Summary Research Question:
What is the connection between Logistics, customer service and customer Satisfaction levels?
What are the role and importance of a Company’s Logistics policies on the overall Customer
Experience? What is a generally acceptable response time from a Customer Service?
Methods:
Empirical study based on a survey shared on Internet to evaluate the reaction of perspective
customers to Customer Service and Logistic policies.
Results:
Logistics plays a significant role on the customer experience and retention both directly and
indirectly.
Structure of the Article:
1. Essay; 2. Literature Review; 3. Research Questions & Methods; 4. Empirical Design; 5.
Detailed Empirical Results; 6. Conclusions; 7. About the authors; 8. Literature
Essay It has been widely observed how the rapid growth of new
technologies changed shape to several everyday pro-
cesses. Their pervasive character brought them to reach
all aspects of life. Together with the diffusion of new in-
formation and communication tools and devices, the
faster transportation of goods and information had the ef-
fect of reducing business costs and -maybe- introducing
new customer behaviors.
The appearance and growth of online shops can be an il-
lustrative example of this phenomenon. Webstores are,
indeed, cheaper to open and maintain compared to a
brick-and-mortar shop or chain.
Some online retailers became particularly popular. Their
popularity actually grew to the point that they are able to
compete both with all major online shops and brick-and-
mortar retailer chains, even though it is not possible to
physically try or test a product online.
Among the limitations of online shops when compared to
the traditional ones are the lack of human contact and the
impossibility to receive the goods in real time. Two core
elements of online shopping are Logistics and Customer
Service – ensuring that customers can receive the prod-
ucts ordered as soon as possible and that they can receive
information and assistance whenever needed.
These two elements are tightly connected, at the point
that several companies place Customer Service inside the
Logistics business function, while others keep this ser-
vice inside the Marketing area.
This article focuses then on the analysis of the impact of
Logistics on Customer Service. It begins investigating
the role of customer expectations and satisfaction, to then
understand in what measure does Logistics intervene in
this process.
Customer Service has been broadly described either as
any services oriented in creating Customer Satisfaction,
or as a series of activities and services aimed at increasing
sales and Customer retention (Zinszer, 1976; Tucker,
1983).
In both cases the main goal is to ensure that customers
will purchase again from the retailer. This strongly con-
nects with the concept of Customer Equity, which has
been defined as the sum of the discounted lifetime values
of all customers and is based on brand, value and reten-
tion. As such, it is an intangible asset and therefore diffi-
cult to measure (Lemon, Rust, & Zeithaml, 2001, Kumar
& George, 2007).
By focusing on Customer Equity and increasing the im-
portance of the relationship with the customers, the sig-
nificance of the products is proportionally lowered. The
technological progress and the globalization increased
the competition and at the same time much more cus-
tomer data are available to companies, pushing firms to-
wards a more customer centric approach (Urban, 2005).
Being able to provide information before a purchase,
helping customers with their choice and to assist them af-
ter they bought their chosen product becomes much more
important. The role of Customer Service emerges then as
crucial in this whole picture to provide customer satisfac-
tion and lead towards customer retention.