Thursday 25 March 2010

Customer Service Leadership


Customer Service.

If you operate in an environment where you have no competition then you are different to most businesses today. Most of us do not have a unique product or are not still in the "first mover advantage" zone and have to compete on both price and service.

There are several common perceived wisdoms about customer dynamics such as "it takes 8 times more effort to get a new customer than to keep an existing one" and "a customer who has had a problem that has been handled well will become more loyal"

If a customer stays with you then their value to your business increases.  Repeat business means that you can consider the lifetime value of a customer rather than the single transaction value.  Supermarkets that make a virtue of their low prices offer loyalty cards to encourage customers to get in the habit of shopping with them each week.

Giving front line staff the authority to resolve customer issues and to offer discretionary compensation (up to defined levels) can really help in resolving customer issues before they escalate.

Being good at resolving customer issues and dealing with emergencies when they arise is a good skill but building-in reliability to avoid customer issues in the first place will have a more lasting impact on customer satisfaction.
 
Customer Services Levels
 
Lisa Ford refers to Customer Service circles with the basic requirements in the centre and extra circles of added service, which can differentiate us from our competitors, in the outer circles.

formatted circles

 Customer service levels need to be under regular review for the simple reason that customer expectations will change over time as the higher level of service become the norm and migrate into expected and  generic.
1. Generic/Basic      The minimum level
2. Expected.             What customers have grown to expect.
3. Augmented          More than, better than or faster than competition.
4. Potential              Innovation, on line ordering, delivery tracking...

Customer service levels need to be under regular review for the simple reason that customer expectations will change over time as the higher level of service become the norm and migrate into expected and  generic.










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1 comment:

  1. Great post! I really enjoyed reading this "Customer Service Leadership" I learned a lot and I've got some ideas. Anyway, thanks for sharing this post. Nice Illustration too. Keep posting!

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