Customer Service and Productivity – GCSE Business Studies Revision

Customer Service

  • It’s the experience the customer has when it deals with the business
  • You want it to be a good experience for them!
  • It also involves the extent to which their needs / expectations are met
  • You want repeat purchase, customer loyalty and more customers
  • Having a reputation for good customer service will get you this!
  • It’s a major selling point that can put you ahead of the competition
  • Having bad customer service will ruin your sales because customers go elsewhere

Important Factors

  • Products must be good quality, and meet customers’ needs
  • Service (e.g. deliveries) must be on-time
  • Innovate to stay ahead of the competition
  • You could consider collaborating with another company
  • Spot problems before the customers do!
  • Deal with the customers’ complaints swiftly
  • Train your staff to be nice to customers
  • Exceed expectations – to get you the good reputation

Productivity

  • How much you can make with the resources available
  • The amount a worker produces in a certain amount of time
  • To calculate productivity, divide the amount of products made by the amount of workers that helped to make them
  • Increasing productivity helps the business because more products are made, so more can be sold, so more money is made, without hiring more employees

Productivity = Total Output / Number of Workers

Saving Money

  • You can raise productivity by:
  • Training Staff so they know what they’re doing, work faster and make fewer mistakes
  • Getting Better Equipment so you can work faster, save materials and improve quality
  • Increase Work Efficiency by changing the environment, break times, etc.
  • This can lead to happy workers who are more committed to their jobs

A note on cost-effectiveness

  • To be cost-effective is to save money and produce the most economical outcome
  • You can do this by:
  • Finding cheaper  suppliers to buy from
  • Relocating to somewhere cheaper
  • Changing the design of the product to use less expensive materials
  • There are other ways to increase revenue and reduce costs, in a different post
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About Matt

I like writing, filmmaking, programming and gaming, and prefer creating media to consuming it. On the topic of consumption, I'm also a big fan of eating.
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