Customer Service In Business aqa

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Exam code:8132

Methods of customer service

Customer service includes a businesses actions and behaviours experienced by customers before, during and after their purchase
Good customer service involves meeting clients’ needs and keeping them happy
It can be provided in a variety of ways

How businesses provide good customer service

Method	Example
Pre-purchase information	Volvo provides detailed printed brochures for each of its vehicles as well as extensive information online
In-store support	Mac Cosmetics employs skilled make-up staff in stores to advise customers on suitable products and demonstrate their application
Business premises	John Lewis operates well-laid out stores or comfortable venues with appropriate facilities, such as lifts, WCs and changing rooms
After-sales service	IKEA offers a free 25 year guarantee against defects in materials and workmanship that covers many of its mattresses and bed bases
Quality products	Richer Sounds only sells top-brand electronics and can confidently offer customers free repair or replacements up to six years after purchase
Communication	Save My Exams aims to respond to all customer queries within 48 hours
Safety	Go Ape provides safety briefings for all visitors to its trampolining venues and its staff enforce strict rules of conduct
Convenience	Sainsburys offers a range of ways for customers to pay as well as online shopping with convenient collection through Argos outlets
Reliability	Amazon guarantees next day (in some cases, same day) delivery on many of its products if customers order before a certain time

The benefits of good customer service

Providing good customer service can be beneficial for a business for several reasons

A bakery storefront with pastries and bread, four people outside. Signs above read "Employee Morale," "Competitive Advantage," and "Ability to Compete." — **Good customer service leads to repeat sales, a good reputation, improved employee morale, competitive advantage and the ability to compete**

Repeat sales
- It persuades people to buy time and again and increase their average spend from a business with whom they have enjoyed a good experience, boosting revenue
Reputation
- It enhances a businesses reputation and increases the chance of word-of-mouth promotion
  - Customers tell others about how well a business has taken care of them, resulting in additional sales through free promotion
Ability to compete
- Small businesses that may be unable to compete with larger rivals on price may be able to maintain sales by offering good customer service
  - Customers are often willing to pay a premium price for good customer service, increasing profitability
Competitive advantage
- Providing excellent customer service can set a business apart from its rivals, creating a valuable competitive advantage that can help smaller businesses increase their market share
Employee morale is likely to be high in businesses with a good reputation for customer service, leading to greater efficiency and productivity
- Attitudes such as respect for others, kindness, and going the extra mile are aspects in which they can have pride

The dangers of poor customer service

Failing to provide good customer service can cause significant problems for a business, including:
- Unhappy customers are likely to take their business elsewhere, especially in competitive markets where there are many alternatives, reducing revenue
- They can easily share negative experiences online through reviews, social media, etc, tarnishing the business’s reputation
- Poor service erodes customer loyalty over time, making it more difficult to retain existing customers without expensive price promotions, increasing costs
- Customer complaints about poor service can overwhelm employees, affecting their motivation and productivity
- Providing replacements, dealing with customer returns and offering compensation also increase costs

Examiner Tips and Tricks

Remember, no business wants to provide poor customer service. Look for clues in the case study to understand why customer service may not be meeting customer expectations. Your recommendations need to refer specifically to these issues.

Business GCSE AQA