CUSTOMER SERVICE

10/30/2011 Creating a Win-Win

CUSTOMER SERVICE

1









C S C W-W

Libby Ehrig



CUSTOMER SERVICE

2
Customer Service: Creating a Win-Win

What truly sets a financial institution apart from the rest? Is the success of a bank solely
based on interest rates or they types of products offered? Are people drawn to a business
because of flashy marketing or sales gimmicks? Individuals and organizations are faced with a
vast array of choices, and because of the profusion of alternatives, customers are showing less
loyalty to one institution (Curewitz, 2009). As interest rates are historically low because of a
weakened economy, banks must determine how to grow their customer base and assets. In an
age of overabundance, where competition is fierce and products are all too similar, financial
institutions must focus on creating a quality experience for their customers (Blanchard &
Bowles, 1993; Brown, 2007; Curewitz, 2009).
W and exceed their expectations consistently? First
and foremost, financial institutions must
!
Sethi, & Mukherji, 2009). Outstanding customer service yields happier customers who are more
than just satisfied; they a 8 8 8 become
customers for life, so committed to the organization they become its advocates and primary
marketing strategy (Blanchard & Bowles, 1993). Word of mouth advertising is more powerful
than any print material or sales gimmick, and organizations must remember that their best ally
and promoter is their customer (Blanchard & Bowles, 1993).
Banks must also provide quality customer service to differentiate themselves from the
competition (Kaufman, 2009). As previously stated, competition is intense and the products and
CUSTOMER SERVICE

3
services offered by banks or credit unions are not unique. For example, an individual could
open a free checking account at Wells Fargo and a free checking account at First American Bank
and find that the products are incredibly similar. There may be some variations in the amount
of fees and how they are assessed, but when an individual looks at the bottom line, the two
free checking account products are about the same. Because of this abundance of similar
products, customer service may be the sole factor in determining which institution is right for
the customer (Blanchard & Bowles, 1993).
A great example of the power of outstanding customer service is Southwest Airlines.
Last year, Southwest Airlines flew more passengers than any other United States airline and
attained record revenues, all while off M
2010). Their customer service W
Customer Service company that happens to fly planes (on schedule, with personality and perks
Southwest Airlines, 2011). C 8 l
l at its inception appeared risky, as $1.7 million of airline revenue was
generated in baggage fees during the first half of 2010 alone (Mouawad, 2010). 8 l l
is the only program of its kind among major airlines and was developed after passenger surveys
indicated that both business and leisure passengers would prefer an airline carrier that required
no fees in addition to a ticket (Mouawad, 2010). While it was an uncertain move, simply
listening to their customers paid large dividends 1 8 l l contributed to a
S revenue in the first half of 2010 (Mouawad, 2010).
W 8 l l S
experience model has also improved business and customer relations (Mouawad, 2010). Its
CUSTOMER SERVICE

4
vision of customer service includes creating a fun and memorable environment for customers;
employees strive to amuse and entertain, often throughout hectic situations (Mouawad, 2010).
S in the
case of one flight attendant made famous in a YouTube clip, break M
2010).
Southwest Airlines embodies the win-win service model described by Di Mascio as

p. 65). This model of customer service is vastly different from the other two recognized models,
efficiency and means (Di Mascio, 2010). When customer service is oriented toward the
efficiency model, customers are given what they asked for as quickly as possible (Di Mascio,
2010). Little is invested in the consumer and the quality of the service and interaction is
evaluated by the organization, not the customer (Di Mascio, 2010). Related to the efficiency
model for customer service is the means model, which essentially views customers as means to
an end (Di Mascio, 2010). Customer service representatives in this model are evaluated on
mere outcomes, such as product sales and referrals (Di Mascio, 2010). Therefore, their level of
service is not important, as long as quotas are reached and sales are closed (Di Mascio, 2010).
The win-win model contrasts sharply with both the efficiency and means models
because it focuses on each customer as a unique individual (Di Mascio, 2010). The win-win
service model truly puts the
u M , p. 73).
Customer service representatives following the win-win model are tasked with anticipating

CUSTOMER SERVICE

5
time to build a collaborative relationship with the customer (Di Mascio, 2010). In the win-win
model, the customer determines the quality of the service since it is not based solely on
efficiency and outcomes (Di Mascio, 2010).
As Southwest has discovered, customers are searching for quality, deals, and service in
every interaction (Mouwad, 2010. Every customer is looking for quality services and products,
especially in light of the economic crisis (Kaufman, 2009). Individuals are also looking for the
one-on-one attention that win-win service provides, as well as more appreciation and gratitude
when making purchases or being served (Kaufman, 2009). l 8 8
parable Raving Fans, an Area Manager learns about customer service through visits by his Fairy
Godmother. Together, they search high and low for the best in customer service, learning
several lessons along the way (Blanchard and Bowles, 1993). As Charlie, the fairy godmother in
Blanchard & 8 s S
A
C re 1993, p.11).
W less loyalty, and will move
along to another institution or product when something better comes along (Blanchard &
Bowles, 1993; Curewitz, 2009). C -win service is crucial
to maintain loyalties and reach new customers (Blanchard & Bowles, 1993). Much of the
success of Southwest Airlines is due to customers who return time and again, expecting the
low cost fares and exceptional service (Mouawad, 2010).
Developing the win-win relationship starts with communication (Jain, et. al., 2009). Any
time a customer interacts with a customer service representative, the customer learns more
CUSTOMER SERVICE

6
about the organizationits values, products, and services (Jain, et. al, 2009). Each customer
touch point
because g about the organization
destroy consumer- ! A customer service representative
has an incredibly crucial task because often depends on their service
delivery. Customer service representatives interact and collaborate with customers in a variety
of ways, including face-to-face, over the phone, and through email, utilizing both verbal and
non-verbal communication (Jain, et. al., 2009; Brown, 2007).
A customer service repr
a customer enters the building or telephones an organization (Brown, 2007). The first major
component in both face-to-face and telephone interaction is the customer service
sponsiveness (Brown, 2007). When customers walk into a business, are they
greeted promptly, with politeness, warmth and sincerity? Is the telephone answered quickly
with a clear, pleasant tone of voice? As Brown (2007) n han
CLC
cust p. 12). Greeting the customer sounds like a basic, common sense
premise, but it is incredibly crucial in building rapport from the outset (Brown, 2007).
When welcoming and engaging a customer, service representatives must keep in mind

battling your own p (Brown, 2007, p. 12). Are they greeting the customer immediately,
but appear insincere or distracted? Customers can sense disingenuousness, and are often
turned off by such behavior (Brown, 2007). Brown (2007) recommends gratitude as the
CUSTOMER SERVICE

7
antidote for insincerity. When customer service representatives realize that a customer chose
their establishment, they should feel a sense of appreciation toward the customer, and
(Brown, 2007). Jain, et. al.
(2009) reinforce

p. 57). These affective traits are
also crucial in phone and email communication as well, as maintaining common courtesy and
decorum are essential in such interactions (Agnew & Hill, 2009).
Upon greeting a customer, whether in person or not, customer service representatives
must first determine wants and needs (Brown, 2007). Brown (2007) notes the
P l
conversations, such as commenting on the weather or complimenting the cust can help
start building rapport (p. 13). Active listening is also essential in delivering quality customer
service (Brown, 2007). To , customer service
representatives must rid themselves of distractions, listen to the customer intently, and not be
afraid to ask questions for clarity (Brown, 2007; Jain, et. al., 2009). This includes looking the
customer in the face, taking notes if necessary, and using responsive body language, such as
nodding the head (Brown, 2007; Jain, et. al., 2009).
C and
body language to gauge their emotionality (Brown, 2007; Jain, et. al., 2009). Listening provides
opportunities for the customer service representative to empathize with the customer and
more fully understand where they are coming from (Brown, 2007; Jain, et. al., 2009). This step
CUSTOMER SERVICE

8
can help customer service representatives diffuse their own anger or frustration toward a
discourteous or upset customer (Brown, 2007). Once a service representative steps back from
the situation and observes what is really occurring with the customerthe factors influencing
they can better identify with the customer (Brown, 2007).
C
and needs, he or she can better serve the customer by providing tailored products and services
8 8 resentatives can solve
problems in a most efficient manner
(Jain, et. al., 2009, p. 59; Brown, 2007). Understanding that different
customers possess different needs is the heart of the collaborative win-win service model and is
(Di Mascio, 2010; Blanchard & Bowles, 1993).
The win-win model is clearly the most effective customer service model, focusing on the
collaborative relationship between a customer and a service provider (Di Mascio, 2010).
Customer service representatives must fully engage the customer by being responsive, actively
listening, and also asking questions for clarity (Di Mascio, 2010; Brown, 2007). Additionally,
service representatives must be mindful of their own attitudes and practice self-reflection to
remain customer (Brown, 2009). As customer service representatives spend more time
ing
the individual with the best products and services (Brown, 2009). In the end, the customer
leaves feeling more than just satisfied. Delivering win-win service is crucial in these difficult
economic times, differentiating a business from the competition, increasing revenue, and
ultimately promoting sustainability for the organization.
CUSTOMER SERVICE

9
References

Agnew, D. S., & Hill, K. (2009). Email etiquette recommendation for today's business student.
Allied Academies International Conference: Proceedings of the Academy of
Organizational Culture, Communications & Conflict (AOCCC), 14(2), 1-5. Retrieved
from
http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=47108086&site=eds-
live&scope=site
Blanchard, K., & Bowles, S. (1993). Raving fans: A revolutionary approach to customer service.
New York: William Morrow & Company, Inc.
Brown, L. (2007). Stop ignoring your customer: Six expert techniques to building customer
rapport. American Salesman, 52(3), 11. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=f5h&AN=24255585&site=eds-
live&scope=site
Curewitz, B. (2009). Retrieved October 24, 2011
from http://chiefmarketer.com/marketing-roi/0127-consumer-loyalty/
Di Mascio, R. (2010). The service models of frontline employees. Journal of Marketing, 74(4),
63-80. doi:10.1509/jmkg.74.4.63
Jain, N., Sethi, A., & Mukherji, S. (2009). Impact of communication during service encounters
on customer's perception of organization image. Paradigm (Institute of Management
Technology), 13(1), 56-65. Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=39755680&site=eds-
live&scope=site
Kaufman, R. (2009). In challenging times, service matters. Retrieved October 17, 2011, from
http://www.indusbusinessjournal.com/ME2/Audiences/dirmod.asp?sid=&nm=&type=P
u
CUSTOMER SERVICE

10
blishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87
F791&tier=4&id=82E09DC9F1084275BAF7059742D2B1F0&AudID=EEB7C7075C2E
462F969310BCC0CAA619
Mouawad, J. (2010). Pushing 40, southwest is still playing the rebel. Retrieved October 18,
2011, from
http://www.nytimes.com/2010/11/21/business/21south.html?pagewanted=all
Southwest Airlines. (2011). Customer service. Retrieved October 18, 2011, from
http://www.southwest.com/html/customer-service/index.html