For the article, “why service stinks”, please answer the following questions:
Does service really stink? What are the negative effects of reducing service to some customer? Please provide an example.
Service really stinks. Nowadays company just emphasizes on potential customer and valued customer. If you fall below on these two categories, companies rather lose you than take time to serve you. Company are smart on checking customer background based on existing information and pass transaction history. Based on the pass history can determine customer value. Companies believe that serve a value customer is easier than looking for a new customer to buying the product. Meanwhile, based on ...view middle of the document...
The top 350 business clients served by 6 people, next tier 700 are served by 6 more, and 30000 others served by Unger and one representative, the rest 300000 residential customer at the lowest end are left with an 800 number. Unger explain that they are more consent biggest customer. Short handle of staff, customer which does not received proper service will switch to another company which can take care about them.
The Manhattan artist hauled a table home from an IKEA store. He only discover that all the screws and brackets were missing when he at home. He called to complaint, the giant furniture retailer refused to send him the missing items and instead he come back to pick them up by himself. Customer service manager form IKEA North America say that Andrew Chan reached the wrong guy, their normal procedure is to mail to customer within a few days. An unhelpful worker will spoil the whole entire company image just like above example. Is just a small thing, is the furniture retailer can help in proper procedure; Andrew Chan will not be get mad on their service.
Roy Sharda, a Chicago Internet executive is a “platinum” customer of Starwood Hotels & Resorts Worldwide. When the time he wish to propose to his girlfriend, Starwood Hotel arrange him enter to the Taj Mahal so that he could pop the question in private. Starwood Hotel also prepares horse-drawn carriage, flowers, personalized meal, presidential suite, and cheering reception line led by the general manager. Sharda feels that he has been treating like a king. This is a special service that given to a Platinum customer, other normal customer will not receive this kind of service. Did service far?
New technology is creating a radical new business model that changes the dynamic of customer service. Company can measure an individual level and access the return on each dollar. Company can know the exactly business amount someone can generate. This new technology allows company deliver the same level of service based on each customer willingness. This will cause company just will provide service to customer which willing to buy more and ignore those customer inquiry. Result might show that top tier customer may enjoy personal attention whereby who fall below a certain level may been bush out of the door and not get mo re attention.
According to Ravi Dhar, an associate professor at Yale University, 80% of profits are come from 20% customers. This 20% customer can be defining as a loyalty customer. Customer lifetime value is the net profit earned from sales to a given customer during the time that customer purchases from the sales organization. The rest will not bring more revenue although making inquiry frequently. Nowadays majority company approach customer using online self service, customer can easily do their transaction at convenience time, place or a negligible cost, so that company can concentrate giving service to valued and potential customer.
Nowadays sales staff won’t...