Factors that Could Lead to Improved Customer Service in Business Organization

By : Marhaini Binti Abd. Hamid 

Abstract

The purpose of the writing was to find out what are the factors that could lead to improved customer service in business organization. Factors affecting customer satisfaction is of worth importance in order to know the reasons or the factors which are responsible to create satisfaction among customers for a particular brand or services. A lot has been done to improve a stronger customer service through training programs which have been conduct to meet every customers need and ensure satisfaction. Research was done to establish whether human resource factors such as training, staff motivation and job satisfaction, goals in organization and also the technology aspect. The service and product range of the organization also will affect the quality of customer service. From this factors, strategies that exceed customer expectations should be put in place to delight the customers.

Keywords : customer service, customer satisfaction, quality service


Introduction
            Business organizations today as many are focusing on operating internationally or globally, they are challenged in several different ways which require them to be competent and be more aware and adapting to surroundings and changes. One of the most important elements for businesses to focus is their customer service. Business organizations must look deeper into the needs and wants of their customers as these organizations relying strongly their business on customers’ expenses therefore, satisfying these customers is a must. It is evident that customer satisfaction has positive effect on organization’s profitability. There was also a positive relationship between customer satisfaction, loyalty and retention thus, these factors are considered important for the success of an organization (Singh, 2006). Anddai-Minkah (2011) highlights that business organization like banking industry viewed service quality as a significant issue as they need to strive for improved service quality in order to distinguish themselves from the competition rising from undifferentiated products. There was also an established positive connection between high levels of service quality and improved financial performance. In addition, the quality of service depending on an expected service and perceived service. It is the customer expectations of a service and the perception of the quality of the service, and they tend to evaluate the services and compare those of their expectations and ones they received (Anddai-Minkah, 2011). The crucial mistake of many business organizations is they do not spend adequate time or money investing in customer service departments.
            Due to the an important role of customer service for the survival of business organization, this paper identifies the factors that can help to improve customer service in business organization. The factors discussed in this paper including human resource, the standards and goals of customer service, and technology. Employees especially the front-line service employees have a pivotal role to deliver good services to customers. In addition, standards and goals of customer service that are set in an organization are likely to help an organization in providing better customer services and lastly, technology plays a big role in contemporary businesses which can also help to enhance customer service.

Customer Service
            Customers are regarded as the lifeblood of business hence, the happier these customers are, the better it is for the organization. Customer service is defined as the ability of an organization to meet the desires and needs of its customers. It is crucial to provide excellent customer service as part of marketing. It is also considered as the ability of an organization in exceeding the expectations of its customers, consistently. Customer service often reflected in the presentation of an organization and its facilities in addition to employees’ factors such as knowledge, attitude and their behaviour (Customer Service, n.d.). Kimando and Njogu (2012) explains that customer involves task oriented activities besides proactive selling which involves interactions with customer in person. The function should be designed, performed and communicated by focusing on customer satisfaction and operational efficiency. Services on the other hand, are delivered face to face. Both interactions and behaviour of service provider reflect what happens within the firm.
Customer perception of service is much drawn from the personality and behaviour of an individual. Apart from that, quality customer service dependent on attitude, a way of thinking and philosophy of conducting business which stresses a strong commitment and a sincere dedication toward making customer satisfaction as the priority (Kimando & Njogu, 2012). Customer service is a vital part of business as it can provide satisfaction or dissatisfaction to customers. In addition, it also has been linked to customer satisfaction and is focused at retaining customer’s loyalty due to pressure of intense competition. Since there is a direct relationship between customer satisfaction and loyalty, it is thus important to understand people’s expectations and identify possible and appropriate strategies hence selecting the best ones to implement so that the firm can provide more satisfaction for customers (Alidadi & Nazari, 2013).
           
Factors that can Improve Customer Service
There are few factors which can lead to better or improved customer service. However, as said, the scope of this paper only focusing on factors of human resource, the standards and goals of customer service, and technology.

Human Resource
            Kimando and Njogu (2012) established that human resource is one of the factors that can affect the quality for customer service. Human resource of an organization is the employees that work for the firm. Kimando and Njogu found that employees’ motivation towards their job is crucial that can lead to high standards of self-esteem among them, besides, it also helps to promote corporate image as well as markets the products more aggressively. With motivated staffs around, it ensures the capability for providing customers personalized service and attention which can lead to customer satisfaction. In addition, training provided for these human resources is vital for them to perform their jobs well.
Therefore, it is important that an organization provide effective training for it staffs continuously. Such training programs or courses are aimed at facilitating an organization to achieve specified goals by adding value to its key resource which is employees. With good and effective trainings, the employees can develop a positive attitude work which can lead to better quality of customer service. Additionally, Kimando and Njogu also found evident in their study where job satisfaction also leads to a happy work life on a staff that reflected through the services to customers.
            In relation to the effect of staff training on customer service delivery, Muniu (2015) found that staff training to a great extent, staff training has affected customer service delivery in the population studied. The respondents on his study majorly agreed that customer care training has been helpful for them to adjust to the personality of the customers, an important element of banks performance, it helps the staff to deal with customers utilizing different ways and attitudes, it also helps to appreciate customers’ time and to tolerate with their behaviours, besides, it also enables staff to develop strategies in sustaining desirable relationships with customers. Overall this kind of training helps staffs to improve and be better at their job of handling and interacting with customers. Other than focusing on improving service delivery, training can also help to improve employees’ knowledge on possible problems with customers. This in turn can increase employee’s ability to provide customers with related and up-to-date information faster, and creating a pleasant customer experience. Other than training for human resource, Muniu also found that to a great extent, employee motivation has affected customer service delivery, in which motivated employees tend to deliver service better. The sources of motivation come from bonuses, staff recognition and growth opportunities provided by an organization to its employees (Muniu, 2015).
            As mentioned earlier, customer satisfaction is crucial which is closely linked to the delivery of service to customer. Employees as the deliverer of the service play a big role in ensuring effective and satisfying services to customers. Customer satisfaction can be influenced by factors such as friendly employees, courteous employees, helpful employees, knowledgeable employees and quick service (Singh, 2006). This further clarifies that employees or human resource play a key role in achieving improved customer service.

Customer Service Standards and Goals
            Setting the standards and goals for customer service is important as it provides guidance and guidelines for staffs in delivering customer service. The set goals have great impacts on performance as they direct an individual’s thought and actions, they also regulate energy expenditure and acceptable hard goals increase individual’s persistent to achieve the goal. When the goals are focus on customer, employees thoughts and actions are in turn centered on customer satisfaction. Many benefits can be obtained from setting goals for examples, it helps to clarify employee expectations about desired performance, it can relieve boredom in monotonous jobs, as well as it helps to indicate goals reaching for employees for example when the employees attain customer service goals and receiving feedback from satisfied customer.
Overall, it helps to achieve better performance. In ensuring effective standards and goals for customer service, an organization should know who its’ customers are so that appropriate strategies can be set for a variety of customer. Internal customers should also be considered as high-quality internal customer service is able to improve the ability of the firm to satisfy external customers. For example, internal customers can be serviced by administrative support staffs too. The setting of goals and defining of standards for customer service should be done based on customer research data and not set arbitrarily, or in other words, by management intuition. This is applied on both organizational level and individual level. Empirical data should be gathered from customers themselves in order to ensure effective determination of goals for the organization, its individuals and its teams.
The goals must also be measurable and verifiable because it is important to measure and verify performance in reaching the goal so that the organization is able to assess levels of performance or specify needed improvement. Customer research should be done through various of ways which studies the customers themselves. One example for this customer research is Florida Power and Light (FPL) which is conducted on customer satisfaction and phone queues for customer service. Based on the study, the company found that the lower longer the wait on phone for customer representative, the lower the customers rated the performance of the company representative.
The study also helped the company to determine that the customers expected to wait on average 94 second for the representative. From the findings, the company was able to establish a phone queue device known as “Smartqueue” which periodically informed customers how much longer they should wait before a company representative can answer the phone. Because the customers knew the length of wait, they were willing to wait longer. This study provide example of a company translates customer requirements into target service levels or as we called it ‘standards and goals’ (Improving customer service through effective performance management, 1997).
Therefore, customer service standards and goals can also be one pushing factor towards excellent customer service. Good and effective standards and goals can potentially help the company to deliver better service to customer and at the same time ensuring customer satisfaction.

Technology
            In modern day, technology plays an important role in an organization and also can add to competitive advantage for an organization to compete in international level. Technologies innovations have revolutionized many industries and some companies may find dead end to their businesses if they failed to move with the technological advancement. Technology in this context, involves all software and hardware required by an organization to achieve its goals. Information technology which is the use of electronic ways in handling information, is very widely used today. The information is stored, accessed, transferred and delivered in electronic ways. Information systems in modern organizations cannot be ignored as thy play a critical role in the success of contemporary firms.
The adoption of technology allows a company to compete at par with other competitors. In banking industry for example, technology helps to provide multiple banking services that led to faster services (Muniu, 2005). These services include request of credit advances by customers, ordering checks, paying bills, fund transfer, and account balances view (Chou & Chou, 2000). Due to this electronic services, they reduce transaction processing cost which enables the banks to make more profits as they able to create new products and services and able to grow customer base (Mishkin & Eakins, 2009). Besides, technology also led to real time information exchange as well as to improved banks performance (Ukai, 2003).
            Security and privacy are regarded as the main source of dissatisfaction toward technological banking among banking customers which influence their satisfaction. However, apart from that, many other benefits or advantages can be drawn from technological banking that leads to customer satisfaction including easier accessibility, convenience and design as well as increasing service speed and reducing several costs at different levels (Muniu, 2005). Muniu has found that to a great extent, technology has affected customer delivery in the population studied. Additionally, the studied population also strongly agreed that electronic banking has made great impact on the quality of customer service delivery. Muniu’s finding also confirmed that technology services help banks to strengthen their competitive side.
In addition, technology also help to enhance privacy and security which leads to customers’ satisfaction. Muniu (2005) concludes that technology has been significantly influence customer service delivery in Standard Chartered Bank of Kenya. Moreover, Otiso, Chelangat and Bonuke (2012) found that information and communication technology (ICT) service delivery is positively related to customer satisfaction. They went on suggesting on increasing ICT service delivery or improve services by the use of an appropriate ICT.
            Alton (2015) highlighted the big mistake of companies always do which is lack investment on their customer service departments and that most customers bail on a transaction if they experience a poor customer service. Therefore he agreed that businesses should stay up to date and continually offer convenient services for their customers which can be done through implementing new technology to improve customer service as a whole. One of the ways to establish communication with customers. Firstly, establishing appropriate communication through the use of communication technology that is preferred by the customers. There are several methods for communicating such as phone calls, emails, SMS messaging and apps, as well as live chat. These technology also ensures the capability of businesses to be available anytime and anywhere utilizing all forms of communication. This gives a so called freedom to customers as they have the option to contact a firm whenever and however they want.
In addition, self-reliant customers can highly benefit from the use of technology and more customers are now able to answers their questions themselves because of information sources made available on blog posts, podcasts, webinars, videos and other sources of posted media. Lastly, technology invention of social media has also enhance business-customer relations. More companies are now able to connect with customers through sharing of blog posts, infographics, webinars, how-to videos and so on. This allows customers to come to the businesses and is a great way for businesses to acquire and retain customer base (Alton, 2015).
           

Conclusion
            In conclusion, customer service is a paramount important aspect of business as it can help to acquire and retain customers, ensures customer satisfaction and loyalty. In this paper, three factors that can lead to improved customer service are discussed including human resource, standards and goals of customer service and technology. Human resource or employees especially the front-line service providers are regarded as important individuals in delivering excellent service to customers. They must be competitive, capable of providing personalized service to customers, knowledgeable, and in general, provides a high level of satisfaction to customers. However, setting good and effective standards and goals of customer services is similarly important as the employees will base on these standards and goals for their thought and actions.
The goals and standards also provide guidance for not only individuals, but also teams and organizations as a whole, in achieving desired and improved customer service. Lastly, contemporary businesses should never neglect technology innovation today as doing so, they may be left behind. Technology is a great tool to improve customer service as it provides alternative ways for businesses to engage and communicate with customers. It is therefore important for any business to address these three factors and make adjustments where necessary.

References

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