Unit Title: Managing the Customer Relationship Unit Reference Number: R/601/3378 Guided Learning Hours: 160 Level: Level 5 Number of Credits: 18 Learning Outcome 1 The learner will: Understand the contribution Customer Service makes to achieving organisational objectives. 1.1 Examine the key aspects of customer 1.1.1 Distinguish between customer, user and purchaser. 1.1.2 Understand key terms in the application of customer service, e.g. customer satisfaction, service quality and customer delight. 1.1.3 Purpose of customer service, both reactive (problemsolving) and proactive (relationship-building). 1.1.4 World Class in a customer service context with special reference to the four elements of world-class customer service (Johnston). 1.1.5 Explain the concept of the moment of truth in its customer service setting, i.e. the content of the service transaction. 1.2 Explain how customer service can be used to create competitive advantage. 1.2.1 Service/Profitability cycle (Reichheld). 1.2.2 Importance of the lifetime customer and customer loyalty. 1.2.3 Customer retention, repurchasing. 1.2.4 Customer acquisition. 1.2.5 Benefits of achieving world-class customer service for an organisation including customers, employees and other stakeholders. 1.3 Evaluate the risks to an organisation if it delivers poor customer 1.3.1 The dangers and problems associated with poor customer 1.3.2 The focus on alternative sources of competitive advantage, especially price.
Learning Outcome 2 The learner will: Know how to improve customer service performance in an organisation. 2.1 Evaluate the factors that contribute to customer satisfaction. 2.1.1 Identify organisations that justify the label world-class and analyse what they do that sets them apart. 2.1.2 Explain the factors that create customer satisfaction, dissatisfaction and customer delight. 2.1.3 Understand the role of customer expectation, the service transaction and service outcomes (as perceived by the customer). 2.1.4 Use of role modelling, benchmarking to evaluate customer service levels. 2.2 Assess how HRM policies can be used to deliver service excellence. 2.2.1 Develop recruitment and selection policies that enable the organisation to identify people with appropriate attitudes and capabilities for the effective performance of service/support roles. 2.2.2 Create induction, learning, training and development schemes that inculcate the organisation s central customer service values, its Big Idea and its required service behaviours. 2.2.3 Reward and recognition systems that acknowledge and celebrate success and progress in the customer service arena, for both individuals and teams. 2.2.4 Build service priorities into all aspects of the organisation s performance management and appraisal mechanisms. 2.2.5 Importance of career patterns. 2.3 Identify the different internal tactics that can be used to improve customer 2.3.1 The role of infrastructure (processes, systems and technology) in creating positive customer experiences. 2.3.2 Significance of Information Technology as an enabler of efficient service delivery, the contribution of I.T. to design, maintenance and improvement of customer service systems. 2.3.3 Co-operation between functions, especially customer facing (e.g. marketing and sales). 2.3.4 The factors for and against the establishment of a specific customer service function. 2.3.5 Benefits of personalised service organisation (tailoring customer service to each specific customer).
2.3.6 Risks and benefits associated with outsourcing and offshoring for service support roles or directly customerinteractive facilities. 2.4 Evaluate the strategic issues that affect customer service performance. 2.4.1 Service leadership, e.g. create appropriate high-level standards, champion and promote service excellence through a Big Idea, a mission, vision and core values. 2.4.2 Culture, e.g. climate of continuous improvement and restless dissatisfaction with the status quo and the development of positive approaches to learning. 2.4.3 HRM Strategies; evaluate the principles of job design in a customer service context; standardisation and scripting versus empowerment, discretionary behaviour and role autonomy. 2.4.4 Organisational structure. 2.4.5 Current and future potential of e-service and other forms of remotely administered customer 2.4.6 Customer Segmentation and the implications for customer Learning Outcome 3 The learner will: Know how to manage the customer interface. 3.1 Evaluate how macro environmental factors affect the power of the customer. 3.1.1 Economic influences e.g. increasing levels of discretionary income and the impact of the globalised economy. 3.1.2 Political influences e.g. privatisation and the deliberate creation of more competitive environments. 3.1.3 Social influences e.g. higher levels of education leading to a more sophisticated set of expectations, the impact of diversity and equal opportunities, the expansion of consumer groups. 3.1.4 Technological influences, e.g. the internet and e- commerce. 3.1.5 Legal influences, e.g. consumer protection, awareness of consumer rights and the effect of regulatory agencies. 3.1.6 Ethical and moral influences, e.g. the degree to which authentic levels of reciprocal trust can be created between organisations and customers.
3.2 Propose procedures to handle customer complaints. 3.2.1 Effective procedures for encouraging, processing, managing and responding to customer complaints. 3.2.2 Mechanisms for handling difficult customers and for resolving customer/supplier conflict. 3.3 Illustrate communication methods with customers that enhance service levels. 3.3.1 Gaining customer feedback and the benefits of measuring the organisation/customer relationship through the lens of the customer (Johnson and Gustafsson). 3.3.2 Methods through which organisations may communicate with customers: published service commitments and promises, product/service information etc. 3.3.3 Methods through which customer feedback may be solicited and utilised by organisations: questionnaires, interviews, focus groups etc. Learning Outcome 4 The learner will: Know how to improve customer service levels in specific contextual settings. 4.1 Compare the application of customer service between businessto-business (B2B) and business to consumer (B2C). 4.1.1 Compare the application of customer service between business-to-business (B2B) and business to consumer (B2C). 4.2 Identify the unique aspects associated with implementing customer service values in the public sector. 4.2.1 Compare public sector to private enterprise. 4.3 Evaluate the practice of customer service across differing distribution channels. 4.3.1 Internet-based and virtual product/service providers.
Learning Outcome 5 The learner will: Understand the role and impact of front-line staff in the delivery of customer 5.1 Explain the crucial role of front-line staff in the delivery of quality customer 5.1.1 Internal Customer Service, including the role of people in creating positive customer experiences and methods for generating customer-focused attitudes and behaviours throughout the organisation. 5.1.2 The notion of boundary spanning roles in customer service organisations (Batson and Hoffman) and the challenges these present to front-line staff and their management. 5.2 Assess the impact of the customer service interface on front-line staff. 5.2.1 The impact of boundary spanning roles on service delivery staff. 5.2.2 Causes of stress in the delivery of customer 5.2.3 Response mechanisms of staff in handling boundary spanning role stress. 5.3 Evaluate the managerial challenges in supporting front-line staff in the delivery of customer 5.3.1 Recognising the pivotal position of the customer service manager and front-line staff supervisors/team leader in stimulating high levels of commitment and engagement among customer-facing/boundary-spanning staff. 5.3.2 Identify the range of techniques available to managers and supervisors in undertaking 5.3.1. 5.3.3 Understand the mediating role of managers/supervisors in handling conflict between customers and customer-facing staff. Assessment: Assessment method: written examination (unless otherwise stated). Written examinations are of three hours duration. All learning outcomes will be assessed. Recommended Reading: Please refer to the Tuition Resources section of the Members Area of the ABE website (www.abeuk.com) for the recommended reading for this subject.