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.. Questions: 1 . Industry: In 1990, who are the major companies in the copier industry? How large are they? Which segments of the industry are they focused on?
Where is the copier rarest In Its life cycle (does the position In the life cycle affect the usefulness of guarantees? )? Which of the 5 forces are most powerful? 2. Customers: What is the decision making unit and process for copier purchases? What is customer satisfaction in general? What is it for the copier customer? Why is customer satisfaction important to Xerox? What is important to different customers when buying copiers? Do customer preferences vary? 3. Customer Satisfaction Program: What are the important features of Xerox’s current customer satisfaction program? . 1 OFF guarantee. Qualitatively compare and contrast the suggested Xerox guarantee alternatives. Which do you recommend? Why? 5. Continuous Improvement: How does Xerox research and measure customer satisfaction? What would you recommend to improve the program? Xerox Questions 1 . What are the important features of the Xerox customer satisfaction program? 2. What is customer satisfaction? 3. Should Xerox offer a guarantee? If so why? 4. How does Xerox research and measure customer satisfaction?
“For Xerox equipment that uses a copy cartridge and sold by Xerox direct sales force ND agents, Xerox provides an extensive warranty (warranty periods differ by product) to our customers to ensure their satisfactory experience with Xerox products. This warranty covers all equipment repairs and provides for Xerox to dispatch a customer service engineer to the customer’s site in the event the equipment can not be repaired remotely. In addition, this warranty, coupled with Xerox Total Satisfaction Guaranty, allows customers, for any reason, to request a replacement unit if they are not satisfied with their equipment.
In order to ensure customer satisfaction, optimal equipment performance and equipment reliability, the Xerox warranty is predicated on the customer using Xerox copy cartridges. If a customer elects not to use the Xerox copy cartridge, Xerox will still offer the customer a low cost maintenance plan and will make every effort to ensure that the customer is satisfied with his or her Xerox equipment. Given the inconsistent quality of non-Xerox copy cartridges and the potential service costs involved with such copy cartridges, however, Xerox will not maintain the equipment under the warranty for free.
For non- copy cartridge Xerox equipment, the warranty on the equipment will not be void if competitive toner or inks are used. If Xerox determines, however, that such competitive inks or toners are the cause of the equipment malfunction, the customer will be responsible to pay for the service costs including replacement parts. Xerox commitment to our customers is to work very hard to avoid these unnecessary service costs. To accomplish this, Xerox service works hand-in-hand with our customers so they can see for themselves the overall value of using Xerox supplies. ”