Unit 2 Deliver Customer Service in a Business Environment_Pizza Hut (GC01065)

Task 1.1: Produce a report on explaining what ‘added value’ means in terms of customer service

Kolter (2017) stated that added value means an amount added to the value of a product or service, equal to the difference between its cost and the amount received when it is sold. Wages, taxes, etc. are deducted from the added value to give the profit. The term “added value” means just what it implies: When a customer purchases a product or service from Pizza Hut, 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 Pizza Hut gives a customer a free belt with the purchase of slacks, that’s a straight freebie. If Pizza Hut offers free alterations, that’s added value.

From this perspective, spending time to build trust and nurture a relationship with Pizza Hut’s customers, so they continue to return to Pizza Hut, is time and money well spent. This is an ‘investment’ in Pizza Hut’s relationship, it is not a cost (Kotler, 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 Pizza Hut, complete with a courteous driver, and a telephone call to say when they will arrive at a convenient time.

Kolter (2017) disclosed that this customer perception of exclusivity ensures that added value makes Pizza Hut’s Pizza Hut different from Pizza Hut’s competitors, especially when Pizza Hut can offer guarantees to gain customer confidence and reduce buying resistance. Pizza Hut’s added value will separate Pizza Hut from the pack, Pizza Hut’s business will instantly become more attractive, and if customers take the bait (in the form of a prize in exchange for their contact details), Pizza Hut will be able to influence them through further relevant marketing communications to offer them more products and services with more added value (Maarleveld, 2015).

The concept of value-added selling has been a popular one for a number of years. The real issue, though, is that in today’s marketplace where so many products and services are viewed as a commodity, the ability to add value to Pizza Hut’s product or service is an absolute necessity. There is no doubt that in the absence of value-added components virtually any product or service can be driven down to the most bottom line – price.

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Unit 1.2 Business culture and responsibilities

Unit 2 Deliver Customer Service in a Business Environment_ Assignment

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

Doing for every client, every time will result in huge benefits over time.  Customers will see Pizza Hut as proactive, rather than reactive, and someone who is a trusted advisor.  The next time they need help they will be more likely to reach out to Pizza Hut, rather than suffer in silence.  They will also get more value from itsPizza Hut, which will make them less likely to churn when renewal time rolls around (Maarleveld, 2015).

Suggest best practices & new features

Most Pizza Hut has a large base of clients who haven’t fully adopted their solution or aren’t following best practices.  An inbound interaction (support call, product question) is a great opportunity to bring up new features or use cases that could improve the client’s experience.  Don’t worry if its suggestion isn’t directly related to the issue they called about.  Most customers will appreciate new ideas, and this can shift the tone of the conversation from negative to positive (Kaplan, 2017).

Share success stories

Take the time to find out what they are doing right and share their success with other clients.  Sometimes its marketing department will have already done the heavy lifting here, and Pizza Hut can take advantage of its customer story materials.  If not, don’t let that hold Pizza Hut back.  Pizza Hut can still (without revealing confidential details, of course) share success stories with customers who could benefit from those ideas.

Sign clients up for training & webinars

Many organizations offer regular webinars, and some even have formal training programs for clients.  If Pizza Hut thinks a client could benefit from one of its webinars or training classes, don’t just send them the link:  offer to sign them up.  Even if the training class has a fee associated with it, Pizza Hut can generally have that waived if Pizza Hut can demonstrate that it will result in the client sticking around (Kaplan, 2017)………….

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