paper
Case Study:
Federal Express: The Money Back Guarantee(A)
M.Sc. Global Logistics
Kühne Logistics University
Prof. Dr. Jan Becker
Name of Module: Services Marketing
Name of Student: Katherine Echevers
Student ID: 530116001
Date of Submission: 21-01-2013
Content
1. What should Federal Express do for this customer?
As for Fred Smith, founder and chairman of Federal Express once said, “Our business is customers”. When a customer is highly desperate and really needs a package like for instance the importance Mr. Cooper put on it, they should take her seriously. It is not only because they would loose a customer who is working in a business school, it is because “It costs about five time as much to attract a new customer as it costs to keep an old one”. If the customer service in the phone was not able to give her some real answer, Ms. Sylvia Cooper should be able to talk to the manager and they should have try to get their package at least for the time she was making her presentation.
2. What do you think actually happened?
It is definitely clear by the way the customer service guy answer that the organization didn’t encourage its front line people to empower to do something about customer complaints. Sometimes extreme customer service has to be done, as the guy from Fedex who walks 20 years ago in a flood to deliver and pick up a package. As Liz Strauss said: FedEX man raised the new package high above his head and said very loudly, “Fed EX we deliver. We pick up too!” According to the Policy of Two Money Back Guarantees, I would said they definitely have to give the money back to Ms. Sylvia Cooper since they were not able to deliver on time her package.
3. Federal Express handless roughly 875,000 packages each day. What would you guess its error rate to be.
Since 1973, Federal Express has been pioneered with the mass-market overnight package delivery business and since then it has stayed
Federal Express: The Money Back Guarantee(A)
M.Sc. Global Logistics
Kühne Logistics University
Prof. Dr. Jan Becker
Name of Module: Services Marketing
Name of Student: Katherine Echevers
Student ID: 530116001
Date of Submission: 21-01-2013
Content
1. What should Federal Express do for this customer?
As for Fred Smith, founder and chairman of Federal Express once said, “Our business is customers”. When a customer is highly desperate and really needs a package like for instance the importance Mr. Cooper put on it, they should take her seriously. It is not only because they would loose a customer who is working in a business school, it is because “It costs about five time as much to attract a new customer as it costs to keep an old one”. If the customer service in the phone was not able to give her some real answer, Ms. Sylvia Cooper should be able to talk to the manager and they should have try to get their package at least for the time she was making her presentation.
2. What do you think actually happened?
It is definitely clear by the way the customer service guy answer that the organization didn’t encourage its front line people to empower to do something about customer complaints. Sometimes extreme customer service has to be done, as the guy from Fedex who walks 20 years ago in a flood to deliver and pick up a package. As Liz Strauss said: FedEX man raised the new package high above his head and said very loudly, “Fed EX we deliver. We pick up too!” According to the Policy of Two Money Back Guarantees, I would said they definitely have to give the money back to Ms. Sylvia Cooper since they were not able to deliver on time her package.
3. Federal Express handless roughly 875,000 packages each day. What would you guess its error rate to be.
Since 1973, Federal Express has been pioneered with the mass-market overnight package delivery business and since then it has stayed