XYZ CORP

Customer Support Division

How do customers react ?

86% quit doing business after bad experience
A dissatisfied customer tells 15 others but a satisfied customer tells only to 5 Attracting a new customer costs 5 times more than retaining an existing 60% prefer to pay more for better services

Where does the problem lie ?

Lack of technical expertise Comprehensive feedbacks are not provided Non- availability of spares at franchisee end Goal incompatibility

Implications on business
7

6
5 4 3 2 1 0 2008-09 2009-10 2010-11 2011-12 ABCL Ltd XYZ Corp

Customer Perception Index

Sales
7 6 5 4 3 2 1 0 2008-09 2009-10 2010-11 2011-12 Sales of the company Market Demand

The way forward

Set up an in-house support cell

Provide training to hardware engineers in Customer dealing

Will this work ?

Revenue = Rs.40 crores Franchisee expense = Rs.8 crores Total expense = Rs.28 crores Profit = Rs.12 crores

Set up cost New expense Expected revenue Profit Increase in Profit

= Rs.10 crores = Rs.30 crores = Rs.47 crores = Rs.17 crores = Rs.5 crores

Benefits

Better handling of Customer issues Customer preferences can be gauged Development of in-house expertise Self- reliant

Thank You!