Batman adding value through quality of service…

Batman adding value through quality of
service

Everglo_Battery,_the_premier_battery_manufacturer_and_service_provider_in_South_Africa,_
looked_back_on_the_development_of_its_marketing_strategy_in_four_stages._Each_had_been_
signalled_by_advancing_the_concepts_of_what_is_meant_by_quality_of_service._Stage_1_had_
been_the_basic_product:_a_sealed_lead-acid_battery_for_use_in_mining_applications._Batteries_were_regarded_by_customers_as_a_mature_product_and_as_a_grudge_buy._Each_year,_
the_basic_product_was_under_heavy_downward_price_pressure._
Stage_2_had_been_ the_ industry

Batman adding value through quality of
service

Everglo_Battery,_the_premier_battery_manufacturer_and_service_provider_in_South_Africa,_
looked_back_on_the_development_of_its_marketing_strategy_in_four_stages._Each_had_been_
signalled_by_advancing_the_concepts_of_what_is_meant_by_quality_of_service._Stage_1_had_
been_the_basic_product:_a_sealed_lead-acid_battery_for_use_in_mining_applications._Batteries_were_regarded_by_customers_as_a_mature_product_and_as_a_grudge_buy._Each_year,_
the_basic_product_was_under_heavy_downward_price_pressure._
Stage_2_had_been_ the_ industry_reaction_to_customer_service:_the_addition_of_warranty_replacement_of_defective_products,_of_quality_assurance_(QA)_audits_of_a_suppliers_design_and_manufacturing_
processes,_and_of_parts_and_service_provision.
Stage_3_had_recognised_the_need_to_go_much_further_in_terms_of_customer_service._A_
whole_raft_of_additional_services_had_been_conceived_with_a_view_to_adding_value._Breakdowns_were_fixed_at_short_notice_by_means_of_field_service_engineers._Everglo_products_
could_now_be_delivered_and_installed_at_customer_premises._Price_lists_were_simplified_by_
including_peripheral_equipment,_such_as_contactors,_that_had_to_be_added_to_a_battery_
rack_in_order_to_make_it_work._Advice_and_tips_were_added_to_help_customers_warm_to_
Everglo_products._In_a_proactive_move,_Everglo_introduced_charts_and_advice_about_the_
application_of_battery_products_in_general,_and_the_resulting_tables_became_an_industry_standard._Parts_and_service_in_the_field_were_upgraded_to_a_24-hour,_no-nonsense_
back-up_service._And_customer_training_built_on_Everglos_position_as_an_industry_leader._
Rather_than_sales_seminars,_Everglos_held_customer_training_seminars,_where_the_company_spoke_on_behalf_of_the_industry_rather_than_as_a_supplier.
In_spite_of_having_ reached_a_pre-eminent_position_in_mining_power_supply,_Everglo_
recognised_ that_ the_ centre_ of_ Figure_
2.6_ was,_ in_ effect,_ a_ black_ hole._
Each_ year,_ competitors_added_more_services_to_their_basic_products,_too._In_effect,_the_second_and,_
to_some_extent,_the_third_circles_were_being_absorbed_into_the_commodity_category,_
and_customer_expectations_increased_all_the_time._A_new_stage_4_strategy_was_conceived_
to_ take_ Everglo_ into_ a_ position_ that_
competitors_ would_ find_ even_ more_ difficult_
to_ follow._The_new_strategy_was_coined_Batman:_battery_management_for_life._The_aim_
was_nothing_less_ than_a_ total,_customer-orientated_product_management_service_
that_ provides_power_for_life._The_supplier_takes_over_the_task_of_managing_the_customers
assets,_including_problem_identification,_training_and_managing_cash_flow._The_objective_
of_Batman_is_ to_look_at_ the_product_
the_way_ the_customer_does,_performing_best_at_
what_the_customer_values_most_rather_than_at_what_the_supplier_values_most.

Questions

1 Has_Everglo_reached_the_end_of_the_line_in_terms_of_its_quality_of_service_strategy?

2 As_a_competitor_to_Everglo,_what_would_be_your_options_in_response_to_Everglos_latest_
moves?