MSG Team's other articles

10668 Porters Five Forces Analysis of China Mobile

Introduction China Mobile operates in a monopoly like market in the domestic Chinese telecom sector and hence, the application of the five forces model reveals that it need not yet worry about the external environment, which is protected and heavily regulated. Having said that, as the succeeding discussion makes it clear, it cannot take its […]

11879 What is Multi Level Marketing?

Network marketing or Multi Level Marketing has caught on the fancy of people across the globe and as on date there are thousands who have made their millions through being a part of Network marketing. The success stories of such millionaires from US, Australia and UK etc are being published as a part of the […]

10440 The Need for Effective Organizational Policies on Social Media and Personal Devices

The Need for Effective Social Media and Smartphone Policies In these times, when Social Media usage and Smartphone ownership is pervasive and has seeped through all the people who are online, it is essential for organizations and the HR (Human Resources) managers to devise effective policies regulating the use of Social Media and Personal Smartphone […]

11662 Different Types of Customers

Customers play the most significant part in business. In fact the customer is the actual boss in a deal and is responsible for the actually profit for the organization. Customer is the one who uses the products and services and judges the quality of those products and services. Hence it’s important for an organization to […]

8782 Introduction to Relationship Marketing – Meaning and Important Concepts

Ask any frequent flyer and a globe trotter, who enjoys flying with and always chooses his favorite airline as to why he/she insists on using the same airline every time. The answer will be that he/she is happy with the Customer Service. The airline spares no efforts to ensure that he/she is comfortable and enjoys […]

Search with tags

  • No tags available.

Sustaining success in business is a big challenge for organizations. In order to continue to be successful and sustain leadership position, the organizations have got to keep re-inventing their service offer and the value proposition to their customers. This calls for continuous investments into R&D, creating new products and services, increasing the value proposition of the existing products and services as well as building solutions to solve customer’s problems.

Those Organizations that practice Customer Delight as their motto and work towards providing superior service to their clients every time find themselves holding on to leadership positions.

With continuous investments being made into building products, as well as into technology to improve business processes etc, you might wonder how these Companies manage to grow their revenues as well as bottom-line.

Of course, if an organizations continues to increase the service value to its existing customers, where and when do they make money?.

The reality is that the organizations look at each customer account and do not count the transactions. They look at the Account size, the increase in customer’s spend that results in increase in revenue to the Organization.

When Organizations take to solution building and offer range of basic as well as customized and value added services to one customer, the total revenue from the entire account grows substantially across all products and services. When the Organization proposes to make substantial investments into building, implementing and managing customized solution for the client, the investments are always made on long term recovery basis and the Organization stands to benefit from building long term revenue stream.

In case of projects where the Organizations stand to invest into infrastructure and capital equipment etc, the financials and ROI are worked out to reflect an independent balance sheet with costing drawn up with Cost Plus approach with fixed percentage of profits.

More over the cost of finance too is included in the costing and in most cases, the project costs are also recovered separately. Thus, the Organization stands to gain on all fronts from investing into a long term client and building customized solution on long term basis.

The above example can be illustrated very clearly in the case of the partnership between Xerox and Airborne Express. Airborne Express worked with Xerox team to build a dedicated spare parts delivery service.

Xerox has a committed delivery schedule for servicing customer complaints. To ensure that Xerox engineers complete the servicing and repair within the committed time frame, Xerox has got to ensure that the spares are shipped out of the warehouse to all parts of the country and delivered to the engineers before 10 AM to enable the engineers to leave in time to start attending to their calls.

By working together with Xerox, Airborne express worked out systems and processes whereby it could pick up the parts on normal collection at PM time as well as collect a late night shipment that could service the late evening part requests.

The critical shipments are delivered to the engineers on the field while the bulk spares are delivered to Xerox offices.

Each Airborne delivery guy in charge is aware of the delivery commitment and is always in contact with the office co-coordinating and making sure that he connects the right part with the right engineer in time.

The Xerox parts were packed in tailor made packing cartons that make the identification easy and carried priority tag/label so that each and every handler in the logistics chain knew of the urgency and commitment.

Going forward the solution also explored managing parts inventory by Airborne and thereby give huge cost benefit and savings to Xerox in the process.

The overall scope of the solution included total spare parts inventory management, parts order management, shipment, documentation, courier and door delivery within the committed time frame followed by updation of the website for Proof of Delivery and generation of reports.

By building the above solution, Airborne express not only managed to secure long term courier business with Xerox, but could build new products and services as a part of the total solution. They gained expertise in warehouse management and other supply chain areas.

Going forward, Airborne express can also extend its partnership with Xerox to manage their inbound freight as well as outbound freight of finished goods etc.

By maintaining excellence in customer service, the Organizations can expand the scope of their business with just one client and build deeper and long lasting revenue streams and stand to gain in terms of knowledge and experience which can then be used to replicate with new clients as well.

It pays to be customer driven and customer oriented. Leadership organizations are experts in customer relationships.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles