Services Marketing Case Study

UPS in 2006: Customer Service & CRM Initiatives

OR

Abstract:
The $42.58 billion United Parcel Service (UPS) is the world's largest package delivery company. To maintain its market leadership, UPS depends on state of the art technology and innovative customer relationship management (CRM) practices. UPS’ CRM strategy focuses on developing one-to-one customer relationships, while maintaining an IT infrastructure with ‘dial-tone reliability’

UPS uses a sophisticated data warehouse to capture all of the transactions and customer requirements throughout its system across the globe. Using business intelligence and customer-focused analytical techniques it continues to exceed most customers’ expectations and also provide services before its competitors. UPS has reaped numerous payoffs from the millions of dollars it has spent on operations research to build the proprietary ground and air supply-chain-optimization technology, including saving hundreds of millions of dollars on its air deliveries. In the next two years (2006-08), it expects more benefits, by giving the drivers access to data from the supply-chain-optimisation models in real time via wireless handheld devices.

Pedagogical Objectives:

• The case outlines UPS’ CRM initiatives over the year, how it has helped the company save costs, grow and retain customers. It also highlights the importance of CRM in services industry.

Keywords : UPS, Customer Service, CRM Initiatives, UPS-brown colour, new initiatives at UPS, Innovative CRM Practices, UPS operations, DIAD, COMPASS, Marketing Strategies Case Study, UPS CampusShip, Online Courier, UPS’ TadeAbility toold, Package flow technology, Quantum View Inbound, DIAD IV