The Importance of Personalizing Customer Service

This assignment provides a brief research on the importance of personalizing customer service, which is essential for building relationships with customers. It outlines examples from different firms that have used this concept to enhance buyer experiences and improve service quality. The assessment focuses on significant problems faced by small fashion retailers like Paul Smith Marylebone in the UK, including low prices, huge competition, and changing market trends. Based on potential issues, the research concludes with solutions and effectiveness of personalizing customer services for improving purchaser relationship management advocacy.

RESEARCH PROJECT

INTRODUCTION...........................................................................................................................1
Thesis statement: To assess influence of personalized customer services on customer and
profits of business: A case study on Paul Smith Marylebone High Street Store”.......................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Thesis statement: To assess influence of personalized customer services on customer and profits
of business: A case study on Paul Smith Marylebone High Street Store”
Personalised customer products and services is the best approach of attracting buyers
towards business and its services. In this the seller offers unique goods according to specific
demand of particular buyer. The strategy helps the firm in managing innovation in services as per
market trends and customers’ needs and wants. The essay will outline impact of personalized
customer services on profits and buyers of Paul Smith Marylebone High Street Store, which
serves designer women and men clothes and accessories.
MAIN BODY
Personalizing services is the biggest advantage to the small business organisation as it helps
the entity in meeting customer needs and wants according to their choice and opinion. The
approach helps the business in valuing its potential buyers by not rigidly sticking to rule book. It
is necessary for the firm to address consumer needs in order to improvise buying experience of
customers. In accordance with personalizing services concept the business can address all the
basic requirements of consumers. There are various ways by which several organisations make
use of personalised services like, launching loyalty programs where the potential buyers are
offered continuous schemes and heavy discounts on regular purchase. Honouring shoppers trust
is the biggest loop of personalizing customer services where it is important for the organisation
to maintain transparency with purchaser (Barabier, 2018). The approach is maintained by
enterprise creating straightforward privacy policy where customer holds the power to make final
decision of purchase, refund and exchange.
In addition, large and medium size enterprise make use of loyalty cards where card is
given to customer and point is added with every purchase. These points are free of cost and can
be availed by consumer during any day shopping. Apart from this, personalizing customer
services deals with designing of products and services by consuming with buyers like River
island fashion retailer who designs clothes according to needs to customer. This demonstrates
values of each individual to a firm. Moreover, offering personalised apparel is a beneficial
strategy for small organisation because it reduces the risk of waste and pilling up of stock. For
example, Paul Smith Marylebone High Street store can focus on designing unique design of
1

apparels according to each buyer. It is an interesting approach which will help the designers in
managing uniqueness retail services.
Figure 1: Trending: Personalized Customer Service
(Source: What’s Trending: Personalized Customer Service, 2017)
On the basis of above illustration, it is demonstrated personalizing services for purchaser
play a significant role in improving business and its market image. As per the facts, it is clear
that buying experience of 87 percent of purchased depends on store management which included
associates, manager and sales staff. Apparently, 77 percent of customer seeks for the sales
associate who have assisted the buyers in pat shopping experience. This denotes their trust and
connection with particular person during in store shopping. Apart from this, shopping experience
of 84 percent of shoppers depends on recommendation of sales associate as they have more
knowledge about outfit and quality. Similarly, according to 73 % of purchased recommendation
of sales associate have positive impact on their buying patterns and choices.
Every business uses different ways to personalize its services and make profits out of it.
The ultimate objective of incorporating this concept is increasing customer satisfaction and value
of organisational products and services (Lemke, Clark and Wilson, 2011). For example, Black
penny small restaurant café made its services personalize by adding unique touch like greeting
buyers with their name, offering them service by adding one line about their nature, etc. Thus, it
can be said that motive of business behind personalizing is to gain loyalty of customer which is
directly proportional to profits. There are numerous firm who have gained consumer trust and
loyalty by personalizing their services like Tesco, Marks and Spencer, Aldi, etc. For example,
Marks and Spencer, which is leading fashion retailer of UK offers its products online as well as
2

offline. The main focus of business sin on attracting different population group for which the
firm focuses on personalizing its services. The strategy used by M& S for branding its services
are marketing and different loyalty programs like, discounts, free merchandise, etc.
Hidden cost behind personalizing buyer’s services depends on the ways which are used
by company for effective branding. Cost of customer service is important for the business in
order to maintain balance between sales and profits. The purchase and sales of services is based
on personalize services offered by business to its particular buyer. In accordance, with this, it can
be said that hidden cost include improvising of consumer experience and building relationship
with buyers (Lemon and Verhoef, 2016). Branding of products and services by adding own
unique touch helps the organisation in innovation management and denotes hunger of firm to
patron own brand. Thus, from the discussion it can be outlined that personalizing goods and
services assist the firm in gaining loyal life-long customer.
Significant problem
In accordance with fashion retailer high street store, the biggest problems faced by firm is
substitute products at low price, huge competition and changing market trends. Paul Smith
Marylebone is a designer High Street Store in London. The store has limited outlet and limited
customer because of increasing substitute, emergence of e commerce and dynamic customer
requirement. As per discussion over success of personalized customer services, it has been
evaluated that the most significant problems of firm ins lack of customization and branding
strategy. The business is limited to few loyal buyers an own unique designs.
It is essential for the fashion retailer to match market trends and gain insights over
changing buyers requirements. Moreover, the increase in price and customer acquisition are the
biggest challenge for Paul Smith Marylebone. On the other hand, it can be argued that small
scale apparel business faces difficulty in meeting expectation of buyers due to which the
individuals are unable to make optimum utilisation of resources which is leads to waste and
impact cost effectiveness of an organisation (Homburg, Jozić and Kuehnl, 2017). As per analysis
of problem faced by retailer it can be implied that all the issues get piled up and hinder customer
services of firm.
Causes of problem
There are numerous causes of problems which are becoming barrier to customer services
of Paul Smith Marylebone. The firm offers limited designs of clothing and that too at high price.
3

Further, the business does not use any marketing technique to reach customer and improvise its
service experience of buyers. However, as per the views of Parise, Guinan and Kafka, 2016,
growing consumerism is the major cause of challenges faced by fashion retailer where buyers
have too many option for same designer product. Buyers are sensitive to trends and their
demand changes frequently as per change in fashion industry. Therefore, matching up the
changing needs of customer is the biggest threat which need to be addressed in order to boost
sales and increase market presence.
Creating unique experience for visitor is the responsibility of store management for
which gaining attention of consumer is major concern. On the basis of problems, it can be said
that lack of personalisation in services and in store entertainment is the significant cause of
customer acquisition and loyalty (Kay and Kummerfeld, 2012). In addition, uniqueness in
apparels and selling strategies are the strategy for inventory management, which are not followed
by Paul Smith Marylebone.
Solution to problem
In accordance with significant problems faced by Paul Smith Marylebone, it can be said
that the firm can adopt personalize customer services approach which will reduce the need of
marketing but on the other hand will helps the firm in boosting sales. As per the approach the
firm will make clear buyer experience vision which will be based on culture and behaviours of
enterprise with its customers. It is the best thing which will help the business in gaining attention
of visitors. Further, the store management will be focusing on understanding buyers according to
their individual requirement in order to make their buying experience simpler. This will assist
small business in connecting and communication with customers. It is important for the firm to
interact with consumer because it helps in analysing the need of training and development an
improvement in product quality and services. Personalizing will be effective for fashion retailer
because in this the management will be able to design clothes according to buyers need and
wants and that will help in inventory management and optimum utilisation of resources.
Apparently, Buhalis and Amaranggana, 2015, suggested that personalizing customer
services plays a vital role for small firm because it creates emotion connect with buyers. It
promotes easy understanding and customer loyalty which plays significant role in branding.
Moreover, the scholar discussed about capturing feedback which plays a critical role in
improvising business services. It can be done by Paul Smith Marylebone by making outbound
4

call to every visitor to gains insights over their experience and needs of changes in services,
quality, in store experience, etc. Likewise, acting on feedback is a mandatory step which will
help fashion retailer in overall improvement that is inventory management and customer loyalty.
Personalizing of services plays crucial role in improving enterprise and its services. For
example, manager of Paul Smith Marylebone outlet can use name of customer during
conversation which will helps the individual in building connect with buyers and gaining their
trust. The use of name and reacting according to customer situation is the best strategy to
personalize services as it develops bond of trust and friendliness. As per the views of Orel and
Kara, 2014, keeping personal and buying history of customer is beneficial strategy for
personalized customer experience because this reveals buying pattern of individual on the basis
which the firm can offer discounts and schemes to particular buyers. Paul Smith Marylebone can
make use of loyalty programs for enhancing its customer service where the management can
offer coupons, merchandise and rewards on particular product to seek attention of group of
buyers at same time.
Thus, it can be summarized by outlining that small business management can improvise
its services by implanting various techniques of personalizing purchaser experience like training
and development to sales associate for assisting shoppers while shopping can help in gaining
insights over individuals buying perception. In addition, allocating sales staff at right place in
store to assist consumer and influence their buying decision is another effective strategy which
can help Paul Smith Marylebone in dealing with problems like, high price for designer clothes,
increasing competition and dynamic market trends.
Effectiveness of solution
Loyalty of buyers is an indicator of success as it derives consumer perception towards
business and its products and services. Effectiveness of solution will be reflected by tracking
return on investment where the small business management will be able to evaluate its increase
is sales and revenue. The increase in sales and customer will demonstrate benefit of
personalizing customer services. According to Amatriain, 2013, success of personalizing is
denoted with two factors that is customer relationship management and service quality. The
relationship with customer is informal aspect but will help Paul Smith Marylebone in service
personalization and determining changing expectation of buyers. However, service quality is a
formal aspect which will aid small fashion retailer in serving buyers satisfaction and advocacy.
5

CONCLUSION
The essay summarized brief research over importance of personalizing customer service
approach which helps the business in building relationship with customers. It outlined example
of different firm using this concept for enhancing buyer’s experiences and improving quality of
own services. Further, the assessment focused on significant problems faced by Paul Smith
Marylebone, a small size high street designer store in UK. The major challenges which are faced
by SME are low price, huge competition and changing market trends. On the basis of potential
issues, the research concluded with solution and effectiveness of personalising customer services
for improving purchaser relationship management advocacy.
6

REFERENCES
Books and journals
Amatriain, X., 2013, October. Beyond data: from user information to business value through
personalized recommendations and consumer science. In Proceedings of the 22nd ACM
international conference on Information & Knowledge Management (pp. 2201-2208).
ACM.
Buhalis, D. and Amaranggana, A., 2015. Smart tourism destinations enhancing tourism
experience through personalisation of services. In Information and communication
technologies in tourism 2015. Springer, Cham. (pp. 377-389).
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science. 45(3). pp.377-401.
Kay, J. and Kummerfeld, B., 2012. Creating personalized systems that people can scrutinize and
control: Drivers, principles and experience. ACM Transactions on Interactive Intelligent
Systems (TiiS). 2(4). p.24.
Lemke, F., Clark, M. and Wilson, H., 2011. Customer experience quality: an exploration in
business and consumer contexts using repertory grid technique. Journal of the Academy
of Marketing Science. 39(6). pp.846-869.
Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the
customer journey. Journal of Marketing. 80(6). pp.69-96.
Orel, F.D. and Kara, A., 2014. Supermarket self-checkout service quality, customer satisfaction,
and loyalty: Empirical evidence from an emerging market. Journal of Retailing and
Consumer Services, 21(2), pp.118-129.
Parise, S., Guinan, P.J. and Kafka, R., 2016. Solving the crisis of immediacy: How digital
technology can transform the customer experience. Business Horizons. 59(4). pp.411-
420.
Online
Barabier, L., 2018. Personalized Customer Service: How to Deliver and Drive Loyalty. [Online].
Available through: < https://aircall.io/blog/personalized-customer-service/ >.
1

What’s Trending: Personalized Customer Service. 2017. [Online]. Available through: <
https://retailconnection.dstewart.com/2017/02/15/whats-trending-personalized-customer-
service/ >.
2