Class Agenda

Last class- Thanks for all the support and

learning's--- PLZ overlook all the sarcastic
comments
Only remember what will help you become a
good human being and live meaningfully
Rest of the stuff remember only till the mid
term exam- open book- open mind

Key Issues
Translating EMC platinum service levels designed
for worlds largest companies to small businesses
and B2C customers
Understanding how the replacement of physical
interaction with digital interaction affects EMC
business
Managing a VARS Business Model
Developing an ongoing measurement and
tracking system for customer satisfaction to
predict customer retention and drive CRM
strategy

Customer centricity
Customer Orientation: Customer at the center of decision
making
Value proposition and product Strategy: vetted by
customers
Selling Approach: sales people like valued business
partners-listening and joint problem solving
Market research and Customer Intelligence: knowledge of
customer needs, problems and business practices
Business practices and Processes: realigned to support
customer needs
Organizational culture and Structure: mission statement,
shifts in cultural norms and structures to support
customer centricity
Metrics and Incentives: reward customer centricity,
metrics like customer satisfaction, CLV, retention etc

Return on Investment on customer

Centricity
Dominant Market Share: 75% share of market, preferred
supplier of data storage for the worlds top companies; 98%
of firms in fortune 100 are customers
Above average Market returns from 1990- 2000 EMC stock
grew in value by over 80,000%
Increasing sales revenue revenue of $15 billion in 2009

Strong performance on Key customer centricity metrics80% sales are made to repeat customers. 99% customer
retention rate; Worlds most customer centric company 97% customer satisfaction rating

Differential CLV offers differentiated service possibilities

High CLV

Large fortune 1000 Purchasing high price high

companies
margin hardware, software
services

Looking for EMC to be

problem solver, strategic
advisor and reliable
partner

Moderate

Small Companies

Purchasing lower price, lower Looking for EMC to be

margin hardware and
problem solver and
software
reliable partner
Price sensitive

Less than
moderate

VAR solicited
Companies

Purchasing lower price, lower Relying on EMC product

margin hardware
quality, relationships
Very price sensitive
served by Dell Cisco and
others

Low CLV

Iomega Customers

Purchasing lower price, lower B2C relationship less of a

margin hardware
partnership than B2B
Very price sensitive
relationships

Complaint Handling
and Service Recovery

Customer Response Categories to Service Failures

Understanding Customer Responses to

Service Failure
Why do customers complain?
Obtain compensation
Vent their anger
Help to improve the service
Altruistic reasons

What proportion of unhappy customers

complain?
Why dont unhappy customers complain?

Understanding Customer Responses to

Service Failure
Who is most likely to complain?

Where do customers complain?

What do customers expect once they have made
a complaint?
Procedural, interactional, and outcome justice

Three Dimensions of Perceived Fairness

in Service Recovery

Components of an Effective
Service Recovery System
Do the job right the
first time

Effective Complaint
Handling

Increased Satisfaction
and Loyalty

Conduct research
Identify Service
Complaints

Monitor complaints
Develop Complaints as
Opportunity culture

Resolve Complaints

Develop effective system and

Effectively

training in complaint handling

Learn from the Recovery

Experience

Close the loop via feedback

Conduct root cause analysis

Strategies to Reduce Customer

Complaint Barriers

Service Guarantees Help Promote and

Achieve Service Loyalty
Force firms to focus on what
customers want
Set clear standards
Highlight cost of service failures
Help firm identify and overcome fail
points

Reduce the risk of purchase

decision and build long-term loyalty
A well-designed service guarantee incorporates a customer complaint and
service recovery system