Aftersales management : creating a successful aftersales strategy to reduce costs, improve customer service and increase sales

Aftersales Management explores in detail the immense amount of money wasted in the retail industry every year on badly managed after sales processes, and looks at how to precent this happening. What happens after a sale if problems occur? How are they handled, and what processes can be applied to make sure that they are dealt with cost effectively for the company, while at the same time improving customer service and increasing sales? Aftersales Management sets out the legal position on customer rights, and explains to readers exactly what customers want, what salespeople want and how these needs impact on teams within the rest of a retailer's company. The book also discusses the key parts of implementation, showing how to manage key stakeholders, both within the business (ie the various business functions and departments) and outside (such as manufacturers and suppliers). With practical examples to show just how much of a saving can be achieved if changes are made, the book demonstrates how to create a viable aftersales proposition - from managing the implementation, through making the necessary changes, to holding on to the gains once made. Complete with real examples drawn from a wide variety of situations and sectors, Aftersales Management gives readers the essential information needed to create and implement a successful aftersales proposition, while reducing costs, improving customer service and increasing sales. Title page 2 Copyright 3 Contents 4 Chapter 1 Aftersales 8 Aftersales costs 8 Why is it important? 9 The ‘unnamed’ hole in retail finances 12 Isn’t this just customer services? 14 What about quality managers? 15 Operating principles 16 The book structure and who it is aimed at 17 Summary 18 Chapter 2 History and common practice 20 General practice 20 Service standards 21 Suppliers 22 Lessons to be learned 24 Management buy-in 25 Summary 25 Chapter 3 Legal matters 28 Key points 28 Legal principles 29 Limitations 29 Why the confusion? 31 ‘I know my rights!’ 31 Exchanges 35 Repair versus replacement 36 Refunds 37 Guarantees and warranties 37 Duration of guarantees and legal rights 38 Consumer rights in the United States and Canada 38 Consumer rights in the rest of Europe 41 Consumer rights in Australia and New Zealand 43 Summary 45 Chapter 4 What do customers want? 46 Overview 46 Building a reputation 48 Managing perceptions 49 Difficult customers and practices like 'deshopping' 50 Summary 51 Chapter 5 What do sales staff want? 54 Key messages 54 So what do they want? 56 How do you give them what they want? 57 Summary 60 Chapter 6 What does the rest of the business want? 62 Marketing 62 Logistics 63 Finance 65 Purchasing 65 Human resources 67 The Board 68 Summary 70 Chapter 7 Problem resolution timescales 72 Basic principles 72 Reasonable timescales 73 Why time is so critical 74 Scale of tolerance 75 Repeat repairs 77 Mr and Mrs Angry 77 Summary 78 Chapter 8 Proposition design 80 Common sense 80 Timescales 81 Diagnosis and fault resolution 82 Parts availability 82 Multiple failures 83 Guarantee term 83 Loan equipment and products 84 Compensation 85 ‘Sorry!’ 85 Summary 86 Chapter 9 Supplier management and reverse logistics 88 Basic principles 88 Supplier management 89 Operational management 92 OEM suppliers and bought out guarantees 97 Claimbacks, contributions and cost recovery 100 Purchase terms and conditions 100 Vendor manuals and supplier specifications 105 Summary 107 Chapter 10 Aftersales operations 108 Basic principles 108 Repair operations 108 Repairs management 109 Testing and refurbishment of returns and exchanges 115 Aftersales and escalations managers 118 Escalation processes 122 Retail outlet support 126 Customer service teams 128 Summary 131 Chapter 11 Financial evaluation 132 Principal issues 132 Operational costs 133 Write-off and exchange costs 134 In-home repairs 143 Supply chain issues 147 Summary 150 Chapter 12 Reporting techniques 152 Overview 152 Product failures and faults 153 Reporting descriptions 153 Customer service standards 155 Exchange reporting 157 Operational reporting 165 Summary 177 Chapter 13 Example financial analyses 180 Overview 180 Exchange costs – non-bought out guarantee 180 Exchange costs – with bought out guarantees 183 Repairs costs – non-bought out guarantee 186 Repairs costs – with bought out guarantees 188 Combined costs 189 Exchange costs – potential savings 190 Repair costs – potential savings 191 Net projected savings 192 Summary 193 Chapter 14 Implementation and retaining the benefits 194 Setting the standards 194 Benchmarking 195 Planning principles 196 Suppliers and manufacturers 197 Short-term gains 198 Medium-term development 199 Longer-term projects and holding the gains 202 Summary 204 Chapter 15 Financial services 206 Fundamental principles 206 Extended warranty programmes 207 Consumer credit 209 Regulatory authorities 209 Summary 210 Chapter 16 Summary and conclusions 212 Financial gains 212 Consumer reputation 212 Staff self-respect and increased confidence 213 Supplier position 213 Stability and the opportunity for growth 214 Closing notes and comments 214 Appendix 1: Key actions for process improvement 216 Appendix 2: Further reading and key sources of information 218 Index 220 Title page......Page 2 Copyright ......Page 3 Contents......Page 4 Aftersales costs......Page 8 Why is it important?......Page 9 The ‘unnamed’ hole in retail finances......Page 12 Isn’t this just customer services?......Page 14 What about quality managers?......Page 15 Operating principles......Page 16 The book structure and who it is aimed at......Page 17 Summary......Page 18 General practice......Page 20 Service standards......Page 21 Suppliers......Page 22 Lessons to be learned......Page 24 Summary......Page 25 Key points......Page 28 Limitations......Page 29 ‘I know my rights!’......Page 31 Exchanges......Page 35 Repair versus replacement......Page 36 Guarantees and warranties......Page 37 Consumer rights in the United States and Canada......Page 38 Consumer rights in the rest of Europe......Page 41 Consumer rights in Australia and New Zealand......Page 43 Summary......Page 45 Overview......Page 46 Building a reputation......Page 48 Managing perceptions......Page 49 Difficult customers and practices like 'deshopping'......Page 50 Summary......Page 51 Key messages......Page 54 So what do they want?......Page 56 How do you give them what they want?......Page 57 Summary......Page 60 Marketing......Page 62 Logistics......Page 63 Purchasing......Page 65 Human resources......Page 67 The Board......Page 68 Summary......Page 70 Basic principles......Page 72 Reasonable timescales......Page 73 Why time is so critical......Page 74 Scale of tolerance......Page 75 Mr and Mrs Angry......Page 77 Summary......Page 78 Common sense......Page 80 Timescales......Page 81 Parts availability......Page 82 Guarantee term......Page 83 Loan equipment and products......Page 84 ‘Sorry!’......Page 85 Summary......Page 86 Basic principles......Page 88 Supplier management......Page 89 Operational management......Page 92 OEM suppliers and bought out guarantees......Page 97 Purchase terms and conditions......Page 100 Vendor manuals and supplier specifications......Page 105 Summary......Page 107 Repair operations......Page 108 Repairs management......Page 109 Testing and refurbishment of returns and exchanges......Page 115 Aftersales and escalations managers......Page 118 Escalation processes......Page 122 Retail outlet support......Page 126 Customer service teams......Page 128 Summary......Page 131 Principal issues......Page 132 Operational costs......Page 133 Write-off and exchange costs......Page 134 In-home repairs......Page 143 Supply chain issues......Page 147 Summary......Page 150 Overview......Page 152 Reporting descriptions......Page 153 Customer service standards......Page 155 Exchange reporting......Page 157 Operational reporting......Page 165 Summary......Page 177 Exchange costs – non-bought out guarantee......Page 180 Exchange costs – with bought out guarantees......Page 183 Repairs costs – non-bought out guarantee......Page 186 Repairs costs – with bought out guarantees......Page 188 Combined costs......Page 189 Exchange costs – potential savings......Page 190 Repair costs – potential savings......Page 191 Net projected savings......Page 192 Summary......Page 193 Setting the standards......Page 194 Benchmarking......Page 195 Planning principles......Page 196 Suppliers and manufacturers......Page 197 Short-term gains......Page 198 Medium-term development......Page 199 Longer-term projects and holding the gains......Page 202 Summary......Page 204 Fundamental principles......Page 206 Extended warranty programmes......Page 207 Regulatory authorities......Page 209 Summary......Page 210 Consumer reputation......Page 212 Supplier position......Page 213 Closing notes and comments......Page 214 Appendix 1: Key actions for process improvement......Page 216 Appendix 2: Further reading and key sources of information......Page 218 Index......Page 220 Aftersales Management in the Retail Sector explores the immense amount of money that is wasted in the retail industry every year on badly managed aftersales processes, and how to prevent this happening. What happens after the sale has taken place, if problems then occur? How are they dealt with, and what processes can be implemented to make sure that they are dealt with more cost effectively for the company, at the same time improving customer service and increasing sales?The book starts by describing some of the historical practices and then attempts to remove some of the myths of aftersales service by explaining the legal position on customer rights. It then moves onto trying to understand what customers wants, what sales people want and how these points interface with the needs of the teams within the rest of a retailer's company. From this, the next step is to design the new aftersales proposition and understanding of the key pressure point which is the time taken to resolve any problems. After this, the book moves onto implementation, explaining how to manage key stakeholders both within the business (i.e. the various business functions and departments) and outside (such as manufacturers and suppliers). There is a section on reporting systems and structures and there are worked examples to show readers just how much of a saving they can make if the changes are made. Finally, there is a chapter on how to both manage the implementation the necessary changes and more importantly hold onto the gains made. The book is of use in resolving the problems of any retailer but principally it is aimed at sellers of larger goods. Every year large sums of money are wasted by the retail industry on badly managed after sales processes. Aftersales Management shows how to create much stronger customer service with very little additional cost. It explores what customers want, what sales people want, and how these points interface with the rest of a retailer's company. It also discusses implementation, explaining how to manage key stakeholders both within the business (the various business functions and departments) and outside (such as manufacturers and suppliers). 'Aftersales Management' tackles the myths of aftersales service by explaining customer rights & offers advice on what customers want, what sales personnel want & how these points interface with the needs of the teams within the rest of a retail company