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Introduction to Global Supply Chain ManagementModule Nine:
Customer Service In TheAge of Globalization
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Class Agenda
• Value Propositions, The Customer Experience & Customer Service
• Internal & External Customers• Customer Service design for different
business models• KPI’s to measure Customer Service
performance
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The Company’s “Value Proposition”
• A Value Proposition is a combination of all the things that a company does to entice customers to purchase their products or services
• Elements of a V.P. may include:– Employee knowledge & attitude– Pre-purchase service & support– Product characteristics, features &
quality– Price– Purchase service & convenience
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Value Propositions & The Customer Experience
• Elements of a V.P. may include (cont.):– Sales-related policies & procedures– Delivery method & lead time– Billing accuracy– Post-purchase service & support– Product warranties– Returns policy– “Ease of Doing Business”
• The Value Proposition is what drives and influences the quality of the “Customer Experience”
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The Customer Experience
• The “Customer Experience” represents the overall impression that a client has upon completing a purchase– An on-line purchase of shoes– Going grocery shopping– Buying raw materials from a vendor
• The Customer Experience should be a function of the Value Proposition
• The quality of the Customer Experience (output) depends on its inputs
• Inputs that create outputs are a key characteristics of a process
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The Service Component Of The Customer Experience Process
• Customer Service is composed of all of the client-facing activities a company engages in before, during and after a sale– In-store sales representative– Product engineer at a client’s factory– Product installation team– Technical support via chat– 1-800 telephone representative
• These activities, or, “Touch Points,” must be clearly identified as part of crafting the Value Proposition & Customer Experience
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The Service Component Of The Customer Experience Process
• Each Touch Point must enhance the overall Customer Experience– Generate positive interaction
• Customer service should be a reflection of “The Voice of The Client”– Identify the reasonable expectations a
customer would have given the business model
– Seek to surpass those expectations
• The first step in that process is to identify who the customer really is– Internal & External customers
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Internal Customers &Global Supply Chain Management
• Internal customers are the departments and people in an organization that rely on colleagues to complete their portion of the Value Proposition
• This concept is based on the idea that within a process (and a company), one person’s output becomes another person’s input
• The service provided to internal clients always impacts the service given to external clients
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Internal Customer Relationships &Global Supply Chain Management
• Examples of internal customers include:– Purchasing professionals depend on
the logistics department for timely delivery
– Sales people need the accounting department to run credit checks on new customers quickly
– The factory relies on the MRP group to have raw materials available for production
– Everyone depends on the I.T. department to make sure all of the company’s technology works
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Customer Service Characteristics ForInternal Customers
• Understand how specific outputs impact other departments & activities
• Have a process oriented mind set• Anticipate and act upon issues before
they happen• ALWAYS live up to commitments• Deliver bad news early
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Customer Service Characteristics ForInternal Customers
• Share knowledge & experience• Don’t waste other people’s time
– Be prepared for meetings
• Always follow up• Timely response to emails and phone
calls– No voice mail, answer the phone!
• DO YOUR JOB WELL!!!
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External Customers &Global Supply Chain Management
• External customers are those parties in a supply chain that actually purchase goods and/or services from a company
• The expectations of external clients are driven by the nature of the product and how it is sold
• In a global supply chain environment, products are bought and sold in a variety of ways– “Traditional” B2B sales– B2B on-line sales– “Traditional” retail sales– B2C on-line sales– “Omni-Channel”
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Customer Service Design:Traditional B2B Sales
• Customer Service starts with the first contact by the salesperson– The “Sales Cycle” forms a big part of
customer service – Quotations/bid process through
negotation, close, product delivery, billing & payment
• Service levels from other departments during the Sales Cycle matter– Timely credit approval by accounting– Coordination with logistics for
delivery– Technical support for installations and
post installation service– Post-sale warranty, product
maintenance, upgrades, etc.
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Customer Service Design:B2B On-Line Sales
• Complete and updated on-line catalogue of products
• Clear prices– No hidden charges
• Availability of chat support• 1-800 number as option for questions• Product availability clearly stated• Mulitple delivery options
– Email alerts with delivery updates– On-line delivery tracking
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Customer Service Design:B2B On-Line Sales
• Shipping & Customs procedures for international orders
• Backorder information– Email alerts for backorders
• Easy-to-use check out process– Add/remove items quickly from cart
• Credit limit warnings• “Running tally” for purchase value
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Customer Service Design:B2B On-Line Sales
• Print options for invoices, et al • Goods delivered on time• Complete/correct orders• No damaged or missing ítems• Convenient returns policy
– Invoice credit
• Accurate billing
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Customer Service Design:Traditional Retail Sales
• Product availability• Accurate pricing
– Price tag matches advertised price– Price tag matches the scanned price
on the register
• Knowledgable sales people• Products easy to find• Well organized & laid out store• Minimal “dwell time” for customers• Short check out process• Easy returns process• Omni-Channel options
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Customer Service Design:B2C Sales
• Complete and updated on-line catalogue of products
• Clear pricing– No hidden charges
• Promotional/Sale items prominently displayed
• Availability of chat support• 1-800 number as option for questions• Product availability clearly stated
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Customer Service Design:B2C Sales
• Mulitple delivery options– Third party delivery capability– Email alerts with delivery updates– On-line delivery tracking
• Shipping & Customs procedures for international orders
• Backorder information– Email alerts for backorders
• Easy to use check out process– Quick removal of items from cart– Fast “order review” option
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Customer Service Design:B2C Sales
• Secure credit card payment tool• Gift card payment option• Goods delivered on time• Complete/correct orders• No damaged or missing ítems• Convenient returns policy
– Customer-printed shipping label functionality
– Invoice credit
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Customer Service Design:Omni-Channel
• “Omni-Channel” is a practice whereby clients have multiple options for the purchase, delivery and/or return of goods
• Used for B2B and B2C– Customers buy on-line with goods
delivered to home or business– Customers buy on-line and pick up at
store or warehouse– Customers buy at store and have
goods delivered to home or business– Customer buy on line but return
goods to store
• Customer service has to support all of these options
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Customer Service KPI’s:Quantitative & Qualitative Measures
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Customer Service KPI’s:Quantitative Measures
• Number and percentage of incomplete orders
• Quantity of backorders• Time transpired on filling back orders• Instances of incorrect merchandise• Shipments with damaged goods• Over/under quantities
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Customer Service KPI’s:Quantitative Measures
• Number and percentage of late deliveries
• Number of delays in customer pick-ups (omni-channel)
• Instances of incorrect billing• Occurences of incorrect paperwork• Number of rejected/returned goods
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Customer Service KPI’s:Quantitative Measures
• Number of lost customers• Number of negative on-line reviews• Average length of C.S. calls• Number of calls to resolve one issue• Number of logged complaints
received• Length of resolution process
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Customer Service KPI’s:Qualitative Measures
• Ranking of overall Customer Experience
• Price vs. Value ranking• Opinion on knowledge level of sales
people• Quality of on-line support
– Chat
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Customer Service KPI’s:Qualitative Measures
• Impression of pre-sales support• Ranking of post-sale support• Depth of technical knowledge• Responsiveness & follow-up• Effectiveness of problem resolution
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Customer Service KPI’s:Qualitative Measures
• “Good Manners” Index• Likelihood of returning• Probability of “Liking”• Experience with Omni-Channel
options
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End of Module Nine
Congratulations!!!
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