Case Study
1. What should Hans say to the customer?
Firstly, Hans should apologise to the customer for any misunderstanding and then thank them for bringing it to his attention. Explain that the staff member that served them is a trainee and is still learning the business. Assure the customer that the trainee will continue her training, and will focus on the pricing and features of the different bike models.
Hans could then offer the customer a discount or free item or service on his/her next visit, as an incentive to continue doing business with his store. It may be prudent to inform the customer that his business and feedback are highly valued, and end the conversation with an informal invitation to return; i.e. “I look forward to seeing you soon.” Or “On your next visit, perhaps I could show you our latest product/s.”
2. How might Hans help Sarah improve her performance?
Hans should provide further training, focusing on the areas that she is having trouble with; i.e. bike model features and the prices. Hans could provide a manufacturers catalogue for study purposes, something that Sarah could refer back to when required. If there are several staff working together, Sarah could be shadowed by a more senior staff member that could step in and help if it appeared that she was having trouble.
A performance development plan would also be a viable tool for monitoring her performance outcome and highlight any areas that require improvement. In this plan, Hans can highlight areas he believes could use development and also give Sarah the opportunity to voice any concerns she would like to address. Referring to this plan on a regular basis, could identify key areas that Sarah is struggling with, or highlight where she is making progress.
3. What changes might Hans make to ensure that this does not occur again?
Until Sarah has a firm knowledge of the business, its products, services and some recollection of regular customers, it may be in her best interest to work closely with a more senior staff member. Senior staff should encourage Sarah to ask for help when she is unsure of the appropriate response to give customers.
4. What kinds of records might help improve the service offered to repeat customers?
Keeping up to date customer and product records may help to improve the service to repeat customers. Records should include, name of customer, preferred brands, previous purchases made etc. In some instances, if applicable, a copy of a driver’s license or other form of photo id could be attached to the file or record, which would assist putting a face to the name.
It is important to keep clear and concise records to assist in maintaining a high level of customer service. If the business experiences a high turnover of staff, good records can assist in the training of new employees and the maintaining an expected level of customer service.
5. How might Hans collect feedback from the repair customers? Write a research plan for Hans, including the questions he should ask and the methods for collecting it.
Feedback could be collected by email, reply paid mail out or by telephone research. This of course is only feasible if these details have been previously provided and recorded by the repair shop. Observation and interaction with customers visiting the store can provide insight into the current level of customer service and offer an opportunity to gain feedback instantly.
Hans should take note of the positive feedback, for staff encouragement, and focus on the negative comments he receives. Negative feedback should be taken as constructive criticism, pinpointing the areas that require further scrutiny.
To determine the cause of revenue loss and explore ways to turn business around, the following may be a reasonable course of action:
Action

Follow up
Observe
Observe customers and staff interaction
Identify problem areas (staff, products, service, efficiency etc.) Stocktake and Audit
Research which products are selling/not selling
Discount less popular brands to make room for new stock. Record keeping
Take notes regarding products or brands customers prefer.
Make note of any verbal complaints, requests or specific praise provided by customers while in store. Gather Feedback
Surveys
Social Media
In store handout/cards Implement Change
Work with staff to review customer feedback and supervisor observations to implement appropriate changes and adjust policy and procedure where necessary. Monitor Changes and Update Procedure
Review changes regularly to determine whether productivity and revenue has increased or decreased.
Update plans to reflect these changes.

General questions Hans could ask in his surveys or questionnaires may include;
• How was your experience when dealing with the repair shop?
• Did you feel that the service was to your standard?
• Could we stock another brand/product that might suit your needs better?
• Is there a service we do not currently provide that you would utilise if we offered it?
• Did you feel that any enquires you made with us were answered to your expectations?
• What incentives could we offer to make this service more attractive to you?
It may be prudent for Hans to organise any negative responses in to categories of importance. For example;
• Very High Importance – Comment received of rude staff member/s making the customer feel as though their business was not wanted.
• High Importance – Feedback into staff not being able to answer enquires to the satisfaction of the customer.
• Important – Stock low or not stocking particular brand.
• Less Important – Negative comment made in regards to distance of repair store from train station.
By collating the negative feedback into levels of importance, Hans can prioritise issues and deal with each matter in turn. In some cases, Hans may be able to delegate certain tasks to senior sales and service staff. This can assist with ensuring all customer complaints and concerns are addressed within a reasonable time frame.
As some of Hans’ customers may be commuters that travel by train for part of their journey, I believe that social media and/or internet surveys, along with personal email contact, would be the most practical way to gather this information other than face to face, in store interaction. With modern technology, most commuters carry a mobile phone or internet capable tablet. By targeting his customers on their morning commute, Hans may create repeat and possibly new business by ‘planting a seed of thought’.

6. Develop a customer service plan to help Hans meet the needs of repair customers. Make some assumptions about the demographics of the target customer and what they want from a bike repair shop. Include these assumptions in the plan.
While observing customers that frequent the repair shop Hans has been able to determine a demographic that he believes he should target to bring in more clients and revenue. These demographics are;
• Age: People in their 20s and early 30s
• Income: Mostly young professionals with fairly disposable incomes
• Family: Single people; couples with no children
• Gender: Mostly young men
• Knowledge: Done research into products/service and know what they want; prefer more expensive brands, better quality products
Customer Service Plan
The aim of this plan is to increase business to the repair shops.
Action
Lead/Consult with
Outcome
Delivery Date Gather Feedback
Hans
Use social media and internet surveys to determine products/services required to increase business 2-4 weeks
Research Products
Hans/Sarah
Utilise feedback to determine which products to stock
Analyse differences in products to determine cost and pricing 2 weeks maximum after feedback received
Training
Joe/Hans
Ensure all staff are up to speed on new products that will be stocked in store
Appropriately train staff to ensure qualified servicing and repairs 1 week

6 months – registered training course
Implementation
Hans/all staff
Ensure that we provide excellent customer service.
Review plan and gather feedback.
Immediately

6 months
7. What resources might Hans require to deliver the recommendations in the customer service plan? How should he secure these resources?
In order to deliver on the recommendations from the customer service plan, Hans will require the following resources;
• Social media account/s
• Internet access
• Revenue/Capital
• Training plans
By creating a social media account (e.g. Facebook, Twitter, Instagram) Hans can advertise online, give customers a forum to discuss his products and/or services, and receive and respond to feedback. The younger generation of today seem to thrive on social media followers reading and remarking on their comments, good or bad. Using this open forum can broaden Hans customer base and reach more people locally and further away.
Hans will need to secure revenue or capital by either bank loan or attracting investors to his business. He could offer discounts on older and less popular stock for quick sales to make room for new stock and possibly build revenue.
With new products and/or services, staff may be required to complete formal qualifications to provide proper servicing. Training through a Registered Training Organisation (RTO) will need to be organised and staff members scheduled to attend or enrol. On the job training should also be available for new customer service staff, and can be offered in the way of a Traineeship or Apprenticeship where available.