2.1 Customer Care

Question 1

Benefits of good customer care

Answer 1

-Employees feel more motivated and therefore more productive
-A motivated workforce means a reduction in staff turnover
-Loyal customers and recommend the company to friends
-Fewer complaints
-Good reputation will attract new customers and new staff
- New customers means that the organisation increases its market share
- Good customer service can give a competitive edge in the market
-Reduced costs from returns

Question 2

Costs of poor customer service

Answer 2

-Decrease in customer loyalty
-Bad publicity
-Failure to attract new customers
-Increase in complaints
-loss of competitive edge
-Demotivated and demoralised staff

Question 3

Impact of poor customer service

Answer 3

-Decrease in customer loyalty ➡️Reduction of sales/profits
-Bad publicity/reputation ➡️Difficulty in recruiting staff
-Failure to attract new customers ➡️Falling market share and difficulty to expand
-Increase in complaints ➡️Compensation, refunds, reduced competitiveness

Question 4

Mission statement

Answer 4

-It sets out the aims and values of the organisation
-It explains how an organisation will achieve its aims
-A cross between a slogan and a summary of the organisations aims
-Most mission statements are brief

Question 5

Mission statement
Advantages

Answer 5

-Market a positive image; improves reputation
-Inform employees of the goals to work towards
-Can encourage brand loyalty; repeat custom
-Attract high quality staff in the recruitment process
-Attract customers who support ethical business; increasing sales