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Financial and Operational Processes

 

The advantages of customer service that can contribute to business success include the fact that good customer service may give the business a competitive advantage. It can also help the business develop a positive, friendly brand image and way to differentiate its service. However, there are a few negative aspects of customer service that stop it from contributing to overall business success. These include, good customer service requires high staff levels and very well trained staff. This can be an expensive strategy as labour turnover might be quite high so training has to be ongoing and if service it not good there will be positive word of mouth generated by the business, severely impacting on business image. To track the positives and negatives of customer service, Qantas have adopted the "Net Promoter Score"SS as a key measure of customer service, with a continual focus on delivering the highest levels of customer service to the business to contribute to overall success. .
             The final operational process is the use of warranties. There are legally binding guarantees from the seller or producer that the product will meet certain standards of last for a certain amount of time. If the product fails to meet these guarantees within the time period, the business must repair or replace the product for free. If a business does not honour a warranty, it faces criminal punishments and lawsuits by customers. This contributes to overall business success as warranties entice customers to buy products, as they are reassured in there perchance. The advantages of warranties include, the fact that they give the business a competitive advantage. An extended warranty increases the profitability for the business (the extra profit will outweigh the costs of having the repair or replace more products). However, the negative aspects of warranties that impair overall business success, include, the fact that longer warranties may require managers to develop new strategies to improve quality in the transformation process.


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