costomer service week

CUSTOMERSERVICEHANDBOOK

Service quality has increasingly become a differentiating factor among organisations and has become the key driver for organisations to gain competitive advantage in ever changing business environment. This customer service handbook has been uniquely developed for the inaugural UAE Customer Service Week to highlight some key factors regarding service delivery excellence and provide an insight into the 5P’s Service Quality Model upon which The International Customer Service Standard is based. Each page of this handbook will provide information on a useful yet crucial aspect of Customer Service delivery. It will also identify which activities are taking place during customer service week and help you get the most out of your participation.

Introduction

ContentsIntroduction

6 Customer Service TipsTip1: Create a customer focused culture

Tip2: Listen to your customersTip3: Engage your employees

Tip4: Show customers that you really careTip5: Customer Service Benchmarking

Tip6: Measure and Countinously Improve

5P’s Service Quality Model

Policies

PremisesProcesses

Product/ServicePeople

Performance Measurement

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Create a customer focused culture

An organisation with a customer focused culture promotes the basic value of service quality among employees throughout the length and breadth of the organisation. It makes a conscious attempt to develop and use innovative methods to respond and capture customer needs on a continuous basis. Its product offerings revolve around meeting and exceeding customer requirements.

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Delivery of excellent customer service should be instilled within the culture of the organisation. A customer centric organisation paves its way to a profitable future with several growth opportunities. In “a survey conducted by Forum Corporation of 2,374 customers from 14 organisations [it was found that] more than 40 percent [of the customers] listed poor service as the number-one reason for switching to the competition” (Blume, 1988).

Research shows that “service excellence initiatives are short-lived unless they are embedded as a part of the culture of the organisation” (Cook, 2008). Creating a customer focused culture involves a solid Vision and Mission Statement, Training & Education and Employee Reward & Recognition.

Participate for free in CSW and learn how to implement a customer focused culture

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TIP

Before you look out-side - look inside. A customer focused culture needs to be created among employees (Lowe, 2010).

Listening to your customers involves collecting meaningful information through various channels and acting upon it in a timely manner. Methods for collecting customer information include:

Complaint handling system• Customer satisfaction surveys• Employee satisfaction surveys• Employee exit interviews• Declining trends in demand•

Customer feedback about your organisation’s products and services is as valuable as increasing profits. If organisations are going to improve the service/products provided to customers, it is essential to listen to them.

Listen to your customersTIP2

Learn more at our Customer Service Week complaint management workshop

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A recent study revealed that only 3% of respondents

thought companies and organisations across all sectors listened enough to them and their needs (Tips for Tip Top Service, 2009).

Events which do not occur • but often come to management attention due to a large negative impact the situation createsThe fact that a high percentage of • customers do not complain. Research undertaken in the United States suggests that “only one in 26 people”complainOpinions may only be collected from a • specific group of customers which may not be a representative sample. This can distort the view the organisation has about its customers’ needs and requirementsResistance to change on the part of • the organisation leading to “we have always done it this way and this is what the customer wants syndrome” (Cook, 2008)

The barriers preventing organisations from under-standing customer needs:

Engage your employees

An engaged workforce comprises of “people who are willing to do whatever it takes to help the company succeed, including lead, innovate and serve customers” (Gostick & Elton, 2009). Employee engagement plays a major role in raising customer satisfaction level. Research suggests that a fall in customer satisfaction level can be prevented with the help of an engaged workforce (Coco, 2009).

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Employee:

Act as advocates for the organisation• Increases innovation rates • Introduce cost cutting solutions • Impact on service delivery as a result of • their dedication and commitment

Three of the key drivers which lead to an engaged work force relates to the ability of the organisation to create:

A link between each and every • employee’s job role and how fulfillment of his/her job responsibilities leads to meeting organisational objectivesA positive atmosphere amongst • employees resulting from the knowledge that their skills and abilities have been utilised for the benefit of the organisationAn environment which supports • innovation and encourages employee contribution

Organisations with “high-employee-engagement report

on average customer satisfaction 20 percent higher than their low-engagement peers” (Gostick & Elton, 2009).

Engaged

Download free tips, games & puzzles. Attend the CSW workshop on employee engagement

“Getting it right the first time” may not be the only tactic to win and keep customers. Customers need to feel that they are cared for.

Show customers that you really careTIP4

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Forum Corporation found that “68% of [customers] would go to another vendor simply because of indifference on the part of a single employee at their current one” (Blume, 1988). By showing customers that the organisation truly cares about meeting their needs and expectations, it works its way towards building a loyal customer base. The benefits include:

Improved image of the organisation • through the eyes of the customerIncreased customer retention• Increased customer satisfaction levels• A reduction in costs• An increase in profits•

Loyal customers not only contribute to continual business growth but also act as advocates for the organisation’s products/services. At the Better Business Bureau of Southern Colorado’s Excellence in Customer Service Award banquet, keynote speaker Rick Brinkman mentioned that “about 90 percent of customers will remain loyal to a company and bring five new customers if they feel they are cared about” (Expert, 2006).

Profit is the applause you get for taking care

of your customers and creating a motivating environment for your people (Blanchard, 2004).

How responsive are you to your customers’ needs? Enter the UAE CSW STAR Awards

Customer Service Benchmarking

Benchmarking can be defined as a “continuous, systematic process for comparing your own efficiency in terms of productivity, quality and practices with those companies and organisations that represent excellence” (Karlof & Ostblom, 1995).

Benchmarking, the latest management buzzword, focuses on borrowing concepts and ideas which already have proven to be successful instead of having to re-invent the wheel time and again. According to Sewell, “if an idea works in one place, you can be pretty certain it will work in another. People are just not that different from one another” (1990).

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According to (Johnson & Stern, 1995) the Four basic elements for benchmarking:

Determining and describing what • area/aspect of the organisation to benchmarkAssessing the performance of • other organisations in a similar area/aspect of operationIdentifying gaps in performance • and developing a plan to address themImplementing change•

Benchmarking in the field of customer service is beneficial because:

It helps an organisaton to learn • how to increase strategic efficiency in terms of customer serviceIt leads to skill enhancement as a • result of learning from world class organisationsIt initiates a learning process to • cultivate and constantly improve service delivery

Learn from local & international thought leaders on best practice during the CSW Forum

Successful companies are constantly bench-

marking…They have to know what they have to match up with day-in and day-out if their company is going to be successful.

Measuring customer satisfaction level and making a constant effort to improve service delivery performance is an essential element of delivering excellent customer service.

Measure and Continuously ImproveTIP6

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Measurement is the basis for continuous improvement. According to Carl Sewell author of Customers for Life, Benefits of continual performance measurement:

It provides organisations with an • improvement plan to fill in gaps identified in the organisation’s service delivery processIt helps the organisation to identify • and improve on the inefficient and unproductive areas in an organisation which adversely affect the customer experienceIt helps organisations become • exceptional customer service providers and it paves the way for increased customer retention and satisfaction

GE is one such company which gives continuous improvement high importance. At GE, in order to assist call centre agents to solve customer problems more effectively and efficiently, an investment of USD 10 million was made to develop an ‘Answer Centre’. This is a large database which holds over 750,000 customer questions, so that when a customer calls with a problem, call centre agents can enter a keyword to get the information to respond. As and when new problems arise they are added to the database (Cook, 2008).

Measure everything. Baseball teams do it.

Football teams do it. Basketball teams do it. You should do it too (Sewell, 1990).

Attend the CSW workshop delivered by TICSI on service quality measurement

The 5P’s Service Quality Model provides a comprehensive framework for the key elements essential to the delivery of customer service excellence. Each element plays a critical role in the customer’s experience and cohesively these form the basis for an integrated approach to the delivery of service excellence. This model forms the foundation for The International Customer Service Standard (TICSS2010), which has been developed by the Institute and consists of a set of practical customer service guidelines which organisations can be formally assessed against.

Details of each of the elements of the 5P’s Service Quality Model follow over the next few pages, highlighting their importance within a service quality improvement context and the implementation benefits that this model can bring to an organisation.

Customer satisfaction is defined by the people within the organisation responding to their needs, the quality of the products and services received by the organisation, the surrounding premises, and efficiency of the processes.

Quality ValueBrand

Availability

AssessableUsable

InterestingServiced

DefinedCommunicatedImplemented

MeasuredRefined

Attractors Retainers

© Philip Forrest (1985-2010)


Policies

PeopleProcessesPremisesProducts

AwarenessTechnical Skills

TeamworkBehavioural Skills

Customer Satisfaction

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The 5P’s Service Quality Model

PoliciesThe Policies are the guides of action for any organisation. This P creates the framework for each level and field of operation within the organisation, setting the core values for customer service provision. The Policies should be derived from best practice and address the intent of the organisation through their mission, vision, core values and standards.

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Within the 5P’s Service Quality Model, Policies are the overall enablers and conditioners of the remaining P’s. They govern the allocation of resources (time, money and effort etc.) to assist in the achievement of the organisation’s service excellence goals.

Policies should be: Documented to establish a • common understanding of core values, strategies and standardsClearly communicated to all • stakeholders of the organisation ensuring all employee interactions with customers commit to the same standard of delivery

Policies Premises Processes Product/Services People

How the organisation’s objectives and strategies reflect the customers’ expectations?

Are the products/ services designed according to the needs and expectations of the customers?

Do the delivery chan-nels facilitate delivery of customer service?

How effective are the organisation’s processes in delivering the desired output to their customers?

Are the employees sufficiently trained to enable satisfaction of customers’ needs?

Setting the Policies for the organisation is as essential as thinking

before acting. Policies set the goals to be reached and set the framework for how to get there (TICSI).

PremisesThe Premises are interpreted as inclusive of all service delivery channels of the organisation. The premises contribute to the customers overall impression of the business. Within the “Premises” category all available delivery channels are measured: Physical location, Call centres and Websites.

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Premises act as important attractors for new customers, as service delivered through any of the delivery channels could create a lasting first impression which would in turn persuade customers to do business with the organisation. Organisations need to ensure that all its customer service delivery channels are structured to support the needs of its customers.

Premises can lead to delivery of excellent customer service when:A comfortable and safe work environment helps to raise employee satisfaction and • motivation levels within the organisationCustomers who feel safe and comfortable within the organisation’s physical location • are likely to visit the location repeatedly and may contribute to the business growth.Access to a call centre agent/reception desk in a timely manner, by competent and • knowledgeable call centre agents helps to create a positive customer experience







Your organisation’s website very often acts as

the customer’s first touch point. It’s extremely important that your site represents your organisation’s values and vision (TICSI).

ProcessesProcesses are activities that deliver specific services or products for internal or external customers. Processes are one of the most crucial elements in the delivery of Service Excellence. Customers expect a satisfactory outcome after completing a transaction with an organisation and it is the efficiency and effectiveness of the processes that contribute greatly to this expected outcome.

While Products and Premises act as attractors, Processes and People are retainers. These last two factors play a crucial role in maintaining the customers’ enthusiasm for the brand and ensuring provision of a consistently high level of service which ultimately results in customer retention and loyalty.

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Practical considerations regarding Processes should include:Processes are derived from Policies to ensure that the main strategic goals are • achievedCollection of input from all relevant parties (e.g. employees, customers, strategic • partners, etc.), to ensure efficiency across all levelsDocumentation and clear communication to all stakeholders, so that all those • who are involved in executing procedures have a uniform understanding of required resources and quality standards Be integrated at each operational level of the organisation to maintain a quality • outputBe measured on a regular basis, to eliminate non-value added activities while at • the same time enhancing those activities which are beneficial for customers







Products/ServicesThis P is the reason the organisation exists and is heavily linked to strategy and development of the organisation. This P acts as an attractor to the organisation and hence, the quality of the products and services. The value they represent to the customers and their availability are crucial factors which the organisation needs to take into consideration.

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Many organisations forget that a key aspect of delivery of services and products involves taking into consideration customer feedback. Only organisations who support and promote a customer focused approach will ensure that their products and services are continually adjusted and improved to meet customer demands.

Other key factors regarding products and services:After sales service should be transparent and effective. The organisation should clearly • communicate applicable policies so that customers are fully aware of their rightsOrganisations need to take into consideration their strategic partners. This is any • business relationship with a partner who is in direct contact with the organisations customers. Through an appropriate selection process, and through continuous measurements against set performance criteria, organisations can ensure their customers receive the same standard of service through all their touch points

Organisations must continually adjust and improve their products and/or services to meet customer demands.

Policies Premises Processes Products/Services People






PeopleThis P is the factor which allows organisations to deliver their vision, mission and aims in an effective way. Successful customer service is dependent on the ability of the people of an organisation to deliver, at the point of customer contact, a unique combination of a number of different elements. Knowledge, competence and skills (such as communication and interpersonal) can positively influence the service quality performance. Well trained and highly motivated employees are able to engage with customers easily and apply themselves appropriately in addressing customer needs. Together these are highly influential on emotional aspects of the customer experience and hence are the retainers within the 5P’s model.

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Some key aspects regarding People:Effective internal communication is essential to ensure that employees are kept • up to date with all aspects of change thereby enabling organisations to better serve the needs of customersIdentification of training needs to ensure that employees have developed the • skills and knowledge they require to perform at their jobCollection of employee feedback and suggestions is crucial for organisations to • identify areas for improvement both internally and externally. Engaging employees in development of products/services encourages innovation and motivates the workforce

Policies Premises Processes Products/Services People






People are an organisations most important resource.

Care for them, nurture them, help them achieve their dreams, and they might just, help you achieve yours (TICSI).

Performance MeasurementIn addition to the five P’s, the model places high emphasis on the Measurement Improvement cycle. Service Quality Performance Measurement is the key management tool for directing improvement in the organisation across all levels. All aspects of service delivery can be measured. It is only when organisations can correctly identify where they stand in relation to best practice organisations, that they can start the journey towards achieving customer service excellence.

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The achieved scores of service performance measurement are the true measure of satisfaction of customers and employees, and together these are crucial in maintaining an improvement - measurement cycle which will drive organisation’s improvement. Improvement is based on the results of:

Customer Experience Measurement• Employee Engagement Measurement• Mystery Shopping Research•


Continuous performance measurement is a crucial factor in excellence. Performance measurement ensures the organisation is moving in the right direction, monitoring strengths and areas of improvement, identifying customer needs and expectations, and ensuring sustainability in customer

service improvement.

Continuous performance measurement ensures:

The organisation identifies its • strengths and weaknesses on a continuous basis and sets a path for improvementThe organisation is in a position • where it can accurately identify customer needs and expectationsThe organisation develops an action • plan to implement improvements which meet customer needs and expectations The organisation is on the path of • sustainable customer service improvement

All aspects of service delivery

can and should be measured (TICSI).

W: www.ticsi.orgE: [email protected]: +971 4 432 9370

About the InstituteThe International Customer Service Institute (TICSI) is an international partnership organisation enabling the recognition and sharing of global best practice in customer service. The Institute was founded in 2005 in the United Kingdom with the ultimate goal to set the global standards of customer service in a diverse and always changing environment.

The International Customer Service Standard (TICSS) has been developed by the Institute with the objective of making it the global standard for quality customer service. The aim of TICSS is to enable organisations to focus their attention on delivery of excellence in service quality while at the same time providing recognition of success through a formal third party certification scheme.

To assist organisations measure their current performance against TICSS, a self assessment tool is available on the TICSI website. The tool promotes a flexible approach to identifying their strengths and weaknesses within their current system.

For the list of references used in this guide, please email us at [email protected]

W: www.customerserviceweek.aeE: [email protected]: +971 4 432 9373

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