Do Business Well

Firms use a number of approaches in meeting customers‘ after-sales support needs, namely those which may be classified as product or design-related, those which concentrate on the support system, and those which concentrate on reducing uncertainty.

Product or design-related strategies

There are three possibilities:

• Product reliability improvement

Here the objective is to lower the customer’s total costs. This is almost always the first approach used by firms.

• Modular design

The entire product is divided into a series of modules which can be repaired or replaced. This helps lower variable costs by making the product easier to repair, a tactic now used by motor car manufacturers. A damaged bumper and the undamaged components with which it forms a system, may simply be replaced by a completely new system.

• Built-in redundancy

In this case, the product has two or more of a critical component. If one fails, the backup takes over. For example, cars have dual braking systems. If the footbrake fails you may use the handbrake.

• Support-related strategies

These strategies concentrate on changing the way in which service is provided. They can be grouped into the following categories:

• Improvement in response time

Companies can improve the speed with which the support system reacts to a failure by making service technicians available, moving them closer to customers and providing rapid handling of emergency parts orders.

• Reductions in product repair time

The aim is to reduce actual repair times by providing improved service technician training, diagnostic equipment and fully equipped mobile repair vans.

• Strategies to reduce customer risk and uncertainty

The objective is to improve after-sales support and customer satisfaction by controlling or even eliminating the potential for financial loss caused by product malfunction. These strategies may be divided into the following categories:

• Warranties

These are used to reduce the customer’s out-of-pocket costs during the immediate post-purchase period and to allay any fears customers may have regarding product reliability.

• Service contracts

Service contracts help to reduce buyers’ uncertainties about maintenance costs. Contracts can be obtained on most types of equipment and there are many options open to customers.

• Information

Information should be freely available to customers; instruction manuals and brochures are not enough. Many customer problems and complaints are caused through product misuse and even abuse. Customers are entitled to, and should receive, accurate and friendly after-sales information at all times.

• Spares

The supply of spares, particularly for ageing equipment, is a major and never-ending source of customer anxiety. Many customers are exploited by suppliers who charge excessively high prices for spare parts and insist on one-sided service contracts.

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