PSYCHOLOGICAL ASPECTS of CUSTOMER SERVICE

By Rhoades, Merle | Career Planning and Adult Development Journal, Winter 2016 | Go to article overview

PSYCHOLOGICAL ASPECTS of CUSTOMER SERVICE


Rhoades, Merle, Career Planning and Adult Development Journal


Introduction

Every organization, including businesses and schools, should take steps in providing excellent customer services; both internally and externally. All employees are responsible for developing excellent customer service. Using psychology in understanding various types of personalities and applying tools that are adaptable to each human behavior style can make a difference in building better relationships and providing excellent customer service.

In using the term "Customer Service," most people think of only the business community where a company provides assistance to the people who buy or use its products or services. However, customer service goes beyond the business community. It is the ability to develop trust, understanding and communication of the customer's needs and wants; this can take place in any organization including schools. It is the relationship between two or more people. It can be external (outside of the organization) or internal (inside the organization.) It involves people, personalities, and human behavior.

Poor customer service costs billions of dollars each year in business and industry; it also costs internally with turnovers caused from conflicts, stress, and communication problems between coworkers or supervisors due to the lack of understanding of one another. The writer of this article has spent many years in studying human behavior within and outside of various organizations. He recently coauthored a book with Carolyn Kalil called Brighten Up Your Internal and External Customers Service Through Inner Heroes. In this paper, he focuses on four key areas of customer service:

* Psychological Aspects

* Stress and Personalities

* Verbal and Nonverbal Communications

* Conflict and the Irate Customer

What are the Psychological Aspects of Customer Service and It's Importance?

Poor customer service costs U.S. companies $41 billion a year according to a research study by NewVoiceMedia. According to the research, 93% of the customers who received inadequate service will take action. The study also revealed that 59% of the people between the ages of 25 and 34 say that they have experienced poor customer service on the internet with 34% admitting that when that happens, they take revenge. Research done by Bain Consulting shows that a 5% increase in customer retention can increase a company's profitability by 75%. Gartner Group (and others) often say that 80% of your company's future revenue will come from 20% of your existing customers. Lee Resource Inc. says that attracting new customers will cost your company five times more than keeping an existing customer."

Author and consultant Gregory Smith wrote, "It takes an average of seven calls for a salesperson to close a new account versus three calls to close the sale of an existing customer." Businesses have learned the needs of existing customers, but it takes time to discover the needs of a new customer.

Attracting new customers is expensive. It takes time to find a new customer and develop trust. It costs money to market your products, services, and company's reputation. It may take several months of business to offset the account's start-up costs.

Why do customers leave? Some customers die (1%); some move away (3%); some leave because of product dissatisfaction (14%); some leave because of the price (9%). However, some research studies indicate that 68% of the customers leave because they felt the business associate did not care. The "indifferent" attitude is where the psychological aspect comes into play with customer service.

There are other statistics revealed in a new book published by Dr. Merle Rhoades and Carolyn Kalil titled, Brighten Up Your Internal and External Customers through Inner Heroes. The book, filled with examples of internal and external customer situations, show how the understanding of inner heroes work within both customer groups.

Internal customers are the people who you work with inside of an organization. …

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