There is only one boss: the customer. And he or she can fire everybody in the company from the chairman down, simply by spending their money somewhere else. (Sam Walton, founder of Wal-Mart) What does customer mean? 1) A person who buys, especially on a regular basis; 2) A person or a company that buys goods or services. At the end of the day customers are the sole provider of every business—the revenue stream that pays for everything else. You can have the best product, the best accountant, the best management, and so on, but you have nothing without a revenue stream. And the revenue stream is the direct contribution of sales, period. Nothing happens until something is sold. What is Service?  It is anything of value other than physical goods, which one person or organization provides to another person or organization in exchange for something.  Service is the work of dealing with customers. A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It may or may not be tied to a physical product.  A service is an act or performance offered by one party to another. Although the process may be tied to a physical product, the performance is essentially intangible and does not normally result in ownership of any of the factors of production.  Services are economic activities that create value and provide benefits for customers at specific times and places, as a result of bringing about a desired change in—or on behalf of-—the recipient of the service.  A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. Services are deeds, processes, and performances.  Service can be seen simply as those points of interaction between service providers, normally the employees of an operation, and their customers. A broader description would include all the elements that go to make up a complete service package or experience, which might include, as in a hotel, a complete mixture of products and services. The nature of the service act means that operations have a number of particular characteristics that affect their management. Services are often described in contrast to goods. While the later are tangible items that can be created and then sold or used later, service is intangible and perishable. It is usually created and consumed simultaneously.

1. Customer care & Service
Credit hour: 2
Target G: Year II
By;
Endalamaw Kindie (BA, MA, PhD Student)
Email: endalamawk@gmail.com
Bahir Dar University
May, 2022
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2. Chapter 1
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3. Main contents
 Customer
 service
 customer care/service
 Types of customers
 Types of customer services
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4. Introduction
 There is only one boss: the customer. And he
or she can fire everybody in the company
from the chairman down, simply by spending
their money somewhere else.
(Sam Walton, founder of Wal-Mart)
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5. Definition of Customer
 What does customer mean?
 Please discuss with your friend
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6. Definition of Customer
 A person /company that buys good or services
 A person who buys, especially on a regular basis
 How about SERVICE???
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7. Service
 It is anything of value other than physical goods,
which one person or organization provides to
another person or organization in exchange for
something.
 Service is the work of dealing with customers.
 A service is any act or performance that one party
can offer to another that is essentially intangible
 It may or may not be tied to a physical product
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8. Service
 Services are economic activities that create value
and provide benefits for customers at specific
times and places
 Services are deeds, processes, and performances.
 Service can be seen simply as those points of
interaction between service providers and their
customers.
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9. Customer Service
 Customer service is often seen as an activity,
performance measurement and a philosophy.
 That is why, generally speaking, one single
definition of customer service does not exist.
 However, there are some definitions of customer
service in use today:
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10. definitions of customer service in use today:
 CS is the ability to provide a service or product in
the way that it has been promised."
 " CS is about treating others as you would like to
be treated yourself."
 "CS is an organization's ability to supply their
customers' wants and needs."
 "CS is a phrase used to describe the process of
taking care of our customers in a positive
manner."
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11. definitions of customer service in use today:
 "Customer Service is any contact between a
customer and a company that causes a negative or
positive perception by a customer.”
 "Customer service is a proactive attitude that can
be summed up as: I care and I can do.”
 It is all the direct and indirect contact between an
organization and its customers.
 It includes all contacts with the customer either
face-to-face or indirect contact.
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13.  The reason why we need to study the course
customer care and services is that because we are
dealing with people.
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14. 1.2 Types of customers
 There are two types of customers in a broad sense-
ours and our competitors’.
 Often we disregard our competitors’ customers for
a variety of reasons;
 for example we criticize them by stating that they
‘only buy on price’ and are not sophisticated to
appreciate enough the ‘quality’ of our
organization.
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15. 1.2 Types of customers
 In fact, data have demonstrated that the major
reasons why customers leave organizations are
service based, not price.
 We should never dismiss our competitors’
customers.
 Rather, we should want to know why they are not
our customers, and what about us, not them, is
keeping them from being our customers.
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16. 1.2 Types of customers
 Our customers come in three types:
 Dissatisfied: in danger of defecting to the
competition at any time;
 Satisfied: willing to stay until something better
comes along;
 Delighted: with needs and expectations exceeded
on a continual basis. These customers are loyal
and singing our phrases to the world.
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17. 1.2 Types of customers
 Whether customers are dissatisfied, satisfied
or delighted depends on the difference
between
customer perception and customer
expectation of an organization’s products
and services.
Explain/justify this theory
after 5 minutes discussion!
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18. The Real Customer Service
 Customer service is not merely keeping the
customer satisfied;
 it is keeping the customer delighted.
 It is not enough to have a satisfied customer,
she/he should be ecstatic for doing business with
you.
 This is "real" customer service.
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19. First contact with organization: ‘moment of truth’
• The ‘moment of truth’
• A “Moment of Truth” is any point of
interaction that a customer has with an
organization
• through their experience of that interaction,
gain an impression of the organization.
• Care comes into the picture during the moment
of truth.
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20. product oriented & Customer oriented philosophies
• 1) Product oriented philosophy (old philosophy)
• Is a management philosophy or organizational
culture that is based on the company’s product.
• The tendency is to focus on how to get customers
to buy the product, and decisions are based on
what is good or bad for the company’s products.
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21. product oriented & Customer oriented philosophies
• 2) Customer oriented philosophy
• based on the needs and desires of its customers.
• The tendency is to focus on what customers in the
market place want and to develop products to
meet those needs.
• Decisions are usually based on customer needs.
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22. Understanding the service product
• For many years businesses treated services much
the same as they treated any retail good.
• However in the 1970’s a new view emerged
which understands service is distinctly different
from retail.
• Discuss & Justify
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23. Understanding the service product
• For many years businesses treated services much
the same as they treated any retail good.
• However in the 1970’s a new view emerged
which understands service is distinctly different
from retail.
• The basic nature of the service product differs
from that of the retail product in three major
characteristics.
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24. Understanding the service product
• Relative intangibility of service
• Simultaneity
• Customer participation
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25. Understanding the service product
• Relative intangibility of service
• Simultaneity
• Customer participation
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Retail Service
Producesandsellsthings producesandsellsexperiencesandfeelings
Producesthensells Produceswhensells
Producesawayfromcustomers Producesalongwithcustomers

26. Going Beyond products
 Customer service should go beyond products.
 In today's volatile business world and challenging
economy, retaining customers is critical to our
success.
 Customers have choices
 if we don't give customers some good reasons to
stay, competitors will give them a reason to leave.
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27. Some Facts and Figures
 It is far less expensive to cultivate an existing
customer base and sell more services to them than
to seek new ones.
 the average organization loses 50% of its
customers every five years; and the cost of replacing
them can be six to seven times more expensive than
winning them in the first place.
 (Harvard Business Review, p-117).
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28. Some Facts and Figures
 Studies have proven that a mere 5% increase in
customer retention can result in profit increases of at
least 20%
 repeat customers spend an average of 67% more
than new customers.
 Additionally, after 10 purchases, a customer may
have referred as many as 7 people.
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29. Some Facts and Figures
 In summary, "real" customer service can increase
customer retention and satisfaction and most
importantly, drive profits.
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30. What customers really want ?
 What customers really want can be divided into
two areas.
 Firstly - they want the core service of your
business to meet their needs. Example: If you say
you're an accountant, then they expect you to
resolve their tax details.
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31. What customers really want ?
 What customers really want can be divided into
two areas.
 Secondly -They also expect your product or service to
represent value for money.
 Example: If I buy an expensive pair of winter boots,
I expect them to keep out the cold and wet and also
look good
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32. six secrets of customer service
 What customers really - really - really want and
what will make them loyal to your business and say
wonderful things about you to other people are:
1. Warm and friendly responses
2. They want to feel important
 “Our greatest asset is the customer! Treat
each customer as if they are the only one!”-
Laurice Leitao
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33. six secrets of customer service…
3. They want to be listened to
 . Keep good eye contact with people and
concentrate on what they're saying.
 Listen to their words, tone of voice, body
language, and most importantly, how they feel.
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34. six secrets of customer service…
4. Someone to know their name
 If you use a customer's name when you talk to
them, it indicates that you recognize them as an
individual
 Don't use it too often as it can become
irritating
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35. six secrets of customer service…
5. Flexibility
 Customers hate to hear the word "No" or "it
can't be done”
 Tell customers what you can do - not what
you can't.
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36. six secrets of customer service…
6. Recovery
 When things go wrong, customers want you to
solve their problems quickly.
 They don't want to hear excuses or whom to
blame or why it happened; they just want it fixed
fast.
 Customers will often judge the quality of your
service by the way you recover.
 They will even forgive your mistakes if you
recover well.
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37. Fundamentals of customer care
 The six satisfaction elements
 A company’s product or service consists of a
number of individual factors known as elements,
which, separately and collectively, directly
influence customer satisfaction.
 Between them, the six elements – known as
satisfaction elements – represent every aspect in
the purchasing decision of customers
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38. Fundamentals of customer care
 The six satisfaction elements
1. The product or service;
2. Sales;
3. After-sales;
4. Location;
5. Time;
6. Culture.
Each element can be subdivided into factors /
considerations
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39. The six satisfaction elements
Source: Pat Wellington, (2010), Effective Customer Care, pp-7
Customer
Satisfaction