Customer Service

“Customer service is the sum total of what an

organisation does to meet customer expectations and
produce customer satisfaction”.

Important points to be considered are:

 Definition of customer service and another is its measurement.
 Customer service and customer service requirements can differ
between industries /companies / market segments a business
might serve.
 Customer service is inextricably linked to the process of
distribution and logistics. Its elements can range from the ease
of ordering to stock availability to delivery reliability
 There is the need to balance the level of service provided with
the cost of that provision
 Components of Customer Services

Pre-Transaction Element i.e. Prior to actual

Transaction
 Written customer service policy;
 Accessibility of order personnel;
 Single order contact point;
 Organizational structure;
 Method of ordering;
 Order size constraints;
 System flexibility;
 Transaction elements.
 Transaction Elements

Transaction elements i.e. directly related to physical

transaction & are concerned with distribution & Logistics
 Order cycle time;
 Order preparation;
 Inventory availability;
 Delivery alternatives;
 Delivery time;
 Delivery reliability;
 Delivery of complete order;
 Condition of goods;
 Order status information.

 
 Post- Transaction Elements

Post- Transaction Elements that occurs after delivery

has taken place.
 Availability of spares;
 Call-out time;
 Invoicing procedures;
 Invoicing accuracy;
 Product tracing/warranty;
 Returns policy;
 Customer complaints and procedures;
 Claims procedures.
 Dimensions of Customer Service

Availability.
 Stockout Frequency
 Fill Rate
 Orders Shipped Complete on Time (OSCOT)
Performance
 Speed
 Consistency,
 Flexibility, and
 Malfunction/recovery.
Consistency
 firm's ability to perform at the expected delivery time over a large number
of performance cycles.
Flexibility
 a firm's ability to handle extraordinary customer service requests.
 3 Aspects of Customer Service

 Basic Customer Services

 Zero-Defect Services
 Value Added Services
 Customer Focused Services ( eg: fulfilment)

 Manufacturing-Focused Services:
( eg: simultaneous delivery of all inbound components)

 Time Focused services ( eg: JIT)

 Promotion-Focused Services:
 Characteristics of Value Added Services

They add value to the core services

They are not basic services
They stand alone in terms of their profitability
They can stimulate increased demand for standard
service(s)
Sometimes, they stand alone operationally
They are add-ons to the basic service(s)
They may provide administrative and/or operational
synergy among or between other services
They are not merely used for diversification purposes