Quality Customer Relations for Dual SIM Cellphone - Assignment Example

?SOUTHERN INSTITUTE OF TECHNOLOGY National Certificate in Small Business Management Assignment 2 UNIT STANDARD 6406 (Version 4) Establish and maintain quality customer relations for a small business enterprise Level 4 Credits = 5 Name: Student ID: Date submitted by student: Date received by facilitator: Given brief: • As per each question • Assessment should be presented as a written assignment List your references at the end of this assignment, and acknowledge any quotations and authors’ opinions that you use. Official use Outcome: Date: 1 SOUTHERN INSTITUTE OF TECHNOLOGY National Certificate in Small Business Management Assignment 2 Assessment 2 Note: This assignment should be based on the business that was the subject of your business plan for Assessment 5. 1. Research customer needs and preferences a) Briefly outline what your business does, what your products and services are, your target market and how your business operates on a day to day basis. Our company sells a dual SIM handheld mobile device that can go online simultaneously. This celphone has also the functionality of T.V. and is capable of running video games in JAVA. It is coupled with a service center that could also serve as an after sales support if our customers will have an issue with their phones. The primary market for our celphones are the business people and professionals because they are the heavy users of mobile phones and needs to be connected all the time. We believe that our dual SIM celphones will be attractive to them, as market research showed, because they have the convenience of dual connectivity without the inconvenience of carrying an extra phone. We will sell our dual SIM celphone through our outlets located strategically in technology hubs where potential customers frequent to avail a celphone. Daily operations involves selling our dual SIM celphones, entertaining inquiries and complaints and servicing defective celphones. b) Part A: Identify the types of formal and informal research and communication channels you will use to identify customer needs and preferences. Ensure both quantitative and qualitative data are obtained. Explain how the research will be carried out. Type of research How will it be carried out 1. Survey 2. Market Research 1. Select randomly from the representatives of the market through a form of a questionnaire where such market samples will be asked for their inclination towards a dual SIM celphone. Answers will then be tabulated to determine if indeed the market has an inclination towards our products. 2. To determine the extent and size of the market, a market research has to be done to determine the celphone usage which will serve as our market. The rate of celphone usage will determine the size of our market. The data of the number of celphone users can be done by collating data from the mobile phone carriers. Part B: Collect and analyse the data Findings: Formal research: The answers from the survey will be tabulated to determine our hypothesis that there is a market for a dual SIM celphone. The survey conducted indicated that the market is willing to try a dual SIM celphone and this willingness to try a dual SIM celphone can be cultivated from a growing to a full market to sell our phone. Informal research Our market research indicated as there is almost 100 % subscription to mobile telephone carriers (Vodafone: 2,465,000 (46.71%), Telecom:  2,192,000 (41.54%), 2degrees: 580,112 (10.99%). Deducing from this, it means that we have a huge market for our dual SIM celphone as almost everybody are celphone users. If we can capture enough market share to this mobile users, our business venture can prove to be profitable. SOUTHERN INSTITUTE OF TECHNOLOGY National Certificate in Small Business Management Assignment 2 Communication channels: The communication channel will be in a form of the traditional pen and paper where data will be collected by asking market representative to answer the survey objectively. In the case of informal research, this can be done by obtaining annual performance reports from mobile phone carriers where the number of their actual subscribers are indicated. These subscribers will be our potential customers. c) Explain how the findings will establish customer needs and preferences and be used to differentiate them for your target customers as well as identifying specific product and/or service requirements. The findings of the survey and market research will provide us two important information about the market. The survey will validate our hypothesis that heavy celphone users will find a dual SIM celphone attractive. The numbers tabulated will support our initial market hypothesis and establish that there is indeed a need and preference for such dual SIM phones. We can also capitalize this information by offering specific type, design or style of our dual SIM celphone to a particular segment of the market. For example, survey showed that on age group 30 to 50 years old, they prefer a no-nonsense type of celphone that looks business like. On the other hand, the age group 15-25 indicated that they prefer a stylish celphone with flamboyant colors. By knowing this particular market preference, we can differentiate market preference and position our dual sim celphones strategically according to the specific configuration of the market that showed a preference for specific type of phone. d) Comment on how diversity factors (such as gender, disability, culture, age, sexual orientation, family status, religion, and equal employment opportunities) and marketing and advertising methods will be considered in relation to customer needs and preferences. For the type of product that we sell, the most significant factors of diversity are gender and age. These two factors have something to do with customer preference to our product in terms of style, color and functionality. For example, a specific gender will be more receptive to flamboyant colors like the female and younger age bracket market while the male market would just want their celphones to be just plain black. Age group also is a determinant of what configuration of the phone will be more preferable. For younger age group, they are more partial to style while the older age group prefers simplicity of functionality. Marketing and advertising has to be customized also according to the specific segment of the market. If we are promoting our stylish dual SIM celphone, then we should direct our marketing effort towards the younger age group with an advertising that is appropriate for their age. If we are promoting a functional dual SIM celphone, then we should target the older age group to cater to the specific need of a market. 2. Customise products and/or services to meet requirements a) Explain the processes you would follow to review customer requirements for proposed products and/or services, assess any modifications and identify those the business will adopt. Customer feedback is an ideal way of determining the specific requirement for products and services of a particular market segment. In the case stated in the previous question, product positioning should be aligned according to a specific market preference. Stylish and colorful celphones for example can be offered to the younger age group while functionality can be offered to the older age group. When it comes to customer service, different age group may have a different preference of the type of a customer service. The younger age group may prefer a pleasant customer interaction while the older age group especially the business people may prefer dispatch and immediate result more than customer interaction. Such, positioning of products and approach of customer service must be tailored according to the specific requirement of a market. 3. Monitor customer satisfaction with products and/or services provided a) Show what steps will be taken to identify customers, obtain customer feedback and analyse customer satisfaction with the products and/or services provided. To be able to determine customer satisfaction, a Customer Satisfaction Survey must also be implemented for us to have a pulse on how our customers are taking our products and intended service. The information collated from this survey will also provide as an opportunity to identify areas that does not meet customer’s expectation and have the opportunity to address and apply remedial measures in the identified Areas for Improvement to keep our customers satisfied with our products and service. To monitor customer satisfaction and ensure the consistency of our quality service that will exceed customer expectation, a Quality Assurance Team must also be set up. This will ensure that the frontliner’s performance is aligned according to the company’s specification of service. This will also provide the company an opportunity to easily determine areas of improvement internally with regard to customer service that could undermine customer satisfaction and will also enable us to apply remedial measures to make quality customer service consistent in all areas and keep our customers satisfied. b) Summarise a relationship marketing policy the business will adopt in order to build long-term customer loyalty. Main features of the policy How does it build long-term customer loyalty? 1. Customer is King. 2. Customer Service Second to None. 3. Customer Satisfaction Guaranteed. 1. Through this abbreviated policy, all members of our organization will be able to internalize to value the customers that will keep us in business. And all our actions in the company will be directed towards the satisfaction of the customer that will keep us in business and develop customer loyalty. 2. We realize that our products have direct competitors. Such, we will differentiate through a customer service second to none that will keep our customers coming back. 3. We make a bold claim to guarantee customer satisfaction to impress to our customers that we mean business not only in meeting their expectation but exceeding it as well. 4. Develop customer service strategies for maintaining quality customer relatios a) Explain the steps the business will take to establish and monitor products and/or services so they continue to meet customer expectations and needs. A benchmark or a standard of a Quality must first be established. This will guide the Quality Assurance Team when they conduct quality assurance audit among the frontliner’s and in all areas of operation. A tool must also be developed to measure actual performance compared to performance desired. The regularity of quality audit must be established. A system audit must also be implemented to ensure that the business structure supports an excellent customer service environment for the company. For example, to ensure that customers will not wait due to non-availability of stocks, inventories must also be audited to ensure that our products will be available when the customer wants it. The result must be tabulated and reported to the General Manager and Department Heads concerned. This will keep the whole business structure to be on their toes knowing that their performances are objectively measured. This will also provide an opportunity to apply remedial measures to Areas that needs Improvement and realign performance according to the set company standard of quality. How do these take into account design, serviceability and pricing? Design The designs of the dual SIM celphones are already constant because it is the suppliers who decides the design and we merely distribute and sell it. Serviceability The above mentioned steps to monitor our products and services that are intended to meet customer’s expectations will not significantly affect our pricing for it will just streamline our process to be responsive to customer’s needs. Part of this streamlining process is the serviceability of our dual SIM celphones through the other business which is the Service Center. Pricing If the defective celphones are still within warranty, we can replace them and just pass the defective phone to the supplier. If it just needs to be repaired, we can have them repaired for almost no cost because we already have a side business of such nature. This will have very little impact on pricing a) Comment on the intangible benefits and no cost methods that will be adopted to provide quality customer service. The cliche “it doesn’t hurt to be nice” always works especially on our customer service representatives who interact with our customers. They are the face of the company to the customers and as such, it is imperative that they should always maintain a pleasant disposition toward the customers. This is a personality disposition and it will not cost anything to the company if its frontliners’ will just be nice to customers. Being prompt in service can spell a big difference towards customer satisfaction. Customer’s does not like to wait and if our frontliner’s will just do their job with dispatch, customer satisfaction that will induce customer loyalty will just naturally follow. It is important to note that it will cost six to eight times more to attract new customers than to retain them. At times, it does not even cost anything to retain a customer. Being nice and pleasant to customers does not cost anything to keep. Such, we should not pass any opportunity to be nice to our customers. c) Summarise how the location of the business is influenced by distribution factors. Location is influenced by distribution factors because it is important to link every aspect of the supply chain from sourcing, procurement, order fulfillment, inventory, transportation to distribution as it will determine not only the responsiveness of our company towards the customer’s needs but also its efficiency on how it makes its products will be made available to the customers that will ultimately determine its competitiveness (Baker, 2005). “From the customer standpoint, it will provide useful and actionable information and services can reduce confusion, improve the consumption experience, and deliver high-quality options that they might have not been aware of” (Rao & Minakakis, 2004:1). How are these developed and monitored to ensure quality and customer service is enhanced? Effective distribution of our products and service in our elected location can be developed and monitored by creating a process that will enable us to identify lapses that could undermine our effectiveness in distribution. By identifying lapses in the chain, we will be provided an opportunity to apply remedial measures to rectify and improve our distributorship. This can be furtherly enhanced by integrating process effectiveness in the Quality Audit. Through this, we will be able to monitor if our distributorship process supports an excellent customer service environment that retains a customer. d) Outline the promotion strategy that will be followed so your customers are aware of the quality, customer service features and benefits of your products and/or services. Since our product differentiate itself from other celphone products with its dual SIM functionality, we should select a promotional strategy where we can highlight its advantage over competition. In the formulation of marketing strategy, cost must be considered because the company is still in its infancy and cannot allocate much for an expensive advertising effort. Such, we should employ promotional strategies that is targeted to our specific market. In the case of our dual SIM celphone, the ideal channel to convey to our target customers the quality, functionality and after sales support would be through trade journals and community newspapers close to our outlets. This is being considered because trade journals caters to business people who are our primary customers while community newspapers can attract customers which are near to our outlets to check and try our dual SIM celphones. e) In developing your customer service strategies and quality standards, how will effective communication and monitoring of service and quality levels throughout the enterprise be handled internally? In developing customer service strategies and quality standards, effective communication among team members is essential in the formulation of Key Performance Indicators (KPI) that gives an indication on how an internal process is working to support a customer service environment that meets customer expectation. Effective communication is also important in the monitoring of quality standards for the quality standard to be adhered to. This can be handled by cascading the intended standard not only through manuals and internal communications (example memorandum) but also by integrating it in the training and retraining of employees. Through this, the level of quality that the company intends to achieve will be ingrained in the value system of the employees that will translate in the greater value system of the company. A Customer Satisfaction Survey must also be crafted indicating the internal drivers that has an impact to the customer. How will this provide for direct input from customers? In the formulation and development of quality standards and determination of Key Performance Indicators, team members must be encouraged to choose KPI’s that measures the impact on customers (Brooks, 2001). These KPI’s that has an impact to the customers can be furtherly substantiated and validated if a Customer Satisfaction Survey will be conducted. This survey will serve as a direct input from the customer on how to enhance the quality of the customer service. f) Show what steps will be taken to ensure your products and/or services meet all legal requirements and local body regulations. In your answer identify any legislation or regulation specific to the operation of your business. To ensure that the operation of the business, its products and services meets all the legal requirements and regulations, a thorough review of the law that governs and regulate our business. The regulating law which governs our dual SIM celphone business is the New Zealands’s Telecommunication Act of 2001 (New Zealand Legislation, 2011) and it must first be reviewed first to validate that our business, products and services meets the requirements and in consonance with the law. When we have already ascertained that our business meets all the requirements of the regulating agency, we have to secure all necessary permits to operate at the New Zealand Commerce Commission. We should secure permit from the local municipality that has jurisdiction over the location of our business. Necessary receipts from the Internal Revenue must also be secured and to arrange how tax should be paid. g) Outline how your credit policies are developed in conjunction with customer service strategies to identify and resolve conflicts. Extending credit to the customers is one of the marketing implements that our business can use to encourage more sales. Also, in today’s modern economic structure, more and more people are making their purchase through credit and plastic rather than cash. This implement however must be used with extreme prudence because the business is still in its infancy and does not have enough resources to absorb credit. We still need enough cash to keep our cash flow going. It is also highly encouraged that the usage of credit be limited to plastics or credit card. This is more preferable for a good number of reasons. First, it’s not risky. Once the purchase is made, it is the credit card company that will pay us hence minimizing the risk. In case of a customer default, it is now the responsibility of the credit card company to run after the customer. Second, it insulates us from conflict. The best way to resolve conflict is to avoid it especially when it involves customers at this stage of the business. When there is an issue about collection or payment, we can always refer the customer to the credit card company thus avoiding a relationship strain with a customer which could undermine their retention. The worst that could happen would be a customer receiving a defective celphone unit from us and instead of a refund, we can always replace it with a new unit with a token of goodwill to compensate for the inconvenience. We still have the sale and we can always return the defective celphone unit to the supplier without risking our relationship with the customers. At this stage of the business, possible conflict with the customers must be avoided. h) Summarise how levels of service will be developed to meet customer expectations and marketing strategies that are realistic for the business enterprise to resource, while maintaining profit and/or benefit objectives and business viability. Developing service levels is an integrated function of the several departments of the company to deliver a product and service that does not only meet the customer expectation but delights them as well. Only through this mindset we can guarantee ourselves that we will remain in the business. To achieve this, we have to establish an internal process that supports an environment of a customer service second to none. To be able to craft a process that is responsive to customer’s needs, it needs the input of various departments who would know the operation more and determine Key Performance Indicators that will give us an idea how our process is running. This process should be documented and cascaded to be internalized by the organization. Afterwhich, a customer service quality standard must be established to be able to measure actual performance versus desired result. This will not cost much to the company because we will just be utilizing our existing manpower to do their job better. REFERENCES: Baker, Leslie Anne (2005). Creating Instant Visibility. Metal Producing & Processing, Vol. 43 Issue 2, p42-43, 2p Brooks, Ian (2001). 10 Steps to Becoming Customer Driven, Nahanni Publishing: Auckland. pp 89-107 New Zealand Legislation, 2011. [online] Available at [http://www.legislation.govt.nz/act/public/2001/0103/latest/DLM124961.html] Accessed on 05 August 2011. Rao, Bharat & Minakakis, Louis (2004).Assessing the Business Impact of Location Based Services. Proceedings of the 37th Hawaii International Conference on System Sciences. pp 1-7 Read More