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Business Performance Improvement Resource

BPIR Best Practice Report - Volume 7 Issue 1

Customer Service Excellence

The BPIR Improvement Cycle

• Identify/Select an Area for Improvement

• Measure Performance

• Benchmark Performance

• Identify a Relevant Improvement Approach or Strategy

• Learn How to Implement

• Identify Best Practice Organisations

• Research Further Information

• Implement a Best Practice Approach

• Review and Calibrate

©BPIR.com Limited www.BPIR.com The Essential Source for Benchmarking and Best Practices 3

BPIR.com Best Practice Reports provide best practices, innovative ideas, and research data on topics and tools that will help you to stay up-to-date on the latest international business trends and practices. Most of the topics for the Best Practice Reports are chosen by our members, who submit their suggestions through the members’ Research Request Service. Read and absorb, and then pass on to your staff and colleagues so they can do the same.

Organisations that achieve customer service excellence seek to understand the needs of their customer, and to provide services in a professional and confident manner that consistently exceeds those needs.

Customer service excellence must be provided on the spot. It has to be tailored at the service delivery point to meet a specific customer’s needs at a precise moment in time. Customer service excellence requires the right mix of skills. It requires the knowledge and will to do the right thing – first time, every time – thereby creating intense customer satisfaction.

Author: Neil Crawford, BPIR.com LimitedResearch Assistance: Kevin McKenna, BPIR.com LimitedEditors: Dr Robin Mann, Centre for Organisational Excellence Research, Michael Adams, maag Consulting (Canada)

Table of Contents

The Definition ..........................p1

The Stage .................................p1

Expert Opinion .........................p2

Survey and Research Data .......p5

Example Cases .........................p7

Measure and Evaluate ..............p9

Self-Assessments .....................p10

Summary of Best Practices ......p11

Words of Wisdom.....................p11

Conclusions ..............................p12

References ................................p13

Welcome to Volume 7, Issue 1 of the BPIR.com Best Practice Report series

Customer Service: The Definition

The Stage

2 ©BPIR.com Limited www.BPIR.com The Essential Source for Benchmarking and Best Practices

make sure they are never seen to be indifferent to customers. This is particularly important in how they organize service delivery or assign personnel.

iv. Likeability–interpersonal familiarity and like-ability help to establish customer confidence and trust. A number of factors constitute ‘likeability,’ including friendliness, alignment of values, language, and similarity of backgrounds.

v. Willingness to Take the High Road–in most service environments, the service provider has the upper hand in terms of power and informa-tion. This leaves the customer at a disadvantage. The authors contend that trust increases signifi-cantly when the dominant party signals that it will not exploit the other’s vulnerability. Exam-ples of this are when a rental car company waives a late fee or a salesman recommends customers do not purchase a more expensive option.

3. Designing for Control. Service encounters may involve uncertainty and thus cause customers to experience a sense of loss of control. Customer control can be catered for in two ways:

i. By allowing people to have behavioural control over parts of the service delivery process; and

ii. Through cognitive control, whereby, although customers cannot actually influence the process, they can see enough of the system to know that it is well managed.

Examples of behavioural control are when patients are able to arrange their own hospital meal schedules or customers can manage when a service is deliv-ered. Cognitive control involves conveying infor-mation about a process or an outcome to customers. An example of this is when airlines post information about flight delays. [1]

Poor customer service—such as indifferent attitudes, lazy or sloppy service, and lacklustre follow up—is extremely damaging to an organisation’s reputation. Poor customer service leads to poor credibility and loss of trust: when this happens, a company can lose brand value and sales.

Tessa Hood, managing director of Changing Gear in the United Kingdom, offers the following important tips for delivering strong customer service:

1. Never compromise on the service offered to cus-tomers. Customers express trust in an organisation when they purchase products or service; they feel let down if that trust is not respected.

Expert Opinion

According to Sriram Dasu and Richard Chase, professors at the University of Southern California in the United States, emotion, trust and control exert a powerful influence on how people assess customer service experiences; consequently, they affect how people view the overall organisation. [1]

From research conducted at Harrahs, MGM Grand, Dell, Farmers Insurance, the Seattle Supersonics, and McKinsey & Company, Dasu and Chase observed that organisations seeking to excel in customer service needed to address the “soft side” of customer management with much the same intensity they give to reengineering workflows and supply chains.

Emotion, trust and control are key elements in most service encounters; in many cases, they either drive or subconsciously reinforce how customers perceive service interactions. If an organisation takes the time to understand each of these elements, it can find new ways of improving its service. Emotions influence what we remember, how we score service encounters, and the decisions we make. Trust, of course, is essen-tial in any robust and enduring relationship. Finally, control over one’s environment is a fundamental human need.

1. Designing for Emotions. Organisations need to identify the emotions that form the basis of their competitive positioning. For example, when The Allstate Corporation says “You’re in good hands,” it is seeking to reinforce the idea of security and loyalty behind its insurance offerings. Once the key emotional factors underpinning an organisa-tion have been identified, they can be consistently managed.

2. Designing for Trust. The following factors influence trust:

i. Professional Appearance–studies reveal that patients are more trusting of doctors who dress professionally to those who dress very casually. As a result, they are more likely to follow orders given by a doctor dressed in a professional way.

ii. Clear Communication–it is important to connect and communicate with customers as clearly as possible.

iii. Active Involvement–customers continually monitor the motivation levels of their service providers. For this reason, service providers must


2. Gather feedback from employees about ways to improve customer service. Staff will appreciate the fact their expertise and contributions are valued. Employee contributions are often closely matched to the expectations of customers.

3. Monitor and document customer services challenges, actions taken, and results achieved. It is helpful for customers to understand the successes that have been achieved on their behalf; and, of course, it is vital for managers to acknowledge the excellent results achieved by their teams.

4. Ensure that staff appearance is kept to a high stan-dard. Good first impressions are very important.

5. Actively listen to customers. Keep eye contact and engagement with customers while striving to be absolutely authentic.

6. Encourage staff and teams to develop wider net-works. Establishing good networks can enhance an organisation’s reputation, and can often lead to new prospects more economically than advertising.

7. Use the power of online branding. Use high quality content and links on websites.

8. Develop a strong employee brand. Put a face on the organisation and make it stand out from the crowd. [2]

Value Creation Selling

Ram Charan, author of Leaders At All Levels, describes a new approach to sales that revolves around helping customers to succeed. He calls this value creation selling. Success should be measured in terms of how customers benefit from your help. The ability to create value for customers will differentiate an organisation from its competitors; in return, the organisation can attract a fair price from the customer.

Value creation selling includes the following practices:

1. Understanding the customer’s business by devoting time and energy to learning the following in detail:

i. what are their goals?

ii. what financial measures do they employ?

iii. how do they create market value?

iv. what key factors differentiate their product or service from competitors?

2. Using new capabilities and tools to learn about how customers go about their business and how you

can help them improve. Share information about customers with key personnel and together decide on the best ways you can help the customer win. Build new social networks to bring about frequent interaction among people from different functional backgrounds.

3. Knowing your customers and your customers’ customers. Tailor solutions to satisfy your customers’ markets by discovering:

i. who are their customers?

ii. what do they want?

iii. what are their problems and attitudes?

iv. how do they make decisions?

4. Value creation selling generally requires longer cycle times to produce an order and generate revenue. For this reason, it requires patience, consistency and the development of high levels of trust with customers. However, the resulting two-way information exchanges will be far deeper and lead to increased credibility.

5. Redesigning recognition and reward systems to encourage the behaviours needed to make the value creation selling approach more effective. Members of the sales team from other functional areas must also be recognised and rewarded in proportion to their contribution. [3]

Chip Bell and John Patterson, customer loyalty consul-tants in the United States, write that adding unique value is a significant step above simply adding value. Adding value involves offering a customer something more than was anticipated; however, bringing unique value to a customer requires creativity.

Archie Bostick from Hertz provided unique value. Archie drove a Hertz shuttle bus at Atlanta airport and greeted his passengers with a welcoming grin. Instead of a tip jar, Archie paper-clipped dollar bills to the front of his shirt. This attention-getter announced that travelling with Archie was going to be a unique experience. Once on the bus, he delivered a comedy routine and used any excuse to break into song. As he pulled up to the terminal, Archie would say “Now, I may never see you again, so I want us all to say together, “Love Hertz!’” And everyone would shout, “Love Hertz!” This is a service innovator at work.

Bell and Patterson write that “imaginative service is sourced from joy and fun. It comes from the same part of the soul that plans a prank, organizes a party, or helps a friend. When that part is used regularly, it


raises self-esteem, increases resilience, and improves morale.” FORTUNE magazine’s annual publica-tion “100 Best Companies in America to Work for®” proves this; in these companies, great service is always linked to high morale. These organisations also boast the lowest turnover, the best recruits, the highest productivity, and the greatest profits.

The following are five ways to develop great customer service: service that will take your customers’ breath away:

1. Present reality. Imaginative service is all about be-ing real and not simply filling a role. Great leaders do not rely on the trappings of power. They are more interested in communicating authenticity. Imaginative service leaders understand that they will receive back from employees the same attitude they project. An animated attitude is contagious. An unbridled spirit has magnetic power on both customers and employees.

2. Protect customers from procedures. Tasks and rules are important but revenue comes from customers. Imaginative service leaders encourage and empower employees to put customers (not procedures) first.

3. Project joy. In times of staff reductions, cost controls, and cutbacks, employees can project a sombre atmosphere. Customers needing a shot of enthusiasm must not be served by seemingly indifferent employees. The antidote to such melancholy is a leader with unmistakable passion and irresistible joy. The number one impact upon customer relations is employee relations. Remember, happy employees create happy customers.

4. Provide trust. Imaginative service happens in a climate of trust – where people are considerate and supportive. Trustful cultures encourage appropriate risk-taking that leads to novel solutions and refreshing customer experiences. Trusting leaders view error as a chance to learn, and failure as an invitation to try another approach.

5. Preserve integrity. Imaginative service leaders are grounded in complete, no-exceptions integrity. They show their nobility when they courageously tell the truth, relentlessly do what they say they will do, and gallantly turn their backs on all shady actions. Their character sends powerful signals. [4]

Valuing Customers

Kim Goff, a professional speaker and author in the United States, writes that customers have three pet peeves: waiting for long periods of time; being ignored by employees; and, not feeling appreciated as a customer. These are issues that can make or break an organisation. With this in mind, she provides the following customer service training suggestions:

1. The customer is always number one. Train employees to understand that “without customers, there is no profit, and without profit there is no business, and without business there is no company, and without the company, there is no you.”

2. Never make a customer wait. Greet customers as soon as they walk in the door and assist them immediately. If necessary, ask them if they can wait; if this is not possible, make an appointment for another time.

3. Never ignore a customer. Always check back with customers to make sure they have what they need; if not, offer assistance.

4. Be professional. Look, act, and speak professionally and enthusiastically.

5. Show appreciation that the customer is giving you his or her business. This has a major influence when customers decide whether or not they will return.

6. Remember the names of regular customers and always use them when addressing them. Person-alise service by learning preferences and thereby turn clients in to life-long customers. Investing in employee customer service training is possibly as important as perfecting the quality of products and services. You might have the best product or service available, but if customers are not treated well they will not come back. By treating customers with the utmost importance, respect and courtesy, and providing them with outstanding service, more referrals will be received; and more referrals equates with greater returns for your organisation. [5]

Contact Centres

Tony DeNucci, national sales and marketing leader of benefits outsourcing at Towers Watson in the United States, works with multidisciplinary teams that provide benefit administration outsourcing services. DeNucci has a focus on strategic service delivery initiatives; he


writes that the quality of call centre customer service has been falling over the last decade—and customers have come to expect poor service. The central components of a call centre are people, process and technology. To deliver high-quality customer service, these three elements must be well balanced. This can be achieved by focusing on the following:

1. Comprehensive training with ongoing refreshers. Training, retention programs and career development are all vitally important. The duration and depth of Customer Service Representative (CSR) training is directly related to the delivery of high-quality customer service. The quality of this training hinges largely on the experience and background of the trainer. Automated training systems are not satisfactory. Advanced technology enables new hires to be consigned rapidly onto telephones by providing scripts to read to callers; however, quality is often sacrificed for the sake of speed. It is claimed that this practice saves money but, unfortunately, it comes at the cost of poor service. Workloads in fact tend to be increased as callers repeatedly call back to find answers. This rapidly outweighs any savings benefits associated with shortened training times. High-quality call centres provide in-depth training, which helps CSRs become experts in customer service. A well-trained CSR learns to probe for a caller’s unspoken needs; he or she then analyses and resolves them.

2. Management of employee turnover. It may take a CSR months to master the required content knowledge and telephone etiquette. This makes it critical that employee turnover be carefully managed. Reportedly, the human resource call centre industry has turnover averages of up to 30 per cent. By providing career development paths and recognition for CSRs, employers help to engender a consistently high quality of service to their customers.

3. Measurement and reporting of relevant results that reflect quality. High quality customer service is defined by calls that are satisfactorily resolved, with correct information being provided during the first interaction and rated highly by participants.

4. Accessible, easy-to-use technology. High-quality call centres deploy technologies that enable CSRs to easily gain access to information; real-time management data is gathered, allowing managers to spot trends quickly; customer data is integrated with the call centre technology to minimise cumbersome searching for important information. [6]

Survey and Research Data

High Premium Paid for Exceptional Service

In a 2011 Webtutorials survey, 300 respondents connected with a small and mid-size business (SMB) reported that they were prepared to pay up to a 20 per cent premium for exceptional service. Of the respondents, 58 per cent preferred to do business with SMBs, whereas 16 per cent preferred to do business with larger organisations. Eighty per cent of respondents indicated they were leveraging Voice over Internet Protocols (VoIP) to improve contact centre capabilities and reduce operating costs, or they had plans to implement VoIP within the next 12 months. Unified Communications (UC), which integrates voice, email and chat communications, was either being used or soon would be used by 64 per cent of those surveyed. Overall, there was a growing trend towards adopting VoIP and UC to reduce costs and provide specialised skill sets across various locations, thus improving customer service. [7]

Poor Service Quality Leads to Distrust

In 2011, a Corporate Trust Survey of 600 respondents reported that the following corporate actions led to distrust (see Figure 1, below):

Figure 1: Poor Service Quality Leads to Distrust [8]

0 10 20 30 40 50 60 70 80

CEOs/senior executives being overpaid (77%)

Corruption among corporate management (71%)

Companies make up lost earnings at their customers' expense (69%)

More and more products being made overseas (62%)Declining product/service quality (56%)

Unsafe products (47%)

Poor treatment of workers (43%)

Lack of stability of "top" companies (41%)

Database security threats (40%)Lack of care for the environment (37%)

Lack of government oversight (37%)

Stock market volatility (35%)

Ill-advised services (34%)


CEOs/senior executives being overpaid (77%)• corruption among corporate management (71%)• companies make up lost earnings at their • customers’ expense (69%) more and more products being made overseas • (62%) declining product/service quality (56%)• unsafe products (47%)• poor treatment of workers (43%)• lack of stability of “top” companies (41%)• database security threats (40%)• lack of care for the environment (37%) • lack of government oversight (37%) • stock market volatility (35%)• ill-advised services (34%) • [8]

Customer Gripes

A 2011 Consumer Reports Survey found that:

65% of respondents were “tremendously • annoyed” by rude salespeople 64% had left a store in the previous 12 months • because of poor service 71% were extremely irritated when they couldn’t • reach a human on the phone 67% hung up the phone without getting their • issue resolved.

Respondents had the feeling that companies deliberately hide phone numbers, sidestepping calls and steering customers to online FAQs instead of to live human beings. The following customer gripes were rated on a 10-point scale, with 10 being the most annoying:

1. Most annoying phone-related customer gripes:

i. can’t get a human on the phone (8.9)

ii. many phone steps needed (8.5).

2. Most annoying in-store customer gripes:

i. rude salesperson (8.7)

ii. pushy salesperson (8.2). [9]

Fewer Satisfied Banking Customers

In October 2010, Accenture surveyed 2,500 respon-dents about customer service received from banks in the United Kingdom. When compared with a 2007 survey, the number of satisfied customers declined from 84% to 73%, while those who would recommend their bank to family and friends fell from 64% to 58%. Respondents aged from 18 to 24 reported that:

50% were more likely than other customers to • move to another bank 30% were less likely to complain than older • customers13% had registered a grievance within the past • 12 months.

This age group also placed more significance on value for money than their older counterparts, who favoured the promise of speedy and efficient service. On a daily or weekly basis, 69% of respondents reported using Internet banking, 19% used branches, 7% used mobile channels, and 6% used call centres. Three-quarters of customers said that they rarely, if ever, banked by telephone. [10]

Banks’ Customers Value Good Services Most… Not Bank Executives

A 2007 Forester survey about the value of customer service asked customers which attributes were most important when doing business in a bank. The customers, from more than 4,000 North American households, responded (see Figure 2, below):

Figure 2: Which Attributes Are Most Important When Doing Business in a Bank? [11]

Good services (48%)

Nearby locations (42%)

Good reputations (33%)

Low prices (10%)

Quality products (8%)

Product variety (3%)


good services (48%)• nearby locations (42%)• good reputations (33%)• low prices (10%)• quality products (8%)• product variety (3%). •

The same survey asked executives from North American banks with $30 billion or more in assets which of the following was the most important component of their organisation’s customer-facing strategies. The executives responded (see Figure 3, below):

Figure 3: Executive Responses: What Is the Most Important Component of Your Customer-Facing Strategy? [11]

sell more products to existing customers (40%)• improve customer satisfaction (18%)• acquire new customers (17%)• improve the quality of customer service (15%)• other (5%)• introduce new of improved products or • services (5%) cut the costs of servicing customers (2.5%)• increase adoption of on-line channels (2.5%)•

Example Cases

Valuable lessons can be learned from the following organisations:

Midwest Regional Hospital, United StatesService Delivery Improvements Save Nursing Staffing Costs

A major study to improve nursing staffing plans at a 200-bed regional hospital in the Midwestern United States, resulted in the development of a model for predicting appropriate staffing levels for any given week, day, shift or hour. This greatly improved service delivery and also reduced costs. Patient demand and the activity times required to meet this demand were able to be closely matched. Staffing levels were based on extensive measurements and the observation of activi-ties. Historical staffing performance was modelled and compared with the proposed process changes; this revealed a significant opportunity for financial savings, which motivated the management team. The hospital made great improvements, evidenced by moving from the 60th percentile in nursing hours per patient day to the 25th percentile. By properly aligning work elements and matching these with roles, the work place became more organised, morale was enhanced, and staffing costs improved. [12]

Presbyterian Healthcare Services, United StatesCustomer Service Excellence Saves Significant Costs

Presbyterian Healthcare Services wanted to improve satisfaction levels for customers who interacted with its contact centre. Business processes associated with hundreds of customer interactions were catalogued and examined using Sigma design methodologies. This resulted in the implementation of an integrated customer-care system, bringing together a wide range of technologies, including the Web, live agents, automated voice, and patient options for scheduling proactive call-backs. The intent was to create a seam-less view of customer service, so that customers would feel they were dealing with one organisation. Customer services were centralised where appro-priate; however, local access was retained when this clearly provided better service. The results included a

Sell more products to existing customers (40%)

Improve customer satisfaction (18%)

Acquire new customers (17%)

Improve the quality of customer service (15%)

Other (5%)

Introduce new of improved products or services (5%)

Cut the costs of servicing customers (2.5%)

Increase adoption of on-line channels (2.5%)


218 per cent increase in self-service options, and an eight per cent increase in the use of automated systems. Customer satisfaction improved by 44 per cent, with an 18 per cent increase in efficiency. This resulted in significant cost savings. [13]

Brandedmedia, UKCustomer Service Excellence Brings Customer Satisfaction

Brandedmedia began business by making CDs and DVDs for companies in the United Kingdom to give away as marketing tools; subsequently, it reached sales of £1m in the first year of trading. The entrepre-neur owner was passionate about improving customer service in his chosen industry. Attention to detail and reliable feedback ensured that Brandedmedia achieved 90 per cent customer satisfaction, and boasted a high percentage of repeat business and referrals. Brandedmedia aimed at being excellent, not just good. Significantly, Brandedmedia chose not to make personal gain its primary focus but upon the people who served the organisation. Brandedmedia employees worked in a great environment, where they were treated as equals and became part of a closely knit team. [14]

Zappos.com, United StatesProtect Customers from Discomfort

Zappos.com, founded in 1999, sold on-line shoe apparel. In 2000, the company had reached $1.6 million in sales; in 2008, sales had exceeded $1 billion. Zappos.com reported that it had achieved this growth by being aligned around its mission of providing the best customer service possible. Rather than short-term profits, the company focused on maximising service to customers. Zappos.com stated that it was a service company that happened to sell shoes and that it sought to protect customers from being taken for granted or subjected to discomfort. [4]

Assurant Solutions, United StatesContact Centres: Waiting Time for Customer Service

The traditional methods used by Assurant to gauge CSR expertise proved to be highly subjective. There-fore, Assurant developed a new model to measure CSR performance in an unbiased way, and particularly to match callers with CSRs. The best match between a caller and a CSR was not always immediately available; this required customers to queue. This neces-sitated the assessment of customer tolerance levels and of the time it was taking for CSRs to become available. Conventional contact centre wisdom held that 80 per cent of calls should be answered in 20 seconds or less to maintain customer satisfaction. Interestingly, however, Assurant found that satisfaction had little to do with this; in fact, most customers were willing to wait 39-49 seconds before annoyance or tolerance levels affected outcomes. This available timeframe enabled the most ideal customer/CSR match to be found, which enabled Assurant to report an impressive 187 per cent revenue improvement over baseline. [15]

OpenRoad Auto Group, CanadaCustomer Service Design Leads to 28% Growth in Sales

OpenRoad Auto’s customer loyalty was significantly enhanced by improving the emotional connection associated with sales and services. Competitive differentiation was sought by delivering exceptional dealership experiences rather than leveraging branding. Goals included:

maximising floor space without sacrificing • customer experiences shifting power and control from sales personnel • to the customer creating experiences that encouraged customers • to spend more time in the dealership.

A unique retail environment was created that supported informed decisions at all levels of the sales cycle. Internet kiosks provided information that assisted customer’s buying decisions. A coffee lounge and kids’ play area helped parents to spend uninterrupted time making purchase decisions. Finally, an attendant delivered cars to the customers. This service design strategy contributed to a 28 per cent increase in retail sales in one year. OpenRoad received a recognition award form Toyota’s president, and was named the top-selling Toyota dealership in Canada for 2006. [16]


Measure and Evaluate

The following provide some simple ideas on how the effectiveness of customer service excellence may be assessed:

Customer Contacts, i.e. the percentage of staff (managers and/or employees) in direct contact with customers, or the number of staff (managers and/or employees) in direct contact with customers. This is a measure of the number of customer contact points. It can be used as an indicator for assessing the strength of customer relationships. The more customer contact points, the more secure the relationship and the greater the opportunities to share information.

Training – Customer Care, i.e. the percentage of customer service personnel trained in customer care techniques. This measure provides an indication of employee preparedness in customer care.

Customer – Communication, i.e. the frequency of communication with customers (for example, meet-ings, product presentations, telephone calls, customer reports or visits). This measure provides an indication of the strength of an organisation’s relationship with its customers.

Customer Relationship – Duration, i.e. the average duration of relationships with customers, or the dura-tion of relationships with key or individual customers. This measure requires a clear definition of what constitutes a customer relationship. The measure can be used in the assessment of customer loyalty.

Customer Complaints – Number of, i.e. the number of customer complaints over a period of time, or the number of customer complaints per million units sold or shipped, or the number of customer complaints divided by the total number of orders. This measures customer complaints as a proportion of units sold or orders taken.

Customer – Retention, i.e. the number of regular customers over the past year/number of customers in total, or the percentage of customers current in one period retained over the next period, or the value of repeat sales/total sales, or the percentage of contracts renewed. This measure provides an indica-tion of customer retention, loyalty or the value of this loyalty.

Customer Feedback and Suggestions, i.e. the number of suggestions or pieces of feedback received per customer in a given time period, or the percentage of customers that make suggestions or provide feed-back in a given period, or the percentage of customer suggestions or feedback that are implemented or acted upon, or the average value of suggestions implemented, or the average lead time to respond to suggestions or feedback. This measure provides information for monitoring customer feedback processes.

Customer Loyalty, i.e. the aggregation of loyalty measures such as repeat purchases, the number of different products purchased, relationship duration, and loyal customers. This measures overall customer loyalty and may be presented as an index inconjunction with other leading measures such as customer satisfaction to predict market trends and assess current organisational performance.

“The goal as a company is to have customer service that is not

just the best but legendary.”

Sam Walton, Founder of Wal-Mart

“Your most unhappy customers are your

greatest source of learning.”

Bill Gates


Self-Assessment

Self-assessments can be used to find out how effective organisations are at implementing various strategies, tools and techniques. The following self-assessment will help you to determine how customer friendly your organisation is, and provide ideas on how to improve. The self-assessment considers customer orientation across five dimensions: (1) general, (2) leadership style, (3) strategic vision, (4) internal processes, and (5) human resources.

Complete the representative survey (see Figure 4, below) by ticking the column that best reflects your organisation’s current situation in terms of customer orientation.

(Note: this is a representative portion of the full self-assessment on customer orientation, which may be found in the member’s area of BPIR.com)

Customer Orientation Self-Assessment A B C

Yes Some-what No

I General 1. Do you know who your customers are and how many of them there are? 2. Do you listen effectively to all your customers and do you familiarize yourself with their situation? 3. Did you segment your customers based on their needs? 4. Are more than 75% of your customers satisfied? 5. Do you anticipate customer needs? II Leadership style 1. Is there commitment to customer orientation at top management? 2. Is management convinced of the importance of satisfied customers and do they act accordingly? 3. Have you integrated customer satisfaction into your organization’s vision? 4. Does management recognize notable trends, and do they anticipate these in a timely manner? 5. Is management open to suggestions and ideas from customers? III Strategic Vision 1. Are there at least 5 customer orientation objectives and related performance measures formulated in the

corporate scorecard or strategic business plan? 2. Do you have a partnership relation with all your customers based on mutual respect and trust? 3. Do you guarantee your customers a minimal service level and/or complete satisfaction? 4. Do you continuously benchmark with regard to customer satisfaction? 5. Are all of your employees involved with the improvement of customer orientation? IV Internal Processes 1. Have you appointed process owners for controlling business processes? 2. Is the phone in your organization answered within 3 rings in more than 80% of the cases? 3. Is every process in your organization arranged in such a way as to optimally comply with customer

expectations? 4. Do you use measured customer satisfaction as an indicator for process improvement? 5. Are employees personally responsible for solving customer problems? V Human Resources 1. Do you give extra rewards to employees who continuously perform in a customer-oriented manner? 2. Are your customer service employees free in taking decisions to satisfy customers? 3. Are your employees’ interests and the interests of your customers related? 4. Do you encourage your employees to generate ideas regarding the increase of customer satisfaction? 5. Do you have an introductory program in which new employees are also educated concerning the

importance of satisfied customers? Total of ticks in each column

Column scores: multiply the number of ticks in column A “yes” by 3; column B “somewhat” by 2; and, column C “no” by 1.

Total Score (add the scores in column A, B and C together)

Figure 4: How Customer Friendly Is Your Organisation?

Scoring Key

Add the number of ticks within each column and then multiply the ticks in column A by 3, column B by 2 and column C by 1. Next, add the total of the column scores together. The total gives you your overall customer orientation score.

Recommendation

The closer your total score gets to 75, the more customer-friendly your company is. The closer your total score is to 25, the lower the customer orientation. Discuss your score in a team and identify what can be done to improve it. Statements with a score of 1 in the table suggest areas where improvement actions may be taken.


Summary of Best Practices

The following is a summary of the best practices and/or insights associated with customer service excellence that are covered in this Best Practice Report:

1. Excel in customer service delivery by focusing on the emotion, trust and control associated with customer interactions. Note: emotions influence what we remember, how we judge service encounters, and the decisions that we make; trust is essential in any enduring relationship; and, control over one’s environment represents a fundamental human need.

2. Build your organisation’s customer service communications and employee appearance to reflect a platform of trust.

3. Allow customers to be in control or to have a perception of control to minimise the uncertainly connected with transactions. An example of control is when customers have the ability to manage when a service is delivered. An example of perceived control is when airlines post information about flight delays, thus creating a sense of cognitive control for the customer.

4. Never compromise on the service your organization offers to customers. Take care to actively listen to customers.

5. Gather feedback from employees about ways to improve customer service.

6. Measure how your organisation adds value to the customer’s operations.

7. Know your customer’s business and the business of your customer’s customers

8. Shape reward and recognition systems to encourage customer service excellence.

9. Protect customers from distracting internal tasks and rules, empower employees to put customers (not procedures) first, and never make a customer wait.

10. Show appreciation for customers for rewarding you with their business.

Words of Wisdom

“The goal as a company is to have customer service that is not just the best but legendary.” Sam Walton, Founder of Wal-Mart

“Your most unhappy customers are your greatest source of learning.” Bill Gates

“It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.” Henry Ford

“Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers.” Ross Perot

“The customer experience is the next competitive battleground.” Jerry Gregoire, CIO, Dell Computers

“Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.” Peter Drucker

“Being on par in terms of price and quality only gets you into the game. Service wins the game.” Tony Allesandra

“You’ll never have a product or price advantage again. They can be easily duplicated, but a strong customer service culture can’t be copied.” Jerry Fritz

“In the world of Internet Customer Service, it’s important to remember your competitor is only one mouse click away.” Doug Warner


Conclusions

Organisations that want to provide outstanding customer service have to address every aspect of customer management with equal intensity. Top-notch workflows and supply chain performance are essential to excellent customer service. But, so too are the underlying emotions. trust and control customers experience during interactions with an organisation. Emotions, trust and control often drive, or subconsciously reinforce, how customers perceive service interactions. Organisations that take the time to understand each of these elements can discover opportunities to create improved, excellent customer services. Poor customer service—including such things as indifferent attitudes, lazy or sloppy service and lacklustre follow up—are extremely damaging to an organisation’s reputation, and can lead to a loss of credibility and trust. Obviously, this means brand value can be damaged and sales can be lost. When looking to provide outstanding customer service, success is measured in terms of how a customer benefits from the help that an organisation offers. The ability to create unique value for customers differentiates an organisation from its competitors; this, in turn, enables a company to set a fair price for what it offers the customer.

“It is not the employer who pays the wages.

Employers only handle the money. It is the customer who pays

the wages.” Henry Ford

“Spend a lot of time talking to customers

face to face. You’d be amazed how many

companies don’t listen to their customers.”

Ross Perot

“The customer

experience is the next competitive battleground.”

Jerry Gregoire, CIO, Dell Computers


References

These articles and reports can be found in full at www.bpir.com.

[1] Dasu, S., Chase, R., (2010), Designing the Soft Side of Customer Service, MIT Sloan Management Review, Vol. 52, Iss. 1, pp 33, Massachusetts Institute of Technology, Cambridge.

[2] Hood, T., (2011), Powerful service, Director, Vol. 63, Iss. 11, p 20, Institute of Directors, London.

[3] Charan, R., (2010), Profitable Growth, Leadership Excellence, Vol. 27, Iss. 11, pp 3-5, Executive Excellence Publishing, Provo.

[4] Bell, C. R., Patterson, J. R., (2009), Imaginative Service, Leadership Excellence, Vol. 26, Iss. 5, pp 10-11, Executive Excellence Publishing, Provo.

[5] Goff, K., (2009), Customer Appreciation Means Big Bucks for Your Business, The American Salesman, Vol. 54, Iss. 7, pp 9-12, National Research Bureau, Burlington.

[6] DeNucci, T., (2011), How to Put the Quality Back in Call Center Customer Service: Potentials and Pitfalls, Benefits Quarterly, Vol. 27, Iss. 2, pp 7-11, International Society of Certified Employee Benefit Specialists, Brookfield.

[7] Anonymous, (2011), Fonality Survey Finds Small- and Mid-Size Businesses Can Charge a Premium for Excellent Customer Service, Business Wire, San Francisco.

[8] Anonymous, (2011), State Of Distrust: New Survey Indicates Corporate Trust Waning Among The Influential Americans®, PR Newswire, PR Newswire Association LLC, New York.

[9] Anonymous, (2011), Consumer Reports Survey: Two in Three Consumers Have Walked out of a Store Because of Poor Customer Service, PR Newswire, PR Newswire Association LLC, New York.

[10] Anonymous, (2011), Banks’ Relationships With Customers Under Growing Pressure in UK and Ireland, According to Accenture Survey, Business Wire, San Francisco.

[11] Trask, B., (2008), Creating Customer Experiences, Community Banker, Vol. 17, Iss. 10, pp 42-44, America’s Community Bankers, Washington.

[12] Stansfield, T. C. Massey, R., Manuel, J., (20011), Life support for hospital staff, Industrial Engineer, Vol. 43, Iss. 2, pp 28-32, Institute of Industrial Engineers, Norcross.

[13] Anonymous, (2009), Presbyterian Improves Customer Experience, Health Management Tech-nology, Vol. 30, Iss. 8, pp 26-27, NP Communications, LLC, Nokomis.

[14] Oldfield, C., (2008), In pursuit of excellence, Director, Vol. 62, Iss. 3, p 31, Institute of Directors, London.

[15] Hopkins, M. H., Brokaw, L., (2011), Matchmaking With Math: How Analytics Beats Intuition to Win Customers, MIT Sloan Management Review, Vol. 52, Iss. 2, pp 35, Massachusetts Institute of Technology, Cambridge.

[16] Bedford, C., Lee, A., (2008), Would You Like Service with That?, Design Management Review, Vol. 19, Iss. 1, pp 38-46, John Wiley & Sons, Inc., Hoboken.

The BPIR Best Practice Report is a monthly publicationdelivered as one of the many membership benefits of

the Business Performance Improvement Resource (BPIR). To find out more about membership, email [email protected]

or visit the homepage at www.bpir.com.

Issues of the BPIR Best Practice Report

Action Planning • Activity Based Management • Benchmarking • Business Continuity Planning • Business Excellence • Call Centre Representatives • Change Management • Compensation Schemes • Corporate Culture • Corporate Performance Management • Customer Complaint Resolution • Customer Complaint Resolution 2 • Customer Knowledge Management • Customer Loyalty • Customer Market Segmentation • Customer Order Management • Customer Profitability Management • Customer Satisfaction Management • Customer Satisfaction Surveys • Customer Support and Service • Diversity Planning • Emotional Intelligence • Employee Development • Employee Motivation • Employee Onboarding • Employee Suggestion Schemes • Enterprise Risk Management • Ethical Business Practices • Flexible Work Arrangements• Knowledge Creation •

Leadership Development • Leadership Development 2 • Lean Techniques • Managing Innovation • Manufacturing Outsourcing • New Product Development - • Innovation Strategy New Product Development Tools • Occupational Safety • On the Job Training • Organisational Culture • Organisational Ethics • Performance Management • Product Lifecycle Management • Project Management • Recruitment and Selection • Relationship Management • Six Sigma • Strategic Planning • Strategy Deployment Metrics • Succession Planning • Succession Planning 2 • Supply Chain Management • Sustainable Development • Target Marketing• Total Quality Management • Work and Life Balance • Workplace Conflict • Workplace Wellness•

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