D2: REPORT TO ASSESS THE POSITIVE AND NEGATIVE IMPACTS OF CUSTOMER SERVICE AND SALES TECHNIQUES
1.0 TERMS OF REFERENCE:
I have been asked to produce a report to assess the positive and negative impacts of the customer service and sales techniques of my selected organisation. The organisation I will be looking at is Clarks.
In order to obtain the relevant information, I followed the following procedures: 2.1 I will be using my previous assignment P3 role play which was based on the organisation Dixons, and M3 report which was based on Clarks.
2.2 In order to obtain all the information I will also be using the BTEC National Business Book 2 as well as the internet. This will help me to evaluate the distribution process and conduct this report.
3.1 In any organisation customer service is essential, as it covers all the activities that affect the customer’s experience of dealing with an organisation which is Clarks. This covers the impressions created by the staff, appearance and the training of staff members as well as including how well customer’s needs and preferences were satisfied. By offering a high level of good customer service will not only add value to the products it will enable them to raise the prices while ensuring customer’s loyalty. By giving good customer service it will have positive effects on a business, not just in terms of keeping customers from jumping to rivals as Clarks can create an emotional barrier to prevent customers switching to a competitor. More over another benefit is brand loyalty by giving a customer good service it tends to bring repeat custom, as customers feel positive about the experience they have had with the organisation so they are more likely to come back and make future purchases. Hanging on to existing customers is crucial for Clarks as trying to attract customers from rivals tends to be costly as promotion offers and advertising may be needed. Another benefit of customer service is word of mouth promotion, by giving good customer service can generate free promotion as happy and satisfied customers will tell friends and family, this is one of the most effective promotional tool available to a business this is because customers are more likely to believe there friends and family than the business itself. The last benefit I will be discussing is increased efficiency, as good customer service is including better advice to customers, firms are less likely to sell inappropriate products or services that fail to meet the customers’ needs. This will therefore lead to a reduced amount of customer service back up, such as customer complaint and returns.
3.2 Although customer service has many positive impacts, it can also have negative impacts the main problem for retailers such as Clarks is the need of consistency in delivering the service levels demanded by customers. Some of the factors which prevent the consistency levels are as followed; staff members sometimes lack the commitment and motivation to deliver high customer service standards, this is a negative impact on the business as customers will not want to come back if the staff members d not perform. If staff members are not motivated, this will lead to them not putting in the effort to try and make the organisation successful. Clarks have bonuses for staff members this therefore keeps them motivated and want to work hard, so that they can get a good bonus at the end of the month. Another disadvantage is high staff turnover adversely affects standards, with staff constantly learning the job as well as moves to reduce staff costs will affect the training and development of staff. This is a disadvantage as staff must be trained well in order to give the best customer service possible, Clarks ensure all the staff members are trained in all sectors of shoes, shoe care products as well as handbags.
3.3 Customer relationship management refers to how an organisation builds long-standing...
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