CUSTOMER SERVICES
Andary A Munita Hanafiah
Three C’s
CUSTOMER
VALUE
COST DIFFERENTIAL
COMPANY
COMPETITOR
Definition And Scope
Process For Providing Significant Value-added
Benefits To The Customer In An Efficient Way
Activity
Process
Performance
Efficient
Phil.Of Mngt.
Customer- Focused
Stage Of Process
1. Pre Transaction
2. Transaction
3. Post Transaction
Pre Transaction
Relate To Corporate Policies Or
Program:
• Written Customer Service Policy
• Accessibility
• Organization Structure
• System Flexibility
Indicator Performance
Pre Transaction
• Stock Availability
• Target Delivery
• Response Time To Queries
Transaction
Concern With Customer Service Variable
Directly Involve In Performing The
Services
• Order Cycle Time
• Inventory Availability
• Order Fill Rate
• Order Status Information
Indicator Performance
Transaction
• Order Fill Rate
• On Time Delivery
• Back-orders
• Shipment Delay
• Product Substitutions
Post Transaction
Elements That Are Generally
Supportive Of Product While In
Use
• Availability Of Spare Part
• Call-out Time
• Product Tracing/warranty
• Customer Complaints, Claims, Etc.
Indicator Performance
Post Transaction
• First Call Fix Rate
• Customer Complaints
• Returns/claim
• Invoice Error
• Service Part Availability
Quality ?
• Fitness for Use
• Conform To Specification
Dimension of Service Quality
• Tangible
Appearance of physical facilities, equipment, personnel, and
communication material
• Reliability
Ability to perform the promised service dependability and
accurately
• Responsiveness
Willingness to help customers and provide prompt service
Dimension of Service Quality
• Security
Freedom from danger, risk, or doubt
• Access
Approachability and ease of contact
• Communication
Keeping customers informed in language they can
understand and listening to them
• Understanding the Customer
Making the effort to know customers and their needs
Service Standard
1. Order Cycle Time
2. Stock Availability
3. Order Size Constraint
4. Ordering Convinience
5. Frequency Of Delivery
6. Delivery Realibility
7. Documentation Quality
8. Claims Procedure
9. Order Completeness
10. Technical Support
11. Order Status Information
Composite Service Index
Aggregat’s Indicator Of Customer
Service That Can Be Used As A
Management Tool
CSI = Sum Of ( Iw X Pl)
Iw : Importance Weight Of Service Element
Pl : Pereformance Level Of Service Element
Focused On Customer
1.
2.
3.
Customer Needs
Product Become Worth Due To Services Has Added Value To The
Core Product
Product And Services Become Meaningful Only When Its Available
And Positioned From The Customer’s Perspective At The Time
And Place Required
Service Surround
SERVICE
CORE
PRODUCT
SURROUND
Customers’ Service Need
1. Identify The Key Component Of
Customer Service
2. Establish The Relative Importance
Service Components
3. Identify Cluster Of Customer
Setting Customer Service Priorities
Profit Contribution
LOW
HIGH
SEEK COST
REDUCTION
PROVIDE HIGH
AVAILABILITY
H I
GH
VOLUME
L
O
W
REVIEW
JIT DELIVERY
PROFIT CONTRIBUTION
Types Of Service
1. Basic Services
Customer Service Program Upon Which A Firm Builds Its Fundamental
Business Relationship
2. Zero Defect Services
Customer Service Leads To Perfect Order Performance
3. Value Added Services
Unique/specific Activities That Firm Can Jointly Work Out To Increase
Effectiveness And Efficiency
I. Basic Service Capability
Basic Capability To Satisfy The Customers
Availability
Performance
Reliability
A. Availability
Capability to have goods (inventory) when it is
desired by a customer
Operating
Stock
Safety
Stock
Measurement Of Availability
1. Stock Out Frequency
How Many Times Demand for Specific Product Exceeds
Stock Available.
2. Fill Rate
Number of Goods That Could Not Be Fulfill Promptly
3. Orders Shipped Complete
Number of Order That Could Be Fulfill Completely and
Promptly
B. Operational Performance
Capability To Give The Services To The Customers
Measured By:
1.
4.
Speed
2. Consistency
3. Flexibility
Mulfunction/recovery
Speed
Elapsed Time From When An Order Is Placed
Untill Shipment Arrival
Consistency
Ability To Perform Orders At The Expected
Delivery Time Over A Large Number Of
Performance Cycle
Compliance To Delivery Commitment Over
Time
Flexibility
Ability To Handle Extraordinary Customer Service
Request Caused By:
1.
2.
Modification In Basic Service Arrangement
Support Of Unique Sales/ Marketing Program
3.
New Product Introduction
4.
Product Phase Out
5.
Disruption In Supply
6.
Product Recall
7.
Customization
Mulfunction/Recovery
Ability To Prevent Mulfunction Or To
Prevent/ Accommodate Special
Situation
Contingency Plans
C. Reliability
Ability To Comply Planned Inventory
Availability And Operational
Performance
II. Value Added Services
1. Customer focus services
2. Promotion focus services
3. Manufacturing focus services
4. Time focus services
5. Basic services
Competitive Service Strategy
• Cost Leadership
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Seeking Out Low Cost Customer
Standardizing a Custom Service
Reducing the Personal Element in Service Delivery
Reducing Network Cost
Taking Service Operation Off-line
• Differentiation
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Making the Intangible Tangible
Customizing the Standard Product
Reducing Perceived Risk
Giving Attention to Personnel Training
Controlling Quality
• Focus
Challenge For Manager
• Low Labor Intensity
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Capital Decision
Technological Advances
Managing Demand
Scheduling Service Delivery
• High Labor Intensity
– Hiring
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Training
Methods Development and Control
Employee Welfare
Scheduling Workforces
Control of Far-flung Geographical Location
Setup of New Unit
Managing Growth
Challenge For Manager
• Low Interaction/customization
– Marketing
– Service Oriented
– Attention to Physical Surrounding
• High Interaction/customization
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Fighting Cost Increases
Maintaining Quality
Reacting to Consumer Intervention in Process
Managing Advancement of People Delivering Service
Gaining Employee Loyalty