Good Customer Service (AQA GCSE Business)

Case Study

Nadia Aslam is a wealthy entrepreneur. Two years ago, she bought a struggling airline and changed the name to Skyline plc. The airline offers low-price flights from the UK to popular European destinations. There are high levels of competition in this market.

Skyline plc is going to add a new route to the city of Sibiu in Romania. An additional plane will require extra investment of £72 million. Based on the age of the plane being considered for purchase, it is estimated that it has 12 years of service left. The plane will increase Skyline plc’s profit by £108 million over its lifetime.

Skyline plc has a large database of customers. It would like to set up a telesales team to call all past and present customers individually to tell them about the new route. Not all customers have indicated that they would be happy to be contacted by telephone.

Each member of the telesales team will:

• inform customers about the city of Sibiu and then encourage them to book flights

• be provided with some information about Sibiu, but not a formal script to use

• be expected to contact at least 12 customers per hour.

Case Study

Fleet Bikes is a United Kingdom (UK) business which manufactures high quality adult road bikes to sell to retailers. Orders from retailers are expected to be delivered within two weeks. There are lots of competitors for adult bikes. To increase its share of the bike market, the business has decided to develop its own range of children’s bikes. A loan will be required to fund a factory extension. The business is aiming to reduce production costs. 

Production and sales of children’s bikes has started. The company has now created a new department called the Fleet Academy that will start renting children’s bikes within six weeks.

The aim of the rental service is that every child should be able to enjoy riding bikes that always fit them. The rental bikes can be changed when children grow. Parents will be able to view information on the website, which will also contain answers to frequently asked questions (FAQs).

A manager is needed to run the department. The company is offering a salary of £30,000 a year. The manager will need a sales background and, ideally, have some knowledge of how rental businesses operate. Parents interested in the scheme will contact the manager, who will provide advice on the correct size and style of bike for the child. The rental bike will then be manufactured based on this. If there are any problems with the size of the bike the company will guarantee to exchange it within 48 hours.

Case Study

JCC Shoes is a manufacturer and retailer of shoes. The business has a reputation for making shoes that are strong, hard-wearing and comfortable. The business is facing increasing competition from other shops selling school shoes. Competitors’ shoes are regarded as more fashionable. In response to this competition, JCC Shoes has redesigned some of its shoes.

During the last year, there have been some newspaper reports of children being sent home from school for wearing JCC Shoes branded ‘Scope Shoes’. These shoes are sold as part of JCC Shoes’ new redesigned school range. Many schools are reporting that the shoes are too similar to trainers and do not meet their rules on uniform.

Over the last two years JCC Shoes has increased its use of social media to improve interaction with customers. Posts are made daily on new shoes and events, such as price discounts, and enquiries can be answered quickly. The business encourages customers to respond to its posts, add their own comments, and upload pictures and videos.

Number of customer responses on social media posts by JCC Shoes (000’s)

Case Study

Fast fashion has received some bad press recently. Prices of these items are so low that they encourage customers to buy clothes often and throw them away. People are not encouraged by fast fashion businesses to think about how this affects the environment.

Customers are not returning as frequently as Eve would like. STC needs repeat customers so that it can sell a large number of products at low prices. Market research has indicated that some clothing items do not fit well. It also shows that customers are becoming more aware of the impact their repeat purchases have on the environment. Eve is considering two options.

Option 1 – Introduce live chat to the website

A team of two employees would be available from 9 am to 5 pm each day to:

• give advice on a wide range of issues

• give advice on the size and fit of the clothing before customers make the purchase

• explain in more detail the shape and style of the clothing

• recommend items which could be worn with the clothing being discussed

Option 2 – Introduce a recycling scheme

• A pre-paid postage bag would be sent with all repeat purchases. Customers can use this to return old STC clothing free of charge. One supplier has agreed to recycle the material that has been returned in the production of new clothing

• Customers would receive a 10% discount voucher off their next purchase for every two items of old clothing they send in