CUSTOMER FLOW MANAGEMENT A QMATIC WHITEPAPER PART II: WHERE DO YOU DRAW THE LINE

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1 CUSTOMER FLOW MANAGEMENT PART II: WHERE DO YOU DRAW THE LINE A QMATIC WHITEPAPER This whitepaper is the second part of three in a series of whitepapers aimed at explaining what customer flow management is, how it fits into the Customer Experience Management category and how organizations can gain competitive advantage by adopting it Q-MATIC AB. All rights reserved. Ver 1.0

2 About this white paper We have all experienced the sinking feeling of joining a long, stationary line of people at a window or till versus the joy of seeing how people are being attended promptly. Interestingly, much of this comes down to the design of customer flow systems, how they interact with staff and customers and how they integrate to other customer experience management systems. This white paper introduces a number of customer flow alternatives focusing on different queue mechanisms, weighing up the pros and cons of each. Page 1

3 Not all systems are the same Mobile apps and online appointments even out customer flow and avoids brand eroding queuing and on-site waiting. In business, we are constantly reminded of the importance of first impressions. And we know from our own experience as customers that the experience you form when you walk through the door of a business can mark your perceptions of that business forever after. So what happens when someone walks through the door of your business? Are they immediately welcomed by a smiling agent, receptionist or cashier? Or are they made to wait in a long, slow-moving line of customers? If it is the latter, there is no question about that not being the way you want it to be. One of the signs of a successful business is that people flock to it. They queue to get in. Your challenge is to make sure that the ensuing poor customer experience does not affect your success, for example by denting your reputation or losing you sales. And to do that, you need to think long and hard about how and why your customers are queuing, and whether there is a better way for them to do it. Page 2

4 Why are customers standing in line? The reason queues form, in essence, is simple: there are more customers than people to serve them. In many, if not most, instances this is a good thing. How they are queuing, though, may be down to a range of factors. Queues that form spontaneously may follow a route that is dictated by space constraints or layout. Cultural differences have an impact, too; some cultures are more happy queuing and less likely to push forward. If queues are an everyday occurrence in your business, then the chances are you will have already introduced some form of customer flow management, perhaps dictated by the number and layout of checkout systems or the presence or absence of ticketing and information systems. Depending on your objectives, however, the system you have in place may well not be the best one. If your priority is productivity you may want to maintain a particular queue length to ensure your staff are always working. If your priority is customer service, you may want to do away with queues altogether, as far as is possible. To achieve your objectives, then, it helps to have a basic understanding of the different types of customer flow configurations you can use. There are two main types: linear queuing and virtual queuing. Page 3

5 Linear queuing Linear queuing is when your customers wait physically in a line. It is the oldest and most common way to manage queues and waiting, and encompasses a number of variations: Single-Queue-Single-Service-Point (SQSSP), or first-in-first-out, where the goal is to serve the customers in the order in which they arrived. This is typically found in service centres with few customers, such as coffee shops and fast food restaurants. Multiple-Queue-Multiple-Service-Points (MQMSP), which offers the possibility to segment customers based on service needs. Customers who require services with longer expected service times can be separated from those with faster requirements. Single-Queue-Multiple-Service-Points (SQMSP), where the supply of service is distributed logically to the customer who queued first. A slow customer may affect delivery overall but customers will always be directed to the first available counter. Each has advantages and drawbacks, as summarised here: Appropriate for low customer flows and single-counter environments; requires minimum planning/ layout considerations. Can result in large variations in waiting time for customers. Queue Type SQSSP MQMSP SQMSP Advantages Better than SQSSP for larger establishments and/or customer flows. Allows segmentation. Disadvantages Poses a customer service problem when customers choose the wrong queue. Reduces the average queue length, queue time and wait probability compared to MQMSP. Poses a customer service problem when customers choose the wrong queue. Page 4

6 Virtual Queuing A virtual queue is invisible in the sense that your customers are identified on arrival, say by their name or social security number, but not confined to any particular waiting spot, so they don t know what position they have in the queue relative to others. It is also a solution suitable for mobile waiting where a customer is in the queue, but at a different location. This requires your customers to be either greeted and queued by a member of staff or entered into the queue through a ticket-printer, self-serve kiosk or mobile application. You then give them an assurance that they will be served at an appropriate time. As with linear queuing, virtual queuing encompasses a number of variations: Agents call the next customer when service to the current customer is finished. If there are several agents, customers could be called from the same queue (as in SQMSP) or from different queues based on some type of segmentation (as the MQMSP). Staff can pre-call the next customer before service to the current customer has actually finished. The effect is that a buffer zone with a waiting customer is created behind the currently served customer. The buffer zone is a common area where the next few customers to be served are pre-called, but each waiting customer is assigned to a member of staff in appropriate order only when the currently served customer at a service point is actually finished. These variations are illustrated below: Complementing these pictures is also the mobile queue management where a customer is not waiting in the physical location at all, but instead keep their place in the queue via a mobile app or an SMS solution. Page 5

7 Each has advantages and drawbacks, as summarised here: Queue Type No buffer Individual buffer Shared buffer Better than a linear queuing system in terms of doing away with having customers stand in line. Does not speed up process compared to linear queuing; a packed waiting room can create as bad an impression as a long queue. Advantages Speeds up the process as there is always a customer waiting to be served. Enables staff to call a new customer if the next customer fails to show up at the buffer zone. Disadvantages Could have a negative effect on perceived fairness as it does not guarantee all customers are served in the same order as they arrived. Improves perceived fairness of virtual queue system. May still result in lower productivity and increased waiting times compared to linear queuing (see below). Page 6

8 Linear versus virtual queuing SITUATIONS MOST SUITABLE FOR LINEAR QUEUING The linear queuing strategy is undergoing a renaissance in the retail marketplace as retailers experience the benefits of ensuring the fastest service for their customers. As the main benefit arises from the fact that the time wasted between each customer being served is reduced, the greatest benefits are seen in environments with short service processes. Also, given the disadvantage of multiple queues in situations with heterogeneous service times, the single queue with multiple service points is gaining ground in these environments. SITUATIONS MOST SUITABLE FOR VIRTUAL QUEUING As the main benefit of virtual queuing is the opportunity for customers to engage in active waiting it is most commonly used in environments with longer waiting times. It is also well suited to environments with longer service times as the effect of a slow approach by a customer has a minor effect on the total time spent by the service staff on that particular customer. This is typically the case in the public and healthcare sectors. In finance this environment is found among the advisory services. Virtual queuing is also the preferred choice when the service provider wants to identify customers before approaching the staff for preparations. Page 7

9 Conclusion Customer Flow Management is a methodology that supports the development of great customer experience. Designing the most efficient queuing system is clearly a complex process and not one that can be approached with a one-size-fits-all approach. If you can incorporate it into a wide customer flow strategy that covers all areas of your store, branch or hospital design, from doorstep to service, then you can have a major impact on your bottom line without it costing you a fortune. Managing queues, be it with traditional queue management system or mobile solution is an integral part of CFM and compared to many other process-led business improvements, CFM is a relatively low-cost measure with clear and tangible benefits. But perhaps its most important benefit is the impact it has on something which is invaluable, yet largely intangible: your customers experience of your brand. CFM as methodology fits within Customer Experience Management (CEM) category where it helps to maximize the face-to-face opportunities and bridge the gap between the virtual and physical world. Page 8

10 About Qmatic There is only one boss - the customer. And he can fire everyone from the chairman down, simply by spending his money somewhere else. Sam Walton, 1977 Qmatic s vision is to realize the full potential of every meeting. We help our clients engage and interact with their customers from the very first touch point. We gather information around the customer journey and help create brand value from improved customer experiences. By creating a seamless customer journey from online channels through to face-to-face meetings, we increase customer experiences and strengthen our clients brands. Qmatic holds a market leading positions in the public sector, financial services, retail, and healthcare applications and it is estimated that more than a quarter of the world s population pass through a Qmatic system every year. Qmatic has a truly global footprint and operates in over 120 countries through own subsidiaries and partner network. The Qmatic Group has a turnover of EUR 60 million and employs some 300 people. The company s main owners are Altor Fund II GP Limited and ICG. Qmatic Group Neongatan 8 SE Mo lndal Sweden Want to talk to us? Find your local representative here: Phone: +46 (0) Mail: marketing@qmatic.com Web: Disclaimer This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Qmatic is a registered trademark of Q-Matic AB. Other names may be trademarks of their respective owners. Page 9