Customer Service Management

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					Customer Service Management

    Prof. Rushen Chahal

             Prof. Rushen Chahal
    Ray Croc of McDonald’s
 Q – quality
 S – service
 C – cleanliness
 V – value

14000 customer satisfaction departments
- their restaurants
                    Prof. Rushen Chahal
           Paradigm Shift
 Organizations being more customer driven
 Customer focus
 Customer value driven
 Customer driven core competencies

                 Prof. Rushen Chahal
        In other words

The focus has changed from ‘finding
 customers for products’ to ‘finding
      products for customers’

           Prof. Rushen Chahal
 Being customer driven is
different from being market

        Prof. Rushen Chahal
    Market growth, market
attractiveness, target markets
      are market drivers

  ‘appointing’ the customer to evaluate
     the firm’s value added process
       - is being customer driven

                Prof. Rushen Chahal
       Research shows that
 82% of customer dissatisfaction stems from
  product or service shortcomings
 Out of that, 80% ie. 65% of customer
  dissatisfaction are attributed to service
 Every 2 out of 3 cases of customer
  dissatisfaction stems from customer service

                  Prof. Rushen Chahal
Organizations are lulled into a
   false sense of security,
  because few customers
      actually complain

            Prof. Rushen Chahal
They just go away to competition

   On an average, they relate their
    dissatisfaction or bad experience to at least
    10 – 15 people. At least 5% of these people
    would be influenced not to purchase the
    product in future
                     Prof. Rushen Chahal
    What happens when the
     customer is satisfied?
 He will probably talk about it to 5 others.
  Again, 5% of this audience may turn into
  new customers.
 Therefore the risks an organization takes on
  a dissatisfied consumer far outweighs the
  opportunities presented by satisfied

                  Prof. Rushen Chahal
   Why this concern now?

3 basic changes are taking place
 Rapid technological change
 Increasing global competition
 Demanding customers

                Prof. Rushen Chahal
     Technological changes
 Flattened organizational hierarchies
 Changed production processes
 Improved quality and reduced defects
 Splintered markets into microsegments
 Mass advertising proving inadequate

                 Prof. Rushen Chahal
 No longer confined to national boundaries
 Geographical distances neutralised by
 Leveraging local strengths

                  Prof. Rushen Chahal

 More knowledgeable and aware (savvy)
 Demands good ‘consumer value’

                Prof. Rushen Chahal
  A firm must know what a
customer wants today or will
want in the future to remain in
  the consideration set of
 desirable firms to buy from

            Prof. Rushen Chahal
What can be done?

 How can we do it better?

         Prof. Rushen Chahal
      Identify components /
attributes that convey ‘value’ –
 from the customer’s point of

          Prof. Rushen Chahal
The firm’s internal processes

 Innovation must be given free and fair
    opportunity to be expressed and

               Prof. Rushen Chahal
       What are the gaps in

 Customer – requirements vs expectations
 Management – employees vs customers

                 Prof. Rushen Chahal
    Customer Service
Management is a philosophy

     It is not a destination. It is a
   journey. The bar keeps getting
   higher, the moment it is scaled

                Prof. Rushen Chahal
 Regardless of Industry, there
is a strong positive correlation

 Customer satisfaction
 Customer retention
 Employee satisfaction
 Profitability

                 Prof. Rushen Chahal
    Organizations rated high in service

 Enjoyed an average of 7% price premium
 Were 12 times more profitable
 Grew twice as much as the rest of

                 Prof. Rushen Chahal
More than 40 years ago, Peter
Drucker defined the purpose of
 business as the creation and
retention of satisfied customers

           Prof. Rushen Chahal
As more and more products get

 Customer service becomes the vital

               Prof. Rushen Chahal
Customer satisfaction leads to
 Greater product/brand loyalty
 Reduced vulnerability to price wars
 Commanding price premiums
 Expansion of cutomer base
 Surpluses being channelised to reinvestment
  in new product development.

                  Prof. Rushen Chahal
Customer Service is not the
Marketing Department or the
   Service Department
        Customer Service is every
        employee’s responsibility.
   It is an incumbent, organizational

               Prof. Rushen Chahal
Any airline can take you from place to place,
 but it’s what happens to you between take-
  off and landing that makes the difference
        Naresh Goyal,Chairman Jet Airways

                   Prof. Rushen Chahal

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