The customer service level (CSL) of a company is the overall level of responsiveness and care that its customers receive. This will vary based on the individuals and the services you offer. For example, if your company gives financial advice, then you will probably want to project a higher level of care than if you sell cosmetics.
That being said, the ideal CSL of any company is one that is consistently available, helpful, and respectful. It is also one that has clearly set expectations and expectations are kept. This will make sure that you are consistently providing the level of care that you are aiming for.
What is customer service level?
Customer service level is also important for building loyalty among your customers. This is because a company that is consistently available and helpful is more likely to retain customers than one that is not.
The more customers you retain, the more business you will bring in. This will also help you reduce your operating expenses. With a low customer service level, you will likely have to spend more money to keep your customers happy.
In a worst case scenario, customers can become so frustrated that they decide to leave your company for another. Consider this when developing your customer service level strategy.
Customer service level is the overall level of responsiveness, care, and helpfulness that you show your customers. This can be broken down into several categories, including:
– Availability
– Product Knowledge
– Caring – Respectfulness
– Courtesy
How to define customer service level?
The customer service level is a target in a business model. It’s the result of the inventory holding cost (h) and the backorder (b) or lost sales. The first one is the opportunity cost of investment in the product.
You get the inventory holding cost by multiplying the cost of the product (c) by the rate of return (r), that gets the period (h).
The second one is the opportunity cost of the demand the company can’t cover. It must consider profit margin, penalty and cost in the negotiation, direct labor costs and unexpected costs. But you need to consider how long is the lead time (T) for the period you are holding inventory.
So, the general formula for CSL is
CSL = b/(b+hT)
What are the customer service expectations?
Customer service expectations are how you set the bar for how your customers should receive their products and services. This have seven different categories, including:
– Price
– Quality
– Shipping
– Keeping promises
– Returning items
– Other factors
What are the responsibilities?
Customer service responsibilities are how you show that you are meeting your customer service expectations. These include:
– Responding promptly to emails
– Giving accurate information
– Ensuring that all orders are accurate
– Satisfying customers with the quality of work
Conclusion
Customer service level is an important factor to consider when establishing your customer service strategy. It will help you to build loyalty among your customers by showing them that you are available when they need you. This will help to keep them as customers and reduce your operating expenses. Setting expectations and meeting them will also enable you to retain them as customers.
