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Premium member Presentation Transcript Customer Service Management: Customer Service ManagementRay Croc of McDonald’s: Ray Croc of McDonald’s Q – quality S – service C – cleanliness V – value 14000 customer satisfaction departments - their restaurantsParadigm Shift: Paradigm Shift Organizations being more customer driven Customer focus Customer value driven Customer driven core competenciesIn other words: In other words The focus has changed from ‘finding customers for products’ to ‘finding products for customers’Being customer driven is different from being market driven: Being customer driven is different from being market drivenMarket growth, market attractiveness, target markets are market drivers: Market growth, market attractiveness, target markets are market drivers ‘appointing’ the customer to evaluate the firm’s value added process - is being customer drivenResearch shows that: 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 shortcomings Every 2 out of 3 cases of customer dissatisfaction stems from customer service dissatisfactionOrganizations are lulled into a false sense of security, because few customers actually complain: Organizations are lulled into a false sense of security, because few customers actually complainThey just go away to competition: 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 futureWhat happens when the customer is satisfied?: 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 customersWhy this concern now?: Why this concern now? 3 basic changes are taking place Rapid technological change Increasing global competition Demanding customersTechnological changes: Technological changes Flattened organizational hierarchies Changed production processes Improved quality and reduced defects Splintered markets into microsegments Mass advertising proving inadequateCompetition: Competition No longer confined to national boundaries Geographical distances neutralised by technology Leveraging local strengthsCustomer: Customer More knowledgeable and aware (savvy) Demands good ‘consumer value’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: 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 fromWhat can be done?: What can be done? How can we do it better?Identify components / attributes that convey ‘value’ – from the customer’s point of view: Identify components / attributes that convey ‘value’ – from the customer’s point of viewThe firm’s internal processes: The firm’s internal processes Innovation must be given free and fair opportunity to be expressed and rewarded.What are the gaps in perception?: What are the gaps in perception? Customer – requirements vs expectations Management – employees vs customersCustomer Service Management is a philosophy: Customer Service Management is a philosophy It is not a destination. It is a journey. The bar keeps getting higher, the moment it is scaledRegardless of Industry, there is a strong positive correlation between : Regardless of Industry, there is a strong positive correlation between Customer satisfaction Customer retention Employee satisfaction ProfitabilityOrganizations rated high in service: 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 competitionMore than 40 years ago, Peter Drucker defined the purpose of business as the creation and retention of satisfied customers: More than 40 years ago, Peter Drucker defined the purpose of business as the creation and retention of satisfied customersAs more and more products get undifferentiated,: As more and more products get undifferentiated, Customer service becomes the vital ‘differentiator’Customer satisfaction leads to : 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.Customer Service is not the Marketing Department or the Service Department responsibility: Customer Service is not the Marketing Department or the Service Department responsibility Customer Service is every employee’s responsibility. It is an incumbent, organizational responsibilitySlide 27: 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 You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Customer Service Management aSGuest114188 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 91 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: September 16, 2011 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Customer Service Management: Customer Service ManagementRay Croc of McDonald’s: Ray Croc of McDonald’s Q – quality S – service C – cleanliness V – value 14000 customer satisfaction departments - their restaurantsParadigm Shift: Paradigm Shift Organizations being more customer driven Customer focus Customer value driven Customer driven core competenciesIn other words: In other words The focus has changed from ‘finding customers for products’ to ‘finding products for customers’Being customer driven is different from being market driven: Being customer driven is different from being market drivenMarket growth, market attractiveness, target markets are market drivers: Market growth, market attractiveness, target markets are market drivers ‘appointing’ the customer to evaluate the firm’s value added process - is being customer drivenResearch shows that: 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 shortcomings Every 2 out of 3 cases of customer dissatisfaction stems from customer service dissatisfactionOrganizations are lulled into a false sense of security, because few customers actually complain: Organizations are lulled into a false sense of security, because few customers actually complainThey just go away to competition: 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 futureWhat happens when the customer is satisfied?: 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 customersWhy this concern now?: Why this concern now? 3 basic changes are taking place Rapid technological change Increasing global competition Demanding customersTechnological changes: Technological changes Flattened organizational hierarchies Changed production processes Improved quality and reduced defects Splintered markets into microsegments Mass advertising proving inadequateCompetition: Competition No longer confined to national boundaries Geographical distances neutralised by technology Leveraging local strengthsCustomer: Customer More knowledgeable and aware (savvy) Demands good ‘consumer value’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: 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 fromWhat can be done?: What can be done? How can we do it better?Identify components / attributes that convey ‘value’ – from the customer’s point of view: Identify components / attributes that convey ‘value’ – from the customer’s point of viewThe firm’s internal processes: The firm’s internal processes Innovation must be given free and fair opportunity to be expressed and rewarded.What are the gaps in perception?: What are the gaps in perception? Customer – requirements vs expectations Management – employees vs customersCustomer Service Management is a philosophy: Customer Service Management is a philosophy It is not a destination. It is a journey. The bar keeps getting higher, the moment it is scaledRegardless of Industry, there is a strong positive correlation between : Regardless of Industry, there is a strong positive correlation between Customer satisfaction Customer retention Employee satisfaction ProfitabilityOrganizations rated high in service: 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 competitionMore than 40 years ago, Peter Drucker defined the purpose of business as the creation and retention of satisfied customers: More than 40 years ago, Peter Drucker defined the purpose of business as the creation and retention of satisfied customersAs more and more products get undifferentiated,: As more and more products get undifferentiated, Customer service becomes the vital ‘differentiator’Customer satisfaction leads to : 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.Customer Service is not the Marketing Department or the Service Department responsibility: Customer Service is not the Marketing Department or the Service Department responsibility Customer Service is every employee’s responsibility. It is an incumbent, organizational responsibilitySlide 27: 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