Chinks in the Armor Despite FedEx\'s obsessive customer focus, with 11 million p

ID: 343730 • Letter: C

Question

Chinks in the Armor Despite FedEx's obsessive customer focus, with 11 million packages flying all over the planet every day, there are bound to be some glitches now and then. And while social media have been a tremendous blessing, they can also be a curse. In the past few years, FedEx has had its share of videos go viral showing employees mishandling packages. For example, there's the one of a Maryland FedEx driver, captured by the resident's security camera, throwing a package onto a front porch from a distance of about 20 feet. Then there's the FedEx truck driving down a Colorado highway two days before Christmas with its rear door wide open and packages falling out onto the highway. And who can forget the FedEx driver who tossed a package containing a Samsung computer monitor over a six-foot iron fence onto a customer's driveway, with the FedEx truck clearly visible in the background. As if employees caught on video aren't bad enough, a Philadelphia FedEx driver was caught stealing iPhones out of customers' packages. He was charged, tried, and found guilty to the tune of $40,000 worth of stolen merchandise. On a corporate level, FedEx was caught overcharging some business customers by as much as $3 per package over a three-year period. The company settled the ensuing lawsuit for $21.5 million. Although none of these actions are justifiable, the fallout would have been far worse had it not been for similar bad press for competitor UPS, including videos of drivers throwing packages, making obscene gestures at a security camera, and even stealing iPads off porches (delivered by FedEx, no less). In FedEx's case, the company took responsibility when it needed to, fired offending employees, and made restitution for damages. In the case of the Samsung monitor-throwing incident, the aggrieved customer even received a personal visit and apology from FedEx's senior vice president of operations. "This goes directly against all

Explanation / Answer

Ans1.

Term

Definition

Fedex Example

Need

“The goods and services are required as a necessity like food, clothing, and shelter”

It is not a need, FedEx services are not essential for fulfilling a need.

Want

“Want is a product or service not essential but we wish for like a house with a garden, not just shelter. “

Want on-time delivery of the package without damage but not willing or able to pay for it, it’s just a desire for good service.

Demand

“If a customer has the ability to buy the need or want it is called Demand”

On time delivery of package without any damage to the goods by individuals and corporations willing to pay for the high-quality delivery service

Ans 2

FedEx provides many value-added services to its customers to name a few as follows:

FedEx is known for using social media both for engaging with customers and also providing customer service. They engage with customers on the phone, twitter, FaceBook, blogs, chats etc. Ginna Sauerwein Managing Director of FedEx Tech connect of western region is known to get her team to respond to queries and questions on social media within minutes. They respond and give solutions to customers in shortest possible time.

FedEx also encourages its employees to interact with the customers and make personalized connect. These small measures help people to think of logistics and remember FedEx.

Ans 3. FedEx is not just providing solutions to customer expectations but finding ways to go beyond their expectations to delight them and the employees are asked to make customers loyal to FedEx by waking an extra mile.

Example of a customer in Canada who had ordered a baby formula and when she was tracking her package which was lost in transit and the customer service employee arranged the same formula to delivered from a store nearby immediately.

The employees are empowered to go an extra mile for the customers and give them something more than their expectations.

They have a “Purple promise” internal program in Canada which gives a toolbox to all employees to give excellent customer experience and build brand loyalty.

Many methods like posters in offices, regular meetings, and process improvements ideas are reminders for creating a great customer experience.

Ans 4.

The Five marketing management orientation states that customer desires prefer a product or service which are available at a lower price. The five concepts are:

FedEx is using the societal marketing concept by addressing customer’s needs beyond their expectations and taking care of society’s interest, also ensuring the profitable working of FedEx.

Ans 5.:

The competition is growing rapidly with existing players and new entrants but Fedex can be successful by the following measures: