RIJKSUNIVERSITEIT GRONINGEN
01/03/2019
VE S T I A TE CH
IBSCM ASSIGNMENT 1
, Question 1: Current situation of VTB on the Service-Profit-Chain
The Service-Profit-Chain of VTB comprises the following elements:
Internal service quality: There hasn’t been a manager for the service division and the sales
have decreased by 10-15% per year, which has caused a big pressure on the sales
department. Therefore, the internal service quality is not high and could be said to be a
negative element.
Employee satisfaction: The pressure on sales and the turmoil of the changes in structure
have had negative effects on employees. Employee satisfaction is thus also a negative
element.
Employee retention: There have been frequent changes in the management which has led to
valuable employees leaving the company and starting to work for competitors. Since this
causes chaos and a lack of good employees this element is negative.
Employee productivity: The employee retention is low, which results in a lower employee
productivity. Also, employee satisfaction is low which further decreases employee
productivity. It can therefore be regarded as a negative element.
External service value: VTB serves customers similarly, but in practice there are serious
differences in customers, which leads to a low external service value. However, the survey
shows that customers perceive the company as market/customer focused and personal. Still,
they don’t perceive the company to be very involved with them, because they can only
communicate with the sales department. So, the external service value is a neutral element.
Customer satisfaction: There are many complaints from customers, they are decreasing their
share of wallet and finishing the maintenance contract themselves. The research shows that
24% are dissatisfied and 8% are very dissatisfied with VTB. The percentage that would
recommend the company is 10, meanwhile the percent of detractors is 22, which creates a
Net Promoter Score of -12. Due to the many complaints and the high percentage of
dissatisfaction in customers, this is a negative element.
Customer loyalty: The customer satisfaction is low as there are many complaints from the
customers and therefore they are decreasing their share of wallet. Some have even finished
their maintenance contract. Customer loyalty is therefore low and is a negative element.
Revenue growth: Customer loyalty is low, which also lowers the revenue growth, which is
thus a negative element because of this.
Profitability: Sales have decreased by 10-15% per year because several competitors have
entered the Benelux market with similar products but substantial lower prices. Moreover,
Belgian and Dutch technical engineering companies have started to offer maintenance
contracts for VT-products which further influenced the decrease in sales. Combined with a
negative score on revenue growth, profitability is a negative element.
Question 2
a. Measures to increase percentage of customers that experiences VTB as a partner
1. Improve communication: Account managers should use more personal means of
communication such as phone calls or visits. Further, they should be the ones who check on
the customers on a regular basis to make sure that they feel cared for and important to VTB.
2. Offer tailor made solutions and integrated packages: There should be a package adapted to
the needs of each customer. They should ease the use of different systems for customers.
3. Offer a clear overview of products and points of contact: VTB could post up-to-date content
on the technology it offers on its website. Also, it could send a newsletter to the existing
customers informing them about the services they can purchase and how these contribute to
their business. Further, there should be one account manager for each customer, and if that
account manager is not available there should be an alternative account manager.
4. Take part in all phases of the process and offer after sales services and support to
customers: VTB could set up a remote monitoring system so that they can track the
2
01/03/2019
VE S T I A TE CH
IBSCM ASSIGNMENT 1
, Question 1: Current situation of VTB on the Service-Profit-Chain
The Service-Profit-Chain of VTB comprises the following elements:
Internal service quality: There hasn’t been a manager for the service division and the sales
have decreased by 10-15% per year, which has caused a big pressure on the sales
department. Therefore, the internal service quality is not high and could be said to be a
negative element.
Employee satisfaction: The pressure on sales and the turmoil of the changes in structure
have had negative effects on employees. Employee satisfaction is thus also a negative
element.
Employee retention: There have been frequent changes in the management which has led to
valuable employees leaving the company and starting to work for competitors. Since this
causes chaos and a lack of good employees this element is negative.
Employee productivity: The employee retention is low, which results in a lower employee
productivity. Also, employee satisfaction is low which further decreases employee
productivity. It can therefore be regarded as a negative element.
External service value: VTB serves customers similarly, but in practice there are serious
differences in customers, which leads to a low external service value. However, the survey
shows that customers perceive the company as market/customer focused and personal. Still,
they don’t perceive the company to be very involved with them, because they can only
communicate with the sales department. So, the external service value is a neutral element.
Customer satisfaction: There are many complaints from customers, they are decreasing their
share of wallet and finishing the maintenance contract themselves. The research shows that
24% are dissatisfied and 8% are very dissatisfied with VTB. The percentage that would
recommend the company is 10, meanwhile the percent of detractors is 22, which creates a
Net Promoter Score of -12. Due to the many complaints and the high percentage of
dissatisfaction in customers, this is a negative element.
Customer loyalty: The customer satisfaction is low as there are many complaints from the
customers and therefore they are decreasing their share of wallet. Some have even finished
their maintenance contract. Customer loyalty is therefore low and is a negative element.
Revenue growth: Customer loyalty is low, which also lowers the revenue growth, which is
thus a negative element because of this.
Profitability: Sales have decreased by 10-15% per year because several competitors have
entered the Benelux market with similar products but substantial lower prices. Moreover,
Belgian and Dutch technical engineering companies have started to offer maintenance
contracts for VT-products which further influenced the decrease in sales. Combined with a
negative score on revenue growth, profitability is a negative element.
Question 2
a. Measures to increase percentage of customers that experiences VTB as a partner
1. Improve communication: Account managers should use more personal means of
communication such as phone calls or visits. Further, they should be the ones who check on
the customers on a regular basis to make sure that they feel cared for and important to VTB.
2. Offer tailor made solutions and integrated packages: There should be a package adapted to
the needs of each customer. They should ease the use of different systems for customers.
3. Offer a clear overview of products and points of contact: VTB could post up-to-date content
on the technology it offers on its website. Also, it could send a newsletter to the existing
customers informing them about the services they can purchase and how these contribute to
their business. Further, there should be one account manager for each customer, and if that
account manager is not available there should be an alternative account manager.
4. Take part in all phases of the process and offer after sales services and support to
customers: VTB could set up a remote monitoring system so that they can track the
2
