CUSTOMER SERVICES

Andary A Munita Hanafiah

Three C’s

COMPANY

CUSTOMER

COMPETITOR

VALUE

COST DIFFERENTIAL

Definition And Scope

Process For Providing Significant Value-added Benefits To The Customer In An Efficient

Way

Activity Performance Phil.Of Mngt.

Process Efficient 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 Time2. Stock Availability

3. Order Size Constraint4. Ordering Convinience5. Frequency Of Delivery

6. Delivery Realibility7. Documentation Quality

8. Claims Procedure9. Order Completeness

10. Technical Support11. 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 ElementPl : Pereformance Level Of Service Element

Focused On Customer

1. Customer Needs2. Product Become Worth Due To Services Has Added Value To The

Core Product3. Product And Services Become Meaningful Only When Its Available

And Positioned From The Customer’s Perspective At The Time And Place Required

Service Surround

COREPRODUCT

SERVICE

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

SEEK COST PROVIDE HIGHREDUCTION AVAILABILITY

REVIEW JIT DELIVERY

PROFIT CONTRIBUTION

VOLUME

H I GH

L OW

LOW HIGH

Types Of Service

1. Basic ServicesCustomer Service Program Upon Which A Firm Builds Its Fundamental

Business Relationship

2. Zero Defect ServicesCustomer Service Leads To Perfect Order Performance

3. Value Added ServicesUnique/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 Safety Stock 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. Speed2. Consistency

3. Flexibility4. 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. Modification In Basic Service Arrangement

2. Support Of Unique Sales/ Marketing Program3. New Product Introduction

4. Product Phase Out5. Disruption In Supply

6. Product Recall7. 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 services2. Promotion focus services

3. Manufacturing focus services4. Time focus services

5. Basic services

Competitive Service Strategy

• Cost Leadership– 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– 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– Capital Decision – Technological Advances– Managing Demand – Scheduling Service Delivery

• High Labor Intensity– Hiring – 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– Fighting Cost Increases– Maintaining Quality– Reacting to Consumer Intervention in Process– Managing Advancement of People Delivering Service– Gaining Employee Loyalty