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Unit 29 Understanding Retailing - P3

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Unit 29 Understanding Retailing - P3

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Unit 29 – P3 Kojar Ahmed


Customer service is defned as “The assistance and advice provided by a company to those people
who buy or use its products or services.” Customer service is an important aspect to the success of
business, this is why it helps when a business has the resources to develop a dedicated customer
service team. Having good customer service comes with a lot of benefts, for example, if customers
are satisfed with the level of customer service provided, they may tell their friends, thus giving the
business free promotion, which then leads to more customers and increased revenue. One other
beneft to having good customer service is that consumers will have more confdence in buying your
products because they are assured that any problems will be dealt with accordingly. This is a key
ingredient in ensuring your customers return in the future to buy more of your products.

Having poor customer service can afect a business in many ways, the most common of which is a
bad reputation and/or negative reviews, these can then have even larger implications such as a
decrease in returning customers and ultimately, lower revenue. Studies have found that bad
customer service has been responsible for a loss of over £37 billion a year, this mostly stems from
failures in businesses to change the way they operate even when receiving customer complaints,
this then leads to the loss of brand loyalty. Source: htp://uk.businessinsider.com/bad-customer-
service-costs-uk-frms-over-37-billion-a-year-2017-2

In this report, I will be exploring John Lewis’ customer service at an operational level and will analyse
how this makes them a successful business, I will do this whilst comparing their service to other
retail businesses such as Primark.

John Lewis is a well-known retailer that specialises in luxury or high-end goods. This is efectively
done through their marketing which allows them to sell products at a slightly higher price. John
Lewis is able to do this because of their popularity and success within the market, which ensures
customers that they strive to give them the best shopping experience available.

John Lewis uses many methods to give the best customer service possible. They do this by training
all their employees how to handle customers and complaints, this allows them to handle frustrated
and agitated customers in a professional manner. They are also trained to always provide a helping
hand whenever they see a customer might need assistance. As well as this, John Lewis also claims to
always adhere to a manufacturer’s guarantee, this not only protects the consumer but makes John
Lewis look like a reliable retailer.

In order to provide the best customer service experience possible, some businesses collect data on
their consumers to beter understand their needs and issues. This is done on their website through
the use of ‘cookies’ which track and keep a record of what customers click on and what products
they may be interested In. Whether or not this information comes in handy for customer service is
debateable.

Most businesses use some sort of ICT when communicating with consumers. This is especially true
for large retailers such as John Lewis because they can aford the servers and domain names. One
way in which John Lewis uses ICT is by giving their customers reward cards which they can use at a
later date when they have accumulated enough points. Consumers can also leave reviews on what
they thought about the service provided.

Customer relationship management (CRM) is an approach to manage a company's interaction with
current and potential customers. It uses data analysis about customers' history with a company to
improve business relationships with customers, specifcally focusing on customer retention and
ultimately driving sales growth. John Lewis uses this by tracking how customers interact with their

Connected book
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Catherine Richards, Rob Dransfield BTEC Level 3 National Business Student Book 2
Publisher: augustus 2010 ISBN: 9781846906350 Edition: 2

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