To survive, businesses must meet the needs of customers.  So, what are the needs of customers?  Here are some factors which are important to customers:

• Good quality products
• Attractive packaging
• Durability (products that will last)
• Up-to-date, fashionable products
• Good Prices
• Good Image
• Easily available
• Guarantees with the product
• Good after-sales service (refunds if customer is not happy)

Meeting Customer Needs

If customer needs are not met the business will not be successful. It is, therefore, very important to carry out market research (discussed later in notes) to identify exactly what customers need.

• Reliability/quality of the product/service;
• Consistency over a period of time – how does it match up to the last good/service purchased?
• The speed and flexibility of delivery – can the organisation accommodate the customer’s needs, for example, can they deliver within 24 hours?
• Courtesy and attitude of staff – from those on the shop floor to the delivery drivers;
• The information given about the product – was it accurate? Did it do all the business claimed it would do?
• How did the organisation react if help was needed? Were staff happy to assist the shopper?

Benefits of Good Customer Service

Satisfied customers

If customers are happy with product or service offered they will return and recommend the company to other people.

Keeping customers loyal

Encourage customers to return by offering loyalty schemes e.g. Boots Advantage Card or Sainsbury Nectar Card.

Attracting new customers

May result from recommendations from existing customers of use of advertising or promotions.

Happy and motivated staff

If staff have been trained in customer service policy and are not constantly faced with unhappy customers they will be happier and work harder

Good/improved reputation

The image of the company will be good if customers have a good experience.

Increased sales/profits

More customers means more sales and profits for the company

Impact of Poor Customer Service

Loss of customers

 If customers are unhappy about the product or service being provided they will not buy from the company again.

Bad publicity

 Unhappy customers will tell other people about their experience and may leave bad reviews on the company website or on third party website e.g. Trip Advisor.

Poor reputation

 Bad publicity will lead to the organisation getting a poor reputation. The company will not attract new customers. People may not want to apply for jobs with the company.

Demotivated employees

 Staff who have had little or poor customer service training or who are constantly dealing with unhappy customers may feel stressed. Lack of training can lead to mistakes e.g. giving customers wrong information.

Decreased sales/profits

 Lack of returning and new customers will lead to a fall in sales and therefore a fall in profits.

Legal action

 If complaints regarding e.g. return of faulty goods are not dealt with correctly then legislation in place to protect consumer may have been broken. This may result in customers taking legal action.