Collin, MacGibson, President of On-time Technology Products, recently returned from a Manufacturing Technology Conference in downtown Chicago. As a result of talking with leaders of other companies, he is now considering establishing a tiered service system, an idea he shared with Mar Graeff.

As a CSR, What is your initial reaction to this new-tiered service plan by Mr. MacGibson and what would be some advantages/disadvantages of going to a tiered service approach at On-Time Technology Products? Would there be a risk of losing some of your smaller clients by using the approach?

Whether or not OTTP decides on a tiered service plan, Mr. Mac Gibson believes they need more information from their customers. Based on the readings from Unit 4, suggest feedback tools they can use to be able to analyze customer services concerns before they escalate into bigger problems. How would you go about servicing small clients in an economical way using technology?

In order to be successful, make sure to address all the items on this checklist in your essay using a Microsoft Word document.

Proposed Tiered Service Plan:

Mr. MacGibson’s basic thought is to reward their B2B customers who give onetime technology Products $100.000 worth of business, an end-of –year “thank you payment” that reflects a 5 percent discount on all yearly purchases. In addition, those customers would receive a commitment to next-day turnaround time on the resolution of all customer service problems. Moreover, the customers who purchase $500,000 or more annually would receive a 10 percent discount and free delivery. The average B2B sale is $25,000.

Current Service Plan at OTTP:

Provide all customers, regardless of the amount of their purchase, frequency of purchase or dollar amount spent per year, the same special attention. Our theory at OTTP is that a customer who makes a small purchase today might make a large purchase tomorrow. All our customers receive the same price, convenience and service.

Checklist:

1. Analyze opportunities and problems of changing to a tiered service plan.

2. Examine what impact the proposed changes would have on the majority of current customers who buy less than $100,000.00 worth of product each year.

3. Discuss how the proposed change would impact OTTP’s level of commitment to customers who purchase less than $100,000.00 worth of product each year. Remembering the old philosophy of providing all customers, regardless of amount purchased with the same level of attention.

4. Compare and contrast the components of OTTP’s old customer service plan with the proposed plan.