APEC OVOP Training Workshop on e-Commerce 20-24 August 2007, Chinese Taipei Customer Care & After-Sale Services Arnold Chao, Ph.D., MBA Partner, e-limit bunch inc., Canada firstname.lastname@example.org 1Slide 2
Agenda Introduction A Framework for E-Commerce Services Issues & Opportunities After Sales Services Strategies Customer Care Strategies Cases SummarySlide 3
Introduction Scope Objectives 3Slide 4
Scope Supplier Intermediary Customer/Consumer FocusSlide 5
Objectives To audit the business issues & opportunities identified with client care & after deals administrations in connection to e-trade To talk about comparing business procedures being executed to address the issuesSlide 6
A Framework for E-Commerce Services 6Slide 7
A Framework for E-Commerce Services E-business Provider – Customer/Consumer Contact Acquisition Conversion Sales Retention Deletion Activation Customer Care After Sales Services/SupportSlide 8
A Framework for E-Commerce Services E-business Provider – Customer/Consumer Contact Visitors Acquisition Potential Customer Conversion New Customer Sales Customers Retention Customers-Profitable Deletion Customers-Unprofitable Activation Customers-Inactive Customer Care Customers After Sales Services/Support Customers-ProfitableSlide 9
A Framework for E-Commerce Services Customer Life Cycle MatrixSlide 10
Issues & Opportunities 10Slide 11
Issues & Opportunities Customer Care & After Sales Services are getting to be expanding more vital as: Sales development and number of clients keep on increasing exponentially yet points of confinement will be come to. Expanding rivalry for piece of the pie No. of dynamic US web customers anticipated that would top at around 161 million by 2010. E-trade suppliers need to give careful consideration to client maintenance.Slide 12
Issues & Opportunities A Recent Survey CEO demonstrated top needs for B2C: Acquiring new clients - 53 % Increasing client devotion and maintenance - 49% Increasing income from current clients - 49% Increasing client administration abilities - 39%.Slide 13
Hi Cost of Acquisition Cost of Retention Lo Hi Service Level Issues & Opportunities Economic Issues from Providers " PerspectiveSlide 14
Issues & Opportunities From Customers " Perspective Meet/surpass needs/needs Receive a charming background From Providers " Perspective Increase rehash deals Increase cross deals Increase deals/client Increase general gainfulnessSlide 15
After Sale Services Strategies 15Slide 16
After Sales Services Strategies What do clients need/need? After deal administrations Confirmation/Payment Tracking conveyance (Fedex, UPS, Dell, … ) Return/discount Repair/Recall Product data Sales versus Marketing Technical bolster How to meet those needs/needs?Slide 17
After Sales Services Strategies What one retailer does? Trigger occasion 1: Customer first registers nearby (however does not purchase). Trigger occasion 2: Customer first buys on the web. Trigger occasion 3: Customer does not buy for a developed periodSlide 18
After Sales Services Strategies Trigger occasion 1: Customer first registers nearby (however does not purchase). 2 days after enlistment email sent offering telephone help and £ 5 markdown off first buy to empower trial.Slide 19
After Sales Services Strategies Trigger occasion 2: Customer first buys on the web. Prompt request affirmation 5 days after buy email sent with connection to online consumer loyalty study getting some information about nature of administration from driver and picker (e.g. thing quality and substitutions). Two-weeks after first buy - Direct mail offering tips on the best way to utilize administration and £ 5 markdown on next buys proposed to support re-utilization of online administrations. Non specific month to month e-bulletin with online selective offers empowering cross-offering Bi-week by week caution with customized offers for client. Following 2 months - £ 5 rebate for next shop Quarterly mailing of coupons empowering rehash deals and cross-dealsSlide 20
After Sales Services Strategies Trigger occasion 3: Customer does not buy for a broadened period Dormancy distinguished – Reactivation email with study of how the client is finding the administration (to recognize any issues) and a £ 5 motivating force. A further rebate motivating force is utilized as a part of request to urge proceeded with use to shop after the principal shop after a break.Slide 21
Customer Care Strategies 21Slide 22
Customer Wants/Needs Basic Security Privacy Relevant data A Pleasant Experience Personalized/modified administrations (profile, buy/conduct design, one of a kind prerequisites … ) Navigational help capacity Effective webpage and general inquiry ability FAQ Non-meddling cross offeringSlide 23
Customer Wants/Needs (cont\'d) Additional Services E-mail bolster Telephone bolster Product following Feedback Sales/advancements Innovative New Services Discussion load up Social systems administration Live talk evoked when a customer deserted a truckSlide 24
Customer Wants/Needs (cont\'d) A Single Interface to: Account administration Marketing & Sales administration Sales Customer bolster Technical AssistanceSlide 25
Channel Integration Technical Implications Tightly coupled connections in light of between associations Integration between e-business and back-office emotionally supportive networks (Closer incorporation of CRM, ERP, SCM)Slide 26
Market Segmentation Differentiation by: Profitability Demographic profile (sex, age, wage level, calling, … ) Behavior and Geographic profile Customer life-cycle (new guest, returning, continuous guests, first time buyers, consistent buyers, torpid buyers, … ) Mode of landing (direct, web index, alliance, interpersonal organizations, … ) Behavior (prompt leave, irregular meandering, time/ventures to-achieve target, … ) Journey (contingent upon decisions, profile, … ) Purchases (classifications, cost, recurrence, … ) FeedbackSlide 27
Market Segmentation Co-connection of the above Click-through rate on a message Conversion rate to cite Customize administration in view of equalization among Cost of administration Profile of needs/needs Profitability Customer profile and buy history Real-time alterationsSlide 28
Customer Care – Dell Computer Background One of the best e-trade organization – 1 st organization to reach $1 Billion in online deals Source of benefit B2C 15% B2B 85% (servers, stockpiling items, system switches & administrations) No brokers 4 days of stock & plant direct shipment Offering clients decision & control (request following) Challenges Saturated business sector of online purchasers Not ready to reach non-web purchasers Increasing rivalrySlide 29
Customer Care – Dell Computer Critical Success Factors Provide Customer with control - request following Customized administrations B2C station B2B station/Premium Interface/Value included administrations Integrated front and back end (SCM) for speedier conveyance, end of go betweens and minimizing stock Product techniques Customized item equipment & programming Service choices Additional product offerings for cross offering (stockpiling, printers, TV,… )Slide 30
Customer Care – Dell ComputerSlide 31
Customer Care – Amazon.com Background One of the best e-business organization Critical Success Factors Know its client Culture of measurements (knows and investigations each move, snap, and jerk of the mouse) " Not what do we know yet what would we be able to do about them " More decisions & data (look inside, administration inside) Trust Value included administrations (list of things to get, wedding registry, infant registry) Challenges Competition conventional Competition non-customarySlide 32
Customer Care – Amazon.comSlide 33
Customer Care – Amazon.com Personalized interface taking into account history New discharges Top venders Merchandizing Recommendations Information showed in light of inclinations and not on instinct With spotlight on cross-offering Affiliate Programs brings extra valuesSlide 34
Customer Care - Nikon Customized Customer Care - Nikon Background Manufacturer of top of the line and expert quality cameras, lenses, and other optical items (Revenue - $5.9 billion) Sales through particular merchants Issues/Opportunities Trend towards computerized cameras with various client base Increasing rivalry in elements and estimating and rate of progress, and diminishing client dependabilitySlide 35
Customer Care - Nikon Customized Customer Care - Nikon Customer Services procedures Emphasis on consistency and velocity of reaction E-mail reaction to client questions has gone from 80 to 20 to 5 hours.Slide 36
Summary 36Slide 37
Critical Success Factors Think like clients & Understand clients " esteem framework Ease of utilization Choice Control Trust & security Optimize over the aggregate quality chain Partnerships Market place AffiliatesSlide 38
Critical Success Factors Presenting & keeping up a solitary perspective to client Personalization/Customizing for high esteem clients Joint advancements with the most significant clients Monitoring consumer loyalty Greater incorporation/interconnection: B2C - CRM Other inward frameworks (e.g. Account, Inventory Control) SCM - B2B
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