“CUSTOMER SERVICE”

Presented By:- Swapnil Pawar (13253) Prasad Bhoir (13255) Pritesh Mhaiskar (13250)

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Flow of presentation

• Introduction

• Nature and Concept

• Features

• Components

• Customer service costs

• Gap analysis

• Measuring service

• Customer service strategic management

• Impediments in the customer service strategy 2

Introduction

• Customer – delivery destination• Internal customers – distribution warehouse is an internal

customer for last production point.• External customer – different organization or individual

which takes the ownership, undertake risks or adds value by making goods available at the place of final goods e.g. C & F agents, wholesalers, distributors, dealers etc.

• Customer service – process between buyer, seller, and a third party.

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Nature and Concept

> Francis G. Tucker Customer service is generally presumed to be the means

by which companies attempt to differentiate their product, keep customer loyal, increase sales and improve profits.

> Jamier L. Scott Customer service is a series of activities designed to

enhance the level of customer satisfaction.

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Elements of customer service

Pre-Transaction Elements

Transaction Elements

Post-Transaction Elements

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Pre-Transaction Elements

• Written statement of policy

• Statement in hands of customer

• Organizational structure

• System flexibility

• Technical services

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Transaction Elements

• Stock out level

• Ability to back-order

• Elements of order cycle

• Time

• System accuracy

• Order conveniences

• Product substitution

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Post-Transaction Elements

• Installation, warranty, alteration, repairs, parts

• Product tracking

• Customer claims, complaints

• Product packaging

• Temporary replacement of product during repairs

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Features

• Strategic process for providing value-added services to the customers

• Ensures trade-offs between cost and service

• Keeps customer happy and loyal

• Brings harmonious relationship between supply chain members

• Starts with order entry and ends with delivery of goods to customers

• Brings about competitive advantage to the market place, increases sales, and improves profits.

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Components

Three types of components :-

1.Strategic components

2. Logistical components

3. Non-logistical components

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Strategic components

1. To give full assurance for the best ROI,ROS, ROME.

2. Firms commitment for long run association

3. Continuous improvement in the quality of customer service

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Logistical components

1. Availability of products

2. to offer fixed replenishment cycle time and their efforts to reduce it

3. Ensures zero defect delivery of products by the firm

4. Point-to-point information

5. Consistency 12

Non-Logistical components

1. Provide financial support to their customers, especially for infrastructural development

2. making a provision for credit facility to motivate the customer

3. Arranging training programs for customers and their technical know-how of the product

4. In warranty supported products, certain discretionary power should be assigned to the customers

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Customer service costs 1. Inventory carrying cost 2. Cost incurred in reduction of replenishment cycle

time. 3. Cost incurred in reverse logistic system in case of

defective goods. 4.Cost involved in continuous appraisal of the system. 5. Fixed costs in development of service consistency.

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Service Effect on Sales

Examples:-• International Minerals & chemicals Co. , after

instituting an extensive customer service program, reported a 20% increase in sales and a 21% increase in earnings.

• A sigma IT solutions, its CRM team was able to reduce the turnaround time for products from 15 days to 7 days. Also its revenues grew by 11 %. 15

Customer Service Complaints

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Gap analysis of customer service• Gap is function of

“ Expectation- Performance”

• Expectations of customers and performance of company

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Gaps• Market information gap: Gap due to company’s

inaccurate knowledge of customer expectations.

Customer’s service

expectations

Company’sUnderstanding of

expectations

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• Service performance gap: due to lack of suitable internal support systems that enable the employees to deliver service standards.

Company’sUnderstandingOf customerexpectations

Company’sService standard

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• Internal communication gap: Inconsistencies between what customers are told the service will be like and the actual service performance of the company.

• Inconsistencies Before sales-after sales

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Gap analysis

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Measuring service• Order Entry

• Minimum, maximum, and average time for order handling. • Percent of orders handled within target times.

• Order Documentation Accuracy• Percent of order documents with errors.

• Transportation• Percent of deliveries on time• Percent of orders delivered by customer request date.• Damage and loss claims as a percentage of freight costs.

• Inventory And Product Availability• Stock out Percentage.• Percentage of orders filled complete.• Order fill rate and weighted average fill rate.

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A model for customer service management..

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Impediments in to an effective customer service strategy

• Misdefining customer service

• Overlooking customer profitability

• Failing of research

• Misusing customer service as a sales incentive

• Misreading the seller’s market24

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