Customer service is essential for the sustainable organization

1. PREMIER UNIVERSITY
B.B.A
Organizational Behavior
Submitted to
Lecturer. Rahima Begum
Premier University, Chittagong.
Submitted By:
Semester: 6th
Batch: 22th Section: “A”
Course Title:
Organizational Behavior

2. Assignment Topics:
Customer service is essential for the sustainable organization
Group: D
Prepared By
No. Student ID Name
1 1022114412 Md. Ariful Islam Saimon Chowdhury
2 1022114372 Md.Shahadat Hossain
3 1021114362 Imteaj Ibna Hossain
4 1022114413 Md. Rashel
5 1022114384 Md.Shazzad Hossain
6 1022114427 Saddam Hossain Chy.

3. Executive Summary:
Customer service is a universal concept; most companies have a customer service department.
Companies that keep quality at the forefront of their operations are on track to becoming a better
company and provide their customers with the quality service they deserve and should expect. Some
of the benefits of providing quality customer service include increased revenues, improved customer
service and customer loyalty. Customer service is become essential for a sustainable organization.
With poor customer service organization cannot run its operations successfully
Introduction:
Customer service is no doubt a major contributor when it comes to sustainable profit growth in
business. In the current economic environment, which is quite volatile, a business firm cannot afford
to lose it customers. It is applicable to all small and big business firms out there, irrespective of which
section of the society they cater to, or how long they have been in business. A customer who has
turned his back to your business will seldom come back to you, with so many options available for
him out there. Nowadays, it is very easy to bring a customer to your doorstep.
Objjecttiivess off tthe Sttudy::
The followings objectives may be with this identified study as presented below:
 To know about the customer service.
 To know about benefits of customer service.
 To know about importance of customer service for a sustainable organization.
 To know about how poor customer service impact a sustainable organization.
 Definition of Customers Service:
Customer service is basically the relationship that a company builds with its customers. It involves
providing support during the purchasing process and after. A company has to make sure that both the
service and the purchasing of a product has left the customer satisfied and happy. The reason why that
is important to a corporation is that a satisfied customer will not only return without looking at
alternatives or comparing prices, but will recommend the store or firm to family members and friends.
 Advantage of customer services:
Increased Revenues:
Quality customer service means increased revenues, and revenue increases translate to additional
customer sales. When customer service meets or exceeds customer expectations, the customer is
confident in the company's abilities and thus inclined to spend more money to purchase the company's
products and services. This can directly translate to the company's "bottom line."

4. Enhanced Company Reputation:
Companies are known for the service they provide. When customers have a bad experience with a
company, they will tell their friends, neighbors and anyone else who will listen. When customers have
positive interactions with a company, they will also relay that information. Through the use of blogs,
websites and social media, customers are communicating about their interactions with a company and
its products and services. Quality customer service gives a company a good reputation.
Increased Customer Satisfaction:
Customer satisfaction occurs because their needs are met. Providing quality customer service means
that the company is meeting and exceeding customers' expectations. One of the best ways to find out
what customers think about a company is to simply ask through customer satisfaction surveys. The
surveys should ask questions about the most recent customer experience with the company, the quality
of the company's products and services and what the customer does not like about the company. The
surveys also should not be afraid to ask the customer what he likes about the company's competition.
Customer Loyalty:
Quality customer service translates into customer loyalty. If the organization truly meets and exceeds
customer expectations, the customer will be hesitant to use the services of a competitor. Often,
competitors enter the industry and offer their services for a lower price. The industry leader can avoid
a "price war" by offering and maintaining quality customer service. When customers are confident in
the company's customer service, they remain loyal to the company.
Engaged Employees:
Quality customer service means that employees are spending time using their skills to enhance the
business. Instead of encountering the same problem repeatedly, employees take the steps necessary to
satisfy the customer but also take steps to prevent the problem from recurring. The employee leaves a
positive impression on the customer, directly affects the company's operations and gains a sense of
accomplishment. It is a win-win-win solution for the customer, company and employer.
Marketing:
Creating a vibrant corporation demands a lot of hard work which involves the retaining of customers
and the recruiting of new ones. To achieve that, customers must be happy with the behavior of your
corporation. Customer service cannot be separated from marketing, because both departments are
aimed at expanding the customer base.
Example:
When Apple launched a trendy gadget called iPhone, for instance, it marked the beginning of the end
of portable CD players. And because customers were satisfied with the product, when the iPhone was
launched, it sold remarkably well. Against that backdrop, Apple did not need to do much to
successfully launch its iPad because it already had a loyal customer base and a reputation
Social Responsibility:
Customer service is also about corporate image. How the public perceives a corporation is increasingly
becoming critical. In January 2010, H&M, a giant Swedish clothing store, faced angry protests in New
York City after one of its outlets in Manhattan was found to have destroyed unsold garments. Instead

5. of giving the garments to the homeless in the middle of one of the most cold winters, the store decided
to cut and trash them. Most corporations give back to the community through donations. Others build
a hospital or a school. Some sponsor cancer research, for instance. That strategy is a combination of
public relations, marketing and customer service.
Reduces the cost of gaining new customer:
The cost of gaining new customers is much more than retaining the old ones. Good customer service
from a company helps to retain old satisfied customers, thus, reducing the cost a company incurs on
luring new ones. Along with this, positive feedback from old clients automatically generates new
clients for a company.
Helps to beat the competitors:
Organizations that provide excellent customer services outperform competitors and become leaders in the
industry. Even if such a company offers services and products at little higher rates, customers prefer
purchasing it from them. This is due to the fact that excellent customer service promotes excellent after sales
service. This is one of the most important factor determining sales.
 Why is Customer Service essintional for the sustainable organization?
Sales and Income Generation:
The main advantage of customer service is that it contributes to a substantial amount of sales leads,
thus leading to an increase in income generation for the company. If your product or company has a
reputation of providing the best in class product services, more people will be attracted to your
offerings.
Maintaining Current Customers:
Customer service is very crucial in order to keep current customers loyal to your product. If customers
are satisfied with using your products, there are very less chances of them moving on to another brand.
Loyal customers are those who keep the product in demand.
Chain Advertising:
Chain advertising can even be referred to as getting your product publicized by 'word of mouth'. If
customers are satisfied by your service, they would naturally inform their close ones about the services
you provide on your products. This creates a lot of advertising from satisfied customers. This is really
beneficial, especially if you have just started out with the business.
Company Reputation:
More than profits, the goodwill of the company is considered extremely important. Customer service
is provided to make the company or product unique amongst its competitors. The goodwill of a brand
is what makes the company reliable for consumers. It is again a factor that includes a rise in sales and
eventually revenue for the company.
Customer Feedback and Product Improvisations :

6. Customer service also includes feedback regarding used products. This is very useful for companies to
know what customers really want and what they are being offered. This in turn enables the company to
improvise their product line as per customer feedback. It also helps them identify flaws in processes
that products go through. Handling and processing complaints from consumers is also a helpful
parameter for the brand to improve its quality.
These are just a few apparent reasons and explanations regarding why customer service is important to
a company. Companies need to note that smooth operations primarily depend on their reputation in the
eyes of customers. Since no business can run without customers, its ultimately their satisfaction that
plays a very important role. In order to survive in the tough market competition, providing excellent
customer service is very important.
 Essential of Customer Service for sustainable organization today :
Quality Customer Experience:
According to U.S. News and World Reports, “82 percent of customers leave one business and go to
another because of a customer service issue.” If this is so, providing quality customer service should
not be taken lightly by any business. A good customer service system is one of the best value-added
services a business can offer to its customers. A quality customer experience plays a huge role in
customer preferences, leading to customers choosing a company even if they don’t necessarily have
the lowest prices.
Increased Customer Loyalty:
A transaction should not end when a customer buys a product, because if your business offers more
than one product or service, the chances of that same customer coming back and buying another
product are high. This is where customer service comes in. Providing quality customer care assures
your customer that you care about their satisfaction, and this impression builds an avenue for the
person to come back again. Keeping existing customers is also a lot less work than finding new ones,
and providing quality customer care will do just that for a business.
Increased Sales:
A dissatisfied customer who leaves your establishment can cause a lot of harm. According to Small
Business Success, a person who experiences unpleasant service tells at least nine more people about it.
On the other hand, a person who is pleased with your service will serve as a good advertising medium
for your business, enticing others to come to you because of the excellent customer service rendered.
Increase Number of Customers:
Outstanding customer care will also help increase your customer count. A single satisfied client can
draw more customers to your business and may even be more effective than other kinds of
advertisements, especially because they are more trusted sources as compared to impersonal ads.
People who don’t usually purchase your products can also be enticed when they hear about special
customer treatments and great customer satisfaction.
Employee Relations:
For employees and staff, providing quality customer service can be a rewarding experience. When
they make customers happy with excellent customer service, they will be able to pride themselves in
being part of the organization. Job satisfaction is directly correlated to positive feedback from
customers, and, this also leads to increased productivity among staff.

7. Sustainable Advantage and Shareholder Value:
In service industries, customer relationships are a critical driver of sustainable advantage because they
are difficult to imitate or replace. Multiple studies have shown that these relationships can have a
measurable impact on firms’ economic performance. In addition, studies have shown that excellent
customer service also generates increased returns to shareholders.
Sustainable strategic advantage: The “Wow!” Experience of Unilever
Exceeding expectations certainly delights customers, but a customer service strategy that relies on
constantly exceeding expectations is likely to fail a test of sustainability. The executives we spoke
with at companies that have achieved sustainable strategic service believe that instead of trying to
generate individual “wow!” experiences for thousands of customers, the better approach is to
consistently meet their customers’ high expectations. In the long run, this builds trust and reaffirms,
rather than inflates, their expectations, thus forming the basis for long-term customer relationships that
translate into a sustainable strategic advantage for the company.
 Why is good customer service so important for such organizations?
Customer retention is one of the biggest goals for any company, and quality customer service is an
easy and effective way to achieve this goal. According to the Institute of Food Technologists, a
nonprofit scientific society whose members work in food science and technology, a customer will tell
five to seven other people when they experience an unpleasant incident. Poor customer service can
result in not only losing the customer who experienced it forever, but it can also deter potential
customers from considering your restaurant the next time they are craving a double cheeseburger.
 Service is way to success
Providing excellent customer service has always been an important ingredient for success, especially
in the food and restaurant business. Eating out has become more of an unnecessary luxury than it was
considered even a few years ago, so it is more important than ever to let your customers know that you
appreciate their business. Provide your customers with exemplary customer service to keep them
coming back for seconds
 Other example:
Now many banks in Bangladesh have designed their customer service model and invested in
developing a reliable and respectable 'customer experience' model. Many bank executives in
Bangladesh now would go 'extra miles' to satisfy their clients. Few are even investing in creating
'wow' factor for the clients. A distinguished few are trying to become 'listening bank', always lending
their ears to the clients. This has started more to happen with the introduction of retail banking and
more precisely with the launch 'priority banking' or of 'privilege banking' by few banks in Bangladesh
Customer service of the IFIC bank
Customer service is the most vital factor for any organization. When this question comes about a bank
than it becomes more important because a bank is directly involves with its customer. To run the
business safe and soundly a Bank must have to maintain a good relation with each and every customer.
Basically a bank provides cash deposit service, utility bills payment service, small finances, corporate
or business finance services, loan related services etc. IFIC Bank also provides all this kinds of

8. services for its customers. IFIC Bank has got that much qualified service team who can provide the
best service to the customers and can make the customer a satisfied one.
The Best Ones: worldwide
APPLE - Dells's loss, Apple's Gain
The American Consumer Satisfaction Index (ASCI)* second quarter report indicates that within the
Personal Computers category, customers perceived Apple as the best company in terms of customer
service.
GE - Black Belts in Customer Service
In the major appliances category, the ASCI survey has named the General Electric company no. 1 with
a baseline score of 81 and a Q2 2006 score was 82. Among other things, a company blog is a very
good way for organizations to keep in touch with their customers,
TOYOTA MOTOR CORPORATION - the company to emulate in the automobile industry
Within the automobiles section, Toyota is the leader , Katheryn Potterf says, "No wonder Toyota
Motor Corporation is the envy of other manufacturers. The quality and reliability of its vehicles are the
gold standard of the industry. Customer loyalty is so high that Toyota can make money without
offering extreme discounts."Being customer-centric is part of the Toyota Way, which is based on
"pure logic and pure respect…"
GOOGLE - Dynamism and Consistency are Key
Search engines Q2 2006 score of 81. The google experience is a classic example of a company
committed to wowing its customers based on consistent quality and constant innovation over the years.
SOUTHWEST AIRLINES CO. - Happy Employees = Happy Customers
Within the airlines industry, Southwest Airlines had a baseline ASCI score of 78. Innovations such as
Ding!, along with a passion for customer service is what keeps southwest ahead of the competition. In
‘Customer Satisfaction and Willingness to Pay,' Kelly Shermach says, "Southwest Airlines (NYSE:
LUV) recently introduced DING!, a free program that sends audible electronic notices to a consumer's
desktop. Today's dinged fares typically undercut Southwest's published fares."
 How Lack of Customer Service Can Impact a sustainable organization:
Poor customer service can negatively impact a business in a variety of ways. This is especially true for
small businesses that rely on repeat business and positive word-of-mouth advertising for its success. In

9. addition to running the risk of alienating current customers with sub-standard service levels,
chronically poor service can impact the business’ potential for attracting new customers as well.
Loss of Business
Nearly every respondent to the Consumer Forum survey said poor customer service "would compel
them to take their business elsewhere." That translates into a loss of sales opportunities from poor
customer service. That loss is multiplied, because the survey found that 80 percent of respondents
share their customer service experiences--good or bad--with their "friends, family and associates."
Less Room for Error
No matter how good your product or service is, delivered with poor customer service, your customer is
less likely to be impressed with it.
Loss of Current Customers
Poor levels of customer service can cause you to lose even the most forgiving of customers.
Consumers tend to do business with a company because it’s convenient, it’s a habit, or they’re looking
for particular product or service that’s hard to find elsewhere. Even these stalwart customers can be
turned away by inferior levels of service.
Loss of Potential Customers
Poor customer service has the potential to cost your business customers before they even buy a thing.
When new patrons walk into a business and find themselves ignored, talked down to or subjected to
long lines and uneducated employees, they might head for the door before they even reach for their
wallets. Anything that makes it challenging or unpleasant for a person to do business with you should
be cause for alarm, warning you that your service levels need improvement.
Loss of Future Customers
Customers who experience poor service levels often tell their friends and family members about the
bad experience to warn them away. This will cost your business potential customers. People will have
already formed a negative opinion of your business before ever setting foot in your door.
Loss of Reputation
A reputation for poor service can be hard to shake. It can keep other businesses from partnering or
working with you. It also can turn away good employment candidates who might assume that if
customers are treated poorly, employees are treated badly as well.
Loss of Employees
Even poor-performing employees don’t like to be yelled at or scorned by unpleased customers, which
can result in high turnover among your workforce. it is costly and time consuming to constantly have
to advertise for new workers, then screen and train them. Customers might start to wonder why your
business can’t retain staff members and question the management practices of your business.
Loss of Profits

10. Poor customer service typically results in fewer customers, which translates into lower sales and
profits for your business. This can initiate a vicious cycle in which a company tries to save money on
staffing or customer service training, which makes service levels spiral downward even further. A
company that can't keep pace with the financial demands of running a business faces increasing
operating debt and ultimately, a loss of the business.
Needs Go Unfulfilled
If a customer does not feel that his needs are being addressed or that the business representative is
more concerned with what he feels the customers needs than what the customer is requesting, the
customer is less likely to buy from the company. This will have a immediate impact on the bottom
line.
Greater Expenditure
In today's competitive times, your business must make the most of the customers you have. Poor
customer service drives away customers like nothing else and you end up expending greater time,
money and manpower on attracting new ones. Keeping your old customers happy is advantageous in
more ways than one: Customer loyalty translates into repeat sales, good referrals and positive reviews,
all of which spell success for your business.
Decline of Word-of-Mouth Sales
When customers are unsatisfied with either the product or service a company offered, they will not
recommend the company to others. The customer might also go as far as to recommend others not
patronize the business based on their negative experience. This will affect sales and could lead to
financial problems for the business.
Decline of Repeat Customers:
It costs less to retain current customers than it does to attract new ones. Good customer service keeps
customers happy. If needs go unmet, or the acknowledgment of a less-than-stellar product is lacking
along with an attempt to satisfy customers, customers might buy from the business once, but will not
return. If a company has to spend a constant portion of their operating budget attracting new
customers, it can lead to a cash flow problem, which can be the death knell for a business.
Considerations:
When offering customer service, the offer must be genuine. Business representatives must remember
that without customers, the business would not exist, nor would their jobs. Customer service staff must
remain polite and conciliatory, even when faced with an angry or rude customer.
 What Are the Causes of Poor Customer Service?
Lack of Incentives
Customer service representatives are often paid minimum wage with no incentives or benefits. The
cost of lacking incentives is quality of work. With many companies willing to hire employees under
these sub-par conditions, the job alone doesn't create a high work ethic among workers.

11. Not Enough Workers
Poor customer service is often a result of not having enough workers for the job. Without a
substantiate number of employees, hold time may be too long. Representatives may be rushed to
complete the transaction, or there may be no one available to help at all.
Poor Equipment
As a result of budget cuts or cost-saving techniques, important technological upgrades may be avoided
by a company, leading to poor customer service at no fault to the representative.
No Training
An untrained worker may have to call for help frequently. She may show a low level of self-confidence
when dealing with customers or simply not work at all because of a lack of knowledge
regarding what to do.
A Bad Day
We've all had bad days for millions of reasons, and it's easy to take it out on the wrong person.
Sometimes a simple bad day for an employee could ruin service for a customer.
 Good vs. Bad Customer Service that impact an organization
Service Time
Service time is one of the most important factors in determining whether a business has good or bad
customer service. Slow or inefficient service is considered bad customer service. This is why
companies such as McDonald's (customers are to be served in 90 seconds or less on average) have
made a commitment to fast service.
Product Quality
Though fast service is important, a business should not compromise on the quality of the product or
service that is delivered. When a business representative sells a poorly designed product to a customer,
it will degrade the customer's opinion of the business and its commitment to good customer service.
Greetings
When the customer is greeted at the door of a retail store or business office, it instantly gives him a
positive feeling about the business. Alternatively, the customer will prepare himself for a bad customer
service experience if he is ignored or treated like he is a low priority.
 Developing an Effective Customer Service Strategy:
Develop and implement an effective customer service strategy.
 Identify your target customers
 Determine what your customers want
 Create a culture of customer service
 Clearly communicate service standards and expectations
 Provide consistent service across channels
 Establish a vision for Customer Service excellence
 Implement an external strategy

12.  Focus on recruiting and retaining good employees
 Empower employees to resolve customer service problems
 Develop good communications and rewards system

 Why is Customer Service Important?
In Our View point
70% of people who took part had stopped dealing with an organisation in the last year. Out of those,
an amazing 54% of people stopped dealing with a company because they had not been able to handle
a complaint or a problem satisfactorily.
Even in a year when people are constantly reminded of the cost of living, the credit crunch and
recession, the reasons that people were leaving organisations didn’t come down to price they came
down to service.
26% did move because of price, but tellingly, 12% of those people wouldn’t have looked for a cheaper
price if they had been happy with the service provided.
So, if anyone is in doubt, customer service matters, and handling customers when there is a problem or
a complaint is both a key skill and an essential practice.
Customers don’t call companies (very often ) to thank them for the fact that their mobile got a signal,
that they could send emails, that they pressed a switch and they got electricity. As consumers we
phone with orders, queries and when things go wrong.
What Customers Are Saying About Customer Service?
Customer service really matters to us:
94% of respondents in a recent Katzenbach Partners survey of American consumers said that customer
service is important to them.
We’re willing to pay more to get it.
82% of Americans said that they’re likely to spend more money at stores where they get better
customer service.
Companies aren’t improving their customer service. In fact, almost half of us think it’s getting
worse.
80% of Americans said that over the past few years they have not seen any improvement in customer
service, and over half of this group said things are getting worse.
When we have a bad service experience…we don’t come back.
62% of Americans reported that if they had a bad service experience with a retailer or service
provider, they would not purchase from them again.

13.  Improving of Customer service a sustainable organization:
If satisfy customers then organization will be sustained in the dynamic world. Managers must take
some initiatives to satisfy its customer which is called Customer-responsive culture according to
Stephen Robins.
 Customer- responsive culture:
It is from management point of view to meet up customer expectations there are many employees are
available. Managers and employees must maintain a courtesy and friendly relationship with customer.
It is a culture in which employees are friendly and courteous, accessible, knowledgeable, prompt in
responding to customer needs and willing to do what’s necessary to please the customer.
 Customer Relationship Management (CRM):
Customer Relationship Management (CRM) is a business strategy that enables organizations to get
closer to their customers, to better serve their needs, improve customer service, enhance customer
satisfaction and thereby maximize customer loyalty and retention.
CRM solutions give the company the functionality and integration needed to meet the customers’ and
other stakeholders’ demands .It will help the organization to be customer centric with the kind of
individual care and attention that today’s consumers expect. At the same time, it enables the company
to achieve strategic business goals, such as lower costs through process automation and optimization,
increased productivity of front- and back-office staff, lower churn, and greater profitability.
 The Empathy Engine Alternative:
To capture this broader conception of customer service, introduce the Empathy Engine. In the
Empathy Engine, senior leaders, managers and frontline employees work together to collectively stand
in their customers’ shoes in order to better understand and resolve customer needs. Specifically,
Empathy Engine companies consistently strive to:
 Understand and resolve customers’ problems at minimum cost to customers
 Create a company-wide culture of empathy
 Empathize with and give decision-making power to their frontline employees so they can focus
on generating excellent customer service
 Sustain a company-wide service ethos through storytelling
 View the frontline as a driver of customer service innovation
 View customer service as a profit-generating activity and important contributor to shareholder
value, rather than “just a cost center”
 Recommendations:
There are some important factors to consider in customer service:
 Hire people or executives with a service attitude. Hire those people who enjoy serving others, their
employer and even their communities.
 Every time shared with a customer should be considered as an experience.
 A representative must know the happenings or changes inside the company.
 Every decision should be made keeping the customer in mind so that it is easy to make the
customer approve any new business or launch.

14.  At every staff meeting make it a point that the customer has importance.
Continuously improve and add value.
 The employer should encourage the employees to do the right thing.
 Create an atmosphere of excellence.
 Customer should be contacted only by a trained employee.
 A welcoming environment should be created for the customers.
 Be sure that there is enough staff.
 Listen carefully to the customer and also offer enthusiastic practical help.
 Practice courtesy and respect.
 Take both positive and negative feedback for improvisation.
 Readily accessible and always available for the customer.
 Timely service.
Today, the majority of employees in developed countries work in service jobs including technical
support representatives, fast-food counter workers, sales clerks, waiters, nurses, financial planners and
flight attendants. Many organizations have failed because its employees failed to please customers.
Organizational Behavior provides considerable guidance in helping managers create customer-responsive
culture to please customer.
 Example of customer service is essential for the sustainable organization:
Grameen Phone has been successful to build a superior image in comparison to the other operators. In
other words, GP has a clear advantage over the competitors. It has some additional features in
comparison to its competitors. It is playing a vital role to increase the subscribers and GP users are
mostly satisfied with the initial price of GP connections and handsets. Because, before GP‟s
introduction to the market, mobile phones were totally out of reach to the major part of the current
market. Moreover, Grameen Phone subscribers are happy with the country wide network. In spite of
this, GP users are not satisfied with service of the company. Considering the importance of customer
satisfaction, this project was designed to assess the satisfaction level of GP‟s subscribers.
If GP does not take care of these dissatisfactions and other company enters the market with similar
offers, it will be difficult for them to keep current market share intact. A survey was thus conducted
focusing on different customer satisfaction factors of Grameen Phone. Many important factors are
acting behind this overall dissatisfaction. Significant dissatisfactions were observed in the factors like
quality of air time and network availability, service of helpline, service of info centers, high billing
rate, and so on. Customer satisfaction was observed in the areas like initial price, wide network etc.
Most importantly, a significant portion of the GP subscribers were found not fully loyal toward the
company. At this moment GP is trying to reach the customers with various promotional activities and
are attempting to make their brand presence felt. Through their significant advances in Bangladesh,
they are moving ahead on the track to achieve their goals.
 Conclusion:
"The customer is always right" is a famous business slogan. The underlying truth behind this statement
is recognizing that customers are the life blood for any business. Understanding the importance of
good customer service is essential for a healthy business in creating new customers, keeping loyal
customers, and developing referrals for future customers. Companies that push customer service
beyond the frontline are able to realize, in a sustainable way, the highest levels of long-term benefits
from their customer service activities.