NCFE Level 3 Customer Service Excellence
Why Is Service Excellence Important To Your Organisation?
Netjets is a worldwide network of shared aircraft. This is defined as fractional ownership. Customers make a large investment in a share of a private jet. In relation to the size of their share, they receive a number of hours flying per year, and they own that asset, the value of which can go up or down. The customer is also liable for management fees and an occupied hourly flying fee. The customer is therefore making a very significant investment and expects the highest levels of satisfaction. Netjets is a customer-driven organisation. They do not solely compete on price or product. Customers are willing to pay a higher price than the competitors charge if they perceive that they are getting value for money in terms of service. It is difficult to differentiate by product as our product is not unique and can be provided easily by competitors. Therefore Netjets must differentiate itself from its competitors. Each customer will judge differently the value for money received. They may consider the cost, efficiency, individual service received, attention to detail, flexibility and service recovery. They will weigh this against the perceived value received from competitors. Netjets priorities are retention, growth and operational excellence. It takes time and money to attract new customers. New customer spending must be offset against these acquisition costs until the customer becomes profitable. If they stay longer as a customer they are likely to recommend friends and to remain loyal. Customer referral accounts for 60% of new business for Netjets. On average dissatisfied customers will tell twice as many people about their poor experience than satisfied customers will tell about their good experience.
Identify 4 service weaknesses in your organisation. How would you upgrade these services? The 4 service weaknesses I have identified in Netjets are
Perception of Value
Access and slots failures
The Role of Customer Service is to Enhance the Value Proposition of Netjets Detractors Reasons Mix
Perception of Value
During the economic downturn, many customers are reassessing their investments and assets. Customers’ expectations have gone up – the value perceived has diminished as they must prioritise their spending. In March 09, 76% of detractors from the Netjets programme cited cost as being the main reason for their leaving the programme. This contrasts with only 39% the previous year. We must convince them that their private jet share is still a valuable asset to them both as an investment and as a product. For them to consider retaining their share, they must be sure that it is as essential to them as their chauffeur driven car or their private yacht. .If we cannot lower the price of the service offered, we must alter the customers’ perception. We not only need to exceed the customers’ expectations in terms of service, but also convince them that our service is indispensable to them. Both the sales and the marketing departments can be instrumental in this. The departments must identify the customers’ wants and needs and highlight how we can satisfy these needs. Netjets should be marketed as a business tool, rather than as a luxury item. By helping customers travel faster and get closer to their destination, we can increase their efficiency and productivity. Waste
To enhance the value of our product to our customers, we should reduce waste and therefore cost. There are many ways that waste could be reduced, but safety and service must never be compromised. Waste can be identified in many areas including operational processes and administration. One problem which has been identified is that each booking requires multiple touch points. Employee’s decisions are restricted and they often have to defer to managers or other departments. Employees need to be empowered to make...
Please join StudyMode to read the full document