Scandinavian Airline Systems - Understanding Customer Service

Understanding customer service

Post-module assignment

Content

Moment of truth ------------------------------------------------------3

Introduction -------------------------------------------------------------------3

Customer satisfaction---------------------------------------------------------------------------------------3

How to implement MOT------------------------------------------------------------------------------------4

Conclusion ----------------------------------------------------------------------------------------------------4

High level -----------------------------------------------------------------------------------------------5

Introduction ------------------------------------------------------------------------------------------------5

Customer service -----------------------------------------------------------------------------------------5

People level ----------------------------------------------------------------------------------------------------6

Process level ---------------------------------------------------------------------------------------------------7

Organization level ---------------------------------------------------------------------------------------------8

The relationship between customer service and company performance -------------------------9

Conclusion-------------------------------------------------------------10

Bibliography-----------------------------------------------------------11

Moment of truth

Introduction

Jan Carlson, president and CEO of Scandinavian Airline Systems (SAS), is credited with popularizing the term "moment of truth." The first time customer contacts with the front-line staffs in the fifteen seconds. This short period of fifteen seconds, determines the company impression in the minds of their customers. (Moment of truth, 2001)

Customer satisfaction

Customer service is very important for any of companies, and it is also difficult for company to achieve. There are four key goals for company to achieve: customer satisfaction, achieve higher customer satisfaction than competitors, retain customer for the long haul and gain their market share. People are very care about their first feel, see and say. 'The moments of truth that occur in a any conversation practice are no less important to your image and customer' satisfaction' (Moment of Truth', 2001)

The moment of truth may be will decide the new customer become the old customer in many of companies, especially in service companies. Every single moment contact with customer is called moment of truth, it is showed from employee's appearance, behavior and communication. The percentage share from these three factors gives customer first impression is 55%, 33% and 15%, these are also important factors for customer loyalty and customer satisfaction. (moment of truth, 2010)

There are some anticipated benefits for the company from the moment of truth.

Firstly, training staff, through the full MOT training program to enable staff take more customer care from their heart and improve staff have more ability to do their job.

Secondly, standardization of service quality, improve service level and reduce dissension. Thirdly, improve operation efficiency, to assist front-line staff quickly responses to customers in the first time. Fourth, increase relationship, in the service process, staff does a good marketing to customers in individual and their personal relationships can be extended.

How to implement MOT

1) Decentralization

The key to implement MOT is to make a correct decision in the best understanding of information from customer. In fact, the implement of service is often made by front-line employee, not by manager and senior manager who is sitting in the office. Someone have make decision level is far way from first line service, they cannot adjust customer's need in first time, so the company need empower staff is necessary in front-line service.

2) Trust

The front-line staffs are trusted by senior management level, the manager should confidence about their staff ability to work. This will require training and communication with staff, in addition to changing the concept of employees, but also to train staff resourcefulness to response any occur moment. Hence, the front-line staff can provide proper solution to the customers and make them satisfaction.

3) Innovation

The MOT is advocated by new innovation in service customer, its core concept is shift from products to customers. Under the full competition environment, the company need repeat customers and their good word of mouth. The marketing position, management system and corporate culture can be adjusted and innovated around provide satisfaction customer service.

Conclusion

At last not the least, Moment Of Truth is a concept of management model, and it has enormous influence in service sector. Moment of truth is happened in any single time, each moment will decide the company's image and their relationship with customers. If the each 'moment of truth' is positive when the staff contract with customer, the customer will feel warmer and become loyal, they will tell their friends and any relative people to buy the products and service of the company, and help the company to create more profit.

High Level

Introduction

A supply chain management all the activities associated with moving goods from the raw materials stage through to the end customer. (See the table 1 as below) Integrated SCM focuses on managing relationship, information, and material flow across organizational borders to cut costs and enhance flow, especially focuses on customer service. So offer high levels of service to customers to enhance firm's performance. Hence, company not only manage relationship with partners