Professional Documents
Culture Documents
Group 2
Team members
1. Pham Thi Le Na
2. Phan Van Huy
3. Pham Hoa Chi
4. Nguyen Thi Minh Hue
5. Hoang Thi Tuyet Nga
6. Vu Thi Thu Giang
TABLE OF CONTENTS
01 What is customer service?
05 Conclusion
01
What is customer service?
Overview
● The key to effective customer service policies lies in the extent to which the total
logistical activities of a company — from raw material and plant location decisions
through to delivery modes and credit policy — are brought together and viewed as an
interrelated system.
● Brings together all the points of contact with the customer in terms of delivery
frequency and lead-time, back-up inventory, responsiveness to complaints, technical
service and a host of other aspects.
Definition
● customer service must be defined in terms much more broad than a simple concern
with deliveries, which is how many companies seem to perceive it.
● Customer service is perceptual and total. The customer does not distinguish between
"good" and "bad" departments, but sees the company as a whole.
Value of Customer Service
Service — may constitute only 20 percent of the cost of the product, yet they have 80
per cent of the impact on customers.
● Customer perception is how customers feel about your product and brand. It’s an
opinion that they’ve formed through every interaction they’ve had with your
company, both direct and indirect.
→ Understanding how your customers perceive your company can help you improve
your marketing, spot opportunities to improve your service delivery, and grow your
business.
Customer perception
The way customers perceive your business impacts every action they take. Positive
customer perception can increase brand loyalty and generate referrals. It does this in two
ways:
● Value alignment: If customers perceive business as having strong values that align
with their own, they’re far more likely to purchase
1. Customer reviews
● Ninety-three percent of customers read online reviews before purchasing. That
means your online reviews can have a big impact on how prospective customers see
your brand.
2. Marketing
● Your website, advertisements, and social media posts can all play a role in
developing your public image. That’s why it’s important to be consistent across all
company-owned media. Know what you want your customer perception to be, and
then come up with messaging around it.
Some factors that influence customer perception
3. Company values
● As mentioned above, customers want to do business with companies that have
similar values to their own. Having public company values that you adhere to
heavily influences your customers’ perception of your brand.
One Dutch company in the chemical business asks itself the following questions to help
determine service policy for products and markets:
(1) How profitable is the product? What contribution to fixed costs and profits does this
product make and what is its sales turnover?
(2) What is the nature of the product? Is it a "critical" item as far as the customer is
concerned, where stock-outs at the point of supply would result in a loss of sales? Does
the product have characteristics that result in high stock holding costs?
Setting service levels
(3) What is the nature of the market? Does the company operate in a sellers' or a buyers'
market? How frequently purchased is the product? Are there substitutes? What are the
stockholding practices of the purchasers? Which markets and customers are growing and
which are declining?
(4) What is the nature of the competition? How many companies are providing an
alternative source of supply to our customers? What sort of service levels do they offer?
(5) What is the nature of the channel of distribution through which the company sells?
Does the company sell direct to the end customer, or through intermediaries? To what
extent does the company control the channel and the activities of its members, such as
stock levels and order policies?
Setting service levels
● The answers to these questions provide the basic information upon which the
service level decision is made.
● To take an example, the level of service offered is less likely to have an effect on
sales if in fact the company is the sole supplier of the product, and there are no
substitutes. Or again a product with a low level of profitability will not justify a
massive investment in customer service.
● In answering these questions the company finds that the answer to the service level
decision becomes more and more clear. Rather than seeking for an optimum balance
of the costs and benefits of customer service they are zeroing-in on a satisfactory
service policy.
04
Measuring the response to
customer service
Measuring the response to customer service
● Empirical and theoretical bases to describe the nature of the customer service
response function.
● The problem with this model of course is that it assumes "other things being equal”.
● Customer service rules can have a significant impact on a company's bottom line.
● Not only did they increase their earnings situation, but they also improved their
standing in the eyes of their clients.
Thank for your listening