Unit 9
Unit 9 Final Project
University Name
Student Name
AB/221 - Customer Service
Professor Name
Date
Introduction Many companies use tiered services in their approach to customers. There are a lot of advantages linked to this type business framework; the disadvantages are not absent, as well. The purpose of this paper is to address the pros and cons of using tiered services at On-Time Technology Products and whether or not there would be risks involved with respect to losing some smaller clients through this approach. It also refers to suggesting feedback tools that can be used by the president of the company regarding analyzing customer services concerns before they turn to bigger problems.
Tiered Services - Good or Bad? According to Gibson-Odgers (2008), when using a tiered system of services a company address to its clients differently, based on the amount of money each customers spends on purchasing the services of the company. A tiered service system can be used with a database of customer transaction records, which have been analyzed and stored with the help of computers and CRM software. The president of the company OTTP thinks of rewarding the B2B customers of the company in the following way: the ones who purchase more than $100,000 in services or products will be discounted with 5% on all purchases. These customers will also receive great turnaround times. The customers who purchase $500,000 in services or products would get a 10% discount and free delivery. The company currently has the same approach to all its customers. The major advantage of using the tiered system is that the customers who purchase a lot from the company will be give special attention and will receive benefits because of their large payments. This way, they would and most likely will become the most loyal customers of the company. The Pareto 80/20 principle can be applied to this situation. This principle simply says that 80% of the revenue is generated by 20%
University Name
Student Name
AB/221 - Customer Service
Professor Name
Date
Introduction Many companies use tiered services in their approach to customers. There are a lot of advantages linked to this type business framework; the disadvantages are not absent, as well. The purpose of this paper is to address the pros and cons of using tiered services at On-Time Technology Products and whether or not there would be risks involved with respect to losing some smaller clients through this approach. It also refers to suggesting feedback tools that can be used by the president of the company regarding analyzing customer services concerns before they turn to bigger problems.
Tiered Services - Good or Bad? According to Gibson-Odgers (2008), when using a tiered system of services a company address to its clients differently, based on the amount of money each customers spends on purchasing the services of the company. A tiered service system can be used with a database of customer transaction records, which have been analyzed and stored with the help of computers and CRM software. The president of the company OTTP thinks of rewarding the B2B customers of the company in the following way: the ones who purchase more than $100,000 in services or products will be discounted with 5% on all purchases. These customers will also receive great turnaround times. The customers who purchase $500,000 in services or products would get a 10% discount and free delivery. The company currently has the same approach to all its customers. The major advantage of using the tiered system is that the customers who purchase a lot from the company will be give special attention and will receive benefits because of their large payments. This way, they would and most likely will become the most loyal customers of the company. The Pareto 80/20 principle can be applied to this situation. This principle simply says that 80% of the revenue is generated by 20%