using customer service to position a business-a first direct case

8/13/2019 Using Customer Service to Position a Business-A First Direct Case

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Using Customer Service to position a business-A First Direct Case

IntroductionWhen customers buy manufactured goods, such as a mobile phone, a

magazine, a bicycle, some new clothes or a computer, they usually know precisely what they are getting. These products have tangible qualities.Customers make choices based on the particular features of each

product. Retailers need to provide good customer service, so thatcustomers can find out more about products before making a purchaseand can get a refund or after sales service if a product proves to be faultyor unsatisfactory. !owever, customer service is only a small part of theoverall offer. "or e#ample, a customer may e#pect good service when

buying some new shoes, but this is unlikely to be the main factor indeciding whether to make a purchase. "actors like price, comfort, styleand brand are likely to be more persuasive.

Customer service is more important for businesses that provide servicesrather than physical products. $n fact it is often good customer service that wins and keeps customers in thefirst place. %any service industries provide essentially similar products. "or e#ample, all hotels provideaccommodation and most offer food as well. &ll banks offer customers current and savings accounts. $t can bedifficult to differentiate between service products. They have intangible qualities. This is why it is important toensure that customers have a good e#perience.

'ood customer service can be used by businesses to position themselves in the marketplace. (ositioning helpsan organisation to become distinctive. $t helps consumers to make choices.

first direct is a division of the !)*C *ank. $t provides a range of banking services, offering customers products such as current accounts, credit cards, savings accounts, insurance and loans. What is different is thatfirst direct does not have a branch network. Customers access services over the internet or by telephone orthrough mobile phone banking services and te#t messaging. first direct has been providing online bankingservices for almost + years. $t now has more than -, employees and . million customers. /ver 0 1 oftransactions use the online channel. "or customers that wish to contact the bank by phone, first direct 2s 34call centres work +5 hours a day, 6 days a week, -78 days a year. They receive more than + , calls eachweek.

This case study shows how the online bank first direct positions itself inthe retail banking sector. $t illustrates how customer service has becomea key factor in helping the bank to differentiate its offer to customers in a

competitive market

What is customer service?Customer service is the service provided to customers before, during andafter purchasing and using goods and services. 'ood customer service

provides an e#perience that meets customer e#pectations. $t producessatisfied customers. *ad customer service can generate complaints. $t


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can result in lost sales, because consumers might take their business to a competitor.

'ood customer service involves developing bonds with customers, hopefully leading to longterm relationships.$t creates advantages for both customers and the business alike. Customers benefit because the business is

providing a service that meets their needs. The business benefits because satisfied customers are likely to berepeat customers. They will stay with the business. !owever, good customer service is not easily achieved. $t

takes time to establish. $t requires investment to deliver consistent standards.

first direct 2s mission statement is 2pioneering amazing service2. This means that customer service is used to setthe direction for the business. $n other words, customers come first. This is not an empty slogan. %arketresearch shows that, in terms of customer satisfaction, first direct is the 342s number one bank. $t confirmsthat the bank has a reputation for quality customer service. This has also been demonstrated by comparativestudies. The bank was the leading performer in the Top 8 Call Centres for Customer )ervice benchmarking

programme and it came top in the "inance )ector in the $nstitute of Customer )ervices 9$C): )atisfaction&wards.

&t the heart of providing customer service is the notion of 2respect2. This involves respecting the business2employees, as internal customers within the organisation, as well as e#ternal customers. 3sing this conceptinfluences how colleagues and individuals at first direct act towards each other as well as how they deal withcustomers.

To achieve customer satisfaction, first direct sets and monitors service standards. "or e#ample, four out offive calls are answered within + seconds. /n average a customer2s call is answered in - seconds. Customerservice representatives are available around the clock. This means that customers always get to talk to a real

person not a machine and they never have to push buttons before they get to talk to someone.

The focus in all operations is on providing quality customer service. This helps first direct in the marketplace.$t means that even though it is an online bank, it can provide a personal service missing in many other banks.The intention has been to avoid becoming a faceless call centre. $ndividuals are well trained and areempowered to act on customer issues. This means that customers are not passed from one person to another.The same customer representative will phone to deal with an issue, so that the customer is not always dealingwith different individuals. $n this way, first direct gets to know its customers. $t can even provide a personaltouch, like occasionally sending flowers to a customer or their partner to mark a birthday.

To maintain these standards first direct identifies what customers e#pect from banks in terms of customerservice provision. $t then builds these customer e#pectations into the services it provides. "or e#ample, thisinvolves;

ensuring first direct colleagues are courteous and informed that they know about the bank2s productsand services dealing with any complaints promptly and fairly following up sales offering informed guidance on any products that are available 9sub


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Customer expectations&ll first direct customers have needs; they want banking services. They also have e#pectations about howthese services should be delivered. To meet these e#pectations, first direct has to know what its customerswant 9and what they might want in the future:. To find out more, first direct carries out market research.

%arket research is a process that enables a business to find out more about its customers and markets. $t provides direct feedback that can be used to build and refine services. first direct collects a range of data thatidentifies market trends through several research activities;

"irst $mpressions involves contacting new customers shortly after they


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leader, listen to some live calls, e#perience the business values and understand how first direct treats itscustomers fairly. This helps them to understand the core values of customer service delivery.

?very piece of training at first direct is focused around servicing the customer to the highest standard. Thecourse mi#es technical or procedural aspects together with communication, sales, brand recognition, role playsand live call e#perience. The course appeals to all learning styles and preferences, because it provides a

blended approach to learning. This involves classroom work with facilitators, innovative e learning basedtraining, listening to and taking live calls, plus dedicated coaches to help motivate and develop individuals.&nother way of meeting customer needs is through the bank2s website. The website must be easy to use. Thishelps customers to complete their transactions. The first direct website is constantly monitored to look forareas of improvement. $t has one of the best security systems in the banking industry to prevent fraud. firstdirect was also the first bank to develop a platform for i(hone banking. $t is now possible for customers toreceive real time balances direct to their mobile phone.

he benefits of providing good customer service(roviding good customer service enables first direct to create adistinctive position for itself in relation to competitors. This requiresinvestment in employees, training and processes to maintain highstandards. !owever there is a payback; good customer service canreduce marketing and some operational costs.

%arket research clearly shows that customers en

using customer service to position a business-a first direct case

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