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As per study of Krenn & Shycon, distribution, when
provides the proper level of service to meet customer
needs can lead directly to increased sales.
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lays a critical role in maintaining customer
patronage which leads to profits in long run
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Range of Transition
Range of Transition
Sales
Diminishing
Threshold Returns Decline
Service
Surround
Quality
Delivery ^ead time &
roduct
Core flexibility
Features
roduct Delivery Reliability &
Technology
Consistency
Durability etc.
Single oint of Contact
Ease of doing business
After sales support
° ^ifetime Value of a Customer = Average
Transaction value x yearly frequency of
purchase x customer life expectancy
° Retained Customer more profitable than
new customers
° Retained Customers cost less to sell &
service
° Focus on ³Relationship Marketing´
° Means a system designed to meet defined service
goals & develop low cost logistics solutions.
° Sequence to be devised to develop ^ogistics
Strategies:
Identify customer service needs:
Service segments, research
Steps involved:
Identify the key components of customer service.