CUSTOMER CARE

LS 108
 DEFINING CUSTOMER CARE
 Collins English Dictionary defines
Customer Care as follow:
• The work of looking after customers and
ensuring their satisfaction with one's business
and its goods or services.
 Oxford Dictionary defines customer care
as;
. The assistance and support provided by a
company to those people who buy or use its
products or services; (also, frequently
attributive) the department of a business which
provides this.
DEFINING CUSTOMER CARE
 David
Byrne (2001) defines
customer care as follows:
1. providing the customer with the
information and services that they need
2. meeting and exceeding customer
requirements
3. managing the relationship with the
customer
4. Delivering solutions.
Customer Care, Customer Service,
and Customer Experience
 The three terms are constantly used
interchangeably by many people to
refer to the same thing.
 The question though is that, do they
really mean the same thing? If they do
not then:
 What does customer service mean?
 What about customer care and
customer experience?
 Customer Service
 Morgan (2018) argues that the three above terms
refer to different things hence the need for people
to stop using them as one.
 The author defines customer service as the
assistance a company gives a customer.
 The assistance is given with an aim of increasing
a customer’s satisfaction usually through
answering question during product buying and
more particularly after sales.
 The assistance may come in form of assistance in
choosing a product, guidance on product usage,
product trouble-shooting or just finding out if they
Customer Experience
 This is the overall customer lifecycle
because it refers to all the interaction a
customer has with a brand.
 It covers all the touch points that a
customer has with a company starting
from making choices to transact through
using a product or service to follow ups
afterwards.
 Inother words, customer service covers
the emotional, physical, psychological
connection customers have with a
brand.
 Customer
 A customer is an individual or entity that
receives or consumes a product. They are the
people who need what a company has to offer.
 There are different categories of customers as
follows:
 Expected customers
 Actual customers
 Potential customers
 Loyal customers
 Discount customers
 Need-Based Customers
 Wandering Customers
 Impulse Customers
 Beneficiary customers
Categories of customers:

 Loyal customers:

They are customers that have an ongoing emotional relationship between them and the service providing
organization, company, brand, manifesting it by how willing a customer is to engage with and repeatedly
purchase from versus its competitors. Loyalty is the byproduct of a customer's positive experience with you
and works to create trust.

 Expected customers
These are customers that anticipate certain actions, behavior, or benefits from a
product or brand based on internal or external factors. These external and
internal factors form the ideas and thoughts related to the brand, and companies
benefit from meeting or exceeding them.

 Actual customers
An actual customer or simply a customer has already made a purchase from your
brand. While the potential customer is yet to make a purchase but has the intent
Categories of customers:

 Potential customers

A potential customer is someone who is willing and has the capability to purchase a company’s
product or service without being its customer yet. A group of potential customers are known
as 'target audience' to whom product or service are marketed.

 Discount customers

This type of customer seldom purchases products at full price and shops around for the best
markdowns. Discount customers are resilient to upselling, are usually the least loyal
segment of customers, and generally move on when better markdowns are available
elsewhere.

 Need- Based customers

Need-based customers are driven by a specific need. In other words, they enter the store
quickly, purchase what they need, and leave. These customers buy for a specific need or
occasion and are hard to upsell. It is important to note that need-based customers can be
easily drawn to other businesses.
Categories of customers:

 Wandering customers
Wandering customers, or “window shoppers,” often browse but don't
really have a particular brand in mind. They might not even be
looking for a specific product. Instead, these customers are enjoying
the shopping experience itself.
 Impulse customers
Impulse customers do not have a specific shopping list in mind and
purchase products spontaneously. In addition, impulse customers are
typically receptive to recommendations on products.
 Beneficiary customers
These are consumers of a company’s products or services, they are the
people or organizations directly using company’s products or
services and benefiting from them.
Keeping up with the changing
 BusinessesService
Customer are now faced with the fact that they
operate in a global village which makes it even
harder for them to compete hence the need for
constant improvement.
 Survival is no longer product dependent but
rather dependent on the amount of attention
paid to the needs of a customer and how well
they are met.
 In other words, the success of a business in
today’s markets is dependent more on services
that add value to products offered to customers.
 Building a relationship of trust with customers,
Why Organizations should be customer
 differentiate itself from the competition;
Oriented
 improve
its image in the eyes of the
customer
 minimize price sensitivity;
 improve profitability;
 increase customer satisfaction and retention;
 achieve a maximum number of advocates
for the company;
 enhance its reputation;
 ensure products and services are delivered
‘right first time’;
Why Organizations should be customer
Oriented
 increase productivity;
 reduce costs;
 improve staff morale;
 increase employee satisfaction and retention;
 encourage employee participation;
 create a reputation for being a caring,
customer-oriented company;
 foster internal customer/supplier
relationships; and
 bring about continuous improvements to the
operation of the company. - Cook (2008).
Customer Behavior
 This refers to the pattern exhibited by people
when deciding to buy something, choosing
where to buy, selecting a product, deciding on
the mode of buying, using the product, and
disposing it.
 Itencompasses where people like to buy things,
the period of time they like to do the shopping,
the way they use the products and more.
 So, this is basically about what people buy, why
they buy what they buy, where they prefer
buying from, and when.
 Customer Behavior
 In other words, customer behavior is the
process whereby individuals decide whether,
what, when, where, how, and from whom to
purchase goods and services, or
 It is broadly the study of individuals, or
organizations and the processes consumers
use to search, select, use and dispose of
products, services, experience, or ideas to
satisfy needs and its impact on the
consumer and society.
 Customer behavior determine the buying
process for each individual.
 Buying Process
 It is the decision making process through
which customers make choices regarding
market transactions before, during, and
after the transaction.
 Itcan be seen as a particular form of a
cost–benefit analysis in the presence of
multiple alternatives where a customer
tends to make evaluation based on
economical and emotional factors.
 The process is explained in form of steps
where completion of one leads to the
beginning of the next.
Buying Process
NEED RECOGNITION
E.G . Realizing you need a new pair of shoes
SEARCHING FOR PRODUCT
INFORMATION
E.G. web searching or asking friends about
shoes
PRODUCT EVALUATION
Using information gathered to pick one shoe
based on the criteria you have

PRODUCT CHOICE AND PURCHASE

You choose the best shoes and decide
where, when to buy
POSTPURCHASE PRODUCT USAGE
EVALUATION
Is the shoes what you expected? Meets your
needs?
DISPOSAL OF THE PRODUCT
In love that you buy a new edition?
Throwing it away? Donating it?
 Stage 1: Need Recognition
 Are planning on starting exercises such
that you may need a pair of shoes?
 Itis because of the realization of how we
make such decisions that marketers will air
sports shoes during football matches.
 They know that watching strong guys run
around for hours may inspire one to start
exercising to get strong.
 So, the adverts are there to stimulate the
recognition of the need you.
 Stage 2: Search for Product
Information
At this point the knowledge you have about
sports shoes depends on whether you ever
purchased a pair on not.
 Ifyou did, what are your feelings for your
past pair? Is it good enough that you need a
similar one (buying from the same brand)?
 If the feeling is negative, you need
information on the options available.
 Ifyou never owned one then you still need
the information.
 Sources could be review websites, online
 Stage 3: Product Evaluation
 Considering that the shoe industry is just
too big let alone the number of sports
shoes out there you will not be able to
evaluate every product available.
 As a result, you will develop an evaluative
criteria to limit the number of shoes to
look at.
 Evaluative Criteria: the characteristics you
find important in a shoe E.G. type of
material, color, ets.
Stage 4: Product Choice and
Purchase
 Here you decide which pair of shoe to
buy.
 At this point other issues decided include
where to buy (maybe prices differ at
different shops or the experience at other
shops during information was bad), how
to buy, and when to do it.
Stage 5. Post purchase Use and
Evaluation
 Is the pair of shoes what you expected>
 If the product does not meet a customer’s
needs the likely result is Post purchase
dissonance (buyer’s remorse).
 Do you regret buying? Do you think you
should have looked further?
 Are you planning on throwing away the
product or you want to go and return it?
 The other results would be you never
returning to the shop again or even telling
everyone you know to not shop where you
bought the pair of shoes.
Stage 6: Disposal of the Product
 This stage is concerned with how people
dispose of used products.
 Customers are conscious of the need to
protect the environment hence the effect the
remains of a product would have on the
environment would have an effect on how
impressed a customer is.
 Asa result, it is very important if a product has
directions for disposal or is re-usable so as to
assure people of its environmental friendliness.
 Customers are bound to buy more of such a
product than one that gives them trouble to
Importance of Customer Care

Why do you think businesses and other

service providers should pay enough
attention to customer care?
Customer Retention:

Customer retention is a measure of how many customers stay with your

business for the long term. It’s what demonstrates your business’s ability to
stimulate customers to make repeat purchases and spend more money on your
products and services over time.
Ask yourself (and your team):
What brings your users back to your product at a sustainable frequency?
What value are they finding within your offerings that they can’t get elsewhere?
How would you retain a newly acquired set of users within the first week of
usage? (Sam Edwards 2022)
Customer Retention: (definition
continue)
 A company’s ability to turn customers into
repeat buyers and prevent them from
switching to a competitor.
 Customer retention indicates whether your
product and the quality of your service
pleases your existing customers.(Sarah
Olson 2024)
 Customer acquisition: Customer
acquisition refers to the process of
bringing in new customers or clients for
your business. This is typically achieved
when a customer purchases your
product for the first time, or subscribes
to your service, and it is, in many ways,
the central goal of a company.
 Customer Churn: Customer
churn (or customer attrition) refers to
the loss of customers or subscribers for
any reason at all.
Customer churn is the percentage of customers who stopped purchasing your
business’s products or services during a certain period of time. Your customer
churn rate indicates how many of your existing customers are not likely to make
another purchase from your business.
A high churn rate is something that all businesses want to avoid. A high churn
rate indicates that your customers are not satisfied with the products or services
you’re offering. Maybe you’re not marketing to the right audiences. Or perhaps
you’re not taking into consideration your customers’ feedback. If you see that
your business has a high customer churn rate, that means it’s time to make some
changes so you can improve customer retention and lower your churn rate as
quickly as possible.
Key factors of customer retention:

1.Gather and respond to customer

feedback:
Gather customer feedback often. Customer
feedback is one of the most valuable tools to
increase customer retention and reduce churn
rates. Respond to Customer Feedback, how
clients feel about your business, product, or
service plays a critical role
in customer retention
2. Customer experience:

A superior experience creates the necessary

trust for your customers to come back and
keep engaged with you. So make sure you
invest time and effort into the entire customer
journey to meet their expectations. Obviously,
those customers who believe your offering is
an absolute bargain (in terms of product
quality and price) will be much more likely to
stay with your brand.
3. Product quality:

 Product quality refers to how well a

product satisfies customer needs. If a
Customer is satisfied with the product
he will surely repeat the purchase
rather than buy from someone else.
4. Know your customer:

 One of the steps to retaining customers is to understand who

they are, what they need, and what they expect from your
products. You can use various methods to gather customer
feedback, such as surveys, interviews, reviews, analytics, and
social media. By knowing your customer, you can segment
them into different groups based on their behavior,
preferences, and goals. This will help you tailor your product
features, messaging, and offers to each segment and increase
their satisfaction and loyalty.
5. Incentivize loyalty:

 Increasecustomer retention by
rewarding customers who are loyal to
your company. By showing customers
you appreciate their business, you
provide them with yet another reason
(besides your great product) to stick
around.
6. Build trust:

 the definition of trust is the "firm

belief in the reliability, truth, ability, or
strength of someone or something."
Reliability is a key factor in building
trust, so your company should
consistently deliver value to
customers.
7. Excellent customer service:

 Excellent customer service is a game-

changer in all cases that strengthen
the relationship and retain customers
in the long run. Consumers are likely to
come back and spend time with the
brands that provide top-notch
customer service.
Importance of customer retention:

1.Higher retention leads to higher

profit:
Higher retention rates are directly
connected with higher profits. In fact, as
the Harvard Business Review explains, “you
don’t have to spend time and resources
going out and finding a new client – you
just have to keep the one you have happy.
2. Existing customers are likely to spend
more on your products: Keeping customers
satisfied helps to continue building a customer
base for your business. And when your
existing customers are satisfied, they’re more
likely to buy from you again. It’s far more
cost-effective to persuade existing customers
to make a repeat purchase than it is to
acquire a new customer
3. Satisfied existing customers will
refer others to your business:
Your existing customers are your
greatest advocates. If they’re happy
with your products and pleased with
your service, they’ll refer others to your
business, authentically and naturally.
 Customer Satisfaction
 Customers usually have expectations (what
they would like a product or service to do for
them).
 If a product or service does what its was
expected to, it is believed that customers are
likely to be satisfied with it.
 It is however argued that satisfaction is more
complex such that a product or service alone
can not be the reason for it.
 Satisfaction is a psychological feeling resulting
from the comparison between what a customer
expected and what a product or service have
 Customer Satisfaction
 Customer satisfaction therefore could be seen
as a the relationship between expectation and
performance.
 It is however necessary to never undermine
the value of customer service which would
badly hurt the likeliness of a customer being
satisfied.
 Satisfaction is transactional if it is related to a
recent single interaction with a
product/service/business.
 On the other hand, it is cumulative if it
involves overall experience with a
 Customer
Satisfaction
 For the purpose of this class, customer
satisfaction will be defined as a state
where customers and/or stakeholders are
happy with the levels services/product
performance they have experienced,
because they have met or exceeded the
service/product performance levels that
they expected and considered as
reasonable value for money.
 Customer Satisfaction Elements
 Product/Service
 Personal
interaction with a business or
treatment received/ sales
 Timely delivery of product or service
 After sales services
 Culture
 Location
THE END
 References
Byrne, D. (2015). A Customer Care Charter : the theory and practice of
customer care for law librarians as suppliers of services as well as
customers. Legal Information Management, 1(3), 40 – 44.
Collins English Dictionary (nd). Customer Care. Retrieved on
Tuesday 3rd of April 2018 from:
https://www.collinsdictionary.com/dictionary/english/custome
r-care
Cook, S. (2008). Customer Care Excellence: how to create an effective
customer focus. 5th Ed. London: Kogan Page Limited
Morgan, B. (2018). Customer Experience Vs. Customer Service Vs.
Customer Care. Retrieved on Tuesday 3rd of April 2018 from:
https://www.forbes.com/sites/blakemorgan/2018/03/05/customer-
experience-vs-customer-service-vs-customer-care/#2a09a6b64167
Oxford Dictionary (2018). Customer Care. Retrieved on Tuesday 3 rd of
April 2018 from:
https://en.oxforddictionaries.com/definition/customer_care