GROUP 10 SECTION B

SUBMITTED TO:
PROF. VIBHAVA
SRIVASTAVA
PROFESSOR MARKETING,
MDI, GURGAON

NISHANT PROSOON
(NMP56)
ROCHIKA SHARMA
(NMP68)
ANIL KARDAM
(NMP78)
SWARAJ KUMAR DHAR
(NMP87)
PRADEEP VARSHNEY
(NMP93)

CASE STUDY ANALYSIS ON XEROX CORPORATION :

THE CUSTOMER SATISFACTION PROGRAM
Overview:
Xerox being one of the pioneer in the Copier market faces the challenge of
eroding market share, primarily due to decreasing customer satisfaction
Starting with one of the most successful products of its kind, Xerox
achieved phenomenal growth and dominated the market over decades
Challenges faced by Xerox were both Internal Quality, Operational efficiency &
External Decreasing Market Share, Customer Satisfaction Issues
The case talks about the reasons which led to Xeroxs downfall, the
steps taken to identify the pitfalls and actions taken to regain the
market lead

History:

In 1959, the Haloid company launched the first office copier

The company was renamed as Xerox in 1961

Xerox enjoyed the Phenomenal growth till 70s

Number two w.r.t number of units sold

Market leader w.r.t revenues

Over 60% revenue came from corporate sector

The only full-line supplier had largest service organization

Was the largest paper & supplies distributor

Challenges :

Competition

Being part of extremely competitive market with 23 companies

sharing the potential revenue Xerox found to be more
complacent
Strategy

No strategy in place to take into account all the segments.

High Cost disadvantage

Higher Costs than competition and declining quality had caused

sharp reduction in market share and ROA.

Unfocused venture

Forgot about their core expertise and ventured into other

businesses

Customer satisfaction

The enterprise ignored the needs and wants of the customersDid

not take responsibility in keeping the relations with the
customers

Turn around Strategy:

A strategy based on the philosophy of total quality was

crafted

The company was restructured accordingly

Customers needs/wants in terms of quality were given the

prime importance.

Quality was ensured in all processes from top to bottom

Leadership Through Quality (LTQ) program was initiated
preventing defects and to meet customers expectations

Goals and initiatives were set envisioned across the length &
breadth of Company

Customer Satisfaction

The degree of satisfaction provided by the goods /

services of a business as measured by no. of repeat
customers. e.g., Mobile SIM Secondary Re-charge.

A Leading business indicator how likely is that the

current customers will make any future purchase.

Another key metric could be Willingness to

recommendCustomer satisfaction leads towards
Customer Loyalty.

It can also be derived as the gap between customer

perception of a product and expectations

MEASUREMENT OF CUSTOMER
SATISFACTION
External
External customer feedback data
Surveys
Periodic: 40000 randomly selected customers 10000
returned, key measure tracked was the overall satisfaction
Post-installation
New-products post-installation
Blind or Competitive Benchmarking
Complaint Management System
Internal
Internal measurement process(quality and quantity measures)

CRM A STRUCTURED APPROACH

CRM aligns business processes with customer strategies to

build customer loyalty and increase profits over time.
Xerox ensured that a comprehensive strategy was in place
before embarking on a CRM framework
Implementation of Leadership Through Quality tools and
processes
Realigning organizations focus towards The Customer

CUSTOMER GUARANTEE
Guarantee is a promise about an item by the company, to sort
out any problems that may arise and is usually free of cost.
Why By making a promise towards its valuable customer,
Xerox was targeting to achieve Higher Customer
Satisfaction
To ensure market differentiation, multiple options were being
evaluated
Response Time Guarantee
Performance Guarantee
Money back Guarantee

RESPONSE TIME GUARANTEE

Why
Requirement of some Key Customers
Provides speedy resolution of common issues
How
Build skillful Services & Care department
Geographic spread across regions
& districts
Value to Customer
In-house / On-call personalized service
Bridge the technological gap

PERFORMANCE GUARANTEE
What:
Commit to customer determined level of Product and/or Service
Satisfaction.
Most preferred among Customers, reflecting maximum perceived value
How to Deliver:
If requested, Xerox shall replace with another machine of equal or
more capability @ Sole discretion of Customer
Best in-call Quality Product and Services
Guarantee + Discretionary Powers
Positives:
Organizations shift toward Total Quality
Differentiating factor among competitors
Empowerment to the Customers
Challenges:
Align Internal processes & procedures to ensure consistent Quality
Products & Services
Credibility & Believability

MONEY BACK GUARANTEE

What:
Provide customer a refund, if dissatisfied
Least preferred guarantee option, both from customers &
companys perspective
How to Deliver:
Payment Refund
Challenges:
No focus on relationship building
100% satisfaction is Unrealistic / Impractical
Credibility Low

WHICH GUARANTEE AND WHY?..

Performance Guarantee
Why:
Most preferred in the customer feedback
Relative High Importance of Reliability & Believability
How:
Best in-class Quality, Products and Services
Terms & Conditions Apply
Same or Comparable (Functionalities) Replacement
Under Xerox Service / Maintenance Contract
Value to Customer:
Builds long-term Customer Relationships
Creates a Customer-based Solution
Empowered Customer

Thank You