1. After Sales Service
INDRANIL BHADURI
buyindranil@gmail.com

2. Why After Sales Service ?
• Economic Times :07-07-2010 India
77 per cent of Indian consumers asserting that they will NOT
make a repeat purchase or continue with a company's services in
case of a bad experience

3. Economic Times :07-07-2010 India
"Customers want and expect high-quality service, especially as
they focus on getting good value for their money in a difficult
economic environment, and are willing to spend more with those
that deliver excellent service -- suggesting substantial growth
opportunities for businesses that get customer service right,"
American Express VP & GM ( World Service India)
Pradeep Kapur

4. Economic Times :07-07-2010 India
• As per the findings of the American Express Customer Service
Barometer, 76 per cent of Indian consumers are ready to shell
out 11 per cent more for excellent customer service. In
fact, 67 per cent of consumers have paid more for a product or
a service of a company with a good history of customer service.

5. Economic Times :07-07-2010 India
86 per cent of the consumers are READY TO GIVE A SECOND
CHANCE to companies with a good track record EVEN AFTER
A POOR EXPERIENCE

6. Economic Times :07-07-2010 India
While the buying decisions of 89 per cent of Indian consumers
are influenced by convenience and 90 per cent of them attach
importance to value-for-money propositions, the majority of
consumers (90 per cent) make their purchases based on the
quality of customer service

7. Economic Times :07-07-2010
• If the company is successful in satisfying its customers in terms
of service, it gets the benefit of word-of-mouth publicity.
About 95 per cent of consumers give positive reviews about
companies in case of good service in contrast to 77 per cent
who speak negatively after a poor experience

8. Aim and Objectives
After the session is over ,you should be able to
• Explain the difference between Customer Service &After Sales
Service
• Describe how After Sales Service works
• Describe the role and functions of Marketing,Logistics ,Finance
and Retail
• Outline Reporting Technique and Escalation Matrix
• Understand Steps for Process improvement

9. Customer Service Vs After Sales Service
• CUSTOMER SERVICE :
Customer service is the provision
of Service to Customers before, during and after a purchase.
• AFTER SALES SERVICE :
Periodic or as required MAINTENANCE or REPAIR of
EQUIPMENT by its MANUFACTURER or SUPPLIER ,during or
after a WARRANTY PERIOD

10. History Of After Sales Process
Buyer Beware

11. Facts
• After sales issues are very expensive unless carefully
controlled
• The cost of an exchanged product is ALMOST ALWAYS
SUBSTANTIALLY MORE THAN THE SELLING PRICE
OF THE GOODS

13. Chinese Cartoon Who said there is no "after-sales
service"? Some developers

14. the battery did not charge even after I inserted it
into the laptop

15. General Principles
The most common issue for customers is the LENGTH OF TIME
that it takes to resolve their problems

16. Legal Aspects I KNOW MY RIGHTS
• What rights do customers actually have?
• What is the significance of a retailer or manufacturer
guarantee?
• Who is responsible for refunds, repairs and replacements?

17. Sale Of Good act
1930

18. Sale Of Good act 1930
In this Act, unless there is anything repugnant in the subject of
content
1. „buyer" means a person who buys or agrees to buy goods
2."delivery" means voluntary transfer of possession from one
person to another.

19. Sale Of Good act 1930
• Sales Contract?
A contract of sale is made by an offer to buy or sell goods for a
price and the acceptance of such offer. The contract may
provide for the immediate delivery of the goods or immediate
payment of the price or both, or for the delivery or payment
by installments, or that the delivery or payment or both shall
be postponed

20. Sale Of Good act 1930:Price
The price in a contract of sale may be fixed by the contract or
may be left to be fixed in manner thereby agreed or may be
determined by the course of dealing between the parties
Where the price is not determined in accordance with the
foregoing provisions, the buyer shall pay the seller a reasonable
price. What is a reasonable price is a question of fact
dependent on the circumstances of each particular case.

21. Sale Of Good act 1930 Condition and Warranty
A stipulation in a contract of sale with reference to goods which
are the subject thereof may be a condition or a warranty
A warranty is a stipulation collateral to the main purpose of the
contract, the breach of which gives rise to a claim for damages
but not to a right to reject the goods and treat the contract
as repudiated.

22. Sale Of Good act 1930 damage for non delivery
• Where the seller wrongfully neglects or refuses to deliver the
goods to the buyer, the buyer may sue the seller for damages
for non-delivery.

23. Sale Of Good act 1930 damage for non acceptance
• Where the buyer wrongfully neglects or refuses to accept and
pay for the goods, the seller may sue him for damages for non-
acceptance

24. Reasonable time a question of fact
• Where in this Act any reference is made to a reasonable
time, the question what is a reasonable time is a question of
fact.

25. Sale Of Good act 1930 remedy for breach of warranty
Where there is a breach of warranty by the SELLER, or where
the BUYER elects or is compelled to treat any breach of a
condition on the part of the seller as a breach of warranty, the
buyer is not by reason only of such breach of warranty entitled
to reject the goods

26. Sale Of Good act 1930 remedy for breach of
warranty
Buyer may Sue the seller for damages for breach of warranty

27. Sale Of Good act 1930 damages for non delivery
• Where the seller wrongfully neglects or refuses to deliver the
goods to the buyer, the buyer may sue the seller for damages
for non-delivery

28. Sale Of Good act 1930 Buyer not bound to return rejected goods
Unless otherwise agreed, where goods are delivered to the buyer
and he refuses to accept them, having the right so to do, he is
not bound to return them to the seller, but it is sufficient it
he intimates to the seller that he refuses to accept them

29. How stoppage in transit is effected
• Whether notice of stoppage in transit is given by the seller to
the carrier or other bailee in possession of the goods, he shall
re-deliver the goods to, or according to the directions of, the
seller. The expenses of such re-delivery shall be borne by the
seller

30. INTEREST BY WAY OF DAMAGES AND SPECIAL DAMAGES
• Nothing in this Act shall affect the right of the seller or the
buyer to recover interest or special damages in any case
whereby law interest or special damages may be recoverable, or
to recover the money paid where the consideration for the
payment of it has failed

31. In the absence of a contract to the contrary, the Court may award interest at such rate
a it think fit one the amount of the price
• to the seller in a suit by him for the amount of the price.-
from the date of the tender of the goods or from the date on
which the price was payable.
• to the buyer in a suit by him for the refund of the price in a
case of a breach of the contract on the part of the seller- from
the date on which the payment was made

32. Check Your Understanding

33. Exchange
„Dead on arrival‟ (DOA)
almost all retailers will allow an exchange if the goods are
damaged or not working when they are delivered.

34. Suppliers:3 types
Big Brands :Tell the retailers what to do and will not generally
deviate
Medium Sized Companies will try to accommodate the retailers and
try to retain enough margins to enable a fairly flexible policy
on returns
Original Equipment Manufacturer(OEM):Operate on Bought Out
Guarantee retailer not worried about “a few exchanges”

35. Repair
What this means in practice ?
A customer can demand a replacement rather than a repair or
refund during the first six months after purchase unless the
retailer can prove that the goods did indeed conform to
contract, or unless the retailer can prove that a repair can be
carried out quickly and at substantially less cost

36. Refund
Retailers will normally resist giving refunds for two reasons:
Lost sale
Lost Value

37. GUARANTEE
• AGREE to be responsible for another's debt or contractual
performance if that other person does not pay or perform.
• Usually, the party receiving the guarantee will first try to
collect or obtain performance from the DEBTOR before trying
to collect from the one making the guarantee (GUARANTOR)
• The promise to pay another's debt or fulfill contract obligations
if that party fails to pay or perform
• A Promise To Make A Product Good If It Has Some Defect

38. WARRANTY

39. Consumers Rights in India
ITS HOT……CONSUMERS RIGHTS
IN INDIA

40. What do Customers Want?
Almost everyone in Business is trying to figure out What do
Customers Want?
The answer is generally very simple
a good-quality product, and to be treated fairly if there is a
problem with the product.
That‟s easy, then, so why does it go so wrong?

41. so why does it go so wrong? …
• Ironically, if the various consumer protection acts were a little
clearer and more definitive then customers would probably be less
demanding
• Some of the biggest reasons are
• 1.Fear :What if our competitor knows it and apply the same ?
• 2.Lack of understanding :marketing department hardly knows how
the after sales work and vice versa
• 3.A belief or understanding that their capabilities are perhaps less
than perfect

42. Back Bone of After Sales service
• Fast response to problem resolution
• Dependability
• Flexibility
• Diagnostics and first-time fix rate: simple to use self-help
procedures
• Compromise
An ability and a willingness to meet customers halfway is a very
powerful asset in after sales care

43. Back Bone of After Sales service
Information
Resolution timescales
To generate real credibility, companies must publish and stick to
set timescales for time to complete

44. What do Sales People Want?
Essentially, sales staff want the same things that customers want

45. PROCESS DESIGN
5 keys
ONE check basic functionality
TWO collect all accessories
THREE make sure that the customer has contacted the service
desk
FOUR check guarantee validity
FIVE Check for misuse

46. PROCESS DESIGN contd..
Data recording
Escalation processes

47. Escalation Process
• Most important tool
• Route to reach the suppliers and manufacturers

48. Escalation Matrix

49. Problem Resolution Timeline
• REASONABLE TIMESCALES
• TIME TO RESPOND –ensure a prompt response(Call Centre)
• FIRST-TIME FIX: realistically it is usually not possible for a
repairer to visit immediately(Electrical :20-60%,Furniture
:80-90%)

50. REAL SCENARIO : CUSTOMER SCALE OF TOLERANCE
• Day 1 :Customer Frustrated but understanding
• Day 2 to 7:mildly agitated
• Day 8 to 14:geninely frustrated ..regular calls
• Day 15 to 21:Losing patience
• Day 22 to 30:Agry Customer and calling everyday
• Day 29 and Over :Furious and threats of legal action

51. Mr.Vs Mrs Angry
Role Play

52. Supplier Management
This is the area that most retailers get wrong:
„It‟s all your fault‟
„It‟s not our fault‟

53. Questions Retailers ask….
customer name
customer address
customer telephone number
brand
model number
product group
date of purchase
date of delivery (if major difference)
date of exchange
fault history
most recent fault description
reason for exchange

54. Questions Retailers ask….
delivery number (if appropriate)
consignment number (if available)
store or outlet name/number
name of person requesting exchange
store authority number
In Home or In Store
date of collection
replace or refund
repairer name (if appropriate)
Supplier Management and Reverse Logistics
age when exchanged (days)
supplier exchange reference number.

55. Questions supplier ask….
• How old it is?
• What went wrong?
• Why it was replaced?
• What was the background to this and why was it not simply
repaired?
• Under what authority the retailer is expecting to return it to
the supplier?

56. Logistics : Forward Logistics

57. Logistics : Reverse Logistics

58. Check Your Understanding

59. Forward –Reverse

60. Difference Between Forward and Reverse Logistics

61. 8 Frequently Used Words in Customer Complain
Not working‟
„Not working properly‟
„Dead‟
„Faulty‟
„Noisy‟
„Uncomfortable‟
„Faulty‟
„Broken‟

62. Reporting Technique

63. Work It out
• Exchange costs – non-bought out guarantee
• Exchange costs – with bought out guarantees
• Repairs costs – non-bought out guarantee
• Repairs costs – with bought out guarantees
• Combined costs
• Exchange costs – potential savings
• Repair costs – potential savings
• Net projected savings

64. Beyond Economic Repair(BER)
State of a repairable item where its estimated repair
cost significantly exceeds a certain percentage (typically
80 percent ) of its replacement value

65. Dead on Arrival (DOA)
(Medical) Dead on arrival or D.O.A. (also dead in the field) is
a term used to indicate that a patient was found to be
already clinically dead upon the arrival of professional medical
assistance, often in the form of first responders such
as emergency medical technician. paramedics or police
D.O.A. is also frequently used as slang to indicate a new item
that was received broken, or that an idea or concept is a
nonstarter

66. Dead on Arrival (DOA)

67. Entry Price Point Goods

68. Original Equipment Manufacturer(OEM)Bought Out Guarantee (BOG)
Goods direct from the factory gate
OR
Through a handling agent
OR
distributor for their ENTRY PRICE POINT and BUDGET SALES
LINES
guarantee is sacrificed in exchange for higher margins (ie the
buying-in price is reduced)

69. Supplier Specification
• Dimensions
• General properties
• Colors
• Transport conditions including packing within containers
• Boxes and protection
• Consignment size and make-up
• Parts and accessories

70. EXTENDED Warranty
3 key drivers of extended warranty costs
1.Frequency of claim
2.Average labor costs
3.Frequency of parts replacement and net cost of parts

71. Pareto Principle

72. Check Your Understanding
Quiz Time

73. After sales Service –Mercedes Benz
https://portal.aftersales.i.daimler.com/public/content/asportal/e
n/home.html

74. BMW after sales service
• http://www.bmw.com.my/com/en/general/bmwowners/after_s
ales/after_sales_03.html

75. After Sales Service
INDRANIL BHADURI
buyindranil@gmail.com