What are the impacts to customer service levels for customers B and C?

A company has prioritized customers A, B, and C, filling orders in that sequence.

What are the impacts to customer service levels for customers B and C?

A. 100% service levels for B and C

B. Customer B has higher service level

C. Customer C has higher service level

D. Customer B and C have same service level

View Answer

Answer: B

Explanation:

A company that has prioritized customers A, B, and C, filling orders in that sequence, will have an impact on the customer service levels for customers B and C. Customer service level is the percentage of orders that are fulfilled on time and in full. The higher the customer service level, the more satisfied the customer is with the company’s performance. When a company prioritizes customers based on their importance, value, or profitability, it means that it allocates its resources and capacity to serve the most preferred customers first, and then the less preferred customers later. This can result in different customer service levels for different customer segments. In this case, customer A is the most preferred customer, followed by customer B and then customer C. Therefore, customer A will receive the highest customer service level, as the company will fill its orders first and ensure that they are delivered on time and in full. Customer B will receive the second highest customer service level, as the company will fill its orders after customer A’s orders are fulfilled. Customer B may experience some delays or shortages if the company runs out of resources or capacity after serving customer A. Customer C will receive the lowest customer service level, as the company will fill its orders last, after customer A’s and B’s orders are completed. Customer C may face longer delays or higher shortages if the company has exhausted its resources or capacity after serving customer A and B. Therefore, the impact of prioritizing customers A, B, and C is that customer B has a higher service level than customer C.

Reference: = How to Prioritize Customer Requests – Gladly, Support Ticket Prioritization – 6 Best Practices to follow, [Customer Service Level: Definition & Calculation]