Tài liệu tiếng Anh thương mại Chap003 Customer relationship management

Tài liệu tiếng Anh thương mại Chap003 Customer relationship management

CHAPTER 3: Customer Relationship Management

• From perspective of the total supply chain

– End user of product in consumer market

– Company is customer in business market

• From perspective of specific firm within a supply chain

– Intermediate customer organizations exist between the firm

and end users

• From perspective of a logistics manager

– Any delivery location

• For example, consumer home’s, retail / wholesale businesses,

Who is the customer?

• Customer needs and requirements are more basic

than products and services

• Different customers have different needs and

requirements

• Products and services become meaningful only

when available and positioned from the customer’s

perspective

Basic principles of the marketing concept

Transactional vs Relationship

Marketing

Transactional marketing is a

traditional strategy with a focus on

creating successful individual

transactions between the

company and its customers

Relationship marketing is a new

strategy with a focus on the development of long-term relations with key supply chain participants

in an effort to develop and retain long-term preference and loyalty

• Micromarketing or one-to-one marketing recognizes that each

individual customer may indeed have unique requirements

– For example, Wal*Mart and Target are both mass merchandisers

• However, their requirements to interact logistically with suppliers differs significantly

Relationship marketing to a segment of one

• One-to-one relationships can

– Significantly reduce transaction costs

– Better accommodate customer

requirements – Move individual customer transactions

into a matter of routine

• Discrepancy in space refers to the fact that the location of

production activities and location of consumption are

seldom the same

• Discrepancy in time refers to the difference in timing

between production and consumption

• Discrepancy in quantity and assortment refers to the

mismatch between customer demand and manufacturing

supply

– Customers seek small quantities and wide assortment

– Firms specialize in large quantities of a limited assortment

3 discrepancies must be overcome to enable

exchange of goods and services

Four generic supply chain service outputs eliminate discrepancies

• Spatial convenience is the amount of shopping time and effort will

be required on the part of the customer

• Lot size is the number of units to be purchased in each transaction

• Waiting time is the amount of time the customer must wait

between ordering and receiving products

• Product variety and assortment differs by supply chain

– Supermarkets may have over 35,000 items on the shelves

– Warehouse stores generally stock 8,000 to 10,000 items with only one brand

and size of an item – Convenience stores may stock only a few hundred items

• Supply chains provide a mix of services, both

generic and custom, in order to accommodate a

range of customer requirements

• Each service mix can be configured to achieve one

of the following levels of customer accommodation

• With the right amount

• Of the right product

• At the right time

• And the right place

• In the right condition

• At the right price

• With the right information

Basic customer service provides customers

Basic elements of customer service

• Fill rate measures the

magnitude or impact of

stockouts over time

• Stockout occurs when a

firm has no product

available to fulfill customer

demand

• Orders shipped complete

requires shipping everything

Availability is the capacity to have inventory

when desired by a customer

• Speed of the performance cycle is the elapsed

time from when a customer established a need

to order until the product is delivered

• Consistency of the order cycle is measured by

the number of times that actual cycles meet the

time planned for completion

• Flexibility is a firm’s ability to accommodate

special situations and unusual or unexpected

customer requests

• Malfunction recovery is a firm’s ability to

quickly implement contingency plans when a

Operational performance deals with the time

required to deliver a customer’s order

• Service reliability involves a combination of logistics

attributes beyond simply availability and operational

performance For example:

– Damage free measures how many shipments arrive without

damaged products

– Error-free invoices measures what percentage of invoices

contain no errors

– Shipment matches order measures how many shipments

contain the exact amount of product ordered

– Shipped to correct location measures how many shipments are

made to the customer’s selected location

Service reliability is a firm’s ability to perform all

order-related activities and provide critical info

• The perfect order is an order that is

– Delivered complete

– Delivered on time

– Delivered at the right location

– Delivered in perfect condition

– Delivered with complete and accurate documentation

• This requires the total order cycle performance to be

executed with zero defects

The perfect order is the ultimate in logistics

service levels

Example of zero-defect performance

measurement

• Consider an order cycle that achieves

the following performance levels for

shipments

– 97% delivered complete

– 97% delivered on time

– 97% delivered in perfect condition

– 97% delivered with correct

documentation

• Probability that any order will be

delivered with no defects is only

88.5%

Therefore, the probability that any order has a

problem is 11.5%

The basic service platform is a commitment to

perform each basic element at a given level

• Availability level = Medium

• Operational performance = High

• Service reliability = Above average

• Availability level = Low

• Operational performance = Medium

• Service reliability = Average

Service platform for customer A Service platform for customer B

Basic Service

Operational Performance Level

• Many firms establish their basic service

platforms using two factors

– Competitor or industry acceptable practice

• Minimum and average service performance levels have emerged in most industries

– The firm’s overall marketing strategy

• High service levels needed to compete on basis of logistics competency

• Low service levels are more common when competing on the basis of price

• Zero-defect approach is not taken across the

board for all customers

• Establish internal performance standards for

How much basic service should the supply

chain provide?

• Expectancy disconfirmation

states if a customer’s

expectations of a supplier’s

performance are met or

exceeded, the customer will be

satisfied

– If Perceived Performance > =

Expectations, then Satisfaction

– If Perceived Performance <

Expectations, then Dissatisfaction

What is customer satisfaction?

Customer expectations related to

logistical performance from Table 3.2

How are customer expectations

created?

The model identifies gaps managers

must fill to help satisfy their customers

– Exists when internal performance

standards do not adequately

reflect customer expectations

• Gap 3: Performance

– The difference between standard

and actual performance

• Gap 4: Communications

– Overcommitment or promising higher levels of performance than can actually be provided

• Gap 5: Perception

– Customers sometimes perceive performance to be higher or lower than actually achieved

• Gap 6: Satisfaction/Quality

– When one or more gap exists customer perception is that

• Performance that meets

customer expectations one

year may result in extreme

dissatisfaction next year

• Competition in an industry will

often raise the minimum

standards that customer expect

– For example, Federal Express

introduced real-time tracking of

shipment status

• In response UPS and other

Increasing customer expectations

• Satisfied customers may not be

happy with the supplier’s

performance

– Customer satisfaction focuses on

expectations - not customer’s

real requirements

• Considerable research

suggests that “satisfied”

customers still are likely to

Low expectations always result in

satisfied customers

But what if customer

requirements are not

met?

Level 3 Focus

• Assess customer requirements

• Extend supply chain to include our customer’s customer

• Provide value-added services for select customers

• Manage performance cycles and levels to address needs of each customer segment in the extended supply chain

Level 2 Focus

• Assess customer perceptions of satisfaction

• Manage performance cycle levels to keep customers satisfied

• Not all customers have the same

requirements

• Know your customers’ processes

• Determine how your capabilities

can enhance your customers’

performance

• Extend the supply chain

boundaries to include

next-destination customer requirements

• Introduce new performance

metrics

• Develop value-added services for

Achieving customer success requires knowledge

of individual customer requirements

Customer success requires a comprehensive

supply chain perspective

• Value-added services refer to unique or specific activities

that firms can jointly develop to enhance their efficiency,

effectiveness and relevancy

• Transportation carriers, warehouse firms and other

specialists may become intimately involved to make

value-adding activities a reality

• For example, a retail customer may desire a unique

palletization alternative to support its cross-dock activities

for its individual stores

– Each store requires different quantities of specific product to

Value-added services are a first step in

achieving customer success

• Basic principle of supply chain

logistics is that customers

should be segmented based on

their service needs

• Supply chain must adapt to

serve those segments

• Companies need

– A framework for choosing the

appropriate customer specific

strategies

Developing a customer accommodation

strategy

Framework for choosing a customer accommodation strategy using profit categories

Table 3.4 Choosing Customer Accommodation Strategy

• Customer relationship management (CRM) is a process

for improving the overall performance of a business by

better understanding and anticipating the wants and needs

of customers

– In practice companies and vendors use the term CRM to mean

different things

• One CRM example – Procter & Gamble has employees

who live and work in the city of its largest customer

Wal*Mart

• Logistics has primary responsibility for many of the

Customer relationship management has grown

rapidly in recent years

END