Chapter 2 The customer service dimension Outline n

Chapter 2 The customer service dimension

Outline n The marketing and logistics interface n What is customer service? n Customer service and customer retention n Service-driven logistics systems n Setting customer service priorities n Setting service standards n Summary

This chapter： Highlight the importance of managing the marketing and logistics interface on an integrated basis. n 强调在协调的基础上管理市场营销与物流 接口的重要性。 n Emphasizes the need to understand the multiple elements of service from the customer perspective. n 从顾客角度出发，强调理解多重服务要素 的重要性。 n

Explains of the importance of customer retention and the life time value of a customer. n 解释客户保持与客户终身价值的重要性。 n Outlines the idea of a service-driven logistics system based upon identified service priorities and a customer based segmentation according to service requirement. n 概述服务驱动的物流系统理念，该理念建 立在确定服务等级、根据服务需求细分客 户群的基础上。 n

Introduce the idea of the ‘perfect order’ as the basis for measuring Service performance. n 介绍以“完美订单”进行服务绩效测评的 思想方法。 n

n The mission of logistics management was defined simply in terms of providing the means whereby customer’s service requirement are met.

n The ultimate purpose of any logistics is to satisfy customers.

n The objective should be to establish a chain of customers that links people at all levels in the organization directly or indirectly to the marketplace.

市场营销和物 流相互关联 1. The marketing and logistics interface

Questions 1 n According to text, there are signs that old view is rapidly changing, how does it change?

Questions 2 n What are the two factors which contributed most to the growing importance of customer service?

持续上涨的客 户期望。 n Two factors to the growing importance of customer service: 1. The continual development of customer expectations. 2. The slow but inexorable transition towards ‘commodity’ type markets. 向“无差异商品”市场的 过渡，这是一个缓 慢却不可避免的过 程。

2. What is customer service?

Questions 1 What is , in essence, the distribution function of the business concern about? Making the products or service available

Questions 2 By La. Londe and Zinszer ‘s opinion , how to examine customer service ?

客户服务可以从三个方面 来检查： 交易前要素 交易中要素 交易后要素 n La. Londe and Zinszer suggested that customer service could be examined under three headings: n 1. Pre-transaction elements n 2. Transaction elements n 3. Post-transaction elements

Pre-transaction elements Written customer service policy 客户服务策略的书面文件 (Is it communicated internally and externally, is it understood, is it specific and quantified where possible? ) n Accessibility 易接近性 (Are we easy to contact/do business with? Is there a single point of contact? ) n Organization structure 组织结构 (Is there a customer service management structure in place? What level of control do they have over their service process? ) n System flexibility 系统灵活性 (Can we adapt our service delivery systems to meet particular customer needs? ) n

Transaction elements Order cycle time 订单周期时间 (What is the elapsed time from order to delivery? What is the reliability/variation? ) n Inventory availability 库存可得性 (What percentage of demand for each item can be met from stock? ) n Order fill rate 订单完成率 (What proportion of orders are completely filled within the stated lead time? ) n Order status information 订单状况信息 (How long does it take us to respond to a query with the required information? Do we inform the customer of problems or do they contact us? ) n

Post-transaction elements Availability of spares 备件可得性 (What are the in-sock levels of service parts? ) n Call-out time 上门服务时间 (How long does it take for the engineer to arrive and what is the ‘first call fix rate’? ) n Product tracing/warranty 产品追踪/保证 (Can we identify the location of individual products once purchased? Can we maintain/extend the warranty to customers’ expected levels? ) n Customer complaints, claims etc. 客户投诉、索赔等 (How promptly do we deal with complaints and returns? Do we measure customer satisfaction with our response? ) n

Questions 3 Why is it essential for any business to have a clearly identified policy towards customer service? It is because of the multivariate nature Of customer service and because of The widely differing requirements of Specific markets.

Revenue loss due to an outof-stock 20% 46% decline in intended expenditures 6% 100% 54% Consumer Decrease shops Purchase Consumer Intended in value of expenditure elsewhere/ delays purchased when out-ofdoes not purchase expenditure alternatives stock occurs make purchase

n Low cost strategies may lead to efficient logistics but not to effective logistics. 低成本战略可能促成 有效率的物流，但难 以形成有效益的物流。

The impact of logistics and customer service on marketing 消费者特权 Consumer franchise 客户特权 Customer franchise × 供应链效率 × Supply chain efficiency 市场营销效率 = Marketing effectiveness • Brand value • Customer service • Flexibility • Market share • Corporate image • Partnership • Reduced asset base • Customer retention • availability • Quick response • Low cost supplier • Superior ROI n n n 品牌价值 企业形象 可得性 n n n 客户服务 合作关系 快速反应 n n n 灵活性 降低的资产规模 低成本供应商 n n n 市场份额 客户保持 高投资回报率

3. Customer service and customer retention

Organizations are not only compete on the products’ features but also on the product’s added-value services.

People don’t buy products, they buy benefits. ——Theodore Levitt (one of leading thinkers) 人们购买的不是 产品，购买 的是利益。

Using service to augment the core product 配套服务 su rro un service d Core Product n n 质量 产品特征 技术 耐用度等 • Quality • Product features • Technology • Durability etc. n n n 配送的前置时间与灵活性 配送的可靠性和连贯性 单一的联系渠道 交易的便捷度 售后服务等 • Delivery lead time and flexibility • Delivery reliability and consistency • Single point of contact • Ease of doing business • After-sales support etc.

One of the classical definitions of marketing is that it is concerned with “getting and keeping customers”.

Lifetime value 客户保持的重要性可 以通过客户“终身 价值”的概念体现 出来。 The importance of customer retention is underlined by the concept of the ‘lifetime value’ of a customer. Lifetime value= Average transaction value × yearly frequency of purchase ×customer ‘life expectancy’ 客户终身价值＝平均交易额×年购买频率×客户“寿命期望”

n A simple measure of customer retention is to ask the question : ’how many of the customers that we had 12 months ago do we still have today? ’

Customer retention indicators New customers 新增客户 Retained Customers 原有客户 No. of customers today No. of customers 12 months ago 当前客户数量 12个月之前的客户数量 英镑 12个月之前的购买量 Value of purchases 12 months ago ￡ ￡ 原有客户购买量 Value of purchases by retained customers

The importance of customer retention: Furthermore there is evidence to suggest that retained customers are more profitable than new customers. Why ?

A prime objective of any customer service strategy should be to enhance customer retention.

n So, there is rapidly emerging a new focus in marketing and logistics on the creation of ‘relationships’ with customers. n The principle behind Relationship Marketing is that the organization should consciously strive to develop marketing strategies to maintain and strengthen customer loyalty.

4. Service-driven logistics systems

n The role of logistics can be seen as the development of systems and the supporting co-ordination process to ensure that customer service goals are met. n This is the idea of the service-driven logistics system—— a system that is designed to meet defined service goals.

So often we find that organizations design and manage systems which have internallyfocused objectives rather than external goals.

n A far more effective starting point for logistics system design is the marketplace; in other words we must fully understand the service needs of the various markets that we address and then seek to develop low cost logistics solutions.

Ideally all logistics strategies and systems should be devised in the following sequence: Identify customers’ service needs 认清 客户 对服 务的 需求 Define customer service objectives 确定 客户 服务 目标 Design the logistics system

Identifying customer’ service needs 1. 2. 3. Identify the key components of customer service as seen by customers themselves. Establish the relative importance of those service components to customers. Identify ‘clusters’ of customers according to similarity of service preferences. 1. 2. 3. 找出在客户眼中关键的客 户服务因素。 设定客户服务要素的相对 重要性。 根据服务需求相似性，划 分客户群。

Defining customer service objectives The whole purpose of logistics strategy is to provide customers with the lever and quality of service that they require and to do so at less cost to the total supply chain. 供应链及物流管理的全部目 的在于，保证供应链总 成本增幅较小的同时， 按客户要求提供服务。

The definition of appropriate service objectives is made easier if we adopt the concept of the perfect order. n The perfect order is achieved when the customer’s service requirements are met in full. n The measure of service is therefore defined as the percentage of occasions on which the customer’s requirements are met in full. n

One frequently encountered measure of the perfect order: On-time: 90% 准时率 In-full: 80% 全部完成率 无错率 Error-free: 70% The actual prefect order achievement: 90% × 80% × 70%=50. 4%

The cost benefit of customer service n a basic fact: there will be significant differences in profitability between customers. n Pareto Law (or the 80/20 rule)?

n The challenge to customer service management? (P 53)

Costs of service The cost of Service Why? A steeply rising curve 0 Service level 100%

Costs of service Shifting the cost of Service What’s the use? How to do? 100% Service level

Costs of service the returns to Service Why is the service Response Curve S-shaped? P 55 Service level 100%

设定客户服务 优先级 5. Setting customer service priorities

既然并非所有客户都带 来高利润率，不同产品 对利润的贡献程度也截 然不同，难道不应对核 心客户和核心产品设定 最高的服务优先级？ Since not all our customers are equally profitable nor are our products equally profitable, should not the highest service be given to key customers and key products?

%sales/profits The ‘Pareto’ or 80/20 rule 5% 15% 80% ‘A’ ‘B’ 20% 50% % Products/customers ‘C’ 30% How Does a Typical Company Find its Profits Varying by Customer And by Product？

Question What use might be made of the A, B, C categorization?

The stock-holding policy Product category stock availability A 99% B 97% C 90%

n The best way to manage product service levels is to take into account both the profit contribution and the individual product demand.

Hi (1) Seek cost Reduction 成本有待 降低 (2) Provide high availability 确保高 可得性 Lo V o lu m e (b y S K U ) Managing product service levels (3) Review 复查 (4) J. I. T Delivery 准时配送 Lo Hi Profit contribution (by SKU)

Customer service and the 80/20 ruleu Key products, key accounts (protect) Develop Products A B Develop Maintain Review C A B Customer C

Customer service and the 80/20 rule 如果运用 80/20法则同时对产品和 客户分类，那么企业的绝 大部分经营活动仅依赖于 少量客户，他们购买为数 不多的高利润产品。 If the 80/20 rule applies both to products and customers then all businesses are actually very dependent upon a very few customers buying a few high profit lines. 20% of customers buying 20% of the products = 4% of all customer/product transactions Which provides: 80% of total profit = 64% In other words just 4 per cent of transactions gives us 64 per cent of all our profit.

Question n How can we make use of this important fact?

Setting service standards

Some key areas where standards are essential n n n Order cycle time Stock availability Order-size constraints Ordering convenience Frequency of delivery Delivery reliability Documentation quality Claims procedure Order completeness Technical support Order status information • • • 订单周期 库存可得性 订单规模限制 订货便捷性 送货频率 送货可靠性 文档质量 索赔程序 订单完整性 技术支持 订单状态信息

Composite service index 服务要素 重要度权重 服务绩效水平 分值 Service element Importance weight Performance level Weighted score (i) (i) ×(ii) Order fill rate On time delivery Order accuracy Invoice accuracy Returns • • • 订单满足率 及时送货率 送货准确率 单据准确率 退货率 30% 25% 10% 70% 60% 80% 95% 0. 21 0. 15 0. 20 0. 095 Index = 0. 745

Summary Customer service is a multi-faceted concept. It is increasingly important as a means of gaining and maintaining differentiation in the market-place. Equally, since no two customers are alike it must be recognized that Service must be tailored to meet the needs of different customers. 客户服务是一个复杂的概念。 有必要为不同的客户群量身 定制服务策略。

Logistics management can play a key role in enhancing customer lifetime value through increasing customer satisfaction and thus customer retention. to achieve this will require the development of a marketdriven logistics strategy and the redefinition of service objectives based upon customer’s specific 在延长客户终身价值上， requirements. ‘Perfect order’物流管理扮演了重要的 achievement should 角色，它可以提高客户 form the basis for the measurement of service 满意度、巩固客户保留 价值。 performance and the creation of service standards. “完美订单”应作为衡量 服务绩效和制定服务标 准的基础。