1
o Managing of External Customers Satisfaction Customer Value
Management Delivering Consistent Customer Service Quality Ensuring
One Stop Solution/First Contact Resolution Improving customer
service competencies Role of effective communication Knowing how to
deal with different types of customers Effectively handling
customer complaints. Managing security and privacy of customer
information o Managing the Speed of Service Delivery Measuring and
controlling Customer Service Quality Customer Service Performance
Standards Measuring Intangible Service Quality Understand Moment of
Truth Matrices for Customer Service Management-Exercise o
Strategies for the recovery of a lost customer
It isn t always about money
What Should We Be DoingTo stand out in the crowd? To create a
life changing experience? To create stories about us?
customer obsessed -clear sense of their target customers and
their needs
Internal FocusWhen the organization has its face focused
internally it has its butt toward the customer.Paraphrased from
Funky Business
There is only one boss. The customer, and he can fire everybody
in the company from the chairman on down, simply by spending his
money someplace else. . . Sam Walton
Who are Customers?The most important person in any business. Is
not dependent on us. We are dependent on them. Is not an
interruption of our work, but the purpose of it. Is part of our
business not an outsider. Does us a favor when they come in. We
aren t doing them a favor by serving them.
Who are Customers?A customer is not just money in the cash
register. They are human beings with feelings and deserve to be
treated with respect. Is a person who comes to us with their needs
and wants. It is our job to fill them. Deserves the most courteous
attention we can give them. They are the lifeblood of every
business.
y
It takes 12 positive service incidents to make up for 1 negative
incident. The average wronged customer will tell 8-16 people about
it. Over 20% will tell more than 20 others.
y
y
y
91% of unhappy customers will not willingly do business with you
again. 70% of complaining customers will do business with you again
if you resolve the complaint in their favor. 95% of complaining
customers will do business with you again if you resolve the
complaint instantly.
y
y
y
A typical business hears from only about 4% of its dissatisfied
customers.y
96% just go away 91% will never come back
y
Source: Understanding Customers by Ruby Newell-Legner
12
YOU as a customerShare an experience of Good Customer
Service
YOU as a customerShare an experience of Bad Customer Service
Customer Service - GUESTyG yU yE yS yT
Greet the customer Understand customer needs Explain features
and benefits Suggest additional items Thank the customer
What qualities are important to our customers?y Accuracy y
Friendliness y Timeliness y Efficiency y Courtesy y Honesty
What does Customer Service Excellence Mean?The 5 criteria,
against which you will be measured, Customer Insight = Who are your
customers? How do you engage with/involve them? How and What do you
measure? Are you actually improving services? Culture = Key that
customer focus is embedded throughout the organisation, to all
customers; None of the criteria to be seen in isolation; Linked to
each other and to the Key Concepts Information and Access =
Information is a key concept; Effective communication crucial to
customer engagement; Customer frustration at lack of information
Delivery = Key driver of satisfaction; All organisations stand or
fall by their results; Well-targeted results mean more useful data
to learn from; Reviewing & improving achievement(PDCA)
Timeliness and Quality of Service = Timeliness a key satisfaction
driver.
Opportunities For Customer Delighty What happens when you first
interact
with a
customer? y What occurs to build a relationship? y Do you spend
more to get new customers than on enhancing the relationship with
current customers? y What makes you unique?
Checklist for Customer Focused Organization
1) This organization is focused externally 2) Staff are fully
empowered to delight customers 3) We are constantly looking for
better ways to delight our customers 4) We listen to what our
customers are telling us and act accordingly 5) We know who our
customers are 6) We know what our customers want 7) We have an
ongoing process to monitor how delighted our customers.
Where Are We Now?8) Our staff are trusted to do the right thing
9) All of our policies make sense 10) We are actively engaged in
building long term relationships with our customers 11) Our plans
are current and regularly updated 12) Training is important to this
organization 13) Training is relevant to what we do 14) We realize
that the smallest things can have the biggest impact 15) We treat
every customer the way they want to be treated
The importance of the customerWhat business are we really
in?
The importance of customersAll organizations are in the business
of satisfying customers needs.
What do customers want?The highest satisfaction when using the
organizations products and services.
The three pillars of customer satisfactionPRODUCT FACTORS
CUSTOMER SATISFACTIONCONVENIENCE FACTORS HUMAN FACTORS
Managing for customer satisfactionCommitment+ Abilities +
Standards + Quality products and services
Communication+
Attention+
to Detail= Excellence Total customer satisfaction
What Makes Legendary Service? Personal Attention Introduction
and names Communicating professionally and explain what you are
doing Respect and appreciation Looking and acting as a
professional
Practice makes perfect
So, why is this important to me??
Inspiring people to perform
Inspiring people to perform
Arousing interest
Engaging with new ideas
Practising new skills & behaviours
Applying to the real world
Who are customers?
The decisionmaker
The beneficiary
The user
Who are customers?Customers are not necessarily the people who
buy our products.
CUSTOMER NEEDS, WANTS AND EXPECTATIONS
Need
food
what we must have what we would like to have what we can
have
Want
caviar and truffles
Expectation
chicken and vegetables
33
External customersExternal customers of an organization are the
ones outside the organization, whom the organization serves.
and accurately
R: Reliability, the ability to provide what was promised,
dependably
A: Assurance, the knowledge and courtesy of employees, and
theirability to convey trust and confidence appearance of personnel
to customers
T: Tangibles, the physical facilities and equipment, and the
E: Empathy, the degree of caring and individual attention
provided
R: Responsiveness, the willingness to help customers and
provideprompt service.
Internal customersInternal customers are those who work within
the organization and use one another s departments products or
services as part of the supply chain, to serve external
customers.
Empathy Statementsy I understand your frustration. Let me try to
help you
with y I understand how you feel. Let resolve this matter for
your immediately y I can understand your concern. Thank you for
bringing this to our attention. y I understand how upsetting this
can be, I would definitely feel the same way
Empathy Statements ..conty That must have been very inconvenient
for you. Being
our valued customer, I would like to see this situation
corrected for you. y I realize how disappointed you must be. I will
definitely pass that information to the appropriate department. y I
am sorry to hear that you have had this experience. I can assure
you that this is not the kind of service we expect our customers to
receive.
We Know Good Service When We See It The Pickle Give em a pickle
The Fish Story - Tough Job, but people have fun Johnny the Bagger -
Make a persons dayCustomer Service Magic
Secret Service John Roberts Spa Great processes for when a
failure happens Customers for Life Sewell Cadillac - Under-promise
over deliver Airline Baggage Handler- Mailed fallen off luggage
tags to customers Wally the Taxi Cab Driver Offers coffee/tea,
newspaper, music Ritz-Carlton Associate Customers PC, flew it to
Hawaii Nordstrom Associate Perfume from another store, no
additional charge
Ensuring Excellent Customer Servicey Easy and Wide Access y
Timeliness of Service y First Call Resolution y Consistent Service
Delivery Quality y Proper Workload and Service Level y Strict
Privacy of Customer s Information y Proactive Fraud Protection y
Customers Relationship Management y Compliance with the Rules and
Regulations
PDC-NUST
40
http://www.youtube.com/watch?v=50yfFsz9TbI&feature=related
SatisfactionProcess: What the company did? Satisfaction: How did
the customer feel? Behavior: How did the customer behave?
Satisfaction is a means, not an end itself. Best behavior Repeat
purchase, Recommend
Customer Satisfaction Formulasy Level of Customer Satisfaction =
What a customer
perceives they really get, minus what a customer expected to
get
Customer Satisfaction Formulasy Customer Sacrifice = What a
customer wants minus
what a customer settles for
Customer Satisfaction Formulasy Customer Experience Management =
What a company
delivers vs. what a company has promised
The three pillars of customer satisfactionPRODUCT FACTORS
CUSTOMER SATISFACTIONCONVENIENCE FACTORS HUMAN FACTORS
Human factors in customer service
Implementing customer care1. 2. 3.
Measure customers satisfaction. Look for the causes of poor
customer service. Deal with the causes.
Tools to measure customer satisfaction1. 2. 3. 4.
Customers survey Conference for customers Customers suggestions
box Revenue
THE SERVICE FACTOR
Customer service can be defined as: The range of help and
support offered to customers before, during and after a sale has
been made. It begins with the first contact and only ends when the
customer ceases interaction with you.
50
CUSTOMERS
Customers are people, work-teams, businesses or other
organisations which utilise goods and services from another. This
may be in exchange for money (payment) but does not necessarily
involve the exchange of money. We must know who our customers are,
where they come from, their needs and their buying intentions.
51
CUSTOMER FOCUS
Successful organisations are customer focused! They plan to meet
customer needs, wants and expectations.
52
SERVICE MODEL
yG yU
Greet the customer Understand customer needs Explain features
and benefits Suggest additional items
What is Customer Service Excellence
yE yS
y T Thank the customer
INTERNAL CUSTOMER
What makes staff motivated?Pride in Workplace Good Compensatio n
and Benefits
HIGHLY MOTIVATE D STAFF
Good Colleagues
Good Boss
Good Job
To motivate staff Make staff feel proud of the place they work
for Make staff believe they are important members of a team Provide
adequate resources and equipment Ensure fairness and
competitiveness Give rewardsProud of workplace Good compensa -tion
& benefits Good colleague sHIGHLY MOTIVATED STAFF
Build a friendly and cooperative working environment Create a
sense of pride Ensure proper work loads Provide career development
opportunities Allow for flexibility in work schedules
Provide feedback Respect staff Lead by examples Be friendly
Good boss
Good job
Create a sense of pride
Allow for flexibility
Ensure proper work loads
Provide career development opportunities
Create a sense of pride in the workplace
Create a sense of pridey Emphasise the importance of each person
s y y y y
contribution to the hotel Highlight contributions from staff
members Treat all staff at every level with equal respect and trust
Announce staff achievements Encourage staff to communicate with
guests
Deal with overloadSome techniques to reduce workload:y Use of
technology y Equip staff with at least two sets of skills y Plan
ahead y Use part-time labour y Give Managerial support
Provide career development opportunitiesy Encourage promotions
from within y Have a succession plan y Rotate staff among hotel
jobs y Encourage and make it convenient for
staff to improve professional skills y Let staff take on more
responsibility
Create flexibilityy Share jobs y Offer compensation leave y Have
an appropriate work plan for the low season y Provide staff with
opportunities to do what they do
best and make use of their special talents
Build team spirit
Resolve conflicts
Excellent service comes fromSTAFF who are: y Enthusiastic y
Satisfied y Skilful y Confident and knowledgeable y DevotedThe
hotel business is about people people serving people. Everything
else is framework and window dressing.
Facts about CustomersA typical dissatisfied customer will tell
8-10 people about their problem. 7 out of 10 complaining customers
will do business with you again if you resolve the complaint in
their favor. If you resolve a complaint on the spot, 95% will do
business again.
Facts about CustomersA typical dissatisfied customer will tell
8-10 people about their problem. 7 out of 10 complaining customers
will do business with you again if you resolve the complaint in
their favor. If you resolve a complaint on the spot, 95% will do
business again.
Customer Service ExcellenceThe Customer Service Excellence
Standard aims to bring professional, high-level customer service
concepts into common currency with frontline public services by
offering a unique improvement tool to help those delivering public
services put their customers at the core of what they do
Organizations that take customer service seriously, and approach
it with passion and zeal, are the organizations that will prosper
and continue to stand out among their competitors.
Responsible & Accountable
Courteous & Helpful Efficient & Responsive
Consistent & Patient
Professionalism Knowledgeable & & Informative
Accessible
Custome r Service
Outstanding Service Formula
Attention to detail + kindness + lack of flawed processes77
Why Customers leave?Poor Service69%
13% 9%
9%
Product Dissatisfactio n
Better Prices Elsewhere Others
4. SELF-SERVICE TECHNOLOGIES (SSTS)
-have the potential of making service transactions more
accurate, convenient and faster. Automated Teller Machine
MONITORING SYSTEMS
-collect voice of the customer (VOC) measurements to probe
customer satisfiers and dissatisfiers. -use comparison shopping,
ghost shopping, customer surveys, suggestion and complaint forms,
service audit teams, and letters to the president mystery shopping-
the use of undercover shoppers who are paid to report back to the
company -used by fast food chains, gas stations and large
government agencies to pinpoint and fix customer service
problems
y Excellent service companies know that positive
employee attitudes will promote stronger customer loyalty
RATER Framework
Making Customer Delight A Core ValueStaff Meetings Board
Meetings Define and visualize the ideal experience Make a part of
each agenda What did we do right? Missed opportunities? Recognition
Who is the champion for Customer Delight? How are we treating
customers now?
"Your most unhappy customers are your greatest source of
learning."Bill Gates
y The greatest danger for most of us is not
that our aim is too high and we miss it, but that it is too low
and we reach it Michelangelo
The quickest way to profits is to serve the customer in the way
the customer wants to be served.
The Ten Commandments of Great Customer Service!y y y y y y y y y
y y y y y y y y y y y
l. Know who is boss ll. Be a good listener lll. Identify and
anticipate needs lV. Make customers feel important and appreciated
V. Help customers understand your system Vl. Appreciate the power
of YES Vll. Know how to apologize Vlll. Give more than expected
(lagniappe) lX. Get regular feedback X. Treat employees well
Customer Retention is Profitabley Resolving a complaint within
24 hours y results in 96% retention. For each day of y delay, about
10% additional loss. (Sertec, y Atlanta complaint monitoring
company) y Companies can boost profits 100% by y retaining 5% more
of their customers y (Reichheld and Sasser)
Don t give them one of these reasons to leaveIgnore them or
treat them indifferently Know too little about your classes,
programs or organization Make excuses not to help Treat them like
numbers Are cold, rude, unfriendly, impatient or generally
unpleasant Talk down or make them feel ignorant or slow Make
promises that aren t fulfilled
y George Columbo y y y y y y y y
Killer Customer Care Handle complaints with DEHEAT Deal with the
customer, not the problem Exorcise your ego You don t have to be
right. Calm the customer, resolve situation Hear the customer out
Let em vent! Empathize I understand how you feel . Apologize I m
sorry this happened . Troubleshoot How can we solve this?
Responsible & Accountable
Courteous & Helpful Efficient & Responsive
Consistent & Patient
Professionalism Knowledgeable & & Informative
Accessable
Custome r Service
which have the potential to turn a life around.Leo F.
Buscaglia
The Truth About CustomersTen times more expensive to acquire a
new customer than to keep a current customer- Bain & Company
Research
Customers are lost primarily due to indifference (66%) versus
dissatisfaction (14%) - WSJ
Marie DiRuzzaAssistant Director, Desktop Services Worcester
Polytechnic Institute
Importance of Training for Customer Servicey Customer
Perceptions y To the Customer you ARE the company y Organizations
with Happy Customers are more
successful
y Financial Benefits y Happy Customers come back y Happy
Customers tell their friends
y Providing good Customer Service doesn t come
naturally to everyone.
How do customers evaluate service Quality?R A T E R
Reliabilityaccuracy Deliver on Promises with dependability
&
Assurance - Knowledge, courtesy, ability to convey
trust,competence and confidence
Tangibles - Facilities appearance, comfort, look and feel
ofMarketing materials, etc.
Empathetic - Degree of caring and individual attention
thecustomer receives
Responsive - Willingness to help promptlydistraction
without
Reliability - The Service Promise y Organizational commitmentsy
Promises made via advertising, marketing, policies,
contracts, etc.
y Common Expectationsy Customer expectations are often based on
assumptions
and past experience
y Personal Promisesy Agent to customer promises
Often the challenge is to reshape customer expectations. Are you
training your folks how to do this?
Assurance & Tangibles y Assurance Factory Product Knowledge
& Company Knowledge y Listening Skills
Active listening skills y Communications Skills - includes
verbal and written (in-person, phone, and email service) y
Problem-Solving Skills
y Tangiblesy Take pride in your environment, yourself, your
workspace and any forward-facing delivery mechanisms (online and
marketing materials too!)
Empathy & Responsivenessy Empathyy Recognize the Emotional
State of the Customer; validate
their feelings y Treat each person as an individual
y Responsivenessy Respond quickly y Set Expectations
deliver on those expectations
Research shows that the most frustrating part of waiting is not
knowing how long the wait will be.
Training for Customer Servicey Train for Active Listening,
Questioning, etc. y Use Case Studies to open discussions y Group
Activities y Role Playing, scavenger hunts. y FISH! Philosophy
www.thefishphilosophy.com
5 Forbidden PhrasesNancy Friedman, . Replacement . . Forbidden
Phrase . . The Telephone .Doctor y I don t know . . .y
Good Question, let me look into that for you. That s a tough
one, let s see what we can do (find an alternative) Here s how we
can help you with that. I ll need to ask an associate to be sure,
are you able to wait while I check into it?
y We can t . . .y
y You ll have to . . .y
y Hang on a second, I ll be right back. . .y
y No . . .Find a positive alternative. We are all out of stock,
but we can give you rain check or a similar product at the same
price.
Active Listening & Intent y Pay attention to Contenty Ask
great questionsy Use activities that hone questioning skills y See
the big book of customer service training games
y Tips:y Tune in to the other person y Limit distractions y Don
t jump to conclusions y Take notes and reflect information back y
Be prepared
use a Question Map/Flowchart y Turn off your own worries
Responsibility of Leadershipy The following quote from The
Leadership
Challenge, outlines the responsibility of leadership in Customer
Service Deliveryy Lindsay Levin took over the reigns of her
family
automotive business, Whites Limited, at only 29 years old. She
talks about what she knows about enabling her folks to provide
great customer service.
SatisfactionProcess: What the company did? Satisfaction: How did
the customer feel? Behavior: How did the customer behave?
Satisfaction is a means, not an end itself. Best behavior Repeat
purchase, Recommend
Rules of the PoolTo maximize your performance in this workshop,
you will need to: y Participate in activities throughout the
training y Ask questions to clarify your understanding y Contribute
to exercises to increase learning y Share your experiences with
others y Practice your new skills after the training is over
Facts about Customery Every customer is a premium and elite
customer
Identification of customer needsy Stated Needs y Real Needs y
Delight Needs y Secret Needs
Website Quality Dimnesion
Service-Profit ChainExcellent Financial Performance Strong
Customer Loyalty High Perceived Value Superior Service
QualityAdapted from: Heskett, et al., Putting the Service-Profit
Chain to Work, Harvard Business Review, March-April 1994,
p.166.
Customer Satisfaction ModelProduct Value Service Value Personal
Value Image Value
Total Customer Value
Money Cost Time Cost Energy Cost Psychic Cost
Total Customer Cost
Custom er Delivere d Value
Product Dimensions for CPSy Features y Performance y Conformance
y Durability y Reparability y Style y Design
Customer Satisfaction
CSP Role During Product Adoption processy
PDCNUST
Dealing with Difficult customer
http://www.youtube.com/watch?v=NGlaIRTbMnY&feature=relatedy
yMakes regular repeat purchases. yPurchases across product
and
service lines. yRefers others yDemonstrates immunity to the pull
of the competitionPDC-NUST 135
Why Loyalty?y Loyal customer makes repeat orders and orders
across y y y y
the service line. Loyal customer provides referrals. Loyal
customer demonstrates immunity to competition. Loyal customer
becomes an advocate for laboratory services. Customer loyalty is a
competitive edge and a financial benefit.
The Cumulative Rewards ofReduced marketing costs Loyalty yy
Lower transaction costs y Better insulation from price competition
y Reduced customer turnover expense y Increased cross-selling
success y Positive word of mouth y Larger share of customer base y
Stronger position in the marketplace y Reduced failure costs y
Reduced employee turnover
Longtime Client Is Ours toAcquisition of new customers is more
expensive Keep or Loose y
than keeping loyal customers. y Effective marketing strategy
must target new prospects AND nurture current ones. y Customers
loyalty grows in stages: suspect, prospect, first-time customer,
client, and advocate. y Supportive attitude and follow-up are
paramount to building customer loyalty. y In today's marketplace,
customers are well informed and technologically savvy. y Customer
loss = the slow leek
All Customers Are Not Created Equaly Develop up-to-date customer
data base y Segment and stratify the customer market by
priority: volume of lab orders, responsiveness to marketing,
profitability y Perform in-depth analysis of top market: wants,
concerns, requirements y Target market: carefully select customers
and learn from them y Use customer profiling and computer data
modeling to identify high-potential prospects
Building seven contacts to gain a customer y The rule of
Customer Loyaltyy Winning the Moments of truth y Serve first: sell
second y Solid knowledge and reliability y Developing empathy and
listening skills y Impeccable honesty with customers y Multiple
open communication channels y Utilizing feedback from lost
customers
Sustaining Customer Loyaltyy Give priority to the most valuable
customers. y Insulate best customers from competition. y Hire,
train, and motivate all employees for loyalty;
employee empowerment. y Continuously strive to increase and
improve longterm contracts. y Use testimonials, rewards and
referrals programs to build strong reputation. y Loyalty must be
noticed and acknowledged: The power of Thank You .
An Ounce of Prevention Is Worth A Pound Of Cure :y Inviting
customers to give feedback: surveys,
comments on order forms, customer newsletter, focus groups,
advisory groups, voice mail, e-mail, and message boards y
Correcting errors, providing solutions, and offering help QUICKLY
is crucial to customer satisfaction. y Removing barriers to placing
orders, reversing charges, and reaching customer service, lab
director, or a pathologist is paramount. y Ability to comfort and
satisfy an angry customer is a mark of excellent customer
service.
Winning Back Lost Customersy Searching out and facilitating
complaints provide
knowledge about previously unknown problems. y Listening to
customers and analyzing complaints give valuable lessons. y Quick
response and empowered frontline employees are a cornerstone to
loyalty. y Customers whose problems were effectively solved show
higher loyalty. y Lost customer is twice as likely to reorder than
a brand new one.
y Loyal employees A Loyalty Plan Developing are crucial to
retaining loyal
customers and company s success. y Track and measure loyalty:
client retention rate, share of customers, order frequency and
volume, attrition rate (average annual % lost customers) y Develop
customer loyalty goals y Involve employees, marketing, sales in the
loyalty program y Identify top five customer loyalty breakers y A
strategy for loyalty must continually compete, improve, and adjust
to customer requirements and wishes in the marketplace.
Exercise: Calculating Life Value of Customer(LVC)Delicious Inc.
a restaurant has 8 loyal customers who, on the average spend Rs.
5,000/- per year on buying food from it. The restaurant total cost
on operations is Rs. two 2,000/- and each customer stays loyal with
the restaurant for five years. After quality improvement in
Delicious Inc. due to word of mouth, the number of loyal customers
increase by 25%, costs decrease by 20% and customer spending
increase by 20% due to premium pricing. Please calculate the life
value of each customer(LVC) at Delicious Inc. (Page 14)
PDC-NUST
145
Calculating Life Value of Customer(LVC)To calculate the Lifetime
Value of a Customer, complete the following: 1.What your average
customer spends with you in a year: __________ 2. Average return on
sales: x __________ % 3. Number of years your average customer says
with you: x __________ 4. Profit from your average customer: =
__________ Multiply #1 by #2 by #3 to get your gross profit from
the average customer. To refine this figure, calculate or estimate
yearly figures for the following profit streams: 5. How much your
average customer increases orders each year: + __________ 6. How
much your costs decrease each year: + __________ 7. The dollar
value of referrals each year: + __________ 8. How much more you can
charge each year without losing loyal customers+
__________PDC-NUST
146
Calculating Life Value of Customer(LVC)No. of Loyal Customers =
8 After 25 % increase Loyal customers are = Original Cost = Rs.
2500/After 20 % decrease, the cost is = Total spending = Rs. 5000/-
per year After 20% premium, the spending is = Life value of
Customer(LVC) = {( Annual Spending -Annual Cost) x No. of Years of
stay} / Number of Customers
PDC-NUST
147
Mission of Customer Service Excellence
Win the hearts , minds and wallets of our customers by
delivering extraordinary customer care at the right margin.
Moments of TruthThe path to excellence begins with you. Every
interaction a customer has with you company is a moments of truth .
It is the touch point that leaves an impression that over time
becomes a memory. That can be good or bad. We create promoters or
detractors of our company brand .
Facts About ListeningThe human brain can receive information at
the rate of 1,000 words per minute People speak at only 100 words
per minute What Happens ! Our minds drift and we only capture about
25-50% of what is being said.
ACTIVITYWhat is Your Listening Style
y Category A: Limited Listeners Given limited attention and
focus on some specific comments and may distort or misinterpret
other things being said y Category B: Biased Listeners Have tuned
out and are planning to say next, based on predetermined ideas.
They have already decided what they have to say , no matter what is
said by the speaker y Category C: Distracted Listeners Appear to be
attentive, but their minds are elsewhere. They allow their internal
or external distractions to prevent them from giving others their
undivided attention
What is customer s mood and paceAre they frustrated, annoyed,
cheerful, upset, etc. ? Are they in hurry or open to conversation
?
MOOD
Reflection:Reflection is your perception of the Customers
feelings based on words and their tone of voice. Reflection can be
the most difficult of all action because of the wide spectrum of
moods you experience in you interaction with customer
Why did the customer call?is restating what the customer has
said using your own words. This ensures that you comprehend the
customers purpose of contact. INQUIRYParaphrasing :
Paraphrasing
Asking Clarifying Questions: It will allow you to demonstrate
active listening and understanding.
Understanding Customer ProfileProfile information is the history
of a customer s relationship with us
PROFILEWhat does customer s profile reveals that will help me
better understand their need and personalize the Interaction. Each
company has different profile of its customers. Customize it !
MOODTRUE NEED
INQUIRY
PROFILE
A successful Customer Service Professional must translate the
customer s inquiry and Customer s mood and Customer s profile
information to determine what the customer s true need may be.
ActivityCustomer: Do you have something to eat ? CSP: Oh , there
is a hotel next door Customer: I just want something yamee ! CSP:
We do not sell Yamee Ice cream. We have other ice creams !
Customer: Do not you have any thing yamee other than ice cream ?
CSP: We sell lot of things here like cookies, candies, chips
and
y What was the customers MOOD y What was the customers INQUIRY y
Did the Customer Service Professional
effectively used the profile of customer y Did the customer care
Professional actively lisiten to the customer and determine their
TRUE NEED ?
Solutions to Customer Problemsy Unique Products of the Company y
Different features of the product and
their benefit to Customers y Prices of the Products and how
customer can save money by doing smart shopping y What will make
customer revisit the place
y 87% of all customer will never go back to an
organization after a negative experience y Acquiring a new
customer can cost up to 5 times more than retaining a current
existing customer y And a 2% increase in customer retention can
have the same effect on profits as cutting costs by 10%
Delivering Value If we do not deliver value and customer do not
feel good about their experience with your company they are going
somewhere else.
Introducing Relationship Enhancers
Relationship enhancer is something extra that will improve your
ability to provide extraordinary customer care. This will
strengthen the emotional connection for each customer you interact
with and make a positive impact on your company brand
y A smile y A relevant suggestion y A small Gift y A business
card y A fallow up call
Examples of Relationship Enhancers
y Detail of product features y A small discount on price y A
free stuff
Angry Customer to Back Down Video
Telephone
http://www.youtube.com/watch?feature=endscreen&NR=1&v=parwarCy7Vk
Customer Follwingy Leaving message y Sandwitching
EXCELLENT CUSTOMER SERVICE-Factors
http://www.youtube.com/watch?v=_cwHlPZRtp4
The importance of the customer
What business are we really in?
The importance of customers
All organizations are in the business of satisfying customers
needs.
Example of Good Customer Service
http://www.youtube.com/watch?v=obG7xUcWT_M&feature=relted
http://www.youtube.com/watch?v=sw6r11uJz54&feature=related
http://www.youtube.com/watch?v=VfE7aVa _mSo&feature=related
http://www.youtube.com/watch?v=VfE7aVa_mSo&feature=related
http://www.youtube.com/watch?v=4_HL_g v5-4k
THE CUSTOMER DRIVEN ORGANISATIONEscalating environmental change
requiring more imagination/intellect/ creativity. Structuring
products/service around customer interests. Entrepreneurial
managers and employees. Effective internal supplier customer
chains.
Decentralisationeffective resource and information sharing.
PERPETUAL
REVOLUTION
Encouragement and reward systems for creativity and
innovation.
Point of difference. Competitive edge. Current and future
success. Internal and external relationships/ networks.
Feedback.
NEW IDEASLegislative compliance and ethical practice.
Sustainability. Market research. Plans and strategies for meeting
and anticipating customer interests.
190
EMPLOYEES AND SHAREHOLDERS
Organisations have customers, stakeholders and shareholders.
They all have an interest in your organisation and its performance.
Employees are internal customers. They are also stakeholders.
Shareholders (owners) have a direct financial interest in the
organisation s profits.192
CUSTOMER TYPES
Customers are either external or internal to your organisation.
External customers buy or use the goods and services of your
organisation and are not employed by or directly associated with
the selling organisation. Internal customers are the people, groups
or teams in an organisation to whom completed work, resources or
information is passed by fellow employees.193
Customer Focused CultureEffective and efficient information
sharing at all levels within the organisation is essential to
fostering a customer focused work-place culture. A customer focused
culture is one in which excellent customer service is accepted as
the norm.
194
PRODUCT SALE PLUS SERVICE
In most instances, when customers make a purchase they have an
expectation that the purchase will be accompanied by an associated
service of acceptable quality and standard. This is called
bundling.
196
PERCEPTIONS OF VALUE You get what you pay for. Customers
purchase: Features Benefits They want: Value for money The
product/service bundle must meet the customer s value
proposition
197
BENEFITS
Products and product descriptions have attached features and
benefits. Customers do not purchase product features, they purchase
benefits. They ask: What s in it for me? How will I benefit?
198
RETURN BUSINESS
Value adding comprises the actions an organization or supplier
takes to ensure that customers perceive their products/services as
value for money -because they provide something extra. Value added
products and services contribute to relationship building
199
CUSTOMER RELATIONSHIPS
Relationships imply trust and dependability. Effective internal
and external customer relationships are the key to business
success.
200
RETURN BUSINESS
Value adding comprises the actions an organisation or supplier
takes to ensure that customers perceive their products/services as
value for money -because they provide something extra. Value added
products and services contribute to relationship building
201
INNOVATION
Utilise the innovative and creative talents of your employees to
design and develop methods by which your organisation can
improve/increase sales and profits.
202
RELATIONSHIPS AND LOYALTY
Client/customer loyalty means that a client/customer retains
some sense of commitment to the seller; some notion of satisfaction
that will cause them to return on the next occasion when they want
similar goods or services.
203
ATTITUDE
Your attitude and that of every person in the organisation
determines the extent of customer loyalty. Treat every customer as
an appreciating asset Provide top quality as perceived by the
customer Build relationships Create uniqueness Under promise - over
deliver204
CUSTOMER INFORMATION
Long term profit EQUALS revenue from continuing satisfied
customer relationships MINUS costs.(Tom Peters)
Monitoring, measurement and evaluation of processes and outputs
are part of the continuous improvement cycle. If you do not
monitor, measure and evaluate you will never know how well, or how
poorly the organisation is meeting its goals.
205
ENCOURAGE EXCELLENT CUSTOMER SERVICE
Every job description should include a qualitative description
of the personconnection to the customer. Link role and task KPIs to
customer service practice. Use performance evaluations and
appraisals to assess and improve customer orientation. Recognise
and reward high levels of internal and external customer
service.
206
DISSATISFACTION
ENCOURAGE YOUR CUSTOMERS TO COMPLAIN WHEN CUSTOMERS COMPLAIN
THANK THEM FOR DOING SO
207
PARETOS RULE
80 percent of profits are likely to come from 20 percent of
customers.
208
EXPECTATIONS
IS THE CUSTOMER ALWAYS RIGHT? By virtue of the fact that the
customer can choose not to use your product/service - YES! However,
customer expectations are not always reasonable, or able to be
serviced by your organisation. EDUCATE YOUR CUSTOMERS209
MANAGING CUSTOMER SERVICE
Customer service doesn t just happen. Good customer service is
dependent on your employees - your most valuable asset Look after
your assets and they will look after your customers.210
SUMMARY
Customer driven organisations are successful organisations in
which: Products, services and bundles are designed around customer
interests and purchasing prospects Internal customer service is
recognised as being of equal importance as external customer
service Organisational plans and strategies for meeting customer
needs and expectations are supported by management, staff, systems,
technology and constant information gathering processes Customer
feedback is constantly sought, recorded and analysed as part of the
continuous improvement cycle and to solve problems efficiently
Products and services are adjusted to meet customer expectations
Staff are trained and empowered to meet customer expectations and
to provide excellence in customer service Workplace culture
supports quality and excellence at every interface of the
supplier-customer chain211
Satisfaction isn t enough!
A sample service model
The three pillars of customer satisfactionPRODUCT FACTORS
CUSTOMER SATISFACTIONCONVENIENCE FACTORS HUMAN FACTORS
Human factors in customer service
Implementing customer care1. 2. 3.
Measure customers satisfaction. Look for the causes of poor
customer service. Deal with the causes.
Tools to measure customer satisfaction1. 2. 3. 4.
Customers survey Conference for customers Customers suggestions
box Revenue
y Telephone communications
Definition of CRMCRM is concerned with the creation, development
and enhancement of individualised customer relationships with
carefully targeted customers and customer groups resulting in
maximizing their total customer life-time value (2).
MANAGING THE SPEED OF SERVICE
PDCNUST
Lean Speed ParametersThroughput time: Period required for a
material, part, or subassembly to pass through the manufacturing
process.
Cycle time= Time for beginning of process to end of process .
Lead Time = Amount of WIP/Average Completion Rate It is the time
taken to deliver the product once ordered by customer. Process
Velocity = Amount of WIP/Process Lead TimePDCNUST
Takt Time
PDC-NUST
225
.
PDC-NUST
226
PDC- NUST Imtiaz
PDC-NUST
227
PDC-NUST
228
PDCNUST
Lead Time vs. Cycle TimeLead time clock starts when the request
is made and ends at delivery. Cycle time clock starts when work
begins on the request and ends when the item is ready for delivery.
Cycle time is a more mechanical measure of process capability. Lead
Time is what the customer sees. Lead time depends on cycle time,
but also depends on your willingness to keep a backlog, the
customers patience, and the customers readiness for delivery. Cycle
time measures the completion rate, lead time measures the arrival
rate.
PDC-NUST
230
Lead Time Vs. ThroughputLead time is the commitment to deliver
final product to your customer. Through put time is the sum of all
of your product individual process times accounting for value added
and non-value added activities. For example a company may have a
lead time of 7 days to deliver a product to the customer and a
through put time of only 8 hrs .PDC-NUST 231
Exercise Managing the Speed of Service Delivery
PDC-NUST
232
Exercise- Lead TimeSuppose a hospital has a Lead Time of two
hours and it serves 20 patients per hour. Now how many patients
should be entered into the system to keep this lead time intact?
How can management reduce the lead time to half an hour. What If
they also want to service 80 patients with lead time of half an
hour.PDC-NUST 233
Exercise- Lead Time2 hours = Amount of work-in- process
(Patients) /20
= 2*20 =40Thus 40 patients should enter the system at a
time.
If lead time and completion rate is know, the amount of WIP in
our process can be found and then companies can work out how to
reduce lead time by reducing WIP or improving the completion rate
by quality improvement and expansion. If lead time is one hour then
1 = ?/20 = 20 patients should be plucked into the system. If
hospital want 80 patients in the system and at the same want a lead
time of half hour then there should be expansion in the facilities
and performance improvement so that ( 1/2 = 40/ ? = 80 ) hospital
could handle 80 patients per hour
PDC-NUST
234
Proper Workload and Service Levely Determine baselines service
levels for normal and peak y y y y
service hours. Use baselines service levels to set targets for
normal/abnormal service levels. Specify downtimes or holidays to
prevent unwanted alerts during routine maintenance Set
early-warning thresholds to gain immediate visibility for any
service problems. Allows automatic time-zone adjustments for
distributed deployments
PDC-NUST
235
y No of application pending for
processing y Displaying the number of customers waiting in the
queue for customer service Reps. to answer their calls. y No of
dispute cases in the queue waiting for processing. y No of emails
waiting for responsePDC-NUST 236
MEAUREMENT
Quality Measurement
PDC-NUST
238
Criteria for Establishing a System of Meaningful
MetricsFollowing are the characteristics of an effective
measurement system: Concentrating only vital few key metrics for
regular monitoring and control. Choose those measures that are
linked to the key vision, values and success factors of the
company. Metrics should focus on the past, present and future
performance factors of the company. Metrics should be linked to the
needs of customer, shareholders, and employees. Metrics should flow
down to all levels and should be consistent. Multiple measures can
be combined into several overall indices of performance. Metrics
should be changed as company s strategy and situation changes.
Metrics need to have targets or goals based on research .PDC-NUST
239
Critical to Cost Matrices (CTQ)y Labor Cost y Unit Costs y Work
in Process Inventory y Net Present Worth(NPV) y Internal Rate of
Return(IRR) y Benefit Cost Ratio(BCR) y Payback Period
PDC-NUST
240
Critical to Schedule Matrices (CTQ) Cycle Time Response Time
Waiting Time Turnover Rate or Completion Rate Lead Time = Work in
Process Inventory/ Completion Time Process Velocity= No. of value
added steps / Lead time Process Cycle Efficiency = Value Added time
/ Total Lead time Overall Equipment Efficiency=(OEE=Availability+
Performance+ Quality) Lean Value Stream Analysis y Reducing queue
time y Reducing process time by removing non value added activities
y Critical Path Analysis (Cycle time improvements for activities
not on critical path will not impact schedule)PDC-NUST 241
Critical to Quality (CTQ) Matrices Yield =Output/Input( or 100%
- Scrap Rate) Scrap Rate = Defective Items/Items in the Sample
Defects Per Units(DPU) (or =Defect Rate) = Defective Items/Total
Items Throughput Yield = I Defect per Unit (or Defect Rate) Rolled
Throughput Yield( Yrt = Y1 * Y2 * Y3 * Y4 ) Normalized Throughput
Yield (Yn=( Yrt )^1/n DPO=Defect or Error rate/Total Opportunities
Defects per Million Opportunities(DPMO) = (Number of defects /
Number of opportunities) x one million. Cost of Poor Quality(COPQ)=
Defect rate x Volume x Cost of rework Sigma Level Customer
satisfaction score Employee satisfaction score Customer retention
rate Employee retention rate/turn over rate
PDC-NUST
242
Operational Level Matrices
Business Level Matrices
Customer Satisfaction Score Earning Before Profit Employee
Retention Rate
Friendliness of Employees Sales Target Achieved Availability of
Staff
Process Level Matrices
Customer Waiting Time Unit Cost/Labor Cost Per Hour Degree of
Empowerment
Balance Score Cardy The Balanced Scorecard is a performance
management approach that involves measuring a company's vision
and strategy via four perspectives: Customer, Financial, Internal
Business Processes and Learning and Growth. By balancing internal
process measurement and financial results with customer feedback,
the performance picture becomes complete.
PDC-NUST
244
Balanced Score Cards-Factors InvolvedDepartmentFinance
AreasReturn On Investment Cash Flow Return on Capital Employed
Financial Results (Quarterly/Yearly) Number of activities per
function Duplicate activities across functions Process alignment
(is the right process in the right department?) Process bottlenecks
Process automation Is there the correct level of expertise for the
job? Employee turnover Job satisfaction Training/Learning
opportunities Delivery performance to customer Quality performance
for customer PDC-NUST Customer satisfaction rate Customer
percentage of market
Internal Business Processes
Learning & Growth
Customer
245
Example: Balanced Scorecard of an AirlinePerspective
ObjectivesFewer planes Increased revenue
MeasuresMarket Value Seat Revenue Plane Lease Cost FAA On Time
Arrival Rating Customer Ranking No. Customers
Targets25% per year 20% per year 5% per year First in industry
98% Satisfaction % change
InitiativesOptimize routes Standardize planes Quality management
Customer Loyalty program Cycle time Optimization program Stock
ownership plan Ground crew training246
FINANCIAL Profitability
CUSTOMER Flight is on -timeLowest prices More Customers
Fast ground INTERNAL PROCESSES turnaround
On Ground Time
