Customer viewpoint. In $2018,$ the customer satisfaction score stood at $80\%($declining from $85\%$ in

$2017)$ and net promoter score at $20\%($declining from $30\%$ in $2017).$

Common customer complaints exist regarding $($i$)$ turnaround times between the photo shooting session and the

availability of pictures for review, as well as the turnaround times for delivery of digital copies and printouts; $($ii$)$

turnaround times for resolving customer complaints, particularly with regards to perceived defects in the delivered

digital and printed copies; $($iii$)$ mishandled or $$forgotten$$ orders or special requests. Customers often make

changes to their orders or additional special requests via phone or e$-$mail, and these changes$/$requests are

sometimes not recorded $($or recorded incorrectly$)$ in the order management system. Changes to orders are

currently handled manually.

Staff viewpoint. Staff satisfaction with the current process could be higher. Over $60\%$ of customer service staff

consider that their job is stressful. The staff turnover rate overall is at an all$-$time high: $20\%$ of staff involved in

the process as of $1$ January $2018$ had resigned by $31$ December $2018,$ up from $10\%$ the year before, with more

than $80\%$ of the resignations coming from customer service staff and the remaining from photographers and

technicians. A photographer's average Cost$-$To$-$Company $($CTC$)$ at an EZ Foto studio is $40$K per year $(35$K for

technicians and $37$K for customer service staff$).$ The CTC at EZ Foto is generally in line with industry averages.

The company additionally employs $16$ staff at the company headquarters at an average CTC of $46$K$.$

Interviews with staff have highlighted the following issues in the process:

$-$ Customer service representatives perceive that appointment management could be more time$-$

consuming. Customers sometimes call or e$-$mail multiple times to find a suitable appointment time.

Customers also call frequently to change their appointments for shooting sessions or cancel them.

About $1\%$ of corporate orders result in cancellation before the shooting, while $5\%$ of private orders are

canceled before the shooting.

$-$ The late$-$show and no$-$show rates for appointments are high: $10\%$ of late$-$shows for in$-$studio sessions,

$2\%$ for on$-$location sessions, $3\%$ for no$-$shows for on$-$studio sessions, and $1\%$ for on$-$location.

$-$ There are numerous customer inquiries via phone and e$-$mail $($on average $3$ per order, in addition to

booking$-$related calls or e$-$mails$),$ be it to enquire about the status of orders or deliveries, to make

changes to the order, to discuss special requests, pricing questions, as well as to report complains with

received pictures.

Management viewpoint. The company strategy of EZ Foto for the years $2019-2022$ is focused on revenue growth.

The company seeks to achieve a revenue increase of $50\%$ by the end of $2022$ organically, meaning via growth of

the existing business, without company acquisitions and without opening additional retail outlets.

To achieve this goal, EZ Foto's management is receptive to ideas to improve customer service and to expand the

range of added$-$value services, such as offering "slideshows" to customers of personal events, creating customized

artistic galleries, allowing customers to order reprints of photos, etc. easily. EZ Foto's management perceives that

additional revenue could come mainly from wedding photos, parties, and ceremonies. At present, only the

customer who initiates the booking can place orders. But in the case of personal events, and if the customer

consents, there is an opportunity to sell to other event participants. EZ Foto's management also believes faster

cycle times could help enhance sales. Sending more frequent reminders to customers to place their orders or

reorganizing work to reduce cycle time are options that could be considered.

The management is also seeking higher visibility over the booking$-$to$-$cash process and particularly to understand

how different studios compare against each other in terms of performance measures associated with the booking$-$

to$-$cash process.