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Doing a SWOT analysis can be very straightforward. Firstly, the organization needs to identify what data they need and who is responsible for collecting it. The data should then be gathered and recorded in a diagram so that it will be easy to discuss the information. The next step is to determine what the most important points are and what planning choices the organization has to choose. After that, the team should create a report on their findings and, finally, make sure that the report is available to everyone concerned in the process.

Source: Factsheet from the Chartered Institute of Personnel and Development Website

Case study: Breaking glass

1.One way of quickly assessing the health of a company is to perform a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.

Strengths and weaknesses are internal issues such as product quality and working relations, while opportunities and threats are external issues, such as new markets and foreign competition.

Read the information about the Macbeth Glassware company, then decide if these statements are true or false.

1.The company has an established reputation for producing quality goods.

2.It finds it hard to compete with overseas competitors.

3.Macbeth’s traditional management is popular with its workforce.

4.There is solidarity between different members of the workforce.

5.There is a lot of unnecessary waste.

6.MacAnimals made the company appear to move down market.

7.It has recently lost a key customer.

8.The firm has been unable to identify any new markets.

Macbeth Glassware

Macbeth Glassware, founded in 1837, has a long history of producing beautiful glass objects and ornaments. They have always been popular wedding presents. Glass-blowing and glass-cutting, which are performed by hand, are highly-skilled jobs and Macbeth employs some of the best craftspeople in the world (average age 53). The factory produces over 8,000 glass objects per year, of which 1,000 are responsible for 80% of overall sales. There is a lot of waste and breakage. Each item is inspected by a supervisor who checks it for flaws and then issues a certificate of authenticity. Up to 20% of finished items are sold as seconds (with only small defects), and the remaining 5% are melted down and recycled.

The company employs 600 people. 200 produce the goods, and the rest are clerical staff, working in the stock room, or are managers. Most craftspeople are paid on a piece-work basis (for how much they produce), and feel that they have

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3.If I don’t like the people in a company, I won’t buy their goods or services, however good they are.

4.I hate it when a salesperson can’t take a decision and has to ask a superior.

Read the article about Hay Group. Hay Group is a global human resources consulting firm operating in 43 countries. Answer the questions.

From satisfaction to loyalty

How do you take your customers from satisfaction to loyalty? Those were the questions Dr. Jodi Simco and Dr. Mark Royal of Hay Group, a human resources consulting firm, answered at recent Customer Service Conference. Simco and

Royal talked about the link they’ve found between business culture, employee loyalty and revenue growth.

‘First it’s important to ask ourselves what our definition of customer loyalty is’, Simco said. ‘And based on our research, we’ve found that it’s when our customers have a strong bond to you and come back to you time and time again. They view you as a provider of choice. So they are not just looking for the lowest-cost vendor. They are going to come back to your company and not only use your current products and services, but maybe start using some new ones and recommending them to others. We have to exceed customers’ expectations’.

Simco identified two factors that decide whether satisfied customers will become loyal ones: the outcome that customers experience and the process by which they receive it. ‘We’ve all bought cars, and the car might be the most wonderful car, so the outcome was positive,’ Simco said. ‘But we might decide not to go back to the car dealership because they were annoying to work with. In this case the process was negative.’ ‘People, in the form of employees, are part of this process’, Simco explained. ‘People are your key competitive advantage. It’s your people who developed those relationships with your customers, and you really need to focus on them.’

Furthermore, when it comes to convincing people in your organization of the impact that customer loyalty can have on your bottom line, the importance of building loyalty is evident. None of us is surprised that loyal customers are going to repurchase two to four times more in comparison with the just satisfied customers. And they are going to enthusiastically recommend your company to others. So they can serve as your best marketer. Loyal customers are also willing to pay more for your services.

Hay Group has identified a few primary factors about a company that can make the difference between customer satisfaction and customer loyalty. ‘The top factor is value: Is this company’s product or service having a positive impact on my business? Do I have a strong return on investment? Ease of doing business is a big thing too,’ Simco continued. ‘Are you easy to do business with, or are you problematic? Finally your people are important, in terms whether they show responsiveness, integrity, trust and professionalism.’

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‘In today’s marketplace, where most organizations are facing global competition and a rapid flow of information, it’s hard to be different from your rivals because best practices spread across an industry very rapidly,’ Royal said. ‘But it’s much harder for your competitors to duplicate a successful organization that consists of a lot of highly motivated, highly engaged people who focus on the customer, and this provides real opportunities for competitive advantage.’

There are three key ingredients for employees to deliver excellent customer service. First, there needs to be a strong focus on teamwork. ‘We find that in organizations where employees perceive strong levels of teamwork, there tends to be a much higher level of customer satisfaction’ Royal said. ‘The second ingredient is training. If we want people to provide high levels of customer satisfaction, we have to make sure they have the skills to deliver them. And the third ingredient is empowerment, which means that organizations need to empower employees to make decisions and take risks in carrying out their jobs.’

Answer the following questions.

1.What produces customer loyalty according to Simco? What is customer loyalty?

2.What is the key factor in making a company better than its rivals?

3.What is the main benefit of having the loyal customers?

4.What is the main factor which changes customer satisfaction to customer loyalty?

5.Why does Royal believe it is difficult for companies to be different from their competitors?

6.Taking responsibilities for his/her own actions is an essential characteristic of a good employee. Why?

Language focus

1.Look through the article and find words and word partnerships corresponding to the words and word partnerships given below.

3.Read the article about customer care and find out why you should welcome complaints from customers.

Whenever a customer hands you a complaint, he’s also offering you an opportunity to create a stronger and more profitable relationship with him. That’s because complaints that are handled properly can be converted into increased loyalty, extra business and recommendations. Although several of my customers have had complaints, initially my organization wasn’t ready to hear the feedback. But over the years, listening to customers had helped me to shape our services so they are easier, better and faster. Here’s how to encourage them to communicate their comments, feedback and complaints directly to you.

Firstly, at the point of purchase, provide comment forms and an email link or phone number to you personally.

Secondly, answer each and every complaint or suggestion. Also, put your personal signature on each response.

Finally, create a customer-user group and pay attention to what they tell you. The golden rule is this: when customers give you valuable feedback, make sure they are rewarded in some special way. You should send them a handwritten thank-you note, a free gift or a unique discount. Be sure to tell them that their input is valuable.

4.Discuss the following in pairs.

1.As a customer, have you ever complained?

2.What advice would you give about the best ways for customers to complain in order to get what they want? For example:

-Is it better to write a letter or complain in person?

-Should you insist on seeing the manager?

-Should you show you are angry or should you keep calm?

-When should you use a lawyer?

-What are the best ways to deal with customers’ complaints?

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5. Training in customer communication skills

You have found four courses on the Internet. Read the statement below and decide which course (A-C) each statement (1-8) refers to.

1.Organizations are changing the way they do business.

2.This course suggests that having a good reputation is the best way for a company to attract customers.

3.You will study writing skills.

4.You will become surer of your abilities in the job.

5.You will learn how gestures, facial expressions and body language are understood by clients.

6.You will learn how to deal with difficult customers.

7.You will learn how to give a better service than the customer imagined.

8.You have to understand how your customers think in order to give them what they need.

A. Communicating with your customers

You will learn how to build rapport with your customers and how nonverbal communication is interpreted by customers. In addition, you will be trained in telephone skills, including how to project professionalism and how to provide quality customer service over the telephone. Finally you will learn how email can be used for effective communication with your customers.

B. A first-class service

Providing a first-class customer service and creating the right impression first time is a must for front-line staff. To be successful at customer care requires an understanding of customer expectations and the skills to exceed that expectation. This practical and interactive course provides the personal and professional skills for staff that are often the first point of contact for customers. Throughout the course delegates will have the opportunity to practice customer-handling skills with role-play and in discussion groups, enabling a confident return to the workplace.

C. Customer care

Word of mouth is the cheapest and most effective way of marketing your business and extending your customer base. Treat your customers badly, and you could be paying a heavy price for what are essentially simple people skills. This course is designed for anyone who wants to know how to make a positive impression to retain customers, eliminate customer dissatisfaction and learn how to handle awkward customer appropriately.

To address your customers’ needs you must be able to think like them, respond to whatever they throw at you and still show you are pleased to be able to help them.