1. Enhancing value & Customer
Satisfaction

2. The Copier Industry
In U.S. copier placements had grown up at a
slow rate of 2.9%
 Xerox categorized the copier industry into 3
product markets:
• Low-volume market
a. Copiers made fewer than 50,000copies per
month
b. Costs less than $4,000.
c. Major players were
Canon, Xerox, Sharp, Mita and Ricoh.

3. • Mid volume market:
a. Copiers made upto 10,000 copies per month
b. Priced between $4,000-6,000
c. Major players were Xerox, Canon, Mita, Ricoh
and Konica.
• High-volume market:
a. Priced over $60,000
b. Major players were Kodak and
Xerox, Canon, Konica and Lanier competed in
the lower end of the market

4. Xerox - Company Profile
1959 : Haloid company launched model 914
office copier.
1961: Haloid was renamed to Xerox
Protected by a no.of patents
Xerox diversified into various new businesses:
• Purchased mainframe-maker scientific data
systems
• Office computing business including word
processor, document processing
workstation, networks, facsimile
equipments, electronic type writers and
financial service acquisitions.

5. The Background
IBM, Kodak, Japanese companies were main
competitors
Xerox’s cost and product prices were higher
than the competitors
Quality had declined
Market share and return on assets (ROA) had
fallen drastically
Market share dropped from 100% in 1960 to
under 40% in 1980
Japanese had 40%-50% cost advantage

6. Customer Segmentation at Xerox
Customers:
Commercial major accounts
Named accounts
General markets
Government and education
Distribution:
sold directly by Xerox sales force
Low volume and low priced mid volume
machines sold through dealer networks
Lowest priced machines sold through
consumer retail chains

7. Product line and Pricing
In 1990, Xerox had 2 lines of copiers:10 series
and 50 series
In 1990, Xerox had 18 copiers: 4 in low-end, 9
in mid range & 5 in high end
Xerox copier ranged from $2,440-$154,000
Had 30day/90day/3year warranty
Longer warranty- aggressive marketing tool

8. Customer satisfaction at Xerox
3 corporate priorities:
i. Return on assets
ii. Market share
iii. Customer satisfaction
 Studies conducted showed customer satisfaction
was not the top priority in day-to-day
management of business
 Issue of guidelines and requirements to
operating units to ensure customer satisfaction
 Guidelines focused on reorienting the company
 Operating units were given authority to respond
to customers’ requirements

9. Customer Service
Customer Service at Xerox had several dimensions:
• Fixing of units
• Providing operating systems support
• Communicating with customers
• Resolving customer issues
• Technical product support
• Feedback to manufacturing, sales, marketing and
administration
Quality of customer service was measured -
• Customer satisfaction based on Customer survey
• Expense to revenue ratio
• Reliability
• Service billing errors

10. Vision and goals
To be recognized as the industry benchmark in
customer satisfaction
Goal had 2 components:
I. External world
II. Internal world
To achieve goals- market driven business
strategies, product strategies, and investments
determined by customer requirements

11. Actions
Employees developed a proactive
attitude, role, work emphasis focused on
customer satisfaction.
Customer satisfaction code of conduct was
developed in the training curriculum
Leadership through quality tools and processes
Customer relations groups(CRG) were
initiated
Local empowerment

12. Measurement of customer
satisfaction
External measurement system:
i. Periodic survey
ii. Post installation survey
iii. New product post installation survey
iv. Competitive benchmarking customer
satisfaction survey

13. Internal measurement process:
i. Assessment of Xerox products and services
to the appropriate quality standards
ii. Routine, Monitor and inspect internal
performance
iii. Internal measures included
• service response time
• Billing errors
• Training hours per sales rep.

14. Data analyses, review and follow-up
Identified segment specific satisfiers and
dissatisfiers
Manage corrective action process
Root causes of problems were categorized and
tracked

15. Customer Guarantee
It was assumed that offering of guarantee
would lead to customer satisfaction:
1. Service guarantee
2. Money back guarantee
3. Product performance guarantee
4. Product fit guarantee
Survey conducted to find which guarantee
customers would prefer.

16. Thank You