Essay
Unit 29: Understanding retailing - D2
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Unit 29: assess the impact of different sales techniques and customer service in a selected organisation.
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The business that I'll be carrying out a research to find out the poor customerservice it has faced will be Scottish power energy firm. I'll be concluding my report
upon the fact of this source: http://www.dailymail.co.uk/news/article-
3236098/Energy-giants-rated-worst-customer-service-Scottish-Power-Npower-
named-shamed-study-100-household-brands.html. This source has the report which
the media has displayed how and why Scottish power performed very bad in terms
of customer servicing.
The impact on Scottish power resulting poor customer service
There's so many reports circulating on the internet which displays that Scottish
power gives out poor customer service. This has an impact on Scottish power
reputation because customers would like to purchase a companies products and
services if they have a good reputation. In this case Scottish power has been listed
as the worst company for poor customer service. Scottish power has been ranked
second last which is very bad on their reputation and this will affect bringing In
more customers. Therefore this will affect Scottish power overall performance and
operation of the business as the sales and profits will drop. It's been stated in a
report "The energy company is bottom of a table of Britain’s 100 biggest brands
ranked for customer service, with a rating of just 59 per cent".
There's been reports that Scottish power has overcharges millions of families by £6
billion over five years, according to an investigation by the Competition and Markets
Authority. Customers of Scottish Power lost out after it has introduced computerized
billing systems with disastrous results. Thousands were not sent bills for months on
end, others were given inaccurate bills and many more were told to pay direct debit
demands that were wrong. This has a huge impact on Scottish power, because it
has charged millions of their customers across the UK far more than they are
expected due to their fault and error In their technology. The computerized billing
system did not send bills for months on end, and other customers were given
inaccurate bills, this will have a great impact on Scottish power as they won't be
trusted or used far more than before due to their mistakes and not taking charge of
the responsibilities of the business. This has later on raged many customers across
the UK to write thousands of reviews based on Scottish power bad customer service,
and the results were shocking and terrible as it will affect Scottish power reputation.
The source for Scottish power bad customer service is listed below:
https://www.scottishpower.co.uk/about-us/performance/complaintsperformance/
There's been reports of the customers who were calling Scottish power over the bad
customer services they were providing. The families wanted to solve the problems
over the inaccurate charge on the services and fake bills, however the firm kept the
call on hold and then rejected or avoided the calls. A customer quotes that "
‘useless customer service and unhelpful standardized replies", another customer
, quotes that " They have been incredibly unhelpful, rude and blamed us for a fault
they have admitted is their own".
The impact that Scottish power has faced due to the bad customer service is that
hundreds and thousands of customers have switch their service from Scottish power
to another supplier which is more trusted and reliable. This was all due to the faulty
and error of Scottish power technology as they gave out fake bills, and inaccurate
readings to the customers and this resulted in overcharging the customers for the
wrong reasons.
Another impact which Scottish power is facing by the energy regulator Ofgem, is
that they've said Scottish power was banned from actively recruiting customers for
12 days due to its poor record on resolving complaints. This has a significant impact
on Scottish power as they can't service or provide service to customers for 12 days,
and this will result in less operation of the business and fewer profits and this can
affect the business revenue.
Scottish power response to the impacts
Scottish power has responded to the impacts by servicing more than 2000
customers who have been dealt very badly by their customers service, in
compensation Scottish power is giving the customers free energy until all the
problems are solved.
Scottish power responded to the inaccurate bills and the fault of the new
computerized billing system by completing an enormous task which was to migrate
over 5 million customer accounts to a new customer management system. This was
a tricky task as it involved in significant investment and careful management.
Scottish power has completed the migration of the customers to the new database
and they are on the final stage by stabilizing the new system to avoid any errors or
faulty from the system which can affect the customer service. The advantages of
the new system is that in the longer term it will benefit customers and it's already
helping Scottish power to develop their service offering more generally.
In addition, Scottish power made two commitments of their new service of
technology to improve customer services. The commitments were that: 'to ensure
that no customer will be left out of pocket as a result of any service problems arising
from the migration to our new system'. Second commitment, ' we are working hard
to make it easier for our customers to contact us and to answer every call, email
and complaint as quickly as possible'.
To address the first commitment, Scottish power has responded to the impacts of
bad customer service by awarding compensation to customers who have suffered
account problems as a result of the system implementation, including defined
reductions if we delay in sending live or final bills to customers and appropriate
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