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Book/movie review
22/08/2022
Reading:
Tiered Service
In years past, most thriving companies gave all
their customers special attention, regardless of the
size of their purchase. The thinking then was that a
customer who makes a small purchase today might
make a large purchase tomorrow. Many companies
are asking themselves, “Why invest the same
amount of customer service effort and expense in a
one-time customer as we would in a customer
who has a multimillion-dollar history with our
business?” This approach to serving customers is
referred to as a tiered service system, a concept
that understands customer service to be fundamentally
inter-related with a customer’s actual or potential
value as a consumer. Many companies use a
database of customer transaction records, which
have been stored and analyzed with the help of
computers and customer relationship management
software. The concept and use of CRM software
will be discussed in depth in Chapter 4; however,
the underlying principle of CRM is that every interaction
with a customer is part of a larger relationship.
With CRM, the company should be able to capture,
maximize, and use organized meaningful reports to
help analyze customer loyalty and potentially increase
sales.
What does tiered service look like? Whether we
realize it or not, we are already being served by this
concept each time we choose to fly. Airlines typically
place their customers into three tiers of service:
basic, or coach-class; enhanced, or business-class;
and premium, or first-class. For the customer, the
good news with a tiered service system is that there
are a lot more choices on price, convenience, and
comfort. Also, consumers have the option to
upgrade seats and request additional legroom. On
the other hand, companies can invisibly identify
individuals who do not generate profits for them
and may provide them with inferior service.
Although tiered service exists, customers should
never feel that they are getting a certain level of
service because they are buying a certain level of
business. All customers should feel that they are
receiving the same level of customer service when
it comes to assistance with problems or the handling
of complaints.
Assignment is three pages
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