1 / 23

Customer Service: Role in the Value C hain

Customer Service: Role in the Value C hain. July 26, 2013. Agenda Today. A Quick L ook at Value Value Oriented Retailing The Significant Impact of Customer Service A Framework to Design Customer Service Strategy Strategy to Tactics. A Quick Look at Value. Channel Perspective :

harva
Download Presentation

Customer Service: Role in the Value C hain

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Customer Service: Role in the Value Chain July 26, 2013

  2. Agenda Today • A Quick Look at Value • Value Oriented Retailing • The Significant Impact of Customer Service • A Framework to Design Customer Service Strategy • Strategy to Tactics

  3. A Quick Look at Value

  4. Channel Perspective: Value is a series of activities and processes (the value chain) that provides a certain value to the consumer Customer Perspective: Value is the perception the shopper has of the value chain It is the view of all the benefits from a purchase made versus the price paid What is Value? + % …..

  5. Wear the shoes of a customer for a moment? How often does each of us talk about receiving excellent customer service? AND How often do we recount horror stories of bad customer service?

  6. Retail Value Chain Represents the total bundle of benefits offered to consumers through a channel of distribution • Store location and parking, retailer ambience, customer service, brands/products carried, product quality, retailer’s in-stock position, shipping, prices, image, and other elements….

  7. Value Oriented Retailing

  8. Value-Oriented Retailing Involves Defining • it from a consumer perspective • a clear value/price point • a value position that is competitively defensible • what are expected and what are augmented value chain elements • a distinct market segment to which it is targeted • a process to communicate the value-oriented approach effectively to the target market • ……. • customer satisfaction goals • ways to measure customer satisfaction levels periodically

  9. Common MISTAKES in building a Value Oriented Retailing Strategy… • Planning value with just a price perspective • Providing value-enhanced services that customers do not want or will not pay extra for (understand your customer!!!!!) • Competing in the wrong value/price segment (identify your customers!!!!!) • Believing augmented elements alone create value (know your customer!!!!!) • Paying lip service to customer service (assuming that the customer is stupid)

  10. The Significant Impact of Customer Service

  11. What happens when Customer Service falls short.. In 2012, SMG, a customer insight agency, found in the UK that : • Retailers lose out on an estimated £45.38 billion a year by not giving their customers the best possible experience in store • A survey of over 100,000 UK retail and leisure customers discovered that improved interaction with the customer could increase average spend per person from £23.36 to £32.47- close to 40%!

  12. In this world of High-tech: we all crave High-touch!

  13. And Retailers are Responding… Source RSR Research, December 2012

  14. The Stated Importance of Customer Service in their Value Chain Clearly Impacts Performance…. Source RSR Research, December 2012

  15. A Framework to Design Customer Service Strategy

  16. Cost of Offering the Customer Service High Low High Value of the Customer Service to the Shopper Low

  17. Cost of Offering the Customer Service High Low High Value of the Customer Service to the Shopper Low

  18. Strategy to Tactics in Making this Fail-Safe Investment

  19. Fundamental Decisions • What customer services are expected and what customer services are augmented for a particular retailer? • What level of customer service is proper to complement a firm’s image? • Should there be a choice of customer services? • Should customer services be free? • How can a retailer measure the benefits of providing customer services against their costs? • How can customer services be terminated?

  20. Fundamental Decisions • How can store managers be empowered to ensure consistent delivery of the chosen customer service configuration? • How can each customer facing store associate or employee be empowered to ensure consistent delivery of the chosen customer service configuration? • How can the cost and benefits of the empowerment be measured: • Training? • Process monitoring? • Decision making?

  21. Fundamental Decisions • How can technology be leveraged to support processes that deliver chosen customer service elements: • Consistently? • In a scalable manner? • With a quick turnaround?

  22. How strong is your Customer Service Link? Even Mothers often need to be reminded by their crying child..Is it time for a little attention?

More Related