Creating Exceptional Customer Service Tim Maples - Inova Group Chris Wrathall City Care Ltd
Why Bother?
The Value of Exceptional Customer Service The Cost of Poor Customer service How many customers do you look after/interact with? What is the value of each customer? What percentage are satisfied? How do we know?
Only 4% of customers ever complain Some Service Statistics For every complaint there are 26 unresolved complaints or problems Most customers who complain (54% - 70%) will do business with you again if their complaint is quickly resolved A dissatisfied customer will tell up to 10 people Happy customers (complaints resolved) will tell between three five people It costs five to six times more to attract new customers than to keep old ones You can gain an average of 6% market share, simply by providing good service: satisfying & keeping your customers The life-time value of a customer is 10 years Customer service is governed by the rule of 10 s. If it costs $10,000 to get a new customer, it takes 10 seconds to lose one.
Workshop Sponsor Measuring Customer Satisfaction and Loyalty Create multiple listening points Customer Surveys Consistency and Frequency Customer Feedback Easy and appropriate for each customer Formal and informal monthly and quarterly Feedback from frontline personnel Easy, painless Reward employees Market Research Customer Satisfaction can be piggy-backed on market research New or exiting customers Act on it! Information management Act on it! Customers and staff know what has been done
Customer Loyalty Versus Customer Satisfaction Satisfaction Isn t Enough 65% - 85% of Customers who switch to competitors report they were satisfied!
Customer Loyalty versus Customer Satisfaction (cont..) Loyalty Potential 100% 80% 60% zone of indifference zone of affection APOSTLE To gain loyalty, you must have a VERY SATISFIED customer! 40% zone of defection 20% Detracto r 1 extremely dissatisfied 2 3 4 somewhat slightly satisfied dissatisfie Platinum dissatisfie Sponsor d d Satisfaction Measure 5 very satisfied Diamond Sponsors Event Sponsors
Workshop Sponsor Customer Loyalty versus Customer Satisfaction (cont..) What is a loyal customer? Very Satisfied Definitely would recommend Definitely would repurchase Other Customers Are Either Vulnerable..or At Risk
A 5% increase in customer loyalty can produce profit increases from 25% to 85% Why is Customer Loyalty Important? Retention, New Sales 100% 80% 60% 40% 20% 25% 85% 0% without 5% increase with 5% increase
Why is Customer Loyalty Important? Word of Mouth Behaviour If you have a problem and it s resolved: Satisfied tells Dissatisfied tells Small Problem 5 people 10 people Large Problem 8 people 16 people Lifetime Value of a Customer is 10 years Cost of Getting a New Customer
Service Profit Chain
Customer Value Equation Customer Value = Results + Process Quality Price + Access Costs
Differentiators What are your differentiators? Who is the Marketing Department?
Understanding Our Client
A Trusted Advisor You re there so they can sleep at night You anticipate their needs because you understand their strategic business drivers You re accessible, flexible and responsive Every issue and challenge is approached with a positive, let s find a solution attitude Our company motto is do what s right for the customer
Our Clients Unique Value Proposition Each client has a unique combination of the four factors comprising the Value equation, which is their perception of value. VALUE = Results produced for the Client + Service Quality Price to the Client + Cost of Acquiring the Service Results - Fits my need, specifications - Good Quality - On Time - On Budget Price - Low/high - Value for money Service Quality - Dependability (Promises kept) - Responsiveness (Timely manner) - Authority (Confidence) - Empathy (Able to see the client s point of view) - Tangible Evidence (Service was performed) Acquiring - Cost of Acquiring Service - Ease of doing Business - Accessibility
Delivering Exceptional Service
The First Law in Service Satisfaction = Perception Expectation If the client perceives service at a certain level but expected something more (or different), then they will be dissatisfied. Neither perception nor expectation necessarily reflect reality. Both are experiential, psychological states of mind. The central challenge to service organisations is to manage not only the substance of what they do for clients but also to manage client s expectations and perceptions.
Client Service Management Clear ownership of the client CSM KPI s for the CSM s Client, Opportunity, Pursuit Plans Client Management site Match key personalities Service Profit Chain Training
A Formula for Service Our formula is: Service = attitude + art + process
Partnering Customer / Supplier Trust SOCIAL CONTRACT Trust Strategic Partner ECONOMIC CONTRACT Them and Us Legal Contract prevalent Single point of contact Undefined roles and processes to manage the relationship No regular evaluation process We Partnering Charter prevalent Multiple points of contact Clearly defined roles and processes to manage the relationship Robust Partnering review process
Sales Matrix
Summary Recommendations Understand the links in the service profit chain Measure and manage the relationships in your service profit chain Leadership needs to ensure there are KPI s around customer and employee loyalty Partner with key clients
Creating A Customer Centric Organisation A development journey involving the Executive Team, Key Customer Facing Leaders, Project Managers and Supervisors, Front-line Workers, Support Staff, Customers and Suppliers Creating Urgency Why bother? What s in it for me? What difference will this make? Vision An engagement process of cocreating the vision of a customer centric organisation First steps Working with all the organisation s groupings Tailored activities Market trends Growth Strategy and Values Customer feedback Employee Feedback Service Profit Chain Organisation examples Understanding your customers and staff Delivering exceptional service Foundations of great relationships Role of leadership Business unit and work team initiatives Partnering internally and externally Support and follow up
Creating a Customer Centric Organisation at Presented by Chris Wrathall, GM Business Development
What do we do? City Care is a nationwide company with locations throughout New Zealand Over 1700 employees nationwide Annual turnover of $350 million The market sectors of City Care include: Facilities Management Building Construction Water and Wastewater Open Spaces Civil Construction
Drivers for Change Customer survey results our customer service culture is our strongest asset, but our clients are concerned this is changing We re growing fast risk of erosion of our culture It is, and could be, our differentiator
1. Set the stage Sense of urgency Guiding team Change Management 101 2. Develop the vision 3. Make it happen Obtain buy-in Empower others Short-term wins Don t let up 4. Create a new culture
What we ve done Engaged with the Executive Team and gained their buy-in Developed a training programme based on the Service Profit Chain Put contract managers and business development managers through a 2 day training course Followed up with workshops for course attendees Implemented a company-wide CRM system Shared stories
Training What we re doing Developing a 1 day intensive course for PMs and supervisors Developing a course for field staff Developing e-learning tools to reinforce learnings Ongoing market research and customer surveys Using customer service attributes as a key to hiring staff Communicating the wins
The Challenges Getting people on the bus gaining that buy-in Communicating the Vision and benefits you can never communicate too much Gaining and continuing the momentum Measuring success KPIs The Start of a Journey