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Ensuring An Effective And Consistent Customer Experince To Realize Improved Retention
1. Ensuring an Effective and
Consistent Customer Experience
to Realize Improved Retention
October |2009
2. Ensuring an Effective and Consistent Customer Experience to Realize
Improved Retention
Companies need to realize the single greatest asset they have aside from their
product or service portfolio are their customer-facing employees, and,
accordingly, ensure they are equipped and measured in the best manner
possible to satisfy customers to the greatest extent possible.
Think about it – aside from the products or services a company sells, what
defines its brand image and perception in the marketplace more than anything
else are its customer-facing employees. The depth of a customer’s relationship
with a company is to a large degree and extent defined by the experience they
have in their interactions with the company’s sales and service representatives.
Once a product or service is acquired, these employees are the ones who are
responsible for maintaining and enhancing the customer’s relationship with the
company.
Yet, time and time again, in every country and sector around the world, it is
these same employees that drive customer churn – a recent report estimates
that 2/3rds of customers who sever their relationships with a company do so due
to poor customer service. So what’s a company to do?
Get it right through running a project with a three-step approach:
1. Identify existing deficiencies around the sales and service model
2. Make the needed enhancements to the system
3. Ensure consistency through the utilization of effective measurement and
rewards mechanisms
Identify Existing Deficiencies Around the Sales and Service Model
The first step to take in enhancing the customer experience is to understand the
existing pain points – that is, to identify the specific factors causing customer
dissatisfaction, or moreover, churn. There are two key tasks here – the first, to
identify all customer interactions points, the second, how those interactions are
in terms of service quality.
In identifying the pain points, every single customer interaction channel must be
examined – i.e. call center, dealer / branch / retail outlet, website, email, etc. –
any method in which a customer could experience a letdown and feel the service
they are receiving is inferior to what they might find elsewhere or feel
undervalued.
To determine what to examine in these channels, the existing level of service
must be understood. The most effective way to get this done is to talk to the
customer base to understand how they perceive their interactions through these
channels. Surveys should be conducted with existing and former customers to
understand statistically what exactly is driving their dissatisfaction related to
service. This should be complemented with focus groups, aimed at
understanding in a qualitative manner what they expect vs. what they received
in terms of service. Finally, existing complaints (if captured through recorded
3. calls, for example) should be examined to ensure customer viewpoints are
captured to the greatest extent possible.
Separately, management and front-line employees should also be interviewed.
They may give insight into why there are customer service-related issues, and
could point out root causes which customers may not be able to identify.
Chances are, the findings will show the root cause of customer service
dissatisfaction lying in one, if not all, of the following areas:
Inadequate or Unclear Processes
Poor Expectations Setting
Lack of Problem Ownership
Excessive Processing Delays / Wait Times
Unfriendly / Indifferent Service
Giving of Incorrect Information
Lack of Convenience
Make the Needed Enhancements to the System
Once the problem areas have been identified, actions need to be taken to close
the existing gaps. Based on the identified root causes, the resolution may lie in
improving trainings or findings new ways to motivate employees, in changing
certain processes, in modifying specific policies. Regardless of what needs to be
done, utilizing best practices will help in ensuring the right actions are taken.
If other companies around the world have been lauded around their excellence
in customer service, there’s no need to recreate the wheel in looking for
solutions – identifying what they’re doing right around the things you’re doing
wrong will help in deciding the course of action to take in determining which
changes to make.
More often than not, the root cause of problems will lie within training and
motivation. Lack of effective training, particularly around helping employees see
how the service they provide to customers affect’s that customer’s perception of
the company, likely lies behind much of what is leading to customer
dissatisfaction.
Other common problem areas are processes – processes which are not designed
with the customer and service in mind, but rather stress security and drive
micromanagement. Lack of empowering front-line employees to make a decision
on behalf of the customer will definitely come up here – few companies seem to
be willing to trust their employees to make a decision without approvals from
authorities higher on up.
Ultimately, it is recommended here that changes be made in gradual phases,
allowing employees to acclimate themselves with the modifications, and
allowing the company to make sure it got things right – a test and learn
environment, if you will, should be what’s set up.
4. Ensure Consistency Through the Utilization of Effective Measurement and
Rewards Mechanisms
The final phase to enhancing customer experience comes through making sure
the changes are effective, are working, and have been accepted across the front-
line and by the customers. One method to ensuring consistency in the quality of
service delivered across all channels is mystery shopping – a practice which
should be business-as-usual in those companies that truly care about the service
they provide their customer base.
Mystery shopping (the use of a third party company and its employees who pose
as customers to interact with one’s own company’s front line employees to
determine the level of service being provided at varying frequencies and in
different channels) can also be used to reward excellence in service – recognizing
those employees that are truly making a difference in the service they are
providing their customers. Random spot rewards (gifts, cash, etc.) should be
handed out to such employees, reinforcing the fact the company truly values its
employees and their dedication to caring for the customer base.
Other methods of measurement should also become common practice – number
of complaints, number of customers elevated, number of appreciation letters,
etc. A reduction in complaints will be a tell-tale sign things are headed in the
right direction, but should be reinforced with quarterly or bi-annual surveys. For
companies in those sectors that can (i.e. banking or telecom), exit interviews
should be conducted to continually identify what may still be lacking in terms of
service quality.
If the above phases are handled effectively, the ultimate measurement will come
in terms of seeing a reduction in the company’s churn rate. By getting the basics
right around customer service, companies should see an immediate change in
their bottom line.
5. About Forte Consultancy Group
Forte Consultancy Group delivers fact-based solutions, balancing short and long term
impact as well as benefits for stakeholders. Forte Consultancy Group provides a variety
of service offerings for numerous sectors, approached in three general phases -
intelligence, design, and implementation.
For more information, please contact
info@forteconsultancy.com
Forte Consultancy Group | Istanbul Office
www.forteconsultancy.com