Why is customer service important?
research shows that it costs three to five times more to replace than to keep a customer
also; �Customer service differentiation is a source of competitive advantage.
logistics POV of customer service
Customer Service is the measure of how well an organization's logistics system is performing in providing time and place utility for a product or service.
general view on customer service
Customer Service is the process of providing significant value-added benefits, in terms of efficiency and effectiveness to the customer in a cost effective way.
Customer service and customer satisfaction; don't confuse the two
Customer Satisfaction represents the
customer's overall assessment
of all the elements in the marketing mix: Product, price, promotion and place.
and so;
customer satisfaction
is a broad concept that
encompasses customer service
.
What are the objectives of customer service ?
�Gaining an edge over competitors
�Maintaining customer loyalty
�Increasing market share
�Maintaining levels of customer satisfaction
�Improving profitability
�Seek opportunities for growth
the customer service elements
1 .pre-transaction elements
2. transaction elements
3.post-transaction elements
1 .pre-transaction elements
related to the organization's
policies
regarding customer service.
�They are not all directly related to logistics but go a long way to influence logistics objectives.
2. Transaction Elements
immediately apparent hence, receives the most attention. examples;
�Product Availability/Stock-out Level
�Order Information Availability
�System Accuracy
�Order convenience
�Elements of Order Cycle/Consistency in order cycle
�Expedite Shipments
�Transship
what is an order cycle time ?
This is the total time from customer initiation of the order through receipt of the product or service by the customer
what are the elements of Order cycle time?
-Placing the order
-Order entry(if separate from placement)
-Order processing
-Order Picking and Packing for shipment,
-Transit Time and
Actual Delivery Process(to customer
post transaction elements
these elements of customer service
support
the product or service after the customer has received it. It is the most neglected of the three elements
how is customer service established?
1.Competitive Benchmarking
2.Determining customer service levels based on customer reactions to stock-outs at the retail level
3.ABC(Pareto Analysis) of Customer service
why do some customer service strategies fail?
�Failing to target specific market segments based on the service they require OR failure to offer differential levels of customer service.
�Creating unrealistic customer service expectations by promising faster delivery of orders
�Ignoring perceived indus
elements of customer service plans
1. Customer Needs, Wants and Expectations
2. Customer Service Goals and Objectives
3. Customer Service Policies
4. Employee Training Policies
5. Employee Training Policies
some ways you can learn about your customers
�Evaluating sales and inventory data for returns and special orders
�Evaluating wait times for activities, check-out at register and phone calls
�Considering the service provided by competitors