Lesson 2:

Customer service in management

Bùi Ngọc Tuấn Anh (PhD) – anh.bnt@ou.edu.vn
Content

• 2.1. Relationships with customers and business activities

• 2.2. The nature and role of customer service
• 2.3. Levels of customer service
• 2.4. Choosing the form of customer service/sales

Lesson 2: Customer service in management

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 2.1. Relationships with customers and business
Content
activities

• 2.1. Relationships with • Customer relationships and business activities

customers and business
activities • Customer satisfaction, loyalty and business performance
• 2.2. The nature and role of • Theory of relationship management
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content Customer relationships and business activities

• 2.1. Relationships with • A relationship is composed of a series of interactive episodes

customers and business between dyadic parties over time.
activities
• Change within relationships
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer Awareness Expansion Dissolution
service
• 2.4. Choosing the form of Exploration Commitment
customer service/sales
• Relationship satisfaction is not the same as commitment.

Lesson 2: Customer service in management

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 Customer satisfaction, loyalty and business
Content
performance

• 2.1. Relationships with • Starting from the same position and acquiring an identical
customers and business number of new customers each year, company A’s customer base
activities is 19% larger than company B’s after 4 years: 1268 customers
• 2.2. The nature and role of compared to 1066 customers
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn

Content
• 2.1. Relationships with
customers and business
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales
Customer satisfaction, loyalty and business
performance
• Companies generate better results when they manage their
customer base in order to identify, acquire, satisfy and retain
profitable customers.
• Managing customer retention and tenure intelligently generates
two key benefits for companies – reduced marketing costs, and
better customer insight.
Lesson 2: Customer service in management
anh.bnt@ou.edu.vn
 Customer satisfaction, loyalty and business
Content
performance

• 2.1. Relationships with

customers and business
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
 Customer satisfaction, loyalty and business
Content
performance

• 2.1. Relationships with • Customer satisfaction is the customer’s fulfilment response to a

customers and business customer experience, or some part thereof.
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
 Customer satisfaction, loyalty and business
Content
performance

• 2.1. Relationships with

customers and business
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Figure 2.7 Two-dimensional model of customer loyalty

Lesson 2: Customer service in management

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 Customer satisfaction, loyalty and business
Content
performance

• 2.1. Relationships with • Business performance can be measured in many ways.

customers and business
activities • The American Customer Satisfaction Index (ACSI) was
established in 1994
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
 Customer satisfaction, loyalty and business
Content
performance

• 2.1. Relationships with

customers and business
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Figure 2.10 non-linear relationship between customer

satisfaction and repeat purchase
Lesson 2: Customer service in management
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Content Theory of relationship management

• 2.1. Relationships with the Industrial

customers and business Marketing and
activities Purchasing (IMP)
school
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer the Asian the Nordic
service
(guanxi) school school
• 2.4. Choosing the form of
customer service/sales

the Anglo-
the North
Australian
American school
school

Lesson 2: Customer service in management

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Content the Anglo-Australian school

• 2.1. Relationships with • The model suggests that firms must satisfy six major stakeholder
customers and business “markets”
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Figure
Lesson 2: Customer 2.11
service in The six-Markets
management Model
anh.bnt@ou.edu.vn
Content the Asian (guanxi) school

• 2.1. Relationships with • Guanxi determines who can conduct business with whom and
customers and business under what circumstances.
activities
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content 2.2. The nature and role of customer service

• 2.1. Relationships with • Customer service/sales records help businesses know

customers and business • What type of customer relationship are you trying to
activities
establish?
• 2.2. The nature and role • Strengths in current CRM methods
of customer service
• Internal communication effects
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content Why call it the customer service/sales profile ?

• 2.1. Relationships with • Every business activity is ultimately justified by how it serves the
customers and business customer
activities
• 1. Sales do not equal relationships: the sale is just the beginning
• 2.2. The nature and role
of customer service • 2. Service extends beyond the buyer
• 2.3. Levels of customer • 3. Service and sales are on the same team
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content 2.3. Levels of customer service (Service/Sales)

• 2.1. Relationships with • Level 1: Initial transactions

customers and business
activities • Level 2: Repeat customers
• 2.2. The nature and role of • Level 3: Customer advocates
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content Level 1: Initial transactions

• 2.1. Relationships with • Level 1 – First-time customers or initial transactions, focused on

customers and business • Initial transactions
activities
• Individual
• 2.2. The nature and role of
customer service • Single sales
• 2.3. Levels of customer • Provides a solid foundation for business operations
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content Level 2: Repeat customers

• 2.1. Relationships with • Level 2 - Repeat customers

customers and business
activities • Use tools to help
• 2.2. The nature and role of • Focus on bringing back first-time customers
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content Level 3: Customer advocates

• 2.1. Relationships with • Building through transactions that satisfy needs and care
customers and business
activities • A powerful source of marketing support
• 2.2. The nature and role of
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content 2.4. The shape of customer service/sales profile

• 2.1. Relationships with • the Pyramid

customers and business
activities • the Hourglass
• 2.2. The nature and role of • the Hexagon
customer service
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn
Content The pyramid profile

• 2.1. Relationships with • It applies to the majority of businesses.

customers and business
activities
• 2.2. The nature and role of Level 3:
They tell positive stories
customer service
Customer about staff and service.
• 2.3. Levels of customer Advocates
service
• 2.4. Choosing the form of
customer service/sales Level 2: Repeat
Customers

Level 1: Initial Transactions

Lesson 2: Customer service in management

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Content The hourglass profile

• 2.1. Relationships with • The Hourglass Profile is less common.

customers and business
activities • the buying cycle is long or when your product or service is a
one-time purchase
• 2.2. The nature and role of
customer service • Based on the solid foundation of initial transactions
• 2.3. Levels of customer
service
• 2.4. Choosing the form of
customer service/sales Level 3: Customer Advocates

Level 2: Repeat Customers

Level 1: Initial Transactions

Lesson 2: Customer service in management
anh.bnt@ou.edu.vn
Content The hexagon profile

• 2.1. Relationships with • This profile describes a business that is very stable
customers and business
activities • Has many current regular customers.
• 2.2. The nature and role of • This is a vulnerable profile.
customer service
• 2.3. Levels of customer
service Level 3: Customer Advocates
• 2.4. Choosing the form of
customer service/sales
Level 2: Repeat Customers

Level 1: Initial Transactions

Lesson 2: Customer service in management

anh.bnt@ou.edu.vn