FedEx

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Fedex

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1. OUTLINE
Sylvia Cooper, a B school professor was delivering as executive education
seminar for 30 senior manager of a fortune 500 companies and expected an
urgent parcel to receive via Federal express 10.00 am in the morning.
The parcel did not reach at time and it was missorted. She had some
presentation material which she was supposed to use during her
presentation. However, it did not reach on time.
Sylvia had great faith on federal express and in fact she had cited in many of
her seminar and classes about the service excellence of the Federal express.
She explained her situation to service representative of FedEx and asked for
an appropriate compensation and an apology letter explaining the reason for
delay.
Several questions were raised during this case regarding service issues and
in different parts throughout the case.

2. WHAT

SHOULD

FEDERAL

EXPRESS

DO

TO

THIS

CUSTOMER?
FedEx should have a grievance redressed mechanism to deal with such
service mishaps.
The package shall be delivered before 2 PM as requested by Sylvia by
sending a special vehicle.
There shall not be any charge for the parcel as per two money back
guarantees given by Federal Express (Exhibit 1)

Fedex

An apology letter shall be sent to Sylvia in order to show that Federal

Express is concerned for the lapse in service that happened in this particular
case.
Reward in the form of delivery coupons shall be given to compensate for
lack of commitment overnight delivery and to retain the customer.

3. LAPSES AT COMPANYS PART (FEDERAL EXPRESS)

The company treated Sylvias case as any other complaint of this sort not
analyzing the financial implications incurred with such disruption of service.
The call centre executives were not trained to handle such complaints
Two of the main policies were not followed while handling Sylvias
packageContact the shipper and/or recipient to advise them of the problem
Expedite item to correct destination so that it is delivered on right day-even
if late
Companys Newsletter published feedback only for satisfied customers

4. SITUATION & QUESTION RAISED..

She asked a compensation as free credit for next 25 parcel, also a personal
letter apologizing and explaining why this won`t happened again And if
president of the company could called her on this issue.

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5. CAN THE COMPANY AFFORD TO COMPENSATE CUSTOMERS

LIKE THIS?
Sylvias case was a rare one as compared to others. Considering the
repercussions of such mistakes on the client both from the perspective of
reputation and financial, such gestures only strengthens the reputation and
integrity of the company but considering her case and considering that she is
a loyal customer of FedEx which the companys database shall reflect, the
compensation is justified.
It also enhances brand loyalty amongst the customers. However, company
should evaluate and put a tab on such compensations in order to avoid
customers taking advantage of such provisions. Customer loyalty shall be
proven before compensating the customer for such service mishaps.

6. IS IT FEASIBLE FOR THE PRESIDENT TO CALL UP THE

CUSTOMERS FOR EACH AND EVERY ERROR?
It is impractical for idea for the President to call each complaint.
However, not a bad idea to be executed by another senior management
person responsible for the operations or customer service. Customer
executive should be empowered enough to handle the compliant himself so
that complain does not go to upper management level. The president shall
only intervene when there is a catastrophic service crisis or something
serious has happened because of lapse of service on FedExs part.
This will give assurance to the customer for the companys commitment to
serve and increases the confidence of customers on the brand.
Shows that the company takes up responsibility and cares for its customers

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7. WAS THE MANAGEMENT CORRECT IN REPLYING TO EVERY

LETTER FROM SYLVIA?
Yes, management should proactively reply to each complaint. This would
help companies build better customer relations.Avital,butoftenoverlooked
elementofcustomerrecoveryistoprovideanexplanationforhoworwhy
theproblemhappened.Takingthetimetoexplaintoacustomerwhatmight
havecausedtheproblemhelpsorganizationsreestablishtrustandregain
customergoodwill.
By replying the company showed its commitment towards engaging with the
customer and clearing their doubts
Again, it reassures the customer of the companys commitment. Specially in
the this case where Sylvia is a very regular customer

8. IS IT FEASIBLE TO ACHIEVE 100% ERROR FREE SERVICE?

As of now not as a many error occur on the part of the customer like
Incorrect Address
No pin code
Inadequate packaging for the items inside
However, future technological enhancement can prevent such errors. The
systems shall be made fail proof so that there are no chances of error.

Fedex

9. CONCLUSION
It is difficult to create a 100% error free operational efficiency, also it will be huge
cost to the company if they try to achieve hundred percent. However, a proper
feedback redress mechanism must be set by the company. Proactive approaches of
reaching out to customer complain and appropriate compensation must be
provided.
Each member of the complaint handling system should authorize to take decision
of his/her own. The decision shall be prompt and to ensure that loyal customers of
FedEx stay with the company.

Fedex