Over this past year Strativity Group, conducted a worldwide study around customer experience management. Through our worldwide seminars we managed to meet hundreds of customer service and marketing executives and had the opportunity to study their challenges and issues. Our study discloses some serious discrepancies between perception and realties that require immediate attention among corporations who care to build lasting relationships with their customers and to deliver differentiating and premium products and services. In the next few articles we will cover, in depth, several of the major findings of the study.
We asked executives if they felt that their company deserves their loyalty as employees. While a surprising 73 per cent of respondents agreed that their employer deserves their loyalty, when asked about the specific actions, the agreement level dropped:
· Only 37 per cent agreed that their company invests in people more than technology
· Only 37 per cent agreed that they have the tools and authority to solve customer problems
· Only 33 per cent agreed that the compensation plan emphasizes quality over productivity
The above results are alarming especially because they are coming from executives and not employees. If the general conviction among the leaders is that about 2/3 do not have the tools, authority or investment to service customers, they will act accordingly, the likelihood of delivering excellent and differentiating service is remote if not non existent.
In an era with an ever-increasing commoditization of products and services, companies are increasingly more dependent on their service personnel to create differentiating, premium, commanding experiences. The above results indicate that they are far from being able to do so.
In addition, we face the fact that most of the executives believe that their company invest in technology more than in people (who are the true differentiation makers). If we combine that fact with the fact that most of them are not compensated based on quality of service but rather on productivity only, and we have a formula for a disaster.
Instead of providing customer service organizations with the tools, authority, encouragement, and incentive to deliver the best they can. The studies paint a picture of organizations with minimal incentive and ability to deliver the required customer service.
When comparing these disappointing results with the ever increasing advertising and marketing messages to customers about the growing commitment to their satisfaction, companies are creating a deeper gap between customers expectations and their own ability to deliver. This gap will only churn more frustrated and upset customers faster.
Marketing executives must seriously examine the state of their customer service, their tools, incentives, and abilities, before committing to customers. It is time that the gap and the egos involved in the eternal friction between customer service and marketing will be bridged once and for all and that marketers will recognize the fact that they can not go out there and make unfounded promises that their organization can not or will not deliver.
Just like they will not market aggressively a product that they know is faulty, so they should not make customer service commitments that can not be full filled. Both will bear severe financial consequences on the company.
On their part, customer service executives will not and should not lead their teams if they are convinced that they do not have the ability to deliver. The employees usually notice the attitude and adhere to it rather quickly. If their leaders are not convinced why should they be? It is time to put in place a program that provides all the components of great customer service:
· Tools
· Authority
· Incentives
· And Investment in people
When making the plan and pitching it to management, you may have to build into your plan some financial improvements and commitments. Use your common sense and look around your organization and you will easily find the areas that a well developed plan can deliver on, including:
· Customer satisfaction
· Employees retention
· First call resolution
· Average handling time
· Cross selling opportunities
· Expanding the customer wallet share
· Extending customer life with the company
These are just some of the financial aspects you can improve by putting in place a new plan for customer service excellence. Now common sense is key. You know very well that with the above results from our study it just simply does not make sense to continue churning interactions. It is time to get serious about customer service!
Lior Arussy
2004-02-13
Lior Arussy is the president of Strativity Group, and the author of The Experience! (CMPBooks 2002) He can be reached at lior@strativitygroup.com
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