SCHOOL OF BUSINESS MANAGEMENT
BM0169 – Customer Relationship Management
Semester 2, 2017/18
ICA 1: SERVICE ENCOUNTER JOURNAL (20%)
Name : Neo Kai Ni ________________________
Admin Number: 153356C___________________
Class : MK1501____________________________
Service Encounter Journal
Allocation of Marks
Description of Encounter
Application of 5 concepts
Rating and Reasons / Recommendations
Discussion of CRM Effort:
a) 4 Principles of CRM
b)Implementation of CRM System
Quality of Writing
Customer Service Encounter (Bad Service)
1. Description of your experiences
My bad service encounter was with Uber, an international technology app. The encounter happened on 21st August 2017, when I book an UberPOOL back home. UberPOOL is a carpooling service that allows drivers to fetch and drop off multiple riders when they are traveling in the same direction. I booked the ride back home through the APP which cost $6.60 and with $5 promotion code, I pay a fixed price of $1.60.
Less than a street away from my home, the driver receives another UberPOOL request. Rather than alighting me first, he drove in the opposite direction to fetch the passenger that was located a few kilometres away. When he finally drops me off, I was told to pay $10.70 instead of $1.60. I found it weird but he said that it because of the shared ride. There was another passenger on the ride and I was exhausted at the point of time, so I passed him the cash without clarifying.
I still find something amiss and went to check the receipt through my email. The receipt was calculated at “$1.60 + $9.10(Others)”, with the “others” being an additional charge by the driver. I booked the UberPOOL because the cost of the ride was $1.60 and felt cheated by the driver. This pushes me to clarify with Uber immediately. I went to check for their contact number on their website, however, they do not have a Customer Service hotline. In the end, I went to message them through Facebook since they are 24-hour responsive. They replied me 3 hours later instead and compensated me through Uber credits rather than transferring to my bank account. I did not want the Uber credits because I felt forced to use Uber again as I cannot draw out the money. Despite raising up the displease of the compensation method, they did not reply my Facebook message.
2. 5 Reasons why is it a Bad service
The Uber drive was not honest with the pricing and did not receive enough training to know the proper charging procedure.
Service Concept: Know your product.
According to Desk1, “Know your product” works when “the more employees know about the product, they better they will service”. Likewise, there will be a higher chance of delivering the service smoothly. When the touch points like drivers do know the product well enough, the customer will likely to not use the service again and switch to the competitor. Knowing your product will increase the chance of satisfying a customer’s needs. When customer feels protect when making a purchase with the company, trust will be built. Uber drivers must be knowledgeable about all aspect of the product offered as it increases the chance of delivering good customer service and prevent cheating customers.
Instead of fetching me to my destination a street away, UberPOOL prompted the driver to fetch a customer that was a few kilometres away. This is a bad service as it possesses inconvenience and increases my waiting time.
Service Concept: Don’t be a robot. No one likes talking to a robot. According to Genesys2, the most important aspect of customer support is “better human service”. By adding a personal and friendly touch throughout the service, the company will form a positive personality.
In addition, Kissmetrics3 mentioned that 98% of respondents said that customer experience was among the top 3 factors in deciding whether to do business with a company. The company should have a well-thought system that primarily focuses on customer needs and experience, which helps the customer to feel prioritised over sales.
Customers dislike experiences that brings inconvenience to them instead of reducing their inconvenience. will increase the confidence and reliance towards the company when they believe that there is a well-thought system.
UberPOOL was supposed to be a traveling tool that helps customers to save their money when sharing the ride. However, they brought more inconvenience to my situation and should revise their system to make it customer-centric.
Uber does not provide a phone service even though it is an international company, which makes me even more frustrated when I could not clarify the matter immediately.
Service Concept: Enhanced Communication. According to Salesforce4, when customers have a single, main point of contact, there’s a good chance that at some point that contact may not be available. Hence, it is important to have an additional form of contacts for feedback and communication between the customer service and customer to continue.
Company must provide multiple contacts for the customer to communicate and feedback. To a customer, having a conversation with the company gives them a chance to clarify and salvage the situation before the customer stop patronise.
With enhanced communication, there will be a need to form a Customer Service team that can train the employees to listen and ask for questions from customers and making sure that all point of contact is consistent.
Deloitte5 stats that 62% of organizations view customer experience provided through contact centres as a competitive differentiator. Uber need to enhance their communication by increasing the form of contacts like having a service provider.
Uber took 3 hours to reply me on Facebook although it was stated on their Facebook page that they are 24 hours responsive and will be able to reply immediately.
Service Concept: Remember every Second Counts. Desk1 states that when the Customer Service Team can reduce the time and assist a customer quickly, customer satisfaction will increase.
Forrester Data6 mention that 66% of customer say that valuing their time is the most important thing a company can do to provide a customer with a good online customer service. The company should be racing against time and assisting the customers as fast as they could. When the company gets back to the customer quickly, it reduces the customer’s uncertainty and feels valued.
Customers hate waiting. If the Customer Service takes too long to respond to their enquiries they will most likely not use the service anymore.
Since Uber is an app that operated 24/7, they should have a Customer Service Team to manage their Facebook message all around the clock. If Uber had replied my message immediately, I will not have uncertainties and be so upset.
Uber did not reply to my displeasure about refunding me through Uber credits instead of transferring to my bank account.
Service Concept: Practice empathy. Customer Service Offers must master the art of empathy to deliver effective customer service. Customer service officer will be able to better understand the customer’s needs and wants when they put themselves in the shoes of the customer. Customers will then successfully able to receive the answers they need.
Customer will be able to feel the empathy from the Customer Service and they will appreciate it. Studies have shown that experience is mostly judged by its most intense point and their end7. Customer Service team must always practice empathy through the whole process of conversing with their customer. If Uber had given me a reply that explains why had to compensate me for Uber Credits, I might have a better impression of them now.
4. Discussion of CRM efforts
(i) From the situation, I feel that Uber did not apply any of the 4 Principles of CRM. I was not managed as an important asset when Uber did not reply my Facebook message immediately and left me hanging when I spoke about my displeasure with the method of compensation. Uber does not have the principle that not all customers are equally desirable and treats all customer equally. Unlike Grab, Uber does not have a point system that differentiates each customer’s profitability and whether they are frequent users or nonfrequent users. Uber needs to be aware that customers vary in their needs, preferences and buying behaviour. Likewise, they require different methods of compensation for different customers. Uber also does not understand their customer’s needs and wants, they tend to delay the customer service process and did not seek customer’s feedback. Uber does not tailor their offerings to the customers, unlike grab which gives different types of promotion codes to different type of users.
(ii) Will CRM system benefit the company?
Uber will still benefit from implementing a CRM system even though the involved product is not expensive. There is a perceived risk of among customers as Uber is not a cab company where proper registration of cab drivers are required and customers feel a sense of uncertainty when they take Uber rides. CRM System also involves a learning relationship when they provide continuous feedback from customers. Hence, customer will rely on the relationship with Uber that is built through
trust to reduce the perceived risks in their decision-making.
Implementing a CRM System will also provide customer knowledge so as to retain existing profitable customers and new profitable customers for Uber. Uber will also be able to recognise the individuality of the customer and offer to customise promotion. CRM System can also enhance the productivity across a range of key marketing functions.
5. Recommendations/ Steps to Closer Service Gap
I will recommend Uber to first set up a Customer Service hotline in Singapore as there may be urgent situations when communicating directly through the phone is the best method for their customers. Secondly, as a company that operated 24/7, there should be Customer Service Officers all around the clock handling the social media accounts to attend to customer’s needs. Thirdly, Uber should gather their drivers for monthly training to refresh on their product knowledge emphasize the consequences of cheating a customer and this will lessen the chance of dishonest acts. Fourthly, Uber should improve their UberPOOL system to make it more customer-centric to decrease the inconvenience to the customers. Finally, Uber should send their currently Customer Service Officer for training to improve their service quality and empathy.
6. Reference List
1 “Home.” Salesforce Desk.Com, www.desk.com/success-center/customer-service-principles.
2 “Poor Customer Service Costs Companies $83 Billion Annually.” 02/18/2010, www.mediapost.com/publications/article/122502/.
3 “Kissmetrics Blog.” Happy Campers – Customer Satisfaction & What it Means for Your Business – An Infographic, blog.kissmetrics.com/happy-campers/.
4 “The 6 Biggest Benefits of CRM.” Salesforce.com, www.salesforce.com/hub/crm/benefits-of-crm/.
5 “2013 Global contact center survey | Deloitte US | Service Delivery Transformation.” Deloitte United States, 1 June 2017, www2.deloitte.com/us/en/pages/operations/articles/2013-global-contact-center-survey.html.
6 “Consumers Drive Channel Preference To Achieve Effortless Customer Service.” Forrester, 10 July 2017, go.forrester.com/blogs/12-06-20-consumers_drive_channel_preference_to_achieve_effortless_customer_service/.
7 “Peak-End Rule.” Coglode, coglode.com/gem/peak-end-rule