Project 1.4 Tiered Service – A New Approach
Richard Lee, President of Elgin Technology Products, recentlyreturned from a Technology Conference in downtown Chicago. As aresult of talking with leaders of other companies, he is nowconsidering establishing a tiered service system, an idea he sharedwith the manager of the Customer Service Department.
Mr. Lee’s basic thought is to reward the customers who giveElgin Technology Products $100,000 worth of business with anend-of-year “thank you payment” that reflects a 5 percent discounton all yearly purchases. In addition, those customers would receivea commitment to next-day turnaround time on the resolution of allcustomer service problems. Moreover, the
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