1. Today we will be discussing:
The contents of Customer Benefit Packages (CBPs)
CBP design factors and selection objectives
American Airline’s CBP
This is the agenda of what will be covered in the presentation.

2. What is a Customer Benefit Package?
The combination of tangibles and intangibles that comprise a service
Customer Benefit Packages are the combination of tangibles and intangibles that comprise a service. They could be thought of in the same way as employee benefit packages which companies use to entice their employees, and usually consist of benefits, vacation, and other perks. Companies want to entice their customers as well, and so instate a Customer Benefit Package.

3. Tangibles and Intangibles
Service
Provided
Tangibles
Intangibles
When a company provides a service to a customer, the combination of the tangibles and intangibles is what creates the customer’s experience with the service provider. Many companies have made the mistake of concentrating so hard on the actual service they are providing, that they neglect the intangibles associated with delivering it.
Customer

4. Test your understanding:
Imagine you have to visit
your dentist for a
check-up. What are some
of the tangibles and
intangibles that can
contribute to your
experience as a patient?
Exercise #1 is designed to test the audience’s understanding of the differences between tangibles and intangibles. The answers appear over the next two slides.

5. Tangibles How well your dentist cleans your teeth
How well the dentist identifies any potential problems with your teeth
The use of new technologies in cleaning and x-ray procedures

6. Intangibles The courtesy and disposition of the dentist and staff
The environment of the dentist’s office
Set-up of waiting room
Magazine selection
The efficiency of the staff in handling financial arrangements with your insurance company

7. Why develop your company’s Customer Benefit Package?
The upward trend in the business SERVICE sector over the past 20 years
A competitive edge starts with a solid CBP
An upward trend in the service sector over the past twenty years has characterized business in the United States, as well as in Japan. This has increased the competitive nature of service on the national level, and is expected to reach the global realm. It is because of this that the importance of CBPs has grown, and having a strong CBP gives companies a competitive edge over other service providers.

8. Why develop your company’s Customer Benefit Package?
Useful tool for service providers to clarify what they DO and DO NOT offer through their services
Helps to define service providers’ responsibilities to customers
Service providers use CBPs as tools to define the tangibles and intangibles provided through their service. In doing so, their responsibilities to customers are clearly identified which allows the service provider to ensure that those expectations are met.

9. Why develop your company’s Customer Benefit Package?
Helps service providers focus on building their service strategy
Successful CBPs lead to happy, satisfied customers
The ultimate goal for a company should be to completely satisfy their customers, in turn creating more customers through “word of mouth” and keeping their existing customers. In creating a solid CBP, a company focuses their efforts on defining the service they want to provide in terms of tangible and intangibles, which aids them in creating a strategy to meet their definition.

10. Designing an appropriate Customer Benefit Package for your company
Brainstorm for ideas about the aspects of service your company wants to provide
The first step in creating an effective CBP is for the company to think about the tangibles and intangibles they want to provide through their service. A useful question a company can ask is “What types of aspects in our service providing could distinguish us from others? How can we give our customers feelings of satisfaction in terms of the actual service they received, as well as the manner in which it was received?”

11. Designing an appropriate Customer Benefit Package for your company
Decide which attributes of those proposed will be contained in your CBP
Research your target market
The level of emphasis for the different attributes should coincide with their importance to prospective customers
BE CREATIVE !!!!
In selecting the appropriate group of tangibles and intangibles to provide through a CBP, a company needs to analyze their target market. More emphasis should be placed on including tangibles and intangibles that are felt to be important by the target market; after all, they are the people you are trying to entice. In order to differentiate your services from the competition it’s very important to be creative in the design of your CBP. This includes implementing tangibles and especially intangibles that are original and will be seen as original in the eyes of prospective customers.

12. Designing an appropriate Customer Benefit Package for your company
The contents of your CBP are defined…… So now what?
Tailor your company’s game plan to satisfy the elements of the CBP
This includes changing processes, systems, and procedures
A company may have a great idea to change its CBP to provide better service to its customers, but the structure of the business may be designed in such a way that it impedes the introduction of the CBPs elements. To amend this, a company may have to change its processes, systems, and procedures to allow the newly defined CBP to work effectively.

13. Designing an appropriate Customer Benefit Package for your company
We have already discussed the WHAT, and HOW of CBPs……. so what’s missing?
WHERE
Once a company has defined its CBP, and has taken measures to change any systems or procedures that impede its performance, it now has to ensure that the newly defined systems or procedures can take place. This involves properly designing facilities so they can effectively service the customer according to the CBP.
Take care to properly design your facilities so they can effectively service the customer according to the CBP

14. Differences in Customer Benefit Packages
Companies offer different types of CPBs based upon the types of services they are providing.
All companies are different, so likewise, their CBPs should differ according to the type of service they are providing. I grouped services into three groups, Highly specialized, Moderately specialized, and Low specialization which correspond to three types of CBPs, Highly customized, Selectively customized, and General-Low customization. This correspondence is based upon the service providers ability to customize their service according to the type of service they are providing. Other factors that contribute to a service providers ability to customize include the organizational design of the company and the staff’s motivation.
Type of Service
Type of CBP
Highly specialized
Highly customized
Moderately specialized
Selectively customized
Low specialization
General- Low customization

15. Exercise: What types of CBPs do the following businesses employ?
Accounting firm
Highly customized
Accountants tailor work to each customer’s personal needs
Money wiring service
Low customization
The same service is provided to everybody with very little variation
This exercise is designed to test the audience’s understanding of the different types of customization in CBPs employed by different types of service providers.
Restaurant
Moderately customized
The customization is found in the customer’s freedom to order
anything from the menu

16. Customer Benefit Packages American Airlines
American Airlines understands there is more to flying than just getting to where you want to go.
According to American Airlines:
“Attention to detail makes all the difference in the world when you’re traveling. That’s why we’re dedicated to providing more conveniences and personal touches on every flight.   Our goal is to make your travel experience more relaxing and enjoyable, from the moment you step on board, to the moment you arrive at your destination. “
American Airlines is a great example of a company dedicated to their CBP. They are continually seeking to improve their customers’ flying experiences, and do this through the continual assessment and innovations to their existing CBP.

17. Customer Benefit Packages American Airlines
American Airlines’ has improved their CBP to enhance their customers’ flying experiences.
THIS INCLUDES:
CABIN COMFORT- removal of rows of seats to create more leg room and plans to create more overhead bin space
DINING – expansion of menu to include 9 new meals ranging from lighter to traditional food inspired by current trends in nationwide food preferences
ENTERTAINMENT- in-flight video programming allowing flyers to watch “60 Minutes”, “48 Hours”, and CBS Sports; 12 music channels; in-flight magazine designed especially for kids
BUSINESS- Lab top ports and AT&T digital phone service
These are examples of the ways in which American Airlines is improving their CBP with the ultimate goal being to enhance the flying experience of their customers. They are currently doing this by improving cabin comfort, dining options, business accommodations, and entertainment variety.

18. Customer Benefit Package Summary
In today’s service oriented economy, its important that your company develops a strong CBP to stay competitive.
Keep in mind that there are many factors to take into consideration while designing an appropriate CBP for your company.
The definition of CBPs as well as their importance in today’s business world has been explained. In addition, this presentation has covered the many factors and decisions involved in creating an successful and appropriate CBP for different types of service providers.