Developing Customer Service Policies

Customer service levels are seen as the linchpin of an effective marketing logistics strategy for any company. Careful consideration is given to the components of customer service and each element is examined to identify its cost and revenue aspects. Segmented customer service policies are reviewed and taxonomic criteria proposed. The trade‐offs within the total logistics mix which are concomitant with changes in service offered are examined. Equally, a distinction is drawn between subjective service levels (i.e., displayed availability at point‐of‐purchase/use) and objective service levels. Control procedures to monitor the operational management of service levels decided upon are enumerated and procedures for interpreting customer complaints described. Experimental approaches are proposed by which managements can seek to move towards more cost effective service policies.