What is customer service

What is customer service?
Customers provide the bread and butter of a business and no enterprise can afford to treat them indifferently.
What the customer really derives is a service experience.
If this is less than satisfactory , it causes dissatisfaction. If the service exceeds expectations, the customer would be delighted.
The goal of every enterprise should thus be to delight its customers.


Quality of service
It is necessary for companies and their personnel, which includes their agents , to render high quality service and delight the customer.


High quality service and attributes

A well-known model on service quality  [named "SERVQUAL'] would give us some insights.
It highlights five major indicators of service quality:

a) Reliability : the ability to perform the promised service dependably and accurately .
 Most customers regard reliability as being the most important of the five dimensions of service quality.
It is the foundation on which trust is built.
b) Responsiveness: refers to the willingness and ability of service personnel to help customers and provide prompt response to the customers needs.
It may be measured by indicators like speed , accuracy and attitude while giving the service.
c) Assurance : refers to the knowledge , competence and courtesy of service providers and their ability to convey trust and confidence.
It is given by the customers evaluation of how well the service employee has understood needs and is capable of meeting them.
d) Empathy : is described as the human touch. It is reflected in the caring attitude and individualized attention provided to customers.
e) Tangibles : represent the physical environmental factors that the customers can see, hear and touch .
For instance the location , the layout and cleanliness and the sense of order and professionalism that one gets when visiting an insurance company's office can make a great impression on the customer .
The physical ambiance becomes especially important because it creates first and lasting impression , before and after the actual service is experienced.


Definition
Service means service of any description which is made available to potential users and includes the provision of facilities in connection with banking ,financing, insurance , transport , processing , supply of electrical or other energy,
board or lodging or both housing construction , entertainment , amusement or the purveying of news or other information .
But it does not include the rendering of any service free of charge or under a contract of personal service.

WHAT IS A SINKING FUND

WHAT IS A SINKING FUND?
A sinking fund is a part of a bond indenture or preferred stock charter that requires the issuer to regularly set money aside in a separate custodial account for the exclusive purpose of redeeming the bonds or shares.

let's assume company ABC issues $10 million of bonds that mature in 10 years.
If the bonds have a sinking fund, company ABC might be required to retire, say, $1 million of the bonds each year for 10 years.
To do so, company ABC must deposit $1 million each year into a sinking fund, which is separate from its operating funds and is used exclusively to retire this debt.
 This strategy ensures that company ABC will pay off the $10 million in 10 years

Establishing a Sinking Fund
When creating a sinking fund, the issuer sets up a custodial account and makes systematic payments into it. Payments might not begin until several years have passed. Amounts are typically fixed, although variable amounts may be allowed based on earnings levels or other criteria set by the fund's provisions. Unless preferred stock is used with sinking funds, failure to make scheduled principal and interest payments results in defaulting on the loan.

Advantages and Disadvantages of a Sinking Fund
A sinking fund improves a corporation's creditworthiness, letting the business pay investors a lower interest rate. Because of the interest savings, the corporation has more net income and cash flow for funding operations. Also, businesses may deduct interest payments given to lenders from their taxes, helping increase cash flow as well. Corporations may use the savings for covering sinking fund payments or other obligations. In addition, investors appreciate the added protection a sinking fund provides, making investors more likely to lend a company money. A business that is controlling its money is less likely to default on outstanding debt.

However, if interest rates decrease and bond prices increase, bonds may be called and investors may lose some of their interest payments, resulting in less long-term income. Also, investors may have to put their funds elsewhere at a lower interest rate, also missing out on potential long-term income.