Service - the new product

Where product meets service



A computer may be sold as a product, but the AMC that comes with it is a service. The
period of service contract is an important consideration before settling the deal.

Therefore, what was traditionally considered to be a product offering is now a hybrid. As

a corollary, services like Internet access and cellular phone connections are gaining

product status. A new Internet account is a CD-ROM on the shelf of your favourite

bookstore. A few more hours on the cellphone is a simcard.

'Productising' services and selling them in colourful packages blurs the line that

distinguishes products from services. Since the quality of Internet service does not vary

significantly from one ISP to another, a better way to rate them would be by their

'products'. How easy is it to get an Internet subscription disc? How quickly can I get

onto the Net? How accessible is the helpdesk?

Big expectations, bigger disappointments



In a recent online poll, 67% of the 5000+ respondents felt that private ISPs can provide
better service than VSNL. This is only indicative of the high level of expectation that

customers expect of private ISPs.

Data Quest's Customer Satisfaction Audit '99 exposes an interesting trend. There

is an inverse relationship between importance of the service and satisfaction levels. When

a certain parameter is important, the expectation level for that parameter will also be

very high, and hence the probability that satisfaction levels may remain relatively low.

Disgruntled customers of VSNL swore that they would sign up with the first private ISP to

arrive on the scene. They thought that the quality of service couldn't get any worse than

what it was.

However, the responses CIOL received for its review of ISPs confirmed otherwise. Being

"India's first private ISP" means nothing. Ultimately, it is service that

matters. When we offered to forward reader responses to them, we got a one-line reply

after 10 days - they gave us the postal address of their Chennai office. One would expect

an ISP to have heard of electronic mail. Incidentally, the most often received complaint

was against the support services (or the lack of it, rather).

Help yourself to better service



Services are looking towards the Web for not just speed of delivering, but also reduced
cost per transaction. This comes about by eliminating the human factor in support service.

IBM recently announced their series of Web self-service solutions. Customers can retrieve

information using any standard Web browser from home, office, or when on the move. The

cost of customer support through web-based applications is microscopic when compared to a

voice-response unit or human interaction. Forrester Research predicts a 43 percent drop in

call-centre labour costs in companies that implement Internet-based service between

now and 2000. Without Internet solutions, the same labour cost can go up by 3 percent.

Concrete steps



HP has launched a self-help Web site especially for its resellers. Resellers can know
about new products, and place orders through the web site. Citibank probably demonstrates

the best example of self-service solutions in India. Customers can get all their work done

at the ATMs or on the Internet site.

Decentralising support services means that cost of support is passed on to the

customer. That’s not too bad because customers would rather receive their bank

statement on their fax machines in an instant than wait a couple of days for it to be

mailed to them. The bank saves on overheads, and the customer is satisfied. Isn't that

what really matters?