Customer Service Management and Business Performance at Vodafone
Customer Service Management and Business Performance at Vodafone
Chapter 1 Introduction
Customers are considered as the key for any business survival. As the market begins to saturate, customer retention will be a key factor in determining the success of a company (Kotler, 2003). As a highly competitive market, the mobile phone company that has the largest customer base and highest customer retention rate will be a market leader in the industry (Turel and Serenko, 2006). Ultimately the quality of customer service becomes a driving force in ascertaining business survival in the mobile phone industry. As mentioned, the degradation of customer service level is highly probable. According to past researchers when customer service level is compromised there is a high possibility that business performance will be affected as well (Bontis et al, 2000; Mullins and Larreche, 2006; Woodcock et al, 2005). Bart et al. (2001) also explained that the rationalization of resources allocation and business processes such as customer service, human resource and productivity is inevitable, these problems can be resolved with proper integration and management transitions. As such, the maintenance of customer service level, when consolidation is put into practice, necessitates the need for effective customer service management (Tucker, 1994). Hence, with effective management of customer service, business performance of mobile phone companies can be improved. In the business arena, more and more organisations are able to realise the importance of having good relations with their clients. In this manner, many industries are trying to identify ways on how to promote or enhance client relationships. The customercompany relationship is based on a continuum wherein both "always-a-share" and "lost-for-good" relationships occupy the two extremes of the continuum. According to Jacobs et al (1998) in an "always-a-share" relationship, transactions are arms-length and discreet. Customers are
Chapter 1 Introduction
Customers are considered as the key for any business survival. As the market begins to saturate, customer retention will be a key factor in determining the success of a company (Kotler, 2003). As a highly competitive market, the mobile phone company that has the largest customer base and highest customer retention rate will be a market leader in the industry (Turel and Serenko, 2006). Ultimately the quality of customer service becomes a driving force in ascertaining business survival in the mobile phone industry. As mentioned, the degradation of customer service level is highly probable. According to past researchers when customer service level is compromised there is a high possibility that business performance will be affected as well (Bontis et al, 2000; Mullins and Larreche, 2006; Woodcock et al, 2005). Bart et al. (2001) also explained that the rationalization of resources allocation and business processes such as customer service, human resource and productivity is inevitable, these problems can be resolved with proper integration and management transitions. As such, the maintenance of customer service level, when consolidation is put into practice, necessitates the need for effective customer service management (Tucker, 1994). Hence, with effective management of customer service, business performance of mobile phone companies can be improved. In the business arena, more and more organisations are able to realise the importance of having good relations with their clients. In this manner, many industries are trying to identify ways on how to promote or enhance client relationships. The customercompany relationship is based on a continuum wherein both "always-a-share" and "lost-for-good" relationships occupy the two extremes of the continuum. According to Jacobs et al (1998) in an "always-a-share" relationship, transactions are arms-length and discreet. Customers are