Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
After Sales Service
    INDRANIL BHADURI
    buyindranil@gmail.com
Why After Sales Service ?
• Economic Times :07-07-2010 India

77 per cent of Indian consumers asserting that they will NOT...
Economic Times :07-07-2010 India
"Customers want and expect high-quality service, especially as
  they focus on getting go...
Economic Times :07-07-2010 India
• As per the findings of the American Express Customer Service
  Barometer, 76 per cent o...
Economic Times :07-07-2010 India


86 per cent of the consumers are READY TO GIVE A SECOND
 CHANCE to companies with a goo...
Economic Times :07-07-2010 India

While the buying decisions of 89 per cent of Indian consumers
are influenced by convenie...
Economic Times :07-07-2010


• If the company is successful in satisfying its customers in terms
  of service, it gets the...
Aim and Objectives
After the session is over ,you should be able to
• Explain the difference between Customer Service &Aft...
Customer Service Vs After Sales Service

• CUSTOMER SERVICE :
  Customer service is the provision
  of Service to Customer...
History Of After Sales Process



Buyer Beware
Facts

• After sales issues are very expensive unless carefully
  controlled
• The cost of an exchanged product is ALMOST ...
Chinese Cartoon Who said there is no "after-sales
           service"? Some developers
the battery did not charge even after I inserted it
                  into the laptop
General Principles


The most common issue for customers is the LENGTH OF TIME
 that it takes to resolve their problems
Legal Aspects I KNOW MY RIGHTS


• What rights do customers actually have?
• What is the significance of a retailer or man...
Sale Of Good act




  1930
Sale Of Good act 1930
In this Act, unless there is anything repugnant in the subject of
   content
1. „buyer" means a pers...
Sale Of Good act 1930
• Sales Contract?
  A contract of sale is made by an offer to buy or sell goods for a
  price and th...
Sale Of Good act 1930:Price
The price in a contract of sale may be fixed by the contract or
may be left to be fixed in man...
Sale Of Good act 1930 Condition and Warranty
A stipulation in a contract of sale with reference to goods which
 are the su...
Sale Of Good act 1930 damage for non delivery
• Where the seller wrongfully neglects or refuses to deliver the
  goods to ...
Sale Of Good act 1930 damage for non acceptance


• Where the buyer wrongfully neglects or refuses to accept and
  pay for...
Reasonable time a question of fact



• Where in this Act any reference is made to a reasonable
  time, the question what ...
Sale Of Good act 1930 remedy for breach of warranty

Where there is a breach of warranty by the SELLER, or where
the BUYER...
Sale Of Good act 1930 remedy for breach of
                      warranty



Buyer may Sue the seller for damages for brea...
Sale Of Good act 1930 damages for non delivery


• Where the seller wrongfully neglects or refuses to deliver the
  goods ...
Sale Of Good act 1930 Buyer not bound to return rejected goods




 Unless otherwise agreed, where goods are delivered to ...
How stoppage in transit is effected
• Whether notice of stoppage in transit is given by the seller to
  the carrier or oth...
INTEREST BY WAY OF DAMAGES AND SPECIAL DAMAGES

• Nothing in this Act shall affect the right of the seller or the
  buyer ...
In the absence of a contract to the contrary, the Court may award interest at such rate
                       a it think ...
Check Your Understanding
Exchange
„Dead on arrival‟ (DOA)

almost all retailers will allow an exchange if the goods are
  damaged or not working wh...
Suppliers:3 types


Big Brands :Tell the retailers what to do and will not generally
   deviate
Medium Sized Companies wil...
Repair
What this means in practice ?

A customer can demand a replacement rather than a repair or
refund during the first ...
Refund
Retailers will normally resist giving refunds for two reasons:

Lost sale

Lost Value
GUARANTEE
• AGREE to be responsible for another's debt or contractual
  performance if that other person does not pay or p...
WARRANTY
Consumers Rights in India


ITS HOT……CONSUMERS RIGHTS
 IN INDIA
What do Customers Want?
Almost everyone in Business is trying to figure out What do
   Customers Want?
The answer is gener...
so why does it go so wrong? …
• Ironically, if the various consumer protection acts were a little
  clearer and more defin...
Back Bone of After Sales service
• Fast response to problem resolution
• Dependability
• Flexibility
• Diagnostics and fir...
Back Bone of After Sales service
Information

                                              Resolution timescales
To gener...
What do Sales People Want?



Essentially, sales staff want the same things that customers want
PROCESS DESIGN
5 keys
ONE check basic functionality
TWO collect all accessories
THREE make sure that the customer has cont...
PROCESS DESIGN contd..
Data recording

Escalation processes
Escalation Process
• Most important tool



• Route to reach the suppliers and manufacturers
Escalation Matrix
Problem Resolution Timeline
• REASONABLE TIMESCALES
• TIME TO RESPOND –ensure a prompt response(Call Centre)
• FIRST-TIME ...
REAL SCENARIO : CUSTOMER SCALE OF TOLERANCE

•   Day 1 :Customer Frustrated but understanding
•   Day 2 to 7:mildly agitat...
Mr.Vs Mrs Angry




Role Play
Supplier Management
This is the area that most retailers get wrong:

„It‟s all your fault‟




                           ...
Questions Retailers ask….

customer name
 customer address
 customer telephone number
 brand
 model number
product group
d...
Questions Retailers ask….
 delivery number (if appropriate)
 consignment number (if available)
 store or outlet name/numbe...
Questions supplier ask….
• How old it is?
• What went wrong?
• Why it was replaced?
• What was the background to this and ...
Logistics : Forward Logistics
Logistics : Reverse Logistics
Check Your Understanding
Forward –Reverse
Difference Between Forward and Reverse Logistics
8 Frequently Used Words in Customer Complain
Not working‟
„Not working properly‟
„Dead‟
„Faulty‟
  „Noisy‟
„Uncomfortable‟...
Reporting Technique
Work It out
•   Exchange costs – non-bought out guarantee
•   Exchange costs – with bought out guarantees
•   Repairs cost...
Beyond Economic Repair(BER)


State of a repairable item where its estimated repair
cost significantly exceeds a certain p...
Dead on Arrival (DOA)
 (Medical) Dead on arrival or D.O.A. (also dead in the field) is
 a term used to indicate that a pat...
Dead on Arrival (DOA)
Entry Price Point Goods
Original Equipment Manufacturer(OEM)Bought Out Guarantee (BOG)

Goods direct from the factory gate
OR
Through a handling a...
Supplier Specification
•   Dimensions
•   General properties
•   Colors
•   Transport conditions including packing within ...
EXTENDED Warranty
3 key drivers of extended warranty costs

1.Frequency of claim
2.Average labor costs
3.Frequency of part...
Pareto Principle
Check Your Understanding




 Quiz Time
After sales Service –Mercedes Benz



https://portal.aftersales.i.daimler.com/public/content/asportal/e
   n/home.html
BMW after sales service



• http://www.bmw.com.my/com/en/general/bmwowners/after_s
  ales/after_sales_03.html
After Sales Service
    INDRANIL BHADURI
    buyindranil@gmail.com
After sales service
You’ve finished this document.
Download and read it offline.
Upcoming SlideShare
Service After the Sale
Next
Upcoming SlideShare
Service After the Sale
Next
Download to read offline and view in fullscreen.

Share

After sales service

Download to read offline

After sales service

  1. 1. After Sales Service INDRANIL BHADURI buyindranil@gmail.com
  2. 2. Why After Sales Service ? • Economic Times :07-07-2010 India 77 per cent of Indian consumers asserting that they will NOT make a repeat purchase or continue with a company's services in case of a bad experience
  3. 3. Economic Times :07-07-2010 India "Customers want and expect high-quality service, especially as they focus on getting good value for their money in a difficult economic environment, and are willing to spend more with those that deliver excellent service -- suggesting substantial growth opportunities for businesses that get customer service right," American Express VP & GM ( World Service India) Pradeep Kapur
  4. 4. Economic Times :07-07-2010 India • As per the findings of the American Express Customer Service Barometer, 76 per cent of Indian consumers are ready to shell out 11 per cent more for excellent customer service. In fact, 67 per cent of consumers have paid more for a product or a service of a company with a good history of customer service.
  5. 5. Economic Times :07-07-2010 India 86 per cent of the consumers are READY TO GIVE A SECOND CHANCE to companies with a good track record EVEN AFTER A POOR EXPERIENCE
  6. 6. Economic Times :07-07-2010 India While the buying decisions of 89 per cent of Indian consumers are influenced by convenience and 90 per cent of them attach importance to value-for-money propositions, the majority of consumers (90 per cent) make their purchases based on the quality of customer service
  7. 7. Economic Times :07-07-2010 • If the company is successful in satisfying its customers in terms of service, it gets the benefit of word-of-mouth publicity. About 95 per cent of consumers give positive reviews about companies in case of good service in contrast to 77 per cent who speak negatively after a poor experience
  8. 8. Aim and Objectives After the session is over ,you should be able to • Explain the difference between Customer Service &After Sales Service • Describe how After Sales Service works • Describe the role and functions of Marketing,Logistics ,Finance and Retail • Outline Reporting Technique and Escalation Matrix • Understand Steps for Process improvement
  9. 9. Customer Service Vs After Sales Service • CUSTOMER SERVICE : Customer service is the provision of Service to Customers before, during and after a purchase. • AFTER SALES SERVICE : Periodic or as required MAINTENANCE or REPAIR of EQUIPMENT by its MANUFACTURER or SUPPLIER ,during or after a WARRANTY PERIOD
  10. 10. History Of After Sales Process Buyer Beware
  11. 11. Facts • After sales issues are very expensive unless carefully controlled • The cost of an exchanged product is ALMOST ALWAYS SUBSTANTIALLY MORE THAN THE SELLING PRICE OF THE GOODS
  12. 12. Chinese Cartoon Who said there is no "after-sales service"? Some developers
  13. 13. the battery did not charge even after I inserted it into the laptop
  14. 14. General Principles The most common issue for customers is the LENGTH OF TIME that it takes to resolve their problems
  15. 15. Legal Aspects I KNOW MY RIGHTS • What rights do customers actually have? • What is the significance of a retailer or manufacturer guarantee? • Who is responsible for refunds, repairs and replacements?
  16. 16. Sale Of Good act 1930
  17. 17. Sale Of Good act 1930 In this Act, unless there is anything repugnant in the subject of content 1. „buyer" means a person who buys or agrees to buy goods 2."delivery" means voluntary transfer of possession from one person to another.
  18. 18. Sale Of Good act 1930 • Sales Contract? A contract of sale is made by an offer to buy or sell goods for a price and the acceptance of such offer. The contract may provide for the immediate delivery of the goods or immediate payment of the price or both, or for the delivery or payment by installments, or that the delivery or payment or both shall be postponed
  19. 19. Sale Of Good act 1930:Price The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner thereby agreed or may be determined by the course of dealing between the parties Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price. What is a reasonable price is a question of fact dependent on the circumstances of each particular case.
  20. 20. Sale Of Good act 1930 Condition and Warranty A stipulation in a contract of sale with reference to goods which are the subject thereof may be a condition or a warranty A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.
  21. 21. Sale Of Good act 1930 damage for non delivery • Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for non-delivery.
  22. 22. Sale Of Good act 1930 damage for non acceptance • Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for damages for non- acceptance
  23. 23. Reasonable time a question of fact • Where in this Act any reference is made to a reasonable time, the question what is a reasonable time is a question of fact.
  24. 24. Sale Of Good act 1930 remedy for breach of warranty Where there is a breach of warranty by the SELLER, or where the BUYER elects or is compelled to treat any breach of a condition on the part of the seller as a breach of warranty, the buyer is not by reason only of such breach of warranty entitled to reject the goods
  25. 25. Sale Of Good act 1930 remedy for breach of warranty Buyer may Sue the seller for damages for breach of warranty
  26. 26. Sale Of Good act 1930 damages for non delivery • Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for damages for non-delivery
  27. 27. Sale Of Good act 1930 Buyer not bound to return rejected goods Unless otherwise agreed, where goods are delivered to the buyer and he refuses to accept them, having the right so to do, he is not bound to return them to the seller, but it is sufficient it he intimates to the seller that he refuses to accept them
  28. 28. How stoppage in transit is effected • Whether notice of stoppage in transit is given by the seller to the carrier or other bailee in possession of the goods, he shall re-deliver the goods to, or according to the directions of, the seller. The expenses of such re-delivery shall be borne by the seller
  29. 29. INTEREST BY WAY OF DAMAGES AND SPECIAL DAMAGES • Nothing in this Act shall affect the right of the seller or the buyer to recover interest or special damages in any case whereby law interest or special damages may be recoverable, or to recover the money paid where the consideration for the payment of it has failed
  30. 30. In the absence of a contract to the contrary, the Court may award interest at such rate a it think fit one the amount of the price • to the seller in a suit by him for the amount of the price.- from the date of the tender of the goods or from the date on which the price was payable. • to the buyer in a suit by him for the refund of the price in a case of a breach of the contract on the part of the seller- from the date on which the payment was made
  31. 31. Check Your Understanding
  32. 32. Exchange „Dead on arrival‟ (DOA) almost all retailers will allow an exchange if the goods are damaged or not working when they are delivered.
  33. 33. Suppliers:3 types Big Brands :Tell the retailers what to do and will not generally deviate Medium Sized Companies will try to accommodate the retailers and try to retain enough margins to enable a fairly flexible policy on returns Original Equipment Manufacturer(OEM):Operate on Bought Out Guarantee retailer not worried about “a few exchanges”
  34. 34. Repair What this means in practice ? A customer can demand a replacement rather than a repair or refund during the first six months after purchase unless the retailer can prove that the goods did indeed conform to contract, or unless the retailer can prove that a repair can be carried out quickly and at substantially less cost
  35. 35. Refund Retailers will normally resist giving refunds for two reasons: Lost sale Lost Value
  36. 36. GUARANTEE • AGREE to be responsible for another's debt or contractual performance if that other person does not pay or perform. • Usually, the party receiving the guarantee will first try to collect or obtain performance from the DEBTOR before trying to collect from the one making the guarantee (GUARANTOR) • The promise to pay another's debt or fulfill contract obligations if that party fails to pay or perform • A Promise To Make A Product Good If It Has Some Defect
  37. 37. WARRANTY
  38. 38. Consumers Rights in India ITS HOT……CONSUMERS RIGHTS IN INDIA
  39. 39. What do Customers Want? Almost everyone in Business is trying to figure out What do Customers Want? The answer is generally very simple a good-quality product, and to be treated fairly if there is a problem with the product. That‟s easy, then, so why does it go so wrong?
  40. 40. so why does it go so wrong? … • Ironically, if the various consumer protection acts were a little clearer and more definitive then customers would probably be less demanding • Some of the biggest reasons are • 1.Fear :What if our competitor knows it and apply the same ? • 2.Lack of understanding :marketing department hardly knows how the after sales work and vice versa • 3.A belief or understanding that their capabilities are perhaps less than perfect
  41. 41. Back Bone of After Sales service • Fast response to problem resolution • Dependability • Flexibility • Diagnostics and first-time fix rate: simple to use self-help procedures • Compromise An ability and a willingness to meet customers halfway is a very powerful asset in after sales care
  42. 42. Back Bone of After Sales service Information Resolution timescales To generate real credibility, companies must publish and stick to set timescales for time to complete
  43. 43. What do Sales People Want? Essentially, sales staff want the same things that customers want
  44. 44. PROCESS DESIGN 5 keys ONE check basic functionality TWO collect all accessories THREE make sure that the customer has contacted the service desk FOUR check guarantee validity FIVE Check for misuse
  45. 45. PROCESS DESIGN contd.. Data recording Escalation processes
  46. 46. Escalation Process • Most important tool • Route to reach the suppliers and manufacturers
  47. 47. Escalation Matrix
  48. 48. Problem Resolution Timeline • REASONABLE TIMESCALES • TIME TO RESPOND –ensure a prompt response(Call Centre) • FIRST-TIME FIX: realistically it is usually not possible for a repairer to visit immediately(Electrical :20-60%,Furniture :80-90%)
  49. 49. REAL SCENARIO : CUSTOMER SCALE OF TOLERANCE • Day 1 :Customer Frustrated but understanding • Day 2 to 7:mildly agitated • Day 8 to 14:geninely frustrated ..regular calls • Day 15 to 21:Losing patience • Day 22 to 30:Agry Customer and calling everyday • Day 29 and Over :Furious and threats of legal action
  50. 50. Mr.Vs Mrs Angry Role Play
  51. 51. Supplier Management This is the area that most retailers get wrong: „It‟s all your fault‟ „It‟s not our fault‟
  52. 52. Questions Retailers ask…. customer name customer address customer telephone number brand model number product group date of purchase date of delivery (if major difference) date of exchange fault history most recent fault description reason for exchange
  53. 53. Questions Retailers ask…. delivery number (if appropriate) consignment number (if available) store or outlet name/number name of person requesting exchange store authority number In Home or In Store date of collection replace or refund repairer name (if appropriate) Supplier Management and Reverse Logistics age when exchanged (days) supplier exchange reference number.
  54. 54. Questions supplier ask…. • How old it is? • What went wrong? • Why it was replaced? • What was the background to this and why was it not simply repaired? • Under what authority the retailer is expecting to return it to the supplier?
  55. 55. Logistics : Forward Logistics
  56. 56. Logistics : Reverse Logistics
  57. 57. Check Your Understanding
  58. 58. Forward –Reverse
  59. 59. Difference Between Forward and Reverse Logistics
  60. 60. 8 Frequently Used Words in Customer Complain Not working‟ „Not working properly‟ „Dead‟ „Faulty‟ „Noisy‟ „Uncomfortable‟ „Faulty‟ „Broken‟
  61. 61. Reporting Technique
  62. 62. Work It out • Exchange costs – non-bought out guarantee • Exchange costs – with bought out guarantees • Repairs costs – non-bought out guarantee • Repairs costs – with bought out guarantees • Combined costs • Exchange costs – potential savings • Repair costs – potential savings • Net projected savings
  63. 63. Beyond Economic Repair(BER) State of a repairable item where its estimated repair cost significantly exceeds a certain percentage (typically 80 percent ) of its replacement value
  64. 64. Dead on Arrival (DOA) (Medical) Dead on arrival or D.O.A. (also dead in the field) is a term used to indicate that a patient was found to be already clinically dead upon the arrival of professional medical assistance, often in the form of first responders such as emergency medical technician. paramedics or police D.O.A. is also frequently used as slang to indicate a new item that was received broken, or that an idea or concept is a nonstarter
  65. 65. Dead on Arrival (DOA)
  66. 66. Entry Price Point Goods
  67. 67. Original Equipment Manufacturer(OEM)Bought Out Guarantee (BOG) Goods direct from the factory gate OR Through a handling agent OR distributor for their ENTRY PRICE POINT and BUDGET SALES LINES guarantee is sacrificed in exchange for higher margins (ie the buying-in price is reduced)
  68. 68. Supplier Specification • Dimensions • General properties • Colors • Transport conditions including packing within containers • Boxes and protection • Consignment size and make-up • Parts and accessories
  69. 69. EXTENDED Warranty 3 key drivers of extended warranty costs 1.Frequency of claim 2.Average labor costs 3.Frequency of parts replacement and net cost of parts
  70. 70. Pareto Principle
  71. 71. Check Your Understanding Quiz Time
  72. 72. After sales Service –Mercedes Benz https://portal.aftersales.i.daimler.com/public/content/asportal/e n/home.html
  73. 73. BMW after sales service • http://www.bmw.com.my/com/en/general/bmwowners/after_s ales/after_sales_03.html
  74. 74. After Sales Service INDRANIL BHADURI buyindranil@gmail.com
  • juhilko

    Nov. 18, 2018
  • arrick007

    May. 14, 2018
  • EsamAbbas

    Feb. 18, 2017
  • LyNamQuang

    Jan. 1, 2017
  • debabratakonar

    Sep. 17, 2015
  • arunlalsharma

    May. 27, 2013

Views

Total views

8,486

On Slideshare

0

From embeds

0

Number of embeds

6

Actions

Downloads

436

Shares

0

Comments

0

Likes

6

×