QA6640 Chat Room Transcript
for April 11, 2007
Prof. Atkins 20:20:31
The chat room is closed for this evening. It will reopen next Wednesday at 7:35
pm.
Prof. Atkins 20:13:05
If there are no questions, we can close the chat room for this evening.
Prof. Atkins 20:08:17
The thirty-minutes are now up. Responses posted after this message appears will
not be evaluated for chat room participation credit.
If you have a question, you may ask it at this
time.
Hanane el hamraoui 20:06:44
Hanane El Hamraoui
helhamra@spsu.edu
Customers should be treated as kings in some cases and should not be treated as
kings in others. The customer could be treated as a king and should be
respected because he is the source of income to companies. The customer is a
valuable member in any business and without satisfying and yet delighting him
sales would be lower, reputation could be threatened, loss of customers could
occur, and financial problems could happen with dramatic results. The customer
can be treated as a king in a restaurant when he complains about service, wine
quality and taste, or the food. The manager then would either offer something
else as substitute to make up for the mistake, offer the whole meal for free,
or promise a future free diner for the customer and his party. Hotel guests
should be treated as kings when they get a smaller room/suite, smoking one,
dirty carpet or sheets…than they paid for and they expected. To make up for
that another room/suite with the expected features could be offered. Another
example of a customer that should be treated as a king is an air traveler that
missed his flight. Delta airlines offered too many vouchers to travelers that
miss their flights because of overbooking on spring break week. So the
customers that should be treated as kings in my point of view are those that
have the right to expect such a special treatment and we would never want to
loose but want to make them happy and make them tell others about their
successful experience.
As far as the ones that should not be treated as kings are concerned, they are
either never satisfied no matter what the company tries to do to make up and
make then happy, they are real “tough” to deal with, they have no idea how to
use an equipment, tool, credit card, etc. and those that have done it too many
times or they just like to get attention of the seller and make him invest
time, energy, and even money to solve the problem. Customers like those who buy
clothes and after a while they return them to the store either dirty, wrinkled,
or ripped should not be treated as kings because they got a good quality item
but they did not keep it in a good condition. Customers that refuse to pay a
taxi driver after a trip either short or long should not be treated as a king.
Customers that break items like toys, furniture, and computers should not be
treated as kings because they are responsible for whatever happened and they
make the company loose money when they return their purchased broken item.
J Scott 20:06:17
Technlogy Issue responsible for short answer.The customer perception and
servive perception may be different. Both operate within a realm of
understanding as was noted in the story. In this case, neither were on the same
page of understanding.The customer should be treated like a king in cases:1.
The customer is correct such as in the return of a poor quality item that does
not live up to service claims.
2. The customer should be treated like a king
when a provider is at stake of losing potential business.
3. The customer should be treated like a king
een if they do not always get their way.
Michael Ginn 20:05:49
Michael Ginn
Email: ginnmichael@hotmail.com
Should All Customer’s be treated like kings?
Customers can be viewed as value added or
non-value added, but in the big scheme of things a supplier could not be in
business without the customer. All businesses have some kind of customer. There
is a thin line of when a customer should be treated like a king and when the
customer shouldn’t be treated like a king. I will cover three examples of each
situation.
When they should be treated like a king
1. The first instance of when a customer should
be treated like a king is when the customer values the supplier. Some customers
put an honest effort into developing a supplier. They will pour resources such
as allowing some of the suppliers team to attend training free at the customers
site (Lean, Six Sigma, etc) This is where the supplier should value and honor
the customer as a king.
2. The second example is when the customer has an open communication policy.
This allows the supplier to not go blindly in producing the customer’s part(s).
This communication help build a long term relationship between the customer and
the supplier. Some customers will not give the supplier any kind of in-site on
performing better as a supplier. They only want the parts when they want them,
and they want the parts cheaper then anyone else can supply them.
3. The last example is when the customer allowing the supplier to actually make
a reasonable profit off of the part. All suppliers are in business to make
money, but some customers want to force the hand of the suppler to cut the
product cost to keep the business. In the long run the supplier will eventually
lose the business to some company over seas. So, if a customer is willing to
allow the supplier to make a reasonably profit then this customer should be
treated as royalty.
When they shouldn’t be treated like a king
1. In manufacturing some suppliers are truly
taken advantage of. For example: We are currently changing steel suppliers. Our
current suppliers know nothing of the upcoming change. They just know we have
not signed our yearly supplier contract with them. This supplier will be blind
sided when they lose our business in a few months. Should this supplier treat
us like a king? No, because we were not up front with the supplier.
2. Another example of when a customer shouldn’t be treated like a king is when
the customer does not keep their end of the bargain. Some suppliers are small
job shops and are depending on each of their few customers. The customer will
offer the supplier several extra jobs to bid on and actually let the company
produce some small pre-ppap runs, but the customer is only using the supplier
to get a few sample parts to their customer. In this case the supplier has been
given the impression that they are getting this job, but really their only
being used.
3. The last example of when a customer shouldn’t be treated like a king is when
the customer does not develop the supplier. A customer normally has more
resources and capital to help develop potential great suppliers. These
suppliers only need some help with getting some key programs started. Maybe
just a simple control chart process to help see problems before they occur.
This is where the customer is only using this supplier because they were the
cheapest. A customer that only looks at price is very shallow and will end up
with a lot of quality problems from these fly by night suppliers.
Gleiter 20:04:31
Kimberly Gleiter
kgleiter@hedonline.com
Three examples of when a Customer should be treated like a king.
1. In regards to their return policy, I believe that Walmart treats their
customers like kings. Customers know that if they are not happy with their
purchase they can simply return it with or without a receipt and only one
question is asked, “Is there anything wrong with this?” This encourages
customers to purchase more items knowing that it can be returned if they are
unhappy.
2. When the supplier is in a position where the majority of their business is
with one customer. This is not an ideal position to be in, but one where the
supplier must retain the customer in order to stay in business.
3. The customer should be treated like a king when their requirements are fair
and achievable and there is profit to be made.
Three examples of when a Customer should NOT be
treated like a king.
1. When the customers demands are unreasonable. For example, when an airline
passenger becomes unruly due to minor inconveniences caused by the enforcement
of rules put in place for the safety of all passengers (e.g. holding off on
departure until all items are stowed properly).
2. When the customer behaves in an unethical manner. Though a university would
not exist without students, a university cannot budge on their requirements for
students to abide by ethical behavior standards. To do so would decrease the
standards for all those who did abide.
3. When the customers demands are not economically sound. For example, when a
customer requires consistent cost decreases. For some suppliers, it would
require investments beyond their means to automate their systems to the point
where they could grant these types of decreases. For these suppliers, it may be
financially advantageous to break their ties with this customer.
Chris Wellman 20:04:26
Christopher J. Wellman
Should All Customers Be Treated Like Kings?
The first and most recent example is my own effort to maintain my Snow blower.
I traveled to the Alan Lawn Mower dealer where I purchased the snow blower with
my manual, receipt and all other documentation. I showed this material to the
clerk at the counter and asked for the proper spark plug. The clerk promptly
turned on their heel without saying a word and pulled a plug from a storage
bin. The clerk rung-up the plug without saying a word and I paid the specified
price.
I took the plug home and attempted to replace
the old plug, only to find that the plug I was given was the wrong size plug. I
returned to the parts department of the dealer where I purchased the Snow
Blower and complained, whereupon they marched to the bin and got the correct
plug and gave it to me to correct their error without so much as an apology for
wasting my time. I complained to a Manager who told me what you want they made
an error. Now that I need another large power implement, you can be sure I will
not return to the same dealer, there is a lot of competition that will be glad
to have my business. Also, you can be sure I do not have anything good to say
about the dealer that gave me the wrong plug. A simple apology would have
solved the situation and assured my future business.
The second example is an experience of bringing
my car to a nationwide transmission Amaco chain for a problem of the
transmission slipping. I was charged $40.00 and told it would cost a minimum of
$1,300 dollars. I told them I would have to check around, and they implored me
to sign that I really needed to get the problem fixed. Well I then brought the
vehicle to another small independent shop K&P. The mechanic said let’s go
for a ride, upon return to the shop, he said pop the hood, let me try
something. I though here we go, but he quickly made an adjustment and said try
that and come back if it is not better. I asked how much I owed him and he said
nothing. You can bet I sing the praises of this shop and never miss a chance to
describe the poor experience I had with Amoco.
Finally, my turn as the supplier involved a plan
we submitted to our customer for approval. Our customer is the Navy and we
Kollmorgen a medium sized Military contractor selling Large Sensor system rely
on the plan to determine just how much testing will be done on the system. Well
the customer did not provide any comment to the plan until a Management meeting
months after their contractual period for providing comments had expired. Now
they wanted us to do a lot more work than we planned. We pushed back and got the
customer to agree that we would do the work as stated in our plan. The Navy has
to realize that their failure to respond to our plan put’s the whole project in
jeopardy. The due date for their comment protects both parties.
You need to be fair with your customer and show
respect, but you should not allow the customer to drive you into efforts that
are not appropriate! Especially, when it will cost money that affects your
bottom line due to unreasonable expectations of the customer.
Brad McGuire 20:03:16
All customers need not be treated like kings, as evident in today's service
industry. However, all customers need to be treated with absolute respect and
at least the facade of a positive disposition on the part of the sales person,
cashier, teller, et cetera. Perhaps, the unwritten rule is that customers in
the mass market aren't treated as well due to the fact that they are viewed as
an unlimited resource. But, valued customers or customers that are paying more
money for their service should be rewarded accordingly.
Komic 20:02:15
Example when to treat the customer as a king
1. Beuty salons such as hair dresser or SPA
services. The customer is one who pays a lot of money to get desired look, or
to release the tension by using massages. It is important to show the customer
the way to become the most desirable person. The approach will show in the
publicity people that are often far from representative to the type of
customer. The customer identifies himself with this person, wants to become the
same or want to enter the same type of atmosphere. Rationality is far and the
approach is based on emotions and desire.You would like the customer to come
back.
2. Companies who tend to sell surgical instruments to doctors or distributor.
The business and the selling power depend not just on the quality of your
product but also on the quality of the customer care.
3. The health care service. The insurance company should not pay for the poor
service that doctors provide to the patient.
Example when not to treat the customer as a king
1. I have an example when doctor return the
instruments to Cardinal Health as a complaint, and asked for the credit to be
issued at his account. An evaluation of the instrument revealed that the
instrument was abused by the user.
2. If the customer is buying and returning the merchandise in several
occasions, and you as a seller recognize that the customer is abusing the
return policy.
3. In the post office if the customer approach the agent with the preset
arrogance toward the tax paid employees and do not give them a chance to show
full customer oriented service.
alan dial 20:00:38
Previous posting was for Alan Dial Email: alan.dial@aleris.com
alan dial 20:00:11
To be…
I propose the following examples when a Customer
should be treated like a king. Although I think these are important, I do not
believe treating a Customer as a King is limited to these. I would suggest that
the business model of a firm, company size and sales volume dictate much of the
dynamics surrounding the prioritization or treatment of Customers. I would
propose the following examples in the context of profitable revenue growth for
the Company. Obviously, a customer-facing service organization is judged on
Customer service and should take initiative to treat all Customers in a
positive light that makes them want to return in the future.
High Volume Customer -For obvious reasons, to
ensure of continuity of demand. Much is at risk for high-volume Customers to
move elsewhere. If a specific Customers demand being removed or reduced will
significantly reduce the performance of the organization, affect shareholder
value, or change the operations of the firm (forced labor reductions), they
should receive the “star” treatment.
Long-Term Customers- It requires more time,
resources and sales/marketing capital to find a new Customer than to keep the
ones that a firm has in place through the maintenance of relationships. I do
not have the statistics at hand, but I have heard numbers are great in
magnitude to find new ones.
Growth Opportunity- It is important to have the
pulse of the Customer and what they are doing, in this case I also suggest,
where they are going. Organic or growth companies that are managing financials
well and that have a lot of organic growth or NPI are critical to the success
of your organization. As a supplier, you want to receive consideration in
supplier choices, even if it is a product that does not exist. This can prove
to be a huge growth platform for the supplying company as well.
Or not to be…
I would not choose waste excessive time and energy in the following types of
Customers:
Small businesses with lack of payment
performance- This has to be scrutinized. Small businesses are less selective in
suppliers and do not have as much rigor in accounting practices as the more
mature. For example, when I was with GE, there was a lot of business turned
away that we could have executed on because the long-term business and volume
didn’t exist. As well, GE would not spend commercial resources on a small
opportunity when the resources time could be more profitably utilized on deals
with a greater yield.
Low-volume transactional Customers- Paralleling
what was said above, if the volume opportunity is not there and is not stable.
Then it is probably not wise to take to much time catering to their every
desire. The supplier’s longevity and success are not dependent upon it.
Low margin short lifecycle product companies-
Every product has a lifecycle and the longevity of the technology is heavily
dependent on how the company manages it. If there isn’t much of a future for
the technology, isn’t paying much and production can bottleneck production for
a supplier with greater product demand, then they should be given priority and
not much time should be wasted on catering to the inferior products Customer.
J Scott joined the chat at 19:59:19
gstevens 19:57:51
Glenn Stevens
Email: anandale@comcast.net
Should All Customers Be Treated Like Kings?
THREE different examples of when a Customer should be treated like a king.
There are several instances where a customer should be treated like king.
A supplier who has a contract to provide a particular goods or services to a
customer may want to treat this customer as king, especially if this customer
is the primary, major or sole customer of the supplier. The following are some
examples where the customer is king.
Example 1: A small manufacturer of plastic hangers have been aceepted by
Wal-mart to sell its products. In such a case Wal-mart being the customer may be
treated as king. The plastic hanger manufacturer knows the potential for future
sales is emormous based on Wal-mart’s market presence and dominance.
Example 2; Healthcare profession where a patient undergoing surgery by the
hospital staff. In such a case the hospital wants to ensure that it pleases the
customer as any negative outcome can result in costly damages and mal practice
law suit.
Example 3: A well known popular restaurant chain must attempt to please its
customers as repeat business and referrals are essential in a restaurant
ability to stay in business.
THREE different examples of when a Customer should NOT be treated like a king.
It is not always wise to treat a customer is king, especially when the customer
has a very miniscule impact on the supplier’s business.
Example 1: A passenger who takes a taxi may
should not necessarily be treated as king. In such a case the customers are not
captive and the taxi service provider has a very large customer base from which
to choose. In such circumstances, trying to appease all the desires of the
customer may not worth the effort. The customer may complain the taxi driver is
driving too slow, should change the music selection, should turn up the air
conditioning in the car.
Example 2: Used car dealer who sells to the
general public. A customer may want to have a car with high end features and
options and cannot afford to pay for this. In such an instance the customer
should not be pampered but be provided with a car that can best satisfy his
needs.
Example 3: Sports stadium that hosts sporting
events does not have to pamper its patrons. Essentially the customer once paid
for admission is there to see the sporting event. The stadium operator has a
large base from which to draw its customers from and does not see the value to
be derived from treating its customers as kings.
Brad McGuire 19:57:43
Brad McGuire
bmcguire@spsu.edu
When customer should be treated like a king
1) When a person lives in a condominium complex where they pay substantial Home
Ownership Association dues every month; their condo concierge and property
manager should treat them like kings. The resident (customer) pays costly HOA
dues for a reason, and it’s not just for property maintenance.
2) When a person elects to stay in a very expensive
and lavish hotel room in popular vacation destination locations (e.g. Las
Vegas) and decides to indulge in all the hotel amenities (including high stakes
gambling), they should be treated like kings. The hotel staff should ensure the
customer is fully delighted throughout the course of their stay.
3) When a person is deciding to or in the
process of making a major purchase such as a car or house, the sales
person/realtor should treat them like kings. The customer is prepared to pay
this sales person a considerable amount of money as commission and they deserve
the absolute best service.
When customer should not treated like a king
1) A customer such as the United States Defense Contract Management Agency
should not be treated like “kings” per se because if so, then they might be
tempted to go beyond the government contract requirements and take advantage of
their contractor. Government defense contractors should be dealt with on an
even playing field with mutual respect going both ways in order to build
mutually beneficial, long-term relationships.
2) A customer in a retail grocery store does not need to be treated like a
king, but of course with respect and courtesy nonetheless. A grocery store does
not have the resources to personally assist every customer and if they
attempted to do this, they would struggle to survive.
3) A customer at an “all-you-can-eat” buffet also does not need to be treated
like a king. These types of places are traditionally self-service and, again,
waiting on customers over-attentively may seem both unreasonable and out of
place. Plus, kings, more than likely, never ate at buffets anyway.
Prof. Prof. Atkins 19:34:29
CHAT ROOM DISCUSSION QUESTION:
You have thirty-minutes to answer the following
chat room question:
In Chapter Six of the James Lamprecht textbook,
"Quality and Power in the Supply Chain," the author asks this
question on Page 54:
Should All Customers Be Treated Like Kings?
The author then answers his own question on Pages
54 to 56.
You are to answer the above question in your own
words, and you may NOT use the author's example in the textbook.
Your answer MUST include the following:
THREE different examples of when a Customer
should be treated like a king.
THREE different examples of when a Customer
should NOT be treated like a king.
You may select examples from business, retail,
manufacturing, service, transportation, warehousing, government, sales,
marketing, communications, education, or any other area.