Lecture note - Day 2

Where should Customer Service be located?

Case Study 1
In an organization, where do you think Customer Service should function?

Plot/draft an organization structure in a manufacturing environment and highlight the position of logistics & distribution and customer service.





















Customer service represents the output of the logistics systems as well as a place component of the organization’s marketing mix. Customer service performance is the measure of how well the logistics systems function in creating time and place utility with a focus on external customers.

The level of customer service provided to customers determines whether the organization will retain its existing customers and how many new customers it will attract. The customer service level that an organization provides has a direct impact on its market share, its logistics cost and its overall profitability.

Customer service is a measure of how well the logistics systems is performing in providing time and place utility for a product or service. Customer satisfaction represents the customer’s overall assessment of all elements of the marketing mix.

Customer service is defined as a process which takes place between the buyer, seller and third party. The process results in a value added to the product or service exchanged. This value added in the exchange process might be short term as in a single transaction or longer term as in a contractual relationship. Thus in a process view: customer service is a process for providing significant value-added benefits of the supply chain in a cost effective way.



Element of Customer Service

Pre-transaction

Relates to the organization’s policies regarding customer service and the perceptions of customers regarding the organization.
For examples:
-Written customer service
-Accessibility
-Organization structure
-System flexibility


Transaction

Elements normally considered with logistics
For examples:
-Order cycle time
-Inventory availability
-Order status information
-Handling of shipments
-Product substitution
-System accuracy


Post-transaction

Supports the product or service after the customer has received it.
For examples:
-Installation, warranty, repairs and service parts
-Product tracking
-Customer complains, claims, returns
-Product replacement
-Call out time
-Availability of spares




Case Study 2

You are the Logistics Manager for a manufacturing product. You were tasked to establish a customer service department in the organization
The tasks:
-Select an appropriate product
-Identify the roles and objectives of the customer service
-How do you identify your customers’ needs?
-How could the customer service helps you in the production of your products?



Customer Service - Background


Operating a successful business doesn't rest solely on the products you sell. Just as important is the relationship you build with your customers to ensure their return.

Many of your customers may utilize your services only once or twice a year. That's why building customer loyalty is important to ensure repeat visits. Every interaction, whether it's by telephone or in person, is an opportunity for you to showcase superior service and differentiate yourself from the competition.

In today's competitive marketplace, customer loyalty is difficult to build. Products and services are becoming similar. To build customer loyalty, your company must remain in the forefront of your customers' minds and provide outstanding customer service to gain market share.


So, what can you do to make them want to return and/or recommend your company? What steps should be taken to ensure they have a memorable experience that will motivate them to increase their number of rentals? The answer is simple: Provide them with "legendary" customer service by building strong relationships.

Just like you, customers want to go to a place where they feel comfortable, where "everybody knows your name." It just won't be enough to take an order and politely say, "thank you." Doing the bare minimum by responding politely will result in the bare minimum - and it certainly won't help you increase your sales or build loyalty.

Customers expect to be treated politely. That's why you have to do more than that. It takes work to build solid relationships with customers. This can be accomplished with a few simple preparations.


Learn the customer's name and company name

Proper body language is key

Utilize your database

All customers are important

Focus only on the customer

Be sincere

Be proactive to determine your customer's needs

Remain engaged in the interaction

Determine if the inside sales opportunity can be turned into something more

The phone is an important sales tool

Consider a strong marketing campaign

Deliver what you say you will deliver

Follow up

Invest in training



Conclusion

Following these comprehensive steps will allow your company to remain top-of-mind with the customer. Customer loyalty does not happen by accident - it is something you always have to work on. Remember that the effort put forth in building legendary customer service will build unwavering customer loyalty, referrals and the potential for increased sales.