What is a customer care scheme? It concentrates the whole business on the needs of the customer rather than the needs of the business or the employee. It is an attitude which should run through the whole organization from the managing director to the most junior sales assistant.
The 21st century customers have increasingly high expectations, so customer service is going beyond these expectations and not simply meeting them. This involves a number of activities such as:
• Providing an appropriate range of products and/or services
• Dealing quickly with problems and complaints
• Having good and clear communication system
• Treating people with integrity and courtesy, etc.
Therefore, this type of service is more than just a smile or saying ‘have a nice day’.
It’s about providing a continuous improvement in what you do in order to please customers.
By operating in this manner Asda should lead to greater sales because of the benefits it brings such as:
• Satisfied customers whose needs are met
• Repeat businesses because satisfied customers are more likely to return to buy
Again
• Additional business because satisfied customers are more likely to recommend friends and relatives, through word of mouth
• Customer loyalty because good service makes them feel that they are dealing with a reputable organization, which cares about them and their needs. They are also less likely to have cause to complain
• Improve staffs moral because satisfied are more likely to be happier and easier to deal with than those who are dissatisfied and have reason to complain
• Staff are more likely to get pleasure from a business that promotes a customer care image, which may increase job satisfaction and decrease overall staff turnover which means staff leaving the company
• Also an edge over competition more customers shopping with them rather than other companies
• Good public image
It is very important that all members of staff at Asda give a high level of service to each other because they are very dependant on each other for customer service as a whole to be successful. Benefits to the staff and Asda include:
• A more pleasant place to work because of happier and more efficient workforce
• Improved job satisfaction
• Improved chances of promotion within Asda
• Greater co-operation and teamwork
Asda has objectives to meet if it wants to be successful and beat its rivals. Listed below are Asda’s objectives:
• To be Britain’s best value for money retailer
• Make its customer service legendary, keeping prices low forever
• Provide its customers with value for money food, drinks and clothing
Asda has achieved its first objective of being Britain’s best value for money retailer. The Guardian newspaper names Asda Britain’s best retailer, due to its high market share they went from 3rd to 2nd in the top three retailers in Britain. Asda also compares its prices with their store rivals such as Sainsbury and Tesco. Asda also aims it to be a one stop shop for all its customers.
Asda has achieved its second objective of providing value for money food, drinks and cloths by keeping up to date with their rivals pricing schemes. Asda also has ad-match prices; this is when Asda compares their advertisements to rival advertisements to see who has the lowest priced and better quality goods.
Asda’s third objective is to make its customer service legendary. This is done through a customer service known as SMILES.
S= Smile to the customer
M= Maintain a friendly attitude to them
I= Interest the customers in your product
L= Let them take their time
E= Eye contact is essential
S= Say “anything else?” and give a parting comment e.g. “goodbye”
Every 4 weeks there is a mystery shopper”. This is done through trading standards. The mystery shopper shops in Asda and monitors the employees and checks if they are working to their objectives in customer service.
ASDA are keeping a good score on its objectives as every 4 weeks (and through the mystery shopper) each store receives a lot of other ASDA stores and this shows how well they have ranked. ASDA also inform customers and the general public about how successful "rollback" is doing as they tell them through TV adverts and posters across their stores.
Customer shopping habits also help ASDA to meet their objectives. An average shopper spends £4,000 per year on shopping. Through an additional service, known as "Home Shopping" customer numbers/figures have risen over the years.
Other than benefits to business and staff there are a range of services which Asda provide (other than low prices). To meet customer expectation and achieve customer satisfaction, which can be obtained from ASDA’s website www.asda.co.uk. These services are: 200% Asda brand and fresh produce guarantee, this service enables customers to get a full refund or replacement if they are not satisfied with the Asda brand food and fruit and veg. Also like for the blind customers, their products are in Braille. Tinned products in particular all feel the same to somebody who is blind; it is invaluable for them to have these marked on a label in Braille, which then can be stuck on to the product so that they can identify them properly. This can either be done at the customer service desk or somebody goes round the store with a blind person. Asda is the only retailer to offer this service across all stores, and a number of stores have received a remarkable amount of positive PR as a result.
Asda also has electric scooters service; this is a scooter with an elevating seat, enabling disabled customers to reach products on the top shelves as well as products lower down. If they did not have these scooters there will be less disabled people shopping at Asda so they will lose out in profit, and more disabled people will come after seeing their services they are providing. Asda also has a online shopping service where you can buy products such as groceries, DVDs, games and flowers etc. Just by the click of the mouse the products, you ordered can be delivered to your home safely and hassle free. Below is a screen print of the logging in screen after you have logged in, you can pick the items you want and it will come up in a shopping list with the total cost which can then be delivered to your home.
Also they have a 28 day guarantee in which If you are not happy with your purchase simply return it in its original condition, with proof of purchase, within 28 days of purchase and they will give you a full refund or replacement* To qualify for an exchange or refund, products returned need to be complete with all components and original packaging.
Asda also have brolly patrols this is when the Greeter is trained to offer customers the facility of being led to their car under the shelter of an umbrella. This is particularly used for customers with small children, the elderly or those customers
Who look to be struggling with their shopping load.
Asda are also very helpful to the customers they offer a jump lead service, this is where the Greeters and Porters are trained to identify when a customers car has broken down or won't start in the Car Park, these colleagues will then assist you in getting your car started with jump leads using the Store Manager's car to get you back on the road. By doing this jump lead service customers will now see how helpful Asda’s employees are so they might shop their more often.
Asda also has advertises shown on TV of all their latest offers or how low the price is. By doing this customers of Asda’s competitors like Tesco and Morrison are more likely to shop at Asda after seeing how low the prices are.
Asda offers a wide range of trolleys ranging from our smaller smart shoppers to our larger 175-litre trolley with child seats. To make the shopping experience finish on a good term, they have a special bag packing service in which all there checkout staff will be happy to help pack your bags. Asda’s staffs are very well trained and will make sure everything is packed accordingly, e.g. fresh, frozen breakables Etc. By using these services customers and consumers are more likely to return and shop there so it will benefit Asda so it can improve more on there services and the customers will buy more then.
In Asda the different ways in which staff deals with customers is by:
• Providing information about the product such as suitable for vegetarians, how much fat, calories etc in the product
• Dealing with complaints calmly
• Helping customers, including those with special needs
• Answering telephone calls or face to face queries
In Asda customer service is not only about selling products or providing a service. It could also be how staff may communicate with customers verbally either by telephone or face to face. When Asda communicate they use the following:
• The importance on tone, manner and language
• How to finish a conversation appropriately
• How to gather record information
• How to establish and meet customers needs.
If Asda did not use these skills appropriately, then the customers would think that the staffs are being very impolite and leave and shop elsewhere.
There are also many different situations in which customer service is provided, for example:
• Providing information
• Receiving and passing on messages
• Dealing with problems
• Keeping records
• Offering extra services
• Dealing with dissatisfied customers
The main way in which Asda measures customer satisfaction is by the following:
• Analysing sales performance e.g. sales levels, number of customers and records of products brought etc.
There also has been an increase in profits Asda says Christmas sales growth over 2.8 pct. Asda growth is reflective of the recent success of promoting themselves on prise promises. Its growth is also being partly driven by the opportunities that come from being part of Wal-Mart the largest retailer with an unrivalled reputation.
In Asda’s most recent mission statement it says;
Whenever you are ten feet away from the customer you must greet them and ask them if they need and assistance.
At Asda, they have a policy called ‘the ten foot rule’. Whenever a member of staff comes within ten feet of a customer, they are supposed to greet them and ask them if they need any help. This shows their intension of having good happy customers shopping with them all the time.
If you compare Asda’s customer service with their competitors like Sainsbury and Tesco, you can see some of the services are the same and some are different. For example the thing in which Asda, Sainsbury and Tesco do the same are:
• They each provide a wide range of goods to buy from food to non-food products
• Provide a 28 day guaranty so if you are not happy with your product return it
• Provide information on the product either front or back about vegetarians or calories etc
• Communicate with customers calmly
Things in which the three businesses do different are:
• Sainsbury visit customers at home and ask them about the products to find out how the products are performing in terms of quality and price. Then this information will be passed on to ensure that there products are right for the customers
• Tesco organizes and run over 1600 customer questions where customers are invited to come and talk to their local store management team about their shopping likes and dislikes
• Asda offer a policy called the ‘ten foot rule’ this is whenever a member of staff comes within ten feet of a customer they must greet them and ask for any assistance
After comparing the three businesses Asda, Sainsbury and Tesco you can see the majority of services are the same with having these services the business is more likely to benefit from more repeat business and also an edge over competitors.
So if Asda carries on good customer their performance will dramatically increase their profits and their will be more satisfied customers.
Section 2:
AO3
In this section I will produce a guidance report of how customers can be protected and the different organization, which customers can go to receive advice.
I will be explaining the following laws:
• Sale of goods Act
• Trades Description Act
• Weights and Measures Act
• Food and drug Act
• Food and safety Act
• Consumer protection Act
• Consumer Credit Act
Consumer protection describes various laws, which are designed to protect consumers from unfair and bad business practises. Some of the legislations deal with the consumer’s safety; other laws attempt to protect the consumer from exploitation by strong or unethical firms. The UK government and the EU pass laws to protect the interest of consumers and employees, failure to protect vulnerable groups (e.g. pensioners, young people) will result in adverse publicity for the Government. People may vote for the opposition at the next General Election if the Government fails to protect their interests.
Over the last decade or two consumers have become more highly intelligent and informed purchasers. This trend was encouraged by the popularity of consumer organizations such as consumers’ association and its publication, in which there has been a huge growth in consumer televisions, programmes such as Watchdog, which has helped to highlight consumer issues. This has led to more calls for protection for consumers- often in the form of legislation.
The market can’t always prevent the business from misleading their customers or supplying inadequate goods. So the government have stepped in to pass consumer protection laws, if a business breaks the laws, it can be prosecuted and fined under criminal law.
The major Acts compromising consumer legislation include the following:
• Sale of Goods Act 1979: this is a law that lays down the contract implied by the purchase of an item. It specifies that goods must be of merchantable quality’, i.e. fit for the purpose for which they were purchased and free from faults. Also aspects of the quality include freedom from minor affects, appearance and finish, durability and safety. Also it is the seller, not the manufacturer, who is responsible if goods do not conform to contract. If not the consumer can sue the business, for instance a Rock Port jumper sold with a hole in it is not of merchantable quality. Glue sold for glass which doesn’t glue glass together is not fit for that purpose. Also a pair of Diesel jeans labelled blue in a presentation pack but which turns out to be black does not meet the description applied. You can also seek damages, which would be the amount of money necessary to have the goods replaced or repaired. Another example would be a jumper manufactured by Nike, which JJB purchase in bulk for retail to the public. If the jumper has a hole in it when purchased by the consumer, then they can ask for their money back from JJB. Another example of this Act in action would be; Intel manufactures microchips which are sold to Dell. Dell uses the microchips in their PC’s. The Dell PC’s are sold to the public but become faulty within the first 6 months of purchase. If the consumer (public) asks Dell for repair or replacement of the microchip, Dell would have to conform to the request unless they could prove the consumer was at fault for the microchips failure (were not inherently faulty). On the other hand if the microchip becomes faulty after six months to six years from the date of purchase, then it would be the consumer who would have to prove the microchips were faulty for them to claim for repair or replacement of the microchips.
• The Trade Description Act 1968- This is one of the key pieces of consumer protection legislation which protects the general public against false or misleading advertising. This law prohibits false or misleading descriptions of a products contents e.g. by writing it down or making a verbal statement. The legislation covers packaging, advertising and promotional material, quantity size, strength performance, composition and price, etc. For example making a misleading statement such as, ‘our dry cleaning is guaranteed to remove every stain’ but actually only removes 98% of stains would fail to comply with the Act. Another example might be in a holiday brochure a hotel advertises ‘our apartments are within easy reach of the sea’ but when they are actually 100 miles away would be a failure to comply with the Act. A garage may state in a newspaper advert that the a car for sale has cloaked up 15,000 miles, when in fact the figure is 35,000 miles, this would be another example where an individual or organisation has failed to comply with the Act..
• Weights and Measure Act 1963 and 1985- legislation making it illegal to sell goods below their stated weight or volume, together with an enforcement procedure through trading standards officers’ procedure the office of fair trading and the national weights and measures laboratory. The 1985 Act allows metric measures to be used. It must be one in which consumers can have confidence, so that when they make a purchase they do so in the knowledge that they are not being sold short weight or measure. Businesses, too, must be protected from unscrupulous competitors who would seek to gain an unfair competitive advantage by flouting the law. Say for instance if you brought a packet of crisps which contained only 25 g but really contained 15 g is breaking the law so you can sue the company for selling goods below their stated weight. Another example of this act would be if you went to a pub and asked for a pint of beer, you should get exactly a pint if not you can take legal actions. Also another example would be if you brought a chocolate bar which contained 15g of fat, should contain that amount if less like 5g. That is breaking the law for selling goods below their stated weight. These are examples of which of which the organization has failed to follow the act.
• Food and Drug Act 19550- This act protects the consumer by selling food and medicine which is unfit for human consumption illegal. It sets food labelling regulations and establishes on hygiene in premises dealing with food, it also lays down minimum standards of what must be contained in a food. Packaged goods must carry ingredients, labels and some goods have to carry warnings about the way they should be handled or cooked. For instance a meat sausage must contain at least 30 per cent meat. If less then the business can be prosecuted. Another example of this act would be if you brought a can of deodorant, and at the back of the can it did not condemn any health and safety warnings for people. This is illegal and the business can be sued or can lose their license for selling these products.
• Food and Safety Act 1990- This is a wide ranging law which strengthens and updates consumer protection in the food sector throughout Great Britain.
The legislation helps to protect the general public consuming food/drink which is not to a standard for human consumption. The Act makes it an offence for organisations to sell food which is not of the 'nature or substance or quality' demanded by the purchaser and also makes it an offence to falsely describe, advertise or present food and drink that is unfit for human consumption.
By using this act it ensures that all food produced for sale is very safe to eat, and also reaches quality expectations.
An example of this Act in action could be that a member of the general public notices that while eating in a restaurant the chef prepares food in dirty conditions, such as preparing meat on a chopping board which is unclean. The person may contact an officer of Food Standards Agency, who may then issue improvement notices to the proprietor of the restaurant after inspection.
• Consumer protection Act 1987. Under this act, it is an offence to supply customers with a misleading indication, by any means, of the price of which the goods, services, accommodation or facilities are available. Of which do not meet general safety requirements. It also allows people to claim compensation for death, injury or damage to property over £275 (apart from damage to the product itself) if a product they use turns out to be faulty. Action is usually against the manufacturer or producer, but you could sue the retailer if they will not tell you who the manufacturer is. For example if you brought a mattress and it was covered with plastic, and it did not have a label saying babies should no eat or swallow. Then the baby accidentally did and dies then you can claim compensation, this is another strict liability law.
Consumer credit Act 1974 and Financial services Act 1986. People or businesses such as: sole trader, partnership and unincorporated associations lending money or offering financial services are controlled by these acts, For example by making them become registered. Companies lending money on credit must state clearly the APR- the annual percentage rate’- which is the true cost of borrowing money: and advertisement offering credit must not mislead people. The act also lays down rules covering: the form content of agreements, credit advertising, the procedures to be adopted in the event of default, termination, or early settlement and expensive credit bargains.
By having these laws consumers are benefiting immensely from being provided misleading descriptions about the products they buy.
Also other than laws to protect the customers there are different organizations, which give advice to consumers and customers such as;
• Trading Standard
• Environmental Health
• Citizen’ Advice Bureau
• Trade associations
• The consumers Association
• Utilities Watchdogs
• The Trading Standards Institute is the professional association which represents trading standards professionals in the UK and overseas. It was founded in 1956.
The Trading standard service enforces the law and regulations that govern goods and services which we all buy, hire or sell in support of better communities, economic vitality and national prosperity. The Service is delivered by local government (the Department of Enterprise in Northern Ireland) and includes advice services for business and consumers.
Trading Standards services work in partnership with 'Consumer Direct', a call centre based consumer advice service that will be available across the UK from April 2006. Consumer Direct' provides a single contact point where simple enquiries may be dealt with directly and others referred to the relevant Trading Standards office. They now deal with more diverse issues under a wide variety of Acts, Orders and Codes of Practice, as set out by central government and the Office of Fair Trading. Such legislation includes the Trade Description Act 1968, the Consumer Protection Act 1987 and the Price Marking Order 2004.
The Trading Standards Service ensures a safe and fair trading environment for consumers and businesses alike. At its heart are qualified and dedicated officers, trained to be expert in their fields.
From the trading standard website you can see they have a wide range of sections for you to look at on their website, general information and links to other websites. For instance career & education you may want a job as a trading standard officer, there’s also events in which you can take part in or you could just become a member.
• Environmental Health comprises those aspects of human health, including quality of life, that are determined by physical, chemical, biological, social, and psychosocial factors in the environment. If these aspects are not controlled, corrected and prevented, then these factors can affect the environment for the present and the future.
The Environmental health’s also have services which implement environmental health policies through monitoring and control activities. They also carry out that role by promoting the improvement of environmental parameters and by encouraging the use of environmentally friendly and healthy technologies and behaviours. They also have a leading role in developing and suggesting new policy areas.
Below are examples of environmental health websites such as NIEHS and Health house:
From the web site NIEHS and Health house you can see that they are very interested in our health and would like to help by providing lots of information on how to stop our selves from being in risk of health danger. They would also like us to join them in their meetings and events to pass on the message about Environmental health.
• Citizens’ Advice Bureau (CAB) is one of a chain of local bureaux throughout the UK which give information, advice and sometimes casework, free of charge to all comers.
A CAB is not a department of central or local government, but a local charitable voluntary organization. It is totally non-selective in its clients and impartial in dealing with all sorts of persons and problems. The CAB service has an open-ended scope, but principally helps people by investigating their problems, exploring and explaining their options, and where appropriate helping to contact and deal with the relevant officials and counterparties.
The work involved in these services varies from; different issues such as welfare benefits, housing, asylum and consumer complaints. Advice is also available from the community like, from people’s home either by email or telephone.
The Citizens Advice service is one of the largest volunteer organizations in the UK with over 21,000 volunteers (the majority of these being part time volunteer advisors with a reliable amount of training, but also trustees and administrators). Typically a few paid managers, supervises and other part-time staff may support a number of other part time supervised volunteers.
From the Citizens advice website you can see there are lots of different information and advice on the different criteria’s you are looking for. They also have annual reports, how to support them, by supporting them you can provide donations for the citizen advice bureaux to provide vital services in the community. There are also lots of job opportunities.
• The Consumer Associations is a consumer rights organization in the UK, founded in 1957 by Michael Young. It is an organization which defends consumers’ rights by investigating a wide range of goods and services and publishing reports on particular investigation or tests it has carried out on the consumer’s behalf. It also lobbies industry and government to promote consumer’ interest. There are also trade organizations. These are organizations of business which defend their rights. They might take action, for instance to curb the power of larger powerful suppliers or customers. Other unofficial bodies that exist to protect the consumer’s rights are- the BBC’s Watchdog series of programs, the citizen advice bureaux and the consumer advice centre’s. Examples of their websites are shown below:
From the consumer association website which? You can see they provide an independent and interactive consumer advice service from the experts at which? They also have magazines which you can subscribe to when you become an online member of their website. The magazine offers a wealth of expert advice and information on an immense number of services and products.
• The Utilities watchdog is an independent organization set up by the government, which monitors the quality of a business’s utilities. Examples of these organizations are OF WAT which is the regulator of the water industry, and Of Gas which monitors the gas industry. There is also Of Gem which monitors the electricity industry, all of these organizations monitor the price, competition and they are also an organization that you can go to and make complaints about the quality of the service. Examples of these organizations web sites can be seen below:
From the Of Gem website a large variety of information for customers, it is also the regulator for Britain's gas and electricity industries. Its role is to promote choice and value for all customers.
From the Of Wat website you can see they have a range of thing to do from looking at faqs, publication and job vacancies. Of Wat’s mission is to regulate in a way that provides incentives and encourages the companies to achieve a world-class service in terms of quality and value for customers in England and Wales.
• The Trade associations is an industry trade group is generally a public relations organization funded, founded and formed by corporations that operate in a specific industry. Its purpose is generally to promote that industry through PR activities such as advertising, education, political donations, political pressure, publishing, and astroturfing. There are different types of trade associations such as:
• The organic Trade Associations (OTA) is a membership-based business association that focuses on the organic business community in North America. OTA's mission is to promote and protect the growth of organic trade to benefit the environment, farmers, the public and the economy. A link to their website is shown below:
Other associations are the DTI trade associations which with the Trade Association Forum to help associations deliver best practice to members. Various benchmarking initiatives and studies have been carried out. The Forum spreads the results around through, workshops and the publication of reports. The DTI encourages all trade associations to belong to the Forum and to continue to improve their own performance in an increasingly competitive environment. Their website is shown below:
From these websites you can see that the different types of trade associations have different types of relation into the industry it promotes. For example the Organic association is about how to protect the organic trade and benefit farmers and the public economy. As for DTI it is a forum that helps and delivers the best practise to members.
Sources:
Wikipedia: Environmental health
Citizen Advice Bureau
Trading Standard
www.wikipedia.com
TASK 3:
Comet Plc
Anglian Retail Park
Ipswich
Suffolk
The Limes
The Old bowling green
High street
Yoxford
Suffolk IP13 8QY
Dear AJ Hook
Thank you for your letter of the 8th March 2006. I note your disappointment with our customer service at your recent visit to Comet.
I would firstly like to take this opportunity to apologize for the bad experience you received on your visit. Secondly now I would like to inform you that we have now started a full investigation, to find out what exactly happened on your visit and how the process in our customer service policy failed to promise, the quality of service that we pride our selves in.
Once the investigation is complete, a full response will be sent to you, to address all your concerns. I hope we bring this matter to a conclusion as soon as possible.
You’re sincerely
Comet
Customer service manager
Comet Plc
Anglian Retail Park
Ipswich
Suffolk
The Limes
The old bowling green
High street
Yoxford
Suffolk IP13 8QY
Dear AJ Hook
Further to our letter of 14th March we have now completed our second investigation, and found that the member of staff who dealt with you on your visit did not fully treat you with the quality of customer service that our customers should expect.
The staff member is fully aware of their actions and would like to apologize, to you for the poor service offered on the day. Comet has now taken immediate actions to retrain this member of staff in the quality customer service that we promise to all our customers.
Again Comet apologizes for your disappointing time at Comet and as a gesture or goodwill; Comet offers you £50 worth of Comet vouchers to spend on your next purchase at our stores.
I hope that our investigation addressed all your concerns and that you are satisfied with the results and we are now bringing this investigation to a close.
We hope to see you again in our stores and welcome any further suggestions that you may have to improve our customer service policy.
You’re sincerely
Tarif Customer service Manager
Task 5:
Letter review:
I think the letter I wrote to the customer was reasonable good, because it included lots of information about how the situation was going to be resolved and also a welcome gift for the bad service which was provided.
I also used spell check to see if there were any mistakes in the letter and corrected all grammar. There was right punctuation and grammar was used and also both letters was written in the right format.
To improve the letter I could write more or make the font bigger to read, so it is understandable.
