In August 1990 the president and executive vice president of Xerox are reviewing the progress made on its customer satisfaction program. The emphasis placed on the program, the success of the program to date, and the drive to achieve the corporate goals of customer satisfaction motivate this review. At Xerox customer satisfaction is the number one priority, ahead of return on assets (ROA) and market share. The case focuses on analyzing the strategic role of the customer satisfaction program, its goals, and the action steps for implementation. Also described are the customer satisfaction measurement system, the data analyses, and follow-up. To increase customer satisfaction and to drive the organization to higher levels of performance top management believes that Xerox should offer a satisfaction guarantee. Market research has been conducted on customer responses to four different types of guarantees. A decision has to be made regarding the type of guarantee to introduce.
Subjects Covered:
Competitive strategy, Corporate strategy, Customer relations, Customer service, Marketing strategy, Office equipment, Sales & marketing, Service management, Services.
Xerox Corporation
Read: Xerox Corporation: The Customer Satisfaction Program
Read: Putting the Service-Profit Chain to Work
Xerox has overcome a dramatic slide in market share and profitability in its copier business by focusing on meeting its customers’ needs. This case concentrates on putting together a plan to further reclaim copier market share in the face of continued intense Japanese competition. Specifically the company is evaluating customer service guarantee alternatives. The case concentrates on the following issues surrounding customer satisfaction: What is customer satisfaction? Why is it important to have satisfied customers? How does a company know if their customers are satisfied? How can a company improve its customers’ satisfaction? The case also discusses market research..