...determining the cost of serving customers and as a basis for evaluating the profitabilty of a specific customer or group of customers. Why is this important? Most managers agree that 80% of their profits come from the top 20% of their customers and most important, the bottom 20% of their customers are unprofitable. For example, to compete with Walmart,Best Buy works hard to attract profitable customers and equally hard to discourage the unprofitable customers which those that are price shopping and looking for discounts and promotions and comparing prices to Walmart. Best Buy studies demographic and sales data for each store location to identify profitable and unprofitable customers. Customer profitabilty analysis idetifies customer service activities and cost drivers and determines the profitability of each customer or customer group. Here, customer service include all activities to complete the sale and satisfy the customer including advertising, sales calls, delivery, billing, collection, service calls, inquiries and other forms of customer service. Customer profitability analysis allow managers to: * Identify most profitable customers * Manage each customer’s cost-to-serve * Introduce profitable new products and services * Discontinue unprofitable products, services or customers * Shift a costomer’s purchase mix toward higher-margin products and service lines * Offer discounts to gain more volume with low costs-to-serve customers * Choose types of after-sale...
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...Service Processes and People: Customer Experience Analysis June 3, 2012 Abstract In an article written by Chris Young of the Rainmaker Group Inc., (2008), “having a clear understanding of a customer's emotional involvement with a product or service can go a long way in helping to create a positive and memorable customer experience. Often organizations do not fully understand the high level of emotional attachment a customer may have in or with a product or service provided. The truth of the matter is that it could not be more important that organizations understand these emotions, as they are often the foundation to creating a “WOW!” customer experience. Conversely, failing to understand these emotions can cause an organization to unwittingly harm a customer and lose them for life.” Therefore the personal customer experience encountered at two organizations will be described through out this paper. If you had a formal, semi-formal, business event, or just needed professional attire to attend and needed to buy an outfit where would you go? If you choose to go to Nordstrom Department Store or the store Black and White, do not expect to be greeted with a smile if you do not look the part of a person of wealth, economic status, and maybe cultural or race majority. Excellent service is defined as satisfying the customer and meeting the strategic intention of the organization (Johnston & Clark, 2008, p. 182). Neither one of these establishments when visited utilized...
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...Managing profitability requires not only a customer-centric focus but also a thorough understanding and effective management of customer profitability. Customer profitability management (CPM) is a strategy-linked approach to identifying the relative profitability of different customers or customer segments in order to devise strategies that add value to most-profitable customers, make less-profitable customers more profitable, stop or reduce the erosion of profit by unprofitable customers, or otherwise focus on long-term customer profitability. Businesses often employ two systems to make sure business processes run efficiently, Customer Relationship Management (CRM) system and an Enterprise Resource Planning (ERP) system. A CRM system deals with managing valuable customer data and enriching it through interactions with marketing and customer support. An ERP system generally handles customer information that is required once orders have been placed. Both CRM and ERP systems independently offer substantial benefits to businesses. Once both systems are integrated it will allow for connectivity between the two, providing even more advantages to businesses. With CRM and ERP integration, organizations can focus more on driving new business and less on the hassles of trying to make data available. Customer profitability analysis attempts to analyze, manage, and improve customer profitability. Activity based costing (ABC) has created a framework for companies to examine more...
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...about customer service 3 II. Summary of John Lewis case study 4 (A good customer service) III. A bad customer service: VNPT's Internet Operator 7 A. Company's overview 7 B. Analysis of the case and causes 8 1. The registration procedure 8 2. The level of staff and technicians 9 3. The attitude of the staff operator 10 C. Recommendations 12 IV. Conclusion 14 V. References 15 Introduction about customer service Customer service is the way a business looks after its customers. According to Turban et al. (2002), "Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation". Customer service has to be a team effort and not just the responsibility of employees who deal with the public directly. Providing good customer service is a vital part of managing a business. Most customers have the option to go elsewhere if the quality of customer service is lacking. On the other hand, good customer service is a source of competitive advantage. Good customer service leads to customer satisfaction. Satisfied customers are more loyal and profitable. Dissatisfied customers take their money elsewhere – and tell their friends about the poor service they have received. A good customer service bring a lot of benefit to the company if they have one: increasing sales, customer loyalty, enhanced public image, more effective workforce. Satisfied customers will lead...
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...Analysis of Starbucks Delivering Customer Service Problem statement: • In 2002, market research has shown that Starbucks has a gap in meeting its customer’s expectations in terms of customer satisfaction. • On interpretation the marketing research data, Christine Day, Senior Vice President concluded that the speed of service was the main reason for this decline in customer satisfaction. So she proposed to improve the service time such that each order is served within 3 minutes. • However, this solution would cost Starbucks 20 additional labor hours per week thereby $40 million per year. Is 20 seconds increase in speed of service really worth $40 million per year? Situation Analysis: Customers: The demographics of a typical Starbucks customer have changed drastically in the recent years. • From Exhibit 8 in Starbucks case document newer customers of Starbucks are younger, less well-educated, low income, less frequent visited to the coffeehouse and had very different perceptions. • The overall attitude of Starbucks is very low on 25% by new customers whereas the regular customers stood in 44%. • While many factors influenced customer satisfaction, overall service and speed of service were identified as the most influential; a quick glance at Starbucks's recent customer satisfaction (Exhibit 10 and Exhibit 11 in Starbucks case document) reveals that customers did in fact express dissatisfaction with the efficiency and speed of service. • From Exhibit 9 in the...
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...------------------------------------------------- ------------------------------------------------- ZARA: FAST – FASHION CUSTOMER SATISFACTION ANALYSIS USING IBM SPSS ------------------------------------------------- ZARA: FAST – FASHION CUSTOMER SATISFACTION ANALYSIS USING IBM SPSS MARKETING MANAGEMENT COMPANY PROJECT BY GROUP 8 ABHISHEK GUPTA BY GROUP 8 ABHISHEK GUPTA ABOUT INDITEX INDITEX is a Spanish multinational clothing company headquartered in Arteixo, Galicia, Spain. It is made up of almost a hundred companies dealing in activities related to textile design, production and distribution. Amancio Ortega, Spain's richest man, and the world's third richest man, is the founder and current largest shareholder. The current chairman of Inditex is Pablo Isla. Inditex operates over 5,500 stores worldwide and owns brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Zara, and Tempe and also a low cost brand Lefties. The majority of stores are corporate-owned Franchises are only conceded in countries where corporate properties cannot be foreign-owned. The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores. Most manufacturing is now in low labor cost countries, mainly in Morocco, China, and Turkey, although much production continues in Spain and Portugal, particularly for its Zara brand. In addition, Inditex has a factory for shoe design, production and distribution in the town of Elche...
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...I .Customers analysis: We chose to identify customers by their characteristics, values and their life styles. We found 6 different groups: Elite: Main characteristics: * Customers who never feel the impact of economic fluctuations * The traditional segment of the luxury travel * Luxury lifestyle * Looking for the best (the best of the best) and the exclusive * The need to meet with people from the same background These "rich Chinese" are regular customers, and most of the time, are exclusively responsible in banks or executives of the party contractors. They are a big part of the 320 000 Chinese millionaires, often as young as rich. They inform themselves about new products by visiting the catwalks. Louis Vuitton has also a specific politic for this kind of customer; they call them VIC (Very Important Customer). Indeed LV sends them personally letters, they invite them to special private sales where they show them all the new and limited collections in advance. When they shop they make special appointments with the store and most of the time and it is the director who receives them and look after them during their shopping session. The new super rich class: Main characteristics: * Young customers smart and educated * Customers with high revenues * Need for recognition * Looking for a social « status » (climb the social ladder) * Proud of their success * Importance of appearance The ’new super...
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...editorijaiem@gmail.com Volume 1, Issue 2, October 2012 ISSN 2319 - 4847 AN ANALYSIS OF THE CUSTOMER SATISFACTION: A CASE STUDY OF BANK SERVICE Haeryip Sihombing1, Parahsakthi Chidambaram2 and Kannan Rassiah3 1 Fakulti Kejuruteraan Pembuatan (FKP), Universiti Teknikal Malaysia Melaka (UTeM), Main Campus – Durian Tunggal, 17609 – Melaka, MALAYSIA 2 Politeknik Ibrahim Sultan (PIS)81700 Pasir Gudang, Johor Bahru, MALAYSIA 3 Politeknik Merlimau Melaka (PMM) Merlimau 77300, MALAYSIA ABSTRACT This study focuses on how to measure the customer satisfaction in the service industry towards the satisfaction aspects considered of the ServQual criteria. The questionnaires developed were using Kano criteria that manipulate the qualitative data of quality attributes into quantitative value and Likert scale based on the quantitative values. By comparing the results data of Likert scale and Kano criteria related to the service delivered, the measurement carried out in this study is towards the service of bank industry. The correlation among them, based on what the functional and dysfunctional of Kano domain compared to the Likert scale, are to validate what the main criteria required for the improvement priorities against customer satisfaction. This is due to the method of CAT ranking and graphical between CS versus DS are ambiguity for justifying the improvement of priorities required. Keywords: Customer Satisfaction, Kano, CS-DS, CAT. 1. INTRODUCTION A major outcome of marketing...
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...PROJECT REPORT ON “To measure Idea Champion Club Retailer’s Satisfaction levels and to identify the effective Strategies of Retailer Engagement Program” At Idea Cellular (Prepaid) Region: Delhi-NCR From: 07/04/2013-06/06/2013 By Mayur Kriplani (IM20-234) PGDIM (2013-2015) Submitted for the partial fulfillment of Post Graduate Diploma in Industrial Management National Institute of Industrial Engineering ViharLake, 400087 Under the guidance of Project Mentor: Faculty Guide: Mr. Inderjeet Sethi Prof. Sanjeev Verma General Manager-Sales (Prepaid) Professor Idea Cellular, Delhi-NCR NITIE, Mumbai National Institute Of Industrial Engineering, Mumbai Page 1 CERTIFICATE OF PROJECT COMPLETION This is to certify that Mr. Mayur Kriplani, student of Post Graduate Diploma in Industrial Management (PGDIM) 20th Batch of National Institute of Industrial Engineering (NITIE) has successfully completed his two months Summer Internship Project titled as: “To measure Idea Champion Club Retailer’s Satisfaction levels and to identify the effective Strategies of Retailer Engagement Program” At Idea Cellular, Aditya Birla Group, Delhi-NCR, under the guidance of Prof. Sanjeev Verma, faculty guide, NITIE and Mr. Inderjeet Sethi, General manager- Sales, Idea Cellular, Delhi-NCR from April 7th, 2013 to June 6th, 2013. I appreciate the efforts put by him and wish him a bright and prosperous future...
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...ABSTRACT The purpose of the present study is to find out bank customers’ perception about service quality and customer satisfaction. The sample was collected from banks located in Kathmandu, which is the capital of Nepal. Service quality was measured using SERVPERF approach. The questionnaire included 27 questions relating to the five dimensions of service quality viz. reliability, assurance, tangibility, empathy and responsiveness. Customer satisfaction was measured using a single item scale. A strong correlation was found between service quality dimensions and cumulative customer satisfaction. Regression analysis revealed reliability, tangibility, empathy and responsiveness as statistically significant predictors of customer satisfaction....
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...Customer Analysis Income Medium income: Considering the high quality of Starbucks coffee, they can’t just sell it for the cheapest price. The price of a cup of coffee from Starbucks is affordable for people with medium income. People with high income is partly included as focused customers of Starbucks, but those with high incomes are likely to find other places with the money they have. Thus, people with medium income, those who think the coffee is affordable, are the main customers. Occupation: Students: Especially university students come to Starbucks during their breaks, after school or for projects. As Starbucks serves customers with free wifi connection and a gathering place, it is a perfect place for university students. They can spend their spare time hanging out with their friends. Also, it can be a place for students to conduct group projects. White collar: They are the people who have enough money to buy the coffee. People working as white collars are the ones who can afford for a cup of coffee in Starbucks. These customers come before work in the morning, during lunch breaks or have short meetings in Starbucks. These people enjoy other things more than just coffee. Age: Men and women aged 20-40 account for about 49% of Starbucks’ total business. Also, Starbucks’ 40% of sales are by young adults who are aged 18 to 24. This is due to the fact that Starbucks positions itself as a place for university students to hang out, study and writing term...
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...An analysis of the factors of successful implementation of customer relationship management in chain of supermarkets in the United Kingdom 1. Introduction Today, more and more companies find that cultivating customer loyalty is a key factor to achieve success. Customer relationship management (CRM) focuses on the relationship between customer and company. Due to this feature, many companies are trying to establish their own CRM system for helping them to connect new customers and boost old customers’ long-term loyalty. CRM systems include operations and analysis, and relationship marketing strategy and supporting, customer-centric business processes (Buttle 2004). With the development of information technology (IT), using CRM system is more convenient. It is considered as an important strategic compulsory (Coltman 2007), with investment predicting that global costing will increase on CRM system over the future (Gartner Group 2009). From a U.S. based survey, it was found by Goodhue et al. (2002) that a CRM system had already been established or was planned by 91 percent of companies. However, according to Rigby, the application of a CRM system is not very successful (Rigby et al. 2002).The main reason is that more than half of total companies consider CRM as a simple technology solution which aims to build a bridge among marketing, sales and service (Peppers and Rogers, 1999). A successful implementation should consist of different functional departments and be based on...
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...Marketing Plan Assignment 2: Goals & Objectives, Customer Analysis, and Target Market & Positioning Nan Zhang, Thai Tran, Hollyann Joyner I. Marketing Goals and Objectives A. Have largest market share in US coffee Industry * Objective 1: opening 3000+ net new stores in America by 2017 Starbucks will open more than 3000 stores in 48 states in US depends on population density. High population area like New York and Washington should open more than other states. And US is the largest market for Starbucks, and it’s brand name is well known, open more stores, and have an intensive distribution, so when consumer thirsty or tired, they can find a Starbucks next to them. * Objective 2: US market revenue grow by 12% in 2014. At least half of the new stores are expected to be in the strong, rapidly growing U.S. market, and in 2012, the new store revenue grew by 9 percent. Starbucks should focus on their loyalty program and advertising activities, so people could always see it in TV or internet. So sale will increase gradually. So Starbucks expect higher revenue 12 percent in 2014 is reasonable and possible. B. China on track become second-largest market in 2014 * Objective 1:opening 1000 new stores in different provinces of China by 2016 China had an 8 percent growth in 2013, almost the same as America, Starbucks has a really good brand name, currently there are more than 3,000 stores in China, and they all located in major big cities, so...
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...Marketing Elements and Customer Analysis MBA 6110 Dr. Ted Framan February 27, 2011 [pic] The Motorola Xoom is very new to the market. It was introduced to the consumer market on February 22, 2011. For working on the go, the Motorola XOOM provides constant connectivity - including connecting to Gmail or Exchange e-mail; opening and editing documents, spreadsheets and presentations; and viewing calendars and sending out appointments or meeting notices - with mobile broadband speeds. The Motorola Mobility’s Xoom tablet is named the best new gadget at the 2011 Consumer Electronics Show (CES). One of the biggest factors in determining the success of a tablet computer is the size of its screen display. The sleek Motorola Xoom features an appealing 10.1 inch display area and weighs only 1.5 pounds. The XOOM comes with 32GB of NAND storage and has a powerful dual-core Nvidia Corp. Tegra 2 apps processor, ample 1GB synchronous dynamic random access memory (SDRAM) and extra sensors. This tablet is powered by “Honeycomb” software from Google. The operating system was designed specifically for tablets and delivers an amazing user friendly experience such as holographic features and is 3D capable. By using a dual-core design, the XOOM and can run processes and software much faster than it major competitor. The Xoom is official offered at Verizon and Best Buy retail stores as well as online with Motorola, Best Buy, and Verizon...
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...29th, 2013 Angela Lucente Planning For People Job analysis is an important process, any organization used to use it in order to collect information and data about required skills, level of education, work environment, responsibilities, and the duties to create a job description, recruiting plans, and performance development planning (Susan M. Heatfield, 2013). Once job analyses are updated as described, a summary of the results is normally prepared in writing in the form of a job description (Wayne F. Cascio, 2010). According to my reading chapter five about job analysis process. There are some topics I felt comfortable with, such as alternative perspectives on jobs. This topic add to my knowledge many information and explained how jobs are important to organizations, what is the highly unusual jobs that some organizations required it, and distinguish job analysis form job design (Wayne F. Cascio, 2010). On the other hand, I struggled with topic job requirements because there are many methods created in order to study job requirements and none of them alone is sufficient. Thus, it is essential to integrate this methods to obtain the results of the tasks and duties of a job (Wayne F. Cascio, 2010). It is not that easy to implement the methods of job analysis, such as job performance, observation, interview, critical incidents, and structured questionnaire, those are the most five common methods of job analysis and each one of those takes time and effort to achieve desirable...
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