Challenges Faced By The Service Sector

2154 Words9 Pages
Since the global economy embraced customer service, issues regarding levels of customer service have become more prominent in service organisations. Even now there are organisational managers with no training or knowledge of how organisations in the service sector require a high level of customer service. This is ignorance of the fact good customer service can create a competitive advantage; increase profit; efficiency; and increase staff and customer retention and satisfaction. Based on comprehensive reading and research, this essay examines examples of three service organisations and shows how many of the difficulties faced by the service sector are caused by a lack of awareness of, and training in the importance of excellent customer…show more content…
Kandampully (2012) explains that internal customers are staff and members of their supply chains, whereas external customers are the end consumers. Effective service management means modern service organisations are able to enhance the service experience and establish meaningful relationships with both internal and external customers, hence gaining their loyalty and achieving business success. Sarah Cook (2008) suggests that everyone throughout the organisation has a customer. She said, the quality of service supplied to people within the organisation (the internal customers) often determines how well the external customer is served. Therefore the external customer’s satisfaction depends on that of the internal customer. Herb Kelleher, the former CEO of Southwest Airlines (a Service Organisation) appeared in national newspaper adverts under the caption “Employees first. Customers second. Shareholders third.” In an interview with BusinessWeek, Kelleher said, “if the employees are treated well, then they will treat the customers well. And if the customers are treated well they will come back and the shareholders will be happy”. Southwest Airlines is an example of the importance of being internally customer focussed. Herb Kelleher created a culture that empowered employees to learn, grow and be creative. They focus on providing for their employees needs which enhances their motivation. Kelleher decided working for Southwest Airlines should be fun (Goddard & Brown,
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