Introduction:
In this assignment, there is going to be a discussion about a few contrasting businesses. The contrasting businesses that I have chosen are Tesco and Mcdonald's. There are multiple reasons why I have selected these businesses, the reasons for me selecting Tesco are because I do regularly shop there with my family members and I see that they always have new products which are of a wide range for all ages. Having a wide range of products does make them a supermarket which is in most countries, but Tesco is huge within the United Kingdom. Tesco is extremely popular for groceries, they have large competitors which are Asda, Lidl, Aldi, etc. They gain customer loyalty by always making sure to give great customer service, they also have a customer loyalty card. The reasons I chose McDonald's are because of their great customer service, they are the biggest fast-food franchise in the world whose customers are of all ages. McDonald's competitors are Burger King, KFC, Subway, etc. Their fast-food franchises also offer great customer service which makes their customers loyal.
What is Customer Service?
Customer Service is the act towards customers from an employee whilst they are buying a product or service and after buying it. These are the needs of an organization to their customers when helping them. One great customer service experience can give the company a good reputation.
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Why are customer services important?
Customer services are important due to helping a company gain loyalty from their customers which will also improve a business's reputation. All Staff is trained thoroughly to know fully about all products and services they provide to then give customers the best customer service possible, also they must know how to deal with the inquiries from all the customers.
Do customer services affect Tesco?
Customer service does affect Tesco's business and reputation in many ways. The first way is through word of mouth, this is very damaging for any type of business and its reputation, and this without a doubt will affect the sales and profits of any company. Word of mouth is an extremely easy thing to do to a business, for example, if Tesco does not give good customer service, then people may tell their family and friends, and this will then get around the location where Tesco is based and potentially further. To prevent this from happening Tesco has trained their staff very well to handle different situations which means their customers will receive excellent customer service which will help keep their reputation.
Do customer services affect McDonalds?
Customer services do affect McDonald's business and reputation in many ways, this will always have a serious impact on such a fast-paced place that offers a range of services. Employees must always offer great customer service, positive services, and fast service too. If the customers are happy, they will be happy to buy again which helps McDonalds to result in higher profits.
The different types of customers:
There are two different types of customers these are internal and external customers.
Internal customers are the customers who will be directly connected to an organization, some examples of Internal customers are departments, employees, and shareholders. The employees of Tesco will give good customer service by treating the customers how they would like to be treated and also by being polite, kind, and friendly which will make the customers feel welcome to come back another time.
External customers are customers who buy a company's products or services; these are the people who are not directly connected to an organization. Some examples of external customers are customers, users, and stakeholders. Stakeholders of Tesco or Mcdonald's would be able to help these give great customer service by telling them if their customer services are good or even sending in mystery shoppers which will help the businesses with customer services.
The different approaches to customer services:
- Face-to-face- this is when there is a face-to-face talk between staff members and customers physically. The best thing about this is that this is the most personal approach out of them all.
- Online- this is when there is online communication between customers and staff members. This can be through social media or even a live chat. The best thing about this is that it can be accessed anywhere and at any time of day.
- Phone- this is when an employee and customer communicate through the phone. The thing about this is that it is only a limited amount of time which is bad for some customers.
- Post- this is when the customers post a letter to a company. This will be time effective due to having to travel to post the letter.
The effects of customer services on different businesses:
Customer service is extremely important for any business as a customer will give feedback that the business can use to get better. If the business supplies bad customer service then it can give them a bad name and reputation. However, if the customer service is positive the purchasers can leave a positive review of the shop which might lead to stronger customer loyalty and a gain in profits. This is positive.
Mcdonald's always tries to better their customer service, this is for them to gain a far better reputation than they already are maintaining. The way they have done this in the past is by increasing staff wages and improving training. Mcdonald's also supplies coupons to the public to maintain satisfaction.
Most methods of communication are used by McDonalds and Tesco which is great for them due to customers having multiple choices of communication with the companies which makes it easier for them to get into contact when needed. For example, If the customers want to complain then one customer may feel that using email is the best process for them, but another customer may feel over the phone is best.
To contact Tesco then email or telephone is what they use, they do have separate line numbers for different customer conveniences. To contact McDonald's the website, post, and telephone are what they use.
Benefits of good customer service:
If a business gives good customer service, then they will benefit from this, one main benefit of giving good customer service is that they will receive good customer loyalty, another benefit is that if they get a helpful review from the customers this will then motivate other customers to visit their store which will gain them more customers. The next benefit of having good customer service is that the store will increase in sales and profitability. All these benefits can lead to having an advantage over competitors and a better work environment for the employees.
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