Unit 2 Deliver Customer Service in a Business Environment_ Burger King (GC01061)
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
The value-added theory was first proposed by Neil Smelser and is based on the assumption that certain conditions are needed for the development of a social movement. Smelser saw social movements as side-effects of rapid social change. Prospects and customers want to know if the money they are paying is worth it. If Burger King builds a dollar amount into all the benefits of the product and opportunity, the customers will be willing to pay the price (Nourse, 2017).
Build-in value pricing into the manufacture of the products, price costs to grow the plants to make the products (f they are consumable products), costs to set up distribution centers, costs to build warehouses, price costs for the leaders to train the prospects.
Adding value to the brand can help build a strong bond between the business and the customers and enable Burger King to charge a premium for the products or services. One key element in the creation of successful brands is the ability to augment a core product or service with additional and distinctive values that distinguish it from the competition simply, the importance of adding value to a product (Nourse, 2017). The importance of value addition in marketing cannot be overemphasized. The relative importance of functional and emotional values is evident from blind taste tests in both the snacks and drinks sectors where some participants who claimed to be brand loyal to one brand actually preferred the taste of another until told what they had been drinking, after which their preference switched back to their regular brand.
Task 1.2: Recognize the opportunities to add value to a customer interaction
Every business needs to “acquire, retain and grow” relationships with its target consumer, according to All Business. This need is irrelevant to the type of product or service Burger King may offer. Customer value strategies present products and services in a way that consumers realize they are immediately saving money or will be saving money in the long-term by working with Burger King.
Sustainable Differentiations to Competitors
A product or service that everyone wants is a great start but if Burger King has a lot of competition, Burger King needs to develop a strategy that shows customers how Burger King is different and better. Burger King may increase the number of customer service representatives to reduce wait times. Burger King may offer more products than competitors or create a partnership that adds value. For example, a book store with a coffee shop allows consumers to stop and relax, even socialize while shopping. Regardless of how Burger King differentiates itself, Burger King needs to crunch the numbers to ensure it is sustainable in the long run. Otherwise, the value Burger King has given customers will be revoked, causing more harm than good (Krumm, 2016).
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Product Value
Many consumers are notorious price-shoppers. This is where price guarantees, where Burger King will match or beat any competitor’s price for the same product, have become some popular. The timeless strategy of offering the same products or services for less gives consumers the products they want and gives them a reason to get it from Burger King. When implementing this strategy, look at its overall revenues and make sure Burger King is not cutting into its profit margin excessively. Once again, making sure Burger King can sustain the lower prices is essential to staying in business (Krumm, 2016).
Unexpected Service
Whether Burger King offers products or services, excellent customer service in every stage of the sales process not only retains customers but gives customers a reason to tell their friends. From the first, “Welcome to our store,” to addressing unforeseen problems, making the customer’s priorities as its focus goes a long way in creating value. Sure, no business owner wants to have to deal with an unhappy customer, but when Burger King can deal with their problems in a quick and decisive fashion, Burger King is showing the customer where Burger King thinks the value is–in the relationship Burger King have with him. Train all managers and employees in conflict resolution to provide a layer of value that customers don’t always expect when walking through a business’ door, but truly appreciate (Lindholm, 2017).
Task 1.3 Write a report on identifying/recognizing at least four constraints in carrying out ‘added value’
Constraints mean element, factor, or subsystem that works as a bottleneck. It restricts an entity, project, or system (such as a manufacturing or decision making process) from achieving its potential (or higher level of output) with reference to its goal. See also the theory of constraints. There are a number of reasons for constraints in carrying out ‘added value’ and they are given below
Cost-effective
Cost-effective is defined as producing good results without costing a lot of money in the business Burger King. To create added value for the customers and it should be unique from the competitors the Burger King must follow the steps that are very cost-effective (Knop and Tronstad, 2016). Because to create added value for the customer it is necessary to hire a skilled person and this charge many cost………..