Services Problem of Samsung - Essay Example

Services Problem of Samsung al Affiliation) SAMSUNG SERVICE PROBLEMS Why Samsung? Samsung is a global brand with a rich 45 year history of electronic manufacturing. Its revenue stands at $228.692 trillion as of 2013. In addition, it is declared as the worlds largest information technology company by revenues with a market share of 32.4 % (Strategy Analytics). Samsung offers a wide range of products from domestic electric appliances, smart phones, consumer electronics and telecommunication components. However, in a highly competitive industry, competing against companies such as; Apple, Huawei, Techno and LG promoting similar products and services, consumers expect more than just quality goods from any of these companies. One of the critical areas is customer service, and Samsung suffers an epic service problem. In order to correct this problem, a PRS program needs to be implemented. It is cost effective and will spare the company revenue which will have been lost by disgruntled customers. Brand 2 is an international customer relation consultant with an access to the best minds in the service providers. It has a long history and a wide range of customer relations programs and successes in the media industry. Samsung does not require bad publicity in a highly competitive world. Bad publicity tends to scare aware prospective investors and potential customers. Brand 2 can change that and ensure that not only satisfied customers, but also an efficient service team that responds, connects and performs to its level best. Root of problem This problem is underscored. Samsung customer service ranks no 465 out of the 747 companies that have a Customer Service Scoreboard rating. According to the survey of 1,771 customers of Samsung, there are 1,692 negative comments. This is an overall score of 29.97 out of a possible 200 based upon 1831 ratings. The score rates Samsung customer service and customer support as inadequate. With the highly competitive nature of the technology industry this might be the waterloo of Samsung. Most customers complained of the staff rudeness and dishonesty. The negative comments keep repeating themselves. This is not only a ticking time bomb but a disaster as far as public relation is concerned. For a company of Samsung nature this certainly something that needs urgent attention. The general nature of mankind is to promote negativity; in as far as customer relation is concerned, this poses a major risk. Negative news sells. (KS consulting limited) Unhappy customers spread the word! Depending on the industry this can even be worse. Today, the dangers of negative word-of-mouth are copious; now, picture this to the millions of Internet users with access to various social sites. Dangers of negative customer service According to Lenz, (2007), customer service is critical to satisfaction. The linkage between customer satisfaction and loyalty is paramount to the success of any business. As satisfaction levels drop, loyalty drops faster. A further drop 25 % is experienced when customers note there is a problem. With revenue amounting to $228.692 trillion in 2013, a reduction of 50% will certainly be a catastrophe. Also the loss of market share to other industry players (Lenz, 2007). Secondly, customers tend to move in droves once a problem has been identified. Customer loyalty typically drops by a 25% margin among customers who experience a problem. Customer service is not just responding to customer’s queries. It involves giving a welcoming service, being treated with dignity and the utmost respect, responding honestly to queries and keeping a determined schedule of feedback with correct amount of information. A global brand such as Samsung deserves a reputable customer service. The company needs a new strategy to achieve new refined customer service relations (Seybold, & Lewis, 2001). PRS Program (Public Relation Service) Staff recruitment With a work force of 326,000 as of 2014 and an operating income $36.785 trillion (2013) it certainly would not cost much to have 1000 employees operating its customer service department with transporters, respondents, social media experts , technicians to answer to online queries. There is need for new brand ambassadors, faster response to issues and a catalogue of all the problems to keep track of the progress. Recruit the right people by using effective selection techniques. Promotions According to Brondmo, (2000), most promotions tend to have positive results with great odds mostly in favor of them. To build on a good rapport with the customers and correct for the past wrongs to clients the company needs a promotion. In addition, promotions will include vibrant marketing strategies where Samsung will offer to recall all products given bad service in the past 1 year. As the service experience will vary from customer to customer those with warranty and have either broken down not due to the clients negligence will be offered a free upgrade of their products where possible. Offer cash prizes and rewards to the customers who have maintained their products. Offer replacements and long lasting warranties to the most loyal customers. This is a guaranteed method of maintaining customer loyalty (Brondmo, 2000). Training Zeithaml, & Bitner, (2003), state that reading the negative reviews of the customers, raises a need to train the staff on customer handling. Staff need training on better methods to interact with customers enacts different roles by providing different scenarios. Work on the staff attitude by offering guidelines and protocols for every different possible scenario. Invite outside review on individual performance regularly. Undertake regular performance reviews not just during the annual appraisal. Give a response about what’s going well, as well as guidance and mentorship for areas needing improvement. Keep record of products and keep customers updated on their progress. Train staff on basic technological background to be able to respond to queries as well as maintain an online process. Establish an effective communication module where customers will feel appreciated and welcomed to be part of the Samsung family. Consider setting up customer service awards. Simple award scheme where individuals, colleagues and customers can nominate team members who demonstrate exceptional customer service (Zeithaml, & Bitner, 2003). Invest in logistics Provide faster means of transportation and communication channel for delivery systems. As an electronic manufacturing giant company Sam sang should put in place and maintain a system to monitor feedback and complains. Keep track of products and records. Maintain a substantial presence on the Web and social media fronts. Use a more personalized experience. This is an area that is the most crucial in this time of faster communication. If need be assemble a team of techno savvy employees with the technical skill of the product or a catalogue of the product with a brief description of each item. Ensure to keep a close management structure on this core group however do not exert immense pressure as this will render the work useless. Remember a negative worker tends to produce a lousy job. Benefits out-weigh costs The RPS plan does not cost much and it involves easy steps. An improvement in customer satisfaction will see a detainment of loyal customers. With a 32.4% market share (strategy analytics) thus provides a large pool of loyal customers besides additional one gained through good customer service. Not only will that with an improved customer service relation the image of the company greatly improve creating a better public portfolio. A good quality of service is important to the biggest electronic company in the world. Samsung service is a service of care The company can only look forward to prosperous future ahead and a great partnership built on mutual prosperity after adopting this recommendations and enforcement of positive customer service relations. A partnership with Brand 2 is a partnership for the future (Barlow, & Stewart, 2004). Reference List Seybold, P., & Lewis, J. (2001). The Customer Revolution: How to thrive when customers are in control. New York: Crown Business. Brondmo, H. (2000). The Engaged Customer: The new rules of Internet direct marketing. New York, NY: Harper Business. Lenz, V. (2007). The Saturn Difference: Creating customer loyalty in your company. New York: J. Wiley. Barlow, J., & Stewart, P. (2004). Branded customer service: The new competitive edge. San Francisco, Calif.: Berrett-Koehler. Zeithaml, V., & Bitner, M. (2003). Services marketing: Integrating customer focus across the firm (3rd Ed.). Boston: McGraw- Hill/Irwin. Read More