Jul 4, 2016

CUSTOMER SERVICE VALUE FILE


A customer service value file is a detailed summary of all that we provide our customers in addition to high quality products. Much of the value added service we give our customers is not apparent and goes unrecognized.

The purpose of the customer service value file is to make our customers aware of the comprehensive investment we make on their behalf, & to help quantify that value.

In a professional fashion the CSVF presents an accurate economic rationale for doing business with our company. It endorses and supports a partnership relation with our customer, and it reinforces their decision to buy from us.

There are other important reasons to use a CSVF; they educate purchasing about what is happening engineering. They help us maintain our position and history with a customer. This overcomes the loss of relationships caused by persona turnover in purchasing.

A CSVF makes our customers look good, and is very important to them when they make their annual purchasing plan presentations. Importantly, it educates our sales people about the tremendous value of service the customers get from our company.

There are many things we do for a customer that they don’t have to do themselves, thereby saving their money. These have a dollar value. Additionally, we do things that have a significant dollar return value. This dollar potential goes into a customer service value file.

A CSVF should be developed for each major customer, and formally presented at least once in a year. It is a good idea to routinely update the file. It should be constructed with our key customer contacts, as it is they who will also benefit.

Our customer wants this kind of documentation. Importantly it’s a powerful sales tool and clearly differentiates us from our competition.

CUSTOMER SERVICE VALUE FILE WORKSHEET

Following are the key services that we provide to customers and the so provided service must be documented and presented to the customer. For instance:

TRAINING

Training to the customer.

Training videos.

Customizes seminars.

ENGINEERING

Applications engineering.

Production engineering.

Engineering specifications writing.

Production line service.

Warrant problem evaluation.

Technical center expert consultation.

Technical center- parts testing.

Technical center research.

Industry technical papers.

Software technology service.

INVENTORY MANAGEMENT

Availability of distributor inventory.

Worldwide availability.

Product samples. (for evaluation)

Company’s technical data sheets.

EQUIPMENT

Regular equipment service

General repair service

Free trial use of equipment.

It should be taken care that the CSVF must be accurate and realistic. This leads to better customer relation and reputation of the business. It must be maintained by each salesperson and also updated regularly.

You can have a look at the business you are doing and observe where it is coming from. You can do this sales volume easily and systematically by using your software using your customer service value file periodically, and if you have sophisticated enough required records, by profitability. Most industries and other selling units find that 80 percent of their business comes from 20 percent of their customers. Naturally, it follows that, 80 percent of their customers give them 20 per cent of their business. And yet, all too often, they find they spend most of their time dealing with the vast array of customers who give them the least amount of business. This is called over servicing. Of course, small customers can be grown in to large ones, and you should concentrate on the high-potential ones. But spending a lot of time and energy on people who gives very low income on return is insufficient, and may be causing sum amounts of unhappiness with the big clients.

If you see all different ranges of products, analyze your sales time for each type or category while considering the revenues produced. Then allocate your time in the most rewarding area. Have you ever looked at your own selling cycle? What are the events that have to take place before the customer gets goods or service and you get the money? Some transactions are immediate, such as buying an evening news paper from a street vendor on your way home each night. Others are purchases requiring a lot of consideration- buying a new car, house, flat or cell phone for example. The news paper takes a few seconds and is mostly a reflex action. The second might take weeks or months.

The longer the selling cycle, more the opportunity to lose the deal. In house purchase, you could see the following types of event taking place, with plenty of intrusions possible that could affect the transaction.

Decision or need to move and obtain new house.

Identification of area(s) to target for new house.

Establishment of price range.

Definitions of requirements.

Selection of real estate agent(s)

Review of possible candidates.

Selection of shortlist.

Comparison of options like school, shopping, commuting, and property attributes.

Final selection, price offer and negotiations

Agreement reached, Property inspection, Need to obtain a mortgage – interest rate activity.

Need to obtain life insurance- medical examination, need for secondary financing, ability of buyer or seller to complete dependent transaction and legal & title considerations.

Need for refurbishment/repairs etc and contract exchange.

Look at how many times there could be an event that affects the outcome. Look at all the different opportunities to cause a change of mind. Now consider your own business activity. What is your business cycle like? What are the opportunities to touch the customer before, during after the purchase? If you have not done it before do it now. This is a good tool to evaluate your own business selling cycle on different customer at various segments. Practically this can be done with proper recording and maintaining customer service value file periodically. You can also easily rank your customers by sales, service provided, and your selling time Vs revenues. Concluding, you can clarify your selling cycle with time and revenues. So it is very necessary to maintain Customer Service File so as to track selling cycle of your business activities regularly.




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