RWCD1036 - Customer Service

Primary Expectations

a customer's most basic requirements from the purchase of a product

Electronic Data Interchange (EDI)

direct computer-to-computer interchange of standard business forms that gives customers direct access to shipment and billing information

Secondary Expectations

enhancements to primary expectations based on a customer's previous experiences

Breakthrough Team

groups of railway employees from different departments who come together to analyze and solve specific customer problems

Why is it important to manage customer expectations? (2 things)

to control costs and maintain a positive long-term relationship with a customer

Five benefits/services of EDI available online for customers

1) Automated car locator 2) Automated notifications 3) Automated ordering and billing 4) Automated payment of accounts 5) Automated car ordering, switching instructions

Cost benefit analysis

(Benefits of customer service programs to retain customers) / Annual Cost of customer service program to retain customers)

Customer Life-time Value

(yearly profit from one customer) x (average customer life in years)

Impatient Customers

- act quickly, respect their time, ask to consider more convenient time for service

Special Needs Customers

- be alert, recognize early; special attention, special training may be needed

Older Customers

- be patient, show respect

Immature Customers

- firm and consistent in applying policies and procedures

Superior Customers

- humility, defer to them

Talkative Customers

- polite excuse at opportune time

Noncommittal Customers

- pressure gently

Who are shippers (consignors)? Who are consignees?

- purchase rail transportation and related services to transport goods to their customers (consignees)

"Just-in-time" service

- railway delivers goods only when needed - external customer reduces their costs for storing and handling inventories - helps railway mange its fleet efficiently - reliability of on-time delivery becomes crucial

Language / Cultural Barriers

- speak slowly, clearly, be patient

Angry customers

- stay calm, ask them to explain their problem

Analytical customers

- take time to give/get them info they need

Five common needs of railway customers

1) A fair price for service 2) A firm commitment to delivery dates 3) Proactive communications 4) Total quality 5) Value-added service

Three conditions necessary for effective co-production

1) Activity creates some partnership between customer and service provider (doesn't just reduce labour costs for business) 2) Customers have necessary tools to participate 3) Customers understand their role (their limits) in the process

Five ways businesses can exceed customer expectations

1) Become familiar with customers 2) Ask customers what their expectations are 3) Tell customers what to expect 4) Live up to expectations 5) Maintain consistency

Eight techniques railways use to provide value-added service to customers

1) Customer Surveys 2) Customer Profiles 3) Breakthrough Teams 4) User-friendliness 5) Interline Cooperation 6) Truck-Train Cooperation 7) Dedicated Trains 8) Fast Car Return

Two reasons co-production is effective

1) Customers take degree of ownership in service process 2) Customers stay occupied, do not feel they are waiting for someone else

What are two ways the railways provide value-added service?

1) Dedicated departments and personnel (customer service department; railway representative) 2) Providing seamless service

Six steps to manage customer expectations (to develop and offer effective customer service)

1) Define an appropriate level of customer service 2) Develop a customer service strategy 3) Develop effective customer service programs 4) Provide necessary resources (human and financial) 5) Train and empower employees 6) Monitor and evaluate results

Four technologies for delivering customer service

1) Email 2) Call Centres 3) Customer Service over the Internet 4) Automated telephone systems

Four characteristics of Call Centres

1) Extended operating hours 2) Easy customer access (e.g. toll-free number, e-mail) 3) Professional customer service providers 4) One-stop customer solutions

Four examples of Internal Customers

1) Information Technology Services 2) Maintenance-of-Way employees 3) Training Department 4) Protection/First-Aid

Six techniques for handling difficult customers (LASSIE)

1) Listen 2) Ask questions 3) Show empathy 4) Solve the problem 5) (Initiate) Follow-up 6) End on a positive note

Six examples of customer services delivered via the Internet

1) Product and Service Information 2) FAQs 3) Owner manuals 4) Parts catalogues 5) Technical service information 6) Account Information

Five ways to avoid creating challenging customers (DARTS)

1) Respect the customer's Time 2) Do not impose a bad mood on them 3) Recognize regular customers 4) Avoid negative or destructive comments 5) Show initiative

What three customer needs can customer service satisfy?

1) Service 2) Action 3) Appreciation

Five basic needs of customers

1) Service 2) Price 3) Quality 4) Action 5) Appreciation

Five ways customers can contribute to improved rail services

1) Track/Monitor shipments online to free up customer service representatives 2) Provide timely, accurate bills of lading 3) Provide accurate forecasts of equipment needs and shipments 4) Help railways find solutions to transportation problems 5) Provide feedback and suggestions

Two ways AEI benefits customers

1) faster, more accurate deliveries 2) easy access to location/status of shipment

Four ways AEI benefits the railway

1) portable car readers allow employees to check cars as cars enter the yard 2) tracking cars increases accuracy and speed of train movements 3) reduces amount of paperwork 4) used to inventory and order cars

Six examples of primary railway customers

1) producers (agriculture, minerals, forestry) 2) manufacturers (automotive, electronic) 3) other transportation modes 4) other railways 5) people (passengers) 6) general public

Three reasons retaining customers is good for business

1) provide on-going source of revenue 2) require little effort to "re-sell" each time 3) testimonials: positive promoters to other potential customers

Eight factors used to negotiate contract rates

1) volume of business 2) cost of transportation 3) type of equipment needed and its availability and ownership 4) degree of competition 5) market considerations 6) customer status 7) destination, desired arrival time 8) type of good (e.g. dimensional loads)

Out of 25 dissatisfied customers, _____ will complain. Of the remaining, each will tell _____ other people about their dissatisfaction, resulting in ______ people who will now not likely be customers.

1; 15; 360

Whose job is it to provide customer service?

Every employee

Eight examples of customer service

Hassle-free customer policies and processes One-stop solutions Courtesy Follow-up Availability of Information Access to Information Action dealing with inquiries and problems Personal attention

Defection Rate

Number of customers lost in a year divided by the number of customers at the start of the year

Churn Rate

Number of customers lost in a year divided by the number of new customers acquired during the year

Shipment Tracing

The activity of determining a shipment's location and status

Customer Retention

The continuous attempt to satisfy and keep existing customers

Customer Satisfaction

a person's evaluative feeling, or feeling of contentment, which results when s/he compares the actual performance with his/her expectations of how the product would satisfy his/her needs and wants

Customer Value

a person's perception of the amount of satisfaction which s/he obtained from the purchase (and consumption) of a product in relation to the cost (money and effort) expended to obtain it

Call Centre

a single electronic contact point between customer service providers and customers

Customer Service

anything that enhances the experience and satisfaction of a customer when they purchase a product

Co-production

customers participate in providing at least a part of their own service

Challenging Customers

customers with problems, questions, fears, and personalities which require customer service providers to work harder to achieve customer satisfaction

For the railways, is service reliability (reliability of delivery) part of the product, or customer service?

part of the product

Internal Customers

people and departments within an organization that depend on others for the information and services they need to perform their jobs

Total quality

price, consistency, responsiveness, convenience, reliability

Reputation Management (2 components)

process of (1) identifying how well a business is perceived by its customers and (2) creating and implementing plans which correct, maintain, or enhance the reputation of the business

Managing Customer Expectations (3 steps)

process of understanding (1) what customers want, (2) knowing what level of customer service is necessary to be competitive, and (3) communicating clearly to customers what they will receive

Empowerment (three things)

providing employees with the knowledge, skills, and appropriate level of authority necessary for them to produce satisfactory customer solutions

What three things do customers expect?

quality, service, and value

Automatic Equipment Identification

technology for tracking railcars using RFID tags mounted on the sides of railcars that are read by wayside scanners as the cars pass by

Cost of a Lost Customer

the loss of future profit which a business would have realized if the customer had been retained

External customers

those who purchase the product which is produced by the business