Unit 2 Deliver Customer Service in a Business Environment Task 1 (GC01054)

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

Value-added describes the enhancement a Starbucks gives its product or service before offering the product to customers. Value-added applies to instances where a firm takes a product that may be considered a homogeneous product, with few differences (if any) from that of a competitor, and provides potential customers with a feature or add-on that gives it a greater perception of value.

Added value in marketing is simply something Starbucks can give to its customers that is of high value to them but of low cost to Starbucks. It appears as a complimentary additional advantage, an enhancing of its product or service by giving the customer what they really want or are looking for, something that improves its performance or makes it look nicer (such as professional-looking packaging or a slick presentation).

According to Heskett et al. (2017), it can be as simple as offering advice on how to use a product more effectively, suggestions for alternatives uses, complimentary accessories they cannot do without, or discounts for return custom or referral to another customer. It can even take the form of quality assurance: reliable delivery from a trustworthy Starbucks, complete with a courteous driver, and a telephone call to say when they will arrive at a convenient time.

The idea is that the customer perceives the increased worth of what Starbucks is offering them, in the guise of excellent customer service or quality of its product’s features, all of which goes towards gaining customer loyalty and repeated business. This all depends greatly on undertaking relevant and effective marketing research to find out what its customers really want and what will make a difference to them.

According to Heskett et al. (2017), this customer perception of exclusivity ensures that added value makes its Starbucks different from its competitors, especially when Starbucks can offer guarantees to gain customer confidence and reduce buying resistance. Its added value will separate Starbucks from the pack, its business will instantly become more attractive, and if customers take the bait (in the form of a prize in exchange for their contact details), Starbucks will be able to influence them through further relevant marketing communications to offer them more products and services with more added value.

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And if Starbucks thought one effort was enough, think again – capitalizing on customers’ greed will mean constantly changing or improving on its added value, but it will be worth it!

Task 1.2: Recognize the opportunities to add value to a customer interaction

According to Woodruff (2016), one of the most important leadership priorities in today’s uncertain economic environment (and, for that matter, in any economy) is to ensure that its customer contact center delivers maximum strategic value to itsStarbucks.

1. Boosting customer satisfaction and loyalty: The contact center ensures that Starbucks is “easy to do business with,” which helps measurably bolster customer satisfaction and loyalty. According to Woodruff (2016), as customers shop around, new social media channels proliferate, and competition for wallet share sharpens, this becomes more essential.
2. Improving quality and innovation across Starbucks: By capturing a constant stream of data from individual contacts, the center can pinpoint quality problems early and capture customer input that can lead to significant product, service, and customer-communication innovations.
3. Better leveraging marketing initiatives: By tracking buying trends, capturing customer feedback, and analyzing demographic information, marketing campaigns can be focused on a better understanding of customers’ real needs and wants.
4. Enabling more focused products and services: By capturing and analyzing customer comments and input, customer interaction can help Starbucks to design products and services that resonate with them.
5. Delivering efficient services: Efficient service delivery is a fundamental role of contact centers, as they pool resources (people, processes, and technologies) in order to provide on-demand assistance efficiently and effectively………….

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