CRM in Service Sector

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Satisfaction is a person’s feelings of pleasure or

disappointment resulting from comparing a product’s


perceived performance (or outcome) in relation to his or her
expectations.

Customer satisfaction, a business term, is a measure of how


products and services supplied by a company meet or surpass
customer expectation. It is seen as a key performance indicator
within business and is part of the four perspectives of
a Balanced Scorecard.

In a competitive marketplace where businesses compete for


customers, customer satisfaction is seen as a key differentiator
and increasingly has become a key element of business strategy.

There is a substantial body of empirical literature that


establishes the benefits of customer satisfaction for firms.

ROLE OF Customer Satisfaction in Marketing

Customer satisfaction plays a HUGE role in the success (or


failure) of your marketing campaign.  Creating a successful
marketing strategy begins and ends with knowing your target
audience.
MEASURING CUSTOMER SATISFACTION

Organizations are increasingly interested in retaining existing


customers while targeting non-customers; measuring customer
satisfaction provides an indication of how successful the
organization is at providing products and/or services to the
marketplace.

Customer satisfaction is an ambiguous and abstract concept and


the actual manifestation of the state of satisfaction will vary
from person to person and product/service to product/service.
The state of satisfaction depends on a number of both
psychological and physical variables which correlate with
satisfaction behaviors such as return and recommend rate. The
level of satisfaction can also vary depending on other options the
customer may have and other products against which the
customer can compare the organization's products.

Because satisfaction is basically a psychological state, care


should be taken in the effort of quantitative measurement,
although a large quantity of research in this area has recently
been developed. Work done by Berry (Bart Allen) and Brodeur
between 1990 and 1998 defined ten 'Quality Values' which
influence satisfaction behavior, further expanded by Berry in
2002 and known as the ten domains of satisfaction. These ten
domains of satisfaction include: Quality, Value, Timeliness,
Efficiency, Ease of Access, Environment, Inter-departmental
Teamwork, Front line Service Behaviors, Commitment to the
Customer and Innovation. These factors are emphasized for
continuous improvement and organizational change
measurement and are most often utilized to develop the
architecture for satisfaction measurement as an integrated
model. Work done by Parasuraman, Zeithaml and Berry
(Leonard L) between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using
the gap between the customer's expectation of performance and
their perceived experience of performance. This provides the
measurer with a satisfaction "gap" which is objective and
quantitative in nature. Work done by Cronin and Taylor propose
the "confirmation/disconfirmation" theory of combining the
"gap" described by Parasuraman, Zeithaml and Berry as two
different measures (perception and expectation of performance)
into a single measurement of performance according to
expectation. According to Garbrand, customer satisfaction
equals perception of performance divided by expectation of
performance.

The usual measures of customer satisfaction involve


a survey with a set of statements using a Likert Technique or
scale. The customer is asked to evaluate each statement and in
term of their perception and expectation of performance of the
organization being measured.
STEPS TO IMPROVE CUSTOMER SATISFACTION
It's a well known fact that no business can exist without
customers. It’s important to work closely with your
customers to make sure the service you provide for them is
as close to their requirements as you can manage. Because
it's critical that you form a close working relationship with
your client, customer service is of vital importance. What
follows are a selection of tips that will make your clients feel
valued, wanted and loved.

1. Encourage Face-to-Face Dealings


This is the most daunting and downright scary part of interacting
with a customer. If you're not used to this sort of thing it can be
a pretty nerve-wracking experience. Rest assured, though, it
does get easier over time. It's important to meet your customers
face to face at least once or even twice during the course of a
project.
Experience has shown that a client finds it easier to relate to and
work with someone they've actually met in person, rather than a
voice on the phone or someone typing into an email or
messenger program. When you do meet them, be calm,
confident and above all, take time to ask them what they need. If
a potential client spends over half the meeting doing the talking,
you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients


Informed
We all know how annoying it is to wait days for a response to an
email or phone call. It might not always be practical to deal with
all customers' queries within the space of a few hours, but at
least email or call them back and let them know you've received
their message and you'll contact them about it as soon as
possible. Even if you're not able to solve a problem right away,
let the customer know you're working on it.

3. Be Friendly and Approachable


It is said that you can hear a smile through the phone. This is
very true. It's very important to be friendly, courteous and to
make your clients feel like you're their friend and you're there to
help them out. There will be times when you want to beat your
clients over the head repeatedly with a blunt object - it happens
to all of us. It's vital that you keep a clear head, respond to your
clients' wishes as best you can, and at all times remain polite and
courteous.

4. Have a Clearly-Defined Customer Service Policy


A clearly defined customer service policy saves you a lot of time
and effort in the long run. If a customer has a problem, what
should they do? If the first option doesn't work, then what?
Should they contact different people for billing and technical
enquiries? If they're not satisfied with any aspect of your
customer service, who should they tell?
There's nothing more annoying for a client than being passed
from person to person, or not knowing who to turn to. Making
sure they know exactly what to do at each stage of their enquiry
should be of utmost importance.

5. Attention to Detail (also known as 'The Little Niceties')


Little niceties can be time consuming and aren't always cost
effective, but remember to do them. Even if it's as small as
sending a Happy Holidays email to all your customers, it's
something. It shows you care; it shows there are real people on
the other end of that screen or telephone; and most importantly,
it makes the customer feel welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to


Help Them Out
Sometimes this is easier said than done! However, achieving this
supreme level of understanding with your clients will do
wonders for your working relationship.
Take this as an example: you're working on the front-end for
your client's exciting new ecommerce endeavor. You have all
the images, originals and files backed up on your desktop
computer and the site is going really well. During a meeting
with your client he/she happens to mention a hard-copy
brochure their internal marketing people are developing. As if
by magic, a couple of weeks later a CD-ROM arrives on their
doorstep complete with high resolution versions of all the
images you've used on the site. A note accompanies it which
reads:
"Hi, you mentioned a hard-copy brochure you were working on
and I wanted to provide you with large-scale copies of the
graphics I've used on the site. Hopefully you'll be able to make
use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues
and friends how very helpful and considerate his Web designers
are. Meanwhile, in your office, you lay back in your chair
drinking your 7th cup of coffee that morning, safe in the
knowledge this happy customer will send several referrals your
way.

7. Honour Your Promises


It is the most important point. The simple message: when you
promise something, deliver. The most common example here is
project delivery dates.
Clients don't like to be disappointed. Sometimes, something may
not get done, or you might miss a deadline through no fault of
your own. Projects can be late, technology can fail and sub-
contractors don't always deliver on time. In this case a quick
apology and assurance it'll be ready ASAP wouldn't go amiss.
AFTER SALES SERVICE STRATEGY:

In providing service, most companies progress through a series


of stages. Manufacturers usually start out by running their own
parts and service department. They want to stay close to the
equipment and know its problems. They also find it expensive
and time-consuming to train others, and discover that they can
make good money running the parts and service business. As
long as they are the only supplier of the needed parts, they can
charge a higher price.
  In fact, many equipment manufacturers price their equipment
low and compensate by charging high prices for the parts and
services. Manufacturers mostly give maintenance and repair
service to authorized distributors and dealers. These
intermediaries are closer to customers, operate in more locations
and can offer quicker services. Manufacturers still make a profit
on the parts but leave the servicing profit to their intermediaries.
     Even then independent service firms have also emerged.
Over 40% of auto service work is now done outside franchised
automobiles dealerships, by independent garages.
      Independent service organizations handle mainframes
telecommunication equipment, and a variety of other equipment
lines. They offer a lower price or faster service than the
manufacturer or authorized intermediaries.
         Some large customers take over the responsibility of
handling their own maintenance and repair. A company with
several hundred personal computers, printers and related
equipments might find it cheaper to have its own service
personnel on-site. These companies typically press the
manufacturer for a lower price, because they are providing their
own services.
Find ’em
Find ’em
Grab ‘em
Grab ‘em
Show ‘em
Show ‘em
Answer ‘em
Answer ‘em
Sell ‘em
Sell ‘em
Keep ‘em
Keep ‘em

WHAT IS AFTER SALES SERVICE?

It can be defined as the customer support following the


purchase of a product or service. In some cases, after-sales
service can be almost as important as the initial purchase. The
manufacturer, retailer, or service provider determines what is
included in any warranty (or guarantee) package. This will
include the duration of the warranty (traditionally one year
from the date of purchase, but increasingly two or more years)
maintenance and/or replacement policy, items
included/excluded, labor costs, and speed of response. In the
case of a service provider, after-sales service might include
additional training or helpdesk availability. Of equal
importance is the customer's perception of the degree of
willingness with which a supplier deals with a question or
complaint, speed of response, and action taken.
CASE STUDIES
Welcome to the Bosch After Sales Service.

"It has always been an unbearable thought to me that someone could inspect one of my products and find it inferior in
anyway" . - Robert Bosch

Quality is the most important factor for all Bosch products. The Service given to all our customers in After Sales
Service is very important to us. The quality and efficiency of Bosch Authorised Service Centres is our primary aim.

5 Day Promise 

The Bosch Repair Service – a swift and competent service.

What to do if your Power Tool needs to be repaired? The direct and convenient Bosch Repair Service
provides warranty repairs and chargeable repairs to Bosch products. As a service promise to you our
customer we have developed the ‘5 Day Repair Promise’. We aim to complete all warranty repairs
within 5 working days.

By request non warranty repairs, will be estimated with a pro-forma invoice sent direct to you detailing
the complete repair breakdown.
‘Nikon will focus on DSLRs and after-sales service in India’

Hidehiko Tanaka, managing director of Nikon India since 2007, says that the company is expected to increase overall
Nikon’s presence in India to 800 retail outlets in the current financial year at a time when the business environment is
difficult. Nikon, which marked a 50% growth in financial year 2008-09 and achieved over 30% share in the DSLR
cameras segment and 5% share in compact cameras, expects to grow by 20% to 25%. In an interview with Mona
Mehta, he talks about impact of the economic slowdown on Nikon sales. Excerpts:

How has the economic slowdown impacted Nikon’s sales globally, including India?

Globally, in markets such as the US, Europe, Nikon is witnessing a positive demand growth in the last two quarters
despite the economic recession. In India, Nikon India grew at a rate of 50% during the financial year 2008-09.
However, during the financial year 2009-10, the company expects 30% growth, which is a 20% dip in demand growth
over financial year 2008-09, due to the slowdown. Hence, we feel that there is a need to focus on strengthening
Nikon’s DSLR Zone and after sales service centres in India. In order to spearhead our plans, we have recently
launched an exlcusive Nikon professional DSLR camera zone for the consumers at DN Road, Fort in Mumbai.

How do you see penetration of Nikon products in India as a major challenge?

With offices in Mumbai and the recently opened branch in Kolkata and another office to be opened in the southern
region, Nikon is strengthening its distribution network all across India. The company has opened 8 new authorised
service centres in 2008 in addition to five existing in 2007, making it a total of 13, and is looking forward to further
expand the service base so that its customers can enjoy complete service support.

Currently, Nikon India distributes, markets and services the complete range of Nikon imaging products, including its
Nikon D-SLR and its compact camera, the Nikon Coolpix and a range of Nikon lenses apart from service and repair
of industrial products. These include microscopes and technical measuring instruments.

What revenues do you expect India to contribute to Nikon globally?

Currently, India contributes less than 1% to Nikon’s global sales. Currently, the digital camera market is a one million
market in India growing at a rate of 30% per annum.

Since there is demand for Nikon products in India and continuing year-on-year growth amidst the economic
slowdown, India is a important market for us. Currently, we do not have any plans to set up a manufacturing facility
and research and development centre for Nikon in India....
Carmakers improve after-sales services, says JD Power
survey

New Delhi, Oct 19: Seven out of the 11 carmakers in the country have shown an improvement in after-sale service
standards, reports the 2005 JD Power India customer satisfaction index study. Overall industry performance has
risen as automakers are investing in post-delivery customer experience to create greater brand loyalty and generate
positive word of mouth recommendations to drive first-time sales, the survey says.

More than 4,200 owners of 33 different models were polled on authorised service experience at 12-18 months of
ownership. While Maruti Udyog Ltd retained its premier ranking for the sixth consecutive year, Mahindra & Mahindra
has shown the most improvement over the previous year. M&M, Honda and Ford were the only three companies that
showed improvement of all service aspects like quality, user friendliness etc.

The study also finds that operation costs of vehicles have risen 11-15% for both petrol and diesel vehicles as
compared to 2004. An aggregate of fuel, repair, maintenance and tyre costs, operation costs were lower for diesel-
powered vehicles largely due to lower fuel costs.

However, diesel vehicle owners also reported a 44% higher repair and maintenance costs compared to petrol
vehicles. Among diesel vehicles, Tata Indica and Indigo recorded the best performance and Maruti models bettered
their peers in the petrol segment.
Handset After-Sales Service Memorabilia of 2008
2009-05-14

Since 2007 till now, ZTE, based on the strategy of operator customization, has made overall breakthroughs in high-end
markets. Establishing partnerships with many operators, ZTE is selling its products to over 140 countries and regions. At the
same time, ZTE's handset after-sales service system is working hard to build a top brand, and it made great efforts in
enhancing the brand image of ZTE handsets in 2008. 

1、Strengthening global service

A competent overseas after-sales service team was developed to provide effective support to over 140 countries and
regions around the world. The service is guaranteed by templates, standardized processes, refined management, etc.

2、Building global service network


To build its global service network, ZTE had set up after-sales agents in over 40 countries to provide local after-sales
service. ZTE's after-sales service now covers all the countries where its handsets are on sale.

3.Starting e-Management
The project e-Management system was created, ensuring that every project can be monitored anytime.

The overseas after-sales Electronic Commerce Cooperation (ECC) platform was developed and deployed in India and
Indonesia, hence reducing inventory, circulation time and user wait time.

The handset after-sales technology management system was developed, thus creating a knowledge base of after-sales
technology. Statistics from the system can be used for performance appraisal of technical personnel.

The handset technical support website had been completely updated to better serve global agents.

E-Management had also been applied to handling of outstanding quality incidents, ensuring that major handset quality
problems will be resolved in a timely manner.

4.Achievements in the US
In the after-sales service customer satisfaction surveys conducted by US mobile operator MetroPCS, ZTE was ranked No.1
in the first quarter and No.2 in the second quarter of 2008 among seven world famous handset suppliers.

5、Standardizing management in Africa


ZTE implemented all-around handset after-sales service in Africa in 2008. After-sales agencies had been gradually set up in
Nigeria and other African countries.

6、Significant progress in after-sales R&D


A dedicated after-sales R&D team was established, providing R&D support to ZTE's research bases in Nanjing and Xi'an.
Capitalizing on after-sales experience, the team aims to minimize the possibilities of faults and resolve faults rapidly and
optimally after they occur.

7、Dramatic improvement in overseas product repair services


The capacity of overseas repair workshops has been continuously increased. The manufacturing and delivery period was
10-20 days, and the quality indicators achieved 100% compliance with the requirements and remained steady.

8、Enhancing English skills training


Crazy English weekend classes were provided to address the need of internationalization. Through small-class teaching and
group contests, the classes aim to overcome the difficulties in learning spoken English and technical terminology.

9、Creating rapid technical support system 


To realize fast response and resource optimization, seven overseas technical teams had been set up, and the overseas
technical support managers are required to supervise performance and solve problems in several countries to guarantee
timely response to local requests and improve operator satisfaction.

10、Service regulations on software for intelligent products


ZTE's handset after-sales service system released service regulations on software for intelligent products, which saves time
and reduces handset's use costs for users.

11、The after-sales international brand took root in four places


In 2008, ZTE launched its international after-sales brand "Hearty Service", and used it in four countries, India, Indonesia,
Vietnam and the Philippines, where brand stores were set up. According to a third-party survey in Indonesia, ZTE handsets
reached a brand awareness of 49%.

12、Driving forward quality programs


In 2008, ZTE's handset after-sales service system worked hard to drive forward quality programs, among which, the
program of shortening manufacturing period and user wait time had been smoothly implemented and awarded by the
company.

13、Refined management of international logistics


An international warehouse was set up in Hong Kong to meet the needs of international business. Materials for China and
overseas use were separated and quantified, to ensure accuracy of statistics.

14、Shortened international repair period


A team had been set up to optimize international repair processes. After half a year of team operation, the repair period was
reduced by 50% compared with the objective set at the beginning of 2008 and customs clearance time of repair workshops
was reduced by 97%.

15、Three emergency response plans 


Three emergency response plans had been implemented in China, for the snow storm in early 2008, the TD-SCDMA
commercial trial operation in April, 2008, and the earthquake relief in May, 2008.

16、ZTE handset Olympic service assurance team


During the Beijing Olympics held in August 2008, the handset after-sales service system set up the Olympic handset service
assurance team as an independent unit of the company's Olympic communications assurance team. The Olympic handset
service assurance team won high praise from China Mobile for excellent performance.

17、Continued leadership of ZTE's handset after-sales service 


ZTE's CDMA handset after-sales service achieved good overall performance in the assessment of Vsens (a subsidiary of
China Unicom) in September 2008 and thus has kept the No. 1 place for 14 consecutive months. 
Conclusion
Customer service, like any aspect of business, is a practiced art
that takes time and effort to master. All you need to do to
achieve this is to stop and switch roles with the customer. What
would you want from your business if you were the client? How
would you want to be treated? Treat your customers like your
friends and they'll always come back.

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