Customer service management under the new economic conditions – a time for focus

Customer Service Management Under New Economic Conditions

Time For Focus

SharedServicesLink

13 March 2011

Dan Foley

Contents

• Balancing Out The Service/Quality/Cost Relationship

• Inside the Customer Mind

• Managing Customer Service Expectations Better Than Before

• Maximising Service Levels via Innovation and Training

• Massaging The Cost Agenda To Meet Customer Delivery Promises

• Mixing with the Customer Mindset …

• And Finally ……

The Age Old Conundrum ….

Cost

Service Quality

Rank The Trio In Order of Importance to You Right Now ……..

1st

2nd 3rd

What did Your Ranking Depend On?

• Timing

• Maturity of SSO/BPO

• Resource Availability

• Internal Organisational Demands

• Personal Requirements

• Markets Operating in

• …….. Customer Demands!

People feel that they lack money time & energy

How much/ little you have of each resource in your life in general?

Source: HCHLV Planning for Consumer Change 2007

%

15 31

48 11

50 5

57 3

80 60 40 20 0 20 40

Information

Time

Energy

Money

Resource Poor Resource Rich

Time and Energy are most Valued – Not Money

28 9

5 38

3 30

10 17

40 30 20 10 0 10 20 30 40 50

Information

Time

Energy

Money

Least Valued Most Valued

%

Which one of the resources is most/least valuable to you in everyday life?

Source: HCHLV Planning for consumer Change 2007

As economic conditions harden, experiences become more important

“... Customers are no longer satisfied with the “manufactured” status

enhancements that branding has produced. Instead, they seek

experiences...where supply of Status and Change is not so easily created by

ongoing innovation”

Peter Martin, Chief Business Columnist, Financial Times

Source: ‘A homely challenge to branding’, Financial Times July 4 2002

Do You Really Know Your Customer?

• Simple enough question …

• Customer Identification – how do you?

• Customer Segmentation – what tools used? Hotel Service

• Customer Service Proposition / Performance Promise

• Customer Service …. Similar / Differentiated Offer to All?

• What does “knowing your Customer” mean in a Business sense?

• Customer Profile …. Use examples to assist in building up the Profile

• Customer Service is more than “mind reading” … You can’t

service what you don’t know … don’t ask Stevie Wonder to help

you pass your driving test

Right now, The Customer Wants ….

• More Service albeit the Basic Product/Cost may remain the same

• You to be extremely conscious of the Scarce Resource the Customer

commits

• To be sure Customer get Maximum Value for the resource committed

• More Attention, Appreciation & Recognition for their purchases

– NOT LESS Assistance, Education, Training and Support

• Stronger Guarantees that their service request was “right thing to do".

– In good times, unusual service slippage may be quickly overlooked

– Right now, every deviation from normal standards is scrutinized

• You to provide the assurance Customer seeks with

– Service Guarantees – “what if planning”

– Regular Reviews/Follow-up

– Quick Queries Resolution

• Demand

– Past and current experience dictates that Customers DEMAND even

more Service in economic downturns

• Supply

– Short-termism means Service Providers reduce Service Levels via

Focus on Cost …. exactly the wrong thing to do.

• Emphasize Customer Service

– Winning new customers may be difficult but you have opportunity to

provide superior customer service on current Service Levels

– Excellent customer service will also enhance opportunity for more work

when economy improves.

– Service matters more than ever in as Customers choose what to

consume during an economic downturn

• Giving GREAT Service in tough times makes GREAT business sense

What Service can Customers Expect?

Managing Customer Expectations

• Identify The Difference Between Needs and Wants

– Need Something you have to have

– Want Something you would like to have

• What Does Our Customer Base Really Need? Do We Know?

– Lack of Understanding of Needs and Wants (there is a difference)

– Inability to Communicate Openly and Constructively

– Lack of Formal Service Structure

– No follow through on Promises Made (strategic/tactical/corporate)

– Trust and Respect never entered the relationship

– Willingness to settle for what was there before/not move with change

– No focus on Shareholder Value / Managing For Value

– Personal Agenda / Personal Fiefdoms

Delivering Superior Service – 4 Pillars of Expectation Management

• Manage your Customer's expectations BETTER

– You can't always give Customers everything they want .. But Need??!

– Sometimes you need to bring their expectations into line with what you

know you can deliver – that’s hard!

– Past Relationships need to come to the fore here

• Build a Reputation for making and keeping Clear Promises

– From a base of trust and good reputation, SSO can work better with

Customers to manage Requests/Expectations/Service Reductions better

• "Under Promise - Over Deliver"

• Bounce back with Effective Service Recovery

– Things do go wrong. When it happens, do everything you can to set things

right again and balance the Customer Experience

– Give Customers something + to remember – Balance The Experience

– Root Cause – Take Responsibility – Not Lay Blame

– Key is Restoring Customer Satisfaction for future Service & new Business

Maximising Service Levels via Innovation and Training I

• Baseline Current Service Levels and Benchmarking

– Will determine the Direction of Travel and Bias For Action

• Review and Revitalise Service Standards / SLAs / OLAs

• Determine the "norm" for service in your industry find a way to go

beyond it via

– Enhanced Focus on Process Improvement

– Service Listening Groups / Customer Councils

– Step into the Customer’s shoes … Atticus Finch moment …..

– Seek Means of Responsive and "extra-mile service" that stands

out in a unique way that customers will appreciate & remember

• Treat employees like you want the customer treated (even better?)

• Use Quality service to differentiate your business from your competition

Maximising Service Levels via Innovation and Training II

• Case Study: Appreciate Complaints

– Fergal Quinn “The More Complaints The Better”

– Customers with complaints point out where the system is faulty, procedures are weak or problematic.

– Show you where your products are below expectations or your service doesn't measure up.

– Point out areas where your competitors are getting ahead, or where your staff is falling behind.

• These are the same insights and conclusions that people pay consultants to provide.

• A "complainer" gives them to you free!

– For every one person who complains, there are many more who won't even bother to tell you

• At least the complainer gives you a chance to reply and set things right

Working the Cost Agenda To Meet Customer Service Delivery Needs I

• Is Cost Investment needed to get to 100% Service Levels wasted?

• What are Adequate Service Levels?

• Reducing Customer Service is a Common and Costly response to

tough economic times

• Compromising Service levels is a mistake:

– 91% of senior executives from leading service delivery

companies agreed that improving the current Customer

Experience is growing in importance to their companies,

customers, and competitors

– Customer Experience research shows that Service Satisfaction

scores are reversing the upward trend of the past few years and

actually dropping in a number of industries as Cost comes

before Service

– Cost reductions are impacting on Service but can we reduce the

impact? Manage the impact better?

Working the Cost Agenda To Meet Customer Service Delivery Needs II

• SSOs can define adequate Service Levels by closely managing

Customer Experience and working scarce resource better

• Build into flexible Servicing Standards into current Service Proposition

• Minimize Wasteful Spending (travel and entertainment)

• Use 21st Century social media/technology to Service better

• Understand the Drivers of Satisfaction and Invest

– Specifically, SSOs need to challenge their beliefs about “Service”

• Recognise that any Cost Spend won’t work if employees doesn’t treat

the Customer in a way that is consistent with the SSO brand promise.

• Controlling Employee Motivation/Commitment/Satisfaction as

Employees are the extension of all SSO Customer Service efforts.

• As SSO delivers on promise and creates a great Customer experience,

customer confidence goes up transforming into customer loyalty

• Invest to Grow .. Look for right returns … not just financial!

Why Do Relationships REALLY Work in Tough Times?

• Trust, Respect and Support Each Other .. Siamese Twins Approach

• Understanding the Other’s requirements like the back of your hands

– Goal Congruence …. Know the Customer like a “family member”

• Telling it as it is ….. No Spin …. Seek to Open than Hide

• “A Champion Is Someone Who Gets Up Even When They Can’t”

• Delivering On Promises … Outperform Customer Expectations

• Not being afraid to challenge the unchallengeable / “scared cows”

• “Dancing As One” … the Customer Service Dance …. Lead/Follow

• Taking the Risks to Enhance the Relationship

• Get The Customer thinking Your Way once You know how the Customer

thinks (Reverse Role Thinking – Freud)

• Strategic Initiative Ownership .. Risk Sharing - The Leap of Faith

• Celebrate the Difference and Cherish/Draw from the Past

The Age Old Conundrum ….

Cost

Service Quality

Never Share Your Bed With Someone Who Doesn’t Share Your Dreams

Do You Really Know How To Win Back The Customer Confidence?

15th Century Japanese Proverb

Key Summary Points

• Cost Cutting is Not The Answer

• Need To Continue To Deliver On Promises

• Understand the Customer Base Better

• Challenge the Current Service Provision

• Use 21st Century Technology to Drive and Deliver

• Educate More

• Grow Employee Engagement and Solution Ownership

• Feedbacks A Gift! Gather All Customer Complaints and Act On Them

• Needs and Wants – Know The Difference

Conclusion

• “Just when you thought you were out, they drag you back in again”

Marlon Brando, The Godfather

Service is the Currency that keeps our Worlds

moving!

Thanks For Your Time and Consideration

**************************************

Its Up To You now to Drive Great Customer Service, Regardless of the Circumstances