Develop and manage quality

customer service practices

2017
SITXCCS008
V1.0 2019

Learner Guide

Student Name:
Student ID:
 SITXCCS008
Develop and manage quality
customer service practices
Learner Guide
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Table of Contents

Unit of Competency .......................................................................................................................... 4

Application ........................................................................................................................................... 4
Performance Criteria............................................................................................................................ 5
Foundation Skills .................................................................................................................................. 6
Assessment Requirements ................................................................................................................... 7
1. Develop quality customer service practices .................................................................................. 10
1.1 – Obtain information on customer needs, expectations and satisfaction levels using both formal
and informal research ............................................................................................................................ 11
Importance of customer service ........................................................................................................ 11
Obtaining information on customers................................................................................................. 11
Customer needs and expectations .................................................................................................... 15
Activity 1A .......................................................................................................................................... 16
1.2 – Provide opportunities for customers and staff to give feedback on products and services ........ 17
Provide opportunities for feedback ................................................................................................... 17
Methods of obtaining feedback from customers .............................................................................. 17
Staff feedback .................................................................................................................................... 18
Suggesting product improvements .................................................................................................... 19
Activity 1B .......................................................................................................................................... 21
1.3 – Review changes in internal and external environments and integrate findings into planning for
quality service ........................................................................................................................................ 22
Changes to internal environment ...................................................................................................... 22
Changes to the external environment ............................................................................................... 23
Activity 1C .......................................................................................................................................... 26
1.4 – Provide opportunities for staff to participate in development of customer service practices .... 27
Involving staff in development of practices ....................................................................................... 27
Activity 1D .......................................................................................................................................... 28
1.5 – Develop policies and procedures for quality service provision .................................................... 29
Developing policies and procedures .................................................................................................. 29
Examples of policies and procedures................................................................................................. 30
Legal requirements ............................................................................................................................ 30
Activity 1E........................................................................................................................................... 32
2. Manage delivery of quality service............................................................................................... 33
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2.1 – Communicate policies, procedures and expectations to staff...................................................... 34

2.2 – Make policies readily available to customers and staff ................................................................ 34
Communicating to staff ..................................................................................................................... 34
Making policies available ................................................................................................................... 35
Activity 2A .......................................................................................................................................... 36
2.3 – Monitor customer service in the workplace to ensure standards are met .................................. 37
Monitoring customer service ............................................................................................................. 37
Meetings ............................................................................................................................................ 37
Reviewing written correspondence ................................................................................................... 37
Monitoring phone calls ...................................................................................................................... 37
Hiring a ‘quality inspector’ ................................................................................................................. 38
Other methods of assessing customer service .................................................................................. 38
Activity 2B .......................................................................................................................................... 40
2.4 – Initiate staff training to enhance customer service ...................................................................... 41
Staff Training ...................................................................................................................................... 41
Mentoring .......................................................................................................................................... 41
Internal training ................................................................................................................................. 41
External training ................................................................................................................................. 42
Activity 2C .......................................................................................................................................... 43
2.5 – Take responsibility for service outcomes and dispute resolution ................................................ 44
2.6 – Act as a positive role model for professional standards expected of service industry personnel 44
Taking responsibility .......................................................................................................................... 44
Setting a positive example ................................................................................................................. 45
Activity 2D .......................................................................................................................................... 46
3. Monitor and adjust customer service ........................................................................................... 47
3.1 – Seek ongoing feedback from staff and customers to improve performance ............................... 48
Seeking ongoing feedback ................................................................................................................. 48
Activity 3A .......................................................................................................................................... 50
3.2 – Assess effectiveness of customer service practices ...................................................................... 51
Assessing effectiveness of practices .................................................................................................. 51
Benchmarking .................................................................................................................................... 52
Activity 3B .......................................................................................................................................... 53
3.3 – Identify systemic customer service problems and adjust policies and procedures to improve
service quality ........................................................................................................................................ 54
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Systemic customer service problems................................................................................................. 54

Activity 3C .......................................................................................................................................... 55
3.4 – Develop, document and communicate new approaches to customer service to staff involved in
service delivery ...................................................................................................................................... 56
Developing new approaches to customer service ............................................................................. 56
Communicating new approaches to staff .......................................................................................... 56
Activity 3D .......................................................................................................................................... 57
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Unit of Competency
Application

This unit describes the performance outcomes, skills and knowledge required to develop, monitor and
adjust customer service practices. It requires the ability to consult with colleagues and customers,
develop policies and procedures for quality service provision, and manage the delivery of customer
service.

The unit applies to senior managers who operate independently, have responsibility for others and are
responsible for making a range of operational and strategic decisions.

This includes individuals working in a range of tourism, travel, hospitality and event contexts and to any
small, medium or large organisation.

No occupational licensing, certification or specific legislative requirements apply to this unit at the time
of publication.

Unit Sector

Cross-Sector
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Performance Criteria
Element Performance Criteria
Elements describe the Performance criteria describe the performance needed to
essential outcomes. demonstrate achievement of the element.

1. Develop quality 1.1 Obtain information on customer needs, expectations and

customer service satisfaction levels using both formal and informal research
practices 1.2 Provide opportunities for customers and staff to give
feedback on products and services
1.3 Review changes in internal and external environments and
integrate findings into planning for quality service
1.4 Provide opportunities for staff to participate in development
of customer service practices
1.5 Develop policies and procedures for quality service provision

2. Manage delivery of 2.1 Communicate policies, procedures and expectations to staff

quality service 2.2 Make policies readily available to customers and staff
2.3 Monitor customer service in the workplace to ensure
standards are met
2.4 Initiate staff training to enhance customer service
2.5 Take responsibility for service outcomes and dispute
resolution
2.6 Act as a positive role model for professional standards
expected of service industry personnel

3. Monitor and adjust 3.1 Seek ongoing feedback from staff and customers to improve
customer service performance
3.2 Assess effectiveness of customer service practices
3.3 Identify systemic customer service problems and adjust
policies and procedures to improve service quality
3.4 Develop, document and communicate new approaches to
customer service to staff involved in service delivery
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Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the
performance criteria that are required for competent performance.

Reading skills to:

➢ Interpret customer service surveys and unfamiliar complex documents on current industry
trends and changes that affect service delivery
➢ Research customer service requirements

Writing skills to:

➢ Produce comprehensive yet easily accessible policies and procedures that provide service
expectations

Oral communication skills to:

➢ Discuss customer service needs with staff and customers

Numeracy skills to:

➢ Calculate and interpret customer satisfaction statistics and business performance data

Learning skills to:

➢ Contribute to change management in workplace customer service

Problem-solving skills to:

➢ Allow for a rational and logical evaluation of the characteristics and needs of the organisation in
order to design tailored customer service practices

Planning and organising skills to:

➢ Plan for, establish and regularly monitor all components of the customer service system

Self-management skills to:

➢ Take responsibility for customer service outcomes

Technology skills to:

➢ Use software to analyse customer satisfaction data

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Assessment Requirements
Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in
the context of the job role, and:

➢ Research and develop customer service policies and procedures for at least three different areas of
the business that meet industry standards
➢ Implement and monitor practices for quality customer service in line with above policies and
procedures over four service periods
➢ Evaluate practices for quality service provision and identify any failings
➢ Review policies and procedures, adjust as necessary, and communicate any new practices to staff.

Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria
of this unit:

➢ Principles of quality customer service

➢ Specific industry sector:
o professional service standards for service industry personnel
o attitudes and attributes expected by the service industries to work with customers
➢ Roles and responsibilities of management, supervisors and operational personnel in providing
quality service
➢ Sources of information on current service trends and changes that affect service delivery
➢ Internal and external environmental changes and their effect on planning for quality customer
service:
o changes in the competitive environment
o economic climate
o introduction of new technologies or equipment
o management changes and organisational restructures
o recruitment practices
o trends in customer service preferences
➢ Methods of formal and informal customer research:
o analysis of competitive environment and industry service trends
o customer service surveys
o customer focus groups
o qualitative or quantitative research
o seeking feedback from service delivery colleagues
o questioning customers
➢ Methods of implementing quality service provision:
o developing, implementing and monitoring customer service policies and procedures
o involving staff in the development of customer service practices
o evaluating staff and customer feedback
➢ Methods of assessing the effectiveness of customer service practices:
o examining overall business performance
o monitoring the ongoing effectiveness of:
▪ staff in meeting customer service standards
▪ policies and procedures in explaining practices
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o reviewing numbers and nature of:

▪ complaints
▪ disputes
▪ responses of customers
o reviewing customer satisfaction survey statistics
➢ Methods of obtaining feedback from customers:
o customer service discussions with employees during the course of each business day
o discussions with customers
o formal customer interviews
o regular staff meetings that involve service discussions
o seeking staff suggestions for content of customer service policies and procedures
o surveys of internal customers, external customers and staff
o improvements suggested by:
▪ customers involved in complaints or disputes
▪ suppliers
▪ staff, supervisors and managers
➢ Industry schemes, accreditation schemes and codes of conduct aimed at improving customer
service
➢ Areas where organisational policies and procedures assist in ensuring quality customer service:
o acknowledging and greeting customers
o complaint and dispute management
o authority for different level personnel to resolve complaints, disputes, service issues and
customer compensation
o loyalty programs
o presentation standards for customer environment and customer service personnel
o pricing and service guarantees
o product quality
o refunds and cancellation fees
o response times
o staff training for:
▪ customer service
▪ technical skills
➢ Objectives, components and comprehensive details of consumer protection laws that relate to
customer service, and the business’ responsibility for:
o nominating and charging cancellation fees
o providing information on potential price increases
o providing refunds
o supplying products as described or substituting suitable products when unable
o formats for and content of policies and procedures.
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Assessment Conditions

Skills must be demonstrated in an operational business environment for which tailored customer
service practices are required. This can be:

➢ An industry workplace
➢ A simulated industry environment.

Assessment must ensure access to:

➢ Current plain English regulatory documents distributed by government consumer protection

regulators
➢ Codes of practice and standards for customer service issued by industry groups
➢ Sources of information on customer needs, complaints and feedback
➢ Customer surveys and feedback collection tools and templates
➢ Team members with whom the individual can interact; these can be:
o staff in an industry workplace during the assessment process; or
o individuals who participate in role plays or simulated activities, set up for the purpose of
assessment, in a simulated industry environment operated within a training organisation.

Links

Companion Volume Implementation Guide: - http://www.serviceskills.com.au/resources

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1. Develop quality customer service practices

1.1. Obtain information on customer needs, expectations and satisfaction levels using both formal
and informal research

1.2. Provide opportunities for customers and staff to give feedback on products and services

1.3. Review changes in internal and external environments and integrate findings into planning for
quality service

1.4. Provide opportunities for staff to participate in development of customer service practices

1.5. Develop policies and procedures for quality service provision

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1.1 – Obtain information on customer needs, expectations and satisfaction

levels using both formal and informal research

Importance of customer service

Customer service can be described as the service provided to customers throughout the process of
purchasing and using goods and facilities. A positive customer service experience is characterised by
staff members being able to meet the expectations of the customer, adjusting themselves to the needs
of the individual as required.

Being proactive in developing and managing your company’s

customer service is crucial for a number of reasons. A positive
experience is likely to make customers want to return to your
service. However if they have been treated poorly, it is
improbable that they will return. Customer service can reflect
heavily on people’s perspectives of the entire organisation, so it
is therefore vital that they build a positive rather than negative
outlook during their interactions with employees.

Customer service and sales

The time and effort spent by businesses developing their customer service approach can have positive
implications on sales levels. Customers are the most important aspect for the wide majority of
businesses; without them, it is not possible to sell your product or service and cash flow will be non-
existent. For those who are impressed with the treatment they have received though, they might be
inclined to recommend your products and services to others, therefore helping to increase customer
numbers and sales. Additionally, good customer service provides you with an innovative marketing
angle. You can highlight it in your advertisements which can help to attract customers.

Information within this unit is directed at those working within organisation of all sizes, and will have a
predominant focus on the fields of tourism, travel, hospitality and events.

Obtaining information on customers

In order to establish what quality customer service entails for a particular organisation, it is firstly
important to establish the needs and expectations of their customers. This can take place through a
number of different research methods. Remember that each research method has its strengths and
weakness, and you should refrain from basing your findings on one method alone. Utilising a range of
formal and informal research methods should provide you with an accurate picture of customer
expectations, needs and satisfaction levels.

Qualitative or quantitative research

Qualitative research refers to the collection of data based on subjective opinions and reasons.
Quantitative research refers to the generation of numerical data that can be turned into usable
statistics. You will need to make a decision as to which method of research is required, or whether a
mixed methods approach is most appropriate.

Generally, quantitative research can help to answer the following questions: how many, who, and how
often? Qualitative research on the other hand tends to answer who and why questions.
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Analysis of competitive environment and industry service trends

It is likely that your business operates in a competitive environment and does not control the entire
market share in terms of customers and sales within a particular area. For managers working within
organisations of all sizes then, it is crucial to analyse the service your competitors provide and trends
within the wider market.

You might decide to establish the following about competitors:

➢ What actions have they taken to improve their customer service?

➢ Do they have processes in place to manage and monitor their customer service?

➢ What share of the market do they hold?

➢ Is there anything your competitors are doing that could be applied to your organisation
to improve customer satisfaction?

Finding out this information is not always straightforward. There are companies with a share of the
market place who will not want to share information with their competitors, and may even try and
withhold information. It can be beneficial to start with a simple internet search and visit to the website
of your competitors. However, while this may provide details about their products or services and
direction, further research will be required to assess their approaches to customer service and
improving customer satisfaction.

Further actions to keep on track of competitors:

➢ Watch their social network activity - for example to see
how they are interacting with their followers and
whether they are potentially attracting some of your own
customers through offers and deals

➢ Speak to your customers – this is an often overlooked

method of gaining information on competitors. It could
take place through face-to-face discussion or through focus groups. If you have
attracted a new customer, you might for example ask people what it was that led them
to your company and why they were dissatisfied with another company. This
information could then be applied to customer service management as you may
discover actions to avoid

➢ Visit your competitors directly – you might decide it is beneficial to attend an event
held by your competitors or utilise their services if you feel that it will help to gain an
insight into their customer service approach

➢ Hire your competition – it can be useful to hire employees that have worked for your
competitors in the past. This could provide information about how to develop and
monitor competition.
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Customer service surveys

Surveys can be designed to question customers about their needs, expectations and satisfaction levels.

Examples of surveys that you could use include:

➢ Personal interviews – questioning takes place face-to-face, with the interviewer usually
asking the customer questions from a set list and writing down the answers. This can
be useful when asking an individual about an experience they have just had, such as
dealing with an employee, as the experience is fresh in their memory. However, it is
usually not possible to gain detailed responses and some customers may provide
answers that they feel the interviewer wants to hear, such as by not criticising the
customer service

➢ Postal surveys – this method may involve handing surveys to customers and asking for
them to be returned by post or sending the surveys directly to their addresses.
Although you may be able to send surveys to a wide array of customers, response rates
are typically low, and you therefore cannot be sure that responses are representative
of the wider customer base. Offering gifts or entries into a competition is a method
used by many businesses to attempt to increase the response rate

➢ Telephone interviews – contacting past or existing

customers by telephone usually leads to a higher
response rate than postal surveys. However, many
people decide to ignore phone calls or may be
unwilling to provide responses, so there may still be
an issue with representativeness

➢ Internet surveys – response rates are normally

higher with internet surveys and they are relatively
cheap to administer. You might not always have
contact details for customers to complete an online
questionnaire though, and it is not possible to ask
the sort of follow up questions that can be asked in
face-to-face interviews.

Customer focus groups

A focus group is a method of qualitative research whereby participants are questioned about their
perceptions, expectations, or needs regarding a particular topic, product or service. Conducting a focus
group enables respondents to expand on each other’s answers, potentially providing more detail than
individual interviews.

There are three main problems with focus groups that the interviewer must control:
➢ Preventing one person from dominating the group, for example if an individual
continually interrupts others

➢ Encouraging reluctant respondents to contribute

➢ Not obtaining answers from the entire group for each question; you should ensure the
fullest coverage of the topic.
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A further issue with conducting a focus group is that it can be

difficult to transcribe as participants can speak
simultaneously, making parts of the recorded discussion
becoming inaudible. Such information can provide useful
information about conflicting views between customers, so
participants should be asked to not speak over each other.

If conducted by an interviewer who can lead the discussion

though and manage these difficulties, focus groups can provide companies with an opportunity to
gather in-depth detail about what expectations customers have in relation to products and customer
service and their current satisfaction levels.

Seeking feedback from service delivery colleagues

In the course of work, it is likely that employees will pick up upon strengths and weakness of the
customer service methods of their colleagues. This might for example be if colleagues are dealing with
customers in close to proximity to each other, or if more than one employee is speaking to a customer
at the same time.

Meetings could take place where feedback is passed on to employees about how they could improve
their customer service approach or individuals could ask their colleagues for feedback when they feel it
is necessary.

Employees will usually be aware if customers have made complaints or have been dissatisfied with the
service, so regularly questioning employees can help to identify any issues.

Questioning customers
Speaking with customers has been highlighted as a vital method in obtaining information about their
needs, expectations and satisfaction levels. You could for example speak to them face-to-face at the
location of your business or where you are holding an event, through postal, telephone, or online
surveys, or in focus groups.
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Customer needs and expectations

Customer needs and expectations may refer to how they expect to be treated as a customer and what
they will gain from choosing your organisation over competitors. The majority of customers within
hospitality, tourism, travel and events industries have the expectation of being treated courteously,
with particular attention paid to employees who can help people with any issues or questions they
have. Depending on the type of situation where customers encounter employees, additional needs and
expectations can arise.

Common customer needs and expectations include:

➢ Friendliness – speaking politely to customers and greeting them upon the start of a
conversation

➢ Empathy – the ability to understand and appreciate the circumstances of the customer
by placing yourself in their shoes

➢ Fairness – being able to treat all customers with the same level of respect, regardless
of their circumstances

➢ Clear instructions and information – the ability to provide the customer with the
information that they are seeking

➢ Options and alternatives – when the needs of the customer cannot be immediately
met, it is important to provide them with alternatives.

In relation to satisfaction levels of customers, this refers to how pleased they have been with the service
provided by your business. When employees have met the needs and expectations of the customer,
their satisfaction levels should be much higher than if their needs are not met.
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Activity 1A
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1.2 – Provide opportunities for customers and staff to give feedback on

products and services

Provide opportunities for feedback

It is essential to receive feedback from customers about your products and services for a number of
reasons.

This information is important for the following reasons:

➢ Hearing feedback from your customers can enable you to improve on products or
services. It lets you know whether people want to buy your products or whether they
are happy with what they bought
➢ Feedback can help you if you are developing a product
➢ It allows you to measure customer satisfaction
➢ It enables you to improve experiences in the future, making it easier to retain
customers
➢ It can provide you with useful business data.
Additionally, seeking the opinions of your customers shows that
you care about their thoughts and may make them feel more
involved within the business. If you take actions based on the
advice provided by customers, they can feel even more
significant to the company.

Methods of obtaining feedback from customers

Seeking feedback about products from customers may include:
➢ Discussions with customers – discussions could take place with customers informally,
such as asking them for their opinion at the location of your workplace, or after they
have purchased a product or service
➢ Formal customer interviews – you may also decide to organise more formal interviews
with your customers to ask for their thoughts on a range of factors about products and
services.
If the feedback you are getting is on a product, there are different characteristics that you should gather
information on in comparison to gaining feedback on a service.

The key features you may need to get feedback on for a product includes:
➢ Reliability
➢ Convenience of use
➢ Aesthetic qualities
➢ Durability
➢ Safety
➢ Price.
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Staff feedback
Gaining feedback from staff
It is important not to forget to consult with staff members when seeking feedback about products and
services. Employees on the front line will have detailed knowledge about the goods or services being
provided by your organisation, and are likely to have their own opinions about which goods and services
are of good quality and which are not. Furthermore, staff will regularly receive feedback from
customers such as compliments about products and services, as well as issues and complaints, so they
should be able to provide an insight into the thoughts of customers. This can be especially useful when
widespread customer feedback is not available.

Regular staff meetings that involve service discussions

A useful opportunity to discuss service and product quality
among staff members is at meetings. The regularity of
meetings will vary depending on the type and size of
organisation. You might decide to ask employees to discuss
any issues that have been brought forward by customers
and the reasons they provided for their dissatisfaction. Any
instances of positive comments from customers should also
be reported.

If working in a large organisation where there are not meetings between all employees, it might be
useful to have smaller meetings between staff and a supervisor or team leader. From there, the team
leader or supervisor can report back examples of customer feedback to senior employees.

Surveys of internal customers, external customers and staff

A distinction should be made between the types of customers you are aiming to gain feedback from; the
needs and expectations of internal and external customers will be quite different and they will therefore
require various methods of customer service.

External customers are those that are usually thought of when using the term ‘customer;’ they are
those that come from outside the business to visit attractions, use services and buy products. External
customers are vital to the success of the business, as they are usually the main source of revenue
through purchases. Such customers can come from many avenues, such as individuals who directly
come to the place of business to buy products or services, and people who make transactions to your
organisation online.

Internal customers on the other hand are those that work within the internal departments of your
organisation or rely on the product or service that you are responsible for supplying. Individuals who
can be classified as internal customers will vary depending on the type of industry you work in.
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Examples of internal customers in a hospitality setting:

➢ Managers

➢ Suppliers

➢ Chefs

➢ Waiters

➢ Receptionists

➢ Cleaners

➢ Marketing officers.

With external customers, surveys can take place in similar methods to those discussed in section 1.1.
For example, questions can be administered face-to-face, through postal, telephone, or online surveys,
and in focus groups.

With internal customers, questions can be selected based on the type of individual and their role within
the organisation. Taking the example hospitality again, the type of survey you would administer to a
chef would be different to that provided to a receptionist; they work within different areas and are
likely to have greatly varying experiences in terms of interaction with external customers.

Suggesting product improvements

A key focus of gaining feedback from both external and internal
customers should be to develop improvements in your delivery
of products and services.

Customers involved in complaints or disputes

All complaints or disputes involving customers should lead to a
process of considering whether changes need to be made. Is the
customer correct? Is there an issue that other customers will not find acceptable and therefore needs to
be changed?

Of course there will be situations where complaints have been made where no changes are required,
such as if the problem was a one off with a particular service or if you feel the complaint was not
justified. Even in such situations, the complaint should be reviewed by relevant individuals and attempts
for improvement should be made.

Suppliers
Your suppliers are important stakeholders that you should listen to about improving products. This may
be in relation to the type and quality of goods you want them to supply to your business, or you might
enter into discussions about changing the specifications of goods in response to other feedback and
demand.
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Staff, supervisors and managers

As mentioned previously, successful companies within the tourism, travel, hospitality and events
industries work most effectively when there is a culture of continuous improvement amongst all
workers. Senior managers and supervisors should not be critical of employees who highlight an aspect
of a product or service that could be improved or has been criticised by customers, and should instead
promote such behaviour.

Methods of suggesting improvement could include:

➢ At meetings or briefings

➢ Through e-mail

➢ On a company noticeboard

➢ In written format through a suggestions box

➢ Through face-to-face conversations.

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Activity 1B
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1.3 – Review changes in internal and external environments and integrate

findings into planning for quality service

Changes to internal environment

The environment both inside and outside of organisations in tourism, hospitality, travel and events
industries is rarely static. Changes occur frequently that mean managers have to adopt their approach
to service delivery or alter the type of products being sold. The key issue is whether change has been
foreseen by the company and planned for accordingly. When planning for a quality level of service, you
need to be aware of significant changes to the internal and external environment, many of which are
detailed below.

Management changes and organisational restructures

Variations to the management positions and organisational restructures can occur for a wide range of
reasons.

For example:
➢ If there is a vast growth in sales, new management structures may be required with
new divisions or departments

➢ If a service suddenly becomes very popular

➢ The merging or amalgamation of two firms

➢ The promotion or downgrading in role of individuals.

In all of these situations, the structure of the organisation is

likely to change and with this comes the potential of changes
to culture. Corporate culture refers to the unwritten code that
impacts on the attitudes and behaviour of employees, and
approaches to decision making. Alterations to management
structure can therefore have implications on the quality of the
service provided. When new individuals take on roles within
senior management positions, policies and procedures in relation to customer service will need to be
assessed and altered if necessary. A new manager may for example want to revise the company’s
approach towards response times when a customer makes an enquiry.

Recruitment practices
One of the crucial aspects of developing and improving your customer service comes through the
recruitment process. Rather than hiring individuals without a regard for how they will interact with
members of the public, you need to keep their communication skills in mind as this will ultimately lead
to better relations with customers and less of a need for training.
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You may consider the following when assessing potential employees:

➢ Does the person have a positive attitude?

➢ Can you identify empathy in the voice of the person?

➢ Have they maintained a job role in the past for a reasonable length of time?

➢ Do they make good eye contact?

➢ Can the candidate demonstrate high attention to detail?

Another decision that may need to be made when developing quality service is whether internal
recruitment is sufficient or if external recruitment is required. Internal recruitment is the act of filling
vacancies by selecting an individual who already works within the business, while external recruitment
is the hiring of an individual from outside the organisation.

Advantages of internal recruitment include:

➢ The abilities of the employee will already be known

➢ It can help to motivate existing employees

➢ The recruitment process is shorter

➢ It is less expensive

➢ An induction period will be shorter or may not be required.

However, if the business is going through growth, internal promotion will simply leave another position
vacant further down the hierarchy. A recruitment drive might be required if the business intends to
build its workforce numbers to account for increases in demand.

Advantages of external recruitment include:

➢ It usually provides a large number of candidates
to choose from

➢ New employees can invigorate the existing

workforce by providing fresh ideas

➢ It can prevent conflict within departments when

one member of staff is promoted over others

➢ It can potentially provide an insight into competitors if the recruits have worked in the
same industry in the past.

Changes to the external environment

External change is normally more difficult to control as it refers to changes within the market and
consumer preference. Nevertheless, you need to prepare contingency plans for such alterations and
decide how your service approaches may have to adapt.
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Changes in the competitive environment

The competitive environment may refer to if you are experiencing increased competition, such as if new
businesses are joining the industry, or if one of your competitors is taking an increasing share of the
market.

Using the methods set out in section 1.1, think about how you can assess the competitor and ensure
that you can retain your own customers. What have they done to increase sales and what actions could
you take to implement similar strategies?

Trends in customer service preferences

It is vital to keep on top of customer preferences. This may be in relation to both their expectations
from a product or service or their needs when communicating with employees.

In terms of product or service preferences, you may need to alter the goods available to purchase in
order to maintain customer satisfaction. For example, if you are running or events or work in hospitality,
it is a good idea to continually look for ways to improve the food and drink available. Utilise feedback
from surveys or wider market surveys to assess what is currently popular, or what people prefer to eat
and drink at certain times of year. Similarly, if you are running a tourist based business, what are the
major attractions or activities that people are interesting in seeing or undertaking? If you are unaware
of what is popular and cannot provide people with their desires, then you are likely to lose business to
your competitors.

The level of customer service that individuals are expected to receive rarely alters over time; they
expect to receive a high level of service and to be treated with expectations set out in section 1.1, such
as respect and empathy.

However, changes to preferences may include for example the type of feedback that people expect to
receive from queries or complaints. With the use of social media becoming a more prominent source of
communication between customers and business, the expected response time has shortened in
comparison to traditional routes of communication such as e-mails or letters.

Economic climate
The economic climate at any given time will play a large part in the service
provided by an organisation. Generally, during periods of growth people are more
willing to spend money on the fields of tourism, travel, hospitality and events, and
this will impact on the service delivery. Similarly, during times of austerity you may
notice a downturn in income, and actions will have to be taken to minimise costs
and limit waste.

If there is a change in the economy whereby spending decreases, then depending on your product
and/or service, you may find that your customers no longer purchase your product. This downturn in
spending shall be reflected in your allocated budget. If there is a decrease in the demand for your
product, then you will no longer need to supply as many, thus your budget will usually shrink. Financial
information found in financial reports such as the profit and loss statement will demonstrate when
there is a decrease in profits.

Depending on the size and function of your organisation, the financial information that you keep will
vary.
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However, financial information that you may need to monitor could include:
➢ Budgets

➢ Ratio analysis

➢ Budget forecasts

➢ Cash flow statements

➢ Profit and loss statement

➢ Balance sheets

➢ Investment and liability reports.

When reviewing financial information, as with any other sort of reviewing, it is important to identify the
variations in the reports and then try to identify the causes of these variations. It is only when you
identify the causes of the variations that you will be able to identify how to correct the variations and
alter your service delivery.

Introduction of new technologies or equipment

The introduction of new technologies or equipment into the marketplace should be kept in mind during
your workplace meetings. On the one hand, technologies can provide the benefit of speeding up the
communication time between customers and the business, such as through social media or ‘live chats’
from the organisation website, which can increase customer satisfaction. On the other hand, removing
service provisions involving members of the public actually speaking to employees is not always desired
as people can feel more assured hearing a real person who can alleviate their concerns.

If you believe new technologies can heighten the customer experience when dealing with your business,
then utilising the advancements is recommended, however it is best to weigh up the advantages and
disadvantages before changing your delivery methods.

Consider the following before introducing new technologies:

➢ Is the new technology compatible with existing technologies?

➢ How will the workforce react to the changes?

➢ Will there be any difficulties caused in the changeover from old to new technologies?

➢ What are the short term and long term financial implications of the technologies?

➢ What training will employees require to use the equipment?

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Activity 1C
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1.4 – Provide opportunities for staff to participate in development of customer

service practices

Involving staff in development of practices

Organisations that are most successful at customer service practices generally include staff members
throughout the process of developing customer service. Regular staff members are more likely to come
into contact with customers on a regular basis compared to managers, supervisors and directors, so
they should play a central role in developing policies and procedures.

It is important not to be overly critical of staff members when they highlight cases where customers
have complained to them in the past. Instead, a mentality of continuous improvement should exist
whereby all members of staff attempt to develop the quality of service provided.

Meetings
You could organise meetings at regular intervals to both
seek and provide feedback to employees about
customer service. This might be the primary focus of the
meetings or customer service could be highlighted as
part of general workplace meetings.

Within such meetings it would be worthwhile for staff

members to provide each other with feedback, such as
if they could make a greater effort to respond to
customer queries within a short space of time. Any
customer complaints in relation to the service provided could also be brought forward, including how to
avoid such situations occurring again in the future and how staff members can rectify any issues with
customer service prior to a complaint being made.

If the same issues are being brought forward among a number of staff members, then there may be an
overarching issue within the business that needs to be rectified. This could range from the pricing of
goods or services, the quality of goods or services, or the quality of customer service.

Situations where staff members can be included in the development of practices include:
➢ The development of staff training

➢ Discussion about customer services in meetings

➢ Speaking individually to staff members about how to improve customer services

➢ Asking for feedback when creating new policies and procedures.

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Activity 1D
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1.5 – Develop policies and procedures for quality service provision

Developing policies and procedures

It has been highlighted that identifying the needs and expectations of customers and introducing
methods to continually improve the service delivery approaches of staff members is crucial in running a
successful business within the tourism, travel, hospitality and events industries. However, simply
identifying how customers want to be treated and ways of improving employee skills does not always
correspond into professional service. You may find it useful then to introduce policies and procedures
that staff members should abide by.

It is important to distinguish between policies and procedures within your workplace.

Policies
Policies refer to statements that are normally short and clear, regarding how your organisation intends
to conduct its services and actions. Policies therefore summarize why actions are taken, incorporating
any regulatory requirements. A policy for each area does not need to be more than a few sentences,
and they act as a guiding mechanism for decision making with companies.

Procedures
Procedures are more detailed, and highlight how policies will be put into action within your
organisation. They can be set out in a list or a series of steps that ought to be taken in order to put
policies into place.

Steps may include:

➢ Who will do what?

➢ What actions they need to take?

➢ When will the action be taken?

➢ What equipment or resources are needed?

Policies may exist within your organisation based on a number of different things. This could range for
example from greeting customers upon the point of first contact to when responding to customer
queries and complaints.

Consider the following when developing policies and procedures:

➢ Current workplace policies and procedures

➢ Feedback from staff members

➢ Feedback from customers

➢ Policies and procedures implemented by competitors

➢ Regulatory requirements related to your industry.

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Examples of policies and procedures

Policies and procedures may be created in relation to the following:
➢ Acknowledging and greeting customers

➢ Complaint and dispute management

➢ Authority for different level personnel to resolve

complaints, disputes, service issues and customer
compensation

➢ Loyalty programs

➢ Presentation standards for customer environment and

customer service personnel

➢ Pricing and service guarantees

➢ Product quality

➢ Refunds and cancellation fees

➢ Response times.

Legal requirements
When developing new workplace policies and procedures, it is necessary to consider relevant consumer
protection laws. The following are examples of legal requirements that many organisations must abide
by.

Australian Direct Marketing Association (ADMA) Direct Marketing Code of Practice

The ADMA Direct Marketing Code of Practice governs how organisations who market directly to their
customers do so and provides protection for their customers, in terms of legal entitlements and the
resolution of any problems that may occur.

The ADMA website provides this explanation of the Direct Marketing Codes of Practice;

“The ADMA Code of Practice was developed to set standards of conduct for direct marketers, minimise
the risk of breaching legislation, promote a culture of best practice, serve as a benchmark in settling
disputes and increase business and consumer confidence in doing business with ADMA members who
are bound to the provisions of the Code.” (30/05/2016)

Australian E-commerce Best Practice Model

This best practice model provides a benchmark that e-businesses should endeavour to achieve, in terms
of serving their customers’ best interests.

The treasury.gov.au website provides this overview of the Australian E-Commerce Best Practice Model;

“The Australian E-commerce Best Practice Model sets standards for consumer protection in e-commerce.
It provides industry groups and individual businesses with a voluntary model code of conduct for dealing
with consumers online, which is underpinned in several areas by legislative requirements.” (30/05/2016)
 P a g e | 31

Australian Government Policy Framework for Consumer Protection in Electronic Commerce

Consumer Protection in Electronic Commerce is designed to provide consumer protection for people
who make purchases online and online businesses.

The policy requires:

➢ Accurate and sufficient information is provided about
the product

➢ A secure payment process

➢ The availability and provision of effective and accessible

redress

➢ Agreement upon relevant areas of jurisdiction

➢ That customer information is protected and remains private.

Confidentiality requirements and privacy laws

The main aspect of confidentiality requirements is The Privacy Act. This is an Australian law that came
into force in 1988 and governs how organisations handle personal information about people, whether
staff, clients or customers, etc.
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Activity 1E
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2. Manage delivery of quality service

2.1. Communicate policies, procedures and expectations to staff

2.2. Make policies readily available to customers and staff

2.3. Monitor customer service in the workplace to ensure standards are met

2.4. Initiate staff training to enhance customer service

2.5. Take responsibility for service outcomes and dispute resolution

2.6. Act as a positive role model for professional standards expected of service industry personnel
 P a g e | 34

2.1 – Communicate policies, procedures and expectations to staff

2.2 – Make policies readily available to customers and staff
Communicating to staff
Once a range of policies and procedures have been developed to develop the levels of customer service
within your organisation, the next step is to communicate them to all relevant stakeholders. The most
significant stakeholder to inform the changes to is staff members, as they are the ones who are
generally responsible for interacting with customers. It may also be useful to inform others of changes
though, such as supervisors, managers, and directors, who will be interested in the ongoing
development of the company.

Methods of communicating to staff members include:

➢ Speaking to employees individually

➢ In group meetings or briefings

➢ Through e-mail

➢ In letters or notes.

Speaking to employees individually

This approach is most appropriate if you work in a small organisation where it will not take too long to
speak to all staff members individually. The benefit of this method is that you can speak to individuals
and relate policies and procedures to their specific work role, informing them of what they are expected
to do when dealing with customers and time frames for dealing with certain scenarios. A further benefit
of this method is that workers may be more inclined to clarify aspects of policies, procedures and
expectations in comparison to when in groups settings.

In larger organisations you may decide it would be time-consuming to speak to everyone individually,
and therefore communicating policies could take place in small or large groups.

In group meetings or briefings

Communicating policies, procedures and expectations can take place in group meetings or briefings as a
time-saving approach. This can be beneficial when the information being communicated applies to a
number of people.

If there are different groups of employees with varying expectations, it could still be useful for them to
listen to policies for other employees.

This could be useful because:

➢ It enables staff members to realise the expectations of colleagues, making it easier to
provide them with constructive feedback

➢ Some employees may change job roles or be asked to support another member of staff
in a role they are not accustomed to, thus making the transferral process easier

➢ A customer may ask a member of staff a question that is outside of their usual job role,
so they will have some knowledge of the correct procedures for response.
 P a g e | 35

A potential drawback of this method is that staff members may feel reluctant to question the details in
front of others, particularly in a large group. Additionally, you may have to organise a number of
meeting to communicate policy changes to take account of different working times of employees.

Through e-mail
Sending employees an e-mail documenting changes to customer service practices can overcome issues
in relation to individuals being absent from the meeting, as all workers will receive the e-mail. However,
not all workers may take notice of the e-mail, especially if they feel it is not specifically directed at them.
To overcome this, you could ensure that employees see the e-mail as being significant, either by writing
so in the subject bar or by clicking on a button that places the message under high importance, usually
resulting in a red flag or explanation mark appearing by the
message.

E-mails are perhaps most effective in addition to speaking to

employees, as they can refer back to any details they were
unclear about or have forgotten at a later time.

Making policies available

You need to make sure that all policies and procedures are documented in a way that is readily available
to both staff and customers.You might for example document all policies on your website, although this
comes with the threat that competitors may attempt to copy and apply your policies to their own
company.

Alternatively, staff members could log into the business’s intranet to view aspects of policy, or they
could be printed out and left at appropriate places around the workplace. Customers who are
interested in viewing customer service procedures could do so by asking at an information desk, if one is
available.

When documenting policies, procedures and expectations, remember the following:

➢ Make sure that they are understood by those using them

➢ Ensure that any writing, tables or diagrams are legible

➢ Confirm that there are no mistakes in the documents

➢ Encourage staff and customers to suggest any changes to the policies and procedures
in order to heighten customer satisfaction.
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Activity 2A
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2.3 – Monitor customer service in the workplace to ensure standards are met

Monitoring customer service

Frequently monitoring and looking for methods to improve customer service can help a business
achieve the expectations of its customers and remain profitable. There are multiple methods of
monitoring customer service for you to choose from, some of which are highlighted below.

Meetings
As mentioned previously, meetings can provide a useful opportunity to reflect on customer service
levels. Individuals should be comfortable with reviewing their own performance and may also be able to
make comments about their colleagues. Constructive feedback should be encouraged as this can help to
improve communication levels with customers.

Reviewing written correspondence

Any forms of communication to customers that involve writing could be
reviewed. This might include letters, e-mails, social media communication or
live chat records. You should let your employees know that such information
may be monitored, and either weekly or monthly, the data should be assessed
to establish if customer service is to the required standard.

Monitoring phone calls

Similar to checking written correspondence, you may also have the resources available to listen back to
a certain number of phone calls involving staff members and the public. You could for example listen
back to a few calls from each operator or more if you are a smaller organisation.

Aspects of phone calls to monitor include:

➢ The greeting, which should be consistent across the organisation to increase
professionalism

➢ Providing an identification

➢ Clarifying what it is the customer wants

➢ Providing a competent response

➢ Detailing how the query or request will be responded to

➢ A polite closing of the call.

If enough time is available, you should have a discussion with all staff members who are responsible for
speaking to customers about their performance and how they could improve. If this is not possible, a
wider meeting ought to take place where the most common issues are highlighted.
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Hiring a ‘quality inspector’

A further action that could be taken to monitor customer service is to hire an individual to take on the
role of ‘quality inspector’, who takes on the role of assessing customer service and ensuring that policies
and procedures are being met.

Benefits of having a quality inspector include:

➢ They will have a detailed knowledge of customer service skills and experience of
suggesting areas for improvement

➢ They can prevent unsatisfactory customer service

going unnoticed

➢ It can alleviate the issue of employees not bringing

forward issues with either their own customer service
skills or those of colleagues

➢ Inspectors may notice common problems and could

discuss them at team meetings or organise
appropriate training.

Potential drawbacks of a quality inspector

The idea that an individual should have the responsibility of inspecting customer service in the
workplace is potentially problematic. Firstly, by placing the responsibility on an external inspector or on
a single individual within the workplace, it does little to encourage workers to consider and improve
their own performance. Additionally, hiring an inspector or providing an existing staff member with the
role of assessing customer service could be deemed as unnecessary and costly if customer service was
of high quality in the first place or if an organisation wide customer service campaign existed. Providing
workers with responsibility for their own work and giving them opportunities to deliver feedback
regarding their performance can help to increase motivation and a sense of team effort.

Nevertheless, the inspector could perform some of the role mentioned above, such as monitoring
written communication and phone calls with customers as well as suppliers and other businesses.

Other methods of assessing customer service

Asking customers for feedback
Similar to the communications with customers mentioned in relation to seeking feedback about the
quality of goods and services in section 1.2, you could again ask customers for feedback at different
intervals after new policies have been implemented.

This could take place:

➢ Casually after a transaction has taken place or a service has been used

➢ Through a customer call with a list of questions to ask

➢ By asking customers to complete a questionnaire at the location of the business.

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Utilising mystery customers

Many organisations place individuals to carry out transactions or use their service and then report back
on the level of service they received. The person using the company’s services should not be known to
the staff members and will provide the advantage of knowing what customer service traits to look out
for prior to their communication with employees.

Looking at complaints
Assessing the numbers and types of complaints that your company has received can act as a useful
point of information for customer service levels. You should record the average number of complaints
prior to new policies being introduced and check to see whether there has been an impact on complaint
levels at certain periods afterwards. Be careful not to automatically view an increase in complaints as a
sign that customer service levels have dropped though. Complaints could be in relation to the quality of
the product provided rather than customer service. Furthermore, if you experience a large increase in
customer numbers, you might experience an increase in complaints even though average number of
complaints per customer has remained the same or fallen.
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Activity 2B
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2.4 – Initiate staff training to enhance customer service

Staff Training
Improving sales or production might require an increase in the customer service skills of your staff. A
number of options exist that can help you to develop employees, and this may vary based on the size of
the organisation, the number of staff needing development, and the financial resources available. Ask
yourself what do you want to be achieved through development? Where are your staff at now and
where do you want them to be? Do you have the resources available to improve customer service skills
on site or is external development required?

Staff training usually focuses on either improving the overall customer service skills of employees or
helping them to develop technical skills, such as understanding how to make the most of new
technology or equipment.

Mentoring
Mentoring is a method that can be used within businesses to support professional development. This
usually takes place between two individuals, although the ‘mentor’ can have a number of ‘mentees’ at
any time. The person taking the role of mentor is normally an experienced individual who has a lot of
knowledge about the industry, such as if they have been working within the tourism industry for a
number of years. This person has the purpose of sharing their knowledge and advice with a less
experienced individual, or someone who has had difficulties with their communication with customers.

Mentoring does not necessarily have to take place over a long period of time, and can be seen as a cost-
effective method of improving your business by using existing employees to support development.

Internal training
Similar to mentoring as it takes place within the workplace,
internal training involves staff members taking part in activities
and sessions in groups to develop customer service skills.

One of the common yet beneficial activities that can take place
within group sessions is practicing active listening.

This involves developing the following:

➢ Clarification: being able to ask questions to ensure you understand a customer's ideas

➢ Paraphrasing: rephrasing what a customer has just said to confirm you understand
rather than acting on what you think they meant

➢ Reflecting feelings: using phrases to demonstrate you understand how the customer is
feeling; this shows empathy and that you're paying attention

➢ Summarising: concluding a conversation with a short summary of the most significant

aspects ensures that everyone is on the same page.

This could take place through employees taking on the roles of customer and staff member and
practicing situations where the customer requires assistance.
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A major benefit of internal training is that role plays and examples can be applied to the organisation of
the workers, whereas external training may apply to the industry on the whole. A disadvantage though
is that there may not be people within the business who have experience of delivering training or
designing a training schedule.

External training
A further opportunity for staff to participate in customer service development is through external
training, such as sending them to workshops or courses run by external agencies. The benefit of this
method is that the people running the course or workshop are likely to be experienced at training
people within customer service roles. They should have a detailed understanding of what it is that
customers look for when interacting with employees in a range of industries and the methods of
transferring these skills to workers.

However, external training may have the following drawbacks:

➢ The customer service skills may not be specific to the particular industry, for example
the communication skills required in hospitality may be different to those within an
events industry

➢ It can be expensive to send employees to a course or workshop, particular if a number

of individuals are being sent

➢ The time spent away from the workplace may result in reduced productivity.
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Activity 2C
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2.5 – Take responsibility for service outcomes and dispute resolution

2.6 – Act as a positive role model for professional standards expected of service
industry personnel

Taking responsibility
It has been made clear previously that all workers within an organisation have
the duty to deliver a high level of service and take account for their actions.
However, the majority of businesses will also have people in senior
management positions taking overall responsibility for service outcomes and
dispute resolution. Managers are likely to be responsible for the development
and administration of policies and procedures, so when they are ineffective, the
accountability should fall with a certain person or group of people, who can
then make appropriate resolutions.

Identifying responsibilities
The methods of declaring responsibilities for service outcomes and instances of disputes will vary
between different organisations and between industries. They may be stated in any policies and
procedures that have been developed. For example, a single manager or a number of managers may
take overall responsibility for inadequate customer service. Alternatively, a team leader might take the
blame if it has been found that a problem only exists within a certain group of employees. This will
depend on the size of organisations though.

A further method of declaring responsibilities is through individual job descriptions. There should be a
clear description stating what role the individual has in customer service and issue resolution.

Examples of responsibilities when resolving disputes:

➢ Passing information about complaints on to other members of staff

➢ Reporting complaints to senior management

➢ Actions for providing refunds

➢ Providing customers with alternate products or services when their preferred choice is
not available.
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Setting a positive example

The culture within a business in the tourism, travel, hospitality and events industries is often defined by
the leadership style of management personnel. While a range of policies can be introduced and training
sessions organised to improve staff customer service, without senior leaders setting a positive example
other workers are unlikely to be inspired to deliver the highest possible standard of service.

Acting as a positive role model for professional standards is important for the following reasons:
➢ It sets a standard for other works to follow

➢ Staff members often look to managers for inspiration

➢ It can help to build respect between staff lower down the hierarchy and managers
seeing as the managers are modelling the behaviour they are asking of others

➢ Customers can often take the behaviour of a manager or senior member of staff as a
representation of the entire organisation

➢ It can help workers to further appreciate the key aspects of quality customer service,
such as empathy, friendliness and fairness.
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Activity 2D
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3. Monitor and adjust customer service

3.1. Seek ongoing feedback from staff and customers to improve performance

3.2. Assess effectiveness of customer service practices

3.3. Identify systemic customer service problems and adjust policies and procedures to improve
service quality

3.4. Develop, document and communicate new approaches to customer service to staff involved in
service delivery
 P a g e | 48

3.1 – Seek ongoing feedback from staff and customers to improve performance

Seeking ongoing feedback

As stated previously, it is vital for you to gain feedback from both staff and customers regarding
customer service. This should take place both prior to new policies and procedures being introduced
and after they have been put in place.

Remember the policies and procedures mentioned in section 1.5 that you may need to gain ongoing
feedback about;

Policies and procedures may be created in relation to the following:

➢ Acknowledging and greeting customers

➢ Complaint and dispute management

➢ Authority for different level personnel to resolve complaints, disputes, service issues and
customer compensation

➢ Loyalty programs

➢ Presentation standards for customer environment and customer service personnel

➢ Pricing and service guarantees

➢ Product quality

➢ Refunds and cancellation fees

➢ Response times.

Staff
From the point of view of staff members, who are responsible for taking new polices and methods
learned through training into account when dealing with customers, you should aim to find out whether
they have noticed any differences.

For example, you could seek information on the following:

➢ The length of time it takes dealing with customers:

o during standard interaction

o after an inquiry is made

o following a complaint

o preparing customer environment

➢ Customer feedback they have received

➢ Job satisfaction.
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As when collecting information before policies and procedures are adapted or introduced, there are a
range of methods you can use to obtain feedback.

Examples of methods include:

➢ Regular staff meetings that involve service discussions

➢ Asking them in person

➢ Frequent e-mails

➢ Through quality inspectors.

Customers
Speaking to customers about any changes to service delivery is
even more important, and can act as a valuable approach for
gaining further areas to improve upon. The thoughts and opinions
could be sought at the business location, such as if they have just
used the service or have bought goods, or through a range of
survey methods. The key point to remember about carrying out
surveys is that the data needs to be valid, that is, does the data
collected about customer service truly reflect the opinions of
customers?

In order to maximise validity, you should gain feedback from a large range of customers using a sample
that takes a cross section of the population.

You may want to find out the following from customers:

➢ How would they rate different aspects of customer service?

➢ Have they noticed any differences in customer service over a given length of time?

➢ Do they feel that any complaints were handled appropriately?

➢ Were they satisfied with the response to any queries?

➢ Was the response time to complaints or queries acceptable?

➢ Have they been informed about pricing and service guarantees?

➢ Would they recommend the business to others?

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Activity 3A
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3.2 – Assess effectiveness of customer service practices

Assessing effectiveness of practices

Assessing the effectiveness of your customer service practices is something that should take place in an
ongoing basis. As mentioned in section 2.3, monitoring the effectiveness of policies can help a business
achieve the expectations of its customers and remain profitable.

The methods of measuring effectiveness are also similar to those discussed in section 2.3, and the
feedback highlighted in section 3.1 can also provide useful information when determining whether your
businesses policies are effective.

For example, effectiveness could be determined based on the following:

➢ Responses from staff:

o meetings

o individual conversations

o e-mail feedback

➢ Findings from quality supervisor

➢ Feedback from customer focus groups

➢ Data from customer surveys:

o in person

o online

o telephone

o postal

➢ Monitoring phone calls

➢ Reviewing written correspondence with customers

➢ Looking at sales figures

➢ Viewing customer complaints

➢ Benchmarking.

Successful companies will utilise a range of these methods in order to develop a detailed picture of the
quality of customer service being provided.
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Assessing data
After collating all of the data you have received and observing the results, it is important to be impartial
and strive for perfection. If for example you have collected customer feedback through surveys with
questions asking the respondents to rate the business on a variety of aspects from 1 to 10, then you
need to make a decision as to what is acceptable. If you received an average rating of 7 in regards to
product quality, would you view this as a success? Can you look at the results more closely and establish
which products in particular were rated highly and which were not? It is important to continually seek
more information so that your business practices can improve and you will stay above your competition.

Benchmarking
While the majority of the techniques mentioned to determine customer service
quality are based on the collection of data, you should also look to use
benchmarking. This is the process of observing the standards of other companies,
and comparing them to your own progress. It is best to focus on the companies
that hold the highest market share within your industry, as this will help you to
compete with the market leaders.

As mentioned in section 1.1, you could do the following to assess the practices of your competitors:
➢ Watch their social network activity - for example to see how they are interacting with
their followers and whether they are potentially attracting some of your own customers
through offers and deals
➢ Speak to your customers – this is an often overlooked method of gaining information
on competitors. It could take place through face-to-face discussion or through focus
groups. If you have attracted a new customer, you might for example ask people what it
was that led them to your company and why they were dissatisfied with another
company. This information could then be applied to customer service management as
you may discover actions to avoid
➢ Visit your competitors directly – you might decide it is beneficial to attend an event
held by your competitors or utilise their services if you feel that it will help to gain an
insight into their customer service approach
➢ Hire your competition – it can be useful to hire employees that have worked for your
competitors in the past. This could provide information about how to develop and
monitor competition.
If you feel that your business offers an exceptional level of customer service, and this has been
supported from feedback from staff and customers, as well as sales figures, then it might be possible to
seek accreditation for being a leader in customer service.

This could be offered by:

➢ Customer Service Institute of Australia
➢ Australian Customer Service Awards.
Such awards or accreditation can act as a useful marketing tool and may result in an even further
increase in customer numbers.
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Activity 3B
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3.3 – Identify systemic customer service problems and adjust policies and
procedures to improve service quality

Systemic customer service problems

Systemic customer service problems are usually referred to when an issue exists that is the result of
something wrong with the entire system rather than due to specific or individual mistakes. If a system
problem is identified within your organisation, you will need to change policies or procedures so that
the issue is alleviated.

Systemic errors in relation to customer service may involve:

➢ Faults with the website of the company, such as:

o users not being able to log in

o difficulties with ordering and/or booking

o issues with customers entering data, such as their address

o problems with cancellations

➢ Items continually being delivered to the wrong address

➢ Loyalty programs not being updated following purchases.

Even though employees who deal with customers on a regular basis have little bearing over these
technical issues, they can still greatly impact on the satisfaction of customers. Websites that fail to
operate correctly or goods not being received as intended can cause frustration and annoyance to
customers, and can result in them seeking alternative businesses.

As a result, it is crucial to identify systemic customer service problems and adjust your policies and
procedures as needed. Depending on the resources available to your organisation, it can be highly
beneficial to employ technicians who can promptly resolve technical issues that can impact on customer
service.
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Activity 3C
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3.4 – Develop, document and communicate new approaches to customer

service to staff involved in service delivery

Developing new approaches to customer service

Based on all the feedback you have received in relation to customer service delivery following the
implementation of new or revised policies and procedures, you may find it is necessary to develop new
approaches. Feedback and reviews might have found that your approach to customer service does not
meet the expectations of customers, and changes are required. Alternatively, you might find that your
competitors have taken customer service to another level by implementing new practices, and to
prevent falling behind in the market, you will need to revise your own approach.

Communicating new approaches to staff

Before you can expect staff involved in service delivery to start working following new approaches, you
will need to inform them about what they are and what changes they need to make in comparison to
their current approaches. This might take place in the form of a meeting or through individual
discussions. Also, if new approaches involve staff members using new technologies or equipment, they
might require internal or external training.

In addition to informing staff of what the new approaches are, you should let them know about the
following:
➢ Why there has been a need for alteration

➢ Data received from customer and staff feedback

➢ How any changes will impact on their role

➢ What training they will require to gain the skills needed to deliver new approaches.

Documenting new approaches

As highlighted in section 2.2, you need to make any new approaches or policies readily available to staff
members so that they can refer back to. Staff members could log into the business’s intranet to view
aspects of policy, or they could be printed out and left at appropriate places around the workplace.
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Activity 3D