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Essay on Customer Service: Case Study of Amazon and Tesco
Introduction
In this report, I will be writing a report based on two different large businesses, Amazon, and Tesco. The purpose of this report is to examine the customer service approaches and processes in Amazon and Tesco, who are two contrasting businesses, and show how both of these businesses meet their customer expectation levels. I will also be examining the ways that customer service in both businesses can meet the and satisfaction of customers and adhere to relevant current legislation and regulations.
The report will also contain an analysis of the impact of these laws and regulations on customer service, with examples. Also providing research and analysis of methods that a particular company can use to improve customer service. The report will also contain an assessment of the importance of providing excellent customer service and adhering to relevant current legislation and regulations for both selected businesses. Finally, the report will finish off with a discussion of the advantages of better customer service from the standpoints of the company, the customer, and the employee.
P1: Describe the different approaches to customer service delivery in contrasting businesses. What Is Customer Service?
According to Investopedia.com, the direct one-on-one interaction between a customer making a purchase and a representative of the company selling it is known as customer service. Most retailers consider direct interaction with customers to be an important part of ensuring customer satisfaction and encouraging repeat purchases. Including today, when most customer service is handled by automated self-service systems, most businesses consider having the option to speak with a human being to be essential.
The majority of businesses have people who never meet or greet the customers who buy their products working behind the scenes. Customer service representatives are the ones who interact with customers directly. Buyers’ perceptions of the company and the product are influenced in part by their interactions with that individual. (Grant, 2020)
Internal and External Customers within Amazon and TescoAn internal customer can be anybody who works within a business organisation. An internal customer could be a work colleague, a department, or a distributor who relies on us to provide products or services that are then used to create a deliverable for an external customer. Internal customers, on the whole, do not have a choice. For instance, if the sales department does not like accounting’s credit policies, they cannot fire it and hire someone else.
External customers are those who pay for and use the goods and services that a business provides. These customers are who the business is designing for when brainstorming problems and solutions for their business. An external customer is someone who is not affiliated with a company other than through the purchase of your product or service This customer could be a one-time buyer or someone with whom a business has previously done business with for a long time.
As both businesses are completely different, it also means that both businesses have different types of customers. For Amazon, they use external customers within the business. The reason why they have external customers majority of people who visit the Amazon website are most likely buyers and are looking for something to buy. As mentioned, these customers are who the business is designing for when brainstorming problems and solutions for their business. This ensures that Amazon is doing everything that it can do make sure that their existing customers and potential new customers to stick with its business when they introduce new products. Because of the type of business Amazon is, their customers are people who are not affiliated with a company other than through the purchase of your product or service unless they are paying for a subscription service. However, Amazon’s customers could be a one-time buyer or someone with whom a business has previously done business with for a long time.
Tesco uses both internal and external customers within their business. They use external customers by employing people to work for their business tackling day-to-day tasks and also employed to take care and help external customers with products and services who are shopping with Tesco. As well as employees, Tesco also uses suppliers as external customers. ‘A supplier is a company that provides goods or services to another company. This organization is a part of a company’s supply chain, and it may provide the majority of the value contained in its products. Some suppliers also might engage in free shipping, which involves sending products directly to the buyer’s customers.’ (Bragg, 2018) Tesco suppliers supply them all of their products which then later sold at a different price, usually higher price, to their customers.
Types of Customer Service
TelephoneOne of the most basic and widely used types of customer service provided by businesses today is telephone customer service. The reason for this is that both a customer service representative and a customer can use it because it is simple, efficient, and accessible. Using the phone provides a more personalized experience for both parties and takes less time than typing an email and waiting for a response. Telephone customer service is also more user-friendly for people of different generations and allows for more natural human-to-human interaction.
Face to Face
Face-to-face customer service essentially provides more personalized assistance to customers. Face-to-face customer service, rather than relying on email, the phone, or the internet, necessitates the customer and a trained representative of the company being physically present in the same location. While technology allows for a variety of ways to interact with customers, a face-to-face approach requires a customer visiting a store’s location. It usually allows a business’ representative to make a more personal impression on the customer who is seeking assistance. When it comes to face-to-face customer service, a few key characteristics are required to ensure that customers have a positive experience.
An email response to a customer’s question, feedback, or complaint is known as a customer service email. Customers can reach out to a business via a website contact form, an email address that is listed on a company’s website or social media accounts, or by calling customer service. A company could send out automated customer service emails or write personalized emails to customers. Customer service emails usually address a customer’s problem with a product or service.
Social Media
The act of providing customer service through social media channels is known as social customer service. Many businesses are now using social media as a substitute to their call-based customer service efforts. Addressing complaints, answering questions, providing guidance, and even issuing refunds via social media are all examples of these services.
Because of the nature of social media, social media customer service may be considered as marketing. Alternatively, the function may increasingly become a part of a call center team’s responsibilities. Social customer service is a cost-effective alternative to other forms of customer service for businesses with a large online customer base. The call center staff can easily be trained to assist customers through social media. They have access to specialized workflows, training, and software to quickly resolve customer issues.
Live Chat Support
Live chat software is an online communication tool that allows a company and its website visitors to communicate in real time. Chatting online is a great alternative to calling or sending emails. All that is required of businesses or their visitors is to type their message into the chat box and send it. Live chats can assist multiple customers at once and provide automated responses to the same question being asked by customers. It also has the ability to save web chat conversations for later use by the customer, is customer-friendly, and provides comprehensive customer service.
Benefits and Drawbacks of Customer Service
Benefits
Increased Profits Revenue
Customer service that is of high-quality leads to increased revenue, which leads to more customer sales for both Amazon and Tesco. When customer service meets or exceeds customer expectations, the customer gains confidence in both companies’ abilities and is more willing to spend more money on its products and services. This can have a direct impact on the companies ‘bottom line.’
Increased Customer Satisfaction
Customers are satisfied when their needs are met by a business. Customer service that is of high-quality means that the company is meeting and exceeding the expectations of its customers. Customer satisfaction surveys are one of the most effective ways to learn what customers think about a company. The surveys should include questions about the customer’s most recent interaction with both of the companies, both company’s product and service quality, and what the customer dislikes about both companies. Customers should also be asked what they like about both company’s competitors in the surveys.
Increased Customer Loyalty
Customer loyalty is directly proportional to the quality of service provided. Customers will be hesitant to use the services of a competitor if the organization truly meets and exceeds their expectations. Competitors of Amazon and Tesco frequently enter the market and offer lower-cost services. By providing and maintaining good customer service, the industry leader can avoid a price increase.Customers stay loyal to a company when they have faith in its customer service.
Involved Employees
Employees of Amazon and Tesco who provide excellent customer service spend time sharpening their skills to benefit the company. Rather than repeatedly encountering the same problem, employees not only satisfy the customer but also take steps to prevent the problem from recurring. The employee makes a positive impression on the customer, has a direct impact on the company’s operations, and feels fulfilled. For the customer, the company, and the employer, it is a win-win-win situation.
Drawbacks
Poor customer service can have a negative impact on a business in a variety of ways, not just on current and future sales. This is especially important for people that rely on customer loyalty and positive word-of-mouth marketing to succeed. In relation to the threat of current customers due to poor service, chronically poor service can have a negative impact on the business’s ability to attract new customers.
Loss of Current, Potential and Future Customers
According to LinkedIn.com, even the most forgiving of customers can be lost due to poor customer service. Consumers typically do business with a company because it is convenient, because it is a habit, or because they are looking for a specific product or service that is difficult to find elsewhere. Even the most steadfast customers can be turned off by poor service.
Poor customer service has the potential to cost a company money before they buy anything. When new customers walk into a store and are ignored, talked down to, or subjected to long lines and inexperienced employees, they may reach for the door before even reaching for their wallets Anything that makes doing business with them difficult or unpleasant should be a red flag, indicating that their service levels need to be improved.
Customers who receive poor service often tell their friends and family members about it in order to warn them away from the company. Your company will lose potential customers as a result of this. Before they even walk through your door, people will have formed a negative opinion of your company.
Loss of Profits and Employees
Poor customer service usually means fewer customers, which means lower sales and profits for a company. This can start a vicious cycle in which a company tries to save money on staffing or customer service training, which leads to even lower service levels. When a company cannot keep up with the financial demands of running a business, it faces rising operating debt and, eventually, failure.
Even low-performing employees dislike being yelled at or scorned by angry customers, which can lead to high employee turnover. Constantly advertising for new employees, then screening and training them, is costly and time-consuming. Customers may begin to wonder why their company is unable to retain employees and may begin to question their management practices.
Benefits of Effective TeamworkHaving effective teamwork in a workplace has always been helpful asset for successful businesses. Nowadays, many businesses out there are undergoing a lot of pressure being a part of an economy. This means that it is now important than ever for business’ employees to be working together and effectively between all different functions of the business. At a time when talent retention faces a highly competitive global job market, effective teamwork is also critical for employee engagement and wellbeing.
In terms of benefits of effective teamwork, there are many different types of benefits that come with effective teamwork. A benefit of effective teamwork is that it encourages learning and creativity in a workplace When people work together as a team, creativity flourishes. Working together to brainstorm ideas prevents the stale viewpoints that often result from working alone. More effective selling solutions are created by combining the unique perspectives of each team member. What people have learned from other people’s experiences is completely different from what their co-workers have learned as result, teamwork maximizes shared knowledge in the workplace and assists people in learning new skills that they can use throughout their career. Collaborating on a project fosters a desire to learn that is often lacking in solitary work. Employees are enthralled by the prospect of sharing their discoveries with the rest of their team, which fosters both individual and team knowledge.
Another benefit of effective teamwork is that it helps build trust between employees and the workplace. Relying on others encourages trust, and teamwork promotes strong bonds between co-workers. An effective team enjoys working together and has a strong bond, despite occasional disagreements. When people put their trust in a co-worker, they are laying the groundwork for a long-term relationship that can withstand minor setbacks. Trusting their teammates also creates a sense of safety, which allows for the rise of new of new ideas. It encourages employees to open up and support one another. When working in a group, open communication is essential for producing
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