The Need for a New System - Coursework Example

Strategies to Improve Customer Services at X-Department Stores Customer satisfaction and good-will are two most important aspects of customer relationship strategies at X-Department Stores, and this has been reflected in the trust and confidence shown by the customers in our, so far. However, recently some lags in communications between concerned departments. Collection of customer feedback 1) personal interaction and meetings with customers regarding grievances, 2) telephonic follow-up of orders 3) filled in customer feedback forms. The investigation and data collected and analysis using tools like Pareto chats have revealed these important lapses among others: 1) Delayed deliveries of customers’ orders 2) Customers’ being dissatisfied and complaining to the Stores Chart 1 – Frequency of Complaints (in the last two weeks) and Nature of Complaints Fortunately, this has been noticed and investigation has highlighted the need for a New System: 1) Centralized communication system with customer requirement specifications, delivery dates. 2) Ensuring materials are supplied on committed time by suppliers and develop contingency plan to meet unexpected supply delays. 3) Ensure timely delivery to the customer on all orders. 4) Develop budget and identify staff suitable for implementing the new system. Once the New System is in place, one can expect positive outcomes like A) smooth exchange of information and communications with internal staff in the department and B) good relationship with both staff and suppliers, C) on time delivery to external customers, thereby increase customer satisfaction and sales. Key Performance Indicators are: 1) Punctuality in Delivery 2) Positive Customer feedback 3) Information Transfer in case of delays 4) Alertness and Contingency measures to avoid delays So How Are We Going To Do It? The strategies developed and put in place to respond to customer needs are as detailed: The New System will involve a centralized computer system accessible to all internal departments and staff. There will a Time Line that gives the final deadline for the goods to be delivered to the customer, and also a chart to show individual departments’ time line to coordinate with internal customers, and suppliers; The new system will facilitate coordination and communication within the different departments an alert when the supply is delayed by the suppliers and helping contingency plans, so that the external customer is not kept waiting. This will also help keep a tab on suppliers’ bills, and committed deadlines, will sufficient time for the works department to prepare for delivery and alert the customer service. Accounts department will also find it easy to maintain Debtor’s ledger and Creditor’s Ledger, Customer profile and Chart 2 – How the New System will Work – Flow Chart If Yes If No other relevant details. After each order has completed its course, customer feedback will be analysed for lag indicators and possible improvements. Explaining Some of the Strategies in the New System: This system hopes to minimize customer unhappiness due to delays in order deliveries, since this was indicated as the major reason of customer dissatisfaction in the customer feedback analyses. Furthermore, it has also come to the fore that there is a lack of communication between the various departments in the store who are the internal customers. This lack of communication has been plugged in the New System which requires all orders to be logged in through a special software, which will require all relevant details to be entered at the time of customer placing the order itself. This will be stored in the database and can be accessed by the order no. by all concerned departments, which will help track the progress of the order. The data base will also contain details of stock on hand, and supplies made by the suppliers, and therefore will immediately alert the reception at the time of order taking, in case of non-availability of stock. Therefore the committed time of delivery can be suitably modified, which will warn the customer of possible delays and suggest alternate solutions, at the beginning itself. This will help improve customer trust in the organization and prevent conflicts. Furthermore since every supply and every delivery along with date and price are recorded in the database, collation of data regarding customer payments, preferences, and other details like most frequent items ordered, periodicity of the customer orders etc which will help in future forecasts. Though the New System has many such additional benefits, the main purpose is to ensure timely delivery of customer orders, improve cooperation between staff and suppliers, and improve sales. Cooperation of Staff As all of you may be aware, Staff cooperation is the biggest strength for any organization, and X-Department Stores is no different. Our congenial and cooperative personnel are one of our biggest pillars of strength. All are requested to go through the report in detail and get back to me with suggestions big and small. While all staff will be given training on the job in course of time to become familiar with the procedures involved in the New System, initially three of our staff have been identified and are willing to take the training on this. The training project itself will be for a period of four weeks, of which I, Graham Sandler, will be the chief coordinator, and assisting me on this project will be Mr. Goodwill the customer service team leader, and our own dependable and experienced Ms. Smarts to provide us with the necessary clerical support to complete the training. After this initial training, every employee will be trained on rotation and the schedules are being worked out by the HR department of the organization. I shall also call for a periodical meeting once in a fortnight during the last working day of the week, and appraise all staff regarding the progress, lags and problems we face during the training, as a part of information sharing. Hopefully, it will offer profitable lessons for all. Employees will undergo in house training on specific customer relations module and work-shops during work hours on rotation, so as to ensure that all employees are oriented towards customer service, rather than contain it to one department alone. Every employee is an ambassador of the organization and therefore, primary orientation towards serving the customer needs will go a long way in improving high quality customer relations. Budget Allocation and Staff on Duty for Installation of the New System and Training: The good news is that our store manager Mr. Bestman has already allocated a sum of $10,000 for this project of training employees on the New System. The budget, it is hoped will be sufficient for the installation and training of the New System Project. The project duration in its first phase will be for a period of thirty days, during which afore said three members will receive training from an external consultant called in for the purpose (including supply of hardware, software and training material). A sharp check to control variances on overhead costs as well as poor workmanship is envisaged by the use of both lag and lead indicators. Installation and Training (Hardware, Software and Initial Installation Materials) DESCRIPTION BUDGET Labour Employee FrontLine Manager $40/ hr -3hrs 2 days/week for 4weeks Customer Service Team Leader $ 27/ hr, 1 hr/week 4weeks Clerical Assistant $ 18/ hr 2hrs/day 3 days/week, 4 weeks 960 108 432 1500 Course Materials 2,000 Total Employee Development/Relation 3,500 Operating Expenses Consultants – Other 3,000 Photocopying 2,000 Printing & Stationery 500 Miscellaneous 1,000 Total Operating Expenses 6,500 TOTAL Installation and Training Project for New System 10,000 Conflict Resolution between external customers and internal customers (staff) and external suppliers shall involve: 1) Talking to customers to get clear details on list and date of requirement 2) Cross-checking with the Purchase Department regarding stock on hand and works department regarding approximate time required for completion of job 3) Alerting the customer at point of purchase itself regarding expected time of delivery 4) Periodic review of stock on hand; store minimum additional quantity to avoid delays in customer delivery 5) Negotiate with supplier to keep commitments on supplies 6) Apologize to customer for long delays- offer a nominal discount on the price if the customer is a regular and repeat customer, as a token of sincerity and commitment. Using Lead Indicators on work progress and supply materials and expected date of delivery, in the New System is another major strategy to prevent customer dissatisfaction and conflict with suppliers. Assessing Improvements A month after the New System has been put in place, regular customers, and customers with previous complaints will be invited to view and participate in a week-long ‘Customer Grievance Redressal Programme’ conducted in the store premises; during the week, the customers can walk in anytime with their grievances. A senior customer services executive or self will hear them and also get their feedback. Both oral and written feedback on specific points including timely delivery of goods, and the quality of service by the personnel, their suggestions for improvements will be obtained and tabulated. Both telephonic and online feedback will be used to supplement written feedback process. Collated information will be analyzed and shared, reviewed with bi-weekly internal department meetings and fortnightly inter-department meetings. All staff are requested to make use of the opportunity and participate actively. Furthermore, the store will offer opportunities for growth and upscale climbing in customer service careers for all those who show positive improvement in their performances. Cash incentives will also be given to those personnel who are especially congenial to customer needs and are able to receive unsolicited, spontaneous positive remarks from customers in their feedback. Conclusion Customer service orientation is imperative to all employees in an organization and X-Departments Stores is all geared to set in motion the process of ushering in high-quality customer service to all its valued customers. Let us join hands as one unit and offer out best, and also benefit in the process. Read More