CUSTOMER SERVICE MANAGEMENT S4 MBA ROBIN CK2014-16

The Customer Service Management

• Customer service management is the supply chain management process that represents the firm's face to the customer.

• Customer service is generally presumed to be a means by which companies attempt to differentiate their product, keep customers loyal, increase sales, and improve profits.

CUSTOMER SERVICE

IT IS AN INTEGRAL

PART OF THE

MARKETING MIX OF:

PRICE

PRODUCT PHYSICAL DISTRIBUTION

PROMOTION

THE IMPORTANCE OF CUSTOMER SERVICES

Distribution, when it provides the proper levels of service to meet customer needs, can lead directly to increased sales, increased market share, and ultimately to increased profit contribution and growth.

Service differences have been shown to account for 5 to 6% variation in supplier sales

Service affects customer patronage

Service plays a critical role in maintaining the customer base:

On the average it is approximately 6 times more expensive to develop a new customer than it is to keep a current one

ELEMENTS OF CUSTOMER SERVICE

Pret

rans

acti

o n• Written statement of policy

• Statement in hands of customer

• Organizational structure

• System flexibility

• Technical services

Tran

sact

ion • Stockout

level• Ability to back

order• Elements of

order cycle• Time• Transship• System

accuracy• Order

conveniences• Product

substitution

Post

tr

ansa

ctio

n• Installation, warranty alterations, repairs, parts

• Product tracking

• Customer claims, complaints

• Product packaging

• Temporary replacement of product during repairs

Most Important Customer Service Elements

By merging dedicated customer service with state-of-the-art technology, On Time creates the most courteous, professional,

experienced and reliable couriers available. On Time's customer service specialists not only help clients determine what method of

delivery best fits their situation, they also listen to clients in order to learn ways to improve service

ON-TIME DELIVERY

ORDER FILL RATE

Order fill rate, also known as demand satisfaction rate is a Percentage of

consumption orders satisfied from stock

available at a moment.

It is a measure of an inventory ability to meet demand. One needs to keep this order rate as

high as possible to avoid delay in production of

final product.

ACCURATE DOCUMENTATION

BE CLEAR: What EXACTLY does the cus tomer want? Why is he

call ing? Is he com plain ing about some thing? Is he ask ing a ques tion? Does he want to be guided

on a step

BE CONCISE: . Note-taking while lis ten ing and speak ing to some

one on the phone may mean writ ing in phrases. That is OK as long as the impor tant key

words are iden ti fied.

BE COMPLETE: In this case, it is always good prac tice to be one step ahead and offer infor ma tion that may be optional, but

might be use ful to a cus tomer in the future.

ORDER CYCLE TIME

Order cycle time is the Customer perception of the elapsed time from when the order is placed until the shipment is received.

The cycle time measures include average time and time variances associated with order communications, order processing, order consolidation, back order delay, and delivery time. Example:

This measure may be defined by specifying that a percentage of orders be shipped or received within a ten-day cycle time

 Listening to customer complaints and analysing them effectively may give us insight into the weakness in our logistic processes

Time between placing and receiving an order.

Includes:

Order transmittal (consider role of e-commerce).

Order processing (document prep., credit check, etc.).

Order assembly (may need to produce if out-of-stock).

Delivery.

The Components Of Customer Service

Steps to Follows in Determining the Service Standards

Step 1 •Understanding the customer’s business

Step 2 •Understanding who represents the customer

Step 3 •Asking the representatives to express their requirements

Step 4 •Analyse current capabilities

Step 5 •Analyse competitors ’ capabilities

Step 6 •Identify gaps

Step 7 •Identify option to gain strategic advantage

Step 8 •Interpreting what the customer wants and is willing to pay for and analyse trade-offs

http://www.google.com.ec/url?url=http://www.sciencedirect.com/science/article/pii/S1877042813055171&rct=j&frm=1&q=&esrc=s&sa=U&ved=0CCAQFjACahUKEwjS5eO7l8XHAhWL1x4KHTjhDWA&usg=AFQjCNEdrmfr2EltxPt5Ze6W6p5Slk9k6g

REFERENCE