Difference Between Customer Care And Customer Service Management

Essay
ukessays.com /essays/management/difference-between-customer-care-and-customer-service-management-essay.php

CUSTOMER CARE
Customer care is going the extra mile for the customers to exceed their expectations and wants. It is a little extra effort made by service
provider while delivering service to customer.
Customer care demonstrates leaving customer with a lifetime memory or experience. It helps in exceeding customers expectations
resulting in repeat business. Customer Care is a trait which creates a difference in service and represents the uniqueness of an
organisation. It also acts as a word of mouth; marketing tool for company hence works towards getting more business, harnessing the brand
image and promoting goodwill amongst the masses.

CUSTOMER SERVICE
Customer service is addressing and satisfying customers basic needs and expectations. It is offering customer a consistent service.
While delivering service to a customer it is duty of a service provider to provide all tangible services expected by customer. Customers
always expect a service which is value for their money.
Reference: http://sbinfocanada.about.com/od/customerservice/a/custservrules.htm

DIFFERENCE BETWEEN CUSTOMER CARE AND CUSTOMER SERVICE

CUSTOMER CARE
CUSTOMER SERVICE
It is exceeding customer expectations.
It is creating a sense of belonging with customer which leads to repeat business and loyal customers
It is a little extra effort made by service provider to make its customer happy.
It is going an extra mile to meet customers expectations
For Example: Wishing a guest on his anniversary or Birthday with the help of guest history profile.
It is fulfilling the customers basic needs and wants
It is offering consistent levels of service to customer.
It is value for their money.
It is meeting customers requirements
For Example: Escorting guest to their rooms.

NEED FOR CUSTOMER CARE POLICES AND PLANS

PLANS: - It is formal set of actions to achieve specified goals or objectives of the organisation.
POLICES: - The conversion of set of actions or plan into set of rules and regulations to ensure the consistent development of the
organisation.
Plans are essential for continuous development of an organisation. Plans are necessary for future forecasting of set of decision about how to
do something in future. Plans are made for achieving objectives or future goals of organisation. For an example: Mc Donalds have
planned to launch a training programmes consists of two phases, hospitality plus workshops and customer care programme for its current
employees and new recruits in order to achieve higher standards of customer service and care.
Policies are required to put all planes together in official and formal form for their implementation throughout the organisational hierarchy.
For examples: knowledge of menu ingredients, observation of cleanliness standards etc.

CUSTOMER PATTERNS
Customer patterns help in estimating the characteristics of targeted population in order to finalise style, scope and diversity of the

organisation.
This in turn helps in making future plans and policies of the organisation.
Customer patterns are classified on following bases: Length of stay
Identification of customers
Financial capability of targeted customers

Customer patterns are classified in two categories

Geographic
Socio Economic

Geographic
Area of customer density
Rural area/cities/metropolitan city

Socio Economic
Lifestyle
Economic capability
Professional Status
Market trends
Reference: http://reader.eblib.com

RANGE OF CUSTOMER PATTERNS AFFECTING THE HOSPITALITY INDUSTRY

Geographical factor:
This illustrates the importance of the area of customers chosen by the organisation. These areas can be classified as rural area, cities and
metropolitan cities. Out of these three, metropolitan cities are the most significant and challenging as it consists of varied age groups and
economic backgrounds that prefer diversified services.

Socio economic:
Lifestyles
Lifestyle represents the classification of the customers according to their choice, taste and values.

Economic capability
Economic capability is the spending power of the targeted customer market.

Professional status
Professional status reflects the type or standard of service expected by the targeted professional customers. For an example, Business
customers always prefer fast and professional service while leisure customers prefer causal form of service.

Market Trends
A Market trend signifies the changing likes and dislikes of customers.

IMPORTANCE OF CUSTOMER PATTERNS IN HOSPITALITY INDUSTRY

Customer patterns are essential in hospitality industry in order to meet the expectations & needs of targeted customer market. As demands
of a customer varies with their requirements. Customer pattern helps in identifying needs of all the customers comes in hence helps
organisation in achieving customers satisfaction.

IMPORTANCE OF CUSTOMER PATTERNS IN THE CASE STUDY

In the case study of McDonalds the customer targeted market is predominantly children & teenagers. Thus keeping its customer pattern in
mind McDonalds initiated giving free toys and gifts with their happy meals to attract its young customers. It also highlights the importance of
imparting training throughout its staff hierarchy about gauging customer target market.

Reference: http://www.hud.ac.uk/uni/customer/

IMPORTANCE OF CUSTOMER CARE CULTURE

Customer care culture is created by the person working in the organisation or employed by the organisation. Customer care culture sets a
benchmark and imparts its tradition of customer care to all current as well as new recruits of the organisation. This helps in making loyal
customers and repeat business resulting in organisation profit. Customer care culture enlightens the brand image and develops the brand
loyalty of the organisation in the industry. McDonalds has stated its two phased training programme which focuses on customer care culture
and services. This training programme has successfully developed customer care culture by providing friendly services to its customers who
are predominantly children & teenagers.

IMPORTANCE OF CUSTOMER CARE CULTURE TO McDonalds

Importance of customer care culture in MacDonald being the largest brand in fast food industry they serve more than 50 million customers a
regular basis through its 390000 number of employees. Thus this being a Herculean task they maintain their brand image in the market
through continuous improvement in their brand image in the market through continuous improvement in their products, services & work
culture.

CARE CULTURE FOR EMPLOYEES

McDonalds tries to provide better work environment to its employees, thus to make it best place to work in, it always keep on discovering
new ways to work. McDonald introduced a two phased training programme to enhance the customer care culture, which was also fun &
learning for its employees.
The main criterion of customer care programme was to give better understanding of customer care culture to its staff hierarchy. This
programme benefits its staff, on completion of the programme, staff was able to attract, help, appreciate and retain more customers.

CUSTOMER CARE CULTURE FOR EXTERNAL CUSTOMERS

For McDonalds, customer satisfaction comes first in priority list. The Organisation knows it very well that customer satisfaction can curve a
niche for them in this competitive fast food market. Thus to accomplish this very purpose McDonalds have upgraded its outlets to provide
fast yet more efficient and friendly services to its clientele who are mainly teen agers and children. McDonalds now primarily focuses on their
likes and dislikes, and also take into consideration their menu choice as well as pocket money.
Reference: http://ivythesis.typepad.com/term_paper_topics/2008/02/mcdonalds-corpo.html

EVALUATION OF McDonalds CUSTOMER CARE PROGRAMME

The main aim of customer care programme was to deliver superior service to customers and to have high level of consistency. Thus to
increase productivity McDonald introduced new policies to its staff, which are as follow:
Policy of continuous improvement
Giving customer prime preference
Training & development programmes
Brand Promotion
Performance appraisals
Effective & efficient services to customers
Making McDonald outlets unique
Treat kids as stars so that mothers appreciate the interaction
The importance of body language and listening skills in creating a welcoming environment
Hospitality Plus Workshop & Customer Care Programme

KEY PERFORMANCE INDICATORS

Key performance indicator is used for quantitative measurement that is essential to run an organisation successfully and helpful in achieving
the goals and objectives of the organisation.
Key performance indicator is critical for the growth of the organisation. Key performance indicator may differ depending on the organisation,
For example, profit can be a key performance indicator used by an organisation to measure its profitability, a restaurant can use the number
of table covers as a key performance indicator to measure the density of customers and the profitability of the restaurant and a collage can
judge their key performance indicator by the percentage of graduate students passed out from the college. Key performance indicators are
the key to the success of the organisation and they are measurable. This key performance indicator reflects the organisational goals,
objectives, policies and strategies. Predominately key performance indicator is the part of long term plans of the organisation which leads to
the consistency in their performance.

KEY PERFORMANCE INDICATOR FACTORS IN McDonalds

McDonalds Key performance indicators

For Years 2004, 2005, 2006, 2007
sustainable supply chain:
Supplier Social Accountability (worldwide)
(Percent of food, packaging and tier-1 equipment suppliers that have affirmed our
Code of Conduct2)
2004
2005
2006
2007
57
89
93.5
92
Animal welfare (worldwide)
Number of supplier meat processing plants audited (including beef, pork
And poultry)
2004
2005
2006
2007
534
521
562
513

nutrition & well-being

Offering Menu Choice
(Average number of items, per market menu, that contains at least 1 serving of fruit Or vegetables)
2004
2005
2006
2007
NA
NA
6.1
6.1
Average number of items, per market menu, that contains at least 1/2 a serving of fruit or vegetables.
2004
2005
2006

2007
NA
NA
9.9
10.9
Providing Nutrition Information
(Percent of nine largest markets that provide nutrition information in-restaurant
(I.e. tray liners, nutrition brochures)
2004
2005
2006
2007
100
100
100
100
Percent of nine largest markets that provide nutrition information out-of restaurant
(I.e. websites)
2004
2005
2006
2007
100
100
100
100

Environmental responsibility
Restaurant-Level Electrical Energy Use
(Kilowatt hours used per transaction count (kWh/TC), resulting from electrical
Energy use in the restaurant)
2004
2005
2006
2007
NA4
NA4
1.15
1.15
Greenhouse Gas Emissions3
(C02 emissions (in tons) resulting from electrical energy use in the restaurant)
2004

2005
2006
2007
NA4
NA4 1
1,707,921
1,882,961
Environmental Impacts of Consumer Packaging
Amount of packaging used, by weight in lbs., per transaction count
2004
2005
2006
2007
NA
0.1396
0.1387
0.1357
Percent of packaging material that is made from recycled paper
2004
2005
2006
2007
NA
31.56
33.17
29.87

employment experience
Training, development & opportunity
(Percent of crew members satisfied that they receive the training needed to do a good job)
2004
2005
2006
2007
79.49
80.69
82
84
Percent of managers who feel the person they report to supports their
professional development.
2004
2005

2006
2007
80.310
81.610
8211
8311
Percent of company-operated restaurant managers who started as crew members
2004
2005
2006
2007
NA
63.6
64.9
53
Percent of worldwide top management team who started in the restaurant
2004
2005
2006
2007
NA
42
42
42
Management Opportunities for Women
(Percent of company-operated restaurant managers who are women)
2004
2005
2006
2007
NA
44
46.2
49
Percent of worldwide leadership (VP and above) team who are women
2004
2005
2006
2007
NA
NA

26.4
26.7
community
Philanthropic Activities (Worldwide)
(Total money raised by the McDonalds system, including employees,
owner/operators, and suppliers, and with the help of customers, for RMHC and other charities in millions)
2004
2005
2006
2007
NA
$60.9
40.5
NA
Total corporate cash & in-kind contributions in millions
2004
2005
2006
2007
$9.2
$13.3
$13.6
$10.6
Local Economic Impacts
(Total capital expenditures worldwide (investments in new and existing restaurant in billions)
2004
2005
2006
2007
$1.4
$1.6
$1.7
$1.9
Social Taxes: Total social taxes paid by McDonalds in millions
2004
2005
2006
2007
$345.3
$382.3
$4936

$6216
Reference:
http://www.crmcdonalds.com/publish/etc/medialib/mcdonalds_media_library/report/downloads/McD_KPIs.Par.0001.File.tmp/McD_KPIs_11.08.pdf

KEY PERFORMANCE INDICATORS FOR McDonalds

Number of table covers It estimates the speed of the customer service provided by the staff to the customer.
Number of footballs it counts the customer density at a regular time interval.
Employee turnover it signifies the employee satisfaction within the organisation.
Average number of bill size it indicates the number of bills generated by the organisation in a particular day thus helping in counting the
profit on that particular day.
Swinging of profit it states the economic stability of the organisation amongst its chosen target market thus reflects the popularity of the
organisation among the masses.

BENCHMARKING
Benchmarking is the standard set by the organisation as a role model or example for achievement of its desired target and objective, also
stated as Best Practice.
Benchmarking is understanding thoroughly or in depth existing detail process.
Analysing the business process of the competitors in the market.
Comparing own business process with the others analysed.
Implication of the necessary action plans to fill the performance gap

BENCHMARKING SUGGESTIONS FOR McDonalds

By looking at the existing competition in the fast food market, following are the few suggestions, which can act as benchmark for McDonalds
Food quality - food quality catered to customer must be of high quality in terms of nutritional values and presentation of food. This leads to
the value for their money.
Speed of Service McDonalds is known for their quick and automated service.
Customer Feedbacks customer feedbacks always acts as vital tool to analyse quality of service and helps to iron out faults in the service.
Reference: http://tutor2u.net/business/strategy/benchmarking.htm

COMMUNICATION MATHODS
Communication is a very important assessment tool between the employees as well as with customers. Communication can be classified in
two different types
Formal communication
Informal communication
Formal communication formal communication means the legal form of any communication such as legal agreements or orders from the
authority that is from the conveyor to receiver who has to follow that formal orders. For example, memo, court orders etc.
Informal communication Informal communication is a more causal form of communication. It is the verbal form of any communication
between two parties where no written agreements are made. For example, Word of mouth, causal addressing etc.

DIFFERENT WAYS OF CONVEYING FEEDBACKS

Customer feedback methods would be: Feedback forms
Through E mail
Through websites
Suggestion/Comment drop Boxes
Phone survey for customer feedbacks
Contact number details
Maintain proper records and analysing complaints

Contact officers

ADVENTAGES AND DISADVANTAGES OF CUSTOMER FEEDBACKS METHODS

FEEDBACK METHODS
ADVANTAGES
DISADVANTAGES
EFFECTIVENESS
Feedback forms
It helps to keep the record of customer suggestion and complaints
Sometimes it can just be a mere piece of paper, If it is not conveyed or handled properly
It is a very effective way of contact between the top management and customer

E mail
Fast and latest form of communication
May result in record lost
It is very popular among masses

Contact details of the customer

Efficient and fast
Costly mean of feedback
Partly effective

Contact officers
Conveys better customer service through personal service
Time consuming
Partly effective

Comment/Suggestion drop boxes

Customer friendly way of communication
Sometimes can be ignored by customer, may not reach to the concerned person
Less effective

Maintain records of customer

Helpful in formulating future plans and strategies
Sometimes difficult to handle and can be lost
Less effective

Phone survey for the customer feedbacks

Innovative
May be disturbing to customer
Stiil in experimenting stage
Reference: http://www.elook.org/dictionary/feedback.html

STAFF EMPOWERMENT
Staff empowerment is giving authorities or responsibilities to the employees, which encourage them to take initiative to act upon their
knowledge and expertise. It creates better environment for the employee to work in.

AREAS OF IMPLIMATION OF STAFF EMPOWERMENT

Reception/front desk
Sales counter
Marketing department
Food & beverages service personnel

ADVENTAGES OF SERVICE EMPOWERMENT

It increase customer satisfaction
Result in less staff turnover rate
Gives more responsible feel to employees
Better co-operation between the hierarchy
Improve standards of customer service of the organisation
Helps in time management for managers, thus save valuable time of the organisation
Gives satisfaction to employees and more confidence in workforce thus result in better customer service

DISADVENTAGES OF SERVICE EMPOWERMENT

May cause confusion & misunderstanding between the staff due to lack of decision making ability
Misuse of authorities given to the employees, which may affect productivity of the organisation
It may affect the team spirit or unity of the employees of the organisation
Staff may not be capable enough to handle some tricky situations because of lack of experience