Designing A Customer Service Strategy Seep Annual Meeting & Workshops - 23.10.2003

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Designing A Customer Service Strategy Seep Annual Meeting & Workshops - 23.10.2003

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  • Designing A Customer Service Strategy Seep Annual Meeting & Workshops - 23.10.2003

    1. 1. Designing a Customer Service Strategy SEEP Annual Meeting & Workshops 23 October 2003 Monica Brand Senior Director, Marketing & Product Development ACCION International
    2. 2. Overview of the Presentation <ul><li>ACCION’s approach </li></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Systematic process </li></ul></ul><ul><ul><li>Value proposition </li></ul></ul><ul><li>Customer Service Strategy </li></ul><ul><ul><li>Defining “good” service </li></ul></ul><ul><ul><li>Key operational components </li></ul></ul><ul><ul><li>Implementation plan </li></ul></ul><ul><li>Expected outcomes </li></ul>
    3. 3. <ul><li>Design, develop & implement a customer service strategy, with two distinct components; </li></ul><ul><ul><li>To develop a organizational culture oriented around the client – internal as well as external </li></ul></ul><ul><ul><li>To focus strategy on the most attractive customer segments </li></ul></ul><ul><li>Integrate and institutionalize the strategy </li></ul><ul><ul><li>Harmonize the service strategy with the sales & marketing efforts, as well as operations area </li></ul></ul><ul><ul><li>Integrate the customer service function and consolidate the organizational structure </li></ul></ul>Objectives
    4. 4. Developing a Service Strategy: Systematic Process Phase 1: Analysis & Preparation Phase 2: Design & Development Phase 3: Pilot Test Phase 4: Roll Out & Transfer <ul><li>Analyze the situation: </li></ul><ul><li>Diagram & revise processes to define baseline situation </li></ul><ul><li>Collect information on the competition & industry standards </li></ul><ul><li>Gather client information (data mining &/or primary research) </li></ul><ul><li>Analyze information & develop benchmarks </li></ul><ul><li>Prepare proposal & form working group </li></ul><ul><li>Develop the strategy: </li></ul><ul><li>Determine the relevant segments </li></ul><ul><li>Review the degree of alignment of the offer & competitive advantages </li></ul><ul><li>Define a reas of improvement & strategies by segment </li></ul><ul><li>Analyze cost- benefit of technological support (help desks, 800 #s etc) </li></ul><ul><li>Define new processes and objectives </li></ul><ul><li>Prioritize activities </li></ul><ul><li>Implement Pilot: </li></ul><ul><li>Establish pilot parameters </li></ul><ul><li>Finalize budget </li></ul><ul><li>Establish operational requirements </li></ul><ul><li>Test tools </li></ul><ul><li>Prepare pilot site </li></ul><ul><li>Train personnel </li></ul><ul><li>Implement pilot </li></ul><ul><li>Supervise & monitor </li></ul><ul><li>Adjust strategy </li></ul><ul><li>Define conclusions </li></ul><ul><li>Integrate strategy in the institution </li></ul><ul><li>Define strategic & operational implications </li></ul><ul><li>Develop support materials </li></ul><ul><li>Establish an action plan by region </li></ul><ul><li>Train personnel </li></ul><ul><li>Modify / upgrade systems </li></ul><ul><li>Implement roll out </li></ul><ul><li>Define follow up and monitoring plan </li></ul>
    5. 5. Phased Implementation Analysis & Preparation Design of Strategy Transfer & Roll Out Pilot Test Evaluation & Follow up Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Mo 7 Mo 1
    6. 6. ACCION’s value added <ul><li>Specialized “Marketing & Product Development” Unit </li></ul><ul><li>Systematized process for developing a customer Service Strategy based on: </li></ul><ul><ul><li>Best practices in the microfinance industry </li></ul></ul><ul><ul><li>Innovations in the corporate sector (CRM, balanced scorecard etc.) </li></ul></ul><ul><li>Segmentation, based on: </li></ul><ul><ul><li>“ Attractive” clients (loyalty, risk, cost, mission etc.) </li></ul></ul><ul><ul><li>Profile & performance of clients (“data mining”) </li></ul></ul><ul><ul><li>Needs y preferences (qualitative research) </li></ul></ul><ul><li>Institutional focus: integrated approach to service </li></ul>
    7. 7. Customer Service Strategy: Components <ul><li>Customer Service Objectives: Institutional Vision </li></ul><ul><li>Definition of “Customer Service” and Goals </li></ul><ul><ul><ul><li>Priorities from view of clients– internal & external </li></ul></ul></ul><ul><ul><ul><li>Industry norms and benchmarks </li></ul></ul></ul><ul><ul><ul><li>Conduct Competitive Audit and Analysis </li></ul></ul></ul><ul><li>Key Elements of the Strategy </li></ul><ul><ul><ul><li>Analysis of research results (market & institution) </li></ul></ul></ul><ul><ul><ul><li>Areas identified that require change </li></ul></ul></ul><ul><li>Implementation Roadmap </li></ul><ul><ul><ul><li>Prioritized recommendation for changes </li></ul></ul></ul><ul><ul><ul><li>Outline timing and major deliverables </li></ul></ul></ul>
    8. 8. Loyalty Strategy <ul><li>Loyalty </li></ul><ul><li>Segmentation </li></ul><ul><li>Institution </li></ul><ul><li>Competition </li></ul><ul><li>Product Development </li></ul><ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul><ul><li>Price </li></ul><ul><li>Customer Service </li></ul><ul><li>Processes & policies </li></ul><ul><li>Personnel / HR </li></ul><ul><li>Treatment/ Information </li></ul><ul><li>Channels </li></ul><ul><li>Image </li></ul><ul><li>Positioing </li></ul><ul><li>Competitive Advantage </li></ul>
    9. 9. Customer Service: External client priorities <ul><li>Accessibility: </li></ul><ul><ul><li>Appropriate product terms (loan amounts & terms, interest rates) </li></ul></ul><ul><ul><li>Policies are flexible & reflect client needs </li></ul></ul><ul><li>Speed of Service </li></ul><ul><ul><li>Rapid renewals </li></ul></ul><ul><ul><li>Shorter wait time for disbursement </li></ul></ul><ul><ul><li>Service at bank is prompt (lines, cashiers) </li></ul></ul><ul><li>3. Customer Treatment: </li></ul><ul><ul><li>Staff is friendly, respectful, patient </li></ul></ul><ul><ul><li>Staff pays personal attention to you </li></ul></ul><ul><ul><li>Overall service is prompt </li></ul></ul><ul><li>4. Preferential Programs: </li></ul><ul><ul><li>Reduced commissions &/or automatic renewals for good clients </li></ul></ul><ul><ul><li>Completion of promise/meeting expectations (of benefits for long-term customers) </li></ul></ul>
    10. 10. What is “Good Customer Service”? <ul><li>External Client </li></ul><ul><li>Information and Access: </li></ul><ul><ul><li>Information: clear, complete, understandable </li></ul></ul><ul><ul><li>service terms: transparent, straight-forward </li></ul></ul><ul><ul><li>Flexible policies, feasible requirements & products that meets their needs </li></ul></ul><ul><li>Treatment: </li></ul><ul><ul><li>Staff: trustworthy & honest </li></ul></ul><ul><ul><li>Staff: friendly, respectful, patient & accessible (personalized service) </li></ul></ul><ul><ul><li>Staff: effective, helpful & able to answer questions </li></ul></ul><ul><ul><li>Service: </li></ul></ul><ul><ul><ul><li>prompt & punctual </li></ul></ul></ul><ul><ul><ul><li>Preferential programs </li></ul></ul></ul><ul><li>Internal Client </li></ul><ul><li>Information: </li></ul><ul><ul><li>Information: full disclosure; no surprises </li></ul></ul><ul><ul><li>Clear, established communication channels </li></ul></ul><ul><li>Treatment: </li></ul><ul><ul><li>Respect: </li></ul></ul><ul><ul><ul><li>Authority (to make decisions & adjustments) </li></ul></ul></ul><ul><ul><ul><li>Responsibility, but also support (tools, training, vehicles, budget etc.) </li></ul></ul></ul><ul><ul><li>Recognition </li></ul></ul><ul><ul><ul><li>carrots as well as sticks </li></ul></ul></ul><ul><ul><ul><li>Qualitative as well as $ </li></ul></ul></ul><ul><ul><li>Reciprocity </li></ul></ul>
    11. 11. Customer Service Strategy: Key Elements <ul><li>Key Elements of Customer Service Strategy: </li></ul><ul><ul><li>Analysis of research results – institution, market & industry </li></ul></ul><ul><ul><li>Areas requiring change </li></ul></ul><ul><ul><li>Prioritized recommendation for changes </li></ul></ul><ul><li>These elements include: </li></ul><ul><ul><li>Delivery Channels : consistency across touch points </li></ul></ul><ul><ul><li>Policies & procedures : changes needed to support goals </li></ul></ul><ul><ul><li>Operations : processes and procedures to modify </li></ul></ul><ul><ul><li>Human Resources : organizational changes required </li></ul></ul><ul><ul><li>Technology : systems and data needed </li></ul></ul><ul><ul><li>Communications: supporting materials and information to communicate internally & externally </li></ul></ul>
    12. 12. Strategy Framework Market Research <ul><li>Leadership </li></ul><ul><li>Customer service vision </li></ul><ul><li>Internal Clients </li></ul><ul><li>Job satisfaction </li></ul><ul><li>Environment of innovation & feedback </li></ul><ul><li>Good “fit” between skills & responsibilities </li></ul><ul><li>Empowerment </li></ul>Feed back Client-centric culture Identify institutional capacity / competency to meet client needs Map customer experience (touchpoints, moments of truth etc) Service Benchmarks Understand client profile & preferences Loyalty, preference, retention & referrals Policies & processes Ooperations Technology Human Resources Communication – Internal & external Products Plan de Satisfacción del Cliente <ul><li>Key strategy components: </li></ul><ul><li>Problem solving </li></ul><ul><li>Complaint management </li></ul><ul><li>Post sale support </li></ul><ul><li>Training </li></ul><ul><li>Communication channels </li></ul>
    13. 13. Framework: Alignment Successful Strategies Competitive advantages of the institution Profile & preferences of target market
    14. 14. Example: Delivery Channels <ul><li>Current Situation </li></ul><ul><li>Speed / Ease of Service </li></ul><ul><ul><li>Disbursement wait time too long </li></ul></ul><ul><ul><li>Service hours prevents punctual client payments </li></ul></ul><ul><ul><li>Branch locations are not easily located </li></ul></ul><ul><ul><li>branches do not designate “client service area” nor steps of process </li></ul></ul><ul><li>Treatment </li></ul><ul><ul><li>Lack of respect shown by cashiers / unfriendly </li></ul></ul><ul><ul><li>Calls put on hold or deferred </li></ul></ul><ul><li>Possible Solutions </li></ul><ul><li>Training </li></ul><ul><ul><li>Training to review customer service philosophy & responses </li></ul></ul><ul><ul><li>Create service model: brand promise </li></ul></ul><ul><li>Branches need to be more effective at service delivery </li></ul><ul><ul><li>More accessible branches </li></ul></ul><ul><ul><li>More information outside & inside branch </li></ul></ul><ul><ul><li>Explore new channels </li></ul></ul><ul><li>Hiring & Performance </li></ul><ul><ul><li>Create incentives for loan officers to speed up service (such as same-day renewals/approvals) </li></ul></ul><ul><ul><li>Incorporate customer service functions into job requirements (attitude, profile, etc) </li></ul></ul><ul><ul><li>Incentives / rewards for good service (e.g. Incorporate treatment ‘score’ into cashier performance review) </li></ul></ul><ul><ul><li>Monitor customer treatment across branches </li></ul></ul>
    15. 15. Customer Service Manual <ul><li>Customer Feedback Loop </li></ul><ul><li>Customer Experience Evaluation (analysis of “end-to-end” customer experience) </li></ul><ul><li>Customer Handling Procedures: </li></ul><ul><ul><li>Routing; escalation etc </li></ul></ul><ul><ul><li>based on nature of inquiry; type of client etc. </li></ul></ul><ul><li>Customer Knowledge Management Plan </li></ul><ul><ul><li>information collected on clients </li></ul></ul><ul><ul><li>Reports generated etc </li></ul></ul><ul><li>Loyalty Programs: recognition, rewards </li></ul>
    16. 16. Customer Service Strategy: Road Map for Implementation <ul><li>Next Steps for Implementation: </li></ul><ul><ul><li>Prioritize </li></ul></ul><ul><ul><ul><li>Maximize value for the client </li></ul></ul></ul><ul><ul><ul><li>Determine feasibility and strategic importance </li></ul></ul></ul><ul><ul><ul><li>Conduct a cost-benefit analysis </li></ul></ul></ul><ul><ul><li>Define Areas involved </li></ul></ul><ul><ul><ul><li>Staff </li></ul></ul></ul><ul><ul><ul><li>Functional areas </li></ul></ul></ul><ul><ul><li>Outline responsibilities & timeline </li></ul></ul><ul><ul><ul><li>Establish Road Map and key deliverables </li></ul></ul></ul><ul><ul><ul><li>Estimate Available Budget </li></ul></ul></ul>
    17. 17. Customer Service Strategy: Prioritization Priority for the client based on perceived value Cost & Complexity of Implementation Phase I : 2003 Phase II: 2004 Phase III: > 2004 PHASE III HIGH MED PHASE I PHASE II LOW HIGH MED LOW
    18. 18. Desired Outcomes <ul><li>Develop a customer-focused orientation throughout the organization </li></ul><ul><li>Increase satisfaction among existing customers </li></ul><ul><li>Improve loyalty of customers, especially most “attractive” </li></ul><ul><li>Improve overall service performance and competency across regions </li></ul><ul><li>Demonstrate consistency across all service channels </li></ul><ul><li>Enhance image and competitive standing in the market </li></ul><ul><li>Attract and convert new customers via good service </li></ul>

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