Question

Case 1: Use of Technology Federal Express (FedEx) was founded about 50 years ago. It handles on an average of 3 million package-tracking requests on a daily basis. To remain ahead of its competitors, FedEx strives on customer service by keeping a comprehensive website, FedEx.com. It increases customer service and reduces costs. For example, each request for information which can be retrieved from the website rather than by the call centre help FedEx to save an estimated $1.87. The costs for FedEx have been reduced from more than $1.36 billion per year to $21.6 million per year by customers using the website instead of the call centre calculating each package-tracking request costs Federal Express 3 cents. Another know-how that improved its customer service is Ship Manager, an application installed on customers’ sites so users can determine shipping charges, weigh packages, and print shipping labels. Customers can also tie their invoices, billing, accounting and inventory systems to the application, Ship Manager. Nevertheless, Federal Express still spend almost $326 million annually on its call centre to reduce customers’ annoyance when the website is down or when customers have difficulty using it. It uses CRM software called Clarify in its call centres to ensure customer service representatives’ job easier and to speed up response time. Answer the following questions: a) What is the importance of technology to ensure high-quality customer service? b) Can you estimate Federal Express’ annual savings from using information technology? c) Can you give a few examples of information technologies used by Federal Express? d) What is the role of the application ‘Ship Manager’? e) Your overall observations and learning from the above case study..

Answer 1

a.

• Technology enables faster and better service that customers demand: The most important role of technology in customer service is that it helps to increase the speed of customer interactions. Customers no longer need to wait on hold on the phone to speak with a representative. Instead, live chat on company websites enables organizations to help customers as soon as they show interest.

• Technology helps you to improve customer experience : Technology gives you the ability to interact with customers on a daily basis. You can gather as much information as you want from the customers including their feedback for the current services and campaign and Hence use them for upcoming campaigns. Encourage active engagement with your online followers. Reach out to your target audience. Find out exactly what they want. Don’t take criticisms in a negative light, but as an opportunity to improve.

• Technology helps accelerate customer loyalty : Technology can help you create loyalty programs, and once it’s set up properly, it allows for automation that helps form a lasting, continuous relationship with your target customers. As long as you continue to pay attention to what they want, and implement their feedback promptly, they’ll stick around and even help spread the word about your business.

b.)

1. Cost Saved by FedEx for information can be retrieved from the website rather than by the call centre help FedEx to save = $1.36 billion - $21.6miilion = $1.33 billion
2. Calculating each package-tracking request costs Federal Express 3 cents.
3. Aveage no. of package-tracking requests daily = 3 million
4. Cost to FedEx for package-tracking requests = $90000
5. Aprrox. Annual Saving by FedEx using information technology= $1.33 billion - $90k - $326 million(spent on customer care) = $1billion

c.)

• A comprehensive Web site, www.FedEx.com, where it assists customers and reduces costs
• Uses customer relationship management software called Clarify for improving customer service
• Website where customers can track their packages.
• Ship Manager, that allows users to weigh packages, determine shipping charges, and also the ability to link invoicing, billing and accounting to Ship Manager

d.) Ship Manager, that allows users to weigh packages, determine shipping charges, and also the ability to link invoicing, billing, inventory systems to the application, and accounting to Ship Manager.

e.)

Observations and Learning

• Technology can help you in growing as much as you want by help you engage more customers, take care of the current customers and help in knowing what customers wants.
• Alone technology is worthless, you need properly trained staff for using it in a effective way.
• Technology can help you decrease your current bussiness costing by a huge margin and help you give customer even more better experience.
• For a business to grow, the most important factors are reducing cost of services, happy customer and quality services.