Fulfilling the Offer & Serving the Customer Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. Chapter 9

Please Note: Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Opening Vignette DuPont Building Innovations, DuPont Corian Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Fulfillment Fulfillment – the act of carrying out a customer’s expectations Delivery of products and information Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Traditional Fulfillment Standards 1. Orders should be shipped within hours of placement % of the products should be available in the warehouse. 3. Customer refunds should be processed within 72 hours % of all telephone calls placed to the organization should be received without a holding delay. 5. Customers should receive a response to inquiries within a week. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

The Six Steps In The Fulfillment Process 1. Offer 2. Response 3. Processing 4. Shipping 5. Billing 6. Customer Service Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Fulfillment Options In-House Fulfillment Integrated Order Fulfillment Outside Fulfillment Centers On-Line Fulfillment LET’S DISCUSS EACH ONE… Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

In-House Fulfillment Company handles warehousing and order-processing functions at its own distribution center In-House Warehouse Process Integrated Order Fulfillment Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Integrated Order Fulfillment Based on the idea that the process of building & delivering products should not begin until after an order has been taken. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Outside Fulfillment Centers Direct Marketer out- sources their fulfillment operations to third- party fulfillment centers or on-line fulfillment providers. Advantages & disadvantages exist. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

On-Line Fulfillment E-Fulfillment- the integration of people, processes, and technology to ensure customer satisfaction before, during & after the on-line buying experience E-Commerce organizations have sometimes lack ed the needed focus & emphasis on e-fulfillment Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Delivery Options Multiple channel distribution options USPS First-Class Mail Periodicals Standard Mail Special Mail Services Alternative Delivery Systems Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Common Sources Of Fulfillment Problems Accuracy of the Order Package Presentation Speed of Delivery Stock Availability Return Processing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Ways To Avoid Fulfillment Problems Paying Attention to Packaging Slips Including a Toll-Free Number Hire a Well-Trained Customer Service Staff Establish Quality Control Measures Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Call Centers A call center is a dedicated team supported by various telephone technological resources to provide responses to customer inquires Telemarketing activities can be carried out via call centers in a variety of ways: Within the company(in-house) Outside of the company(calls are made by a teleservice outsourcing firm) a combination of both methods Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

In-House Call Centers Advantage-the degree of control the company has over the telemarketing operations Disadvantage-time and expense of training the telemarketers and large financial burden “Call-abandonment” is the number of callers that hang-up before being serviced by a telephone sales representative Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Outside Call Centers Advantages Low initial investment Fixed operating costs Quick start up Time Flexibility Disadvantages Lack of direct control Lack of direct security Lack of employee loyalty Mass-market approach Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Customer Satisfaction Defined Customer Satisfaction- the extent to which a firm fulfills a consumer’s needs, desires, and expectations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Importance of Customer Service Customer Service Level- how rapidly & dependably a firm can deliver what the customers want * Customers don’t care about what happens behind the scenes. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Customer Relationship Management (CRM) CRM- a business strategy to select & manage customers to optimize value Main purpose: to build and maintain better customer relationships CRM is “the big picture” Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Evaluating Customer Satisfaction Pretending to be Customers - file complaints w/ the organization under a fictitious name Surveys - periodic follow up surveys - should only be a few questions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Keeping Customers Happy* 1. Remember: the customer is always right 2. Don’t promise something you cannot deliver 3. Inform customers how to return products 4. Inform customers about how to complain 5. Test your own service 6. Date and record all customer correspondence 7. Investigate competitors’ offerings regularly 8. Exercise care in billing and collection *Stanley J. Fenvessy, Direct Marketing Manual Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Examples of Good Customer Service SubmitOrder.com Harry and David Lillian Vernon Corporation *The key is keeping customers happy. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Case Study FLOWERS.Com Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.