Why is it important to provide excellent
customer service?
Introduction
For this assignment I have been asked to write a report on customer service and its
importance for two contrasting businesses. I have selected McDonalds and Tesco.
The reason why I have chosen McDonalds is because they are one of the most
successful fast-food chains in the world and have a very strong customer service
understanding. The reason why I’ve selected Tesco is because I frequently shop
there, and they sell a wide range of products for all types of customers. They are
also the market leader for UK supermarkets. Tesco utilises strong customer service
to stay ahead of competition and gain customer loyalty.
Part A
(P1) Different approaches to customer service delivery in contrasting
businesses:
What is customer service?
Customer service is when a business will provide assistance and advice to
customers, this could be before or after a purchase has been made. It is important
for the business to provide good customer service so the customer is left with a
positive experience with the business as not to damage their image, this also
increases the chances of repeat business.
Different types of customers
It is important a business understands the different types of customers it can expect
to encounter as they will all react differently to certain customer service methods.
The types of customers that McDonald’s and Tesco attract are similar as they appeal
to the masses. The types of customers a business interacts with will fall into one of
two categories, internal or external. External customers are people who will come to
the business in interest of its products or services. An external customer is someone
who has a direct link to the business such as employees or stakeholders.
External customers
● Average customer - This is the largest and most common group of
customers a business can expect to encounter. They typically do not require
any special treatment for a business to attract them, they are usually drawn in
1
, Unit 14 Assignment 1
by a business's product, service or unique selling points. Tesco’s draws in this
type of customer with ease as they are the leading supermarket in the UK,
however this is due to years of working to draw customers in with it’s cheap
prices and good products.
● Families - Families also take up a large proportion of customers, certain
things should be taken into account when planning for this type of customer
such as for McDonald’s, access to highchairs or baby changing. It is important
to have patience with this customer type as typically there will be young
children involved who can be difficult to deal with sometimes, for example
having patience when a child is deciding which meal they would like to order.
● Disabled - It is vital that businesses accommodate for diabled people as if
they dont they could lose a large number of customers. This can be as simple
as providing ramps for wheelchairs, diabled toilets or even having a staff
member who knows sign language. The majority if not all of McDonald’s and
Tesco’s will be disabled accessible.
Internal customers
● Employees - It is vital a business provides a pleasant experience for its
employees to ensure maximum satisfaction and efficiency in the workforce. A
number of methods may be used such as providing benefits for employees
such as discounts etc.
● Shareholders - It is very important for a business to keep its shareholders
happy and interested in the business as they play a vital role in the
businesses upkeep. Tesco achieves this by holding general meetings with
stakeholders and allowing the opportunity to ask questions relating to
business.
McDonalds
McDonalds is one of the largest fast food franchises globally so in order to stay
ahead of competitors it is essential they provide good customer service. McDonalds
offer in-store and online customer service. McDonald’s in-store customer service is
usually fast and informal, employees will get questions or complaints answered and
resolved quickly. McDonalds offers customer service online via email and phone. As
McDonalds is a franchise you can either contact the head office or specific stores
with different enquiries.
Tesco
Tesco is the largest supermarket chain in the UK, with just over 4000 stores. They
offer in-store and online customer service to its customers. It is important that Tesco
offer multiple channels of customer service seeing as they allow customers to pick
up their own items or have them delivered so it needs to be kept accessible to
everyone. Customer service received in store is likely to be more informal than
online feedback. Tesco are available via phone every day of the week and if you
2