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Attached is the assignment instruction and book. Service Recovery Assignment   After reading Chapter 7 in your textbook, develop a specific  service recovery process and options for customer recovery  for each of the following situations. Also, include a process for  measuring customer satisfaction  for each: 1. For servers at a restaurant: a customer doesn’t like his food. 2. For a cell phone service call center: A customer is disappointed by the number of dropped calls she has been experiencing. 3. For an office manager: You didn’t order enough supplies, and your co-workers are upset they don’t have the materials they need to finish their job. 4. For a daycare owner: One of your employees told a child to “shut up” and the parent found out about it and is very upset. 5. For a contractor: You have been very busy and unable to complete a customer’s two-bathroom remodel on time. The customer is angry because she expects company and the bathrooms are not complete. Writing must be college-level, including grammar, spelling, punctuation, and syntax. Important, please  proofread  for comprehension before submitting. You should submit 1. Specific  service recovery processes and options for customer recovery  and include a process for  measuring customer satisfaction  for each. © K ur ha n/ Sh ut te rs to ck The World of Customer Service Third Edition Pattie Gibson, Ed.D. Assistant Professor Northern Arizona University Flagstaff, Arizona Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. The World of Customer Service, Third Edition Pattie Gibson, Ed.D. VP, Editorial Director: Jack W. 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Further permissions questions can be e-mailed to [email protected] Library of Congress Control Number: 2011926550 ISBN-13: 978-0-8400-6424-0 ISBN-10: 0-8400-6424-1 South-Western 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America 1 2 3 4 5 6 7 15 14 13 12 11 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. © K ur ha n/ Sh ut te rs to ck © K ur ha n/ Sh ut te rs to ck TABLE OF CONTENTS PART 1 The Customer Service Environment 2 CHAPTER 1 What Is Customer Service? 4 Customer Service Today 6 / Identifying the Customer 9 / Needs of Customers 10 / The Social Customer 11 / Wrapping Up 15 / Summary 16 CHAPTER 2 The Global Customer 21 Impact of Globalization 22 / Cultural Diversity and the Global Customer 24 / Customer Personalities 28 / Generational Differences 30 / The Disabled Customer 33 / Wrapping Up 36 / Summary 36 CHAPTER 3 Exceptional Customer Service 41 Customer Perceptions 42 / Earning Customer Loyalty 47 / Who is Right for Customer Service? 49 / Wrapping Up 52 / Summary 52 CHAPTER 4 Customer Service Strategy 56 Customer Service Intelligence 57 / Customer Relationship Management 61 / Service Infrastructure 63 / Marketing and Sales 65 / Wrapping Up 66 / Summary 67 PART 2 Essential Customer Service Skills 70 CHAPTER 5 Critical Workplace Skills 72 Time Management 73 / Organizational Skills 77 / Stress Management 78 / Anger Management 82 / Teamwork 83 / Wrapping Up 85 / Summary 85 CHAPTER 6 Problem Solving 88 Understanding Complaints 89 / Problem Solving 94 / Negotiating Skills 97 / An Effective Win-Back Plan 99 / Wrapping Up 101 / Summary 102 CHAPTER 7 Extreme Customers and Customer Retention 106 Extreme Customers 107 / Proactive Problem Solving 112 / Measuring Customer Satisfaction 113 / Customer Retention 118 / Wrapping Up 119 / Summary 120 CHAPTER 8 Managing Customer Service 123 Setting Service Standards 124 / Understanding the CSR Position 126 / Retaining Service Professionals 128 / Managing a Customer Service Department 130 / Wrapping Up 133 / Summary 133 iii Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. PART 3 Communication Skills 136 CHAPTER 9 Communication Essentials 138 The Basics of Communication 139 / Communication Styles 141 / Communicating with Customers 143 / Fundamentals of Business Writing 148 / Wrapping Up 151 / Summary 151 CHAPTER 10 Customer-Focused Listening 155 Levels of Listening 156 / Ineffective Listening 158 / Effective Listening 158 / Roadblocks to Listening 163 / Wrapping Up 164 / Summary 165 CHAPTER 11 Nonverbal Communication, Dress, and Manners 169 Customer-Friendly Body Language 170 / Dressing to Make a Good Impression 173 / Practicing Etiquette and Manners 176 / Wrapping Up 180 / Summary 180 CHAPTER 12 Telephone and Digital Communication 184 Answering the Phone 185 / Voice Technologies 188 / Evaluating Your Voice Delivery 191 / Telemarketing Activities 192 / Web-Driven Service Technologies 192 / Wrapping Up … Future Challenges for Customer Service 194 / Summary 195 Glossary / 199 Index / 205 iv TABLE OF CONTENTS Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. © K ur ha n/ Sh ut te rs to ck © K ur ha n/ Sh ut te rs to ck PREFACE T he third edition of The World of Customer Service is written in a practical, commonsense manner and reflects current customer service accepted wisdom, concepts, and hints. This multidisciplinary textbook is designed to teach exemplary, yet “down-to earth,” applied customer service thinking in business organizations—public or private, domestic or international. The customer service function continues to be a critical element in the success and future of all businesses competing in today’s economy. With global markets more common than ever, it is a major challenge for organizations to attract and retain customers because more companies are competing for the same customer. The secret in getting and keeping loyal customers today comes in creating new business and using a customer-centric approach with technology tools to communicate on a global scale. Successful organizations are emerging with a common focus— customers. Further, these thriving organizations live the mantra that each member in an organization is involved in delivering exceptional cus- tomer service. v Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. AUDIENCE FOR TEXTBOOK The World of Customer Service is designed to be used at any level of higher education or for corporate training programs in business and industry. For example, students may be enrolled in a customer service course offered in community colleges or career schools. This text is also ideal for a concentrated study of customer service in career readiness cur- riculums at the community and career college levels. AT A GLANCE Part 1: The Customer Service Environment In the opening part, Chapters 1–4, the reader is introduced to the basic concepts of customer service. Coverage begins with describing what customer-centric service is and how a customer is defined. Discussion pro- ceeds to identifying the global customers served today and what exceptional customer service is. Finally, customer service strategy and its importance in developing a strong service culture are introduced. Part 2: Essential Customer Service Skills Chapters 5–8 focus on the essential personal skills that a customer service representative must demonstrate on the job. This part first addresses time, stress, and anger management, as well as the benefits of teamwork and orga- nizational skills. Next, problem solving, identifying dissatisfied customers, handling their complaints, and then winning them back is covered. Finally, the importance of managing, training, and rewarding service professionals is examined. Part 3: Communication Skills Communication skills needed for effective customer service are covered in Chapters 9–12. These skills begin with understanding the essentials of communicating and continue with the importance of customer-focused listening skills, nonverbal communication, dress, and manners. With the emergence of many Web-driven technologies, effective digital com- munication is also discussed. NEW TO THIS EDITION To update and further strengthen coverage of the current research and practice in the customer service field, topics throughout the text are cov- ered in more depth, with an emphasis on the global customer, the impact social media has on customer decision making, and the importance of new digital technologies as a means of gathering and supporting a cus- tomer base. vi PREFACE Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. New Chapters Customer Service Strategy, Chapter 4, focuses on gathering customer intelligence and analyzing marketing and sales information in order to maximize revenue and customer satisfaction. Critical Workplace Skills, Chapter 5, is a fresh look at time, stress, and anger management, teamwork, and organizational skills. Problem Solving, Chapter 6, addresses the skills and strategies needed for recognizing, negotiating, and resolving customer complaints. New Features Business in Action launches each chapter with a close look at a real-world company and how it handles customer service issues. Make it a Habit provides information about the qualities and skills that will help students polish their customer service behaviors and attitudes. Focus on Best Practices offers short case studies of how various busi- nesses address the topic in each chapter. What Do You Think? asks students to reflect on the concepts they have learned and how they relate to their own experiences and philoso- phies in a short journal entry. New Online Supplement CourseMate—Cengage Learning’s CourseMate brings course concepts to life with interactive learning, study, and exam preparation tools that support the printed textbook. Students will have access to an interactive eBook, videos, flashcards, quizzing, and other tools to guide and encour- age learning. Watch student comprehension soar as they work with the textbook and the textbook-specific website. Experience it today. ADDITIONAL FEATURES Many features remain from the prior edition because they have proven to be well received and hold the reader’s attention: • Quotations introduce each chapter with thoughts from famous people or historians that prompt and focus interest. • Customer Service Tips provide practical suggestions from customer ser- vice providers. • Ethics/Choices demonstrates ethical dilemmas and gets students think- ing about how they would handle difficult situations. • Remember This guides students in reviewing key points in each chapter while serving as a reference tool for addressing on-the-job problems. • Industry Profiles introduce each of the three parts and profile a real person in the customer service profession. These profiles share personal PREFACE vii Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. information about attitude, education, and work experience as applied to essential elements of customer service today. END OF CHAPTER ACTIVITIES • Critical Thinking questions offer challenging ways for students to apply their learning skills. • What Do You Think NOW? requires students to revisit their journal entries and further relate concepts to their philosophy and work experiences. • Online Research Activities are designed to expand on customer service topics. Guided instructions are given to assist students in gathering pertinent data for completing these projects. • Communication Skills at Work presents opportunities for students to apply their communication skills to resolve customer service problems effectively. • Decision Making at Work provides students with the opportunity to apply their decision-making skills as they think through and effectively address customer service concerns. • A Case Study reinforces chapter content using real life scenarios to address important issues in the workplace that include human relations and worker attitude problems. AVAILABLE SUPPLEMENTS • Instructor’s Resource CD includes the Instructor’s Manual with chapter outlines, teaching suggestions, and solutions to book activities and projects. The IRCD also includes two variations of the course syllabus, PowerPoint® presentations for each chapter, and ExamView® test banks with solutions for each chapter. • Product Website provides flashcards, crossword puzzles, links to additional Internet resources, and more. www.cengage.com/marketing/gibson viii PREFACE Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. © K ur ha n/ Sh ut te rs to ck © K ur ha n/ Sh ut te rs to ck ACKNOWLEDGMENTS D uring the development of this textbook, it underwent several prac-tical and constructive revisions. I would like to recognize and thank all those who helped make this a stronger and more cohesive book. Special thanks to the outstanding reviewers for this edition: Russell Brown Navarro College Corsicana, TX Edward M. Dell Cuyahoga Community College Cleveland, OH Kimberly Goudy Central Ohio Technical College Newark, OH DeAnn Hurtado Sinclair Community College Dayton, OH Amanda McClellan Antonelli College Hattiesburg, MS D. Ross Thomson, Ph. D. Careers by Choice Clifton Park, NY R. L. Whipple Carrington College Boise, ID ABOUT THE AUTHOR For over 35 years, Dr. Pattie Gibson (Odgers) has taught a variety of courses in computer applications and business systems to high school, community college, and university students in Arizona and overseas in West Berlin and Stuttgart, Germany. She received her bachelor’s and master’s degrees from Arizona State University and her doctorate from Northern Arizona Univer- sity. She is currently an associate professor at Northern Arizona University where she works with graduate students and teaches graduate-level educa- tional leadership and technology classes. ix Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. © K ur ha n/ Sh ut te rs to ck © S io b ha n Lo ve PART 1 The Customer Service Environment Chapter 1 What Is Customer Service? Chapter 2 The Global Customer Chapter 3 Exceptional Customer Service Chapter 4 Customer Service Strategy Siobhan Love, Massage Envy, Flagstaff, Arizona Recognized recently by Massage Envy as managing one of the top-ten customer service locations in the United States, co-owner Siobhan Love is an example of a contemporary customer service provider who combines technology and the personal approach when serving clients. 2 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Delivering a welcoming customer service environ- ment is essential to our success. A high percentage of the population has had no, or minimal, exposure to massage, and may be intimidated by such a per- sonal experience. From the time we advertise, to booking an appointment, to confirming, to standing and greeting customers, to providing services, and finally to thanking them when they leave, the entire experience should be welcoming. By doing so, we help customers change their view of massage as something that is simply a luxury to a view that recognizes it as a necessity for health maintenance. n1 What are the biggest challenges in customer service today? The biggest challenge in customer service is having your employees subscribe with enthusiasm to your service approach. When this goal is achieved, busi- ness soars. So, knowing how to encourage service providers, build morale, and maintain excitement takes ongoing and creative efforts. We are highly selective of the people who want to join our environ- ment. We look for applicants who are personable, genuine, wholesome, open, and honest with a desire to listen and learn. n2 What advice would you offer customer service representatives? With the vast use of technology at our fingertips, it’s incredibly powerful that we can get our name out there, advertise, promote, and entice customers globally. Still, one-on-one personal interactions can- not be replaced. Communications with people make the difference because connections are cultivated, not automated. People want to be treated well. They don’t just want to be acknowledged—they need to be appre- ciated. They are paying for a service and deserve per- sonal recognition. So, our front-desk service reps stand up and greet customers, remember their names, thank them, ask them how their day is; and as they get to know them, inquire how their family is doing, where they’re going on vacation, and so forth. You can make someone’s day better just by showing sincere interest in them and you can also make huge steps toward developing a loyal customer as well. n3 To what extent do you use social media and online technologies? We use social media, such as Facebook and Twitter, because of its ability to reach a vast audience. It provides a free and easily accessible avenue to dis- perse information. We use social media to promote specials, announce events, and to touch base with subscribers on a regular basis. Though its reach is somewhat interactive and superficial, it does create a reminder of our business and a memory prompt of the feeling they had the last time they experienced our services. Online forums, opinion sites, and blogs are trickier because they are independent reviews not endorsed by the company. Everyone knows that personal views are subjective and can vary greatly. These, however, create a challenge (and an oppor- tunity) to most businesses to ensure their quality of care is consistently high, because they never know when a negative online review will impact them harshly! n4 What technologies do you use to collect customer feedback? In our clinic, every client who chooses to have an email address on file automatically receives an elec- tronic comment card from us. This ensures that we receive feedback; and if necessary, we address any customer service concerns immediately one-on-one. This action prevents a negative review that may be posted in cyberspace and cannot be easily addressed. It’s worth restating that personalized interaction with customers is extremely important. In my opin- ion, it’s far easier for a disgruntled client to type vitriol into their computer about a poor experience, when they don’t have a distinctive relationship established with the business. FIRST IMPRESSIONS How does Siobhan Love combine technology and the personal approach in her business practice? Record your impressions in your journal. 3 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. © Kurhan/Shutterstock CHAPTER 1 What Is Customer Service? There is only one boss—the customer. And he can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else. SAM WALTON, FOUNDER OF WALMART OBJECTIVES 1. Define customer service and list its goals and challenges. 2. Defend the organizational benefits of serving both the external and internal customer well. 3. List customer needs. 4. Describe the concept of social customers relative to their purchasing habits and impact on organizations. 4 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. BUSINESS IN ACTION Zappos The shoe and clothing website Zappos.com defines customer service in its own effec- tive way. It has built its brand and success by placing customer support as a core strategy. For example, customer service representatives are encouraged to take whatever time is needed, using chats and e-mail messaging for example, to help customers find the specific shoes they are looking for. To the firm’s owner, Tony Hsieh, employees don’t have to be passionate about shoes, but they do have to be passionate about service. Zappos operates 24/7/365 from a 77,000 square-foot Las Vegas warehouse. It is unique among wholesale/retailers because it physically stocks vast numbers of styles and brands rather than shipping orders from specific shoe manufacturers. In that way, Zappos can assure customers of immediate delivery with a product return policy good for up to a year from purchase. Coupled with a free shipping and return policy, Zappos cultivates loyal and repeat customers. The company is being sold to Amazon for almost a billion dollars. This selling price is a clear indication that companies like Zappos, who emphasize excellence in service, can become valuable com- modities. Amazon and Zappos are two companies that use a customer service channel as an integral part of selling its products. SOURCE: Barry Moltz, “The 10 Customer Service Trends for 2010,” Small Business Trends, December 15, 2009, http://smallbiztrends.com/2009/12/customer-service- trends-2010.html accessed November 2, 2010. What is customer service? It is not about fancy products or intricate corporate culture; it is about dedicated, trustworthy employees and loyal, satisfied customers. Today, with more competitors vying for customers’ attention, exceptional customer ser- vice is essential to staying profitable in business. Businesses—large or small, industrial or retail, new or established—cannot survive without customers. To attract and retain them, companies listen to customers and strive hard to serve them well. The approach in this book is to place you in the role of a service provider. In your career as a customer service representative chances are much of your on-the-job success may depend upon your ability, knowledge, and willingness to provide excep- tional customer service. According to the Bureau of Labor Statistics, there is a demand for service- related jobs. Between 2008 and 2018, employment in service occupations is projected to increase by 4.1 million, or 14 percent, which is the second-largest growth rate among the major occupational groups. 1 To help you imagine yourself in the role of a customer service provider, this book provides a vari- ety of interactive exercises to connect your under- standing of the role of customer service provider with your experience as a consumer. The develop- ment of quality customer service skills is emphasized in nearly every exercise and feature in this edition of The World of Customer Service. These activities are intentionally designed so that you can reflect upon issues and refine the service skills you need based largely on how you would like to be treated as a customer. For example, in responding to the What Do You Think? feature, you are asked to react to a 1Occupational Outlook Handbook, 2010-11 Edition, Bureau of Labor Statistics http://www.bls.gov/oco/oco2003.htm accessed November 12, 2010. CHAPTER 1 What Is Customer Service? 5 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. chapter topic and prepare short and simple journal reflections drawn from your experiences. Respond to these exercises thoughtfully and use this interactive text as practical …