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2FE214 : Management Control System : Internet-Server Infrastructure

Question: 

1 . You are part of the management team in a medium-size Internet server company. Driven by rapid changes in the business environment in recent years, the management team has decided that the company’s management accounting practices have to be focused on the customers. The company is just two years old and is growing dramatically, doubling its customer base every six months.

Required:

(a) Identify three typical customer's needs and service expectations of most Internet-server companies. 

(b) Assuming that this dramatic growth continues, name two (2) specific actions the company can take to retain its goal of "focus on the customer". (You need to explain why each has the goal of customer focus). 

Answer:

1 Part A

Currently, the internet-server infrastructure has become a commodity. The customers have got different needs and service expectations from the Internet-server companies. First, their expectation is to have a great user experience. This does not only involve the look of the product but also regarding how the product works and is packed. Customers want a customer journey that is smartly-designed, giving them a perfect and overall experience when they use the Internet-server company’s services. This means that the firm need to create an environment where their customers can feel well taken care of, safe, and comfortable.

Second, the customers expect great features. The overall experience is not only composed of the design. The customers thus have the expectation of having more features from their inter-server company. They want their internet-server firms to provide cool and automated features in the right order, hence creating an easy and simple journey for the customer. This should be complemented by being offered a great and proactive support. The customers do not desire to have features that are difficult to use but want features that are less time consuming to use.

Lastly, the customers expect to have everything they want to be offered to them as soon as possible. They want to have services that are reliable. Reliable service is the most essential thing that clients want when choosing an internet-server company. They do not expect to deal with downtime, slow loading internet, and service issues. Rather, the customers expect that everything works as advertised, if not better. Internet-server firms should thus make sure that their services are reliable. These days, the price is not the most important thing but the reliability of the service. Thus, they are willing to incur an extra coin to have reliable services.

Part B

To retain its goal of “focus on the customer”, the company needs to take two specific actions as discussed: first, the company should focus on engaging its customers based on where they are in the customer lifecycle. Part of the firm’s specialized and targeting technology should also include connecting with every customer directly. The company should craft an experience by driving conversations depending on every customer’s position in the consumer lifecycle process. The customers should be made to feel special and important to the company by customizing their experience in a manner that makes sense for where they are in their journey as the company’s customer. For instance, a server should not send automated communications to all its customers, but rather, they should be segmented based on a timeline or actions.

Second, the company should make sure that it is constantly speaking to its customers. The firm should use context to include and draw into their customers. It should make sure that it has a “you” mentality when writing to the customers rather than using a “we” mentality. The firm should thus talk to its customers and include them. Crafting emails that have subject lines and blog post titles that use the word “you” grabs the customer’s attention and is all-inclusive. Apart from being inclusive to its customers, the company should always work with them and always keep in mind how it is expensive to acquire a new customer than to retain a current customer. Thus, the company should focus on instilling excellent customer service policies across all the company’s departments. This thus makes sure that an interaction with the company’s representative will be a positive one.

Bibliography:

Thaichon, Paramaporn, and Thu Nguyen Quach. "The relationship between service quality, satisfaction, trust, value, commitment and loyalty of Internet service providers' customers." Journal of Global Scholars of Marketing Science25, no. 4 (2015): 295-313.

Thaichon, Paramaporn, Antonio Lobo, and Ann Mitsis. "Achieving customer loyalty through service excellence in internet industry." International Journal of Quality and Service Sciences 6, no. 4 (2014): 274-289.

Thaichon, Paramaporn, Antonio Lobo, and Ann Mitsis. "An empirical model of home internet services quality in Thailand." Asia Pacific Journal of Marketing and Logistics 26, no. 2 (2014): 190-210.

Thaichon, Paramaporn, Antonio Lobo, Catherine Prentice, and Thu Nguyen Quach. "The development of service quality dimensions for internet service providers: retaining customers of different usage patterns." Journal of Retailing and Consumer Services 21, no. 6 (2014): 1047-1058.

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