Notes

Outline

Managing International Customers Rupan Khosla, B.E. MBA, (IIM Calcutta), Leeds Scholar Ex-CEO ION Information Technologies, UK

OnShore/Offshore Generating Customer Sales Managing Customer Services

Expectations ? !

Agenda Types of Customers Value Cycle Connecting with your Customers Cultural Differences Sales and Service Lifecycle - Another view Customer Service Paradigms Customer Sales Issues Outsourcing Internationally

Types of Customers Retail Corporate Technical

Value Cycle Needs Products/Services Buyer seller contract Delivery Voice of Customer

Similarities and Differences Time Selling Fundamentals Behavior

7 Customer Questions Will I talk Will I listen with an open mind Do I need the benefits Does the product/service give me the benefits Is this person the best source Is the price reasonable Why should I buy now Time is your enemy and friend

Connecting with your Customers Understand your message Listen Intently Ask Questions (Could you help me, Types of Questions) Speak Clearly Cross the Barriers Use Influence and Persuasion Negotiate Use Technology Use Body Language Use Self Talk

Understanding the Message Mission Message Objective Message Value message What are customers buying Why are they buying What do they want

Listening Intently  Builds trust  Listen as if you are deaf  Social listening  Comfort zone  English Vs Arab  Eye contact vs Side by side  Listen for the real meaning  Take notes,  Don’t be judgmental

Crossing the barriers Be precise in choice of words  Avoid difficult to decipher sounds  Speak slowly and enunciate  Minimize jargons, Idioms,  Slangs  Use short uncomplicated sentences  Keep it simple Use non verbal signs to convey meanings Do not embarrass, criticize,demand

Men and Women Content - money, sports, business Style – Solve problems, fix wrongs, compete to win Responses - Get to the point quickly Content- people, emotions, relationships Style – try to understand, support, connect Responses – more detailed

How to make use of this awareness ? Admit that differences exist Examine yourself for stereotypical thinking Explore differences Ask more or Assert more Reduce references and add references Avoid Sexual Humor

Slide 15

What is Culture?

Basis of Cultural Differences Relationships with People -Universalism vs Particularism -Individualism vs Collectivism -Neutral vs Emotional -Specific vs Diffuse -Achievement vs Ascription

Universalism Vs Particularism

Tips for doing business with.. Universalist (for particularist)  Particularist (for universalist)

Individualism vs Collectivism

Tips for doing business with..

Neutral vs Affective

Tips for doing business with..

Specific vs Diffuse

Tips for doing business with..

Ascription vs Achievement

Evolution of Customer Service 1950s - Distribution issues 1980s – Marketing Mix Present – Relationship Marketing What is customer service ? Product attributes + Pre-purchase and post-purchase elements Product is what it does + other benefits received It is  not a constant but a variable across markets Flow Goods and Project Business (Fig 1)

Customer Service issues – A Macro Perspective Elements of customer service vary based on phase and type of business It involves most functions in an organization Marketing Dynamics of Customer Retention (Four Quadrants)

Customer Service Paradigms Lesser Contact Cross Cultural communication Remote Vs Face to face contact Customer expectations are rising Complex modern business are relying on skills and knowledge of people Power of information technology lies at the heart of most businesses

Customer Service Paradigms Conflict management in Geographies Customer Centric View internally Generic problems  Product vs Non product aspects Realigning internal activities Marketing Dynamics (Cable, Credit card) Adoption of   IT in Customer Service Customer as Participants ( IKEA, Time Life) Dissemination of Customer Oriented Strategy to Customer Contact Service Employees

Adoption Process of IT in Customer Service Non Players - not using IT in Customer service Making use of IT in Distribution, automate billing/collection Use of Information sources and databases (Internal), no integrated common system IT is used to transform Customer Service into Strategic activities

Factors effecting progress through various stages Degree of information orientation Use of external and internal information Use and extent of databases Level and extent of Computer applications Connectivity and flexibility of IT applications

Customers as Participants Personal interactions in service encounter create satisfied customers Observable oral participation Between customers and contact people Amongst customers Staff training emphasizes facilitation skills Negative exchanges need to be monitored

Dissemination of Customer Oriented Strategy to Employees Align control mechanisms with strategy Formalization  Empowerment  Behavior based evaluation Work Group Socialization

Customer Sales Issues Similarities and Differences Global Account Management Value Model focus Changing Marketing Roles IT Enabled Marketing Relationships Outsourcing Internationally

Global Account Management Strategy – selecting and managing Global Account Relationships Increase sales Prevent price arbitrage Joint innovation Assessing the Balance of Power Strategic Importance Marketing and Sales Strategy Top Executive Support Implementation – Incentive structure, Right Managers, Strong support network, multiple support levels

Global Account Management - Camps Ahead of your customers Same speed Slower

Value Model Focus Time based competition in PC industry Market forecasting drives production High Inventory costs Cash to cash cycle long

Dell Direct with customers Additional advantages – Custom software for inventories, ordering upgrades, payment via Internet 6% cost advantage, Detailed knowledge about customers Easy to do business with (Boeing) Call Center service for TPMs Internet sales US$ 14 Million per day by 1999 IT Architecture change from Sap to G-2 (Browser, Applications layer, Message broker, Database) Days of inventory ( 1994-32, 1998-6) Production cycle time 7 hours, order turnaround 7 days, Cash conversion  minus 8 days, SG&A declined from 15% in 1993 to 9.8% in 1998

Changing Marketing Roles International Business and IT Enabled implications Past -Markets were growing and Technology was predictable Present – Brand/image building, marketing communications, customer service, loyalty programs are still important Marketing skills in negotiation, inter-organizational coordination and conflict management also highlighted Marketing on behalf of consumers as opposed to Marketing to consumers

IT Enabled Market Relationships Relationship orientation Integrated and aligned processes Deep knowledge of customer

Outsourcing Internationally Some experiences

Structuring Deals Clearly define the results the buyer wants to achieve Put in place clear, objective service level specifications to measure results Build flexibility into the contractual documents Align suppliers interests with the results that are key to the buyer Provide an effective governance structure to manage the ongoing relationship

Advantages and Disadvantages Significant savings in labor costs Time zone differences Corporate and country culture  differences Higher quality of skills Motivated workers who are career oriented Additional upfront costs because of distance Time zone differences Corporate and country culture differences Contract jurisdiction if litigation becomes necessary

Learnings Start slow ( focus, learn, pick up speed) Understand systems ( testing etc) Knowledge Transfer Be Flexible Put in place a mechanism for status/management reporting Document things with context Remote access to offset distance disadvantage Processes to be shared and structured to ensure tighter control