Investigating Customer Service

Sales area and store numbers

Area ('000 sq ft)

Number

Supermarkets

Opening figures 2006/07

6,090(2)

472

New stores

375

20

Closures

(34)

(2)

Employee numbers

Number

000's

Number

000's

The average number of employees during the year were:

Full-time

49.2

49.8

Part-time

04.1

05.1

53.3

54.9

Full-time equivalent

96.2

97.4

Number

000's

Number

000's

The average number of employees (full-time equivalent) were employed in the following countries:

United Kingdom

96.2

96.0

United States

-

.4

96.2

97.4

Sainsbury's Ownership

Sainsbury's is a Public Limited Company (PLC)

A Public Limited Company (PLC) can sell its shares on the Stock Market. Public Limited companies should legally audit accounts for inspection later on. These accounts can be analysed by directors, shareholders and potential investors. Competitors may also find out about their accounts. Public limited companies tend to be large companies.

PLC has access to capital markets and can offer its shares for sale to the public through a recognised stock exchange. It can also issue advertisements offering any of its securities for sale to the public. In contrast, a private company may not offer to the public any shares in itself.

Customer service and why it is important

Customer service is the procedure of identifying and putting the level of service to make sure the customers are always satisfied. Customer service is the life blood of the business so you need to make sure that you are offering the right product to right person at the right time and the right place.

Businesses which are successful are the businesses that know who their customers are and business that can reply customer requests and desires. Planning is the main point for a good customer service. The business should plan to have effective customer service.

To keep and gain customer custom business needs to look after them. Reputation and high level of customer service is also very important for business as this will attract new customers. Poor customer service will mean risking losing customers and sending them to competitors.

If the customer service is not acceptable and not at good standard then the business will lose the customers and without customers there is no meaning of the business.

Oragnisations now offer training for customer care. This is important because people learn new factors about customer service and how important it is for the business.

The most important issue for a business is to identify the following points for its customer service to be at a high standard. The points are:

* Customer identification

* Developing mix of precuts and service

* Make sure the delivery system is high in quality

* Staff training to be carried out regularly

Customer service which is not effective and poor is resulted in the cause of poor communication within the business lack of management commitment and insufficient resources.

The table below shows the advantages of customer serviced which is developed:

Components of customer service

In a business the main key issues of customer service is its components and they are:

* Caring of customers

* Meeting customer needs

* Achieving customer satisfaction

* Meeting customers' expectations

* Maintaining security

* Maintaining safety

Each of these is really important within customer service. If these components are met then there will be a development in the customer service provided.

Caring of customers

The main point of customer service to look after its customers and the customer is satisfied with the product and service given. Customers should always be treated with consideration and courtesy.

Meeting customer needs

Customer needs are only met when they are provided with the product and service they have required and which sits them most. The business should put in time and effort to meet its customer's needs.

Achieving customer satisfaction

This is not same as meeting customer needs. The business should be sure that the customer is satisfied with the serviced provided. If the business is not able to meet the need of the customer then they should make sure they can solve the problem so the customer leaves satisfied with the service.

Meeting customers' expectation

Customers will have variety of expectations from the business. The business needs to understand and meet customer expectation otherwise this could be frustrating and annoying for the customer.

Maintaining security

The business needs to be sure that the possessions of the customer are secured so there will be no problem. Customers should be aware that the security standards are met so they will confident when visiting the business or using any of its facilities and products.

Maintaining safety

Safety is another big issue of customer service. The customers should be safe and this is business responsibility. The business needs to comply within health and safety act. For example there should be fire exit signs so the customer is aware of what to do in emergency.

Impact of new and old customers on organisation - internal and external customers

Not always new and old customers are treated in the same way by the business. Old customers usually have more opportunities and choices.

For old customers they are more familiar with the business and what the business provides. If the customer service provided is not at a god standard it the reputation of the organisation may still be same for them, whereas because the new customers do not know about the business they will need extra care and attention. For new customer the first impression of the business is very important.

Internal or external customers that have been with the business for long time may benefit from entitlement of additional loyalty such as higher discounts, store vouchers and may be air miles.

Internal customers such as new staff may need to be attracted by higher wages (golden hello). Loyalty staff may receive higher payments, longer holidays, larger pension and even better promotions.

Sometimes ages of staff determine the wages specifically in teenagers.

Old and new customers may be treated in different ways because of the following:

* If there is poor customer service to the customer which has been with the business long time, they may not change their views because they are already familiar with the business

* Customers which are new to the business will need more attention and care because they do not know about the business

* Customers which have been with the business for long time may be entitled to additional loyalty benefits like higher discounts and store vouchers

This also applies to internal customers such as employees and other staff working for the business.

* New staff may need to be attracted when there are shortages by offering them higher starting salary which is known as the 'golden hello'.

*

Internal and External Customers

Internal customers are:

* Shareholders

* Employees

* Internal service providers

* Managers

* Departments

Internal customers are customers within the business.

External customers are:

* State and society

* Families

* Suppliers

* Businesses

* Individuals

External customers are the customers outside the business.

The Difference between Internal and External Customers

The difference between internal and external customers is that internal customers are customers within the business such as employees and mangers whereas external customers are customers outside the business like individual and other businesses

Internal customers need to have good service from the business in order to provide fine service to external customers. If the internal customer is happy with the service and attitude of the business towards them then they will make the external customer satisfied.

Team working is very important for internal customers because they can create the right atmosphere and have effective service with producing high quality product. It is also important for internal customers to be safe, healthy and happy.

Internal and external customers of Sainsburys and China Place

Sainsburys internal customers:

* Employees

* Managers

* Departments

* Shareholders

* Internal service providers

* Suppliers

Sainsburys external customers

* Individuals

* Groups

* Government

* Business people

* Ages

* Cultures

* Lifestyle

* Socio economic class

* Families

China place internal customers:

* Manager

* Employees

* Suppliers

* Cleaners

* Security - cooperation

* Mc Arthur glen

* China place external

China Place external customers:

* Individuals

* Groups

* Government

* Business people

* Ages

* Cultures

* Lifestyle

* Socio economic class

* Families

Needs of different customers

Age

* The age of the customers is really important because different age groups have different expectations and requirements from the business. Young people aged 16-21 are attracted more of exciting designer goods like mobile phones, music, DVD players and other designer products. For Sainsbury to satisfy customers aged 16-21 they should have the latest designer goods and products which are trendy. China place could have gifts that are fashionable which this age group may be interested in.

* Children aged between 5-12 are more interested in toys and clothes but needs of parents is really important at this point because they would like clothes to be practical and trendy and toys to be safe. Sainsburys could always make sure the toys which they put up for sale is up to high standard safety and meets legal requirements. China place can sell small cute products which can be gifted for young children.

* Adults are interested in more of luxury items such as electrical goods. Brands are important for them and what to wear, what to eat also the designer chic for the home is important. Sainsbury could sell goods such as branded electrical goods. They can also sell latest electrical goods which have more amenities. China place could sell designer home ware for people at this age group as they prefer there homes to look good and stylish. This age group also chooses familiar and trusted brands to replace items when they fail. Sainsburys could sell goods which are very high standard and well-known brands in there own sector. China place can sell products for home ware and table ware and the products needs to be branded goods.

* Socio economic factors

Socio- economic grade

Social status

Occupation

A

Upper middle class

Higher managerial, professionals, directors

B

Middle class

Intermediate managers/professionals

C1

Lower middle class

Supervisors, junior managers, professional

C2

Skilled working class

Skilled manual workers

D

Working class

Semi/unskilled manual workers

E

Lowest level of subsistence

State pensioners, casual workers, lowest grade workers

Large organizations now employ multi-lingual staff. Other options of communicating with customers with different languages are to:

* use gestures - when pointing out directions for example

* using diagrams or pictures

* keeping various dictionaries to hand, so that key words can be translated

* Making the efforts to learn a few simply phrases in some common languages. Being able to say hello, goodbye and thank you will make foreign customer satisfied and show that the business does take care of them and make some effort

Large organisations now often employ multi-lingual staff as many forging visitors can speak only a little English or none at all. These visitors will still expect the staff to understand them and deal with there needs. For example at cinemas some films are in a different language to cater for the demands of others.

Disabilities

Disabilities are another factor of customer needs. It is very important for business because it is a major need. There are many people with certain disabilities which needs an extra customer service and different facilities. It is legal to provide certain facilities for people with disabilities. The disability discrimination act was introduced in 1995 and all originations need to comply with this law.

Disability services provided for Sainsbury's customers are:

* Internet service

Store colleagues receive disability training as part of their induction program to ensure that they have an awareness of the needs of disabled customers.

* Accessible toilets

Selected stores have specially designed toilets for our disabled customers.

* Designated disability parking spaces

All car parks have designated disabled parking spaces. These are situated near the main store entrance for any of our customers with a mobility/access requirement.

* Guide/Assistance dogs

Guide dogs for visually impaired customers and assistance dogs for the hard of hearing and other customers with disabilities are welcome in all of our stores.

* Help with your shopping

Sainsburys always Endeavour to offer customers any assistance they require with their shopping. Personal shoppers are available to accompany customers around the store and do their shopping with them. Further help is also available at the checkouts if customers would like assistance with packing shopping. They are also happy to carry shopping bags to the car if requested.

* Induction loop system for hearing impaired

The majority of our stores now have hearing induction loops installed to help hearing-aid users interact with colleagues at specific locations around the store, including selected checkouts and the customer service desk.

* Service call in petrol stations

The majority of Sainsburys petrol stations have a service call facility, enabling disabled drivers to request assistance without leaving their vehicle. Sainsburys petrol colleagues will be happy to help.

* Wheelchairs and specially adapted trolleys

These are available in every store and electric scooters are available in selected larger stores. The latter can always be requested for a specific customer, where space permits.

* Sainsburys also trialing new designs of trolleys to ensure that we cater for all of our customers with disabilities.

* Wide-aisle checkouts

these are in all our stores and can be clearly identified by signage displayed above the checkout. These are ideal for customers who use wheelchairs

Special needs available for China Place and Designer outlet:

* There are wheelchairs available

* Disabled access and easy access to the store

* China Place makes sure that there is always enough room in the store for wheelchairs to easily surf around.

The Expectations of the Organisation's Customers both Internal and External

Internal customers are:

* Shareholders - they would like the business to do well and make profit. They would also like money back from the business.

* Employees - employees

* Internal service providers

* Managers -

* Departments -work together so the activities of the business are conducted satisfactorily

External customers are:

* State and society

* Families

* Suppliers

* Businesses

* Individuals - need to know the aims and the objectives of the business have a good understanding of the product or service they are selling and the level of the service they are expected to give to customers and to their colleagues.

Pre-tansactional, transactional and post-transactional

Pre-transactional means before-sale. This means that the customer should know the following before sale is being made:

* Information on what products are for sale and where and when they will be available

* If there are any special offers any some details of the product price

* If customer wants further information about the product there should be staff available from the business

* Proper storage and transport will protect the product

* The opportunity to pay in advance

Transactional - this is when the actual service/ sale take place. The main points of transactional are:

* Staffs needs to treat customer courteously, provide customers with honest information and advice. Customers should not be pressurised and should be served promptly.

* If the product on sale involves electrics, mechanical parts, equipment and clothes they can be tried out or tried on to see that the product does work

* Customers should be easily able to surf through stores, showrooms or websites which means they will need to be laid out properly

* Stock should be existing and provided when necessary

* There should be variety of payment methods available

Post-transactional - this is after sale. This is also important like pre-transactional and transactional. The main factors of post-transactional are:

* Protective wrapping and packaging

* If wanted delivery it should be available

* Warranty or guarantee

* Information about new products such as upgrades

* Servicing and repair of durable goods such as cameras.