Implementing a Customer Service Initiative CULTURAL REVOLUTION Aug 25, 2003 12:00 PM
, Debra Ellis
A truly successful initiative will appeal to everyone from the
Chairman on down
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Welcome to the customer age! Navigation is tricky, objectives are
elusive, and profits are sacrificed because customers are always right.
They demand lower prices, faster delivery, and greater benefits without
increasing their loyalty. The search for exceptional service has
spawned a billion–dollar industry encompassing CRM (customer
relationship management) technology, customer-centricity, and a
boatload of services that automate ineffective processes.
It is time to move beyond this "customer is always right"
conventional wisdom, and toward creating a corporate culture that
provides functional and emotional value to customers, employees, and
shareholders. Chances are, everything needed is readily available
within the organization. It is simply a matter of identifying key
information; extracting it from customers, employees, and databases;
strategically utilizing it to evaluate and improve value; and refining
the process as needed. Implementation of such an initiative is
simple—but not easy.
Roll Up Your Sleeves!
First, the best strategy for customers, employees and the company must
be developed. This requires roll-up-your-sleeves hard work. Then, a
cultural revolution has to begin, requiring redesign of departmental
roles and responsibilities so a solid foundation can be formed. (People
will resist this.) Next, a support system of policies and processes has
to be built: "Roll up your sleeves" again. Every function has to be
evaluated, then accepted, revised, or eliminated. Finally, appropriate
automation must be chosen and implemented. (Everyone knows this pain.)
But wait—there’s more! Implementing a service initiative is
not a project; it is an evolution that requires ongoing review and
tweaking to be successful.
Why would anyone go through such an excruciating process? Because
the payoff is huge. It improves loyalty, morale, and profitability. It
integrates marketing, sales, and service into a cohesive unit
generating consistent performance and customer retention. It moves
beyond commodity marketing, developing long-term relationships with
customers and employees.
Balancing the Three Partners
Business is tough; shareholders are dismayed. Customers are demanding.
Employees are disgruntled. The primary challenge of the planning stage
is to develop a business strategy that balances all of these needs.
Profitability is the company’s basic need for survival; customer
and employee loyalty is the key to long-term profitability. Companies
that move beyond providing functional value and toward creating an
emotional bond between the company, employees, and customers are
rewarded with obsessive loyalty.
Customers are attracted by functional value such as product
selection, price, and convenience. Increasing functional value will
attract and retain customers as long as the offer outbids the
competition. But providing functional and emotional value will retain
customers even when lower prices are available elsewhere. Emotional
value is created by presentation, appreciation, and service. Every
contact with the customer must represent the corporate brand,
demonstrate an appreciation for the customer, and provide quality
service.
The best service employees are those who feel appreciated and
recognized by the company for their contributions; they pass that
appreciation on to the customers they assist. A successful strategy
must include a plan for creating an enthusiastic support team.
Functional value such as pay and benefits are excellent recruitment and
retention tools. Enthusiasm and loyalty is inspired by recognition,
communication, and appreciation. The best strategy models ideal
customer, employee, and company relationships. It begins with customer
segmentation by value to identify the characteristics of every customer
level. Next, it defines the employee model and organizational structure
required to align corporate culture with high-value customer needs.
Finally, it identifies those customers that will ultimately be
abandoned.
Once there is a consensus on relationship development, specific
goals and objectives must be established. They must be realistic and
support the corporate vision. The final plan should be strategic and
open-ended, with clear measures of success.
Instigate a Cultural Revolution
A successful service initiative requires the complete integration of
all departments. Sworn enemies have to start working together for
common goals. Since people resist change they must be convinced that it
is in their own best interest to make the initiative successful.
Education is the optimal tool for motivating a cultural change.
Well-trained employees will provide consistent behavior and
productivity. Well-educated employees will resolve issues before they
become challenges. Excellent service requires a combination of
education and training. The cultural revolution begins with the
communication of the strategy to everyone in the organization. Its goal
is to eliminate the competition between departments found in
departmental cultures and disconnected companies. Educate everyone on
the importance of the initiative and the expected impact. Teach them to
look for value in every process and interaction. Explain that there is
a new culture evolving and this is their opportunity to grow and
benefit from the improvements. The major challenge of this phase is to
identify the players and position them correctly.
Employees will fall into three categories:
Supporters (those who see the change as an opportunity)
Bottlenecks (those who resist the change but do not work against
it)
Detractors (those who actively work against the initiative)
Employees who are resisting the change (bottlenecks and detractors)
must be grouped together and isolated from the supporters. They will
then either choose to support the initiative or be abandoned.
Develop the Tactical Plan
Once the players are positioned, it is time to develop and implement
the tactical plan. Start with the evaluation of processes and policies.
Every function has to consistently support the plan for loyalty and
profitability. Search for inconsistencies between policies and
procedures. The goal is to streamline business processes, data
analysis, and systems. Some areas will require revision; others will
require a complete rebuilding or elimination. If there are any areas
with substantial internal ownership, let the owners conduct the
evaluation. It is amazing the improvements that will be made when the
responsibility of evaluation is placed on the owners.
Simplifying the organization requires eliminating the layers of
bureaucracy between employees and the information they really need. Not
everything that can be measured should be, so invest the time and
effort to determine the specific data that drives your business and
maximize its impact. Conversely, not everything that is important can
be measured, so make sure the focus on measurement doesn’t
eliminate intangible essentials.
Quality service is the fusion of marketing and operations to create
a seamless shopping experience. Many processes are created because they
serve the company, not the customer. They actually serve to push the
customer away rather than pull them closer. For example, customers do
not need (or in most cases want) to track their order through the
system. Seamless service requires that customers receive a confirmation
with an expected delivery date after placing orders via the channel of
their choice. Customers want to follow up on orders even less than
companies want the service calls. So make it easy. Provide a realistic
delivery date upon receipt of the order and follow up with the customer
if there are any changes. It will keep external parties out of your
system, improve customer satisfaction and reduce costs.
The Three Considerations
There are three considerations for every function and position within
the organization.
Does it meet the requirements for service and profitability?
There has to be a balance between service and profitability so
calculate a return on investment for every item.
Can it be simplified or eliminated?
Even if an item meets the service and profitability requirements, it
may be overkill or unnecessary.
Does it improve the value proposition for customers, employees,
and shareholders?
Some items are vital to long term relationships but they cannot be
quantified.
Look at each change from everyone’s perspective to verify its
effectiveness. For example, reducing the customer service staff without
reducing the workload will initially serve the shareholders by reducing
costs. Employees will view it as an arbitrary management decision, and
customer service will decline. Ultimately, costs will rise because
employee turnover and customer attrition will increase. Search for the
win/win/win solutions that best serve everyone.
Automate Appropriately
Technology is an excellent tool for improving the efficiency and
effectiveness of essential processes. Now is the time to identify the
processes (or parts thereof) that can be effectively automated. State
of the art technology is exciting and tempting, but few companies need
this level of sophistication. They need systems that automate essential
processes and enable effective relationship management as defined by
the corporate strategy and culture. It is critical that automation is a
function of realistic need and value. Just because something can be
automated, doesn’t mean that automation provides value. Evaluate
technology like every other function to insure it meets the
requirements. Don’t forget to include the maintenance costs in
the ROI. Start small, evaluate carefully, and build on as needed.
Refine and Polish
The strategy is set, employees are enthusiastic, policies and processes
are effective and efficient, and the technology is working. Time to sit
back and watch for the rewards, right? Wrong! A service initiative is
an ongoing process. Everyone must stay the course and not lose
interest. If it becomes a project instead of an evolution, then the
initiative will ultimately fail. Periodically, every process and policy
needs to be reviewed to determine continued effectiveness. This
includes the overall strategy. As the company evolves, the
relationships with customers and employees will evolve. They must
continually be realigned with the corporate goals and visions. Some
employees and customers will move on to other organizations. If they
are the ones non-supportive of the corporate culture, accept the loss
and move on. If they are the ones that were supportive, but lost
interest, then the implementation was inconsistent with the
strategy.
An effective service initiative implementation integrates people,
process and technology to maximize the value provided to customers,
employees, and shareholders. It requires companies to develop
strategies that define the unique service standard for their
organizations. Failure to build from the bottom up will result in
failure of the initiative. During the transition, the best customers
and employees must be identified and encouraged. Solicit feedback after
every customer interaction or functional modification. Provide
appropriate feedback and rewards to employees throughout the process.
Implementing a service initiative is simply planning, people, process,
and technology. It requires strategy, communication, perseverance, and
organization. Implementation inspires customer loyalty, improves
employee morale, and generates profitable growth. It creates connected
companies where everyone understands the objectives, how they impact
the organization, and works together for common goals.
Debra Ellis is a principal of Wilson & Ellis
Consulting, Barnardsville, NC. Reach her at 828-626-3756, or e-mail DEllis@wilsonellisconsulting.com.
