Customer Service Management: An Analysis of Coles and Foodland

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This report provides a comparative analysis of customer service management at Coles and Foodland, two leading retail supermarkets in Australia. It evaluates customer experiences, specifically focusing on online product returns and the emotional responses of customers. The report highlights the differences in service quality, professionalism, and empathy displayed by the customer service representatives of each company. Through a detailed examination of specific incidents, the report assesses the relative performance of Coles and Foodland, considering factors such as customer satisfaction, store layout, product variety, and perceived value proposition. The report concludes with recommendations for both companies, suggesting ways to enhance their customer service strategies and improve overall customer experience, aiming to foster customer loyalty and gain a competitive advantage in the retail market.
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Running head: CUSTOMER SERVICE MANAGEMENT
Customer Service Management
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Introduction
Customer service management is one of the essential activities that any business
organization has to give adequate importance, such that customer satisfaction could be achieved.
The customers’ services offered by the business organization highlights the number of customers
being attracted to the business organization (Blut et al. 2015). The customer services include
guidance provided to the customers, promptness of the employees, politeness and courtesy.
Professionalism is also an important factor to be maintained, in order to achieve customer
satisfaction. Personalization of the services, according to the demand of the customers is also an
important part of customers’ service management (So et al. 2016). This assignment highlights
the evaluation of the encounters of two business organizations namely Coles and Foodland. Both
these companies are retail supermarkets and are leaders Australia. The evaluation of the
emotional responses has been shed light upon in this assignment, along with a comparison of the
relative performance. The emotional responses of the customers, in the encounters of the same
incidents highlight the effectiveness of the customer services in both the companies. Finally,
recommendations have been added for each of the companies. The ways the companies could
enhance their customer’s services have been shed light upon in this assignment.
Evaluation of the encounters
Coles and Foodland are two major grocery and food retail chains in Australia. Both these
supermarkets have been the leaders in the Australian market, outperforming each other in every
survey. The issue that is faced is in the return of the products bough online. I had bought few
grocery products from both Coles and Foodland. However, the experience in the return with
Foodland was much better than that of Coles. In Foodland, as I requested the return of the
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products online, immediately I was contacted by a customer care service professional. The
professional wanted to know the details of the issue that I faced and the reason I wanted to return
the products that I have bought. Moreover, the customer service professional was empathetic
towards me and apologised several times, while I communicated that rotten and out dated
products were delivered to me. The customer service professional of Foodland guided me with
the following steps that I need to take in order to return the goods that were not in order. He
apologized several times for the mistake and ensures that the same incident will not be repeated
again. The next time I placed an order with Woodland they compensated for their mistakes and
give me a lot of free items along with the products that I had ordered. They clearly explained to
me that due to some delay in their supply chain and the logistics management, the orders placed
were delivered to me rotten. Though, I will disappointed at first yet the guidance and empathy
that I got from the customer service professional of Foodland made me understand their problem.
While I face the same issue with Coles, the behaviour that I got from the customer
service professionals was more painful and annoying than wrong products being delivered to me.
When I lodged a complaint due to incorrect delivery of orders, the customer service professional
behave with me very rudely. They were very reluctant to replace the order and force me to take
the wrong products being delivered to me. Moreover when I ask for compensation they refused.
The behaviour of the customer service professionals were not professional at all and were
unexpected. I did not get any empathy from them rather I was blamed for not verifying when the
products while they were being delivered. I was totally dissatisfied with the customer services
provided by Coles.
Evaluation of the emotional responses
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In the incidence of long products being delivered to me by Coles and return products
being delivered by Foodland, was equally unexpected and annoying. However in case of
Foodland, I had a better experience than in Coles. The professionals of Foodland and the
customer service executive were very helpful and empathetic. They reviewed the problem and
guided me towards the next steps. Since wrong product delivered to me, I was angry as well as
sad. However, the professionals of Foodland handled my anger very efficiently. At times I was
angry with their irresponsibility and was rude to the customer service executive. However they
understood the pain that I was going through and hence they did not behave rudely with me as a
response of my rude behaviour. As the problem was solved by the customer service
professionals I realised my mistake. Mistake in delivery of the product might happen once in a
while. I could have handled it with more patience. Later I felt that my anger and rude behaviour
towards the customer service professionals was unjustified.
Comparison of the relative performances and alignment of the customer perceived value
proposition
The performance of food land commendable and has outperformed the retail market
chain Coles. Along with achieving the best customer service award, Foodland has also been
chosen for the best store layout, freshness of the food, as well as product variety. The product of
food is fresh and cheaper than the other competitive Supermarket stores (Kursunluoglu 2014).
The store layouts are well planned and help the customers find the product of their choice very
easily (Orel and Kara 2014). The stores also have special facilities for the disabled as well as the
elderly citizens. The customer service professionals assist the disabled people and the elderly
citizens to find their products (Jahanshani et al. 2014). The company is also active in the CSR
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activities (Lin and Bennett 2014). Along with hosting various charitable activities, Foodland
hosts various sports event and other cultural or charitable activities (Parniangtong 2017).
Though Coles is also of Supermarket retail Chain and is a good performer, yet the leading
position has been taken by Foodland.
The customer perceived value proposition of Foodland is higher than that of Coles. With the
same amount of money a customer is able to get more products from Foodland, than from Coles.
Thus, along with obtaining fresh food products and groceries, the customers are able to save
certain amount of money while shopping at Foodland. In order to influence the value of
perception of the customers the priority of the company needs to be communicated to its regular
customers (Hurewitz 2014). Along with priority at low cost product equality has to be ensured.
The efficient customer services will help enhancement in the customer perceived value, thus
increasing the business to a significant amount.
Recommendations
In order to ensure that both the companies are able to enhance their shares and business
remarkably few recommendations have been given. Foodland needs to ensure that they maintain
their standard of the fresh products as well as mention the low cost. The priority that is given to
the customer services should be retained, so that they are able to attract more customers along
with loyal customer retention (Suryandari and Paswan 2014). It is also recommended that they
introduced loyalty bonus for the customers so that they get more discount than the other
customers. This will help in retaining old customers.
For Coles, it is recommended that they give priority to the customer services in order to
attract more customers along with retention of old customers. The price of the product should
also be regulated in order to ensure that the customers can save certain amount of money while
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shopping. The customer service professionals need to be trained more efficiently so that they are
able to handle the customer care and empathy does avoiding loss of loyal customers.
Conclusion
Customer services have a key role to play for any business organisation. The customer
services include guidance to the customers for selecting the product along with assistance in after
sale services being provided to the customers. The customer services include in store guidance,
along with online assistance to the customers. Issues and problems faced by the customers have
to be looked after by the customer service executives. It is important that Coles and Foodland
give priority to the customer services such that they are able to attract more customers along with
the retention of old customers. Customer satisfaction could be achieved if the customer services
are given efficiently. Thus, along with quality enhancement and price reduction, the customer
services have to be prioritised in order to achieve competitive advantage over the contemporary
retail grocery chains. Personalised services are to be given to the customers such that they feel
important. Customisation of products and services helps in establishing customer relationship by
increasing the number of customers. Strong customer relationship is important for effective
Customer services. Loyalty programs for the customers are also effective in enhancing the
customer services and establishing a positive customer relationship. Customers feel the priority
that is being given to them, thus attracting and retaining them. Empathy towards customers
along with professionalism has to be maintained by the customer service executive to enhance
the services given to the customers.
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References
Blut, M., Frennea, C.M., Mittal, V. and Mothersbaugh, D.L., 2015. How procedural, financial
and relational switching costs affect customer satisfaction, repurchase intentions, and repurchase
behavior: A meta-analysis. International Journal of Research in Marketing, 32(2), pp.226-229.
Hurewitz, M.., 2014. Retail customer service interaction system and method. U.S. Patent
Application 14/180,484.
Jahanshani, A.A., Hajizadeh, G.M.A., Mirdhamadi, S.A., Nawaser, K. and Khaksar, S.M.S.,
2014. Study the effects of customer service and product quality on customer satisfaction and
loyalty.
Kursunluoglu, E., 2014. Shopping centre customer service: creating customer satisfaction and
loyalty. Marketing Intelligence & Planning, 32(4), pp.528-548.
Lin, Z. and Bennett, D., 2014. Examining retail customer experience and the moderation effect
of loyalty programmes. International Journal of Retail & Distribution Management, 42(10),
pp.929-947.
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.
Parniangtong, S., 2017. Competitive Advantage of Customer Centricity.
So, K.K.F., King, C., Sparks, B.A. and Wang, Y., 2016. Enhancing customer relationships with
retail service brands: The role of customer engagement. Journal of Service Management, 27(2),
pp.170-193.
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Suryandari, R.T. and Paswan, A.K., 2014. Online customer service and retail type-product
congruence. Journal of Retailing and Consumer Services, 21(1), pp.69-76.
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