Is Customer Service Relevant?

Similar documents
Becoming a Customer Focused Organization Craig Cochran Georgia Institute of Technology

COURSE CATALOG. vadoinc.net

Telecommunications Industry ebook Three Pillars of Churn Reduction

Driving The Net Promoter Score: Gestures of Goodwill and Apology

Chapter 13 Complaint Handling and Service Recovery

Annual Review 2016/17. easy read

Chapter 06 Service Quality

Bosch Car Service Consumer Code of Practice. Your guide to the standards and practices of the Bosch Car Service network

Introduction to Customer Service

Introduction to Customer Service

Toolkit. The Core Characteristics of a Great Place to Work Supporting Framework and Tools. Author: Duncan Brodie

Customer Service. Copyright 2009, MMM Training Solutions

quality assurance our principles and approach

Working in a Customer Service Culture

Supervisors: Skills for Success

The Scorecard Guide. All the Measures You Need for an Effective Scorecard. All the Measures You Need for an Effective Scorecard 1

Marketing: An Introduction

The facts of life Why Do Clients Feel Undeserved?

Caring and Continuous Learning. Building a Culture of Leadership Within Your Organization

The greatness gap: The state of employee disengagement. Achievers 2015 North American workforce survey results

The importance of listening: for effective leading, engaging and serving

SKILLS FRAMEWORK FOR FOOD SERVICES SKILL STANDARDS FOR OPERATIONS DIRECTOR (F&B DIRECTOR)

A Guide to Understanding & Improving EMPLOYEE ENGAGEMENT

Chapter 10: THE IMPORTANCE OF SERVICE RECOVERY

2016 EMPLOYEE SURVEY RESULTS AND ANALYSIS

Sebastian J Gunningham. Senior Vice President Latin America Division Oracle Corporation

Are Your Customers Working Too Hard?

January Get fair or fail. Why fairness is key to business success. Jean-Francois Damais

January Get fair or fail. Why fairness is key to business success. Jean-Francois Damais

Software Quality Metrics. Analyzing & Measuring Customer Satisfaction (Chapter 14)

Paper: 10, Services Marketing Module: 31, Customer Complaint Handling System

HOW TO DEFINE THE ROI OF YOUR QUALITY ASSURANCE PROGRAM

COMPLAINT MANAGEMENT POLICY

Our promise to treat you fairly

AMB200 Consumer Behaviour Assessment Item 1: Consumer Behaviour Portfolio Semester,

the Basics of Customer Experience

International Journal of Advance Engineering and Research Development. An Empirical Study on Requirement of Customer Expectancy Management

Customer Relationships: Developing Positive Strategies with Internal and External Customers

Chapter 13. Services: the intangible product

Employee Satisfaction Summary. Prepared for: ABC Inc. By Insightlink Communications October 2005

Organizational Change Capacity Questionnaire

Benefits of TLI: Average cost of training per individual is less than the national organizational average spent per individual ($1,250 per yr.

Go The Extra Mile Building a Service-Oriented Business Culture

Assessing Your Agency s Ethical Culture

Developing a Coaching Culture & Measuring ROI. Karen Whittleworth

myskillsprofile MLQ30 Management and Leadership Report John Smith

Team Conversation Starters

Changing To A Customer Focus. 10 Lessons We ve Learnt Along The Way

Supervisor Success Series 3S. Session 3: Your Responsibilities as a Supervisor

ACHIEVING EXCELLENCE IN CUSTOMER SERVICE SECTOR / CUSTOMER RELATIONS AND MARKETING

2016 Course Catalog. Evolve e-learning Solutions (866) Authorized Reseller

Everything you need to know about. The Motor Ombudsman. TheMotorOmbudsman.org

88% of consumers prefer dealing with a company with strong customer service than one with the hottest, most innovative product offerings.

The Dollars and Sense of Ethical Behavior

ENGAGED EMPLOYEES OWNERSHIP

Satisfaction Is Cheap Loyalty Is Priceless

Service Quality. Competing through Service Quality

THE STATE OF CUSTOMER DEVOTION IN RETAIL PART TWO

Updating Customer Feedback Policy

Customer Service strategy

IM111 INDUSTRIAL RELATIONS

Strategy and the Marketing Mix

OUR 10 CONVICTIONS FOR CUSTOMER RELATIONSHIPS. Customer Feedback Platform

People. Results. Trust.

Poor customer experience costs $40 billion per year. Customer Experience Series Cost of Complaining

The bad news is that yet few organisations who truly succeed in being customer focused.

THE ROLE OF THE IMMEDIATE SUPERVISOR

Developing the Mind of a Leader: Building Strong Teams

The Customer Complaints X-Ray

EMPLOYEE EXPERIENCE E-BOOK: 3 REASONS. Why the Employee Experience Should Matter for Companies

WELCOME TO SEAT REWARDS 2016

Prepared for: Joe Sample 2/2/15

Size Matters Important revenue milestones $500,000 $1,000,000 $2,000,000 $3,000,000 $6,000,000...

Service Strategy. Nature of Service Competitive Environment Competitive Strategies Role of Information. The Alamo Drafthouse

New Perspectives on Marketing in the Service Economy

SKILLS FRAMEWORK FOR HOTEL AND ACCOMMODATION SERVICES SKILLS STANDARDS FOR ASSISTANT EXECUTIVE HOUSEKEEPER

Welcome! Catalog Terminology:

ΠΑΝΕΠΙΣΗΜΙΟ ΚΤΠΡΟΤ ΑΝΣΙΜΕΣΩΠΙΗ ΠΑΡΑΠΟΝΩΝ. LECTURER: Mr. Constantinos Christou

Level 3 Certificate in Customer Service

McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Accounts Payable Clerk

Full file at

MEASURING ENGAGEMENT TO UNLOCK YOUR COMPANY S COMPETITIVE ADVANTAGE

Customer Complaints Policy & Process (2017)

2018 Legal Client Satisfaction Report

Chapter 9 The Service Encounter

working hours full time is 35 hours a week. You ll agree your working pattern with your manager.

Result 14 Definition of new Learning Outcomes

Manajemen Pelayanan Jasa. Semester Gasal 2014 Universitas Pembangunan Jaya

Chapter 8 Designing and Managing Service Processes

WEEK 13 INTERNATIONAL SERVICE MARKETING

Chapter 1 About Contact Channels

ORGANIZATIONAL STRATEGY AND ALIGNMENT FOR CUSTOMER EXPERIENCE MANAGEMENT

The Quality Maturity Model: Your roadmap to a culture of quality

The Added Business Benefits of SMS Surveys

TOP 5 CHALLENGES OF GROWING COMPANIES

CUSTOMER EXPERIENCE RESULTS

Total incremental costs of making in-house 313,100. Cost of buying (80,000 x $4 10/$4 30) 328,000 Total saving from making 14,900

TEAM ALIGNMENT TRUST INSIDE. report. assessments. for Team Name January 30, 2010

Partner Business Accelerator Based on 11 KPI s. Mark S.A. Smith Outsource Channel Executives, Inc.

Transcription:

Is Customer Service Relevant? Lessons from Successful Service Organisations Markus Groth Australian School of Business University of New South Wales

Insight #1: Services are different from products. Page 2

Pure Goods Food product Chemical Book Core Goods Appliance Data storage system Vehicle Core Services Airline Hotel ISP Pure Services Teaching Financial consulting Medical advice Goods Services Page 3

Intangibility Cannot be inventoried, displayed, communicated clearly Heterogeneity Service delivery/customer satisfaction depends on employee actions Many uncontrollable factors Simultaneity of production and consumption Customers/employees both affect service experience; customers affect each other Perishability Difficult to synchronise supply and demand Services cannot be returned or sold Customer participation Customers are partial co-producers Page 4

Search qualities Attributes can be determined prior to purchase Experience qualities Attributes can be determined during or after consumption Credence qualities Attributes are difficult to determine even after service delivery Page 5

Insight #2: The service experience is key for customers. Page 6

People are important part of service, sometimes they are the service Moments of truth Interpersonal trust and perceived fairness are key to customer experience Supplementary services gain importance Page 7

People Core product/service Service Environment Delivery Process Page 8

Information Payment Friendliness of staff Caretaking Core Billing Exception Consultation Order taking Page 9

Insight #3: Know your customers. How do they think? What do they really want? Page 10

How companies think CRM Call Centres Pricing Product Variety Product Manufacturing Technology Processes Marketing Platforms Systems Point of Exchange How customers think Hopes Dreams Desires Peace of Mind Family Lifestyle Stages of Life Communities Expectations Needs Chats Page 11

What s really important? Low COMPANY PERFORMANCE High High Under-investment? IMPORTANCE TO CUSTOMERS Low Over-investment? Page 12

Low Impact and Strong Performance Maintain or reduce investment or alter target market High Impact and Strong Performance Area of competitive advantage maintain or improve performance Low Impact and Weak Performance Inconsequential do not waste resources High Impact and Weak Performance Area of competitive vulnerability focus improvements here Page 13

Performance-importance chart Performance (Average Quality Score) Product Sales Installation Billing Repair Page 14 Importance (Regression Weight)

Insight #4: Create a service culture within your organisation. Page 15

A culture where an appreciation for good service exists, and where giving good service to internal as well as, ultimately, external customers, is considered a natural way of life and one of the most important norms by everyone in the organisation. Page 16

Service quality emphasis Customer feedback Management support Support systems Hiring Teamwork Training Page 17 Rewards and recognition

Service profit chain Operating strategy and service delivery system Service Concept Target market Outcomes Loyalty Satisfaction Service Capability Employees Productivity & Output Quality Service Value Customers Satisfaction Loyalty Revenue growth Firm Profitability Service Quality Page 18

Insight #5: Measure what really counts. Page 19

Not everything that counts should be counted, and not everything that can be counted, counts. -Albert Einstein Page 20

Page 21

Insight #6: Plan for service recovery. If service fails, recover quickly and treat customer fairly. Page 22

Mistakes are inevitable, customers don t expect superhumans and can be forgiving To err is human; to recover, divine Page 23

Best practices in service recovery Fail-safe service as much as possible Incorporate recovery into hiring, training, and empowerment Apology, assistance, compensation Act quickly Treat customers fairly: Outcomes vs procedural vs interactional Learn from recovery experiences Page 24

Proportion of unhappy customers who buy again depending on complaint process 100 90 80 70 60 50 40 30 20 10 0 9% 37% Customer did not complain 19% 46% Complaint was not resolved 54% 70% Complaint was resolved 82% 95% Complaint was resolved quickly Major problem > $100 Minor problem $1-5 Page 25 Source: Adapted from data reported by the Technical Assistance Research Program.

Impact of effective service recovery on retention No Problem 84% Problem, but effectively resolved 92% Problem Unresolved 46% Page 26 Source: IBM-Rochester study 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Customer Retention

Insight #7: Make your customers complain. Page 27

Complaints are a gift! Page 28

Strategies to encourage customer complaints Train and reward staff to view complaints as gifts Market the fact that you look for complaints Evaluate your internal complaint structures Set up listening posts Make customer comment forms available Let customers complain in private Set up customer confidants Randomly ask for feedback Page 29

Insight #8: Close any service gaps. Page 30

Gaps model of service quality Expected service Customer gap (Gap 5) Customer Perceived service Organisation Gap 1 Gap 3 Service delivery Service delivery specifications Gap 4 External communications to customers Gap 2 Company perceptions of customer expectations Page 31

Page 32