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CUSTOMER SERVICE

MANAGEMENT
S4 MBA
ROBIN CK
2014-16

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

PRODUCT

PRICE

PHYSICAL
DISTRIBUTION

IT IS AN
INTEGRAL
PART OF
THE
MARKETIN
G MIX OF:

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

Stockout
level
Ability to back
order
Elements of
order cycle
Time
Transship
System
accuracy
Order
conveniences
Product
substitution

Post
transaction

Written
statement of
policy
Statement in
hands of
customer
Organizational
structure
System
flexibility
Technical
services

Transaction

Pretransaction

ELEMENTS OF CUSTOMER
SERVICE
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

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 customer want? Why is he
calling? Is he complaining about
something? Is he asking a ques
tion? Does he want to be guided
on a step

BE CONCISE: . Note-taking while


listening and speaking to some
one on the phone may mean
writing in phrases. That is OK
as long as the important key
words are identified.

BE COMPLETE: In this case, it is


always good practice to be one
step ahead and offer informa
tion that may be optional, but
might be useful to a customer 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

REFERENCE

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

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