Impact Of Legislation And Policies On Customer Service In Business Organizations

Consumer Protection Laws and Customer Service

1. The term Quality is about developing organization in the manner that it achieves its desired objective for its stakeholders by improving its products and services, business methods and practices to ensure organization’s productivity and effectiveness. In business terms managing quality is about constant efforts to pursue excellence. Conveying quality in organisational process stands for recognizing the stakeholders, considering their desires and requirements and meeting or exceeding those needs (Mok, et al. 2013).
 

2. The common service standards for the provision of quality service are: 

• Improving the quality of the product or service by constantly listening and taking feedbacks from customers to identify and recognize their needs and requirements and persistently working on meeting or exceeding the customer desire (Gorla, et al 2010).
• Anticipating customer needs and allowing the customers to get maximum value from the product and service. 

3. The two best approaches to customer service standards are- 

• The main focus of the business objective should be customer centric. Organization with all decisions, products and services based on customer focus, the customer service excels automatically as in this kind of customer driven businesses, the management, employees, products, etc remain focus and dedicated towards satisfying customer needs and expectations (Wilson, et al 2012).
• One of the best methods to keep in touch with the customers is by follow up communication or customer feedback process. According to recent study, scholars states that feedbacks and follow-ups are one of the most significant and successful methods to develop customer loyalty as by this way the organizations can identify and recognize the important and critical aspects of service and emphasizes on that to improve and meet customer expectations (Jahanshahi, et al. 2011). 

4. In the twenty first century business organizations are emerging as more socially responsible to achieve competitive advantage in the market. The reality in the business world is diversity in workforce as well as in customers. In the age of globalization, workforce diversity is a prospect for business organizations to develop and nurture a competitive advantage. As, managing and controlling diversity often develop competencies and challenges as employees coming from different socio-cultural-political  background has different perspectives and principles as a result the organization has always unique solutions to solve problems (Snell and Bohlander, 2010). Also, equal employment opportunity will create employee commitment which reflects on customer satisfaction. As, employees with confidence will be more productive and involved in his job role and responsibilities. 

5. In the contemporary business organizations, human resource department emphasizes on maintaining equality within the organization focusing on anti-discriminator legislations in workforce. Customers are more aware and knowledgeable than ever before, so organizations who violates anti-discriminatory polices get negative publicity in the media as a result it has a direct negative impact on customer satisfaction (Krislov, 2012). Also, practicing equality in workplace and discouraging any discrimination also facilitates in employee morale and employee engagement as a result the productivity of the workforce increases. A committed and dedicated employee results in decline in absenteeism and turnover and also to improved customer service, efficiency and sales. Organizations will not at all employ an employee who unengaged and de-motivated employee for attaining a customer. The most efficient and valuable customer experience is developed by building a relationship with the customer where the customer feels relaxed and valued. So, to achieve that, employees should be engaged, concerned and contented with their job roles and responsibilities.

6. As the competition in the market are growing, business organizations often adopts unfair means to attract customers and increase sales. Competition in business among business organizations demanding to accomplish objectives such as larger share of market, increasing profits, increased sales figure, etc often force organizations to lower their prices with compromising with the product qualities. Thus, buyers often do not get the value that they were promised by the producers and as a result feel cheated. Customer legislation are meant to safeguard customer interest and. For instance, Consumer Act 2015 is a legislative framework which encompasses key consumer rights covering contracts for products, services, digital content and the policies recounting terms in consumer contracts (Kumar and Reinartz, 2012). The Consumer Act 2015 protects customers when they come into contracts. Thus consumer legislatives forces business organizations to be fair and deliver what they had promised to the consumers in terms of products as well as customer services.

Privacy Laws and Customer Service

7. In the age of digitalization, individuals have become netizens where the online internet activities are growing every day in a significant manner. As a result more and more information (personal and professional) are shared for online activities like shopping, social networking, etc. Thus, the risk of data beaching and privacy issues are increasing. The privacy legislation will facilitate businesses to safe guard user details of customers. Under privacy law, the details about individual’s data and information are protected under the right of privacy (Svantesson and Clarke, 2010). Although these information are often analysed by the business organizations to understand customer trends to identify and recognize their preferences and desires for improving customer services.

8. Industrial relations legislation is a set of rules and policies that business organizations follow between the employer and employee. It generally associated with employee welfare and health related issues. The industrial relations legislations usually carry out a range of purposes that is related to setting minimum wages at workplace, dispute resolutions, anti-discriminatory and equal opportunity at workplace, employee entitlements and awards, safety at workplace, etc. So, industrial relations legislation helps in maintaining equal and fair opportunity at workplace for employees to prosper within the organization, which facilitates employees to become involved and committed in their job roles and responsibilities. An involved and responsible employee emphasizes on keeping the customer happy by recognizing their needs and demands. Thus, industrial relations legislation has an indirect impact on customer service in an organization.

9. The work and safety legislative encompasses polices where the employers are bound to follow certain rules and regulation regarding health, safety and welfare of the workforce as well as other stakeholders at workplace during work hours such as customers, suppliers, visitors, etc. Organization acting maturely on maintaining workplace safety definitely will be viewed as more responsible towards his stakeholders (Hughes and Ferrett, 2011). As a result this will have a positive impact on the customers. All maintaining health, safety and welfare during work hours will also facilitates employees and customers motivated and it is a fact that motivated employees are more committed towards their customers. Thus, work and safety legislative has a direct impact on customer service.

10. Environmental awareness and constructive business processes shape a significant part of policy for business organisations (Yazdanifard and Mercy, 2011). Customer service might have an effect on environmental performance by demanding further resources. Environmental policies may possibly have effects on customer service by introducing limits on how it can be conveyed. Generally, the relation among customer service and environmentalism requirements needs to be reconsidered so that suitable alterations could be made. Environmental and sustainability understanding should be encouraged continuously so that employees, customers and other stakeholders are reminded of their assistance and responsibilities.

Impact of Industrial Relations Legislation on Customer Service

11. The code of practice of any business organization consists of the principles that the employer as well as the employers are bound to follow in everyday business operations. These principles are planned to direct the decision making process of the organization and employee behaviour. Some of the most common ethical practices in businesses regarding customer services are fair trading, anti discrimination, equal opportunity, contract law, health and safety at workplace and standards (Council, 2010). One of the most basic rules in building long term and loyal relationship with customers is by developing strong organizational reputation for reliability which can be achieved by practicing internal ethical principles. For instance, all employees must take part in the half yearly training focusing on organizational ethical practices. Also, establishing strong ethical processes for the customer support team will allow the organization in creating a transparent work process.

12. The two basic principles of consumer behaviour are: 

• The business organization should utilize easy to remember triggers to attract customer attention. Trigger is an aspect of a product or service that can be easily recognizable and memorable (Kumar, 2010). With effective triggers, products or services are more likely to be remembered by a potential customer and are also likely to share with peers (Solomon, 2014).
• Products that have more practical value usually attract more customers. So, the marketers should plan strategic marketing promotions where the actual practical values of the products or services are shown.  

13. The two techniques for customer needs report are:

• Reviewing and analysing past surveys, customer feedback and interviews and customer support call logs are one of the most effective and cost cutting methods of customer needs report analysis.
• By trapping and analysing customer journey map the organization can understand the process that a customer goes through during associating with a product or service. A customer journey map is a visualization of the process a customer goes through when engaging with a product or service (Heller, 2012). It obtains development mapping to a new level by counting numerous segments and touch points an individual go through — from prospective buyer to loyal customer. It’s a document supposed to combine uneven efforts and recognize points of resistance and prospects for development.

14. Public relations or PR and customer service are two important aspects that are present in any business organization. The PR is generally associated with the outer face of the organization like media, promotions, etc and the customer service is associated with what the customers feel about the product or service (Skinner, et al. 2010). PR is to establish long term and loyal customer relations by maintaining good business reputation. The PR manager should enthusiastically promote and support brand management, communications and advertising agencies. The PR should make efforts to involve the customer experience processes. According to scholars, the consumers manipulate the market trends so the PR should analyse the customer needs and desires to offer better customer service.

15. Promotion is one of the most important aspects of marketing management. It is the process by which a business organization reaches its target customers through various activities like advertising, campaigns, demonstrations, etc. Promotion allows the business to aware the target audience about the value and features of the product or services. So, promotion is a marketing activity through which organizations bring customers attention towards a product or services. The corporate strategy of a business organization should be aligned to its customer service to ensure that the target audience is receiving uniform message through the promotional activities. When promotional activities are not aligned with customer service goals then it results in miscommunication and degradation of customer satisfaction (Cengiz, 2010).

Impact of Work and Safety Legislative on Customer Service

16. One of the most effective ways to handle customer complain is through effectively and actively listening and understanding the core issue. This is the primary step in the handling customer complain. The main objective is to not get defensive and understand what is the issue that bothers the customer and leading to his dissatisfaction (Ang and Buttle, 2012). In the process of listening, the customer service expert should repeat back to confirm so that he looks interested in the issue.

17. Serving customers with special needs sometimes requires good communication and emphatic techniques to understand their needs and desires. Although communication and mobility challenged customers generally have the same needs as other customers while the customer service employee should utilize his common sense and act respectful, understanding and patient as sometimes it may a take longer time to communicate depending on the individual’s impairment. Business organizations dealing with customers with special needs should employ well trained employees or a staff who has skills and knowledge about handing with customers with special needs (Schmitt, 2010). For instance, it is important to show respect to a customers with special needs, like the employee should communicate directly with the customer who uses a wheel chair, rather than communicating with the person accompanying him.

18. Employees interpreting information regarding customer service often needs to utilize mathematical information like graphs, charts, reports and statistics.   

19. The customer satisfaction starts with human resource because it has a direct impact on hiring the right candidate, training them and treating them effectively in workplace has a direct relation with the quality of the customer service that is provided in workplace. In the contemporary business organizations, the role of the human resource managers are increasing in developing customer friendly environment in the workplace through proper training and development and setting right attitude of the employees who are at the front of the organization serving customers (Heinonen, et al. 2010).  

20. Customer feedbacks are one of the essential communication tools that business organization utilizes to analyse and interpret customer needs and desires (Vinchurkar and Nirkhi, 2012). There are a number of technical strategies by which a business organization can acquire  customer feedback, most common are- 

• Conducting customer surveys that allow the organization to understand what customers actually think about the product or service.
• Behavioural insight survey allows the organization to conduct surveys on a personal, behavior-driven basis.
• Telephonic survey has been proved as one of the most common and highly reached customer feedback process as it is highly personalized and easy to reach the customer at larger basis.
• Customer feedback form is one of the traditional techniques involving customer survey processes.

21. The two best reports to access to review customer service levels are:

• Reviewing all kinds of written responses from the customers like letters, complains, emails, live chats, etc gives proper insight important information regarding the customer service team in effective handling customers.
• Asking customers to give feedback about the product or service as it is an efficient method to identify potential problem areas.

1. The BizOps Enterprise is facing some real issues regarding the customer service team where most of the customers are unsatisfied and the organization is flooded with inappropriate attitude and approach of the customer service team. The organization’s customer service team fails to adopt the professional courtesy while dealing with customers as they lack motivation and soft skills. The customer service team fails to understand the core requirement of the customer, lack of product knowledge and successfully forwarding the issue to the concerned person as a result miscommunication and crisis are taking place. The organization fails to recognize the training and development needs of the customer service team which are not included in the policy and needs to be included in the policy of the organization to improve the level of service that is provided by the employees to the customers.
2. The BizOps Enterprise’s customer service lacks the understanding customer perspectives and needs. In both the cases of customer complain, the customers are highly dissatisfied with the customer service level they received in The BizOps.
3. Customer 1.

Customer complain ref number- ABC10009

Name of the Customer: Mrs. Jones

Customer Contact Details: 0125-6943 0142

Date of Complain received: 28/03/2017

Environmental Policies and Customer Service

Complain received: Not receiving loyalty bonus for last three months

Description of the Product or service: online shopping of products

Date of acknowledgement: 29/03/2017

Corrective Action: None

Has the problem been solved? If not to whom it has been transferred:  Managing Director of retail operations

Date customer notified of resolution: 29/03/2017

Refer to third party resolution: no

How will be the problem avoided in future: By training the staffs and defining their job    roles and responsibilities and handling customer queries and grievances.

Policies and procedures amendments required: The management is bound to act if poor customer service is noticed within the workplace. If any fault in the customer service system is found then it is advice to review customer service procedures and change where appropriate. Noticing any kind of poor customer service in the organization should be immediately reported to the higher authority, i.e superiors, team leaders and mangers.

    Customer 2:

Customer complain ref number- ABC10010

Name of the Customer: Mrs. Henderson

Customer Contact Details: 01655-2453 3662

Date of Complain received: 27/03/2017

Complain received: Not delivering products at shop on the mentioned deadline as a result loosing loyal customers for not having stocks

Description of the Product or service: online shopping of products

Date of acknowledgement: 29/03/2017

Corrective Action: None

Has the problem been solved? If not to whom it has been transferred: Managing Director of retail operations

Date customer notified of resolution: 30/03/2017

Refer to third party resolution: No

How will be the problem avoided in future: By training the staffs and defining their job    roles and responsibilities and handling customer queries and grievances.

Policies and procedures amendments required: The management is bound to act if poor customer service is noticed within the workplace. If any fault in the customer service system is found then it is advice to review customer service procedures and change where appropriate. Noticing any kind of poor customer service in the organization should be immediately reported to the higher authority, i.e superiors, team leaders and mangers. 

1. Customer feedback form and online telephonic conversations are the two most efficient processes for gaining customer experience in resolve of the problem.

2. Brief Report:

The business objective of BizOps is dedicated to provide highest level of service to the customers for achieving optimal customer satisfaction. The policy applies to all its employees irrespective of their nature and type of job roles and responsibilities. The business aims at providing accurate and efficiency in terms of the service they provide to their customers with professional courtesy in all dealings with customers. But according to recent customer complains it has been find out that the customer service team lacks motivation and detail product and customer knowledge as a result the customers are not getting the promised service due to lack of ineffectiveness of the team. This has lead to business loss for The BizOps and its trading partners which need to be addressed immediately. It has been observed that the staffs of the BizOps are not getting adequate the training and development for effective customer service and general communication skills as a result miscommunication and chaos are occurring in the process. So, it is recommended that the customer service team should get soft skill and customer handling training as well as motivational sessions should be arranged for the staff.

Ethical Practices and Customer Service

4. Customer service plan template:

Vision: The BizOps aims at providing highest level of customer service to all its customers with accuracy and efficiency in terms of products and services while maintaining integrigity and professional courtesy in the process.   

Overview: This plan is prepared to review and reconstruct the customer service plan of the organization to optimize its customer service.  

Objective (SMART):

S- Train and develop the workforce of the organization who are engaged with dealing with customer handling, doubts and complains.

M: The customer satisfaction level will be analysed to measure the success of the customer service team.

A: The customer service team will be given training regarding customer service and handling and after the course their performance will be measured.  

R: Providing proper tanning and development program for the sales team will result in improved motivation and engagement among the customer service team.

T: The training and development program will be scheduled on monthly basis for next six months.

Customer Definition: The customer of the BizOps can be classified into two broad categories- the retail customers and the customers who order in bulk to resale them into their brick and mortar outlets.

Customer Feedback: Recently, there have been customer complains about incapability and unprofessionalism regarding the customer service team and the team has miserably failed to understand customer needs and track their prior information in the organization. As a result the business is facing losing of some of the most important and loyal customers.

Gap Analysis: The BizOps hr departments hire people randomly who are not provided proper training regarding skills and job roles and responsibilities during the induction process. So, there is a need for training of development focusing on soft skills, customer handling and job roles and responsibilities.

Improve Strategies: The organization should recruit prior experienced candidates in customer handling which will save the induction cost of the organization. Also, the existing employees should be provided with proper training and development so that they became familiar with customer handling and recognizing customer needs.

Communication Process: Communication is one of the most important factors for the success and effectiveness of any business operation. The BizOpz communication needs to be reconstructed and more free flow of communication needs to be promoted within the organization from both top down and vice versa.

Timeline: The training will be conducted on every alternative Saturday of every month for next six months.

Effective Handling of Customer Complaints

Budget: The management should organize a board meeting to finalise the budget for the training and development program.

Summary: The BizOps is facing serious problems regarding customer service and as a result they are losing their loyal customer. The organization urgently needs to address the issue and the author has identified that the customer service team lacks motivation and they are also not clear about their job roles and responsibilities as a result the customer service team faces a lot of chaos and mismanagement. The author has recommended for training and development program for the customer service team and also recommends appointing a dedicated team to monitor the performance of the customer service team and identify if poor performance is noticed and inform the management.

The author is preparing this report in reference to the customer service problems faced by the Biz Ops as its workforce does not have proper idea about job roles and responsibilities and soft skills in customer handling.

The report will analyse the issues faced within the organization regarding customer service which is directly affecting organization’s revenue collection and losing of loyal customers.

The BizOps guarantees its customers a someday dispatch under certain conditions. But regular complains are received by the management and online sales team regarding sales dispatch process. As a result it is having a great impact on the sales figure of the organization as customers are cancelling orders when they are learning that the product that was ordered was not dispatched on the same day. The organization is facing human resource problem as most of the customer service team does not have proper training and professional skills to handle customers.

Conclusion:

After analysing the online sales report and customer complain and feedback forms the author recommends that the management of the organization should consider re-structuring the customer service team with proper training and development in customer handling.

5. Smart: Understanding the customer needs and requirement, taking order and dispatching on the same day if the order is taken before 3pm.

Measurement: The management should introduce computer spreadsheets to record and track the time taken in taking the order from the customer till dispatching the product. A KPI can also be introduced in the system to tack and monitor workforce’s efficiency and performance.

Performance management:  Performance management is a long time process which needs proper planning and monitoring. The objective of the organization is to provide optimized customer service. Then the management should develop performance indicator to measure the performance of the team like KPI. Also, involving employees in the process will also help in improving the organization’s performance. The performance management system should be flexible which could be altered according to situational needs.

Serving Customers with Special Needs in Customer Service

The author has been asked to develop customer service skills in the admission staffs to handle new admissions in the North Melbourne College.  The management has observed a sharp decline of student’s admission in the college.

The author has observed that the admission staffs lack the capability, soft skill and managerial qualities while managing the admission process. As a result most of the customer queries are not solved and as a result negative effect on customer satisfaction. Firstly, the admission staffs should be made aware how important they are in the organization as they are the first person the students are going to encounter while taking admission in the college. So, their behaviour and managing capabilities are the first impression about the college. Therefore it is extremely important for them to maintain professionalism, understanding and co-operative while handling students. This can be developed thorough proper training and development for the staffs.  The college should also introduce technical tools in the admission process like computers, printers, etc. which will ease and increase the speed of the process so that the students do not have to wait long before taking admission in the college. The admission process should not be lengthy rather it should be completed within two days. The employees should be monitored by KPI for evaluating their performances on standard of speed, customer friendly and problem solving capabilities. Lastly, the author also recommends that management that there should be strict polices regarding poor performance so that the employees are alert in their job roles and responsibilities. 

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