Customer service standards

Question 1

How can customer service performance be measured and controlled?

Answer 1

• Establishing quantitative standards for

performance

• Measuring actual performance for each

service element

• Analyzing variance between actual service

provided and the standard

• Taking corrective action as needed

Question 2

Give pre-transaction possible performance measures?

Answer 2

Quality of sales representatives
Regular call from sales reps
Monitor customers stock levels
Consults on new product development
Reviews product depth and breadth regularly

Question 3

Give transaction elements of measures of customer service performance?

Answer 3

Frequency of deliveries
Credit terms offered
Order cycle time
Order cycle time reliability
On time deliveries
Back Order percentages

Question 4

Post Transaction elements

Answer 4

Accuracy of invoices
Returns
Well stacked pallets
Good packaging
Good in store display

Question 5

What are the 4 actions that can be implemented to improve customer service?

Answer 5

1. Thoroughly researching customer needs
2. Setting service levels that make realistic trade-offs between revenues and expenses
3. Making use of the latest technology in order-processing systems
4. Measuring and evaluating the performance of individual logistics activities

Question 6

What are the customer service problems that organizations encounter?

Answer 6

Failing to segment market in terms of service offered

Salespeople can misuse customer service

Failing to understand industry norms, standards
(lack effective way of determining competitive service
levels)

Failing to measure cost-effectiveness of service levels

Failing to research levels of customer service required
for long-term profitability

Question 7

How to improve customer service performance?

Answer 7

1. Effective customer service strategy must be based on customers understanding of service
2. Using customers views on service, a customer service strategy should be selected that advances long range profits and return on investment
3. Using the latest technology like automation of order processing system to reduce order cycle time
   Benefits of automation: better product availability, more accurate invoices, increased ability to lower safety stock levels, improved access to order status information
4. Evaluating performance: Effective customer service program requires standards that:
   - reflect customer’s point of view
   -provide operational and objective measure of service
   -provide cues for corrective action