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Chapter 1 The

Customer Service

Profession

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Learning Objectives

Define customer service Describe factors that have impacted the growth

of the service sector in the United States Identify societal factors that have influenced

customer service Recognize the changes in consumer behavior that

are impacting service

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Learning Objectives

List the six major components of a customer-focused environment

Explain how some companies are addressing the changes impacting the service sector

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Customer Service

Employee’s ability to deliver products and services to internal and external customers Satisfying their needs and resulting in positive

word-of-mouth publicity and return business

Service industry: Businesses and organizations engaged primarily in service delivery

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Figure 1.1 - Customer-FocusedOrganizations

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Growth of Customer Service

Post-World War II Increase in the number of people in service

occupations in the U.S.

Shift to service Economy shifted focus from manufacturing to

providing timely quality service

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Figure 1.2 - From Pre-World War IIOccupations to Service Occupations

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Figure 1.3 - Numeric Change in Wage and Salary Employment in Service-Providing Industries, 2010–2020 (projected)

Source: Bureau of Labor Statistics National Employment Matrix

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Figure 1.4 - Percent of Labor Force by Race and Ethnic Origin

Note: The four race groups add to the total labor force; the two ethnic origin groups also add to the total labor force; Hispanics may be of any race

Source: Bureau of Labor Statistics Division of Industry Employment Projections

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Impact of the Economy on the Quantity of Jobs being Created

Prevailing interest rates and consumer demand cause companies to evaluate: How many people they need Which jobs should be maintained

Technology Increased the need for new technical skills Automation of tasks that were previously

performed by employees

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Impact of the Economy on the Distribution of jobs

More jobs are likely to develop in major metropolitan areas

Need for telecommuting

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Impact of the Economy on the Quality of Service Jobs

Competition for prime service jobs will become much more intense in the future

Successful employees will be: Better educated, trained, and prepared Those who have tapped into the concept of

professional networking

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Global Economic Shifts

Sales in brick-and-mortar stores are down, owing to the growth of online retailing

Post-recession, organizations have: Cut back on the size of their workforce Sold off, merged, or closed operations Taken dramatic steps to attract and retain

customers

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Shifts in the Population and Labor Force

The present labor force is: Older, more diverse, and has more women Expected to grow at a slower rate than in previous

decades

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Increased Efficiency in Technology

Has resulted in: Increased production and quality Equipment working continuously Enhanced ease of service delivery and faster

processing

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Globalization of the Economy

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Deregulation

Governments remove legislative or regulatory guidelines that inhibit and control an industry

Deregulation of U.S. public services led to: Breakdowns in service quality Closure or restructuring of the company Opportunities for new companies to step up and to

better serve customers

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Geopolitical Changes Have reduced U.S. business access and

competition within some areas of the world North American Free Trade Agreement (NAFTA):

Entered into by the United States, Canada, and Mexico

Greater need for better understanding of diversity-related issues

European Union Economic market made up of 28 states

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Changing Values

Companies are attempting to attract and hold customers by: Making changes in their products Changing their manner of service

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White-collar Workers and Women in the Workforce

Increase in the number of white-collar workers has led to the creation of new types of service occupations

Women’s traditional roles in society have shifted to service providers

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Diverse Population and More Older Workers Entering the Workforce

Racially and ethnically diverse population Bring new ideas, needs, and levels of knowledge,

experience, and ability Bring a better understanding of the needs of the

group that they represent

More older workers entering the workforce Median age of people in the United States is rising Return to work due to economic necessity and/or

social reasons

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Growth of E-commerce

Consumers can surf the net for products and services without leaving their homes or offices

Manufacturers can provide products and services worldwide without ever physically coming into contact with a customer

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Consumer Behavior Shifts

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Figure 1.8 - Components of a Customer-Focused Environment

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Figure 1.10 - Competencies of Customer Service Professionals

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Addressing the Changes

To sustain in the present highly volatile business environment, companies must: Become learning organizations Focus on service recovery