Unit 2 Deliver Customer Service in a Business Environment with ASDA (GC01048)

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 Schulz (2014), adding value is a key concept in business studies. This note explains in more detail. Added value the difference between the price of the finished product/service and the cost of the inputs involved in making it. So added value is the increase in value that a business creates by undertaking the production process. In marketing, value-added refers to the process, operation, product, or service that increases the worth of a good or service in the eyes of a customer. This is different from the economic term value-added, which simply means the difference in the sale price of an item and the cost of production.

The concept of value added is very important in marketing because it acts as an incentive for customers to purchase a product or subscribe to a service. According to Schulz (2014), a simple example when the value is added to a product is when a sampler product is given for free when another related product is bought, whether at a regular or discounted price (i.e. free small bottle of mouthwash for buying a jumbo-sized toothpaste).

Another example when the value is added to a product is when an extra quality process, such as undergoing ISO certification, is done to determine superior product quality. In cases like these, the products that pass the certification get to put the ISO logo on the packaging to show the customers that the product is true of superior quality. Obviously, customers that are looking for quality over affordability will choose an ISO certified product over an ordinary one.

According to Schulz (2014), value-added services are a common marketing tool. In this context, value-added refers to all the services Asia offers that relate to its primary service. A good example would be the additional service phone providers offer. These value-added services can include the ability to conference call, leave voice mails, play games, and go online, all on the phone.

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

1. Sales: Increase per-customer sales

According to Reilly (2015), in short, sell more to its existing customers. The most common tactics used here are the basics of cross-selling and upsell. Both of these are good approaches. However, there is a tendency for companies to overuse them. This can result in a negative impact on customer relationships.

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Business Environment Assignment Sample with ASDA

Unit 2 Deliver Customer Service in a Business Environment _Sainsbury’s

There are a wide variety of other strategies that can be used, many ways to implement them, and little need to just focus on cross and up-sell.

For instance, ADA can also deliver customer value through down-sell and usage stimulation. Consider a Bank that, instead of sending more product cross-sales offers, sends credit cards to customers and offers to increase in their credit limit. They know that, on average, when a customer’s credit limit goes up they will use at least some of that extra limit. This then is usage stimulation: the same product, more sales.

2. Loyalty: Retain customers longer

The second way to increase customer lifetime value is by retaining customers for longer. It is true that it costs a lot less to retain a customer than to acquire a new one so it is well worthwhile to spend some extra effort to retain the right customers…………….

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