INFOLINK COLLAGE

DILLA CAMPUS

Department Of Accounting And

Finance

Course Handout

Course Title :- Deliver and Monitor a Service to Customers

Course Code:- EIS ACB3 19 0812

By :-Terefe kassa

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 Learning Outcome 1

Identify Customer Needs

Use Appropriate Interpersonal Skills To Accurately Identify And Clarify
Customer Needs And Expectations

What Is Interpersonal Communication?

Interpersonal communication is the process by which people exchange information,
feelings, and meaning through verbal and non-verbal messages: it is face-to-face
communication. Interpersonal communication is not just about what is actually said - the
language used - but HOW it is said and the non-verbal messages sent through tone of voice,
facial expressions, gestures and body language. See our pages: Verbal Communication and
Non-Verbal Communication for more information.

When two or more people are in the same place and are aware of each other's presence,
then communication is taking place, no matter how subtle or unintentional. Without speech,
an observer may be using cues of posture, facial expression, and dress to form an
impression of the other's role, emotional state, personality and/or intentions. Although no
communication may be intended, people receive messages through such forms of non-
verbal behaviour.

Much research has been done to try to break down interpersonal communication into a
number of elements in order that it can be more easily understood. Commonly these
elements include:
THE COMMUNICATORS
For any communication to occur there must be at least two people involved. It is easy to
think about communication involving a sender and a receiver of a message. However, the
problem with this way of seeing a relationship is that it presents communication as a one-
way process where one person sends the message and the other receives it. While one
person is talking and another is listening, for example.

In fact communications are almost always complex, two-way processes, with people
sending and receiving messages to and from each other simultaneously. In other words,
communication is an interactive process. While one person is talking the other is listening -
but while listening they are also sending feedback in the form of smiles, head nods etc.

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Message not only means the speech used or information conveyed, but also the non-verbal
messages exchanged such as facial expressions, tone of voice, gestures and body language.
Non-verbal behaviour can convey additional information about the spoken message. In
particular, it can reveal more about emotional attitudes which may underlie the content of
speech.

Noise has a special meaning in communication theory. It refers to anything that distorts the
message, so that what is received is different from what is intended by the speaker. Whilst
physical 'noise' (for example, background sounds or a low-flying jet plane) can interfere
with communication, other factors are considered to be ‘noise’. The use of complicated
jargon, inappropriate body language, inattention, disinterest, and cultural differences can
be considered 'noise' in the context of interpersonal communication. In other words, any
distortions or inconsistencies that occur during an attempt to communicate can be seen as
noise.

FEEDBACK
Feedback consists of messages the receiver returns, which allows the sender to know how
accurately the message has been received, as well as the receiver's reaction. The receiver
may also respond to the unintentional message as well as the intentional message. Types of
feedback range from direct verbal statements, for example "Say that again, I don't
understand", to subtle facial expressions or changes in posture that might indicate to the
sender that the receiver feels uncomfortable with the message. Feedback allows the sender
to regulate, adapt or repeat the message in order to improve communication.

Note: When you have the opportunity to observe some interpersonal communication, make
a mental note of the behaviours used, both verbal and non-verbal.
Observe and think about the following factors:
• Who are the communicators?

• What messages were exchanged?

• What (if any) noise distorts the message?

• How is feedback given?

• What is the context of the communication?

By observing others - making a conscious effort to understand how communication occurs -

you will think about how you communicate and be more aware of the messages you send.

By observing others - making a conscious effort to understand how communication occurs

- you will think about how you communicate and be more aware of the messages you send.

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USES OF INTERPERSONAL COMMUNICATION
Most of us engage in some form of Interpersonal Communication on a regular basis, how
well we communicate with others is a measure of our Interpersonal Skills. Interpersonal
communication is a key life skill and can be used to:
• Give and collect information

• Influence the attitudes and behaviour of others

• Form contacts and maintain relationships

• Make sense of the world and our experiences in it

• Express personal needs and understand the needs of others

• Give and receive emotional support

• Make decisions and solve problems

• Anticipate and predict behaviour

• Regulate power

BARRIERS TO EFFECTIVE COMMUNICATION

There are many reasons why interpersonal communications may fail. In many
communications, the message (what is said) may not be received exactly the way the sender
intended. It is, therefore, important that the communicator seeks feedback to check that
their message is clearly understood.
The skills of Active Listening, Clarification and Reflection may help but the skilled
communicator also needs to be aware of the barriers to effective communication and how
to avoid or overcome them.

Common Barriers to Effective Communication:

• The use of jargon. Over-complicated, unfamiliar and/or technical terms
• Emotional barriers and taboos. Some people may find it difficult to express their emotions
and some topics may be completely 'off-limits' or taboo
• Lack of attention, interest, distractions, or irrelevance to the receiver. (See our page
Barriers to Effective Listening for more information)
• Differences in perception and viewpoint
• Physical disabilities such as hearing problems or speech difficulties
• Physical barriers to non-verbal communication. Not being able to see the non-verbal cues,
gestures, posture and general body language can make communication less effective
• Language differences and the difficulty in understanding unfamiliar accents
• Expectations and prejudices which may lead to false assumptions or stereotyping. People
often hear what they expect to hear rather than what is actually said and jump to incorrect
conclusions

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• Cultural differences. The norms of social interaction vary greatly in different cultures, as
do the way in which emotions are expressed. For example, the concept of personal space
varies between cultures and between different social settings
IMPROVING COMMUNICATION - DEVELOPING EFFECTIVE COMMUNICATION SKILLS
Effective communication skills are fundamental to success in many aspects of life. Many
jobs require strong communication skills and socially people with improved communication
skills usually have better interpersonal relationships.
Effective communication is a key interpersonal skill and by learning how we can improve
our communication has many benefits.
Communication is a two way process so improving communication involves both how you
send and receive messages.
The following list includes things that can help you further improve your communication skills.

We are all customers in our daily lives. We might be customers at places such as: train
stations, gas stations, supermarkets and banks. As a customer, what qualities would you be
like to see in the people and the organisation providing services to you? Listed is below are
some qualities you might have considered.
WHAT ARE CUSTOMER’S NEEDS? Customers need you to…
Qualities
Accessibility be easy to talk to (approachable)
• be easy to contact
Courtesy be polite, respectful, considerate, friendly

Reliability perform the promised service dependably

and accurately
• be punctual
Security provide security, ie, freedom from danger,
risk or doubt (eg security of data, protection
of health and safety)
Good at communication keep them informed, in a language they can
understand
• listen to them
Understand the customers make an effort to know them and their needs

Credibility be trustworthy and honest

Competence have the skills and knowledge to perform the

service
Confidentiality not discuss matters relating to them (except
with other staff, if appropriate)

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Customers have different needs. For example, they may need information (e.g. how to enrol
in a course), a product (e.g. a book), or a service (e.g. a bus trip). Sometimes they may need
to complain and are looking for an apology and for someone to take responsibility and
action.
Customers can be internal or external to the organisation. They may use a service daily or
only occasionally. Sometimes their needs are very specific, e.g., they may want a certain
product delivered. Sometimes their needs aren’t so clear, e.g. they may not know what they
want or need and are asking you to provide solutions.
Identifying customer needs or concerns involves:
• Active listening––allowing the customer to explain their need or concern, without trying
to solve the problem immediately
• Questioning––using questions such as reflective questioning techniques to draw out the
exact need or concern
• Paraphrasing––repeating the need or concern back to the customer in your own words to
check you’ve understood it correctly
• Developing an action plan for a solution when the customer starts to calm down and then
repeating what was agreed on as an action plan
• Encouraging customer to propose solution
• Deciding on the urgency of the customer’s needs
NON-VERBAL SIGNS OF ATTENTIVE OR ACTIVE LISTENING
This is a generic list of non-verbal signs of listening, in other words people who are listening
are more likely to display at least some of these signs. However these signs may not be
appropriate in all situations and across all cultures.
Smile
Small smiles can be used to show that the listener is paying attention to what is being said
or as a way of agreeing or being happy about the messages being received. Combined with
nods of the head, smiles can be powerful in affirming that messages are being listened to
and understood.
Eye Contact
It is normal and usually encouraging for the listener to look at the speaker. Eye contact can
however be intimidating, especially for more shy speakers – gauge how much eye contact is
appropriate for any given situation. Combine eye contact with smiles and other non-verbal
messages to encourage the speaker.
Posture

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Posture can tell a lot about the sender and receiver in interpersonal interactions. The
attentive listener tends to lean slightly forward or sideways whilst sitting. Other signs of
active listening may include a slight slant of the head or resting the head on one hand.
Reflective
Automatic reflection/mirroring of any facial expressions used by the speaker can be a sign
of attentive listening. These reflective expressions can help to show sympathy and empathy
in more emotional situations. Attempting to consciously mimic facial expressions (i.e. not
automatic reflection of expressions) can be a sign of inattention.

Learning Outcome 2

Deliver A Service To Customers

TYPES OF CUSTOMERS
• Internal - work colleagues who may require your services in some way in order for them

to carry out their job. This may include someone in the same office or department as you,
or in another branch which could be in another state or even country.
• External - people from outside the business, who are either making enquiries or

purchasing goods or services. This may include members of the public or someone from
another organization.
ORGANISATIONAL REQUIREMENTS
Most organizations have a policy or code of practice, dealing with quality customer service;
in order to provide customers with prompt and efficient service for handling enquiries,
making sales and monitoring customer feedback. These would include an outline of
expected standards of service, including courtesy, discretion, confidentiality and follow-up
procedures.
Customer service standards are often set in the organisation's vision and/or mission
statement. New employees often undergo an induction training course which may include
information on:
• How to greet customers

• How to answer the telephone

• How to deal with difficult customers

Where to get relevant information

• Who to seek assistance from

• Personal presentation and dress standards

• Interpersonal skills

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It is more expensive to find new customers than it is to retain existing customers. Excellent
customer service means that a business will stand out from its competitors; and satisfied
customers will promote the business by word of mouth, which is the most effective form of
promotion.

Important tips when dealing with customers/clients:

• First impressions are most important

• Business success depends on the quality of the service

• Ask questions to give the customer the opportunity to explain what they need; this makes

them feel that their needs are important and also encourages them to become a repeat
customer instead of a one-off customer
In a customer/client-focused organisation, employees listen to the customers for their input
and feedback in order to ascertain what they consider is important about the products
supplied or the way service is delivered. Improvements can then be made resulting in the
organisation gaining a competitive advantage over other firms as customers will be happy
to become long-term clients.

Active listening - Listening is an important skill in communicating with others, as you are
able to understand and interpret what the other person is saying. To fully understand the
message being conveyed, it is important that you ask questions to clarify the meaning. It is
also important to clarify that the other person understands your message. If the client has
written or emailed the business for information, it may be necessary to phone them to
clarify their needs.
Non-verbal signs - Body and facial expressions are often used when communicating. It is
important that your body language is not conveying something different to what you are
saying.

Making use of correct questioning techniques - Questioning is an important tool used to

obtain feedback and clarification of a message, to ensure that the receiver understands what
the sender is saying. There are three main questioning techniques.
• Open questions encourage the sharing of information and usually require longer answers,

e.g. for what purpose are you purchasing this product?

• Closed questions are usually asking for a yes or no answer, and do not encourage any

further discussion, e.g. Would you like to purchase this product?

• Reflective questions are structured so that the person answers in a particular way, to

make their needs clear, e.g. Why does this product interest you?
CHARACTERISTICS OF QUALITY SERVICE

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A customer will become a repeat customer if they are satisfied with the quality of service
they receive. Quality service includes:
• Employees who are polite, attentive to customer's needs and are able to build rapport

• Employees who have good knowledge of the organisation's products or know the correct

person to pass an enquiry on to; and actually follow through with enquiries
• Having goods and services that are reliable and reasonably priced

• Having complaints dealt with promptly and with understanding

• Being treated with respect and without prejudice

BENEFITS OF GOOD CUSTOMER SERVICE

• Promoting goodwill - increasing the established reputation of the business and enhancing

its value
• Customer/client loyalty/repeat business - being able to win the customer's trust and build

a long-term relationship; one that will survive even in bad economic times
• New business - being able to differentiate from other businesses and be able to attract new

customers, often due to word-of-mouth promotion from satisfied customers

• Productivity - the capacity to increase production with little or no increase in costs,

improving profitability
• Credibility - building a reputation of being an honest and trustworthy business

• Promoting workplace/organisation service ethic - a set of honourable rules of conduct

which will improve the loyalty of employees and give the organisation a competitive
advantage
It is important to remember that business success will be dependent on the quality of the
service given by employees; satisfied customers will become repeat customers and will
promote your business to others, ensuring long-term growth and profitability.

Customers prefer to do business with people they like. You can gain this approval by
establishing rapport, or a positive connection, with a customer.
Rapport can be established by:
• Asking questions
• Making eye contact
• Offering to help
• Recognising mutual interests
• Simple gestures such as calling a customer by their name
You will usually find that the customer responds to this type of behaviour by identifying you
as being keen to assist them to understand their needs and find a solution to their problem.
The time you take to establish a relationship with the customer will enhance their
commitment and trust in the organisation.

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Refer the customer to another appropriate organisation if you are unable to help:
If you cannot help, or refer to another person in the business, honestly tell the customer. It
would be even better if you could spend a few minutes talking to them to gather more
information and then accurately refer them to the correct organisation.

Present a positive, can do, will help, attitude at all times

A positive, “will help” attitude is important at all times but absolutely critical when the
customer is giving you negative feedback or complaining about the service they have
received.
Empathic phrases are a simple and easy way of conveying that you understand your
customer’s situation. You may try using the following phrases:
• I can see how difficult this must be for you
• I understand what you mean
• I understand how inconvenienced you must feel
• I am very sorry that this has happened to you
Use a genuinely warm and caring tone, to enhance the meaning and effectiveness of
empathic phrases.
Saying “I’m sorry” to a customer does not imply that you or your organisation did anything
wrong; it simply conveys that you are genuinely sorry that the customer has had a bad
experience.
Check with your workplace policies or procedures or your supervisor or team leader
regarding your organisation’s preferred method of dealing with angry or dissatisfied
customers.
When a customer is upset, they want to express their feelings, and they want their problem
solved.
Be patient and allow time for the customer to express their feelings. The customer will be
more prepared to listen to you once they have ‘got their feelings off their chest’. You can
then begin to participate more actively in the process of solving their problem. Let

Learning Outcome 3

Monitor And Report On Service Delivery

Organizations have specialized departments that plan and conduct customer research. We
will have a look at some of the techniques you may be required to understand in order to
effectively research (or review) customer satisfaction.

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THE RESEARCH PROCESS
Like all research processes, customer service research has five broad phases. These are:
• Defining the problem and documenting the research objectives
• Developing the research plan for collecting information
• Implementing the research plan — collecting and analyzing the data
• Interpreting and reporting the findings
• Post-implementation review
Let’s look at each of these in more detail.
DEFINING THE PROBLEM AND RESEARCH OBJECTIVES
In this phase, you need to define and document the objectives of the research. This phase
expresses the outcome as a series of goals. Defining the problem is often the hardest part of
the research process, as a manager may know that a problem exists but be unsure how to
put the problem in ‘research language’.
Defining a problem keeps us focused on our goal, and encourages us to start with the end
result in mind, instead of getting bogged down in details. This is the essence of strategic
thinking and planning. For example, a manager may suspect that an organisation is losing
customers as a result of poor service. Before trying to implement

Reviewing customer satisfaction begins with customer research. Most medium to large
organisations have specialised departments that plan and conduct customer research. We
will have a look at some of the techniques you may be required to understand in order to
effectively research (or review) customer satisfaction.
THE RESEARCH PROCESS
Like all research processes, customer service research has five broad phases. These are:
• Defining the problem and documenting the research objectives
• Developing the research plan for collecting information
• Implementing the research plan — collecting and analysing the data
• Interpreting and reporting the findings
• Post-implementation review
Let’s look at each of these in more detail.
DEFINING THE PROBLEM AND RESEARCH OBJECTIVES
In this phase, you need to define and document the objectives of the research. This phase
expresses the outcome as a series of goals. Defining the problem is often the hardest part of
the research process, as a manager may know that a problem exists but be unsure how to
put the problem in ‘research language’.
Defining a problem keeps us focused on our goal, and encourages us to start with the end
result in mind, instead of getting bogged down in details.

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solutions, the frontline manager needs to be sure of the problem and its causes. The
problem can be defined as a goal, or a series of goals, such as:
• Determine the causes of customer attrition by implementing weekly satisfaction surveys

Sometimes defining a customer service problem can be tricky and it can be a good idea to
involve an experienced market research specialist at this point in the process.
Once the problem has been defined, you need to identify the specific objectives of the
research process. There are three general types of research objectives for most research
processes:
• Exploratory: These objectives relate to gathering information about a customer service

related problem or impact of a new customer service. For example, a manufacturer may
wish to investigate whether the introduction of a 24-hour help-line would solve the
majority of consumer problems and therefore reduce the processing costs of returned
goods
• Descriptive: Descriptive objectives relate to the customer research that will be used to

better describe customer service related problems or situations. For example, you may wish
to investigate if a new customer service will appeal to the customers in your area
• Causal: The final category of objectives is causal objectives. These objectives investigate

customer service ‘effects’ eg, aggressive behaviour by customers when market researchers
call after 7pm. This type of investigation of the linking between observed factors is called
‘cause and effect relationship’ research

Finally, using these objectives, you need to decide who will use the information gathered
and how they will use it. Considering these objectives helps you to define what data or
information needs to be gathered, identify what questions need to be asked and determine
what the customer service research sample needs to be.
DEVELOPING THE RESEARCH PLAN
Once the objectives have been identified, the next phase is the development of the research
plan.
 The outcome is expressed as a series of goals (as described above). In customer
service research these goals must include determining the specific information
needs of the research. For example, must the final information outcome include
demographic data, lifestyle characteristics, and consumer attitudes to the
packaging?
• A list of actions to achieve each goal is created

• A time line for each action is prepared

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• Resource allocation occurs for each action

• Possible problems are identified and contingency plans are created

• A monitoring process is designed and implemented

• Final costs are estimated

• The plan is implemented

In customer service research, there are four additional areas that must be addressed during
the planning process. These involve the following:
• What ‘primary’ and ‘secondary’ data to gather (usually included as part of a list of

actions to be achieved for each goal). Primary data is data that is collected specifically for
this customer service research. Secondary data is information that already exists as it has
been collected for another purpose, such as demographic data or the organisation’s Profit
and Loss Statement.
• The customer service research techniques that will be used. These include are

interviews, surveys, focus groups and case studies.

• Selecting the suitable sample of customers who will be used for the customer service

research. Choosing your sample is critical. To seek information from the wrong sample of
customers, or a very limited sample, could mean invalidating your customer service
research.
• Selecting an appropriate customer contact method. If the customer research requires

customer contact then you must decide what customer contact methods will be used to
gather the data. Common forms of customer contact include mail, telephone, email or
personal interview. A summary of the strengths and weaknesses of these four contact
methods is provided below:

IMPLEMENTING THE RESEARCH PLAN

In the next phase, the research plan is implemented and managed. Although the
management of the customer service research plan may be controlled by the organisation,
many organisations today elect to have the customer service related data collected by a
third party — this reduces costs and ensures objectivity. ‘Mystery Shopper’ organisations
provide this type of service.
INTERPRETING AND REPORTING ON THE FINDINGS
In this phase, you interpret the findings, draw conclusions from the data collected and
present the results to your team and the organisation.
POST-IMPLEMENTATION REVIEW
THE FOUR STEPS TO MONITORING
1. ESTABLISH WHERE MONITORING IS NEEDED

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The key point for a manager in monitoring the implementation of service improvement
plans is identifying where monitoring is needed. In order to identify the areas that require
monitoring, ask yourself the following questions:
What are the most important areas in my service improvement plans? Are they:
• team member service behaviours
o Improving product quality

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2. ESTABLISH THE MEASURES
Using the answers to the questions above, identify what should be monitored. Remember
that your measures should monitor the key areas that you have identified in the first step,
including those that support the organisation's service strategy. Measure the most
important things that will help you to meet your goals, and make sure the measures give
you accurate and timely information. One useful method of gathering data is to use both
formal and informal customer surveys. Informal surveys can be carried out by staff when
they have finalized a sale with the customer by asking questions. Formal surveys using a
written form or external group to do phone surveys and mystery shoppers are often best
for developing a complete picture.
3. COMPARE
Compare what should be happening with what is happening. Remember that in any plan
some variation to the planned outcome will occur. As a manager your role is to identify
when this variation is important.
4. TAKE ACTION
If a variation is identified it may become necessary for you to take corrective action. You
may need to:
• Give yourself some ‘breathing time’ to decide on the proper course of action (interim
action)
• Change some of the service standards so that they meet customer needs more effectively
(adaptive action)
• Remove negative influences that are affecting service performance, eg change a service
offering to better accommodate customer demands (corrective action)
• Remove the cause of a potential performance shortfall, eg implement performance
management procedures to address the non-performance of a team member (preventative
action)
• Act to reverse a negative trend in the plan that is revealed by monitoring and prevent any
future impact on customer satisfaction, eg implement a training plan to improve the ability
of staff to manage customer complaints (contingency action)
REGULARLY SEEK CUSTOMER FEEDBACK AND USE TO IMPROVE THE
PROVISION OF PRODUCTS AND SERVICES
So far we have looked at how important it is to find out what your customer thinks of your
services and products. Customer service improvement, however, is a continuous cycle. In
other words, when you receive feedback, you and your organisation need to act on this
feedback, and not just file it away for later and do nothing with the feedback.

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It is important that you regularly seek customer feedback on the service provided as well as
your product. It is hoped that when you get the feedback that your customers will say that
your services have improved. Having the feedback will help in your organisations
continuous improvement.
Continuous improvement can be defined as the improvement of the quality of aspects of
service (or the product). The improvement will not happen overnight—it’s step-by-step.
Ideally, improvements must be cost-efficient or cost neutral. Ideally too, it should not mean
more work for staff but a change in the ways things are done. Customer feedback is sought
continuously.

are not working well—therefore resulting in the customer not getting satisfaction out of
their interactions with your unit or organisation.
You would need to examine the following:
• Work processes may not adequately incorporate quality requirements

• The quality objectives may be incorrect or incomplete

• The established quality standards may be incorrect or incomplete

• The metrics used to measure quality may be incorrect or incomplete

• The quality assurance checklist may be inaccurate

• The quality process may be incorrect

Once you have identified where the quality management process can be improved, report
your findings to your manager. Remember, continuous improvement occurs when the
quality management process is continually reviewed and improved.

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