Unit 2 Deliver Customer Service in a Business Environment _ LO 2 (GC01045)
Unit 2: Deliver Customer Service in a Business Environment
Task 1.1: Produce a report on explaining what ‘added value’ means in terms of customer service
According to Nilson (2015), the term “added value” means just what it implies: When a customer purchases a product or service from Tesco, he gets an extra benefit. Added value is not the same as offering a free product or a discount because the customer gets something different than what she’s buying or something that she can’t buy. For example, if Tesco gives a customer a free belt with the purchase of slacks, that’s a straight freebie. If Tesco offers free alterations, that’s added value. If a personal trainer offers customers a free subscription to his newsletter, that’s an added benefit the customer might be unable to get elsewhere and for which the customer pays nothing extra. A common example of added-value selling is a software operating system that includes a free Internet browser, word processing software, and spreadsheet programs.
Brand Management
Adding ongoing added-value to what Tesco sell can help Tesco position itself as an expert in its industry, thereby improving its brand. For example, if Tesco sells software, Tesco might give customers a free password to a chat room on its website to interact with other users, publish a free newsletter with tips on using the software to improve business operations, provide 24/7 toll-free technical support or offer a one-year warranty. This type of added-value strategy helps give Tesco an edge over the competition if they offer similar products or services.
Repeat Business
According to Nilson (2015), many businesses rely on repeat business to stay in business, and added-value selling can get customers “hooked” on its product or service as they come to rely on its bonus benefits. For example, as customers come to rely on its free support, it’s more difficult for them to abandon the knowledge they’ve gained about its product or service and how to use it, and start over from scratch with a new Tesco. Customers or clients might also be more willing to buy from Tesco if they know they are not on their own after the sale.
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High-Ticket Items
According to Nilson (2015), an added-value business model improves its chances of selling a product or service that requires a significant investment. Even when potential customers know they will eventually have to buy from Tesco or its competitor, they might put off the purchase because of their fear of making the wrong purchase. The longer they delay, the more chance their competitor has of getting their business. If Tesco adds value by offering free installation, on-site training, free or low-cost tech support, and other added-value benefits, Tesco is more likely to sell a big-ticket item.
Task 1.2: Recognize the opportunities to add value to a customer interaction
According to Weinstein (2017), finding ways to bring in new customers to keep their business not just fed, but thriving. And while keeping the sales funnel filled really is the top driver for many Tesco, there is a flip side to this. And that’s keeping the customers they’ve already got. Unfortunately, this seemingly obvious statement of fact is one that’s often overlooked or ignored by businesses that, driven by the buzz and excitement that comes from new customers, forget to serve the needs of the ones they have. Customers who, quite justifiably, end up walking away to find someone who can better meet their requirements and really understands the support they need.
1. Recognize that its customers have an ‘LTV’ or ‘lifetime value’
In other words, the total amount they will spend with Tesco during their lifetime as a customer if Tesco let them. From this perspective, spending time to build trust and nurture a relationship with its customers, so they continue to return to Tesco, is time and money well spent. This is an ‘investment’ in its relationship, it is not a cost.
2. Keep adding value by listening to what its customers want and improving what Tesco do for them
This could just be delivering an existing service with added benefits, or it could mean proactively introducing them to a new idea. If Tesco is not sure what this could be, look outside its industry for inspiration. Many great ideas taken from another sector have made many business owners wealthier.
3. Stay in touch with its customers regularly, not just when Tesco want to sell them something
According to Weinstein (2017), if Tesco wants to build an ‘added value relationship’, then contact them with ideas, information, and introductions that will help them, without asking anything in return. When people feel happy about its services the easiest is for them to refer Tesco to others……….
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