SlideShare una empresa de Scribd logo
1 de 20
i
IMPROVEMENT OF CUSTOMER SERVICE POLICIES
Brittany Barnhart, Employed by Tan24
Warrensburg Tan24 Sonnen Studio
November 13, 2016
ii
IMPROVEMENT OF CUSTOMER SERVICE POLICIES
Matthew Gray, Owner
Warrensburg Tan24 Sonnen Studio
Corporate
Tan24 America Inc.
Brittany Barnhart, Employed by Tan24
Warrensburg Tan24 Sonnen Studio
November 13, 2016
iii
November 13, 2016
Matthew Gray
Warrensburg Tan24 Sonnen Studio
202 N. Holden St.
Warrensburg, MO. 64093
Dear Matthew Gray,
I have created the attached report to be presented to current corporate members of the Tan24
Sonnen Studio franchise. The report describes the procedures that should be implemented
pertaining to customer service and improving customer satisfaction. My recommendations for
increasing customer loyalty through training in personalized customer service are also included. I
believe you will find these recommendations useful for the future of Tan24.
Primary research included interviews with the current employees full of generalized questions of
procedures they currently use to gain customer loyalty.
Thank you for allowing me to submit this comprehensive report. I would be pleased to discuss this
report and its conclusions with you. Contact me by phone at (660-362-1500) or email at
bmb91710@ucmo.edu
Sincerely,
Brittany Barnhart
Employee
Warrensburg Tan24 Sonnen Studio
iv
TABLE OF CONTENTS
EXECUTIVE SUMMARY .........................................................................................................vi
INTRODUCTION: TAN24 CUSTOMER SERVICE TECHNIQUES .........................................1
DISCUSSION: CURRENT CUSTOMER SERVICE ..................................................................1
Minimum Service Standards ...............................................................................................2
Inefficiencies of the Current Standards .............................................................................2
DISCUSSION: CUSTOMER SERVICE SATISFACTION ..........................................................2
Customer Feedback ..........................................................................................................2
Improving Customer Service ...........................................................................................3
DISCUSSION: CUSTOMER LOYALTY .....................................................................................5
Benefits of Effective Policies ..............................................................................................5
Obtaining Customer Loyalty ...............................................................................................5
Preserving Loyal Customers .............................................................................................6
Cost of Implementing Policies ..........................................................................................6
SUMMARY OF CONCLUSIONS .................................................................................................9
Tan24 Sonnen Studio Current Customer Service Program ................................................9
In Support for Updated Policies ........................................................................................9
RECOMMENDATIONS ..............................................................................................................10
Implement Customer Satisfaction Surveys .......................................................................10
Implement Effective Policies and Determine Current Skills ............................................10
Training .............................................................................................................................10
Annual Meetings ...............................................................................................................10
Assess Customer Loyalty Retention and Benefits of Policies ..........................................10
APPENDIX .................................................................................................................................11
REFERENCES ...........................................................................................................................14
v
LIST OF FIGURES
Figure:
1. CONCEPTUAL MODEL RESULTS ........................................................................4
2. COST OF TRAINING TO IMPLEMENT UPDATED POLICIES FOR TAN24
SONNEN STUDIO ....................................................................................................7
3. AVERAGE TRAINING COST EXPENDITURE PER HOURLY..............................8
vi
EXECUTIVE SUMMARY
The Warrensburg Tan24 Sonnen Studio and corporate would benefit considerably
by implementing new and updated policies for customer service. The benefits
resulting from this expansion on the customer service methods are evidenced in this
report, created by Brittany Barnhart, a current employee of Tan24. The purpose of
this report is to analyze the current customer service policies and determine if
updating them is economical to enhance customer satisfaction for Tan24 Sonnen
Studio. Evaluating and updating the customer service methods would benefit the
business along with its current customers and employees.
My conclusions for updating the current service standards prove with research,
beneficial for small businesses in competitive small markets. Testing these
improved methods on current employees would lead to an expansion of customer
loyalty with current customers and bring new business to Tan24 Sonnen Studio.
Analysis of the research conducted reveals the following benefits:
1. Customer service is the groundwork of a small business standing out in
competitive markets, success depends on the customer and the customer
depends on the service.
2. Customer satisfaction relies on the improvements a business is willing to
make in order tostrive for excellenceand domination in competitive markets.
3. Customer loyalty is the foundation of a small business, because the cost of
gaining a new customer is much higher than selling a repeat customer.
Based on these findings, it is recommended that CEO’s of small businesses take
charge to save their company. To protect this business and the reputation of its
exclusivity, it is imperative to implement effective customer service methods. These
methods will facilitate a friendly environment and focus on customer satisfaction in
order to gain future customer loyal.
1
INTRODUCTION: TAN24 CUSTOMER SERVICE PROCESS
The main goal of Tan24 Sonnen Studio is to provide an excellent tanning experience and pristine
customer service to dominate the competition in the market. However, due to the decrease in the
market this past year, it has been very difficult to stand out as a company with limited customer
loyalty. Customer satisfaction is a vital key to the success for small businesses success. Customer
service quality and satisfaction have been the weakest link in the company recently. The customer
volume is so low currently that Tan24 should take the time to update some of the procedures to
prepare for the predicted busy season to make lasting impressions. The customer satisfaction rate
has recently taken a downturn due to the possibility inconsistent procedures. The problem being
identified: is how can we expect to gain new customers if we cannot keep the ones we already
have?
Some key methods discussed in the article “Improving Customer Service”, published by Faulkner
& Gray, Inc. are specifically involving employees being able to process and handle high levels of
dissatisfaction and complaints. The article suggests the ability to be affective problem-solvers is
the key to gaining customer loyalty with the proper training and skills to take on challenging
situations with the customers. This article suggests that with these skills a business can expect to
gain customer loyalty and begin the route to success.
Overall, this report was created to analyze the effectiveness of Tan24 Sonnen Studio’s current
service techniques and standards to evaluate the possibility of improvements and if any can be
made economically. This report will also observe the process to gaining customer satisfaction with
goals of eventual customer loyalty. The increasing level of dissatisfaction in customer service is
an issue that all businesses should address, especially small businesses. Customer service
satisfaction needs focused guidelines and training with problem-solving skills and preparedness
for quick solutions to situations or complaints. Following will be a discussion of benefits that will
follow from the suggested improved procedures. The report will end with recommendations based
on the research gathered and conclusions drawn from research.
DISCUSSION: CURRENT CUSTOMER SERVICE
The current customer service training for Tan24 Sonnen Studio is limited to expectations that are
set based on oral translation of standards by the franchisee owner and the ‘Minimum Service
Standards’ (p. 48-49) set by the “Systems Manual” provided online by Tan24 America, Inc. The
current standards set by the manual are limited to four basic ethics, that are arguably the simplest
methods to follow. Although, with limited customer service methods, Tan24 Sonnen Studio cannot
expect to stand out and expand customer loyalty while succeeding in customer satisfaction. The
importance of expanding these standards are vital to the success of a small business in a very
competitive market.
2
Minimum Service Standards
The four basic service standards outlined by Tan24 America Inc. in the “Systems Manual” promise
to offer the highest quality of service. These standards include: greeting customers as they walk in
the door, addressing customers by name, chatting with each client before they exit business, and
cleaning every room after use.
Inefficiencies of the Current Standards
The setbacks involved with the current standards provided by Tan24 America Inc. are, their vague
descriptions and limited standards. The ‘Minimum Service Standards’ are basic principles of
knowledge assuming you have the required skill set of working with customers. These standards
are directly related to expectancy of any workforce and are not helpful or specific in improving
the businesses customer service or satisfaction. They do not have any sort of direction for
identifying top of the line policies for a successful small business.
One of the most inefficient and current issues is an assumed procedure to handle a situation or
complaint is to contact management in attempt to answer a customer’s question. If management
cannot be contacted, the customers are directed to check back when management is available at
specified time. This is not a constructive method and has previously lead to high levels of
dissatisfaction, while deterring most customers whom are expecting educated employees with
professional solutions. Another issue with the current policies is being able to identify the
appropriate means to compensate dissatisfied customers. The current method being used is to
contact management again to handle the large portion of the issues no matter the level. It would
be more efficient to have set policies and reasonable compensations to pacify the customer quickly
and leave a positive lasting impression.
Lastly, the current policy for training new employee is limited to a total of five days that vary
throughout few weeks. This allows very limited exposure to proper customer service techniques
and makes it very challenging to educate new employees on specialized exclusive customer service
methods that improve customer satisfaction in business and guarantee an increase in future
customer loyalty.
DISCUSSION: CUSTOMER SERVICE SATISFACTION
Understanding what needs improvement with the customer service policies is just as important as
implementing them. In the article ‘The Adoption of Customer Service Improvement Practices’,
Peter Dickson quotes “Long-term survival, evolution, and growth of organization in competitive
markets depends on the superiority of an organizations improvement practices”. Dickson is
referring to improvement in customer service practices in small businesses. In his article, he
provides a diagram of effective tools used to improve customer service policies and explains how
to determine what needs improving.
Customer Feedback
Customer feedback is one very important tool provided to businesses of all kinds. This allows
businesses to keep in frequent contact with their customers and modify the corporation with
legitimate feedback. Criticism can answer all kinds of questions businesses have on whether to
3
improve on certain things or not. Understanding your customer and their input on satisfaction can
be very beneficial when drawing out your budget for improvements on certain products and even
customer service.
All customer service procedures must be evaluated before the company can establish a formal
program and surveys are very helpful in this procedure. Some survey based information are: Levels
of service customer expects? Current customer service level? Types of service desired? Product
quality levels expected? Current product levels? Providing surveys with open-ended questions are
helpful to getting the most desired answers.
Another valuable way to find insights and feedback from customers is through social media, and
research proves to be a necessity. Customers who have called, written, or otherwise reached out to
a company privately now turn to social media to express complaints and concerns. Although 70%
of complaints tend to go unanswered, customers expect you to respond to them. Consumers believe
it is the business’s responsibility to address the concern. Social media now has the ability to
damage a brand with current and potential followers, so it is a business’s duty to connect with not
only their customers, but also the rest of their social connections as well.
Improving Customer Service
The article “Improving Customer Service” from an anonymous source published in the ‘Small
Business Report’ journal, tell us the insights of customer’s satisfaction standards. One of the first
topics the article addresses is the need for complaints to be addressed by the employee they had
immediate interaction with when first entering the store. Statics provided by surveyed answers
determined that the customer tends to be less irritable and dissatisfied when their question or
complaint can be handle right away by this employee.
Other studies showed dissatisfied customers will express their concern to five or fewer potential
customers, but a disgruntled customer will express it to twenty or more. With every one dissatisfied
customer, fifteen to twenty take their business elsewhere. Another suggested improvement is
taking immediate action requiring that no more than 7 days should elapse before the
problem/complaint is taken care. If there is no immediate solution available, the customer should
be made aware that an investigation is being taken place.
Also, keeping detailed documentation of situations and the solution to improve circumstances for
the future. Acknowledging complaints in writing shows the customer they are important to the
business and fixing the problem permanently is a top priority. Then following-up on the
documented complaint is important in the overall goals of making sure the problem hasn’t
returned.
4
FIGURE 1
CONCEPTUAL MODEL RESULTS
Source: Interrelationships among service quality, customer satisfaction, and customer loyalty
Research conducted by Weng-Kun Liu, Yueh-Shian Lee, and Li-Mei Hung (2016) indicated
service quality is the result of certainty, confidence, reliability, acknowledgement, response,
empathy, and tangibility perceived by the customer.
The study started based on a hypothesis that service quality has a positive effect on customer
satisfaction and customer loyalty. The indices in the primary tables show the surveyed results
required for testing the hypothesis in each category. These values indicate the value is applied to
measure two endogenous variables.
They initiated by testing the model fit indices one at a time. The results of the value indicated that
the paths of the two endogenous variables were reliable. The final conclusion results supported
service quality is significantly and positively related to customer loyalty. Second the findings
supported the positive influence of service quality on customer satisfaction. Third customer
satisfaction had a positive influence on customer loyalty. These research results implicated that
managers should improve service quality to enhance customer satisfaction and customer loyalty.
5
DISCUSSION: CUSTOMER LOYALTY
In “Service Quality, Relational Benefits, and Customer Loyalty in a Non-Western Context” by
Omneya Mokhtar Yacout, implementing the right policies for Tan24 Sonnen Studio’s customer
service would lead to the overall beginning of success. Overtime, the policies will develop
customer loyalty and create a positive environment for employees while applying the most
effective customer satisfaction techniques at work.
Benefits of Effective Policies
The benefits of updating the policies create more professional and trusting procedures for
customers when dealing with different problems and procedures. The environment for customers
would change in a direction of confidence and develop a sense of security with Tan24 Sonnen
Studio and its effective procedures. Although constructive policies are very important, relational
policies such as preferential treatment, communication, and adaption to customers’ needs are also
critical needs required for customer loyalty and retention.
The advanced policies would also benefit by reducing complaints, conflicts, and improve
positioning. These policies may be the beginning of the foundation of service quality for Tan24
Sonnen Studio. Research discovered that customer satisfaction, commitment, and trust all affected
customer loyalty both directly and indirectly. The definition of customer loyalty program is a
mechanism for identifying and rewarding loyal customers. The only current customer loyalty
mechanism Tan24 offers customers is a free month to customers who refer two new customers.
Obtaining Customer Loyalty
Many factors contribute to development of customer loyalty, including customization and benefits
to long-term customers. One very vital factor in developing customer loyalty is involved with
relationship marketing efforts. Relationship marketing efforts are based on two perspectives
according to Omneya Mokhtar Yacout in “Service Quality, Relational Benefits, and Customer
Loyalty in Non-Western Context”. These two approaches, he explains, are relationship quality and
relationship benefits. The perspectives start off with understanding the customer’s viewpoint and
then creating a mutually beneficial relationship.
The gap in the customer service field with relationships relates directly to the importance of service
quality. Service quality was found to have a very distinct effect on the market performance of a
business. Loyalty is the single most important indicator of long-term financial performance. Loyal
customers create value for a business through positive word of mouth, voluntary customer-
citizenship behaviors, coproduction assistance, social relationships, and mentoring other
customers. Factors of customer loyalty begin with customer satisfaction and end with perceived
performance. Many businesses are not able to exceed perceived performance, due to the lack of
advanced customer service methods.
The most important variables to obtain customer loyalty include commitment to the customer and
an emotional tie between the customer and service provider or employee. Emotional bonding
transcends into an economic exchange, implying that, customers buy from who they ‘like’. This
relationship between the consumer and service provider develops social benefits of personal
recognition by employees. Customer loyalty and satisfaction also develops from customization
and familiarity creating friendships. This leads to confidence and a feeling of trust in the service
provider while creating a barrier preventing customers from switching to other providers.
6
Customization benefits refer to tailoring each relationship and product/service to each individual
customer.
Preserving Loyal Customers
Being consistent with customers and maintaining the ongoing relationship it vital to preserving
loyalty. Research by Muhammad Khan in “Customer Loyalty Programs” shows loyalty programs
have become some of the most influencing factors for increasing company profit. For instance,
tactics and programs like ‘frequent buyer’ schemes accumulate points and develop barriers to exit.
Creating programs and policies for frequent user benefits correlating with customer service and
relationship beneficial relationships can create a positive impact for Tan24 and increase profit.
Customers are often more loyal to a brand to improve their ability to win the ‘frequent user’
benefits. Customer loyalty is built on this trust developed between the consumer and provider and
when kept up properly this trust is valuable for small businesses.
Rewarding repeat customers is very imperative for a small business for the reason that it maintains
and encourages an increase in sales from loyal customers and their referrals. Also, the longer the
duration of the customer and company relationship the more significant and robust are the
propensities to recommend the company. Providing customers, a target in which they can earn
various benefits is motivating devotion. Although, many loyalty programs fail because they focus
on rewarding membership and not loyalty itself. Well-maintained loyalty programs are beneficial
in helping managers in getting detailed information about customer behavior and develop
personalized communication and offers.
Cost of Implementing Policies
Poor customer service can impact a small business very heavily. “Small Business Trends”,
published by Chatham Entrepreneurship, estimated that eighty-three billion dollars was lost by
U.S. enterprises each year due to customer service issues.
The cost of not satisfying the customer statistically is much greater than having updated policies
or procedures available to handle corrections more professionally and efficiently. Developing a
strong reputation for the future of a business can help balance out the financial costs of
implicating updated policies to keep customers satisfied.
 Recent data suggested that 89% of consumers who experienced mediocre to poor
customer service will switch to another brand.
 63.9% of consumers considered customer service to be more important than price
when deciding if they wanted to continue their business with a company.
 55% surveyed they would pay more to guarantee better customer service.
The overhead cost of implementing these new policies for Tan24 Sonnen Studio in Warrensburg
would be the additional training hours needed for employees to understand and adopt the new
policies for customer service to guarantee customer satisfaction and start building customer
loyalty.
7
FIGURE 2
COST OF TRAINING TO IMPLEMENT UPDATED POLICIES FOR TAN24 SONNEN
STUDIO
Source: Tan24 Sonnen Studio Time Sheet Record
The additional training hours would cost $120 a week and consist of two weeks in a month for the
month of December 2016 and January 2017. This would in total cost of $480 dollars to implement
the new policies for Tan24 Sonnen Studio.
Em ployees: Additional Training
Manager: Total Cost:
Week ending:
Regular Hours Overtime Training Hours Total
Monday Dec . 12, 2016 11am -5pm 3pm -5pm 8.00
Tuesday Dec . 13, 2017 11am -5pm 3pm -5pm 8.00
Wednesday Dec . 14, 2018 11am -5pm n/a 6.00
Thursday Dec . 15, 2019 11am -5pm 3pm -5pm 8.00
Friday Dec . 16, 2020 11am -5pm 3pm -5pm 8.00
Saturday Dec . 17, 2021 10am -2pm 10am -2pm 8.00
Sunday Dec . 18, 2022 n/a n/a n/a
Total hours
34.00 12.00 46.00
Rate per hour
$10.00 $10.00 $10.00
Total pay
$340.00 $120.00 $460.00
G.W.,Brittany
Brittany
B. White, G. White
Tan24 Sonnen Studio
Brittany Barnhart
Weekly time record
12 hours
120$
Total additional c ost for Training Polic ies would be $120 a week
B.W.,Brittany
Dec em ber 17.2016
Day Employees
B.W.,Brittany
G.W.,Brittany
n/a
B.W.,Brittany
8
FIGURE 3
AVERAGE TRAINING COST EXPENDITURE PER HOURLY
Source: Created in excel
Average Training Cost
Category Budget Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Trends
Employee Hours 2,000$ 1,200$ 1,600$ 1,840$ 2,000$ 1,600$ 1,200$
Training Hours 500$ 240$ 240$ -$ -$ -$ -$
Total 2,500$ 1,440$ 1,840$ 1,840$ 2,000$ 1,600$ 1,200$
Under/(Over) 660$ 660$ 500$ 900$ 1,300$ 1,060$
Progress
Category Target Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Actual Totals
Customer Loyalty 8,000$ 3,699$ 5,598$ 6,998$ 9,047$ 6,518$ 6,248$ 38,105.60$
Total 8,000$ 3,699$ 5,598$ 6,998$ 9,047$ 6,518$ 6,248$ 38,105.60$
9
SUMMARY OF CONCLUSIONS
Tan24 Sonnen Studios Current Customer Service Program
Analysis of the research presented in this report and observation of customer service satisfaction
operations has led to the following conclusions about Tan24 Sonnen Studio:
1. The current policies are inefficient due to the few methods available by Tan24 America
Inc., and the descriptions do not assist in helpful information or training employee’s to be
successful in customer service satisfaction.
2. Due to the lack of current implemented policies, the structure of customer service is
unorganized and blatantly unprofessional in 80% of customer dissatisfaction situations.
3. Customer loyalty programs are almost non-existent, cutting off a source to develop
customer service satisfaction for long-term customers.
4. Due to the lack of polices, reasonable compensation for customer dissatisfaction is
undetermined creating conflicts in hasty situations.
In Support for Updated Policies
Furthermore, this research supports the overall advantage of updating the policies for the
improvement of customer service. The following conclusions can be drawn:
1. Updating the current policies related to customer service satisfaction will improve business
with customers and establish a positive environment for employees to handle situations.
2. Once employees are equipped with proper training on the policies, an overall boost in
customer satisfaction will lead to providing the best customer service.
3. Creating customer loyalty programs for long-term customers will develop a incentive to
make more frequent purchases.
4. Relational development between service providers and customers will create the strongest
barrier to exit for consumers.
10
RECOMMEDATIONS
Supported by the findings and conclusions of this report, the following recommendations are
offered to improve customer satisfaction and guarantee future customer loyalty for Tan24 Sonnen
Studio:
Implement Customer Satisfaction Surveys
Proceeding with surveys is the most efficient way to find out what customers are thinking.
Surveying the consumers with an incentive will determine after results are collected the current
customer service satisfaction level. It is important to understand how well your business is
providing customer service to current consumers, so you can improve to keep them and gain new
customers.
Implement Effective Policies. Determine Current Skills
Understanding the current state your business with customer surveys will determine which policies
to implement. All the research provided helps establish foundations for constructing specific
policies. Determining the current skills each employee possesses will assist in defining what they
need more training on. The updated methods to improve customer service satisfaction:
1. Appropriate compensations for certain levels of customer dissatisfaction.
2. Extend employee training in the future to include specialized training on customer service
satisfaction.
3. Acknowledging customer complaints quickly and documenting situations to eliminate
problem.
4. Customer loyalty programs to reward long-term customers.
5. Build relationships with customers to understand their viewpoint and preference.
6. Offer personalized customer service to each customer in an attempt to build a customized
relationship creating a barrier to exit.
Training
Training is the only cost of updating and implementing the policies with the current service
providers of Tan24. Training on customer service would allow employees to practice building
relationships with customers and improve on solving complaints more effectively.
Annual Meetings
Annual meetings will be necessary to follow-up on the success of the new policies with employees
to discuss topics like; how complaints were handled. How closely the company’s service systems
fulfill its objectives. If any aspects of the program should be changed. Which elements were
successful. Frequency of errors.
Assess Customer Loyalty Retention and Benefits of Policies
After a six-month period of the new customer service policies being executed, the business Tan24
Sonnen Studio should assess customer satisfaction level with another survey. Then assess financial
statistics involved with membership renewal and customer retention.
11
APPENDIX
Interview Questions
Brandy White
Employee
Tan24 Sonnen Studio
1. What do you think we can improve on regarding customer service at this store?
2. If a customer is dissatisfied, what can we do to change that?
3. Do you believe you were trained on problem-solving techniques for Tan24?
4. Do you believe you were trained on specialized customer service techniques
specifically for Tan24?
5. How do you compensate customers for a mistake made on the job here at Tan24?
6. Do you think a series of specialized customer service training exercises with
employees would improve customer satisfaction for Tan24?
7. How do you think other employees deal with dissatisfied customers?
8. Do you believe that if procedures were implemented to follow, your job would be
easier?
9. Do you believe there has been a decline in customers this year? Customer
satisfaction?
10. Are you able to say you had proper training for this job?
12
CustomerSatisfactionSurvey
Tan24 Sonnen Studio
202 N. Holden St. Warrensburg,MO. 64093 (660) 362-1500
Tan24 Sonnen Studio requests your help. Pleasecomplete the followingCustomer Satisfaction Survey based on the
project we recently completed for your organization.Thank you for your time.
Customer Name: How did you hear about us? Why did you decide to use us?
[Customer Name] [Answer] [Answer]
Employee reference Date:
[Project Manager] [Date]
1. Customer Service
 Less than expected  As expected  More than expected  Consistently more
2. Staff Knowledge
 Less than expected  As expected  More than expected  Consistently more
3. Communication
 Less than expected  As expected  More than expected  Consistently more
4. Feedback
 Less than expected  As expected  More than expected  Consistently more
5. Overall Performance of employee
 Less than desirable  As expected  Better than expected  Consistently better
13
6. Online Resources
 Less than expected  As expected  More than expected  Consistently more
7. After Sales Service
 Less than expected  As expected  More than expected  Consistently more
8. Price
 Less than expected  As expected  More than expected  Consistently more
9. Cleanliness
 Less than expected  As expected  More than expected  Consistently more
10. Overall Service
 Less than desirable  As expected  Better than expected  Consistently better
11. Comments / Testimonial:
[Addyourcommentshere.]
 Would you recommend Tan24 Sonnen Studio?
 Wouldyouuse Tan24 SonnenStudioagain?
Thank youverymuch fortakingthe time to complete thissurvey.Yourfeedbackisvaluedandverymuch
appreciated!
14
REFERENCES
Anonymous. (1987, November). Improving Customer Service -- Customer Satisfaction Yields.
Small Business Report, 12(11), 66-72. Retrieved from
http://search.proquest.com.cyrano.ucmo.edu:2048/docview/214380492/abstract/5BF3B6
5497E94E4BPQ/1?accountid=6143
Dickson, P. R. (2013, October 18). The Adoption of Customer Service Improvement Practices.
Business and Economics--Marketing and Purchasing, 26(1), 1-15. Retrieved November
11, 2016, from
http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1651746357/abstract/2DE7C
D566BF54293PQ/1?accountid=6143
S. (2016, January 22). Tips to Improve Customer Service Satisfaction. Advertising and Public
Relations, 1. Retrieved November 11, 2016, from
http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1830424374/citation/144DE
D01AD2F4747PQ/1?accountid=6143
Liu, W., Lee, Y., & Hung, L. (2016, September 1). The interrelationships among service quality,
customer satisfaction, and customer loyalty: Examination of the fast-food industry.
Foodservice Business Research, 1-17. Retrieved November 11, 2016, from
http://www.tandfonline.com.cyrano.ucmo.edu:2048/doi/full/10.1080/15378020.2016.120
1644?scroll=top&needAccess=true
Yacout, O. M. (2010, December). Service Quality, Relational Benefits, and Customer Loyalty in
a Non-Western Context. S.A.M Advanced Management Journal, 75(1), 2-22. Retrieved
November 26, 2016, from
http://search.proquest.com.cyrano.ucmo.edu:2048/docview/523039508/abstract/49C8296
77B8543F6PQ/1?accountid=6143
Khan, M. T. (2014, February). Customer Loyalty Programs-Concepts, Types, Goals, and
Benefits. International Journal of Information, Business and Management, 6(1), 74-93.
Retrieved November 27, 2016, from
http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1511381985/abstract/C04531
C634B44774PQ/1?accountid=6143
Newstex Entrepreneurship Blogs, Chatham. (2014, April 9). Small Business Trends: How Much
Can Poor Customer Service Cost your Business. ProQuest. Retrieved November 27,
2016, from
http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1513906922/fulltext/366E36
997F1641A1PQ/1?accountid=6143

Más contenido relacionado

La actualidad más candente

Module 6 6th p
Module 6 6th pModule 6 6th p
Module 6 6th pGeorgie81
 
Assessment and certification built around your needs - Top 50 Tips for Achiev...
Assessment and certification built around your needs - Top 50 Tips for Achiev...Assessment and certification built around your needs - Top 50 Tips for Achiev...
Assessment and certification built around your needs - Top 50 Tips for Achiev...Christopher Redpath
 
Synopsis of after sales service
Synopsis of after sales serviceSynopsis of after sales service
Synopsis of after sales serviceNatasha Gupta
 
Service culture, a strong lever of differentiation
Service culture, a strong lever of differentiationService culture, a strong lever of differentiation
Service culture, a strong lever of differentiationClaire BONNIOL
 
A study on after sales and services in tvs
A study on after sales and services in tvsA study on after sales and services in tvs
A study on after sales and services in tvsProjects Kart
 
5 tips for customer experience transformation
5 tips for customer experience transformation5 tips for customer experience transformation
5 tips for customer experience transformationTarang Rai
 
Measuring Customer Satisfaction (KL)
Measuring Customer Satisfaction (KL)Measuring Customer Satisfaction (KL)
Measuring Customer Satisfaction (KL)moriano1000
 
Bb Marketing
Bb MarketingBb Marketing
Bb Marketingbhagchand
 
Voice of the Customer: Internal and External
Voice of the Customer: Internal and ExternalVoice of the Customer: Internal and External
Voice of the Customer: Internal and ExternalFlevy.com Best Practices
 
Resume - for others
Resume - for othersResume - for others
Resume - for othersbhavin Patel
 
Resume vinay patni
Resume vinay patniResume vinay patni
Resume vinay patniVinay Patni
 
Customer Satisfaction Survey and consumer behaviour report towards Airtel
Customer Satisfaction Survey and consumer behaviour report towards AirtelCustomer Satisfaction Survey and consumer behaviour report towards Airtel
Customer Satisfaction Survey and consumer behaviour report towards Airtelsruthisubhash
 
A project report_on_consumer_satisfactio
A project report_on_consumer_satisfactioA project report_on_consumer_satisfactio
A project report_on_consumer_satisfactioSUDHIRKUMAR929
 

La actualidad más candente (20)

Module 6 6th p
Module 6 6th pModule 6 6th p
Module 6 6th p
 
Assessment and certification built around your needs - Top 50 Tips for Achiev...
Assessment and certification built around your needs - Top 50 Tips for Achiev...Assessment and certification built around your needs - Top 50 Tips for Achiev...
Assessment and certification built around your needs - Top 50 Tips for Achiev...
 
Synopsis of after sales service
Synopsis of after sales serviceSynopsis of after sales service
Synopsis of after sales service
 
HR Customer Satisfaction Project
HR Customer Satisfaction ProjectHR Customer Satisfaction Project
HR Customer Satisfaction Project
 
Service culture, a strong lever of differentiation
Service culture, a strong lever of differentiationService culture, a strong lever of differentiation
Service culture, a strong lever of differentiation
 
A study on after sales and services in tvs
A study on after sales and services in tvsA study on after sales and services in tvs
A study on after sales and services in tvs
 
5 tips for customer experience transformation
5 tips for customer experience transformation5 tips for customer experience transformation
5 tips for customer experience transformation
 
Measuring Customer Satisfaction (KL)
Measuring Customer Satisfaction (KL)Measuring Customer Satisfaction (KL)
Measuring Customer Satisfaction (KL)
 
Loyalty industry
Loyalty industryLoyalty industry
Loyalty industry
 
Customer service strategy social customer
Customer service strategy social customerCustomer service strategy social customer
Customer service strategy social customer
 
Customer Service Strategy
Customer Service StrategyCustomer Service Strategy
Customer Service Strategy
 
Bb Marketing
Bb MarketingBb Marketing
Bb Marketing
 
Service quality
Service qualityService quality
Service quality
 
Voice of the Customer: Internal and External
Voice of the Customer: Internal and ExternalVoice of the Customer: Internal and External
Voice of the Customer: Internal and External
 
The Service Product
The Service ProductThe Service Product
The Service Product
 
Resume - for others
Resume - for othersResume - for others
Resume - for others
 
Resume vinay patni
Resume vinay patniResume vinay patni
Resume vinay patni
 
Customer Satisfaction Survey and consumer behaviour report towards Airtel
Customer Satisfaction Survey and consumer behaviour report towards AirtelCustomer Satisfaction Survey and consumer behaviour report towards Airtel
Customer Satisfaction Survey and consumer behaviour report towards Airtel
 
A project report_on_consumer_satisfactio
A project report_on_consumer_satisfactioA project report_on_consumer_satisfactio
A project report_on_consumer_satisfactio
 
Service delivery
Service deliveryService delivery
Service delivery
 

Destacado

Funciones y actividades de enfermería en salud ocupacional
Funciones y actividades de enfermería en salud ocupacionalFunciones y actividades de enfermería en salud ocupacional
Funciones y actividades de enfermería en salud ocupacionalEstefani Jimenez
 
Power point aniberca holguin y ana rosa hidalgo
Power point aniberca holguin y ana rosa hidalgoPower point aniberca holguin y ana rosa hidalgo
Power point aniberca holguin y ana rosa hidalgoanibercaholguin2017
 
Parallel Processors (SIMD)
Parallel Processors (SIMD) Parallel Processors (SIMD)
Parallel Processors (SIMD) Ali Raza
 
Pipelining and vector processing
Pipelining and vector processingPipelining and vector processing
Pipelining and vector processingKamal Acharya
 
58-Traditional-Elegance competitive
58-Traditional-Elegance competitive58-Traditional-Elegance competitive
58-Traditional-Elegance competitiveMitchell David
 

Destacado (9)

Funciones y actividades de enfermería en salud ocupacional
Funciones y actividades de enfermería en salud ocupacionalFunciones y actividades de enfermería en salud ocupacional
Funciones y actividades de enfermería en salud ocupacional
 
Cv deekshith
Cv deekshithCv deekshith
Cv deekshith
 
Power point aniberca holguin y ana rosa hidalgo
Power point aniberca holguin y ana rosa hidalgoPower point aniberca holguin y ana rosa hidalgo
Power point aniberca holguin y ana rosa hidalgo
 
Riesgo quimico
Riesgo quimicoRiesgo quimico
Riesgo quimico
 
Parallel Processors (SIMD)
Parallel Processors (SIMD) Parallel Processors (SIMD)
Parallel Processors (SIMD)
 
Array Processor
Array ProcessorArray Processor
Array Processor
 
US7536764
US7536764US7536764
US7536764
 
Pipelining and vector processing
Pipelining and vector processingPipelining and vector processing
Pipelining and vector processing
 
58-Traditional-Elegance competitive
58-Traditional-Elegance competitive58-Traditional-Elegance competitive
58-Traditional-Elegance competitive
 

Similar a Formal Proposal

Questback "Employee engagement and customer experience surveys – two sides of...
Questback "Employee engagement and customer experience surveys – two sides of...Questback "Employee engagement and customer experience surveys – two sides of...
Questback "Employee engagement and customer experience surveys – two sides of...Questback UK
 
160831 webinar on customer satisfaction (public)
160831 webinar on customer satisfaction (public)160831 webinar on customer satisfaction (public)
160831 webinar on customer satisfaction (public)Malia Bachesta
 
Customer satisfaction of oppo mobiles
Customer satisfaction of oppo mobilesCustomer satisfaction of oppo mobiles
Customer satisfaction of oppo mobilesjyotikumari285
 
Almost done 2
Almost done 2Almost done 2
Almost done 2mohamadaA
 
Almost done 2
Almost done 2Almost done 2
Almost done 2mohamadaA
 
Conceptual framework of the study on airtel
Conceptual framework of the   study on airtelConceptual framework of the   study on airtel
Conceptual framework of the study on airtelSridharan Ravi
 
Using Call Driver Analytics to Improve Customer Care
Using Call Driver Analytics to Improve Customer CareUsing Call Driver Analytics to Improve Customer Care
Using Call Driver Analytics to Improve Customer CareRAYA CX
 
Is Customer Effort Score the new NPS?
Is Customer Effort Score the new NPS?Is Customer Effort Score the new NPS?
Is Customer Effort Score the new NPS?Support.com
 
Customer satsfaction and Recovery
Customer satsfaction and RecoveryCustomer satsfaction and Recovery
Customer satsfaction and RecoverySadaf Min
 
240 Measuring Customer Satisfaction and Complaint Handling
240 Measuring Customer Satisfaction and Complaint Handling240 Measuring Customer Satisfaction and Complaint Handling
240 Measuring Customer Satisfaction and Complaint Handlingmoriano1000
 
001 customer satisfaction surveys_white_paper_imc_research
001 customer satisfaction surveys_white_paper_imc_research001 customer satisfaction surveys_white_paper_imc_research
001 customer satisfaction surveys_white_paper_imc_researchimcResearch
 
Panviva-Don't just optimize WFO article
Panviva-Don't just optimize WFO articlePanviva-Don't just optimize WFO article
Panviva-Don't just optimize WFO articlePanviva
 
Cracking The Customer Support Efficiency Code
Cracking The Customer Support Efficiency CodeCracking The Customer Support Efficiency Code
Cracking The Customer Support Efficiency CodeWorkforce Group
 
5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf
5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf
5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdfBrothers61
 
Voice of Customer and Beyond
Voice of Customer and BeyondVoice of Customer and Beyond
Voice of Customer and BeyondLucieColt
 
Voice of Customer and Beyond
Voice of Customer and BeyondVoice of Customer and Beyond
Voice of Customer and BeyondLucieColt
 
NextTen Voice of Customer and Beyond...
NextTen Voice of Customer and Beyond...NextTen Voice of Customer and Beyond...
NextTen Voice of Customer and Beyond...LucieColt
 

Similar a Formal Proposal (20)

Questback "Employee engagement and customer experience surveys – two sides of...
Questback "Employee engagement and customer experience surveys – two sides of...Questback "Employee engagement and customer experience surveys – two sides of...
Questback "Employee engagement and customer experience surveys – two sides of...
 
160831 webinar on customer satisfaction (public)
160831 webinar on customer satisfaction (public)160831 webinar on customer satisfaction (public)
160831 webinar on customer satisfaction (public)
 
Customer satisfaction of oppo mobiles
Customer satisfaction of oppo mobilesCustomer satisfaction of oppo mobiles
Customer satisfaction of oppo mobiles
 
Almost done 2
Almost done 2Almost done 2
Almost done 2
 
Almost done 2
Almost done 2Almost done 2
Almost done 2
 
BROCHURE
BROCHUREBROCHURE
BROCHURE
 
Conceptual framework of the study on airtel
Conceptual framework of the   study on airtelConceptual framework of the   study on airtel
Conceptual framework of the study on airtel
 
Using Call Driver Analytics to Improve Customer Care
Using Call Driver Analytics to Improve Customer CareUsing Call Driver Analytics to Improve Customer Care
Using Call Driver Analytics to Improve Customer Care
 
Is Customer Effort Score the new NPS?
Is Customer Effort Score the new NPS?Is Customer Effort Score the new NPS?
Is Customer Effort Score the new NPS?
 
Customer satsfaction and Recovery
Customer satsfaction and RecoveryCustomer satsfaction and Recovery
Customer satsfaction and Recovery
 
Customer satisfaction index and service quality assurance of grameenphone ltd...
Customer satisfaction index and service quality assurance of grameenphone ltd...Customer satisfaction index and service quality assurance of grameenphone ltd...
Customer satisfaction index and service quality assurance of grameenphone ltd...
 
240 Measuring Customer Satisfaction and Complaint Handling
240 Measuring Customer Satisfaction and Complaint Handling240 Measuring Customer Satisfaction and Complaint Handling
240 Measuring Customer Satisfaction and Complaint Handling
 
001 customer satisfaction surveys_white_paper_imc_research
001 customer satisfaction surveys_white_paper_imc_research001 customer satisfaction surveys_white_paper_imc_research
001 customer satisfaction surveys_white_paper_imc_research
 
Panviva-Don't just optimize WFO article
Panviva-Don't just optimize WFO articlePanviva-Don't just optimize WFO article
Panviva-Don't just optimize WFO article
 
Cracking The Customer Support Efficiency Code
Cracking The Customer Support Efficiency CodeCracking The Customer Support Efficiency Code
Cracking The Customer Support Efficiency Code
 
5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf
5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf
5 chìa khóa để bạn thành công trong dịch vụ khách hàng.pdf
 
Voice of Customer and Beyond
Voice of Customer and BeyondVoice of Customer and Beyond
Voice of Customer and Beyond
 
Voice of Customer and Beyond
Voice of Customer and BeyondVoice of Customer and Beyond
Voice of Customer and Beyond
 
Customer success
Customer successCustomer success
Customer success
 
NextTen Voice of Customer and Beyond...
NextTen Voice of Customer and Beyond...NextTen Voice of Customer and Beyond...
NextTen Voice of Customer and Beyond...
 

Formal Proposal

  • 1. i IMPROVEMENT OF CUSTOMER SERVICE POLICIES Brittany Barnhart, Employed by Tan24 Warrensburg Tan24 Sonnen Studio November 13, 2016
  • 2. ii IMPROVEMENT OF CUSTOMER SERVICE POLICIES Matthew Gray, Owner Warrensburg Tan24 Sonnen Studio Corporate Tan24 America Inc. Brittany Barnhart, Employed by Tan24 Warrensburg Tan24 Sonnen Studio November 13, 2016
  • 3. iii November 13, 2016 Matthew Gray Warrensburg Tan24 Sonnen Studio 202 N. Holden St. Warrensburg, MO. 64093 Dear Matthew Gray, I have created the attached report to be presented to current corporate members of the Tan24 Sonnen Studio franchise. The report describes the procedures that should be implemented pertaining to customer service and improving customer satisfaction. My recommendations for increasing customer loyalty through training in personalized customer service are also included. I believe you will find these recommendations useful for the future of Tan24. Primary research included interviews with the current employees full of generalized questions of procedures they currently use to gain customer loyalty. Thank you for allowing me to submit this comprehensive report. I would be pleased to discuss this report and its conclusions with you. Contact me by phone at (660-362-1500) or email at bmb91710@ucmo.edu Sincerely, Brittany Barnhart Employee Warrensburg Tan24 Sonnen Studio
  • 4. iv TABLE OF CONTENTS EXECUTIVE SUMMARY .........................................................................................................vi INTRODUCTION: TAN24 CUSTOMER SERVICE TECHNIQUES .........................................1 DISCUSSION: CURRENT CUSTOMER SERVICE ..................................................................1 Minimum Service Standards ...............................................................................................2 Inefficiencies of the Current Standards .............................................................................2 DISCUSSION: CUSTOMER SERVICE SATISFACTION ..........................................................2 Customer Feedback ..........................................................................................................2 Improving Customer Service ...........................................................................................3 DISCUSSION: CUSTOMER LOYALTY .....................................................................................5 Benefits of Effective Policies ..............................................................................................5 Obtaining Customer Loyalty ...............................................................................................5 Preserving Loyal Customers .............................................................................................6 Cost of Implementing Policies ..........................................................................................6 SUMMARY OF CONCLUSIONS .................................................................................................9 Tan24 Sonnen Studio Current Customer Service Program ................................................9 In Support for Updated Policies ........................................................................................9 RECOMMENDATIONS ..............................................................................................................10 Implement Customer Satisfaction Surveys .......................................................................10 Implement Effective Policies and Determine Current Skills ............................................10 Training .............................................................................................................................10 Annual Meetings ...............................................................................................................10 Assess Customer Loyalty Retention and Benefits of Policies ..........................................10 APPENDIX .................................................................................................................................11 REFERENCES ...........................................................................................................................14
  • 5. v LIST OF FIGURES Figure: 1. CONCEPTUAL MODEL RESULTS ........................................................................4 2. COST OF TRAINING TO IMPLEMENT UPDATED POLICIES FOR TAN24 SONNEN STUDIO ....................................................................................................7 3. AVERAGE TRAINING COST EXPENDITURE PER HOURLY..............................8
  • 6. vi EXECUTIVE SUMMARY The Warrensburg Tan24 Sonnen Studio and corporate would benefit considerably by implementing new and updated policies for customer service. The benefits resulting from this expansion on the customer service methods are evidenced in this report, created by Brittany Barnhart, a current employee of Tan24. The purpose of this report is to analyze the current customer service policies and determine if updating them is economical to enhance customer satisfaction for Tan24 Sonnen Studio. Evaluating and updating the customer service methods would benefit the business along with its current customers and employees. My conclusions for updating the current service standards prove with research, beneficial for small businesses in competitive small markets. Testing these improved methods on current employees would lead to an expansion of customer loyalty with current customers and bring new business to Tan24 Sonnen Studio. Analysis of the research conducted reveals the following benefits: 1. Customer service is the groundwork of a small business standing out in competitive markets, success depends on the customer and the customer depends on the service. 2. Customer satisfaction relies on the improvements a business is willing to make in order tostrive for excellenceand domination in competitive markets. 3. Customer loyalty is the foundation of a small business, because the cost of gaining a new customer is much higher than selling a repeat customer. Based on these findings, it is recommended that CEO’s of small businesses take charge to save their company. To protect this business and the reputation of its exclusivity, it is imperative to implement effective customer service methods. These methods will facilitate a friendly environment and focus on customer satisfaction in order to gain future customer loyal.
  • 7. 1 INTRODUCTION: TAN24 CUSTOMER SERVICE PROCESS The main goal of Tan24 Sonnen Studio is to provide an excellent tanning experience and pristine customer service to dominate the competition in the market. However, due to the decrease in the market this past year, it has been very difficult to stand out as a company with limited customer loyalty. Customer satisfaction is a vital key to the success for small businesses success. Customer service quality and satisfaction have been the weakest link in the company recently. The customer volume is so low currently that Tan24 should take the time to update some of the procedures to prepare for the predicted busy season to make lasting impressions. The customer satisfaction rate has recently taken a downturn due to the possibility inconsistent procedures. The problem being identified: is how can we expect to gain new customers if we cannot keep the ones we already have? Some key methods discussed in the article “Improving Customer Service”, published by Faulkner & Gray, Inc. are specifically involving employees being able to process and handle high levels of dissatisfaction and complaints. The article suggests the ability to be affective problem-solvers is the key to gaining customer loyalty with the proper training and skills to take on challenging situations with the customers. This article suggests that with these skills a business can expect to gain customer loyalty and begin the route to success. Overall, this report was created to analyze the effectiveness of Tan24 Sonnen Studio’s current service techniques and standards to evaluate the possibility of improvements and if any can be made economically. This report will also observe the process to gaining customer satisfaction with goals of eventual customer loyalty. The increasing level of dissatisfaction in customer service is an issue that all businesses should address, especially small businesses. Customer service satisfaction needs focused guidelines and training with problem-solving skills and preparedness for quick solutions to situations or complaints. Following will be a discussion of benefits that will follow from the suggested improved procedures. The report will end with recommendations based on the research gathered and conclusions drawn from research. DISCUSSION: CURRENT CUSTOMER SERVICE The current customer service training for Tan24 Sonnen Studio is limited to expectations that are set based on oral translation of standards by the franchisee owner and the ‘Minimum Service Standards’ (p. 48-49) set by the “Systems Manual” provided online by Tan24 America, Inc. The current standards set by the manual are limited to four basic ethics, that are arguably the simplest methods to follow. Although, with limited customer service methods, Tan24 Sonnen Studio cannot expect to stand out and expand customer loyalty while succeeding in customer satisfaction. The importance of expanding these standards are vital to the success of a small business in a very competitive market.
  • 8. 2 Minimum Service Standards The four basic service standards outlined by Tan24 America Inc. in the “Systems Manual” promise to offer the highest quality of service. These standards include: greeting customers as they walk in the door, addressing customers by name, chatting with each client before they exit business, and cleaning every room after use. Inefficiencies of the Current Standards The setbacks involved with the current standards provided by Tan24 America Inc. are, their vague descriptions and limited standards. The ‘Minimum Service Standards’ are basic principles of knowledge assuming you have the required skill set of working with customers. These standards are directly related to expectancy of any workforce and are not helpful or specific in improving the businesses customer service or satisfaction. They do not have any sort of direction for identifying top of the line policies for a successful small business. One of the most inefficient and current issues is an assumed procedure to handle a situation or complaint is to contact management in attempt to answer a customer’s question. If management cannot be contacted, the customers are directed to check back when management is available at specified time. This is not a constructive method and has previously lead to high levels of dissatisfaction, while deterring most customers whom are expecting educated employees with professional solutions. Another issue with the current policies is being able to identify the appropriate means to compensate dissatisfied customers. The current method being used is to contact management again to handle the large portion of the issues no matter the level. It would be more efficient to have set policies and reasonable compensations to pacify the customer quickly and leave a positive lasting impression. Lastly, the current policy for training new employee is limited to a total of five days that vary throughout few weeks. This allows very limited exposure to proper customer service techniques and makes it very challenging to educate new employees on specialized exclusive customer service methods that improve customer satisfaction in business and guarantee an increase in future customer loyalty. DISCUSSION: CUSTOMER SERVICE SATISFACTION Understanding what needs improvement with the customer service policies is just as important as implementing them. In the article ‘The Adoption of Customer Service Improvement Practices’, Peter Dickson quotes “Long-term survival, evolution, and growth of organization in competitive markets depends on the superiority of an organizations improvement practices”. Dickson is referring to improvement in customer service practices in small businesses. In his article, he provides a diagram of effective tools used to improve customer service policies and explains how to determine what needs improving. Customer Feedback Customer feedback is one very important tool provided to businesses of all kinds. This allows businesses to keep in frequent contact with their customers and modify the corporation with legitimate feedback. Criticism can answer all kinds of questions businesses have on whether to
  • 9. 3 improve on certain things or not. Understanding your customer and their input on satisfaction can be very beneficial when drawing out your budget for improvements on certain products and even customer service. All customer service procedures must be evaluated before the company can establish a formal program and surveys are very helpful in this procedure. Some survey based information are: Levels of service customer expects? Current customer service level? Types of service desired? Product quality levels expected? Current product levels? Providing surveys with open-ended questions are helpful to getting the most desired answers. Another valuable way to find insights and feedback from customers is through social media, and research proves to be a necessity. Customers who have called, written, or otherwise reached out to a company privately now turn to social media to express complaints and concerns. Although 70% of complaints tend to go unanswered, customers expect you to respond to them. Consumers believe it is the business’s responsibility to address the concern. Social media now has the ability to damage a brand with current and potential followers, so it is a business’s duty to connect with not only their customers, but also the rest of their social connections as well. Improving Customer Service The article “Improving Customer Service” from an anonymous source published in the ‘Small Business Report’ journal, tell us the insights of customer’s satisfaction standards. One of the first topics the article addresses is the need for complaints to be addressed by the employee they had immediate interaction with when first entering the store. Statics provided by surveyed answers determined that the customer tends to be less irritable and dissatisfied when their question or complaint can be handle right away by this employee. Other studies showed dissatisfied customers will express their concern to five or fewer potential customers, but a disgruntled customer will express it to twenty or more. With every one dissatisfied customer, fifteen to twenty take their business elsewhere. Another suggested improvement is taking immediate action requiring that no more than 7 days should elapse before the problem/complaint is taken care. If there is no immediate solution available, the customer should be made aware that an investigation is being taken place. Also, keeping detailed documentation of situations and the solution to improve circumstances for the future. Acknowledging complaints in writing shows the customer they are important to the business and fixing the problem permanently is a top priority. Then following-up on the documented complaint is important in the overall goals of making sure the problem hasn’t returned.
  • 10. 4 FIGURE 1 CONCEPTUAL MODEL RESULTS Source: Interrelationships among service quality, customer satisfaction, and customer loyalty Research conducted by Weng-Kun Liu, Yueh-Shian Lee, and Li-Mei Hung (2016) indicated service quality is the result of certainty, confidence, reliability, acknowledgement, response, empathy, and tangibility perceived by the customer. The study started based on a hypothesis that service quality has a positive effect on customer satisfaction and customer loyalty. The indices in the primary tables show the surveyed results required for testing the hypothesis in each category. These values indicate the value is applied to measure two endogenous variables. They initiated by testing the model fit indices one at a time. The results of the value indicated that the paths of the two endogenous variables were reliable. The final conclusion results supported service quality is significantly and positively related to customer loyalty. Second the findings supported the positive influence of service quality on customer satisfaction. Third customer satisfaction had a positive influence on customer loyalty. These research results implicated that managers should improve service quality to enhance customer satisfaction and customer loyalty.
  • 11. 5 DISCUSSION: CUSTOMER LOYALTY In “Service Quality, Relational Benefits, and Customer Loyalty in a Non-Western Context” by Omneya Mokhtar Yacout, implementing the right policies for Tan24 Sonnen Studio’s customer service would lead to the overall beginning of success. Overtime, the policies will develop customer loyalty and create a positive environment for employees while applying the most effective customer satisfaction techniques at work. Benefits of Effective Policies The benefits of updating the policies create more professional and trusting procedures for customers when dealing with different problems and procedures. The environment for customers would change in a direction of confidence and develop a sense of security with Tan24 Sonnen Studio and its effective procedures. Although constructive policies are very important, relational policies such as preferential treatment, communication, and adaption to customers’ needs are also critical needs required for customer loyalty and retention. The advanced policies would also benefit by reducing complaints, conflicts, and improve positioning. These policies may be the beginning of the foundation of service quality for Tan24 Sonnen Studio. Research discovered that customer satisfaction, commitment, and trust all affected customer loyalty both directly and indirectly. The definition of customer loyalty program is a mechanism for identifying and rewarding loyal customers. The only current customer loyalty mechanism Tan24 offers customers is a free month to customers who refer two new customers. Obtaining Customer Loyalty Many factors contribute to development of customer loyalty, including customization and benefits to long-term customers. One very vital factor in developing customer loyalty is involved with relationship marketing efforts. Relationship marketing efforts are based on two perspectives according to Omneya Mokhtar Yacout in “Service Quality, Relational Benefits, and Customer Loyalty in Non-Western Context”. These two approaches, he explains, are relationship quality and relationship benefits. The perspectives start off with understanding the customer’s viewpoint and then creating a mutually beneficial relationship. The gap in the customer service field with relationships relates directly to the importance of service quality. Service quality was found to have a very distinct effect on the market performance of a business. Loyalty is the single most important indicator of long-term financial performance. Loyal customers create value for a business through positive word of mouth, voluntary customer- citizenship behaviors, coproduction assistance, social relationships, and mentoring other customers. Factors of customer loyalty begin with customer satisfaction and end with perceived performance. Many businesses are not able to exceed perceived performance, due to the lack of advanced customer service methods. The most important variables to obtain customer loyalty include commitment to the customer and an emotional tie between the customer and service provider or employee. Emotional bonding transcends into an economic exchange, implying that, customers buy from who they ‘like’. This relationship between the consumer and service provider develops social benefits of personal recognition by employees. Customer loyalty and satisfaction also develops from customization and familiarity creating friendships. This leads to confidence and a feeling of trust in the service provider while creating a barrier preventing customers from switching to other providers.
  • 12. 6 Customization benefits refer to tailoring each relationship and product/service to each individual customer. Preserving Loyal Customers Being consistent with customers and maintaining the ongoing relationship it vital to preserving loyalty. Research by Muhammad Khan in “Customer Loyalty Programs” shows loyalty programs have become some of the most influencing factors for increasing company profit. For instance, tactics and programs like ‘frequent buyer’ schemes accumulate points and develop barriers to exit. Creating programs and policies for frequent user benefits correlating with customer service and relationship beneficial relationships can create a positive impact for Tan24 and increase profit. Customers are often more loyal to a brand to improve their ability to win the ‘frequent user’ benefits. Customer loyalty is built on this trust developed between the consumer and provider and when kept up properly this trust is valuable for small businesses. Rewarding repeat customers is very imperative for a small business for the reason that it maintains and encourages an increase in sales from loyal customers and their referrals. Also, the longer the duration of the customer and company relationship the more significant and robust are the propensities to recommend the company. Providing customers, a target in which they can earn various benefits is motivating devotion. Although, many loyalty programs fail because they focus on rewarding membership and not loyalty itself. Well-maintained loyalty programs are beneficial in helping managers in getting detailed information about customer behavior and develop personalized communication and offers. Cost of Implementing Policies Poor customer service can impact a small business very heavily. “Small Business Trends”, published by Chatham Entrepreneurship, estimated that eighty-three billion dollars was lost by U.S. enterprises each year due to customer service issues. The cost of not satisfying the customer statistically is much greater than having updated policies or procedures available to handle corrections more professionally and efficiently. Developing a strong reputation for the future of a business can help balance out the financial costs of implicating updated policies to keep customers satisfied.  Recent data suggested that 89% of consumers who experienced mediocre to poor customer service will switch to another brand.  63.9% of consumers considered customer service to be more important than price when deciding if they wanted to continue their business with a company.  55% surveyed they would pay more to guarantee better customer service. The overhead cost of implementing these new policies for Tan24 Sonnen Studio in Warrensburg would be the additional training hours needed for employees to understand and adopt the new policies for customer service to guarantee customer satisfaction and start building customer loyalty.
  • 13. 7 FIGURE 2 COST OF TRAINING TO IMPLEMENT UPDATED POLICIES FOR TAN24 SONNEN STUDIO Source: Tan24 Sonnen Studio Time Sheet Record The additional training hours would cost $120 a week and consist of two weeks in a month for the month of December 2016 and January 2017. This would in total cost of $480 dollars to implement the new policies for Tan24 Sonnen Studio. Em ployees: Additional Training Manager: Total Cost: Week ending: Regular Hours Overtime Training Hours Total Monday Dec . 12, 2016 11am -5pm 3pm -5pm 8.00 Tuesday Dec . 13, 2017 11am -5pm 3pm -5pm 8.00 Wednesday Dec . 14, 2018 11am -5pm n/a 6.00 Thursday Dec . 15, 2019 11am -5pm 3pm -5pm 8.00 Friday Dec . 16, 2020 11am -5pm 3pm -5pm 8.00 Saturday Dec . 17, 2021 10am -2pm 10am -2pm 8.00 Sunday Dec . 18, 2022 n/a n/a n/a Total hours 34.00 12.00 46.00 Rate per hour $10.00 $10.00 $10.00 Total pay $340.00 $120.00 $460.00 G.W.,Brittany Brittany B. White, G. White Tan24 Sonnen Studio Brittany Barnhart Weekly time record 12 hours 120$ Total additional c ost for Training Polic ies would be $120 a week B.W.,Brittany Dec em ber 17.2016 Day Employees B.W.,Brittany G.W.,Brittany n/a B.W.,Brittany
  • 14. 8 FIGURE 3 AVERAGE TRAINING COST EXPENDITURE PER HOURLY Source: Created in excel Average Training Cost Category Budget Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Trends Employee Hours 2,000$ 1,200$ 1,600$ 1,840$ 2,000$ 1,600$ 1,200$ Training Hours 500$ 240$ 240$ -$ -$ -$ -$ Total 2,500$ 1,440$ 1,840$ 1,840$ 2,000$ 1,600$ 1,200$ Under/(Over) 660$ 660$ 500$ 900$ 1,300$ 1,060$ Progress Category Target Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Actual Totals Customer Loyalty 8,000$ 3,699$ 5,598$ 6,998$ 9,047$ 6,518$ 6,248$ 38,105.60$ Total 8,000$ 3,699$ 5,598$ 6,998$ 9,047$ 6,518$ 6,248$ 38,105.60$
  • 15. 9 SUMMARY OF CONCLUSIONS Tan24 Sonnen Studios Current Customer Service Program Analysis of the research presented in this report and observation of customer service satisfaction operations has led to the following conclusions about Tan24 Sonnen Studio: 1. The current policies are inefficient due to the few methods available by Tan24 America Inc., and the descriptions do not assist in helpful information or training employee’s to be successful in customer service satisfaction. 2. Due to the lack of current implemented policies, the structure of customer service is unorganized and blatantly unprofessional in 80% of customer dissatisfaction situations. 3. Customer loyalty programs are almost non-existent, cutting off a source to develop customer service satisfaction for long-term customers. 4. Due to the lack of polices, reasonable compensation for customer dissatisfaction is undetermined creating conflicts in hasty situations. In Support for Updated Policies Furthermore, this research supports the overall advantage of updating the policies for the improvement of customer service. The following conclusions can be drawn: 1. Updating the current policies related to customer service satisfaction will improve business with customers and establish a positive environment for employees to handle situations. 2. Once employees are equipped with proper training on the policies, an overall boost in customer satisfaction will lead to providing the best customer service. 3. Creating customer loyalty programs for long-term customers will develop a incentive to make more frequent purchases. 4. Relational development between service providers and customers will create the strongest barrier to exit for consumers.
  • 16. 10 RECOMMEDATIONS Supported by the findings and conclusions of this report, the following recommendations are offered to improve customer satisfaction and guarantee future customer loyalty for Tan24 Sonnen Studio: Implement Customer Satisfaction Surveys Proceeding with surveys is the most efficient way to find out what customers are thinking. Surveying the consumers with an incentive will determine after results are collected the current customer service satisfaction level. It is important to understand how well your business is providing customer service to current consumers, so you can improve to keep them and gain new customers. Implement Effective Policies. Determine Current Skills Understanding the current state your business with customer surveys will determine which policies to implement. All the research provided helps establish foundations for constructing specific policies. Determining the current skills each employee possesses will assist in defining what they need more training on. The updated methods to improve customer service satisfaction: 1. Appropriate compensations for certain levels of customer dissatisfaction. 2. Extend employee training in the future to include specialized training on customer service satisfaction. 3. Acknowledging customer complaints quickly and documenting situations to eliminate problem. 4. Customer loyalty programs to reward long-term customers. 5. Build relationships with customers to understand their viewpoint and preference. 6. Offer personalized customer service to each customer in an attempt to build a customized relationship creating a barrier to exit. Training Training is the only cost of updating and implementing the policies with the current service providers of Tan24. Training on customer service would allow employees to practice building relationships with customers and improve on solving complaints more effectively. Annual Meetings Annual meetings will be necessary to follow-up on the success of the new policies with employees to discuss topics like; how complaints were handled. How closely the company’s service systems fulfill its objectives. If any aspects of the program should be changed. Which elements were successful. Frequency of errors. Assess Customer Loyalty Retention and Benefits of Policies After a six-month period of the new customer service policies being executed, the business Tan24 Sonnen Studio should assess customer satisfaction level with another survey. Then assess financial statistics involved with membership renewal and customer retention.
  • 17. 11 APPENDIX Interview Questions Brandy White Employee Tan24 Sonnen Studio 1. What do you think we can improve on regarding customer service at this store? 2. If a customer is dissatisfied, what can we do to change that? 3. Do you believe you were trained on problem-solving techniques for Tan24? 4. Do you believe you were trained on specialized customer service techniques specifically for Tan24? 5. How do you compensate customers for a mistake made on the job here at Tan24? 6. Do you think a series of specialized customer service training exercises with employees would improve customer satisfaction for Tan24? 7. How do you think other employees deal with dissatisfied customers? 8. Do you believe that if procedures were implemented to follow, your job would be easier? 9. Do you believe there has been a decline in customers this year? Customer satisfaction? 10. Are you able to say you had proper training for this job?
  • 18. 12 CustomerSatisfactionSurvey Tan24 Sonnen Studio 202 N. Holden St. Warrensburg,MO. 64093 (660) 362-1500 Tan24 Sonnen Studio requests your help. Pleasecomplete the followingCustomer Satisfaction Survey based on the project we recently completed for your organization.Thank you for your time. Customer Name: How did you hear about us? Why did you decide to use us? [Customer Name] [Answer] [Answer] Employee reference Date: [Project Manager] [Date] 1. Customer Service  Less than expected  As expected  More than expected  Consistently more 2. Staff Knowledge  Less than expected  As expected  More than expected  Consistently more 3. Communication  Less than expected  As expected  More than expected  Consistently more 4. Feedback  Less than expected  As expected  More than expected  Consistently more 5. Overall Performance of employee  Less than desirable  As expected  Better than expected  Consistently better
  • 19. 13 6. Online Resources  Less than expected  As expected  More than expected  Consistently more 7. After Sales Service  Less than expected  As expected  More than expected  Consistently more 8. Price  Less than expected  As expected  More than expected  Consistently more 9. Cleanliness  Less than expected  As expected  More than expected  Consistently more 10. Overall Service  Less than desirable  As expected  Better than expected  Consistently better 11. Comments / Testimonial: [Addyourcommentshere.]  Would you recommend Tan24 Sonnen Studio?  Wouldyouuse Tan24 SonnenStudioagain? Thank youverymuch fortakingthe time to complete thissurvey.Yourfeedbackisvaluedandverymuch appreciated!
  • 20. 14 REFERENCES Anonymous. (1987, November). Improving Customer Service -- Customer Satisfaction Yields. Small Business Report, 12(11), 66-72. Retrieved from http://search.proquest.com.cyrano.ucmo.edu:2048/docview/214380492/abstract/5BF3B6 5497E94E4BPQ/1?accountid=6143 Dickson, P. R. (2013, October 18). The Adoption of Customer Service Improvement Practices. Business and Economics--Marketing and Purchasing, 26(1), 1-15. Retrieved November 11, 2016, from http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1651746357/abstract/2DE7C D566BF54293PQ/1?accountid=6143 S. (2016, January 22). Tips to Improve Customer Service Satisfaction. Advertising and Public Relations, 1. Retrieved November 11, 2016, from http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1830424374/citation/144DE D01AD2F4747PQ/1?accountid=6143 Liu, W., Lee, Y., & Hung, L. (2016, September 1). The interrelationships among service quality, customer satisfaction, and customer loyalty: Examination of the fast-food industry. Foodservice Business Research, 1-17. Retrieved November 11, 2016, from http://www.tandfonline.com.cyrano.ucmo.edu:2048/doi/full/10.1080/15378020.2016.120 1644?scroll=top&needAccess=true Yacout, O. M. (2010, December). Service Quality, Relational Benefits, and Customer Loyalty in a Non-Western Context. S.A.M Advanced Management Journal, 75(1), 2-22. Retrieved November 26, 2016, from http://search.proquest.com.cyrano.ucmo.edu:2048/docview/523039508/abstract/49C8296 77B8543F6PQ/1?accountid=6143 Khan, M. T. (2014, February). Customer Loyalty Programs-Concepts, Types, Goals, and Benefits. International Journal of Information, Business and Management, 6(1), 74-93. Retrieved November 27, 2016, from http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1511381985/abstract/C04531 C634B44774PQ/1?accountid=6143 Newstex Entrepreneurship Blogs, Chatham. (2014, April 9). Small Business Trends: How Much Can Poor Customer Service Cost your Business. ProQuest. Retrieved November 27, 2016, from http://search.proquest.com.cyrano.ucmo.edu:2048/docview/1513906922/fulltext/366E36 997F1641A1PQ/1?accountid=6143