Fostering Next Generation Customer Experience Dr. Sajeev Abraham George Professor& Head Operations & Supply Chain Area S.P Jain Institute of Management and Research (SPJIMR) Global Supply Chain Summit: 22- 23 February 2018 Mumbai

Customer Service Customer Service is a process for providing significant value- added benefits to the supply chain in a cost-effective way. This definition illustrates the trend to think of customer service as a process-focused orientation that includes supply chain management concepts.

Managing Service Performance: Integrative framework Productivity Customer Experience Value People Process Technology

The “sweet” spot Experience Value Productivity The “sweet” spot

Evolving Concept of Customer Accommodation in SCM Achieve internal standards (e.g., Order-to delivery cycle, availability, reliability) Basic Service Meet customer expectations (e.g., arrive on time with right product as measured by the customer) Satisfaction Success Customers of choice achieve their objectives (e.g., operations can provide product and service in a manner that ensures long term customer viability)

Customer Focus: The Assumed Progression Excellent Basic Service Customer Satisfaction Loyalty Relative to Competition

Why Basic Service Isn’t Enough It is an internal focus, not a focus on customers Assumes all customers are alike Where do performance standards come from?

Increasing Customer Expectations Performance that meets customer expectations one year may result in extreme dissatisfaction next year Competition in an industry will often raise the minimum standards that customer expect

Why Customer Satisfaction is Not Sufficient It focuses on customer’s expectations - not their real requirements Considerable research suggests that “satisfied” customers still are likely to defect There is a tendency by companies to treat all customers as being equal and identical

Moving to Customer Success Our customer Customer’s We’ll do whatever they tell us they want This is not our problem (WRONG) How can we help our customers win?

Understand End-user Requirements The Essential Service Output Demands (SODs) Lot size Locational convenience Waiting time Variety and assortment Information

Srinivasan MKT 382 High Tech Marketing "You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. It took us three years to build the NeXT computer. If we'd given customers what they said they wanted, we'd have built a computer they'd have been happy with a year after we spoke to them--not something they'd want now."  Steve Jobs, CEO, Next, 1993