When customers buy manufactured goods, such as a mobile phone, a
magazine, a bicycle, some new clothes or a computer, they usually know
precisely what they are getting. These products have tangible qualities.
Customers make choices based on the particular features of each
product. Retailers need to provide good customer service, so that
customers can find out more about products before making a purchase and
can get a refund or after-sales service if a product proves to be faulty
or unsatisfactory. However, customer service is only a small part of
the overall offer. For example, a customer may expect good service when
buying some new shoes, but this is unlikely to be the main factor in
deciding whether to make a purchase. Factors like price, comfort, style
and brand are likely to be more persuasive.
Customer service is more important for businesses that provide
services rather than physical products. In fact it is often good
customer service that wins and keeps customers in the first place. Many
service industries provide essentially similar products. For example,
all hotels provide accommodation and most offer food as well. All banks
offer customers current and savings accounts. It can be difficult to
differentiate between service products. They have intangible qualities.
This is why it is important to ensure that customers have a good
experience.
Good customer service can be used by businesses to position
themselves in the marketplace. Positioning helps an organisation to
become distinctive. It helps consumers to make choices.
first direct is a division of the HSBC Bank. It
provides a range of banking services, offering customers products such
as current accounts, credit cards, savings accounts, insurance and
loans. What is different is that
first direct does not
have a branch network. Customers access services over the internet or by
telephone or through mobile phone banking services and text messaging.
first direct
has been providing online banking services for almost 20 years. It now
has more than 3,000 employees and 1.1 million customers. Over 80% of
transactions use the online channel. For customers that wish to contact
the bank by phone,
first direct 's UK call centres work 24 hours a day, 7 days a week, 365 days a year. They receive more than 200,000 calls each week.
This case study shows how the online bank
first direct
positions itself in the retail banking sector. It illustrates how
customer service has become a key factor in helping the bank to
differentiate its offer to customers in a competitive market.
