Sof-Optics is primarily concerned that they are losing customers due to poor service. This adds to highlight the importance of being timely with customer service, and not missing out on call orders, the predominant determinant of their success. Because of their operational lay out with the phone system, Sof-Optics has a long backlog of customers waiting on hold to speak to customer service representatives and the management fears that this long wait time will ultimately lead to more abandoned calls and lost orders.
3.) What ideas do you have for improving the system?
The CSR department is focused too much efforts and time with the small - one lens per week customers. Based up Exhibit 9-A notes, we can see that customers buying less than one pair of lenses per week constitute 55.3% of total customers. Therefore, these buyers account for a large majority of the customer service representatives’ calls and time. In order to limit the time spent on the phone and reduce the call wait time structure, the solution is to develop a distribution system. This solution would enablesof-opticsto have fewer‘small’ customers and more ‘large’ customers, and thus increase the overall effectiveness of calling and profitability within the company. We can see that the time it takes to process a single pair lens order is also the same duration of time that could be taken to process an order 100 pairs!. If sof-optics had a distribution partner that focused primarily on this specific customer base, and could stock and sell to the smaller end users, we would drastically relieve the volume of calls that are coming into the CSR, and thus slowing down the order process and reducing overall profits.
(a.) Estimate the capacity (in calls per hour) of a Customer Service Representative.
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