considered in the profile include: Ethnic background . It is important to make a distinction between ethnicity and race. The term "Hispanic," refers to an ethnic group, not a race of people. Income. In general, income tends to increase with age as people obtain better-paying jobs and receive promotions. Married couples often have a higher income because both spouses are working. Income is recorded by the U.S. Census Bureau in a number of ways, each with different ramifications for marketers. Income is defined as all money and public assistance that is earned before taxes and union dues are taken out. Personal income is money plus noncash benefits such as food stamps. Disposable income is the money that is left after taxes are taken out, and discretionary income is the amount of money left after taxes are paid and necessities such as food and shelter are paid for. It is often this last type of income that marketers are most interested in. Income can be reported for households or individuals. Education level. This is an increasingly important factor as technology becomes more important to day-to-day living. Generally, the more education a person has, the greater the income they earn, thus the more money they have to purchase products. Education is most often measured by level of schooling completed. As a rule of thumb, collegeeducated people are among the most desirable consumer groups, but studies show that they also tend to be the least brand loyal. This means a business may have to work harder to reach and keep those customers. Other important demographic factors include age, sex, geographic location, occupation, size of family, and ages of the children in the family unit. In addition, analysis of these demographic characteristics is often undertaken in conjunction with so-called lifestyle factors. Studies of these factors can be very helpful in shaping marketing campaigns and other business efforts because analysis indicates a high correlation between certain lifestyle characteristics and their buying patterns. Key lifestyle attributes include the following:
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Cultural background Religious background and beliefs Values Political convictions Hobbies/Recreational activities Musical preferences Reading preferences Entertainment preferences (television viewing, moviegoing, etc.)
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Eating habits Travel/vacation preferences
This examination of the less tangible aspects of the consumer market is also sometimes known as psychographics. The data contained in both cluster systems and lifestyle/psychographic surveys must be considered to develop a truly accurate customer profile. Demographic information is readily available from companies that repackage and sell U.S. Census Bureau data. Most common is something called a cluster system, which is also known as a geodemographic segmentation system. Cluster systems take large numbers of demographic variables (age, income, ethnic background, occupation, etc.) and combine them to create profiles of individuals and households. When used in conjunction with business mapping systems that link demographic data to geographic areas (as specific as the household level, but more commonly by ZIP Codes or other market areas), cluster systems are a powerful marketing tool.
Identification of customers’ expectation and needs;
introduction
You are the 'Product' Tourism is essentially an amalgam of service industries. The 'products' we sell are 'experiences'. A motel room, tour bus, fishing boat, café or any other piece of infrastructure are not the 'product', they are simply the means to deliver the visitor 'experience'. Tourism 'experiences' are largely created through service and, in particular, through the people who deliver that service. When working in the tourism industry you are more than just a 'supplier' - you are a 'host'. Long after the holiday photos have started to fade, it is the service, the experiences and the people who helped to create them that visitors remember. Whether you are a single operator or a regional tourism association, creating exemplary service requires an intimate understanding of your customer and the wider marketplace.
Segment your thinking There is no such thing as the 'mass market', especially in the tourism industry. The marketplace comprises smaller and often niche segments that reflect people's diverse tastes, interests, values and priorities.
Instructor.M.KANNAN……………III YEAR TOURISM Almost all products have higher appeal to some market segments than others. It is your challenge as a tourism operator to discover which segments will produce the best return on your effort and financial investment. Advertising is an expensive way to reach new prospects, so your marketing effort needs to be as targeted as possible. Your message and product offer needs to reach those who will respond most positively to it and at times when they're most likely to respond. To determine the best product offering to meet the needs and wants of your market segment, as well as to cost-effectively target your marketing message, it is essential that you thoroughly understand your customer base. For regional and local tourism associations, the challenge is to not only understand the characteristics of the region's key market segments, but also to convey that knowledge to your operators and to introduce mechanisms to ensure higher standards of customer service across the town or region. Luckily, in the tourism industry there is no shortage of material and services available cheaply, or at no cost, to help you understand the customer.
Satisfaction is no longer enough
You'll find many definitions of 'customer satisfaction', but what it boils down to is the difference between…. 1. what the consumer expects from you, your business and staff , vs 2. what you actually deliver to them. Better understanding of the marketplace should produce higher performance and levels of customer satisfaction. This usually results in:
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Increased loyalty Future visitation Greater tolerance of price increases Enhanced reputation Cheap/ no cost customer acquisition Improved staff morale and workplace satisfaction
You need to evaluate market segments for: size, potential yield, basic demographic characteristics (eg age, sex, socio-economic status), geographic proximity, business growth potential, needs, wants and values. The Roy Morgan/ Colin Betjeman psychographic segmentation of the marketplace has underpinned Tourism Victoria's marketing for more than 15 years.
Instructor.M.KANNAN……………III YEAR TOURISM It's often said that simply meeting customer 'needs and wants' is now the everyday expectation of consumers. It may get them through your door once, but it will not ensure that they will buy again and will probably not generate word of mouth endorsement among friends, family and colleagues. To build repeat business and to achieve excellent word-of-mouth you must aim to exceed their wants, needs and expectations. It's called the 'delight' factor and is best described as the 'surprise' component of your product offer. In tourism and travel, this delight factor is most often generated through exceptional and personalised service.To read how two major tourism attractions used research to identify key issues and to subsequently improve their visitor experience click on the following links Look before you leap If you are looking to develop a new tourism product, you have the opportunity to carefully plan and tailor your product to satisfy the highest yielding market segment/s. This is achieved not just through the 'bricks and mortar' of your facility, but, more importantly, how you meet and exceed the service and experiential needs of those segment/s. The information needed to be known by someone contemplating establishing a new tourism product, or buying an existing business includes:
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Will the product meet a real market need and demand ? What competition already exists ? What will be my point of difference ? Does the product have synergy with the branding and market positioning of the region ? Who will best respond to the product offer ? Is that market segment large enough – and accessible enough – to sustain business for the majority of the year ? What service standards are expected by that market segment/s
To read the case study of a small tourism operator whose careful analysis of the marketplace has resulted in an annual average occupancy of 93% click on the following link. Fine-tuning can pay dividends If you have an existing tourism product, then it's a matter of choosing and targeting the market segment/s that will best respond to your product offer. If a segment can't be found, it may mean that your product is outdated and may need re-working to enable it to survive in today's very competitive tourism environment.
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Where they live Leisure/ recreation interests
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Travel patterns Disposable income Spending habits and priorities Values How they obtain their information
How can you do this ?
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Ask questions Listen to your customers' comments Observe other businesses Consult tourism industry colleagues Consult relevant industry associations Conduct surveys Analyse existing data
Where is the data available ?
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Council Economic Development Units Regional Tourism Organisations Visitor Information Centre staff and surveys Local/ regional tourism studies/ strategies Other State/ Territory Tourism Organisation's research libraries (online) Industry associations ( Industry and professional journals Industry conferences and workshops (key presentations are often available online) Market research companies Tourism industry consultants Newspapers (business sections, opinion pages and letters to the editor are often good sources)
Find out more information about data available to you to help understand your customers and the industry environment. It's important to remember that once you have selected your market segment/s, you will need to continue to monitor the characteristics of that segment. Just as fashions change, so to do social needs and trends. The health of the tourism industry and your business depends on consumer confidence and the discretionary dollar available in the community. Spending habits and priorities can change rapidly in response to economic and emotional factors. To read about accommodation proprietors who used all available resources to establish and then to fine-tune their product, to find out about their target market, and who are still keeping up with the ever changing trends of the industry, the people should try to satisfy their expectation.
Instructor.M.KANNAN……………III YEAR TOURISM If you are working off customer survey data that is more than 2 years old, then you're probably out of touch with what your customer is thinking and what they require from a tourism product. Regional tourism organizations have an important responsibility to continually monitor the marketplace and to provide this information to their businesses. To read how an RTO conducts its own research to ensure that the right mix of accommodation is available within the region to meet visitor expectations. Surveying makes very good 'cents' If you are already an operator, one of the simplest and most cost-effective ways to obtain customer data is to conduct your own survey. This can be a series of structured questions you ask when:
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You receive enquiries by telephone Customers check-in Customers are enjoying your product Customers check-out You conduct a post-visit follow-up
If you are going to conduct primary research, remember:
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Format the questions for ease of data processing Minimise the number of questions and keep them brief Make the questions meaningful to your business Consider offering an incentive (especially for written surveys) Set-aside the time to regularly analyse the results Share the results with your staff
There are many companies who can assist you to accurately construct and conduct surveys.. Why bother ? If constructed and conducted correctly, the results of surveys can not only inform you about your customers, but can also reveal your business's strengths and weaknesses. Regular analysis may enable you to correct problems and react to emerging trends before they can adversely affect the business. This is particularly relevant to those businesses involved with international markets. However, there are plenty of examples of tourism operators in regional Australia who failed to read the dramatic changes in domestic trends during the past two decades.
Instructor.M.KANNAN……………III YEAR TOURISM By thoroughly understanding your market segments, you will be able to identify key selling points and to determine product offers and marketing messages that may appeal to them. Having analysed the information processing habits of your segments, you will also be more cost-effective in choosing which publications and electronic media you could use to reach them. One product does not make an 'experience' No one in the tourism industry operates in isolation. The total experience relies on quality delivery from many suppliers. “…the industry comprises the airline that brings the tourists, the buses and taxis transporting them, the hotels housing them, the restaurants feeding them, the coaches and boats showing them the sites, the shops selling them goods and the theatre and entertainment areas that provide amusement. “ (Stimson et al, 1996). Many other industries rely on vertical integration of processes and suppliers to ensure consistent quality. However, tourism and hospitality is an amalgam of strongly individualistic businesses and business people, who need to rely on the cooperation and inter-dependence of others to build the overall visitor experience. This makes the issue of quality control even more critical for the tourism industry, especially for tourism organisations and associations, who need to build quality control across their entire sector. Establishing strong, mutually beneficial relationships with suppliers will enable you to have some influence over the product they deliver to your guest. One prominent Victorian accommodation provider will not recommend anything in the region to its customers until it has been assessed by a senior staff member. They believe that every recommendation they make is a direct reflection upon the professionalism and customer service of their business. Talk to your regional tourism organisation about how it approaches industry networking, training and quality control across the local sector. Observe how other successful regions build the quality of the local product and service delivery. Tourism Victoria's Industry Development Unit and Tourism Alliance Victoria can also help.
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SERVICES PROVIDED ;
Tourism Tactics is a specialist in providing tourism business with support and has developed a range of templates and resources that can assist your business with:
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Tracking marketing efforts and customer service levels. Providing relevant pricing information to travel buyers. Getting prepared for Qualmark. Business planning Optimising your website. Ensuring customers have a great experience.
Tourism Tactics is available to assist with a range of marketing and business development functions. TOURISM PLANNING Tourism Tactics is experienced at assessing current business practices and assisting organisations postion themselves in the market to be more successful. The process includes analysing the current competitor situation, defining the current market and potential new markets, and suggesting product development ideas. After the market and product assessment stage is complete Tourism Tactics is able to produce a strategic plan along with an action list to assist the business implement the plan. FEASIBILITY STUDIES Tourism Tactics have undertaken feasibility studies for proposed visitor attractions and accommodation. Key outcomes that Tourism Tactics reports: assessment of current market environment, key competitors, market research amongst key industry informants, analysis of recent international and domestic visitor trends, projections of achievable visitor numbers and admission fees. BUSINESS DEVELOPMENT - SALES CALLS AND TRAINING VISITS Tourism Tactics is available to assist your business grow its distribution via inbound tour operators, wholesalers and other agents. As a result of being in the industry 10 years Tourism Tactics has established many contacts. We will ensure that we
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match your business with the most appropriate contacts. Included as services in this area are sales calls and training visits, newsletter communications, rate distribution and liaison services. Sales representation in Australia is also provided. MARKETING AND ADVERTISING PLANNING Are you wondering what marketing you should be doing to reach your target audience? Tourism Tactics can help you with a plan that will ensure your marketing is generating enquiries and bookings. Firstly we will complete a marketing audit to look at what advertising you are currently doing, who your target audience is, and identify your key selling points. By taking a closer look at your customers we can start to understand what types of marketing material they are using to make their travel decisions and whether your current selection is appropriate. From the audit we will also come up with the key messages you want to put forward in your advertising. This information becomes the basis for a plan that will be used to undertake the production of revised marketing material and ensuring it is distributed in the most effective places. We have had lots of experience working with ?creative? agencies, printers, and web developers, so we can take on the role as account manager for you or if you want to do this yourself we can equip you with the appropriate brief to get the job done. WEB MARKETING Your website is an important sales tool for your tourism business – it is a chance to sell your product to a traveller before they have even entered New Zealand. Statistics amongst some of your key target markets (Australia and UK) are showing that the internet is the most popular way of obtaining travel information. If you are not generating business through your site it means you are not visible to your potential clients and that they have probably found your market competitorNeed a new website - we work with the best website developers to make sure you get a site that is right for your business. Website marketing requires time, patience and hard work, and just like any marketing plan, goals and performance measures need to be set. We will take an in-depth look at how well your website is performing, present you with a detailed report and offer our ideas as to how your site can reach its full potential.
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Dealing with awkward customers
People who work in sales and especially, customer service are at the sharp end of having to deal with angry people and it‘s not restricted to just these two types of job that have to bear the brunt of an irate customer. Most of us at some time in our jobs will encounter an uncomfortable situation like this no matter what line of work we do. We‘ll be faced with having to deal with fault finders, picky people, complainers, angry people or just down right know-it-alls and, whilst this isn‘t the most pleasant of experiences we‘ll have in our everyday working lives, it‘s important to know how to deal with them. Why a Correct Approach is Important to Business What some companies fail to realise is that it‘s not the angry person on the end of a phone or face-to-face which presents the most risk of you losing business. For every person who complains, there are perhaps 10 others who have simply gone away and taken their business elsewhere without you ever realising that they were unhappy with your product or service. Therefore, whilst a customer may be ranting and raving at you over the phone, it‘s important to remember that, while they are still there complaining, they are still a valued customer and, as such, you have an ideal opportunity to win them over. This not only benefits the company but if you‘re able to turn the situation around, you‘ll gain more confidence and will be much more adept in tackling difficult customers next time it happens. Of course, you‘re not going to be able to please all of the people all of the time and no matter how much empathy you show or how tactful and diplomatic you are, you‘re not going to win every ?battle‘ and some customers are, inevitably, going to vent their spleen and have already decided never to do business with your company again. However, if you adopt a correct approach, you can rescue many situations which would otherwise have resulted in another lost customer. Here are a few tips in how to deal with a difficult one. It’s Not You Personally That’s the Problem….It’s the Problem Itself When a person complains about something, it‘s important to remember that they‘re not attacking you personally. It‘s a problem they‘ve encountered which has caused them to fly off the handle.
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Yes, they might be ranting and raving or, perhaps, even swearing at you but if you take a deep breath – remember they‘re not angry at YOU personally but because they have a problem. Therefore, even though you may think that their tone and/or language are highly inappropriate, it‘s crucial you maintain a respect for the person even if you don‘t respect their behaviour towards you. Remember It’s YOU that has the Control People can often ?lose it‘ completely when they are annoyed. They‘ll shout and scream and gabble so fast, it‘s often hard to get to the gist of knowing what their particular problem is. However, you are not angry and are calm and, therefore, you have the power and you are in control by remaining restrained. If you adopt this mentality whenever you‘re faced with an irate customer, you‘re likely to eventually win the customer around. But, the moment you start reacting emotionally to their outburst, you‘ve released your grip on the power and control of the situation which will then escalate the problem even further and is likely to result in failure in terms of coming to a satisfactory resolution. Listen Before Saying Anything Once you?ve asked the person to explain their problem or issue to you, it?s then crucial that you simply listen without any kind of interruption whatsoever until they?ve finished or pause for breath to ask you a question. Not only will this enable you to gain a thorough comprehension of what the problem is, by interrupting them „mid-flow? when they are likely to be highly charged emotionally, you run the risk of them getting even more upset. By letting them speak until they?ve completed what they want to say, you?ll soon become accustomed to a plateau which is the point at which their anger is at its fiercest and then, once this climax point has been reached, they?ll start to slow down and regain their composure before reaching the end of what they?ve had to say – Then, and only then, is it your time to speak. Display Empathy Once they?ve finished their diatribe, it?s important that you try to look at the situation from their perspective. Having not interrupted their flow and by listening intently, it?s already sent a signal to the person that you have listened and that you care about them and the situation they?re facing. Saying things like, “I can understand your situation” or “I?m sorry that you?ve been having this problem” can have a real positive effect of calming the person down to an extent to which you can start
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having meaningful dialogue between you. Identifying the Issue; Once you have identified what the problem is, it?s important that you re-iterate it to the customer so that they are sure that you have heard them correctly. For example, “Now, would you mind if I just clarify that with you. You said you?d paid £10 extra for next day delivery service but the goods didn?t arrive for a further three days, is that correct?” If you?ve assumed correctly, the customer will say „yes? and then you can move on. If not, they might wish to explain things further before you can proceed to the next stage. Once they?ve acknowledged that you have understood them correctly, you re-iterate your apologies then start to work upon a resolution to the problem. Don’t Apportion Blame Before resolving the problem, however, it?s important that you don?t apportion blame – neither to the customer or to your company directly to prevent damaging its reputation further. It?s proper and correct for you to apologise if your company has made a mistake but there is a right and wrong way of doing this. In the situation just described, the wrong way would be to say, “I?m sorry. It?s hardly surprising your order was delayed. Two of the staff are on holiday at present and that department is way behind with processing orders”. In responding that way, you are going to irk the customer even more. What you should be saying is something along the lines of; “I?m sorry to hear that. There has clearly been a problem with communication and the processing of orders here. I can?t change that but I am going to try to rectify the situation for you.” By giving such a response, you have acknowledged the problem and apologised for it but without apportioning direct blame. The Resolution Now it?s time to try to resolve the situation. There is never going to be a successful outcome every time here and what may be a satisfactory resolution for one customer may not appease another but what is important is to go about trying to resolve the problem in the correct manner. Let?s go back to our very
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simple problem with the late delivery of goods. Your response might be, “I am going to refund the £10 as we clearly didn?t get the goods to you by the next day as promised and, as you are a valued customer, I?m going to send you a voucher for £20 which you can use against any future purchase you make with us”. Hopefully, this will not only appease the customer but you?ve also opened up the opportunity for them to shop again with you. Of course, you?re never going to get all customers to accept your offer and some of them will choose to refuse it. At this point, it?s acceptable for you to ask them; “How would you like us to resolve the situation which would be satisfactory to you?” This then leaves the ball in the customer?s court for them to respond. Occasionally, they?ll ask for compensation which you can?t agree to and they will want to escalate their issue higher up the chain of command but by taking all of these steps, you?ll have done your job to the best of your ability and in a manner which is likely to resolve most issues. The more you encounter difficult customers, the easier it becomes to deal with them and the more you?ll experience satisfactory outcomes. As long as you adopt an approach similar to that above, you?ll win more than you?ll lose. Nevertheless, always bear in mind that you?re never going to win them all.
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Chapter 6. Factors determining quality of services in travel and tourism;
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