Marlon CHAVES _S40066748_MANAGE QUALITY CUSTOMER SERVICE_ASSESSMENT 2

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Marlon CHAVES _S40066748 _ MANAGE QUALITY CUSTOMER SERVICE _ASSESSMENT 2 Q1. a. Select all relevant metrics to assess the performance of the customer service team Metrics Yes/no customer satisfaction ratio Yes customer retention rate Yes Net promoter score Yes First Response time Yes Sales per employee No Average resolution time Yes No of upsells and add-on sales Yes Number of complaints lodged Yes Number of complements received Yes Number of sales cancelations No Net profit ratio No b. Explain why monitoring your selected metrics in the table above is important to keep the quality and delivery standards. i. A customer satisfaction ratio; monitoring this ratio will give me an indication of level of with a satisfaction my customers are with the products they are buying from my store ii. Net promoter score, will show me whether my customers are telling others of the goods am selling, thus an indicator of my customer like of the goods am selling, thus an indicator of my customer loyalty or lack of it thereof. iii. First Response time, through this metric I will be able to know the amount of time a customer is responded to by customer care specialist iv. Average resolution time is an important metric in that it will show me the amount of time it takes to revolve a customer issue from the time it was lodged to when it was resolved. v. Number of complaints lodged; a greater number of complaints lodged will indicate how well the products and services am selling affects the clients thus looking into these complaints especially vi. Number of complements received, getting to know the number of complements leading to sales is of paramount importance as I can know number of sales generated from complements given vii. Customer retention rate; a higher customer retention rate indicates the business is doing fine and we need to capitalize on this to maintain the business.

Viii. No of upsells and add-on sales. By monitoring this metric, I will get to know if the business will get more sales by implementing the metric. Q2. a. Based on the summary of customer complaints shown above, identify all the possible issues about Sam’s performance. i. Refusing calls from his customers about after-sales service as it is a policy to notify a customer of warranty terms and periods of each product or service. ii. Offering more than a 10% discount on the tagged price to make loyal customers and repeated businesses. While the official policy stipulates 7% discounts to customer. iii. Missing to explain the warranty terms and conditions to the customers. iv. Offering different discount rates to one of the referral customers, while business policy stipulates offering equal rates to all the referral customers. v. Serving another customer before completing with the existing customer. This upsets the customer and at the same time is against company policy of ‘first- come, first-served’ rule regardless of the customer status and purchasing capacity. b. Undertake your own online research about Anti-discrimination Law and Australian Consumer Law and explain why Sam’s behaviour was inappropriate. Anti-discrimination Law: Competition and Consumer Act 2010, Section 22(1) Sam’s attitude in serving a second customer before finishing with the first regular customer can be imputed as discrimination respective whether the first client is a regular or not. This discrimination is against Australian consumer laws as it unconscionable conduct given that Sam need to know better to serve the first client before commencing to serve the second client. Australian Consumer Law: Inconsistent Discount Rates, will be construed as improper and will lead to legal consequences as the law enforcers fair trading prohibiting deceptive or misleading conduct from the business agents Inadequate Explanation of Warranty Terms, as a business, one need to make sure the terms do not unfairly disadvantage the consumer, and Sam is supposed to be aware of this as failing to adhere to this has legal consequences more so if the client decided to follow the matter to its legal conclusive end. Excessive Discounting Practices, leading to false and misrepresenting of prices is considered an offence. Sam by giving different discounts is in breach of this article ACCC regulating consumer guarantees (Consumer.gov.au).

Refusing Calls for After-Sales Service, ACL provides automatic guarantees to consumers applying/ regardless of the warranties one give or sell to consumers. Sam by failing to take call is liable for breaching the law by refusing to pick a customer call. c. Recommend at least three ways to support Sam to overcome his poor performance. i. Take Sam through company policies on how to handle customers especially the clause advising on all customers must be treated equally. ‘First-come, first-served’ rule always applying regardless of customer status and purchasing capacity. ii. Take Sam through the discount clause that states “ a maximum 7% discount of price tags or listed prices on the website can be given”, through this Sam will give customer a similar discount rate to forestall any dispute. iii. Insist on Sam to understand he must notify the client and must pick all the calls from the clients and give the client appropriate information the customer needs at the same time looking into the company polices to ensure they are kept. d. Recommend at least three ways for Sam to manage the customer complaints according to the organisational policies and procedures. i. Strengthening Warranty Information Communication, Sam must know the warranty clauses so as to help the customer by informing them appropriately which in turn will lead to happy customer, a happy customer -equals more sales and referrals. ii. Implement a Robust Complaint Resolution System, Sam must adhere to and implement all the complaints are resolved through an appropriate channel, in this case must pick all the calls and respond to all customer complaints. iii. Enhance Communication Regarding Discounts and Price Negotiations. Sam must make sure he follows all the protocols laid down regarding discounts and price negotiations so as to avoid giving different or dissimilar discount to potential or same customer. Q3. Explaining why the selected metrics must be used to improve the quality of customer service. 1st selected metric: A customer satisfaction ratio Reasons. This ratio measures how well the customers are satisfied with support they got from sales representatives; this metric must be used in measuring quality customer service since it gives satisfaction levels attained by prospective customers 2nd selected metric: Net promoter score Reasons

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Net promoter score shows whether customers are telling others of the goods, thus an indicator of customers like of the goods am selling, thus an indicator of my customer loyalty or lack of it thereof. Thus, to improve quality of customer service will need to put into consideration the net promoter scores gathered from the exercise 3rd selected metric: Customer retention rate Reasons A higher customer retention rate will indicate whether the business is doing fine through this one can ascertain whether we need to capitalize on this to maintain the business or not. Q4 a. Recommend at least five ways to collect customer feedback. i. Consultation with consumer and focus groups or industry professions to get the latest feed. ii. Conduct feedback activities through social media for example Facebook, X, Snapchat, this is more so to the digital generation that spend much of their time online iii. Invites experts and influencers to get feedback through appropriate channels such blogs, YouTube and other social media tools (Harsh Vardhan Nov 02, 2023 hiverhq.com) iv. Direct feedback through free surveys and polls, such as smart survey to intended customers to gather feedback to improve on the product or service. v. Direct feedback from customers through the official website of the organisation, emails, telephone calls. b. Explain how customer feedback can be reflected on products and services. i. Customer feedback Identifies shortcomings in products and services processes and strategies. Through this feedback organisations adjusts to the feedback and produces what the markets needs or demands ii. Customer feedback leads to a clear understanding of customer needs and expectations; thus, organisation aligns the product or service to reflect on what they received from customer feedback iii. Customer feedback identifies happy customers and this is reflected on products and services organisation come up with together with the strategies to retain them. iv. Customer feedback identify dissatisfied customers and feedback is reflected in ways organisations employs to resolve these complaints.

Q5 You are required to identify the benefits and drawbacks of outsourcing delivery systems and provide your decision on whether you need to adopt outsourcing. Benefits of outsourcing delivery system I will can reduce the current delivery time to 1.5 days from 3 days Customer complaints will reduce given the new delivery time. Drawbacks of outsourcing delivery system I will have no control on third parties’ system. And I will have to depend on third parties which does not give me business confidence business confidence in case of mishap. Your decision: I will adopt the outsourcing so as to keep my customers happy given that they will receive the same gods in 1.5 days instead oof the current 3 days. Q6. Explain the benefits of records management and Total Quality Management in customer service. benefits of record management in customer service . i. Faster response to customer queries, good records management guarantees teams have quick access to information relevant to a customer's inquiry, which in turn results in faster, more accurate replies to customer queries and complaints. ii. Minimizes the cost of customer service, through enhancing employee productivity, improving operational efficiency by cost-effective ways to store information this saves customer service costs and boosts the brand image of the company. iii. Facilitating better decision-making, through real-time data and record management systems providing rich, real-time data to decision-makers helping customer service competes effectively in a constantly evolving business landscape. TQM Benefits i. Customer satisfaction. TQM is important in increasing customer satisfaction, for business processes are created precisely to avail higher quality goods as the main concern, this in turn increases the company's value to the customers justifying a higher price for products and services. ii. Employee Motivation. TQM is people focused, as it Involves people, listening to and actively encouraging participation in contributing to improving the organization. The

focus is on building a culture where all staff feel comfortable in identifying failings and suggesting opportunities for the business to resolve. iii. TQM seeks to continually improve quality, while simultaneously driving down cost to the organization. Quality improvement is achieved via the application of fact-based analytical techniques, and continued improvements in product and process quality. This offers opportunity for the organization to increase market share, increase product selling price and increase profits says ( https://www.presentationeze.com/ assessed 27 Nov 2023)

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References: https://humanrights.gov.au/sites/default/files/GPGB_quick_guide_to_discrimination_laws_0.pd f https://www.presentationeze.com/blog/benefits-total-quality-management/ https://blog.mesltd.ca/how-customer-service-is-better-with-records-management https://hiverhq.com/blog/collect-customer-feedback#:~:text=Feedback%20can%20be %20collected%20proactively,and%20ultimately%20enhance%20customer%20s https://business.gov.au https://consumer.gov.au/sites/consumer/files/2016/05/0553FT_ACL- guides_SalesPractices_web.pdf

Marlon CHAVES _S40066748_MANAGE QUALITY CUSTOMER SERVICE_ASSESSMENT 2

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