THE SERVICE PERSPECTIVE Prepared for: Dr. Paula Stechschutte Prepared by: Sherry Rudolph 28 May BUS499 Integrative Project Module 1 SLP Introduction The importance of service quality and organizational development cannot be undermined. It is important the organization determines organizational objectives related to service quality which help build the organization’s business and strengthen the customer base. Key performance indicators will then have to be in accordance with these objectives as well and may include percentage for first phone call responses to customers amongst various other KPIs. Below is the table indicating three objectives and their respective measures and performance level requirements, along with potential action plans (Customer Care Objectives, 2012; KPIs in ‘Customer service’, 2012). Objectives Metric Target Initiatives Utilizing customer response towards products to modify customer targeting strategy is one of the key ways to improve service quality towards the customer Percentage of Customer Satisfaction Surveys Filled Out It has to be ensured that customer surveys are filled out by each and every customer who purchases an apple product at least for the first time Each time a customer conducts a purchase, the survey should be represented to the customer with a request to fill it out. Resolving customer complaints quickly in order to help find problems and their solutions is one of the most critical ways through which the organization can benefit in terms of customer service as these solutions can help develop permanent process changes towards service quality Resolution Rate for First Calls of Complaint or Problem The rate for second call for the same complaint or problem should be zero Response rate should be such that the customer is called with progress updates so that the customer does not have to call with a complaint for the second time Obtaining repeat purchases from one time customers is an objective that can help the organization in building a strong customer base and indicate that good quality service can lead to repeat purchases Percentage of Repeat Purchases for the Customer Base The percentage of repeat purchase should be at least 50% from the entire customer base Customer is given information regarding various options each time a purchase is made so that a repeat purchase can be booked with the customer as soon as possible. Relationship with the Financial Objectives When the financial and customer service objectives are studied simultaneously, no apparent relationship can be seen between them.
However, a significant but indirect relation that is built between these objectives is that of repeat purchase by customers and allowing customers to voice their opinion through customer satisfaction surveys. Through these surveys, elements of complaint can be found out which when solved can help the organization to save costs in the longer run. Similar is the case with sorting out complaints quickly since addressing complaints quickly can help keep customers satisfied in the longer run and help save costs in terms of loss of customer.
In addition to that, another indirect link between customer service and financial objectives is that of market share; where increasing repeat purchases can help boost market share of the organization as well. In this respect, it is critical to understand that direct relation of customer servicing and marketing objectives with cost cutting measures and improving market share will not be present (Claycomb & Martin, 2002). References: Claycomb, C., & Martin, C. L. (2002). Building Customer Relationships: an Inventory of Service Providers’ Objectives and Practices.
Journal of Services Marketing, 16(7), pp. 615-635. Customer Care Objectives. (2012). Retrieved June 27, 2012, from West Lancashire Borough Council: http: //www. westlancsdc. gov. uk/council__democracy/service_standards/corporate_service_standards/customer_care_objectives. aspx KPIs in ‘Customer service’. (2012). Retrieved June 27, 2012, from KPI Library Resources: http: //kpilibrary. com/categories/customer-service-2