What is customer care, who are an organisation's internal and external customers, and how do good customer-care standards benefit a business?
The meaning of customer care, the difference between internal and external customers, the features of good customer service (a customer-care policy, service standards, handling complaints), and the benefits of good customer care and the consequences of poor customer care for an organisation.
A focused answer to the SQA National 5 Administration and IT content on customer care, covering the difference between internal and external customers, customer-care policies and service standards, handling complaints, and the benefits of good care and the costs of poor care to an organisation.
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What this dot point is asking
The SQA wants you to explain what customer care means, to tell apart internal and external customers, to describe the features of good service (a customer-care policy and service standards), and to weigh the benefits of good care against the consequences of poor care. Benefit-and-consequence questions are very common here, so prepare both sides.
What customer care means
Customer care is the way an organisation treats its customers before, during and after a sale. It covers being polite and helpful, giving accurate information, dealing with problems quickly, and making the whole experience pleasant so customers are satisfied and loyal.
Remembering that staff have internal customers helps you see that customer care is not only about the public; departments must also serve each other well for the organisation to run smoothly.
Customer-care policies and service standards
Many organisations set out their commitment to customers in a customer-care policy and measure it with service standards (sometimes called a customer charter).
Setting standards lets the organisation check whether it is keeping its promises and gives customers something to expect.
Benefits and consequences
This is the heart of the topic. Good and poor customer care both feed straight into sales, reputation and cost.
Try this
Q1. Distinguish between an internal and an external customer. [2 marks]
- Cue. External customers are outside the business and buy its goods or services; internal customers are colleagues or departments who rely on each other's work.
Q2. Describe two service standards an organisation might set. [2 marks]
- Cue. Any two measurable targets, such as answering the phone within three rings or replying to emails within one working day.
Q3. Explain one benefit to an organisation of good customer care. [2 marks]
- Cue. Satisfied customers return and recommend the firm, raising sales and building a reputation that attracts new customers.
Exam-style practice questions
Practice questions written in the style of SQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
SQA-style Describe4 marksDescribe the benefits to an organisation of providing good customer care.Show worked answer →
Award 1 mark for each benefit described, up to 4. Satisfied customers come back and make repeat purchases, raising sales and profit (1). Happy customers recommend the organisation to others, giving free word-of-mouth advertising (1). A good reputation attracts new customers and helps the organisation compete (1). Fewer complaints means staff spend less time and money putting problems right (1). A positive image can let the organisation charge a higher price or win loyal custom (1). Staff morale improves when customers are pleasant to deal with (1). Markers reward a described benefit, not a one-word list.
SQA-style Explain4 marksExplain the consequences for an organisation of poor customer care.Show worked answer →
Award marks for explained consequences, up to 4. Dissatisfied customers stop buying and take their custom to a competitor, so sales and profit fall (1). Unhappy customers tell others or post negative reviews online, which damages the organisation's reputation (1). The organisation may have to spend time and money handling complaints, refunds and returns (1). A poor reputation makes it harder to attract new customers and to compete (1), and staff morale can suffer when they constantly deal with angry customers (1). Markers reward a clear cause and consequence, not just naming a problem.
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Sources & how we know this
- National 5 Administration and IT Course Specification — SQA (2024)
- National 5 Administration and IT - Course overview — SQA (2024)