Introduction to Global Supply Chain Management Module Nine: Customer Service In The Age of Globalization 1

Class Agenda Value Propositions, The Customer Experience & Customer Service Internal & External Customers Customer Service design for different business models KPI’s to measure Customer Service performance 2

The Company’s “Value Proposition” A Value Proposition is a combination of all the things that a company does to entice customers to purchase their products or services Elements of a V.P. may include: – Employee knowledge & attitude – Pre-purchase service & support – Product characteristics, features & quality – Price – Purchase service & convenience 3

Value Propositions & The Customer Experience Elements of a V.P. may include (cont.): – Sales-related policies & procedures – Delivery method & lead time – Billing accuracy – Post-purchase service & support – Product warranties – Returns policy – “Ease of Doing Business” The Value Proposition is what drives and influences the quality of the “Customer Experience” 4

The Customer Experience The “Customer Experience” represents the overall impression that a client has upon completing a purchase – An on-line purchase of shoes – Going grocery shopping – Buying raw materials from a vendor The Customer Experience should be a function of the Value Proposition The quality of the Customer Experience (output) depends on its inputs Inputs that create outputs are a key characteristics of a process 5

The Service Component Of The Customer Experience Process Customer Service is composed of all of the client-facing activities a company engages in before, during and after a sale – In-store sales representative – Product engineer at a client’s factory – Product installation team – Technical support via chat – telephone representative These activities, or, “Touch Points,” must be clearly identified as part of crafting the Value Proposition & Customer Experience 6

The Service Component Of The Customer Experience Process Each Touch Point must enhance the overall Customer Experience – Generate positive interaction Customer service should be a reflection of “The Voice of The Client” – Identify the reasonable expectations a customer would have given the business model – Seek to surpass those expectations The first step in that process is to identify who the customer really is – Internal & External customers 7

Internal Customers & Global Supply Chain Management Internal customers are the departments and people in an organization that rely on colleagues to complete their portion of the Value Proposition This concept is based on the idea that within a process (and a company), one person’s output becomes another person’s input The service provided to internal clients always impacts the service given to external clients 8

Internal Customer Relationships & Global Supply Chain Management Examples of internal customers include: – Purchasing professionals depend on the logistics department for timely delivery – Sales people need the accounting department to run credit checks on new customers quickly – The factory relies on the MRP group to have raw materials available for production – Everyone depends on the I.T. department to make sure all of the company’s technology works 9

Customer Service Characteristics For Internal Customers Understand how specific outputs impact other departments & activities Have a process oriented mind set Anticipate and act upon issues before they happen ALWAYS live up to commitments Deliver bad news early 10

Customer Service Characteristics For Internal Customers Share knowledge & experience Don’t waste other people’s time – Be prepared for meetings Always follow up Timely response to s and phone calls – No voice mail, answer the phone! DO YOUR JOB WELL!!! 11

External Customers & Global Supply Chain Management External customers are those parties in a supply chain that actually purchase goods and/or services from a company The expectations of external clients are driven by the nature of the product and how it is sold In a global supply chain environment, products are bought and sold in a variety of ways – “Traditional” B2B sales – B2B on-line sales – “Traditional” retail sales – B2C on-line sales – “Omni-Channel” 12

Customer Service Design: Traditional B2B Sales Customer Service starts with the first contact by the salesperson – The “Sales Cycle” forms a big part of customer service – Quotations/bid process through negotation, close, product delivery, billing & payment Service levels from other departments during the Sales Cycle matter – Timely credit approval by accounting – Coordination with logistics for delivery – Technical support for installations and post installation service – Post-sale warranty, product maintenance, upgrades, etc. 13

Customer Service Design: B2B On-Line Sales Complete and updated on-line catalogue of products Clear prices – No hidden charges Availability of chat support number as option for questions Product availability clearly stated Mulitple delivery options – alerts with delivery updates – On-line delivery tracking 14

Customer Service Design: B2B On-Line Sales Shipping & Customs procedures for international orders Backorder information – alerts for backorders Easy-to-use check out process – Add/remove items quickly from cart Credit limit warnings “Running tally” for purchase value 15

Customer Service Design: B2B On-Line Sales Print options for invoices, et al Goods delivered on time Complete/correct orders No damaged or missing ítems Convenient returns policy – Invoice credit Accurate billing 16

Customer Service Design: Traditional Retail Sales Product availability Accurate pricing – Price tag matches advertised price – Price tag matches the scanned price on the register Knowledgable sales people Products easy to find Well organized & laid out store Minimal “dwell time” for customers Short check out process Easy returns process Omni-Channel options 17

Customer Service Design: B2C Sales Complete and updated on-line catalogue of products Clear pricing – No hidden charges Promotional/Sale items prominently displayed Availability of chat support number as option for questions Product availability clearly stated 18

Customer Service Design: B2C Sales Mulitple delivery options – Third party delivery capability – alerts with delivery updates – On-line delivery tracking Shipping & Customs procedures for international orders Backorder information – alerts for backorders Easy to use check out process – Quick removal of items from cart – Fast “order review” option 19

Customer Service Design: B2C Sales Secure credit card payment tool Gift card payment option Goods delivered on time Complete/correct orders No damaged or missing ítems Convenient returns policy – Customer-printed shipping label functionality – Invoice credit 20

Customer Service Design: Omni-Channel “Omni-Channel” is a practice whereby clients have multiple options for the purchase, delivery and/or return of goods Used for B2B and B2C – Customers buy on-line with goods delivered to home or business – Customers buy on-line and pick up at store or warehouse – Customers buy at store and have goods delivered to home or business – Customer buy on line but return goods to store Customer service has to support all of these options 21

Customer Service KPI’s: Quantitative & Qualitative Measures 22

Customer Service KPI’s: Quantitative Measures Number and percentage of incomplete orders Quantity of backorders Time transpired on filling back orders Instances of incorrect merchandise Shipments with damaged goods Over/under quantities 23

Customer Service KPI’s: Quantitative Measures Number and percentage of late deliveries Number of delays in customer pick- ups (omni-channel) Instances of incorrect billing Occurences of incorrect paperwork Number of rejected/returned goods 24

Customer Service KPI’s: Quantitative Measures Number of lost customers Number of negative on-line reviews Average length of C.S. calls Number of calls to resolve one issue Number of logged complaints received Length of resolution process 25

Customer Service KPI’s: Qualitative Measures Ranking of overall Customer Experience Price vs. Value ranking Opinion on knowledge level of sales people Quality of on-line support – Chat 26

Customer Service KPI’s: Qualitative Measures Impression of pre-sales support Ranking of post-sale support Depth of technical knowledge Responsiveness & follow-up Effectiveness of problem resolution 27

Customer Service KPI’s: Qualitative Measures “Good Manners” Index Likelihood of returning Probability of “Liking” Experience with Omni-Channel options 28

End of Module Nine Congratulations!!! 29