Chapter 9 Flashcards
Customer Service Management
the design and execution of the processes that provide customers with products and services they desire
Three Levels of Customer Commitment
Customer Success
Customer Satisfaction
Basic Service
Six Basic “Rights”
amount product place time condition information
Basic Service
a suppler’s ability to provide product availability, lead-time performance, and service reliability
Product Availability
the capacity to have inventory present when and where it is desired by a customer
Fill Rate
a measure of the impact of stock-outs over time or over multiple orders from customers
Unit Fill Rate
total units delivered / total units ordered
Line Fill Rate
number of order lines delivered complete / total order lines
Order Fill Rate
total complete orders delivered / total orders
Order-to-Delivery (OTD) Lead Time
the time that passes from the instant the customer places an order to the instant that the customer receives the product
Four Market Orientations
Engineer to Order (ETO)
Make to Order (MTO)
Assemble to Order (ATO)
Make to Stock (MTS)
Service Reliability
a firm’s ability to perform all order-related activities error-free
Perfect Order
the notion that an order should be delivered without failure in any attribute
Knowledge Gap
the gap between customers’ real expectations and managers’ perceptions of those expectations
Standards Gap
the gap that exists when internal performance standards do not adequately or accurately reflect customer expectations
Performance Gap
the difference between standard and actual performance
Communications Gap
the difference between a company’s actual performance and what a company communicates about its performance
Perception Gap
the gap that exists when customers perceive performance to be different than actually provided
Satisfaction Gap
the difference between perceived performance and the customer’s expectation regarding performance
Customer Success
helping customers to meet their real business requirements
Customer Relationship Management (CRM)
a software and information technology based approach used to collect and analyze consumer data from numerous sources for the purpose of developing strategically appropriate relationships with customers
Customer Success Chart is a function of:
profit (x) and revenue (y)
10 Consumer Expectations
Reliability Responsiveness Access Communication Credibility Security Courtesy Competence Tangibles Knowing the Customer
Five Lead-Times
Product Design (engineer to order) Procurement (Make to order) Production (Assemble/make to order) Delivery (Make to stock) Order (Make to stock)
