A Major Project Report on
CUSTOMER SATISFACTION AND LOYALTY IN LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD
Submitted in partial fulfillment of the requirements for BBA (General) programme of Guru Gobind Singh Indraprastha University , Delhi
Submitted by Chinesh Yadav BBA (GEN) Semester-VI Enrol. No.: 06012201710
Delhi College of Advanced Studies B-7, Shanker Garden, Vikaspuri New Delhi-110018
DECLARATION (Font: Times New Roman, 16, Bold, Upper Case, No underline) I, hereby declare that this Major Project Report, entitled “CUSTOMER SATISFACTION AND LOYALTY IN LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD” is an authentic work carried out by me. It has not been submitted earlier for award of any degree or diploma to any institute or university.
Place: New Delhi
Candidate’s signature
Date:
Name: Chinesh Yadav Enroll. No.: 06212201710
Countersigned
Name : Supervisor Delhi College of Advanced Studies
ACKNOWLEDGMENT An independent project is a contradiction in terms. Every project involves contribution of many people. This project also bears the imprints of many people and it is a pleasure for me to acknowledge and thank all of them. I am deeply indebted to Mam Shitika
who acted as a mentor and guide, providing
knowledge and giving me his/her valuable time out of his/her busy schedule, at every step throughout the project. It is only because of his/her this project came into being. I also thank Prof.___________________, Director of Delhi College of Advanced Studies, for providing an opportunity of doing this project under his leadership. I also take the opportunity to express my sincere gratitude to each and every person, who directly or indirectly helped me throughout the project and without anyone of them this project would not have been possible. The immense learning from this project would be indelible forever.
Name: Chinesh Yadav Enrl no.: 06012201710
TABLE OF CONTENTS S.No. 1
Topic Declaration
2
Acknowledgement
3 4 5 6
Executive Summary List of Tables List of Figures Chapter-1: Introduction
7
ii iii iv v 1-15
•
Overview of Industry as a whole
1
•
Profile of the organization
3
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History of the Organization
5
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Competitor’s Information
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S.W.O.T Analysis of the Organization
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Objectives of the study
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Scope of the study
• Methodology Chapter-2: Conceptual Framework •
8
Page No i
7 10 15
16-25
Main topics & Sub Topics
Chapter-3: Data Analysis and interpretation
26-31
• 9
10 11
Chapter-4: Summary and Conclusion •
Results of the study
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Limitations
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Suggestions and Recommendations
Bibliography Appendix
32-40
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CHAPTER I INTRODUCTION
• Overview of Industry as a whole A multitude of companies today has already identified the need to create a loyal customer base and acknowledges that maintaining existing customers and extending business with them is significantly less expensive than acquiring new customers. Empirical proof of the proliferation of such customer loyalty efforts in the business world is e.g. provided in the form of loyalty programs, which many companies have installed during the past years. By engaging in efforts aimed at creating customer loyalty, which in turn fosters financial success in monetary terms firms react to increasing competitive challenges. Within research, the investigation of customer loyalty gained importance when the classic marketing paradigm with its instrumental and transactional orientation proved unsuitable in the context of longer-term business relationships. Instead, the relationship marketing approach, which is specifically concerned with the study of relational ex-changes, gained importance within research, serving as a conceptual foundation for the majority of customer loyalty researchers. The question of how loyalty develops has been subject to an abundance of research, leading to an expansive body of literature on loyalty determinants. The extant literature exploring different factors and their constituent effects on loyalty, however, reveals a strong focus on consumer goods and industrial equipment settings, while industrial services have received relatively little attention so far. In addition, the majority of articles incorporates merely a few
potential determinants and thus fails to draw a comprehensive picture of the mechanisms of customer loyalty formation. Place: Chennai Just like other businesses, logistics service providers (LSPs) are faced with increasing competitive pressure that urges them to concentrate not only on operational business processes, but also on an efficient and effective customer management. In the US alone, LSPs’ revenues grew from US-$ 31 billion in 1995 to US-$ 85 billion in 2004 and logistics outsourcing expenditures as a fraction of total logistics expenditures are at over 40% and expected to rise even further. One way to meet this challenge of rapid growth and expansion, according to Langley et al. is to focus on establishing, maintaining, and developing relationships with customers. An often proposed driver of logistics outsourcing is the need to develop and maintain competitive advantage, which customers of LSPs intend to achieve through concentrating on core competencies and re-engineering. Another important driver is the ongoing globalization, which several authors regard as the most important challenge that companies are facing. In this context, LSPs can play an important role as facilitators of global trade. Along with globalization, however, companies that outsource logistics activities increasingly try to consolidate the number of LSPs they use globally. Therefore, LSPs do not only have to
devise sustain-able growth strategies, but also have to develop intercultural management competencies, a challenge hardly ad-dressed in LSP management literature. While intercultural management deals with the influence of culture on management styles in different countries, it is also arguable whether a one best way management paradigm is applicable even within national confines. LSPs’ customers are extremely diverse and similarly, relationships between LSPs and their customers can be expected to exhibit momentous differences. As such, it is a crucial management issue for LSPs to de-sign their customer loyalty efforts in a manner that accounts for both cultural context and different relationship characteristics.
Research goals As outlined in the preceding section, LSPs are confronted with diverse management challenges that result from continuous growth, globalization, and customer diversity. The aim of the present study therefore is to identify determinants of customer loyalty in relationships between LSPs and their customers by explicitly considering different characteristics and cultural contexts of such relationships. In this sense, the present research is positioned at the interface of marketing and logistics and is intended to contribute not only to logistics research, but also to research in marketing, customer loyalty, and cultural studies. In order to address the concept of customer loyalty, it is important to understand the mechanisms underlying loyalty in the logistics outsourcing context. For this reason, the
starting point of the present research will be the study of Wallenburg, who studied customer loyalty within relationships between LSPs and their customers. On this basis, factors that can be surmised to determine customer loyalty in such relationships will be proposed and interdependencies between these factors will be identified. The resulting comprehensive explanatory model of customer loyalty will not only provide insights into the constitution of customer loyalty, but will also serve as the basis for subsequent analyses. As stated previously, a globalizing marketplace and the need of LSPs to render logistics services on an international scale requires intercultural management competencies. Before being able to apply such management techniques, though, a thorough understanding of cultural differences between different countries is necessary. The present study will therefore provide a starting point for such analyses by investigating cultural differences between two important markets for logistics outsourcing, the USA and Germany. Particular differences between Germany and the USA will be identified and applied to the previously devised customer loyalty model. As a result, differences between the two countries with respect to the formation of customer loyalty can be inferred. Finally, this study will investigate in how far different relationship conditions influence the development of customer loyalty. For this purpose, important relationship characteristics will be identified and their moderating influences on the customer loyalty model will be examined. This will provide information on the robustness of the customer loyalty model
versus relational contingencies and will suggest if it is necessary to differentiate customer loyalty efforts accordingly.
Customer Satisfaction The term logistics is often misinterpreted to mean transportation. In fact, the scope of logistics goes well beyond transportation. Logistics forms the system that ensures the delivery of the product in the entire supply pipeline. This includes transportation, packaging, storage and handling methods, and information flow. The impact of logistics in the ability of a company to satisfy its customers cannot be overstated. All other efforts at modernization within a company would not bear fruit until the logistics system is carefully designed to facilitate the smooth and efficient flow of goods in the system. The topic of logistics is relatively new in India. There have been some companies that have done work in this area, but a large number of companies are only now beginning to realize the benefits of designing and managing the entire supply chain. With India joining the global marketplace,
the
role
of
logistics
assumes
greater
importance.
The industrial policies in India have prompted manufacturers to build plants in remote, backward areas due to inexpensive land and tax benefits. This poses some serious logistical problems. Apart from a poor road and transportation network, the existing communications system in India leaves a lot to be desired by any international standard. It is in this context that logistics has to be considered in India.
Customer Satisfaction in 7 Steps 1. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. 2. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. 3. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful. 5. Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued. 6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. 7. Honour Your Promises It's possible this is the most important point in this article. The simple message: when you promise something, deliver. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go a miss.
Customer Loyalty Obtaining a thorough understanding of customer loyalty is a prerequisite for the execution of the research at hand. For that, the development of customer loyalty research within the framework of relationship marketing will be presented first, before different customer loyalty concepts will be introduced. From these concepts, a definition of customer loyalty for use in this study will be derived, before both consequences and antecedents of customer loyalty will be portrayed. Since the beginning of the 1990s, customer loyalty has gained importance both in relationship marketing research and in business. In business, this can be attributed to changing marketand competition-environments. Due to a shift from a sellers’ to a buyers’ market and because of an increasing degree of globalization, most industries find themselves confronted with new
challenges. In a first phase, firms tried to face these challenges by focusing on their internal processes and organizational structures, trying to achieve cost reductions by concentrating on internal improvements. A second phase of external focus followed, where firms directed attention to their customers, trying to retain existing ones and to win over new ones (churning). Since “acquiring new customers is much more expensive than keeping them”. And “loyal customers are the bedrock of any business”. A loyal customer base represents a barrier to entry, a basis for a price premium, time to respond to competitor innovations, and a bulwark against deleterious price competition. Loyalty is critical to brand volume, is highly correlated to market share, and can be used as the basis of predicting future market share; consequently, understanding loyalty appears critical to any meaningful analysis of marketing strategy. In marketing research, two trends mark the development of customer loyalty. While individual transactions initially were in the center of marketing research, the focus shifted towards analyzing relationships states that the ‘traditional’ marketing concept of the marketing mix with its ‘4 Ps’, developed in the middle of the last century, had been the established approach until the 1990s. This approach, how-ever, focuses solely on transactions, a deficit tackled by the relationship marketing approach. At the core of it is the study of relationships between buyers and sellers of goods or services, in contrast to merely examining transactions. An often cited and comprehensive definition of relationship
marketing is provided “Relationship marketing refers to all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges.”Therefore, the relationship marketing approach pro-vides a suitable environment in which customer loyalty research can be nested. While the development of relationship marketing began in the early 1970s, it was not until the late 1980s that works from the ‘Nordic School of Services’. Initiated a paradigm shift that geared marketing towards the creation, conservation, and extension of buyer-seller relationships. Although relationship marketing today is widely accepted among marketing researchers, its promoters do not postulate the replacement of the transactional approach, but rather juxtapose the two approaches. For example, delineates a strategy continuum, in which different goods require different degrees of transaction- and relationship-based marketing strategies. As a result of the focus on relationships in marketing research, customer loyalty gained importance within research. Before determining which stream the present study can be associated with, however, it is important to create a clear understanding of different customer loyalty concepts prevalent in research. This will be accomplished in the following section.
Customer Loyalty Concepts Reviewing research, it becomes obvious that the notion of customer loyalty is blurred. At its core, customer loyalty deals with relationships between suppliers and their customers and can
be distinguished from other loyalty aspects, such as brand loyalty, which refer to a more abstract attachment, such as that towards a brand. Within German customer loyalty literature, the notion of customer loyalty is even more faceted, encompasses both ‘customer loyalty’ and ‘customer retention’ distinguishes an active, supplier-focused component and a passive, customer focused component of customer loyalty. In the supplier-focused perspective, customer loyalty is seen as a bundle of measures that aim at improving relationships with customers. The supplier is in the center of attention and the customer is only regarded as the factor at which success of customer loyalty becomes manifest. Here it becomes clear that this approach contains a conceptual deficit. It is the customer who eventually decides on whether customer loyalty management is successful or not, because all activities undertaken by a supplier can only be geared at influencing customers to be loyal. A customer-focused perspective therefore has to be added to evaluate the success of customer loyalty management. Within the customer-focused perspective, customer loyalty is conceptualized taking into account customers’ complex characteristics. These can either be approached as customers’ directly observable actions and/or take into account their attitudes and intentions. Since customers’ actions are directly influenced by their attitudes and intentions, it is obvious that these have to be scrutinized to understand and manage loyalty. A third perspective is a synthesis of the former two approaches. The relationship-focused perspective directly
examines the relationship between suppliers and customers. Accordingly, the objects of study in this perspective usually are buying behavior in retail contexts and long-term relationships marked by frequent interaction between suppliers and buyers in industrial contexts. It is clear that the supplier-focused perspective with its instrumental approach is significantly different from the other two approaches. Distinguishing the customer- and the relationshipfocused perspective, however, is difficult, because both focus on the customer.
Behaviorist customer loyalty concepts Behaviorist concepts of customer loyalty have been at the core of early marketing research and focus on customers’ observable behavior, as e.g. in purchasing behavior. Accordingly, customer loyalty is established, when customers demonstrate consistency in their choice of supplier or brand. “Hard-core” loyalty, when one product alternative is exclusively repurchased and of “reinforcing” loyalty, when customers switch among brands but repeatpurchase one or more alternatives to a significant extent. Similarly, customer loyalty as “the proportion of times a purchaser chooses the same product or service in a specific category compared to the total number of purchases made by the purchaser in that category“. Pegging customer loyalty to purchasing behavior, however, is very critical, there can be a multitude of factors affecting purchasing behavior, such as product availability or special deals, which are not grasped by looking at purchases alone. A main deficit of the behavioristic approach thus is that it does not look at the drivers’ behind purchasing behavior.
Another disadvantage of behavioristic customer loyalty concepts is their ex-post approach. When loyalty is only expressed through purchases, information on customers’ actual loyalty status in between purchases is not available. Consequently, decreasing loyalty is only recognized after it manifests itself through changed purchasing behavior. Only in relationships with frequent interaction can a supplier integrate further aspects, such as complaints, into customer loyalty management. The reason, why behavioristic concepts may still be valuable, is because the measurement of customer loyalty in this approach does not necessitate involvement by the customer. The assessment of attitudes and intentions would always imply customers’ cooperation through participation in surveys. By simply recording purchases, e.g. through delivery records in the industrial context or customer cards in a consumer context; the assessment of customer loyalty poses little difficulty. Particularly in areas, where most purchases can be easily ascribed to individual customers, as is the case with mail-ordering or book-stores on the internet, the behavioristic approach is useful for identifying different customer groups and their characteristics. Such firms, however, can only assess purchases of their own products, while purchases of competing products go unnoticed. Firms can therefore neither draw conclusions about relative changes of purchasing behaviors, nor evaluate their comparative market position.
Neo-behaviorist customer loyalty concepts
These narrow technical definitions do not adequately capture the richness and depth of the loyalty construct implicit in a relational framework.” Consequently, neo-behavioristic customer loyalty concepts start at the shortcomings of the behavioristic approach by examining the causes of loyalty. As early as 1969, Day concluded that “loyalty should be evaluated with both attitudinal and behavioral criteria” otherwise accidental repeat-purchases, merely resulting from situational exigencies, would be regarded as indicators of loyalty. There is no agreement, however, on the question, whether attitudes are part of customer loyalty or merely an antecedent of it. Some authors propose that only positive attitude can lead to ‘true’ customer loyalty. If attitude then is a necessary prerequisite of customer loyalty, some drivers of loyalty cannot be explained. Transaction cost theory, for instance, provides the concept of asset specificity. Relationship-specific investments create economic switching barriers and therefore increase customer loyalty. However, the mere repeat purchase of goods or services for reasons of economic constraints would not qualify as loyalty, as positive attitudes are not involved. In order to avoid the outlined problem, it is useful to abstain from defining positive attitude to be a necessary antecedent of loyalty. Instead, researchers usually consider intentions and observable behavior to be the constituting elements of customer loyalty.
Determinants of Customer Loyalty
In order to be able to gear marketing activities towards the creation of customer loyalty, its determinants and their precise effects have to be known. Accordingly, many researchers have investigated this topic. In order to gain an overview of the determinants identified in these works, they can be structured in three dimensions: (1) Company-related determinants refer to the supplier itself or to the goods or offered. It is a prerequisite for the existence of customer loyalty that
services
the offered goods
or services create utility for the customer and that they are available. In this respect, an assessment is usually performed by examining performance ratio, customers will pay
quality. In order to evaluate the price-
attention to prices. Customer loyalty will also be
influenced by the reputation a company has and ultimately by customer loyalty programs offered. (2) Relationship-related determinants play a significant role in long-term relationships. Factors regarding the interaction between supplier andcustomer, such as relationship quality, previous experiences, and trust are emotional closeness and
important. Commitment, which provides evidence of
moral or normative feelings of obligation, takes a central role in
relationships.Specificity and dependence can lead to economic, psychological and social switching barriers. (3) Customer-related determinants are mainly influenced by customers’ characteristics. In this respect, affect and involvement, and consequently also the importance of the good or
service to the customer, are important. In effects of the market environment satisfaction and loyalty, loyalty and is often
addition to the above delineated areas, the
and competition are researched, as is the link between
which plays an important role in the research of customer
placed in one of the three dimensions. However, as most other
determinants influence satisfaction, it cannot be clearly separated and should therefore be listed as a distinct category.
•
Profile of the organization
Logistics market is all set to experience a period of explosive organic growth, judging by independent market analyst Datamonitor's latest research. The Datamonitor report, "India Logistics Outlook 2007," predicts high double-digit growth rates for both outsourced and contract logistics in India. With India's gross domestic profit (GDP) growing at over 9% per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is at an inflection point, and is expected to reach a market size of over $125 billion in year 2010. Strong growth enablers exist in India today in the form of over $300 billion worth of infrastructure investments, phased introduction of value-added-tax (VAT), and development of organized retail and agri-processing industries. In addition, strong foreign direct investment inflows (FDI) in automotive, capital goods, electronics, retail, and telecom will lead to increased market opportunities for providers of 3PL in India." However, as a result of the under-developed trade and logistics infrastructure, the logistics cost of the Indian economy is over 13% of GDP, compared to less than 10% of GDP in almost the entire Western Europe and North America. As leading manufacturers realign their global portfolios of manufacturing locations, India will have to work on such systemic inefficiencies, in order to attract and retain long-term real investments.
3PL/outsourced logistics is the outsourcing of a company's logistics operations to a specialized firm, which provides multiple tactical logistics services for use by customers as opposed to the respective company having a business unit in-house to oversee its supply chain and transportation of goods.
Some Facts: •
Market Size US $ 1.5 Billion
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Growth rate between 15 to 20% per annum
Different Gateways are: •
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International gateways: •
Mumbai
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Delhi,
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Chennai
Domestic gateways •
Mumbai,
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Delhi,
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Kolkata,
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Chennai,
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Bangalore,
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Hyderabad,
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Pune,
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Salem,
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Ambala,
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Gauwhati,
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Ahmedabad,
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Nagpur.
Some other facts are: •
Employs over 1.2 Million people
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Air express witnessed maximum growth in the air cargo market
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In 2007 over 1.70 Billion shipments handled
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Air traffic grows faster than anywhere in the world
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Total cargo traffic increased by 21.5 % in 2006-07
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126 airport
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14 int‘l airport account for 96 % of total freight traffic
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Estimated market size US$ 1.5 Billion
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High growth rate
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Express market expected to grow more than 20 %
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India‘s Express industry bigger than tea and entertainment industry
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2nd fastest growing major economy
• History of the Organization DHL is a Deutsche Post World Net company of Germany that provides international Mail, Express, Logistics and Finance. The company was founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn. The trio initially provided a courier service between the Continental United States and Hawaii then expanded the business from there. In 1998, Deutsche Post World Net began to acquire shares in DHL, finally reached majority ownership in 2001, and completed the purchase in 2002. DHL's global headquarters are located in Bonn and London (its Exel subsidiary). Headquarters for the Americas are located in Plantation, Florida, while its Asia Pacific & EEMEA headquarters are located respectively in Singapore & Bahrain/Brussels. DHL owns its own cargo airlines, European Air Transport, originally based in Brussels, and DHL Air, based at the East Midlands Airport in the United Kingdom. EAT moved from Brussels Airport in Belgium to Leipzig/Halle Airport in Germany in Spring 2008 with its fleet of Boeing 757SF freighters and Airbus A300 B4 freighters. Leipzig is now DHL major European Airline hub with dedicated brand new facilities.As on 2006 DHL employees around 2,85,000 people across the various locations.
REVIEW OF LITERATURE Logistics After having presented the necessary fundamentals of customer loyalty in the preceding section, this section will elaborate on the reference point of the research project, i.e. logistics. For that, the first section will present different views on logistics and lay the notional basis for the understanding of logistics embraced in this study. As relationships between logistics service providers and their customers are to be analyzed, the logistics outsourcing phenomenon will be detailed, before taxonomy of logistics service providers is provided.
Nature of Logistics
Logistics is an established discipline both in theory and in practice, yet there is no agreement on a universal definition of logistics. One widely accepted view stems from the Council of Supply Chain Management Professionals (CSCMP). In their latest definition (CSCMP 2005), logistics management is seen as “that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.”This view is clearly marked by the economic objectives of effectiveness and efficiency and regards logistics as part of supply chain management.
Other definitions e.g. that of Weber and Kummer are broader and refer to logistics as a floworiented design of all value-creation processes. At the base of their understanding is the empirically backed assumption that there are different stages of maturity in logistics. While there are several researchers that also argue for stage models of logistics development, there is no unity as to how many stages such a model has. The model that will be briefly examined in this section stems from Weber, who identifies four maturity stages. These stages are determined by the level of logistics knowledge present in a firm and require path-dependent development from the lowest to the highest level of logistics knowledge: In the first maturity stage, logistics is a specialized service function that provides transportation, handling, and storage services that are necessary for an efficient flow of materials and goods. Weber states that this stage of logistics maturity was first observable in the 1950s, when markets changed from suppliers’ to buyers’ markets, requiring improved materials flows to succeed in the changed market environment. This is in line with Bowersox and Daugherty, who confirm that advanced logistical organizations barely existed at that time. Effects of this paradigm-change were two-fold. On the one hand, logistics optimization was achieved through process improvements and advances in forecasting and planning techniques. On the other hand, organizational changes took place, as many companies institutionalized their logistics functions in dedicated departments and therefore created a
specialized service function that was separated from other functions such as procurement or manufacturing.
The second stage of logistics maturity was initiated by contextual changes in the economic environment. In addition, advances in technology facilitated communication and networks between different departments in companies’ state. As a result, firms realized that efficiency could be increased by improving the coordination of materials flows from inbound streams in procurement through the value creation process in manufacturing to outbound streams in distribution. Through this focus on the integration of different functions, cost and performance benefits were achieved. Weber provides coordination of lot-sizes and just-intime supply and production as examples of these benefits. The following third stage of logistics maturity was necessitated by further changes of the market environment. Simon points out that the intensity of competition increased, an effect attributable to over-capacities, and a world-wide convergence of product quality, shortened product-life-cycles, and a strengthened focus on customer demands. The required simultaneous focus on differentiation and cost leadership was not feasible under the prevalent functional structures and rigid organizational systems. Instead, a process-oriented intracompany value chain that reduces complexity was needed to succeed in the changing market
environment. Hence, logistics evolved from a mere functional concept to a management concept or, as from operational to strategic orientation. The fourth and, for the time being, last maturity stage of logistics development is again driven by market pressures. When companies realized that optimization potentials within the organization had been largely exploited, the focus of attention was furthered to include upstream and downstream partners in the supply chain. In this sense, the view of logistics as a management concept from the third maturity stage is ex-tended over company boundaries and can be labeled supply chain management (SCM). This underlines the outstanding importance of logistics for companies, which can realize significant economic benefits by allocating management capacities to the improvement of logistics and the creation of flow-oriented organizations. A way, in which many companies presently try to accomplish this, is by outsourcing parts or all of their logistics activities to third parties.
Logistics Service Providers If a company employs an outside provider to perform some or all of its logistics activities, this outside provider is termed a logistics service provider. These LSPs were originally only offering a very narrow spectrum of services, mainly consisting of transportation or warehousing services. In order to react to changing demands from their customers, as pointed
out in the preceding sections, LSPs have started to offer integrated service portfolios that include a multitude of different services. According to, five types of LSPs can currently be distinguished: carriers, couriers & express & parcel/postal (CEP), freight forwarders, thirdparty LSPs (3PLs), and fourth-party LSPs (4PLs), which will be briefly described below. Carriers are firms that own assets for transportation purposes. These as-sets are usually confined to road, sea, air, or rail transportation. In some cases, however, carriers own several of the aforementioned transportation assets. management of capacity and load-factor optimization are at the core of the carrier business. CEP providers are also transportation providers. As opposed to carriers, CEP providers send parcels or mail though their networks, employing different transportation vehicles and incorporating handling at hubs. In this way, they can virtually supply door-to-door services anywhere in the world, without having to rely on any third parties. Core competencies of CEP providers are the operation and management of highly complex distribution networks. Freight forwarders are intermediaries between suppliers and buyers of transportation services. In most cases, brokers carry out additional ser-vices, such as transportation planning and management, including the associated provision of information systems. In some cases, brokers also dispose of their own transportation assets. Bundling and coordination of demand for transportation services are the core competencies of brokers.
In contrast to the aforementioned LSPs, 3PLs or contract LSPs offer their customers logistics solutions that often include management capacities. These solutions most commonly include several services, such as warehousing and pick/pack operations that are carried out on a longer-term contractual basis. Sometimes, customers’ value chains, such as fleet management, order handling, complaints management, call centers, or assembly services. A recent addition to the list of types of LSPs comes in the form of 4PLs. While there is no universal agreement on the definition of the 4PL, the cur-rent state of the debate establishes 4PLs as suppliers of complete logistics systems, without carrying out the services themselves. Instead, 4PLs sub-contract all operations from other LSPs and confine themselves to the management of logistics systems. Thus, they do not dispose of any logistical assets and are a neutral intermediary between businesses and asset-based LSPs. As 3PLs form the point of reference for logistics outsourcing as dealt with in this study, the existing notional ambiguities in research have to be examined. Author to identify different types of 3PLs. To him, there are four distinct classes of 3PLs:
(1) asset-based 3PLs use their own assets (e.g. trucks and warehouses) to offer dedicated logistics services; (2) management-based 3PLs supply logistics management through information systems or consulting;
(3) Integrated 3PLs use their own assets to provide logistics services, but also subcontract from other vendors if necessary; and (4) administration-based 3PLs mainly offer administrative management (e.g.Freight payment).
CHAPTER II CONCEPTUAL FRAMEWORK Social Exchange Theory Social exchange theory deals with “the relational interdependence, or relational contract, that develops over time through the interactions of the ex-change partners.” While this concept has only entered marketing theory in the 1980s, the discussion goes as far back as to the Greek philosopher Aristotle, who distinguished social exchange from economic exchange in his Nicomachean Ethics. Later, sociologists such as Blau and Emerson, as well as social psychologists such as Thibaut and Kelley worked on the concept of social exchange. On the basis of a thorough investigation of social exchange literature, Lambe, Wittmann, and Spekman summarize the following four foundational premises of social exchange theory, which will be detailed below:
•
Exchange interactions result in economic and/or social outcomes,
•
These outcomes are compared over time to other exchange alternatives to determine dependence on the exchange relationship
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Positive outcomes over times increase firms’ trust of their trading partner(s) and their commitment to the exchange relationship, and
•
Positive exchange interactions over time produce relational exchange norms that govern the exchange relationship.
In contrast to pure economic theories, social exchange theory thus incorporates both economic and social outcomes, highlighting the fact that social as well as economic considerations are made when evaluating the value of relationships. This value results from an assessment of both utilities and costs of a relationship, and parties will choose to uphold a relationship as long as the cost-utility-ratio is satisfactory. The exact composition of utilities and costs varies from individual to individual, and more emphasis may be put on either social or economic aspects. When appraising the value of a relationship, parties will not only consider current and past costs and utilities, but also potential future benefits, and may forego present benefits for benefits in the future. Therefore, an important factor in social exchange theory is trust, which results from multiple and beneficial interactions over time. Only if the trading partner is trusted, will one be willing to reciprocate the abdication of cur-rent benefits for future benefits. Another important aspect of social exchange theory is commitment, which is fostered by trust. This causal relationship between trust and commitment is based on the
principle of generalized reciprocity, because commitment entails vulnerability and parties will seek only trustworthy partners. Social exchange theory’s foundational premises indicate that relation-ships are not only governed by contracts, but also by norms, which develop as a consequence of repeated interaction and “increase the efficiency of relationships because by agreeing to the manner in which interactions take place, the degree of uncertainty may be reduced.” As with trust, norms are adhered to because rewards are expected. While social exchange theory can be very useful conceptually, it is mainly criticized for its lack of empirical foundation. Factors such as commitment and trust should be able to substitute (at least in part) contractual governance structures, but this cannot be confirmed empirically. Presumably, this is attributable to social exchange theory’s neglect of opportunism.
Equity Theory Equity theory represents an extension of social exchange theory by adding the aspect of fairness. While the concept dates back to Homans, equity theory was primarily coined by Adams. At that time referred to as “theory of inequity”, it was introduced to explain wage inequities. The basic assumption underlying equity theory is that each party in a relationship compares its input-output-ratio to that of the other party. Analogous to social exchange theory, social as well as economic considerations are incorporated in the evaluation of fairness. In case the ratio is balanced, the perception of being fairly treated is conveyed. Otherwise, one feels unfairly treated, arousing distress for both the over-benefited and the underbenefited parties, which may lead to emotional and behavioral consequences. In order to recreate fairness, parties can change their inputs, adjust their expectations, influence the other party, or terminate the relationship.
As in social exchange theory, the input-output-ratios of the involved parties do not have to be in balance at any given time. Instead, parties must trust that outcomes be split equitably in the long-run
Commitment Trust Theory Morgan and Hunt in 1994 first introduced commitment trust theory in their article on successful relationship marketing. According to them, commitment and trust function as key mediating variables between five antecedents (relationship termination costs, relationship benefits, shared values, and opportunistic behavior) and five outcomes (acquiescence, propensity to leave, cooperation, functional conflict, and decision-making uncertainty). By highlighting commitment and trust, Morgan and Hunt’s theory is based on the fundamental ideas of social exchange theory. At the same time, one of the major deficits of social exchange theory is addressed by allowing for opportunistic behavior. Considerations by Morgan and Hunt were spurred by a shift in marketing research and practice away from a mere transactional focus towards the relationship marketing approach, according to which all marketing activities are supposed to establish, develop, and maintain successful relational exchanges. While Morgan and Hunt ac-knowledge that many contextual factors determine the success or failure of relationship marketing efforts, commitment and trust are seen as key, be-cause they can establish relational governance norms. As such, commitment and trust can encourage cooperative behavior aimed at preserving relationship investments, mitigate the risk of choosing attractive short-term alternatives despite of expected long-term benefits with existing exchange partners, and can make high-risk actions appear more attractive, because exchange partners are not feared to act opportunistically.
“Therefore, when both commitment and trust – not just one or the other – are present, they produce outcomes that promote efficiency, productivity, and effectiveness.”
The six key factors that influence customer loyalty According to Peter Clark, co-editor of The Wise Marketer and co-author of The Loyalty Guide report series, there are six major factors that play key roles in influencing the loyalty and commitment of customers:
Figure 1: Factors that influence customer loyalty
• Competition Information
FedEx: FedEx Corporation is a Delaware corporation, incorporated October 2, 1997. FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express. With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight,
a regional, less than
truckload freight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express. In the 1980s, FedEx planned, but later abandoned, a joint service with British Airways to have BA fly a Concorde to Shannon, Ireland with FedEx packages onboard and then FedEx would have flown the packages subsonically to their delivery points in Europe. Ron Ponder, a vice president at the time, was in charge of this proposed venture. In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. A new subsidiary called FedEx Corporate Services was formed to centralize the sales, marketing, customer service for all of the subsidiaries. In February 2000, FedEx acquired Tower Group International, an international logistics company. FedEx also acquired WorldTariff, a customs duty and tax information company, TowerGroup and WorldTariff were re-branded to form FedEx Trade Networks.
FedEx Corp. acquired privately held Kinko's Inc. in February 2004 and rebranded it FedEx Kinko's. The acquisition was made to expand FedEx retail access to the general public. After the acquisition, all FedEx Kinko's locations exclusively offered only FedEx shipping.[4] In June 2008, FedEx announced that they would be dropping the Kinko's name from their ship centers, with FedEx Kinko's changing to FedEx Office. In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost. In December 2007, the Internal Revenue Service of the United States 'tentatively decided' that FedEx Ground Division might be facing a tax liability of $319 million for 2002, due to misclassification of its operatives as independent contractors. Reversing a 1994 decision which allowed FedEx to classify its operatives that own their own vehicles, the IRS is auditing the years 2003 to 2006, with a view to assessing whether similar misclassification of operatives has taken place. FedEx denies that any irregularities in classification have taken place, but is facing legal action from operatives claiming benefits that would have accrued had they been classified as employees.
Blue Dart: Blue Dart Aviation is an all-cargo airline based in Chennai, India. It operates scheduled night express cargo flights including domestic and regional charters. It has an in-house maintenance capability and provides aircraft maintenance and engineering support to other airlines. The airline was incorporated in 1995 as a wholly owned subsidiary of Blue Dart Express, a Mumbai based integrated express package Distribution Company. It is now part of DHL Aviation and owned by Deutsche Post DHL. Blue Dart Aviation started operations on June
1996 with two Boeing 737 Freighters bought from Indian Airlines and inducted its first Boeing 757 freighter in 2006.
TNT: TNT Express N.V. is an international courier delivery services company with headquarters in Hoofddorp, Netherlands. The firm has fully owned operations in 63 countries and delivers documents, parcels and pieces of freight to over 200 countries. The company recorded sales of over €7.1 billion in 2012. The name TNT is short for Thomas Nationwide Transport, after Ken Thomas, an Australian businessman who, in 1946, set up his own transport business with just a single truck. Formerly an operating division of TNT N.V., TNT Express was demerged from its parent company on 26 May 2011, taking a listing on the Euronext Amsterdam Stock Exchange. TNT N.V. subsequently renamed itself PostNL. Its major competitors include United Parcel Service, FedEx and DHL. TNT Express aircraft operate under the IATA code of TAY (TNT Airways). On March 19, 2012, United Parcel Service announced its intention to acquire TNT Express for USD 6.7B. However, the deal fell through in January 2013 after it was announced that UPS had failed to obtain permission from the European Commission and as such had been blocked under anti competition legislation.
• SWOT Analysis:
Strength:
•
It has the leading share of the worldwide air cargo market.
•
Network in more than 220 countries and territories and about 275,000 employees worldwide.
•
Received position in the magazine’s “World’s Top 50 Cargo Airlines” list.
•
More focus on central procurement & E-procurement.
•
It gives the most inclusive worldwide freight service in the industry.
Weakness: •
Government owned competitors.
•
Since this is a competitive segment, the market share growth is limited.
Opportunities •
Tie-ups with corporate and business houses.
•
Opportunities in Financial markets.
•
Global expansion.
Threats: •
Tremendous increase in e-commerce.
•
Natural disasters and turbulent economies.
•
Declination of traditional services (Letters) due to electronic communication.
• Objectives of Study:
•
A study on customer level of satisfaction in towards DHL Express (I) Pvt Ltd.
•
To identify the loyalty of customer towards DHL Express (I) Pvt. Ltd.
•
To measure the specific reasons for satisfaction and dissatisfaction in
with DHL
Express. •
To identify the recommendations of DHL Express to others by
existing
loyal
customers.
• Scope of study: •
Scope of the study mainly to know the current level of customer satisfaction.
•
Scope of the study mainly to know the loyalty of the customer
towards
the company. •
To give suggestion regarding improvement of performance standard of Company
•
To inform the management about current level.
the
•
Methodology:
Data collection has been done from both sources primary as well as secondary.Primary data and Secondary data have been explained below: Primary Data: Data can be defined as the quantitative or qualitative values of a variable. Data is plural of Datum which literally means to give or something given. Data is thought to be the lowest unit of information from which other measurements and analysis can be done. Data can be numbers, images, words, figures, facts or ideas. Data in itself cannot be understood and to to get information from the data one must interpret it into meaningful information.
Sources Of Primary Data: Sources for primary data are limited and at times it becomes difficult to obtain data from primary source because of either scarcity of population or lack of cooperation. Regardless of any difficulty one can face in collecting primary data; it is the most authentic and reliable data source. Following are some of the sources of primary data. Survey: Survey is most commonly used method in social sciences, management, marketing and psychology to some extent. Surveys can be conducted in different methods. •
Questionnaire: is the most commonly used method in survey. Questionnaires are a list of questions either open-ended or close -ended for which the respondent give answers.
•
Interview: Interview is a face-to-face conversation with the respondent. In interview the main problem arises when the respondent deliberately hides information otherwise it is an in depth source of information.
Secondary Data: Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organisational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments. Sources of Secondary Data: Secondary data is often readily available. After the expense of electronic media and internet the availability of secondary data has become much easier. •
Published Printed Sources: There are variety of published printed sources. Their credibility depends on many factors. For example, on the writer, publishing company and time and date when published. New sources are preferred and old sources should be avoided as new technology and researches bring new facts into light.
•
Books: Books are available today on any topic that you want to research. The use of books start before even you have selected the topic. After selection of topics books provide insight on how much work has already been done on the same topic and you can prepare your literature review..
•
Journals/periodicals: Journals and periodicals are becoming more important as far as data collection is concerned. The reason is that journals provide up-to-date information which at times books cannot and secondly, journals can give information on the very specific topic on which you are researching rather talking about more general topics.
•
Magazines/Newspapers:Magazines are also effective but not very reliable. Newspaper on the other hand are more reliable and in some cases the information can only be obtained from newspapers as in the case of some political studies.
CHAPTER III DATA ANALYSIS & INTERPRETATION Customers overall experience to accessibility and responses of DHL representative through Telephone.
Options
Respondents Percentage
Excellent
16
20 %
Very Good
16
20 %
Good
32
40 %
Fair
16
20 %
Poor
0
0%
Total
80
100 % Table - 1
Interpretation:20 % of the customers responded that their overall experience to accessibility and responses through Telephone is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service is fair.
Fair 20%
Poor 0%
Excellent 20%
Excellent VeryGood Good VeryGood 20%
Good 40%
Figure - 1
Fair Poor
(Chart showing Customers overall experience to accessibility and responses of DHL representative through Telephone) Customers overall experience to accessibility and responses of DHL representative through E-mail
Options
Respondents
Percentage
Excellent
16
20 %
Very Good
16
20 %
Good
32
40 %
Fair
16
20 %
Poor
0
0%
Total
80
100 %
Table - 2 Interpretation:20 % of the customers responded that their overall experience to accessibility and responses through E-mail is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service is fair
Fair 20%
Poor 0%
Excellent 20%
Excellent Very Good Good Very Good 20%
Good 40%
Figure - 2
Fair Poor
(Chart showing Customers overall experience to accessibility and responses of DHL representative through E-mail)
Clearance representative ability to help customer issue/need
Options
Respondents
Percentage
Excellent
15
19 %
Very Good
17
21 %
Good
22
28 %
Fair
19
24 %
Poor
7
9%
Total
80
100 %
Table - 3 Interpretation:19 % of the customers responded that their overall experience to ability to help resolve issue or need is Excellent. Next 21 % says it is very good. Good being awarded by 28 % of the customer. 24 % is somewhat satisfied so they said that the service is fair. 9 % is not satisfied with the service.
Poor 9%
Excellent 19%
Fair 24%
Excellent Very Good Good Fair
Very Good 21%
Poor
Good 27%
Figure – 3 (Chart showing Clearance representative ability to help customer issue/need) Customers Overall experience with DHL Clearance Department
Options
Respondents
Percentage
Excellent
17
21%
Very Good
15
19%
Good
14
18%
Fair
30
38%
Poor
4
5%
Total
80
100 %
Table - 4 Interpretation: 21 % of the customers responded that their overall experience with DHL clearance department is Excellent. Next 19 % says it is very good. Good being awarded by 18 % of the
customer. 38% is somewhat satisfied so they said that the service is fair. 5 % is not satisfied with the service.
Poor 5%
Excellent 21%
Excellent Very Good
Fair 37%
Good Fair Very Good 19%
Poor
Good 18%
Figure - 4 (Chart showing Customers Overall experience with DHL Clearance Department) Customers Overall experience with DHL Shipment Delivery at doorstep
Options
Respondents
Percentage
Excellent
9
11%
Very Good
25
31%
Good
40
50%
Fair
4
5%
Poor
2
3%
Total
80
100 %
Table - 5
Interpretation: 11 % of the customers responded that their overall experience with DHL clearance department is Excellent. Next 31 % says it is very good. Good being awarded by 50 % of the customer. 5 % is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.
Fair Poor 5% 3%
Excellent 11%
Excellent Very Good Good
Very Good 31%
Fair Poor
Good 50%
Figure – 5 (Chart showing Customers Overall experience with DHL Shipment Delivery at doorstep) Customer Satisfaction level with DHL Express I Pvt Ltd
Options
Respondents
Percentage
Extremely Satisfied
15
19%
Satisfied
20
25%
Neutral
22
28%
Dissatisfied
18
23%
Extremely Dissatisfied
5
6%
Total
80
100 %
Table - 6
Interpretation: 19 % of the customers responded they are Extremely Satisfied with the service. Next 25 % they are satisfied. Neutral is 22 % of the customer. 23 % is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.
Extremely Dissatisfied 6%
Extremely Satisfied 19%
Dissatisfied 23%
Extremely Satisfied Satisfied Neutral Satisfied 25%
Dissatisfied Extremely Dis satisfied
Neutral 27%
Figure - 6 (Chart showing Customer Satisfaction level with DHL Express I Pvt Ltd)
Customer Responses or Reasons for satisfaction with DHL Express Pvt Ltd •
Less transit time
•
Clear tracking
•
Advance furnishing of documents
•
Keeping customer fully informed
•
Timely clearance
•
Good Shipment delivery at doorstep
Interpretation: Various reasons are given by customers for satisfaction like less transit time, Clear tracking, Advance furnishing of documents, keeping customer fully informed, Timely clearance, Good Shipment delivery at doorstep etc.
Customer Responses or Reasons for Dissatisfaction with DHL Express I Pvt Ltd
•
Original Bill of Entry getting only after 3 days after our follow up, this should come along with delivery
•
Freight Bill received 30 days after delivery this should deliver within 24 hrs, so that your payment will not be delayed
•
The currency some times wrongly mention in the B/E before filing with Customs, check the invoice or check with the customer - this will help avoiding mistake.
•
In some of the instances your response is not proper
•
Since express service is preferred only when there are some urgency, though the cargo reaches at airport. clearance team takes minimum 7-25days takes for customs clearance
•
Commitment not met in several cases
Interpretation: Various reasons are given by customers for dissatisfaction. The company need more focused approach for satisfying the customers.
Recommend DHL Express to others
Options
Respondents
Percentage
Yes
51
64%
No
29
36%
Total
80
100 %
Table - 7
Interpretation: 64 % of the customer responded in favour of recommending DHL Express to others. On the other hand 36 % of the people say No to recommend DHL Express to others.
No 36% Yes No Yes 64%
Figure - 7 (Chart showing Recommendation DHL Express to others)
Over the past years loyalty towards DHL Express has grown stronger.
Options
Respondents
Percentage
Yes
55
69%
No
25
31%
Total
80
100 %
Table - 8
Interpretation: 69 % of the customer responded in favour that loyalty towards DHL Express has grown stronger. On the other hand 31 % of the people say No that loyalty towards DHL Express has not grown stronger.
No 31%
Yes No
Yes 69%
Figure - 8 (Chart showing status of loyalty towards DHL Express has grown stronger)
DHL Express Values people & Relationships ahead of Short-term goals
Options
Respondents
Percentage
Yes
41
51%
No
39
49%
Total
80
100 %
Table - 9
Interpretation: 51 % of the customer responded in favour that DHL Express Values people & Relationships ahead of Short-term goals. On the other hand 49 % of the people say No that DHL Express do not Values people & Relationships ahead of Short-term goals.
No 49%
Yes 51%
Yes No
Figure – 9 (Chart showing DHL Express Values people & Relationships ahead of Short-term goals)
CHAPTER IV SUMMARY AND CONCLUSION Result of the study •
20 % of the customers responded that their overall experience to accessibility and responses through Telephone is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service is fair
•
20 % of the customers responded that their overall experience to accessibility and responses through E-mail is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the customer. Final 20 % is not so satisfied so they said that the service is fair
•
19 % of the customers responded that their overall experience to ability to help resolve issue or need is Excellent. Next 21 % says it is very good. Good being awarded by 28 % of the customer. 24 % is somewhat satisfied so they said that the service is fair. 9 % is not satisfied with the service.
•
21 % of the customers responded that their overall experience with DHL clearance department is Excellent. Next 19 % says it is very good. Good being awarded by 18 % of the customer. 38% is somewhat satisfied so they said that the service is fair. 5 % is not satisfied with the service.
•
11 % of the customers responded that their overall experience with DHL clearance department is Excellent. Next 31 % says it is very good. Good being awarded by 50 % of the customer. 5 % is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.
•
19 % of the customers responded they are Extremely Satisfied with the service. Next 25 % they are satisfied. Neutral is 22 % of the customer. 23 % is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.
•
64 % of the customer responded in favour of recommending DHL Express to others. On the other hand 36 % of the people say No to recommend DHL Express to others.
•
69 % of the customer responded in favour that loyalty towards DHL Express has grown stronger. On the other hand 31 % of the people say No that loyalty towards DHL Express has not grown stronger.
•
51 % of the customer responded in favour that DHL Express Values people & Relationships ahead of Short-term goals. On the other hand 49 % of the people say No that DHL Express do not Values people & Relationships ahead of Short-term goals.
Suggestions •
Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune up, or a holiday greeting card, reach out to your steady customers.
•
Customer Service. Go the extra distance and meet customer needs. Train the staff to do the same. Customers remember being treated well.
•
Employee Loyalty. Loyalty works from the top down. If you are loyal to your employees, they will feel positively about their jobs and pass that loyalty along to your customers.
•
Employee Training. Train employees in the manner that you want them to interact with customers. Empower employees to make decisions that benefit the customer.
•
Customer Incentives. Give customers a reason to return to your business. For instance, because children outgrow shoes quickly, the owner of a children’s shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years.
•
Product Awareness. Know what your steady patrons purchase and keep these items in stock. Add other products and/or services that accompany or compliment the products that your regular customers buy regularly. And make sure that your staff understands everything they can about your products.
•
Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If something goes wrong, let customers know immediately and compensate them for their inconvenience.
•
Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses — such as "That's our policy" — will lose more customers then setting the store on fire..
•
People over Technology. The harder it is for a customer to speak to a human being when he or she has a problem, the less likely it is that you will see that customer again.
•
Know Their Names. Remember the theme song to the television show Cheers? Get to know the names of regular customers or at least recognize their faces.
DHL Customer Satisfaction & Loyalty Survey
•
How would you rate your overall experience to accessablity and responses (of DHL representative) through phone and e-mail :
Excellent Very Good Good Fair Poor
•
How you rate the representative ability to help you resolve your issue/need?
Excellent Very Good Good Fair Poor
•
How you rate the representative on being Courteous & helpfulness?
Excellent Very Good Good Fair Poor
•
Think specifically about the CLEARANCE Department, How would you rate your overall experience:
Excellent Very Good Good Fair Poor
•
Think specifically about the SHIPMENT DELIVERY at your doorstep, How would you rate your overall experience:
Excellent Very Good Good Fair Poor
•
In scale of 1 to 5, where 1 represents ‘Extremely Dissatisfied’ and 5 represents ‘Extremely Satisfied’. How would you rate your level of satisfaction with DHL Express.
1 2 3 4 5
What specifically are you SATISFIED with DHL Express, Chennai. Enter your response below: { E.g., - Safety & security, Excellent tracking, Less transit time }
What specifically are you DISSATISFIED with DHL Express, Chennai. Enter your response below: {E.g, - Commitment not met. etc.}
•
How likely are you to recommend DHL Express to others? The chances are:
Excellent Very Good Good Fair Poor
•
In total, how long you have been a customer of DHL Express:
More then 10 years 7 to 10 years 5 to 7 years 3 to 5 years Less then 3 years
Please list top 3 reasons, initially becoming a member of DHL Express in orderPlease list top 3 reasons, initially becoming a member of DHL Express in order of i
Please rate your level of agreement with the following statements. In scale of 1 to 5, where 1 represents ‘Completely Disagree’ , 3 represents ‘Neutral’ and 5 being ‘Completely Agree’
I believe the company, DHL Express deserves my loyalty:
1
2
3
4
5
Over the past years, my loyalty to the company, DHL Express has grown stronger:
1
2
3
4
5
DHL Express Values people & Relationships ahead of Short-term goals:
1
2
* ••• Suggestions ••• ( if any)
3
4
5
BIBLIOGRAPHY Books: •
Research Methodology – Kothari
•
The Loyalty Guide report series - Peter Clark
•
Marketing Management 12 e – Philip Kotler
Websites: •
www.google.com
•
www.wikipedia.com
•
www.dhl.com
•
www.scribd.com
