The document summarizes a webinar on driving employee and customer satisfaction through service level agreements (SLAs). It discusses how internal service impacts external customer experience and emphasizes empowering employees, establishing support structures, and using thoughtful evaluation and incentives. SLAs should be created for specific issues and include overall response times and quality standards. Regular measurement and celebration of successes is important for continuous improvement.
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Humanize Your Brand: Drive Employee and Customer Satisfaction with SLAs
1. Drive Employee and Customer
Satisfaction with SLAs
John Goodman Julie Lawson
With: Moderated by:
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2. 2Humanize Your Brand
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3. 3Humanize Your Brand
Click on the Questions panel to
interact with the presenters
https://www.customerexperienceupdate.com/frs/14079109/drive-employee-and-
customer-satisfaction-with-slas
4. 4Humanize Your Brand
About John Goodman
Mr. Goodman is Vice Chairman of Customer Care Measurement and Consulting (CCMC). The
universal adages, “It costs five times as much to win a new customer as to keep an existing one.” and
“Twice as many people hear about a bad experience as a good one.” are both based on his
research. He has just completed the 2020 National Rage Study, on the latest trends in complaining,
service expectations and word of mouth.
Harper Collins published the second edition of his book, “Strategic Customer Service”, in March, 2019.
He has also published, “Customer Experience 3.0”, with the American Management Association in
July, 2014. Over the past 40 years, Mr. Goodman has managed more than 1,000 separate customer
experience studies for 45 of the Fortune 100 as well as dozens of non-profit and government entities.
About Julie Lawson
Julie Lawson majored in English at Boston University. She worked at the college radio station,
WTBU, where she developed a passion for producing shows with good music and good stories.
She started her career at a small publishing house in Los Angeles and went on to become Webinar
Coordinator at Aggregage, where she produces webinars and facilitates BTS webinar functions. In
her spare time, she enjoys going to the beach, camping and reading great books.
5. 5Humanize Your Brand
• Evolution of customer service to CE 3.0
• Customer behavior and expectations
• Impact of Internal Service on External Customer Experience
• Drivers of Internal Service: Empowerment, SLAs, Evaluation
• Creating empowerment and SLAs and Applying Evaluation
thoughtfully
• Prerequisites and Payoffs
• Assess your readiness for great internal service
6. 6Humanize Your Brand
CX 3.0 for 2022
• Staff isn’t to blame for bad experiences
• CX 3.0 is Proactive, Preventive and Engaging
• Customer education and onboarding is key
• Technology is the key to CX and the VOC
• Staff need flexibility, explanations and recognition
• It’s 10-20 X more profitable to deliver great service
7. 7Humanize Your Brand
2020 National Rage Study
• Modeled after 1974 White House Study – Things are finally be getting a little better
• Technology and financial services are biggest categories
• 28% did not even complain about most serious problem
• Only 1/3 are satisfied
• Telephone no longer King – 43% complain primarily via internet and 42% using phone
(vs. 7:1 in favor of phone in 2017) – 16% face to face
• Chat use is rising rapidly due to speed and record of interaction
• Average of 3 people told and 1 took action on recommendation but average of 100
followers
8. 8Humanize Your Brand
Wanted % Got
My money back 40%
An explanation of why the problem
occurred
20%
An assurance that my problem
would not be repeated
15%
An apology 35%
What Complaining Customer Wanted
9. 9Humanize Your Brand
• Encounter many problems – 60-90% don’t complain
• Multiplier 3-20 problems/complaint
• Do not complain
• Fear of souring relationship
• Don’t want to get staff in trouble
• Too much hassle
• Will not do any good
• Impact
• Loyalty damaged – 15-20%
• Sensitivity to price - double
• Word of mouth spread – WOM key source of leads
Businesses Behave Like Consumers
10. 10Humanize Your Brand
• Problem causes - 20% employee, 20% customer, 60%
product and process surprises
• Service workload breakdown
• 40% self-service, 40% simple service, 20% tough issues
• Even self-service as well as simple service needs follow-thru
• “Why wasn’t I told” – indicates defective marketing or service
• 80% of dissatisfaction related to poor internal service,
whether poor sales, stale info on website or follow-thru
Impact of Internal Service on External Experience
11. 11Humanize Your Brand
Key Preventive/Proactive CX Strategies
• Customer Onboarding – Expectations on three top issues
and loading mobile app
• JIT Education and Communication– Psychic Pizza
• Effective Self-Service – FAQs and up-to-date website
• Prevent uncertainty - Dominos
• Tip – analyze website search failures - ID what’s missing
All these strategies depend on accurate, timely, updated data
from other parts of the company!
14. 14Humanize Your Brand
What Employees Want
1. Success – support, empowerment, access to tools &
information – for 10-20% of challenging contacts
2. Recognition – from peers, supervisors & mgt
3. Feeling of control – input into continuous
improvement
4. Money – 10% above scale
5. Progress in career
See: Paul Zak, Neuroscience of Trust, HBR, Jan 2017
15. 15Humanize Your Brand
Drivers of Internal Service Success
• Internal Support - Service Level Agreements
• Empowerment
• Thoughtful Evaluation and Incentives
16. 16Humanize Your Brand
SLA Type Type of Service
Covered
Dimensions
Of SLA
Level of
Anticipation
Cut Point for Good
Performance
Corporate- Golden
Rule of Response
Phone, email
inbound contacts
Timely response
from receipt
Reactive only 90% timeliness
standard met
Unit Level -
General Issues
All contacts and
special requests
from other units
Timely response
from receipt &
quality
Reactive only 95% timely and
quality
Unit Level - Key to
External Customer
(KEC) Transactions
Contacts plus KEC
transactions such
as price quotes,
info update, or
prod charges
Timely, quality &
proactive
notification for
KECs
Proactive &
Reactive
Ideally 100%, but
negotiated
explicitly with
customer to set
expectations
Individual Staff
Responsibilities
Contacts plus KECs
for owned
customers
Timeliness and
quality on KEC
Proactive &
Reactive
95% Compliance
Four Types of SLA and Their Key Components
17. 17Humanize Your Brand
Best Metric for SLA Compliance: Failed Transaction/No Information
• Failure to reply to request for action or help on Key To External Customer
Transaction
• Missed notification of late delivery so customer calls asking where it is
• Old information on the Website FAQs
• Contact center asked about promotion you never heard of
• Missing or wrong ingredient or technical information
• Late or no response to request for quote or price
How Measured?
• Manual – flag in system
• Manual – evaluation
• Tracking in CRM
18. 18Humanize Your Brand
Constructing SLAs
1. Identify key employee service POP and impact
2. Promulgate Golden Rule of Response
3. Select two candidate issues and analyze using DMIAC,
Execute rapid process improvement
4. Develop SLAs, measurement technique & governance
5. Create empowerment & evaluation
6. Test for three months using manual evaluation or CRM
7. Celebrate, enhance and move on to broader SLA and
governance
19. 19Humanize Your Brand
Point of Pain Frequency Damage % Employees At Risk
Slow/no email response 30% 20% 6.0%
Access/accurate order status 15% 10% 1.5%
Inadequate training tough issues 20% 25% 5.0%
Getting quote/pricing approval 2.5% 20% 0.5%
Supervisor Approval 20% 20% 4.0%
Must call multiple times 10% 40% 4.0%
Customer misled on delivery 10% 45% 4.5%
Production change -no notice 10% 50% 5.0%
30.5%
Identifying Key Employee Points of Pain
21. 21Humanize Your Brand
Collecting the Employee Frustration Data
1. Problem occurrence (list of 25-40 candidate issues)
2. Most serious
3. Frequency per month
4. Time wasted per occurrence
5. External customer affected? Serious vs. minor?
6. Issue reported – if so, outcome
7. Recommend company?
22. 22Humanize Your Brand
Myths of Empowerment
• Blanket empowerment works – Staff doesn’t know
when/how should it be used; need examples
• Employees will use if given – Staff don’t believe it is real;
most companies are based on sheriff/blame
• Supervisors generally support empowerment – Sups
generally fear non-compliance and variation
• Empowerment is about authority – Also about
information, use of time and taking risk.
• If executives mandate empowerment, it will happen. –
Supervisors fear legal & compliance more
23. 23Humanize Your Brand
Cost of Not Having Empowerment
• 5-15% lower closed on first contact, 20% lower sat.
• Escalation – normally 2-6%, should be 0.05-0.3%
• Cost escalating – talk time 2-6X
• Cost of supervisor time
• Cost of super-escalation to social media and regulators – cost 300-600X
• Alienation of customer – extra wait, lack of trust – 48 hours = lost sale
• Higher handling costs if sent to other unit
• CSR disengagement due to frustration
• Turnover – 50% of annual salary to replace/train
• 1-2 month’s revenue of customers turned off before leaving+
• Negative word of mouth and Glass Door commentary
+See CCMC Paper, Revenue Cost of Employee Disengagement
24. 24Humanize Your Brand
Seven Steps to Authentic Empowerment
1. Characterize workload – 6 most frequent difficult issues
2. Job description – specify empowerment/issue and input to VOC
3. Hiring – confident problem solvers –CEB Controllers, HBR, Jan 2017
4. Training – focus on flexible solution spaces, CI impact & supervisors
5. Development – case studies and victory session on issues
6. Appraisal – focus on handling of challenging cases and input to VOC
7. Incentives – recognition for innovative handling of issues and career
progress – Paul Zak, HBR, Neuroscience of Trust, Jan 2017
25. 25Humanize Your Brand
Applying Evaluation Thoughtfully R=Radical
1. Focus on key transactions – NOT random sample - R
2. Focus on use of empowerment, input to CI - R
3. Use self and peer evaluation as well as immediate supervisor
feedback
4. Supervisors responsible for encouraging empowerment -R
5. Monitor contacts where you have customer surveys -R
6. Quality teams for calibration across teams, by analyzing
escalations and by issue
See Paper: Your Monitoring and Coaching May be Doing
More Damage Than Good (https://bit.ly/3030jA6)
26. 26Humanize Your Brand
Type of issue Recommend Talk Time Authority Knowledge Clarity Helpful
Average Rating 80 4 78 83 81 84
Availability 75 4 88 70 65 74
Initial Quality 90 3 88 84 86 92
Features 93 6 90 88 90 92
Delivery issue 78 3 90 88 86 94
Warranty 56 7 42 60 44 56
Example of Analysis by Type of Issue
27. 27Humanize Your Brand
Prerequisites for Customer Experience 3.0
1. Measurement of key Points of Pain across journey and those that
are doing the most damage to revenue and WOM and to employee
frustration
2. Linkage of CRM with all major data bases and systems
3. Proactive communication to customers of key transaction problems
4. Top five specific, preventable customer problems on website
5. Focus on employee empowerment and support for those five
issues
6. Marketing and sales willing to warn customers in advance
28. 28Humanize Your Brand
Summary
• Internal service impacts external service
• Empowerment, support and evaluation drive internal service
• Empower on specific issues
• Create overall and issue specific SLA
• Execute thoughtful focused evaluation and training
• Measure and celebrate
• Contact: Jgoodman@customercaremc.com, customercaremc.com
• LinkedIn: johngoodman3, TW @jgoodman888
