SatE: CUSTOMER SERVICE AND CUSTOMER LOYALTY (part 2)

Taking care of detail (cont.)

Sir Stuart Rose is another example of an entrepreneur that has identified the importance of catering to the detail of customers’ requirements. He has managed to pick M&S up form problems in the market and used customer service to satisfy customers. He has identified that customers don’t like to shop in:

·         untidy environments,

·         thin or narrow alleys

·         dark lighting

·         woman don’t like bending over to collect shopping

·         long queues

So he made sure that M&S improvised and implemented these new customer service counter techniques. The shop brand also diversified into the food industry with simply foods this was because Stuart rose identified that customer like healthy food products. In this market Stuart Rose has paid a lot attention to detail to provide detailed information to customers. All the foods products for example hare label correctly and detailed to provide the right information for the customer to make the right decision on their purchases.

 By providing detail to the service that the customer gets is a very good way of satisfying a customer.

Enabling customers to build associations with a brand

It is imperative for a good entrepreneur to help customers understand the brand and there for get more involved with the brand. The more familiar a customer can be with a brand the higher the chances that the customer would repeat business at the same shop. Entrepreneur should train their staff to attend to customers in a way they would be distinct to the customers. The customers should be able to feel a difference when they are patronising a firm, this would help create a competitive advantage. This competitive advantage should reflect on the customers association with the firm. An entrepreneur can help its customer become more associated with the firms brand by:

·         conducting out reaches

·         exhibitions

·         rally’s

·         and other below the line promotions

The PR (public relations department) should make an effort to create a strategic advantage to help customer be more informed and better associated with brand. Then entrepreneur should always take responsibility for its firm and so it is up to the entrepreneur to ensure that the PR function is efficient and is promoting a strategic advantage

Strategic advantage

For a business to achieve a strategic advantage over its competitors it has to establish a difference that can be preserved, the customer service of a business is highly important since it demonstrates the businesses value for its customers and also generates value for the actual transaction. If the customers have had their expectations exceeded by the level of customer service they would tend to utilise the business more often and might recommend the company to other potential customers. If the business has a good internal structure and clear communication paths the firm could use its internal resources and capabilities to strategically establish an industry key success factor. The customer service department should be able to master the interactions between customer and staff to ensure that the right service is being given. Since it is very difficult for a business to predict the situation a customer may face the staff should be fully trained and equipped to manage any arising situation. The staff should aim to wow a customer to encourage a life time loyalty from the customer. Once the company has established this expertise, the method of customer service cannot be imitated by other companies since it is impossible.

A good example where a firm focuses its energies on associating its brand with its customers would be Microsoft and Apple:

Microsoft is always trying hard to get customers familiar with their new software either through promotions that are both above the line or below the line. 

Microsoft like many other firms in many industries has opened up websites to advocate to their promotions and advertisements, to the customers. These websites have been created so well and have innovated to an extent that they even have various facilities on them that are compliments to the firms. Some firms have eCommerce  and some have facilities that allow for the customers to test the product or gain information amount the product before they use it.

Apple

Another example where apple has done this would be using the iStore and iTunes apple has created its own e-market place where you can only utilise the market place if you down load their free software to play the music. 

Also on entering Apple stores you get the opportunity to associate yourself with their products before you get to use them the whole store has many of its popular products ready for trials.

Apple and Microsoft are both competitors in an oligopolistic market feed their customers facts about their products to help the customers make well informed decision. These firms have also made their brand identifiable by creating a very unique and copy righted brand logo for example.

Apple logo