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 v

8
 BRIEF CONTENTS

PART ONE
THE PROFESSION

1 The World of Customer Service

2 Contributing to the Service Culture

PART TWO
SKILLS FOR SUCCESS

3 Verbal Communication Skills

4 Nonverbal Communication Skills
5 Listening to the Customer

PART THREE
BUILDING AND MAINTAINING RELATIONSHIPS

6 Customer Service and Behavior

7 Service Breakdowns and Recovery
8 Customer Service in a Diverse World
9 Customer Service via Technology

9
PART FOUR
RETAINING CUSTOMERS

10 Encouraging Customer Loyalty

Glossary
Notes
Bibliography
Index

vi

10
 CONTENTS

Preface
Acknowledgments

PART ONE THE

PROFESSION
Customer Service Interview: Barbara Tanzer, Owner, TBS Group

1 The World of Customer Service

In the Real World: (Retail)—Amazon.com Inc.
LO 1-1 Defining Customer Service
The Concept of Customer Service
Post–World War II Service in the United States
The Shift to Service

LO 1-2 Growth of the Service Sector

Impact of the Economy

LO 1-3 Societal Factors Affecting Customer Service

Shifts in Consumer Needs, Wants, and Expectations
Global Economic Shifts
Shifts in the Population and Labor Force

11
 Increased Efficiency in Technology
Deregulation of Many Industries
Geopolitical Changes
Changing Values
More Women Entering the Workforce
A More Racially and Ethnically Diverse Population is Entering the
Workforce
More Older Workers Entering the Workforce
Growth of E-Commerce

LO 1-4 Consumer Behavior Shifts

Different Mindset
Expectation of Quality Service
Enhanced Consumer Preparation

LO 1-5 The Customer Service Environment

Components of a Customer Service Environment
The Customer
Organizational Culture
Human Resources
Deliverables
Delivery Systems
Service

LO 1-6 Addressing the Changes

Small Business Perspective

2 Contributing to the Service Culture

In the Real World: (Delivery Services)—FedEx
LO 2-1 Defining a Service Culture

12
 Service Philosophy or Mission
Employee Roles and Expectations
Policies and Procedures
Products and Services
Motivators and Rewards
Management Support
Employee Empowerment
Training

LO 2-2 Establishing a Service Strategy

LO 2-3 Customer-Friendly Systems
Typical System Components
Service Delivery Systems
Tools for Service Measurement

LO 2-4 Eleven Strategies for Promoting a Positive Service

Culture
LO 2-5 Separating Average Companies from Excellent
Companies
LO 2-6 What Customers Want
Small Business Perspective
vii

PART TWO SKILLS FOR

SUCCESS
Customer Service Interview: Ginger Marks, CEO, Calomar, LLC

3 Verbal Communication Skills

In the Real World: Insurance—State Farm Insurance
LO 3-1 The Importance of Effective Communication

13
 LO 3-2 Ensuring Two-Way Communication
Interpersonal Communication Model

LO 3-3 Communicating Positively

Prepare for Positive Customer Interactions
Let Your Customers Know They Are Important
Address Your Customer’s Expectations Positively
Nurture a Continuing Relationship

LO 3-4 Providing Feedback Effectively

Verbal Feedback
Nonverbal Feedback

LO 3-5 Avoiding Negative Communication

LO 3-6 Dealing Assertively with Customers
LO 3-7 Assertive versus Aggressive Service
Small Business Perspective

4 Nonverbal Communication Skills

In the Real World: (Financial Services)—American Express
LO 4-1 What Is Nonverbal Communication?
LO 4-2 The Scope of Nonverbal Behavior
Body Language
Vocal Cues
Appearance and Grooming
Spatial Cues
Environmental Cues
Miscellaneous Cues

LO 4-3 The Role of Gender in Nonverbal Communication

LO 4-4 The Impact of Culture on Nonverbal Communication

14
 LO 4-5 Negative Nonverbal Behaviors
Unprofessional Handshake
Fidgeting
Pointing a Finger or Other Object
Raising an Eyebrow
Peering over Top of Eyeglasses
Crossing Arms or Putting Hands on Hips
Holding Hands Near Mouth

LO 4-6 Strategies for Improving Nonverbal Communication

Seek out Nonverbal Cues
Confirm Your Perceptions
Seek Clarifying Feedback
Analyze Your Interpretations of Nonverbal Cues

LO 4-7 Customer-Focused Behavior

Small Business Perspective

5 Listening to the Customer

In the Real World: Retail—Nordstrom
LO 5-1 Why Is Listening So Important?
LO 5-2 What Is Listening?
Hearing and Receiving the Message
Attending
Comprehending or Assigning Meaning
Responding

LO 5-3 Characteristics of a Good Listener

LO 5-4 Causes of Listening Breakdown
Personal Obstacles

15
 Listening Skill Level
External Obstacles
Additional Obstacles to Effective Listening

LO 5-5 Strategies for Improved Listening

Stop Talking!
Prepare Yourself
Listen Actively
Show a Willingness to Listen
Show Empathy
Listen for Concepts
Listen Openly
Send Positive Nonverbal Cues
Do Not Argue
Take Notes, If Necessary

LO 5-6 Information-Gathering Techniques

Open-End Questions
Closed-End Questions

LO 5-7 Additional Question Guidelines

Avoid Criticism
Ask Only Positively Phrased Questions
Ask Direct Questions
Ask Customers How You Can Better Serve
Small Business Perspective
viii

PART THREE BUILDING AND

MAINTAINING

16
 RELATIONSHIPS
Customer Service Interview: Venkatesh P. Nagalapadi, President,
CFP Physicians Group

6 Customer Service and Behavior

In the Real World: Supermarket—Trader Joe’s
LO 6-1 What Are Behavioral Styles?
LO 6-2 Identifying Behavioral Styles
R: Rational
I: Inquisitive
D: Decisive
E: Expressive

LO 6-3 Communicating with Each Style

LO 6-4 Building Stronger Relationships
Discover Customer Needs
Say “Yes”
Seek Opportunities for Service
Focus on Process Improvement
Make Customers Feel Special
Be Culturally Aware
Know Your Products and Services

LO 6-5 Dealing with Perceptions

Perceptions and Stereotypes
Small Business Perspective

7 Service Breakdowns and Recovery

In the Real World: Retail/Manufacturing—Coca-Cola

17
LO 7-1 What Is a Service Breakdown?
LO 7-2 The Role of Behavioral Style
LO 7-3 Difficult Customers
Demanding or Domineering Customers
Indecisive Customers
Dissatisfied and Angry Customers
Rude or Inconsiderate Customers
Talkative Customers

LO 7-4 Handling Emotions with the Emotion-Reducing Model

LO 7-5 Reasons for Customer Defection
LO 7-6 Working with Internal Customers (Coworkers)
Stay Connected
Meet All Commitments
Do Not Sit on Your Emotions
Build a Professional Reputation
Adopt a Good-Neighbor Policy

LO 7-7 Strategies for Preventing Dissatisfaction and Problem

Solving
Make Positive Initial Contact
Think Like the Customer
Pamper the Customer
Respect the Customer
Exceed Expectations
Responding to Conflict
Causes of Conflict
Salvaging Relationships after Conflict

LO 7-8 The Problem-Solving Process

18
 1. Identify the Problem
2. Compile and Analyze the Data
3. Identify the Alternatives
4. Evaluate the Alternatives
5. Make a Decision
6. Monitor the Results

LO 7-9 Implementing a Service Recovery Strategy

1. Apologize, Apologize, and Apologize Again
2. Take Immediate Action
3. Show Compassion
4. Provide Compensation
5. Conduct Follow-Up

LO 7-10 Disaster Planning Initiatives in the Service Recovery

Process
Small Business Perspective

8 Customer Service in a Diverse World

In the Real World: Restaurant Franchise—Subway
LO 8-1 The Impact of Diversity
LO 8-2 Defining Diversity
LO 8-3 Customer Awareness
LO 8-4 The Impact of Cultural Values
Modesty
Expectations of Privacy
Forms of Address
Respect for Elders
Importance of Relationships

19
 Gender Roles
Attitude toward Conflict
The Concept of Time
Ownership of Property

LO 8-5 Providing Quality Service to Diverse Customer Groups

Customers with Language Differences
Customers with Disabilities
Elderly Customers
Younger Customers
ix

LO 8-6 Communicating with Diverse Customers

Small Business Perspective

9 Customer Service via Technology

In the Real World: Technology—Microsoft
LO 9-1 The Role of Technology in Customer Service
LO 9-2 The Customer Contact/Call Center or Help Desk
Call Center Technology
Traditional Call Center Technology

LO 9-3 Tapping into Web-Based and Mobile Technologies

Websites
Social Media
Advantages and Disadvantages of Technology

LO 9-4 Technology Etiquette and Strategies

E-Mail
Facsimile

LO 9-5 The Telephone in Customer Service

20
 Communication Skills for Success
Tips for Creating a Positive Telephone Image
Effective Telephone Usage
Voice Mail and Answering Machines or Services
Taking Messages Professionally
General Advice for Communicating by Telephone
Small Business Perspective

PART FOUR RETAINING

CUSTOMERS
Customer Service Interview: Richard Ulrych, Partner, Waterways
Car Spa

10 Encouraging Customer Loyalty

In the Real World: Wholesale—Costco
LO 10-1 Customer Loyalty
LO 10-2 The Role of Trust
Communicate Effectively and Convincingly
Display Caring and Concern
Be Fair
Admit Errors or Lack of Knowledge
Trust Your Customers
Keep Your Word
Provide Peace of Mind
Be Responsible for Your Customer Relationships
Personalize Your Approach
Keep an Open Mind
Individualize Service

21
 Show Respect
Elicit Customer Input

LO 10-3 The Importance of Customer Relationship

Management
Benefits of Customer Relationship Management

LO 10-4 The Role of Channel Partner Relationships on

Customer Loyalty
Three Types of Channel Partners

LO 10-5 Provider Characteristics Affecting Customer Loyalty

Responsiveness
Adaptability
Communication Skills
Decisiveness
Enthusiasm
Ethical Behavior
Initiative
Knowledge
Perceptiveness
Planning Ability
Problem-Solving Ability
Professionalism

LO 10-6 Making the Customer Number One

Establish Rapport
Identify and Satisfy Customer Needs Quickly
Exceed Expectations
Follow-Up

LO 10-7 Enhancing Customer Satisfaction as a Strategy for

Retaining Customers

22
 Pay Attention
Deal with One Customer at a Time
Know Your Customers
Give Customers Special Treatment
Service Each Customer Adequately
Do the Unexpected
Handle Complaints Effectively
Sell Benefits, Not Features
Know Your Competition
Cost of Dissatisfied Customers

LO 10-8 Strive for Quality

Small Business Perspective

Glossary
Notes
Bibliography
Index
x

23
 PREFACE

New to This Edition

Every Chapter
New Customer Service interviews with service
Updated research and statistics throughout text
New Words to Live By quotes at the end of the Quick Preview section
of each chapter
Updated and addition of Trending Now sections in many chapters

Chapter 1
Interview by customer service industry professional
New In the Real World chapter opening case study (Amazon.com)
New Think About It
Updated research and statistics throughout chapter
New section Key Developments That Impacted Customer Service
Profession
Expanded definitions of service-related terminology
New Trending Now segments added
Updated discussion of Global Economic Shifts impacting customer
service
Additional Work It Out section

24
 Addition of section on Shifts in Consumer Needs, Wants, and
Expectations
Addition of suggestions for dealing more effectively with Internal
Customers
Additional Customer Service Tips
Expanded discussion of small business trends and customer service
Additional Search It Out resources

Chapter 2
Updated In the Real World chapter opening case study (FedEx)
New Think About It
Updated research and statistics
Inclusion of sample mission statements
Additional Trending Now segments
Expanded definitions related to service terminology
New Customer Service Success Tip added
Updated 11 Strategies for Promoting a Positive Service Culture section
Additional Search It Out resources
Additional Collaborative Learning Activity
xi

Chapter 3
New In the Real World chapter opening case study (State Farm
Insurance)
New Think About It
Addition of Words to Live By quote
Expanded definitions related to service terminology
Additional Customer Service Tips
Additional Trending Now segments
Updated research and statistics
Expanded Importance of Effective Communication section
Updated section on Assertive vs. Aggressive Customer Service

25
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