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Describe with reference to different customer service functions, the different methods used to attract and retain customers for a selected service/product.

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UNIT 11 RELATIONSHIP MARKETING RIZWAN ZAID BTEC BUSINESS NATIONAL P4: Describe with reference to different customer service functions, the different methods used to attract and retain customers for a selected service/product. In this assignment, I will be describing the different methods that are used to attract and retain customers for a selected organisation. The organisation that I have chosen for this assignment is McDonalds. With reference, I will see how McDonalds retain their customers and describe the methods they use to retain customers. What is customer service? Customer service is the process in which an organisation tries to propel themselves according to their ability to supply customers with their needs and wants. It allows customers to believe that they are the main priority of any profit making organisation and that receiving good customer service before, during and after their transactions can lead the organisation in securing customers. However, bad customer service can lead to potentially customers being let down on behalf of the organisation and them losing customers, therefore less profit can potentially be made. Customer service is very important for all organisations and by creating good relationships with customers, they are giving their own company a good name, this by keeping customers happy at all times. A happy customer is more likely to spend more at the organisation and can help persuade potential customers to shop there as well. This can lead to higher profits for an organisation such as McDonalds, as repeat business with a customer is the backbone of their type of business. The purpose of customer service and the role it plays The purpose of customer service, in terms of the customer, is that it allows customers to feel part of the organisation in which they make transactions at. ...read more.


This is why retaining customers is so important as not only are an organisation benefiting from having customers, but this could lead to a bigger customer base for an organisation such as McDonalds. If an organisation has a big customer base, this usually means that they have a lot of customers and this could only mean profit. However, if an organisation would like to increase their customer base, this could be timely and costly at the same time for the organisation itself. For example, if McDonalds wanted a bigger customer base for their 'McFlurry', McDonalds would spend money on introducing new flavours for this product so that they attract more customers to buy this product. This could be costly as introducing new products can be expensive for some organisations but an organisation such as McDonalds have heavy turnovers so they are able to do so. This could be time consuming as advertising and the overall promoting of the product can't be done over night. However, retaining customers can be the hardest aspect for an organisation that profits from customers spending; they must also encourage their customers to make sure that they stay loyal to the organisation. As McDonalds cannot force customers to only shop at the restaurants, they have to make sure that they meet customers' needs and wants. By doing this, they are able to attract and retain customers as they are returning to shop. This process is called customer loyalty. The 6 steps to customer loyalty > Prospect- customers that potentially may shop at the organisation or be persuaded to do business with you. > Purchaser- individuals that have made transactions with your organisation and are the users of your product or service. ...read more.


They do this by ensuring their customers of the '7 minute' rule, where customers should have their products ready within this time-limit once their orders have made. This suggests that McDonalds are a quick service restaurant in which customers would not have to wait long for the food. However, if McDonalds do not keep up with this rule, the customers are allowed their order for free if it takes more than 7 minutes, this being a way of apologising for taking long to make the order ready. Also, McDonalds allow the use of customer desks in their stores in which customers can put forward any complaints, questions or queries they may have in order to enhance the performance in the future. McDonalds acknowledge the views of their customers and are happy to meet customer's needs and wants in order to make McDonalds a better place to be rather than having their customers at a rival restaurant such as KFC. This helps retain customers as not all customers will have a positive viewpoint of McDonalds, there being a minority in which they may not be pleased with a certain point. For example, a customer may not be pleased by the number of fries they receive when they ordered a large meal. By allowing their customers to put forward this complaint to the McDonalds customer service, this ensures the customer that their complaint will be followed up and would be evaluated if more customers complain about the same problem. By just having such services, it gives customers the satisfaction that they have complained and that they would return if this problem was solved. This ensures that McDonalds retain their customers by using this method. ?? ?? ?? ?? 1 Rizwan Zaid BTEC Business Jenny McLeod Unit 11: Understanding relationship marketing ...read more.

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