[fx365group.info][Wiley] customer management excellence successful strategies from service leaders

CUSTOMER

MANAGEMENT

EXCELLENCE

MIKE FAULKNER

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Typeset in 12/14.5 pt Bembo by Footnote Graphics, Warminster, Wiltshire.Printed and bound in Great Britain by TJ International, Padstow, Cornwall.This book is printed on acid-free paper responsibly manufactured from sustainable forestry in which at least two trees are planted for each one used for paper production.

Dedicated to Jacqui, for her inspiration, determination and belief

With grateful thanks to Sara for her unstinting help

For Sheila, my Mum, to whom I owe a huge debt of gratitude

And to the other important people in my lifeKatie, Hannah and Samuel

CONTENTS

Introduction 1

PART I

1 Evaluating a Customer-Centric Approach 11

Generic overview 12Are you price-, product- or customer-driven? 13Transition towards customer focus 16Differentiation through service 17What customer service excellence means to an organisation 19Readiness checklist 19Case study: Unipath 20Case study: London Borough of Newham 22

2 Enter the Customer Service Director 25

Introducing the role of customer director 26Customer elements of a commercial business 27How do service personnel keep touch with the changing

corporate structure? 28

C O N T E N T S v

What makes customers important enough to have a director? 29Readiness checklist 30Case study: Sun Life Financial of Canada 31Case study: Legal & General Assurance Society 33

3 Recognising the Cultural Needs of a ServiceOperation 35

Recognising the culture within different organisations 36Marrying a culture of profit to a service excellence ethic 37Undergoing a cultural change 39Change management issues 40Top-down approach to service culture 41Readiness checklist 43Case study: Thames Water Utilities 43Case study: The Royal Bank of Scotland 45

4 The Shift from Call Centre to Contact Centre 47

The emerging multichannel call centres 49Managing change while maintaining service levels 51Multitasking CSRs and keeping staff on-message 52Linking the data with the rest of the enterprise 55Readiness checklist 56Case study: Loop Customer Management 57Case study: Newcastle City Council 59

PART II

5 Dealing with Lifetime Values 63

Calculating customer lifetime values 64LTV is a key requisite to realise the full customer value 68Emerging trends in LTV measurement 69Is LTV being realised by companies and if so, how? 70Readiness checklist 71Case study: Carpetright 72Case study: Zurich Financial Services 74

6 How to Deal with Unprofitable Customers 77

Evaluating your customers’ value, segment by segment 78How to differentiate the service offering to your top

10 per cent 81Should you continue to serve unprofitable customers? 82How to offload the customers that cost you money 83Creating a knowledge-base about serial complainers 84Readiness checklist 85Case study: Hilton plc 86Case study: Vauxhall Motors 88

7 Complaint (Feedback) Management 91

Proactively managing complaints 92Predicting service shortfalls to reduce complaints 94Establishing transparency in terms of organisational culture 96When to tell the truth, the whole truth and nothing but … 97Admitting your failings 98Communication as a tool to deal with disgruntled customers 100Readiness checklist 102Case study: Thomas Cook Retail 103Case study: The Capita Group 105

8 Reputation Management 107

Executing effective damage limitation 108How to distance yourself from third-party actions 109Communicating with customers when you are powerless 111How companies are addressing third-party issues 112The emergence of customer unions 113Readiness checklist 115Case study: Travelcare 116Case study: The Boots Company 118

9 Managing Expectation 121

Customer service excellence increases expectation 122Customer service excellence becomes the norm 125

C O N T E N T Svi

Should service be paid for to reduce customer expectation? 125Reducing expectation can lead to reduction in

customer churn 126How organisations are dealing with customer perceptions

and changes in expectation 128Readiness checklist 130Case study: International Rectifier Company (GB) Ltd 130Case study: Powergen plc 132

PART III

10 Empowering Customer-Facing Staff 137

How empowering staff impacts on staff retention 138How empowerment impacts on customer retention 139How to empower staff and to what level 141Building staff confidence to ensure ownership of complaints 142Developing a set of discretionary awards 143Defining exactly how long that ‘extra mile’ should be 145Readiness checklist 146Case study: Currie & Brown 147Case study: WHSmith 149

11 Service Personnel Adopting the Sales Role 151

A satisfied complainer will remain loyal forever 152Cross-sell and up-sell opportunities with a satisfied

complainer 154How to gain a 360-degree view of the customer 155Identifying when a customer is satisfied 157Interdepartmental communications: internal

collaboration – a vital link 159Can service personnel see themselves as sales people? 160Readiness checklist 161Case study: Siemens Communications 162Case study: AON Warranty Group 164

C O N T E N T S vii

12 Caring for Your Carers 167

Avoiding jadedness in front-line staff 168Avoiding inconsistent service levels 169Taking a meaningful interest in your staff and their problems 170Promoting openness and discussion in the workplace 172Incentivising staff to go that ‘extra mile’ 173Acknowledging service excellence through benefits 174Understanding what motivates your staff and rewarding

accordingly 175Readiness checklist 176Case study: National Westminster Bank 177Case study: Mid Kent College 179

The Final Chapter – A Summary 181

The process 182And the final words for the doubters 186

6 Case studies featuring main category winners fromNational Customer Service Awards

BT Cellnet 187Eurostar UK 190Midland Mainline 194Sainsbury’s Supermarkets 197Stannah Stairlifts 200The Trafford Centre 204

Glossary of Terms 209

Index 213

C O N T E N T Sviii

INTRODUCTION

The past decade has seen a vast upsurge in the importanceattached to customer service from businesses operating in both theB2B (business to business) and B2C (business to consumer) fields.This increased activity has paid major benefits to early adopters.

Differentiation through service is rapidly becoming a vital addi-tion to any business process. Organisations that are at the fore-front are reaping benefits in terms of customer loyalty, customerretention and employee satisfaction. Yet this is just the tip of theiceberg.

Three years ago Quest Media introduced the National Cus-tomer Service Awards. The philosophy behind this was to recogniseand reward organisations that were pushing the barriers of serviceto new limits; to recognise those organisations and individualswho were going that ‘extra mile’.

The awards were also designed to lay down some bench-marks, so that others could measure their own achievementsagainst the best of breed. The pursuit of best practice can be a longand arduous one. Through a tough selection process, rigorousjudging and explicit entry criteria, the National Customer ServiceAwards help organisations achieve best practice levels.

This book will reflect some of the current thinking behindtoday’s front-runners in the service excellence environment. Itwill highlight some current trends and give realistic timeframes

for implementation and adoption of those trends. It will challengesome thought processes and it will celebrate the achievements ofsome of the most innovative organisations adopting the customerservice excellence mantra.

Before any company can reach the highest recognition foroffering service excellence they will have undertaken several ofthe following steps. Only then will they be positioned suitably tooffer exceptional service. Just because a company has incorpor-ated certain philosophies, success is far from guaranteed. Theservice culture is an on-going phenomenon, it is not a destina-tion, it is a journey. All of the organisations featured in the pagesof this book have decided to adopt a service culture. For thatalone they should be acknowledged.

EFFECTING CHANGE

To adopt a service culture means major organisational change.To drive forward a customer-centric approach needs buy-in fromthe very top echelons of management. It then needs follow-upfrom a designated manager and ultimately buy-in from employees.Much has been written about that hackneyed phrase ‘employeeempowerment’, but for a customer-centric approach to workyou really do need to empower your employees. Staff must havethe ability to take ownership of problems, they must feel able tomake decisions to rectify those problems, and they must feel thatthey are contributing.

None of this happens easily. Regardless of the size of theorganisation there are always the ‘doubters’. Determined organisa-tions will think of ways to encompass the ‘doubters’, to bring themon side and involve them. The ‘what’s-in-it-for-me’ cultureabounds in many established businesses and it is not until manage-ment can tangibly show the benefits of a new culture that the‘doubters’ will start to soften. The real hardliners, however, maynever change. Therefore it is sometimes necessary to be preparedto let people go. The benefits to the business through effective

C U S T O M E R M A N A G E M E N T E X C E L L E N C E2

customer service are far greater than the loss of a few single-minded employees.

Be brave; be committed.

CUSTOMER RETENTION

It is widely recognised that it takes time and money to attracteach and every new customer. For the first couple of years with a newly acquired customer, every penny they spend with anorganisation has to be offset against those acquisition costs. Onlythen can an acquired customer become profitable. Retaining acustomer to the ‘profit’ segment of the relationship is the cusp. Ifthey stay longer they are likely to create an emotional bond,recommend friends and remain loyal for some considerable time.Loyalty equals profitability.

The direct opposite of this will be the case if the customerrelationship has not been effectively managed. The customer willfeel no loyalty, have no emotional bond and will actively lookelsewhere for the services and goods that the original company isoffering.

For the organisation this means another round of customeracquisition with its inherent cost implications. Therefore it is farmore beneficial to retain the customers that you have and look toinvest a limited amount in keeping them.

Buy wisely; treat well.

USE ALL AVAILABLE DATA

There is a plethora of information available to businesses todayrelating to customer behaviour. Whether it is buying patterns,buying sequences, product purchase or complaints, data is beingcollected and stored. The sad fact is that too often this data is not

I N T R O D U C T I O N 3

being utilised. Offering excellent service does not have to start atthe complaint desk. Too many organisations collect data aboutcustomers and use it only for internal purposes without seeing the bigger picture. If a certain segment of customers uses yourservices on Wednesdays only perhaps it would be wise to offer‘rewards’ on Wednesdays to that customer segment – make thosecustomers feel valuable.

Recognising your customers’ habits is often the first step tooffering them outstanding service. Look at today’s supermarkettrade. Perhaps inadvertently, because of Internet shopping andthe need to deliver, supermarkets are returning to the original‘corner shop’ mentality where they take orders and deliver free ofcharge. The customers that use this service like this service. Thefact that these customers are probably marginally more affluentthan some others (by virtue of the fact that they have access to theInternet, computer and telephone line) might mean that they are more valuable to the organisation and worth retaining. Whenthese customers next go on-line to place an order, they have theirlast shopping trolley on screen to reorder or remove items. Thisbears more than a passing resemblance to Arkwright in Open AllHours – but the important message is to use all the available dataand start thinking of customer service from a proactive stand-point rather than a reactive one.

Analyse data; implement findings.

MEASUREMENT

A fundamental in embarking upon a service culture is knowingwhere you are at the start and planning where you are aiming toget to. Measurement is itself a leveller for many organisations.Knowing what to measure, how to measure and how to interpretfindings can be difficult and disappointing. To embrace a serviceculture, the organisation – from the top down – needs to beprepared to accept failings. Mistakes happen and when they do,


they must be addressed. A rewarding occurrence is when anorganisation suddenly recognises that the service culture is beingdriven from the bottom up. This is a real measure of success.

Measuring customer satisfaction is another necessary exercise.It should be measured at the outset, then continually monitoredthroughout the process. This will afford early indicators of suc-cess. It will highlight the implementations that are working andalso those that are less effective.

Measure everything; act on results.

COMMUNICATION STRATEGIES

Be prepared to communicate your intentions in several differentways to several different audiences. The embracing of a serviceculture requires communication at many levels. At the outset theinitial decision has to be communicated at board level. A businesscase for the pursuit of customer excellence must be conveyed sothat the highest echelon of management embraces the decision.

Managers then have to have the decision conveyed to them.They need to know how it will pan out, what responsibilitiesthey will have, how it will be measured, what powers they will have, and in some cases, what’s in it for them. The decisionthen needs to be conveyed down the ‘food chain’ so that everyemployee has the same understanding of what the organisation isaiming to achieve.

Then it is important to convey – in yet another way – themessage to the customer. You cannot sit back and hope that thecustomer will notice your service culture changes. You have totell them. You have to let them know what your aspirations areand tell them how quickly you aim to get there.

Say it often; say it proud.


TRAINING

It is often said that an organisation’s best asset is its employees.This is swiftly being challenged with many of the front-runnersin the service excellence field believing that their best asset istheir customers. This is a moot point because employees and cus-tomers are inter-reliant. What is not being challenged, however,is the fact that great customer service doesn’t just happen.Training is an integral part.

In Lessons from the Nordstrom Way by Robert Spector (pub-lished by Wiley), the author takes us on a spectacular journey,coast to coast across the USA, discussing fantastic customer service.But behind each and every single success story, training played amajor part. Through effective training, great customer servicebegins before the customer comes anywhere near the organisa-tion. Word of mouth recommendations can flood in because the staff are trained not to question the ethics of the company.Customers then gain confidence in using the company, secure inthe knowledge that they understand the culture of that organisa-tion.

Effective training will also serve to ensure that employees buyin to culture change sooner rather than later. Training can be usedas a communication channel that involves people rather thanconventional communications channels, which often tend toleave people feeling distant and bemused.

Train hard; train harder still.

These are just a few of the fundamental steps that a companyadopting a service culture will have undertaken. Those that havehoned the art of good service are celebrated within this book.That should not detract from the efforts of other organisationsthat are currently making great strides towards a customer-centric approach. To achieve best practice status is not somethingthat is achieved quickly or easily. Service excellence is, and must


always remain, just one small part of the overall business strategy.It must be submitted to the same processes as any other part of thebusiness plan. It will need to be cost-effective and beneficial onthe balance sheet.

For this book I have researched over 200 companies who areat the forefront of the pursuit of customer excellence in the UK.From this research I have been able to identify key trends andimplementations that are at the leading edge of customer serviceexcellence. I have also spoken to eminent thought leaders in thecustomer service field and from these findings I have been able toassess the timeframe between concept and implementation. I hopethat this book will serve you well in your pursuit of customerservice excellence.


PART I

CHAPTER 1

EVALUATING A CUSTOMER-CENTRIC

APPROACH

‘Our customers are loyal and keep coming back,therefore we must be customer-focused, right?’ Wrong.

Customer focus is, at best, only one element of the relation-ship between a company and its customers. At worst it is a board-room buzzword, which makes every board member feel a little more secure. Not unlike the phrase ‘working towards equalopportunities’, it is showing an awareness of a need but it is notaddressing the issues. Customer focus must lead to somethingmeaningful, will probably require sacrifices and is just one of thesteps necessary to become truly customer-centric.

A customer focus puts your customers high on your list ofpriorities. When you put your customers into the heart of yourbusiness, make customers part of the culture, then you start tobecome customer-centric.

GENERIC OVERVIEW

One department within an organisation cannot function in isola-tion. You cannot departmentalise a customer-centric approach.It must emanate from the very heart of the organisation. Alldepartments need to work in harmony, if not complete synchron-icity, in all communications with customers. Somebody high up in the organisation has to take complete control of the totalcustomer experience for a true customer-centric approach to work.This person should assume the role of communicator, championand relationship developer. Not all organisations are ready to dothis. Some companies rely on individuals ‘who are good withcustomers’ to assume this role. It has limited effect.

To evaluate an organisation’s readiness to become customer-centric is simple. To become customer-centric is a far more arduoustask. Having addressed all the points in the ‘readiness checklist’ inthis and every chapter, it is time to see where the shortfalls lie,and identify how to overcome them. Identifying the shortfalls isrelatively easy; overcoming them is far more difficult. If you needto undertake cultural change in order to adhere to the readinesschecklist then the task ahead takes on magnificent proportions.Educating an entire workforce to change in a way that is generallycustomer-centric is time-consuming and can cost the companyan awful lot more than merely the financial costs.

One of the most established customer-centric approaches inthe retail sector must be Marks & Spencer’s policy of exchanginggoods regardless of reason. This was, at the original time of imple-mentation, quite phenomenal. Although it was later to prove opento abuse, it was mimicked by many other retailers and, beforelong, the differentiation value diminished with it. This is a factorto try to avoid when implementing a customer-centric approach.If it is possible to avoid your service offering being mimicked or copied, then do so, even if it pushes your costs a little higher.The value of differentiation through service is featured in furtherdetail later in this book but it is, needless to say, a very, veryvaluable, powerful and cost-effective business process.


On the plus side, there will be many elements implementedwithin your current business processes commensurate withadopting a customer-centric approach. It is important that havingembarked upon the journey, which is customer service, organisa-tions look inward and establish all those elements that are positive.If the positive elements within current business processes onlyrequire an almost imperceptible change of emphasis, then look toutilising them within your customer-centric approach. If certaindepartments are more customer-orientated – either during cus-tomer facing situations or in handling customer complaints – thenbuild on and utilise that expertise. In some organisations, owner-ship of the customer can be a clouded issue. Some sales peoplewould like to say they own the customer, some accounts peoplewould also say that they service and own the customer; for acustomer-centric approach to be effective, the reality is that owner-ship of the customer should not be the domain of any one depart-ment and all departments should shift in unison.

The customer has to be central to most of the decisions madeby the company. The payback will be high, but the cost can behigh also. Will you ever be in a position to credit yourself as acustomer-centric organisation? The answer to that is doubtful. Thereality is, it becomes a way of doing business rather than a goalthat you achieve.

ARE YOU PRICE-, PRODUCT- OR CUSTOMER-DRIVEN?

Most commercial relationships can be broken down to three dis-tinct categories: price-driven, product-driven or customer-driven.Price-driven organisations, not surprisingly, compete on price,look at price as a differentiator and are forever concentrating onmargins. That does not mean to say that organisations in the othercategories do not look at margins but it is an ethos within anorganisation that makes everything surround the product price.

E V A L U A T I N G A C U S T O M E R - C E N T R I C A P P R O A C H 13

This will require those organisations to cross out the value oftheir customers. They find themselves in a precarious position interms of customer service because when somebody else comesalong with a lower price the customer feels justified in switchingbecause no loyalty has been built.

Product-driven companies differentiate on their particularproducts; sometimes this can be an ideal solution especially if the product is unique. However, unique products can be eitherfranchised – as in the case of Wimpy – or copied, creatingunexpected competition. Product-driven companies rely uponthe product to keep the customer. If the product is particularlygood, efficient, cost-effective and economic to run, then cus-tomers will acknowledge these facts and remain loyal. However,sometimes competitors can mimic goods and customers can betempted to buy your competitor’s stock.

Customer-driven organisations do not necessarily need tocompete on price or product – although it is important that theprice and product are of an acceptable standard. It is not animperative always to be cheaper or for the product to be unique.The customer-driven organisation will look at its customers as partof the overall business process. A true customer-driven organisa-tion will want to go that extra mile (a cliché, but a valid one) toplease the customer and to ensure that they enjoy the experienceof being a customer of that organisation.

It is well documented that the top 10 per cent of your cus-tomers can represent as much as 120 per cent of your profit.Therefore, it becomes vital to be able to see who your valuable cus-tomers are. It is an on-going dilemma whether you should deal withthe 10 per cent in a way that is different from how you deal withthe remainder of your customers. Obviously you want to retain the top 10 per cent because of the value that they add to yourorganisation, but you will not always necessarily want to lose any ofthe other 90 per cent because of economy of scale. It is importantto evaluate exactly how much you are prepared to invest for theretention of the 90 per cent of the customers in relationship to howmuch you are willing to invest in the top 10 percent.


How you communicate with your most valuable customers isa dilemma. If you treat them in a favourable way, offer theminducements that are not offered to the rest of your client base,you risk being ‘found out’. If you are ‘found out’ by some or manyof the rest of your customers they may feel alienated and defect;your economy of scale will diminish and therefore the true valueof your top 10 per cent will diminish with it. Communication is animportant tool but it can also be a minefield.

A customer-driven organisation will have data supporting itscustomer relationship. This data will be analysed, either by trans-action, by value, by location or geography. The data will havebeen collected, maybe by the sales or the marketing departments,but it will be shared. Shared data is valuable data. Data that is notused is of no use. Data that is out of date is also of no value, so theinformation that is held on the customer must be shared through-out the organisation and must be able to be updated from varioussources.

Loyalty marketing is a way of making sure that the customerswho are repeating business on a regular basis benefit from theirloyalty – thus engendering further loyalty. Collecting data andnumber-crunching are vital for the process to be successful. Theexplosion of loyalty cards in the retail grocery business from theearly 1990s was nothing short of phenomenal. Differentiationwas quick to diminish. Each of the big five supermarket chainswere employing the same tactics. Two things occurred: massivedata collection on a scale unknown before about the customer,and none of the supermarkets maximising the collected data to its full extent. Therefore, ‘customer loyalty’ became a total mis-nomer. Shoppers (customers) had ‘loyalty cards’ from all of thesecompanies. The lessons learnt took a veritable age to filter through.Loyalty marketing needed to ‘become of age’ and only customer-driven organisations are able to employ today’s sophisticated loyaltymarketing processes.


TRANSITION TOWARDS CUSTOMER FOCUS

Adopting the points set out here will set you on your waytowards achieving a customer-centric approach. However, orderneeds to be maintained. The primary process that has to be under-taken is management buy-in. Have the board appoint someone ascustomer director or at least appoint someone to be responsiblefor the total customer experience (TCE).

It will be necessary to establish to which of the three ‘driven’organisations you belong – product, price or customer. Thenecessity then is to become, if you are not already, customer-driven, which will involve looking at the entire business to enableyou to evaluate how easy or hard the task is going to be to make afull transition. If the entire culture needs to change then beprepared to implement over an extended timeframe to allow forfull adoption. Training and communication are all-important withregards to your existing staff. Often a customer-centric approachcan be driven from within an organisation, by its staff. The staffmust be truly empowered, though.

Look at your internal procedures: Is your organisationemployee-centric? Do you take account all of those people aroundyou and their individual problems, concerns, fears or worries? Ifso, you are well on the way to being able to commute that to your customer service offering. If, however, your managementapproach has been somewhat different, then set yourself a time-table and look at how to change processes; get feedback fromthose people who are on the front line; be prepared to empowerstaff and trust them. Promote buy-in from the staff through aprocess of training, communication and a top-down involve-ment from senior management.

Access, update and utilise all the data that you have on thecustomers. Assess your existing customers, evaluate and specifywhat your customer values are. Ascertain what your customers’lifetime values – how much money a customer will spend overthe lifetime of the relationship – are, and how valuable eachcustomer segment is to the organisation. Estimate the average


existing lifetime of the relationship with your customers, howmuch loyalty you are achieving now and set yourself targets for the future. The essence of transition to customer focus is toencompass all departments within the organisation, whethercustomer facing or not. If you can achieve maximum amount ofbuy-in from all departments, the transition will be smoother.

DIFFERENTIATION THROUGH SERVICE

Today’s economic climate ensures that all commercial organ-isations are striving for differentiation. No one wants to merelyreplicate what someone else is doing. Customers are spoilt forchoice, with a plethora of alternatives open to them. Choice existseverywhere today – whether it is where to buy groceries, whichairlines to use, which rail company – the list is endless. Therefore,differentiation ultimately filters down to service levels, and servicelevels alone. Consumers can go into any one of the big fivesupermarkets and purchase an identical shopping basket. One ortwo of the brand names may differ but the reality is that theproducts are the same. Likewise, a traveller can make a journeyfrom London to New York on any number of airlines; the flighttimes will be similar and the destination the same. The onlydifferentials will be the price and service. So achieving differenti-ation through service is becoming more and more important.

Differentiation through service is a win-win situation for allinvolved. The customer benefits because the service levels arehigher than would otherwise exist. The organisation benefitsbecause the customer is made to feel special and is more likely toreturn and use the service or buy the products again. The organ-isation further benefits through retaining customers and not havingto invest in attracting new ones. A customer who feels they havebeen treated particularly well by an organisation will talk about it.That word-of-mouth recommendation, referral or written letterof reference can benefit an organisation both in financial termsand through the kudos that is attached to offering great service.


As you look around the commercial world today you will seemany forms of differentiation, many different services; and manyof them represent good practice. The good practice, however,must remain unique. This is when differentiation becomes dif-ficult because you cannot copyright an idea or a level of service.Therefore, you must always achieve and look to achieve theextraordinary. True differentiation is when the ‘wow’ factorcomes into play.

The ‘wow’ factor is a mechanism that has crept into Britishand European commerce and is now recognised as a bona fideservice measurement. A customer will always recognise the ‘wow’factor. Most customers experiencing it will probably remain loyalfor a considerable amount of time; such is the effect of the ‘wow’factor. To achieve it is not so difficult; quite often a simple requestcan, when carried out effectively and efficiently, present the customer with the ‘wow’ factor. Going the extra mile, surprisingthe customer with a level of service greater than that expected,will also create the ‘wow’ factor. Perhaps one of the most common‘wow’ factors to hit the majority of consumers is when the maitre’dof your favourite restaurant remembers your name; this gives aninstant feeling of warmth tinged with tendencies toward loyalty. Itis a simple task and can be something that pays massive dividends.

It can be taken to the extreme though, as in the case of thehotel in the USA where the bell-boy at the front of the house wasnoticing the luggage labels and on a discreet radio microphonerelaying the information to reception. When clients arrived atreception they were greeted by name. Innovative perhaps, but alsovery insincere and open to error. This type of customer service isnot generally seen as being of great value; however, for thosewho knew no different and were exposed to the ‘wow’ factor thevalue was probably extremely high. Was it cheating? I suggest thejury is still out on that one.

If you can achieve the ‘wow’ factor in a genuine, meaningfulway then your customer loyalty levels will increase accordingly.Many of the case studies featured in this book have the ‘wow’factor as an inherent ingredient. You will see that it is not


necessarily major achievements that create the ‘wow’ factor butquite often it is the simple, easy-to-achieve tasks that are just notnecessarily the company’s normal procedure.

WHAT CUSTOMER SERVICE EXCELLENCEMEANS TO AN ORGANISATION

To a truly customer-centric organisation, customer service excel-lence means simply doing business the right way. To companiesstriving to improve their service levels to what is something ofHoly Grail level, it is an imperative. To those organisations, manyof whom are featured in this book, who have been recognised andwon awards for customer service excellence, it is the highestaccolade that a customer-centric organisation can have bestowedupon it.

READINESS CHECKLIST

1 Is the customer at the centre of your business?Make every major decision that is made in the boardroom impact onyour customers.

2 Do you have the necessary systems in place to afford thecustomer the best possible service?Be certain that you can deliver on your promises; make sure that yourcustomers are served by well-informed, knowledgeable, interested staff;have your delivery infrastructure best suited to your customer, notyour company.

3 Are your customers valuable enough to communicate withon a regular basis?A detailed analysis is required to ensure that your customers arevaluable enough to invest in. This process will also ensure that thelevel of investment is set early on and does not spiral out of control.

4 Are your customers an inadvertent part of your sales force?Customers who give word-of-mouth recommendations assume the



role of sales professionals for your organisation. If this is alreadyprevalent in your organisation, harness it and exploit it. If it is notevident, it needs to be created.

5 Do you have a board willing to achieve these goals?A customer-centric approach to commerce cannot occur without buy-inat board level. It is necessary for the organisation as a whole to embracethe ideals inherent in achieving customer service excellence.

Unipath

Type of Company: Limited

Nature of Business: Manufacturer of diagnostic products

No. of Employees: 470

Specific Challenge: Maintaining service levels and creatingrelationships to improve existing products and to aiddevelopment of new products.

Overview of Action: Unipath recognises that building relation-ships with customers is a worthwhile course of action becauseof the customers’ potential input into the design process forproduct development. The customer service department hasforged relationships with customers, medical professionalsand distributors. All communications are closely monitored,and data gathered as a consequence is fed into a knowledgepool, which is used as a reference for product developmentand training needs. The in-depth knowledge that the serviceteam has makes it easier for them to empathise with customersin times of dissatisfaction. This intimate knowledge of theproducts and customers also puts the front-line staff in aposition to make reasoned judgement calls. One suchinstance was the day before the Christmas shutdown when


CONTINUED . . . Unipath

a customer from Ireland called because her goods werefaulty. The local pharmacy had no supplies and the localdistributor had recently been disengaged and not replaced.The seriousness of the customer’s plight was instantly recog-nised and a replacement item was sent by courier to arrivenext day and in time for Christmas. Key actions that aidedsuccess were:

� A sound product knowledge;� Empowerment enabling unilateral action and decision-

making;� Proactive relationship-building.

Outcome: After identifying some distribution shortfalls, aremedy was put in place. Interdepartmental communicationmeant a pooling of resources and knowledge-sharing. Regu-lar and meaningful communication with customers andstockists gave the opportunity to collect data relating toproducts and service levels. This helped in identifying geo-graphical pockets where the company was under represented.

Key points:

�� Using communication as a two-way process;�� Using customers as part of product development process;�� Identifying customer as ‘king’;�� Empowerment can accelerate the ‘wow’ factor.


London Borough of Newham

Type of Company: Public sector

Nature of Business: Local authority


Specific Challenge: To equip staff with the key skills they willneed to succeed in the new millennium, and allow Newhamto achieve its vision.

Overview of Action: A programme was designed, titled ‘TheNew Century Managers Programme’ in order to meet thespecific challenge. The programme relates not only to staffon the front line who have a direct interface with the localcommunity, but essentially with all other members of staffwith internal customers, as well as working in partnershipwith external agencies and other stakeholders. One of thechallenges faced was with people being uncomfortablewhen pushed beyond their usual ‘comfort zone’. Also, someof the varied and unconventional learning techniques oftencaused some anguish. Many participants were startled tofind that they could have productive ‘fun’ at work. A morebalanced understanding was evident by the end of the train-ing. The complex and intricate design of the programmemeant that the team number swelled to around 100, with amix of academics, facilitators, mentors and coaches. Keyactions that aided success were:

� One-to-one briefings at induction;� Existing learning materials were utilised but with a verbal

explanation to assist staff inclusion;� Support given by departmental mentor;� Support from peer colleagues within project group.


CONTINUED . . . London Borough of Newham

Outcome: The New Century Manager Programme has beena success. It has had a significant impact on all council services.The project team monitors and evaluates each event verycarefully to ensure that they can build on the success ofprevious events and to ensure that each module achieves itsoriginal aims and objectives.

Key points:

�� Large-scale training and implementation can promote aservice ethic.

�� Communication and training across managerial levels;�� Measurement of training outcomes;�� Customer-centric approach changes conventional habits.

CHAPTER 2

ENTER THE CUSTOMERSERVICE DIRECTOR

Having a director solely responsible for customers andcustomer service issues is a new business practice designed to givean organisation both an element of differentiation and also a levelof customer awareness that many organisations today cannotattain. An organisation employing a customer service director willbe an organisation that is determined to put the customer at thecentre of all its transactions. This level of commitment shows thevalue being attached to customers in today’s business climate.The customer service director will also be a champion of the causesfor ground-level service personnel and customer service repres-entatives (CSRs).

For this tranche of the workforce to have representation in theboardroom is a move away from the normal processes that prevail.The information gleaned at the ‘coalface’ can now be transportedalmost without question directly to board level and acted upon.This process will serve the company very well in adapting itsservice offerings to suit the customer needs, it will also engender a‘feel-good’ factor among the service personnel who will feel thattheir input will have a direct bearing on the organisation’s overall

performance. The customer service director will have little or noresistance from fellow board members because they are alreadycommitted to the needs that the director represents.

Appointing a customer service director has far-reaching conno-tations, which go beyond the obvious: from a communicationstandpoint for instance, being able to transfer raw data to theboard room simply, quickly, can have a positive impact on theperformance of the organisation as a whole. Over the nextdecade more and more national and multinational organisationswill implement the new role of customer service director.

INTRODUCING THE ROLE OF THE CUSTOMERDIRECTOR

The customer service director is predominantly concerned withservice strategies. His role is to evaluate the service offeringcurrently in existence; he will need to assess the data and developa strategy that enables the organisation to prosper, utilising theservice ethic. The customer service director should also be thedriving force behind the empowerment of the service personnel,devising strategy and guidelines for the empowerment to be effec-tive. The role will also entail the process of measurement andbenchmarking and the pursuance of best practice methods. Thecustomer service director role cannot be immersed in singular,one-off activities; organisation and personalisation issues need tobe addressed by empowered line managers. The role has to bemore strategic and ‘big picture’, so that the patterns and habits ofcustomers and customer behaviour can be assessed, managed andmanipulated. Measuring the value of the service offering will bepart of the role and must be all-encompassing, so that the cost isoffset against the gains, and the gains have a financial value. Anyfinancial values need to be communicated to the rest of theorganisation to highlight that good service can contribute tobottom line. All of these functions will serve to benefit the CSRsand develop an overall more complete customer service. Of


course, this is not a definitive job description of the customerservice directors; these are just some key elements, which willdifferentiate that person from other directors.

CUSTOMER ELEMENTS OF A COMMERCIALBUSINESS

Everyone knows what the customer elements of a commercialbusiness are: the people who buy the goods or services. While this islargely true, there are other elements of a commercial business thatfall under the umbrella title of ‘customer’. The sales department hasa customer-facing role and therefore comes into contact withcustomers, potential customers and non-customers on a daily basis.The service personnel deal with customers when there are anyissues to be dealt with (returns, refunds, complaints, etc.), so theyare customer-facing. Other areas of business, which are not neces-sarily customer-facing but have to consider customer elements,permeate throughout the organisation, especially if the organisationis customer-centric. The recognition of the customer elementshould be throughout the organisation from the top down, fromthe boardroom, which in terms of having a customer servicedirector will be represented, right through to the shop floor.

The customer should be considered in the boardroom but,even with the services of the customer service director, shouldnot only be considered by that one board member. It is importantnot to install a person in the role and assume that they have soleresponsibility for the customer. The sooner an organisation caneducate its workforce that the customer is the vital link, thesooner customer service excellence will prevail in that organisa-tion. The necessary message to convey to all departments is thatthe customer is important to the company and what each indi-vidual does within the organisation is important to the customer.This should inject a certain amount of pride into the roles thateach of the operatives undertake and instil in them a feeling ofresponsibility. This ‘in their shoes’ approach to service levels will

E N T E R T H E C U S T O M E R S E R V I C E D I R E C T O R 27

enable everyone in the organisation to comprehend how theyshould be treating their customers. The customer service directoradopting this approach, professionally and with sufficient training,will enhance the profile of his directorate and the profile of theorganisation simultaneously.

HOW DO SERVICE PERSONNEL KEEP TOUCHWITH THE CHANGING CORPORATESTRUCTURE?

Service personnel who have the benefit of a customer servicedirector will have fewer challenges keeping in touch with corpor-ate policy than those without. A board director will have a directchannel through to the service personnel on the ground, whowill be able to implement and understand the corporate changesas they develop. In the absence of a customer service director,service personnel will benefit from the usual internal commun-ication vehicles. Newsletters, intranet and staff updates are allvery useful tools, but the difficulty with this type of commun-ication is that it is one-way. It is written and effectively dictatorial in tone; therefore it is prone to (mis)interpretation. While servicepersonnel tend to be more subjective, misinterpretation still exists.

Direct communication, where individuals can have interactionand/or conversation will reduce the incidence of misinter-pretation and will result in a smoother adoption of any changesrequired. In large organisations this is not always practicalespecially if it is a multinational company, but it can be beneficialto have a conference call or video conference where all servicepersonnel in turn have the opportunity to discuss and understandthe underlying motives of any change in corporate structure.

It is necessary to recognise the need for service personnel toboth understand what is required and why it is required. Because theservice personnel will have a certain amount of empowerment, theywill also have a certain amount of inquisitiveness. This inquisitive-ness is not through idle interest. It is turned into a fuller under-


standing of the organisation’s needs and requirements, which theythen convey to the customer, which serves the customer better,and the organisation prospers. The customer service directorshould nurture this inquisitiveness, feed it and watch it grow. Themore informed the customer service personnel are, the betterservice they will offer. The service personnel’s thirst for informa-tion will serve as a bottom-up reminder for the board. If the boardis aware that the service personnel will need a fuller understandingof their decisions, it will consider more fully the decision itself.

The internal communications within a multinational organisa-tion are difficult enough and should, as a rule, be all-encompassing,regular and informative. Because CSRs will be relating to thecustomer at all of their touch points, it’s vital that they are given more concise information and for that information to beconveyed to them sooner. This puts them into a position to driveforward the changes that are taking place within the organisationmore seamlessly and with less negative effect on the customer.

WHAT MAKES CUSTOMERS IMPORTANTENOUGH TO HAVE A DIRECTOR?

Money. It may be crude, it may be ethically wrong, but wheneverything else is stripped away, the only reason that customersare deserving of a director is money. The cost of acquiring newcustomers is an ever-growing strain on resources, and if anorganisation is able to retain customers for longer the savings willfall straight to the bottom line. There is so much known aboutthe customer today, from how long the customer is likely to stayyour customer, to how much that customer is likely to spend overthe lifetime of her relationship with the organisation. Minute,intricate details such as where she is most likely to go on holidayor even what she prefers for breakfast are collected and collatedbut seldom used. It is not a resource that organisations are happyto let disappear. Having a customer service director who canharness this data, grow it, utilise it and disseminate it through the


organisation means that the customer has more value than merelythe physical cost of what she buys. This amount of data in the righthands could result in a change of direction for the organisation, achange of product or indeed, just a change of design.

Organisations that are at the forefront of the service offeringwill appreciate that the customer has both a financial value and anintangible value. The intangible value is the customer’s marketingvalue – effectively, where a customer sells your services throughword of mouth or recommendation. Because this value is largelyintangible, too many organisations are reticent to recognise it.The reality is that, like advertising on the BBC, no money in theworld can buy word-of-mouth recommendations. The sophist-ication of customers is evolving and many analysts and expertsbelieve that over the next two decades customers will becomeeven more powerful than they are today.

The advent of vigilante consumers, and also of customerunions – collaboration between like-minded people to purchaseor not purchase en masse – will effectively empower customers to such an extent that it will impact heavily on commercialoperations. These customer unions will need clever managementand a customer service director will be in a strong position tocounterbalance the effects of the unions. As these unions grow,so their buying power will represent a large proportion of businessfor any organisation and the customer will increasingly becomemore important. The fact that many organisations now can only differentiate from one another by service also means that the customer becomes an important link in the welfare of thatorganisation. The phrase,‘The customer is king’ is no longer true.It now must be replaced by ‘The customer is God.’

READINESS CHECKLIST

1 Do you have one single person responsible for TCE? An appointment (preferably at board level) should be made that iseffectively a quality control role. A customer-focused, driven individual



at the helm will ensure that customer service levels are maintained.This person should also seek to exceed the set levels – continually.

2 Can your organisation take raw data and act upon it?Having a customer service director fast-tracks information and serviceshortcomings to board level so that the customer receives better servicequicker.

3 Does your customer service offering have a clearly definedstrategy?Too many organisations have stuttered into a service offering bydefault. Representation at the very top will help to define a freshapproach to what it means to value customers.

4 Have you benchmarked where you are now?Without an effective benchmark, you will not be able to accuratelymeasure success, or cost to serve, or benefit to the business. In short,you’ll be firing in the dark.

5 Are your messages getting through to your staff and beinginterpreted as you would wish?Conventional internal communications vehicles are one-way, leavingthe recipient (the CSR) without a voice and without valid input.Creating a direct two-way channel from top to bottom allows feedbackand reduces misinterpretation.

Sun Life Financial of Canada

Type of Company: plc

Nature of Business: Financial service, life, pension servicesand banking


Specific Challenge: To embrace a new computer system andovercome early implementation system shortfalls.


CONTINUED . . . Sun Life Financial of Canada

Overview of Action: Sun Life introduced a new computersystem, which enabled them to electronically access a client’sentire file and deal with incoming queries as a one-stop-shop,at the point of telephone contact. The system shortfalls inthe early stages were the inability to prioritise calls, and beingunable to move some ahead of others when necessary. Theentire service team had to work considerably hard to over-come these problems and to devise a system to prioritisemanually in the interim. During the time of the implementa-tion there were five major regulatory reviews. Work thatnormally would have been outsourced was kept in-house,and performed by fully trained company employees. Thissaved the company money and enhanced the customerservice offering. The service department took on the role ofcall centre and supplied customers, internal and external, withintimate knowledge of the company’s products. Key actionsthat aided success were:

� Excellent teamwork throughout the call centre;� Empowerment of operatives to take ownership of

queries;� Training and Institute of Customer Service Awards

qualifications;� Being part of an organised recognition system.

Outcome: Customer service department was recognised acrossthe organisation for its excellent service offering. The com-puter was adapted to take account of the previous shortfalls.Money was saved by the organisation by the lack of out-sourcing and the customer service offering was enhanced.

Key points:

�� Continually up-skill and cross-skill operatives for max-imum efficiency.


CONTINUED . . . Sun Life Financial of Canada

�� Have a clearly defined system of empowerment.�� Have a structured system of recognition.�� Promote teamwork and peer pressure to exceed service

levels.

Legal & General Assurance Society


Nature of Business: Financial services


Specific Challenge: To effect culture shift and closer relation-ship between service centre and marketing.

Overview of Action: In today’s highly competitive market-place, service is a differentiator. Every communication witha customer enables the company to reinforce the customer’sbuying decision. Legal & General Assurance Society wantedto make the walls of the organisation transparent to the cus-tomer. One of the prevalent difficulties was internal com-munications between the service department and marketing.On several occasions the service department received callsfrom customers who had received information on an enhancedproduct without the service centre’s knowledge. This meantthat the customer received a less than complete service. Inorder to address this, consultation was undertaken betweenthe departments and an understanding of the impact ofmarketing’s action was forthcoming. A system was designedthat requires that any marketing communication must be

CONTINUED . . . Legal & General AssuranceSociety

signed off by the service centre. This resulted in staff beingable to undertake training and briefings in order to offer amore complete service. Key actions that aided success were:

� Putting the customer at the centre of all decision-makingprocesses;

� Internal communications interdepartmentally connected;� Recognition that service is a differentiator with the

marketplace;� A determination to ensure the best possible service

offering from all departments.

Outcome: Besides the achievements of high levels of cus-tomer satisfaction, reaching service standards, retention anddevelopment of staff and managers, there is also a strongfeeling within the department that what they do makes a realdifference. Customer satisfaction has risen by 10 per centover a 12-month period; staff turnover has reduced from ahigh of 42 per cent to 25 per cent. This has been due in largemeasure to investment in staff training, development,performance management and communication. The entireculture of the department has been changed, with regularfocus groups of staff and management giving comments andsuggestions, which are acted upon. Staff feel valued.

Key points:

�� Changing culture must be an all encompassing process.�� Differentiation through service adds to the bottom line.�� Valued staff are more likely to remain loyal.�� Valued customers are more likely to stay loyal.


CHAPTER 3

RECOGNISING THECULTURAL NEEDS OF A

SERVICE OPERATION

The cultural needs of a service operation can differ fromthe overall culture of the organisation. And in many ways thereneeds to be a distinction between the two. The organisation willhave goals, aims, ethics and drivers; the customer service end ofthe operation will deal with the customers’ goals, aims, ethics anddrivers on a daily basis. In dealing with this dual set of challengesthe CSR must place the customer at the centre and satisfy, as muchas possible, both parties. While customers may take advantage ofthe culture of the organisation, enjoying the approach to businessand the ethics therein, they will at the same time also have theirown ethics that need recognition. This best takes place in ananodyne atmosphere where service personnel can exude profes-sionalism. Service personnel do not operate in an evangelicalway; they do not preach or try to convert people to their way ofthinking. They merely look to serve people in the way theyexpect to be served and to the best of their ability.

Recognising differing cultural needs interdepartmentally is animportant step to achieving customer service excellence. Allowingservice personnel a different set of freedoms from the rest of theorganisation does not necessarily mean that you will be breedinganarchy. Neither does it mean that you will be compromising theoverall business ethics and culture of the company. It does mean,however, that you do recognise the need for service personnel totake ownership of given situations. You will have empoweredthem to deal with the situation in the best way possible for thecustomer and for the company. For an organisation to recogniseits own culture is a breakthrough in many respects; an organisa-tion that recognises its own culture and allows different culturalactivities to operate within specific departments is a commerciallyaware company indeed.

RECOGNISING THE CULTURE WITHINDIFFERENT ORGANISATIONS

In a B2B environment it is vital that organisations understandtheir customers ‘corporate’ culture. In the B2C marketplace theorganisation needs to seek acceptance of its culture from its cus-tomer base. Knowing exactly how your client company wishesto orchestrate its business will enable you to offer what is perceivedby them as excellent customer service. Without this knowledgethe service that you offer will, at best, be mediocre; at worst noteven be recognised. As we have already discussed, the recognitionof a corporate culture within industry is not always an easy task,rather paradoxically it is often easier for somebody outside of theorganisation to identify. Defining a corporate culture is a difficultanalysis to make, and yet everyone will understand it when exposedto it.

Let us examine the successful high-street retailer, John LewisPartnership. For many years the John Lewis Partnership refusedto open on Saturday afternoons; furthermore it was the only chainthat would not accept transactions via credit card. Yet the com-


pany prospered with premises in London’s prestigious OxfordStreet. Its customers understood its corporate culture. The‘partnership’ element means that all of those working within theorganisation are ‘partners’; they have a share of the profits and avested interest in the organisation’s performance. As customersgrew more sophisticated, so their demands changed. We wereliving in a plastic society, everybody has credit or debit cards andcash is very much a last resort. The John Lewis Partnership had torelent; they had to start accepting credit cards. Although this wasagainst their corporate culture, they recognised their customers’needs, adopted part of the customers’ culture and adapted thebusiness processes to ensure that they satisfied their customers’needs.

At the outset of the Internet explosion, the general messageto customers was that they should be able to shop at any time, becustomers at any time; therefore the closing of a store on aSaturday afternoon was not seen as best possible customer service.So, the John Lewis Partnership relented yet again and opened ona Saturday all day. In doing this they have not diminished theculture within the organisation; everyone is still a partner andcustomer service levels have rocketed. The amount of people usingthe partnership and its sister organisation, Waitrose, the groceryretail arm, is in an upward arc of which any organisation wouldbe proud. Recognising its own culture and adapting it to offer abetter customer service has served the purpose for that particularorganisation. It is a lesson that can be learned and adopted bymany other organisations.

MARRYING A CULTURE OF PROFIT TO ASERVICE EXCELLENCE ETHIC

Every business is in existence to make a profit. In order to make aprofit, every business must have customers. Marrying the cultureof profit to the service excellence ethic is something that mustevolve; it is not something that can be manufactured. Many

T H E C U L T U R A L N E E D S O F A S E R V I C E O P E R A T I O N 37

organisations still see the service excellence ethic as being a costelement and a drain on financial resources. This need not be trueprovided the pursuance of customer service excellence hasfollowed a structured path. Customer service excellence will leadto greater profit. Customers will stay longer, will remain loyal andwill utilise your services, adding to your margins. The longercustomers stay, the more they spend with you, and the greaterthe profit. So, it is important to take many of the best practiceissues in this book and others, implement them in a structuredway, and let them evolve into a service offering that enables theorganisation to profit at the same time.

The profit culture can exist alongside service excellence, andalready does successfully for many organisations. They may makestrange bedfellows but service and profit really are a ‘match madein heaven’. The first step to achieving this match is for the organ-isation to accept that it is in existence to make a profit and not tobe frightened to highlight that fact in external and internal com-munications.

Being proud of being in existence to make profit is an import-ant step to ensuring that the cultures marry as time progresses.Investors, shareholders and other stakeholders will be satisfied thatthe company is able to discuss its motives openly and transparentlyeven when these motives are profit-driven. With the exceptionof a few specifically ethically driven subjects, the majority ofconsumers are unlikely to baulk at an organisation because itwants to make a profit. We have established that customers arebecoming more sophisticated, and they understand that a businesshas overheads and must make a profit. Finding a way of measuringthe customer service excellence payback is an important elementto marrying that part of the business to the rest of the enterprise.A customer service director would unquestionably aid this pro-cess. Any organisational dinosaurs evaluating customer service as acost centre rather than a profit centre will ensure that the marriagehits the rocks. Measuring the value of customer service and pub-lishing the findings internally will help to ensure that profit andservice continue to grow.


UNDERGOING A CULTURAL CHANGE

Resistance to change, in any situation, is a force that should notbe underestimated. When the magnitude of the change is some-thing as subtle yet powerful as corporate culture, then theresistance can almost be overwhelming. To undergo this type ofchange effectively without too much pain is a difficult process,and one that must be managed acutely from the outset to com-pletion. Introducing change demands explanation of why thechange is necessary. ‘Why change?’ must first be answered in theboardroom to define what needs changing. These revelations mustthen be communicated through the entire enterprise. Everyonemust be aware of why they are undertaking this change process.

Having communicated the motives downstream, it is thenthat the reticence will start to grow. The organisation must beprepared and able to answer the fears of all those affected by thechange in corporate direction. The challenges that are then facedwill be varied and many, and within the overall rollout of theculture change there must be provision made for a long consul-tation period. Fears in the labour market will ensure that every-one is concerned about possible redundancies. Downstream staffand some middle management will look for underlying cynicalreasons for the changes taking place. Putting the message acrossto your staff that the organisation is undergoing a cultural changewill concern them as to whether they will still be working for thesame ‘type’ of organisation. Again it’s important to put acrosswhat the endgame is likely to be and what results the organisationis looking to achieve.

Particular challenges are faced when new personnel at the verytop of the hierarchy are introduced. A new CEO or vice-presidentwill often send ripples throughout the organisation or enterprise.The outgoing incumbent will be a known entity and the entireworkforce will have a particular view of that person. The incom-ing executive will be an unknown quantity, and the only know-ledge anyone within the organisation will have is of his previousrecord. If the new incumbent has worked with an organisation


that has made redundancies, or restructured or downsized signific-antly, the fear factor among the workforce will escalate.

To manage this, it is important to have a transparent and openapproach and for the new ‘head honcho’ to be accessible to asmany of the workforce as possible. During open dialogue withstaff, it is important to get them to buy in to the process. This isbest achieved by identifying the strongest pockets of resistanceand avoiding or excluding them from certain processes at this stage.Concentrate on the most willing sectors within the organisa-tion. Often this is the service personnel. Enlist them as psuedo-customers and get them to sell your message to the rest of youremployees. Achieve total buy-in from your supporters, let themreap the benefits and sing the praises of the new regime. Let themdiscuss with other people from other departments how the newregime affects them and their working practices, and let themeffectively give the good news message. Because this sector ofemployees is already empowered and used to taking on boardother people’s (customers’) grievances, they are the likely candid-ates for assessing individual needs best, and therefore puttingacross the message of the cultural change in many different waysto ensure maximum effect. There will inevitably be some die-hard opponents who are unwilling to come along for the ride;not everyone behaves to set patterns. To maximise the speedwith which cultural change can happen, you may need to let goof some of your human resources if they are not willing to buy in.

CHANGE MANAGEMENT ISSUES

Managing change has several challenges and being an intangibleprocess is a difficult task to master. When change is managed well,it is almost imperceptible. Change will always require manage-ment of specific issues, some of which are:

1 Resistance to change2 Fear of change


3 Fear of underlying motives4 Fear of job losses5 Fear of losing out6 Insecurities7 Personalities8 Change of routine9 Learning new tasks

10 Financial penalties

Take those ten elements that need managing and multiply by thenumber of employees in your workforce and the magnitude ofthe problem comes sharply into focus. Managing change effect-ively is as much about managing personalities as it is about man-aging processes. The best way to achieve successful managementof all the issues is to take each particular item in isolation andcontinue to deal with that issue until the majority of people whoare affected by it concur with your views. The temptation, toooften, is to identify all of the potential problems and try to dealwith them simultaneously. The difficulty with this method is thatif you were to deal with all ten issues in one communication,certain sectors of your staff would put different emphasis on eachof the points. They may look at the order in which they werepresented or the amount of space given to each particular issue andapportion a corresponding amount of importance to each. Soon,it would be leveled that the organisation was not concerned withfear of redundancy issues because it was ‘ninth on the list’; farbetter to deal on an issue-by-issue basis. Recognise when it is timeto move on; there is absolutely nothing to be gained by coveringold ground when the workforce has accepted the proposedchanges. Give yourself a reasonable timeframe and stick to it.

TOP-DOWN APPROACH TO SERVICE CULTURE

An empowered service department will feel that it, and it alone,deals with customer issues. However, in order to reach that stage,


there must exist a top-down approach to that service culture.Someone in the boardroom must sponsor the entire process andtake customer service issues to a higher level. In many ways thistakes us full circle to the customer service director as discussed inChapter 2. Someone at board level who is committed to theservice ethic as well as the conventional business processes is avital link to offering excellent customer service. Differentiationthrough service will be the key driver for business as we progressthrough the first decade of a new millennium.

A customer service director will also be ideally placed toassess the challenges of customer unions (see Chapter 8) as theyemerge and react to service challenges as they present themselves.The customer service director will also be in a position to driveforward the value of the brand; either to umbrella organisationsfor customer unions or to just maintain the brand values and theculture that is inherent in it. To try to manage this from any-where below board level will inevitably undermine the initiativebecause of the board’s lack of buy-in and scepticism. If the boardappoints a customer service director to ensure that the customeris a central part of the business, then they will be more willing toact on the advice of that director.

It is important that the service director is seen to be champion-ing the causes of the service personnel, and not just seen as astrategist. Service personnel on the ground must feel empoweredand must feel that someone in the boardroom is supporting theirdecisions and their choices. It is important that customer servicedoes not get diluted and become all things to all men and that it is clearly understood precisely what customer service reallymeans to the organisation. Customer service should never be analternative phrase for a ‘sales person’ or for ‘an engineer’ or otherpart of the business. Customer service must mean serving thecustomer – pure and simple.



READINESS CHECKLIST

1 Are your CSRs sufficiently empowered to take ownership ofproblems?It is of no value just having another tier of people who can’t solve theproblem. This only breeds anger among customers, resentment amongstaff and dismay among stakeholders. Empower fully.

2 Can you mould your company culture around the needs ofyour customer?You must at least be prepared to consider this as an option. The ethicsand practices that your organisation exudes will not always be ‘hip’with customers. As they grow more sophisticated and mature so yourbusiness practices will need to reflect this.

3 Could you undergo change if you needed to?Take a look around your enterprise and imagine the amount of workand effort needed to effect change. People are creatures of habit (largely);move them out of their comfort zone and rebellion rises to the surface.

4 Can CSRs fast-track data to decision-makers?CSRs are at the coalface and they are party to emerging trends andoverall service shortfalls. This information is valuable – use it. Poolthe data and invite others to use it.

5 Is your corporate culture scaring customers off?Some corporate cultures are so strong that they actively deter customersfrom buying. Make sure that the ‘culture’ emanating from yourorganisation puts the customer in the centre. This will build loyaltyand engender customer-centricity.

Thames Water Utilities


Nature of Business: Water and waste water services



CONTINUED . . . Thames Water Utilities

Specific Challenge: Retain service levels while incorporatingnew hardware and software systems into the financial arm ofcustomer services.

Overview of Action: The financial arm of the customerservices department is responsible for internal financialhousekeeping, and this includes ownership of all customerservices cash collection. The introduction of new efficientalternative processes aimed at reducing many activities wasone of the challenges faced by the team. This involveddevelopment of interface spreadsheets and more efficientreporting systems, introduction of new hardware and soft-ware for cash collection processes, increased investigativework with reduced staff resource and reduced overtime costs.The team’s aim was to achieve the seamless introduction ofthese processes without affecting the overall service offeringto the rest of the organisation, and indeed the customers.Much of the success is attributed to the robust training pro-grammes that are in place for new and existing employees;the training includes induction courses, one-to-one training,coaching, individually agreed performance developmentplans, buddies and mentors. The development of a trainingmatrix in conjunction with on-going developments of qualitydocumentation means that agents have to sign off whensuccessfully trained. Key actions that aided success were:

� Understanding the need for a seamless transition;� Engaging the entire team and making them feel part of

the process;� Effective training for new and existing staff.

Outcome: The team’s profile has heightened and the valuablecontribution to cost-effectiveness and profitability is recog-nised. A reduction of manpower through natural wastage


CONTINUED . . . Thames Water Utilities

and voluntary means has achieved goals. The result andquality of the service is considered ‘best in class’ by externalconsultants and creditors. Quality documents and processesare regularly maintained and updated with the whole teamactively involved in recommended changes.

Key points:

�� Communicating changes assists buy-in.�� Extensive training results in better service.�� Identifying needs early enables goals to be set.�� Setting clearly defined goals keeps the team focused.

The Royal Bank of Scotland


Nature of Business: Banking

No. of Employees: 20 000

Specific Challenge: To improve service results in the customersatisfaction index.

Overview of Action: Customer service staff are invited tosuggest news ways to improve service and they have regularfeedback sessions. These sessions are enhanced by offeringincentives and prizes, giving staff a sense of inclusion andkeeping interest and motivation levels high. High achieversare recognised with a system of ‘stars’ and are nominated by

CONTINUED . . . The Royal Bank of Scotland

their peers. Exceptional service is recognised by the com-pletion of ‘encore’ forms, which customers submit whenthey have experienced exceptional service. A self-containedsupport system was designed to cope with busy times. Someinitiatives adopted are:

� Visiting elderly customers at home;� Taking ownership of enquiries to conclusion;� Acknowledging and apologising when errors occur;� Treating all customers as individuals.

Outcome: Eight areas of service levels are regularly monitored,and in ten months out of a 12-month period a score of‘Excellent’ was achieved in the customer service index

Key points:

�� Staff inclusion resulting in buy-in;�� Ownership of enquiries;�� Recognition of service shortfalls;�� Recognition of service exceptions.


CHAPTER 4

THE SHIFT FROM CALL CENTRE TO

CONTACT CENTRE

There are two distinct types of call centre: in-house andoutsourced. Each has its own sets of both specialties andchallenges. The integral ingredients for a successful call centre aretraining and empowerment. When an organisation contracts to aspecific outsourced call centre, it is vital that the correct amountof power changes hands in order that the call centre can offer thecore values of the client organisation to its customers. Difficultiesexist when the organisation does not have a clearly defined out-line of what service levels it wishes to offer. It is often instanceslike this that are responsible for the horror stories of call centreoperation that we sometimes hear about in the national press.However, because an organisation is looking to use a call centrethe likelihood is that it recognises a need, and is attempting toaddress that need as best it can, so clear service levels will havebeen defined. A specialist outsource call centre will ensure that ithas a full understanding of what any new client needs so that the

service offering is commensurate with that of the organisationitself. This approach helps to achieve a seamless transition, towhich the end-user (customer) is, in many cases, oblivious. In-house call centres tend not to have these particular challengesbecause they are so close to the company’s culture and also moreaware of the core values inherent in it.

While one of the much-published ‘pet hates’ about call centressurrounds the automated phone system, the reality is that a callcentre offers a customer another opportunity to enter into dialoguewith an organisation. The fact that this is automated should lendconfidence to that customer, affording the knowledge that theirparticular grievance is being logged and being dealt with. Enteringinto a dialogue with a customer is a very valuable resource andshould be encouraged at every possible opportunity (see Chapter11). Today’s call centre technology assists organisations in severalways. Call monitoring and logging supplies valuable data aboutnot only how the department is dealing with customers, but itcan also reveal valuable information about those customers. The data that can be gleaned from this type of software can have astrong influence on how organisations market their product.Advanced call centre technology can recognise incoming tele-phone numbers, which means the organisation is able to routethese particular calls to specific agents. This enables an organisa-tion to treat its most valuable customers to a different service levelthan that offered to the rest of its customers. From an employeepoint of view, the technology in existence today, and the evolutionof the call centre industry as a whole, means that there is muchmore personalisation and operatives are more empowered.Instead of being viewed as automatons, increasingly call centreoperatives have the power to address specific situations. Further-more, with multitasking and the up-skilling of operatives, theamount of channels that can now be used to contact an organisa-tion is further expanding and dialogue opportunities ever-growing.


THE EMERGING MULTICHANNEL CALL CENTRES

Long gone are the days when the only option that is open to acustomer wanting to contact an organisation was wait for openingtime or send a ‘strongly worded letter’. As technology has evolved,so channels have opened up for communication. A typical callcentre today would have the facilities to accept communicationby telephone, letter, fax, e-mail, web site and possibly even SMStext-messaging. Just as the Web enables us to shop 24/7 so themultichannel call centre allows us to complain 24/7. One of thepitfalls of a multichannel call centre is identifying which channelis the customer’s favourite. A customer may have sent an e-mailbut it doesn’t necessarily follow that the customer wishes to havean e-mail dialogue with you. It could mean that she has sent an e-mail in desperation because she could not get through on thetelephone. Identifying your customer’s favourite channel is oneof the challenges facing call centres today.

More channels of communication means duplication of com-munications. Again, because there are so many channels open toa customer, it’s quite possible that the customer will have madeseveral communications relating to the same problem. A systemof sieving must be adopted so that the numbers are not duplicatedand to avoid the wrong messages being received in the board-room. BT Cellnet went a long way to achieving the de-duplication of communication when it decided that its complaintresolution department should go paperless. Any incoming com-munication on paper was captured electronically via a scannerand given a unique number, and the original letter instantlydiscarded to the bin. Any other communication relating to thatunique number is logged within the electronic file. Therefore if acustomer sends an e-mail complaining, backed by a letter regard-ing the same complaint, both are electronically stored and can beviewed as a whole when the file is opened. Admittedly this is anin-house call centre operation but one that is a robust model forefficiency.

F R O M C A L L C E N T R E T O C O N T A C T C E N T R E 49

The same opportunities exist with a call centre as with anyother service offering, in that once a communication reaches theagreement stage, a cross-sell and up-sell possibility exists. This ismore difficult to assess in written communications via e-mail, faxor letter because there is no intimacy and it is difficult to judgewhen agreement has been reached. However, having establishedthe parameters under which the call centre should work, therecan often be a point when a sale is offered. The multichannel callcentre – increasingly known as the contact centre – does offer theorganisation a wider opportunity to enter into dialogue with aclient, but beware the ‘automated response’. A call centre has toset its expectations and capabilities because of the speed of theInternet and Web; complainants using these methods of commun-ication will expect a response almost in real time. The reality isthat competent, consistent and excellent customer service cannotbe offered as quickly as that. Many complainants are furtherincensed when they receive an e-mail stating, ‘Your enquiry isimportant to us, we are dealing with it fully and will respond toyou within 10 days’. Because of the nature of the Internet acustomer wants a realtime solution to any given problem that shemay be or perceives herself to be suffering from. A call centre needsto have a precise idea of exactly how quickly it can respond and thisshould be stated in any automated reply, so if your service levelsare to respond within two hours, then state it. Multinational com-panies have an advantage over national companies because theycan ‘follow the sun’ and reroute all incoming calls to operativesthat are open during normal daily working hours across the globeon a 24/7 basis. In the UK, a company wishing to offer 24/7service will probably need to outsource the call centre operationor have an agreement with an overseas operation, which can takethe calls and interpret the incoming messages. Paying UK-basedCSRs to work shifts for 24-hour cover is largely uneconomicaland many call centres are turning to India for help.


MANAGING CHANGE WHILE MAINTAININGSERVICE LEVELS

Maintaining service levels while undergoing organisational changeis difficult in any business environment, but it is particularly diffi-cult in a call centre, where monitoring equipment can pinpoint aservice shortfall instantly. The call centre is a technology-drivenpart of the organisation, and therefore subject to more change,more regularly than any other part of the business. To maintainservice levels at a time of change needs a careful programme ofrolling-out; much in the same way you would rollout a newservice offering or product. You need to go through the educa-tional process with your staff, and you need also to ensure thatthey are aware of how they, personally, will benefit from thechange. An organisation needs to be able to implement thechange in a piecemeal fashion. By introducing the changes insmall measure any problems or difficulties can be identified andadjusted quickly.

An organisation confident of the timescale for the plannedrollout of changes should make as many of its customers aware, assoon as possible, that the changes are taking place. Keeping yourcustomers involved in your decisions and aspirations will promoteempathy from them, promoting effective customer buy-in. Thiscan help to smooth the introduction of the changes and reducethe amount of incoming communications at this time. Thebenefits of this are that if the call centre’s communication levelactually drops during the change implementation period, then youhave more time to troubleshoot the problem areas and to under-take intensive training with your operatives. Informing customersof impending change when you are not confident of meeting the timeframe for the ultimate rollout presents a more difficultchallenge. A judgement call will have to be made as to whetheryou highlight to your customers the changes that are happeningwithout a strict timeframe or whether you work towards thosechanges diligently and announce them without much fanfare.Customers unaware of a change programme will not empathise


with the organisation; therefore their service expectations willremain high, putting an added pressure on the particular callcentre undertaking the change process.

Remain focused on your current service levels and ensurethat all operatives are familiar with the fact that change is takingplace to offer a better service, not necessarily to repair an existingservice shortfall. It is vital that your staff buy in to the changeprocess, and if they feel good about their work to date, they aremore likely to be willing to adopt the changes with the minimumof reticence. In some circumstances it is worthwhile to offerincentive packages for a really short period, which rewards yourpeople merely for doing what they have always done, namelymaintain service levels.

MULTITASKING CSRS AND KEEPING STAFFON-MESSAGE

Multitasking is no longer the feared beast that it once was. Muchof this is due to the social habits of the general public as a whole.The advent of the mobile phone has enabled many people toconduct two functions simultaneously as a normal daily practice.Walk past any secondary school at the end of its academic day andyou will find young people with a mobile phone in their handtexting someone while having a conversation with someone else,and also looking for their lift home. In a nutshell this is multi-tasking, and because this has now been transported into everydaylife, people tend not to fear it as much as they might have donebefore in the workplace. With multitasking one of the primaryfunctions that an organisation has to attain is the confidence-building of its operatives. At the outset, the thought of potentiallyhaving four virtual conversations on the Web simultaneously willscare even their most computer-literate operative. The call centreneeds to ensure that the training and the reality ease those tensionsfor the operative.

As soon as a call centre operative learns how to use predictive


text the entire role becomes simpler. To have a web commun-ication will not necessitate having to type, in full, the entire com-munication but just a series of key letters, which will then predictthe word and print it in full. (The important thing to ensure hereis that before sending such messages quality control is at theoptimum; with predictive text it is very simple to key a couple ofletters and for the machine to complete a different word.)

The first step in implementing multitasking is to ensure thatyour workforce is entirely comfortable with the solo roles thatthey currently perform, after which it becomes possible to movethose operatives to different tasks. So, if you have 20 telephoneoperatives and 15 e-mail operatives, swap them around, get themcompetent on all of your platforms and all of your channels, andkeep doing this until such time as all of the call centre operativesare comfortable with all of the technologies. This is a basic up-skilling technique and will require training and a structuredapproach.

Having successfully increased the competency levels withinyour organisation you are now ready to introduce multitasking,and the best way is to introduce it very, very slowly. Ask eachoperative to begin with only two communications simultan-eously. These need to be quite diverse, perhaps one telephonequery and one e-mail response. This way, it cannot easily damagethe e-mail complainant because the e-mail is only being authoredand not sent; it could potentially damage the telephone enquiry,but provided there is cover, by way of a manager, to instruct theoperative how best to deal with the situation, there should not betoo many problems to contend with. As you roll this out acrossthe workforce, you will find those who are naturally stronger and more adept at multitasking and those who are weaker.Concentrate at this stage on your stronger operatives because therolling-out of multitasking will inevitably save money in the end. As we have already identified that effective empowermentmust have guidelines, so must effective multitasking. Call centreoperatives can still have a level of empowerment but in order to keep them ‘on-message’ there must be strict regimes and


demarcations so that they know exactly how far they can go withany particular enquiry. The best way to accommodate this is tohave an effective escalation strategy in place and make it accessibleto all operatives. When they reach a point in communicationwith a customer that they know they can take no further, thenatural escalation process should prevail.

Once an enquiry has been escalated it is wise to cease multi-tasking and allow those people who are empowered to deal withthe query on this new level to concentrate wholly on satisfyingthe query in question. Defining an escalation strategy can bequite complex or relatively simple. In its simplest form, it couldmerely be a timeframe: as soon as a customer has spent over three, five or ten minutes discussing a particular query with theoperative it must be escalated. This is never ideal, but sometimesit can work to an organisation’s benefit. More convoluted escala-tion strategies can take months to implement and are a drain onresources if they are not already in place. Many call centres willhave an escalation strategy that will be easily adapted to multi-tasking. Wherever possible, try to ensure that the only staff beingasked to multitask are those who are happy to multitask. This willensure that the staff will stay on message for longer and offer thecustomer a good service. Use multitasking only as a last resort tocontend with the peaks and demands; it is unwise to try to usemultitasking to streamline or downsize your operation. The juryis still out on whether multitasking has an adverse effect long-term for operatives, so try to ensure that you have enough staff todeal with one task each, but have the skill bank for peak demand.

Although we used the training example of an operativeworking on the telephone and dealing with e-mail enquiries, thegeneral rule would be for multitasking to stay on the sameplatform, so an e-mail CSR may be responding to three or foure-mails at the same time and web chat CSR may have similar.CSRs in the call centre arena are beginning to see the benefits ofthe industry coming of age. More forward-thinking companiesare taking account of not only the working conditions but alsothe empowerment issues that enable people to feel good about


their jobs. A lot of good work is being done in the call centres andthis is reflected in some of the case studies within this book.

LINKING THE DATA WITH THE REST OF THEENTERPRISE

Nowhere in an organisation is data more forthcoming than in thecall centre environment. Data by itself has no value whatsoeveruntil it is used. The clever use and manipulation of data is whatoften sets organisations apart. During the development years forthe call centre industry, the data tended to be used as a stick tobeat the operatives with. Today, however, data is being valuedfor its true worth and astute call centre operators are using feed-back and information for up-selling, cross-selling and for productdevelopment. Linking the data to the rest of the enterprise is thecleverest way of manipulating the true value of the data that iscaptured.

Disseminating the data is no easy task. The bigger the organisa-tion the more data there is likely to be and the disseminationbecomes increasingly difficult. The call centre manager will bethe first person to utilise the data collated and he will be able to look at performance values, trends, patterns and particularoperatives’ output. Using the data at his disposal he will then bein position to make recommendations. These recommendationscan be long- or short-term; they could almost be hourly with the type of data that is incoming through the call centre. Theinformation now on hand has many other destinations within the organisation; not least of all, the sales department. If the callcentre has taken several enquiries regarding a specific product,then the sales department needs this information, so there mustbe an upstream route for the data to be forwarded.

Marketing will also need to take heed of the information anddata that is collated. Some valuable information will have comefrom the calls and can fashion the way that the marketing of newand existing products takes place. Manufacturing may have the


need for some of the data; especially if marketing has launched acampaign and feedback has been exceptional, manufacturinglevels may need to be increased.

So in this very simple format you can see that the data that isincoming through the call centre must be linked effectively tothe rest of the enterprise. The importance of attaching as muchinformation to customers in order to offer extraordinary customerservice is vital; when information starts to be disseminated aroundan organisation it is hard to keep the customer at the centre ofthat information process. As you drill down through the data andonce data recovery is complete, then it may be necessary to feedback response times and other statistics to other parts of theorganisation. The value of the data is priceless and should bemanipulated to its fullest possible extent.

READINESS CHECKLIST

1 Do you have IT issues up to speed?Data capture and customer communications are essentially IT func-tions and need to be operable, effective and up-to-date in order for anorganisation to become customer-centric.

2 Do you have an effective way of communicating with yourcustomers?Multichannel communications are necessary to accommodate thevarying needs of your customers. All channels need to be open to youroperatives so that they can communicate to your customers via yourcustomers’ favourite channel.

3 Is your automated call handling system having a negative effecton customers?What good is answering in ‘three rings’ if the customer is then launchedinto a maze of telephone options, piped muzak and options that don’tmatch the enquiry? Often this is made worse by the fact that theerstwhile customer picks up the tab! When you identify a service shortfall – deal with it. If the customer is important give them a callbackoption, and let a CSR return the call. Put yourself in their shoes.



4 How talented are your CSRs?You need to train hard and train harder. Up-skilling your CSRs willwork to your advantage in the long run. Implementation of many ofthe initiatives in this book will lead to staff retention; staff who canmultitask are well worth keeping. Work with your CSRs to ensureyou get the best from them.

5 Are you monitoring the service levels being offered?A continuous monitoring of service levels must be embarked upon.Do not confine your monitoring activities to the call response times ornumber of communications. Look deeper, look for quality measures,look for staff reactions, look for good news messages and factor theseinto the automated monitoring and statistics. This will give you aclearer picture and make your CSRs more responsive.

Loop Customer Management


Nature of Business: Customer relationship management


Specific Challenge: To implement a range of channels of com-munication for customers.

Overview of Action: The implementation of an image-enabledworkflow allows customers’ documents to be scanned,indexed and sent to work queues within hours of receipt.All written correspondence can be viewed on screen. Thisreduces the time taken to answer customer correspondenceand maximises the knowledge available to staff. It providesrealtime management information and overall has improvedservice levels while controlling costs. The introduction of


CONTINUED . . . Loop Customer Management

the Internet and e-mail service provides on-line forms suchas direct debits. This has again reduced time taken to actioncustomers’ requests. Call number identification and inter-active voice response supplement the automated call distribu-tion, allowing calls to be directed to the appropriately trainedcall centre agent. Technology is now utilised by all customer-facing staff across the contact centre, allowing some staff towork from home, remotely accessing the systems. Customersare able to interactively use the Internet, web site and e-mailfor posting forms and information and receiving an instantnotice of receipt. Key actions that aided success were:

� Comprehensive training in use of the newly imple-mented IT systems;

� Communication via focus groups and presentations;� Reasons for change and end-users’ need to buy-in

clearly communicated;� Ensuring that the IT solution has capability to grow

with the business.

Outcome: Loop moved premises, which involved moving450 people over a one-week period. The IT logistics asso-ciated with this were immense. This was achieved with no disruption of service to customers. The strategy was tohave all customer-facing staff on one floor rather than overtwo sites. This has resulted in more effective utilisation ofresources and an overall better service to customers. Thehomeworking pilot has enabled eight people to work fromhome, handling incoming customer calls or responding tocorrespondence through the workflow system. The benefitshave been a more flexible workforce, increased productivity,reduced absenteeism and an improvement in the life-workbalance for those involved.


CONTINUED . . . Loop Customer Management

Key points:

�� Train all operatives to a level where they are confident onIT systems.

�� Where possible, witness the system live, in another organ-isation.

�� Ensure the IT has capability to grow in line with companygrowth.

�� Involve end-users early on and take on board their com-ments.

Newcastle City Council

Type of Company: Public sector

Nature of Business: Local authority


Specific Challenge: To utilise technology to better serve cus-tomers and staff.

Overview of Action: The city council has developed a networkto link the main council offices and neighbourhood officeswith local depots, whereby requests from the public aretaken by call centre staff and electronically communicatedto the correct operational staff in the appropriate locations.This function saves the council time and money. Mapsproduced from the system are used by the council and policeas part of an anti-crime initiative. When calls are received

CONTINUED . . . Newcastle City Council

about graffiti, or abandoned vehicles, the police are able touse the maps generated by the system to pinpoint potentialflashpoints. This is a value-added service that was not themain consideration when applying the application. Directbenefit to customers was that the customer service centre waslaunched as a focal reception contact point, where the useof an automated queuing system, ticket machine, multiplequeries, Tannoy system and visual display screens are adirect result. Key actions that aided success were:

� Getting staff on board early and working at the process;� Giving ownership of the process to all staff;� Piloting small ‘bite-size chunks’ before full rollout;� Being flexible if immediate results fell short of expecta-

tion.

Outcome: Calls by the public doubled in the first 18 months.Service standards have been introduced and published. Per-formance measures are in place. Management informationhas led to service re-engineering and unit costs for lineservices has decreased.

Key points:

�� Inform all staff when new technology systems are beingintroduced.

�� Allow staff to take ownership of the process.�� Keep focused on benefits surrounding the implementa-

tion.�� Be prepared to accept a level of failure before ultimate

success.


PART I I

CHAPTER 5

DEALING WITH LIFETIMEVALUES

The customer approaching an organisation, and making apurchase, merely carries out a transaction. The transaction valueis that of this specific purchase being made. However, that samecustomer has a potential lifetime value, which magnifies thetransaction value by the amount of purchases that she may makeover the lifetime of the relationship. Calculating the lifetime value(LTV) of a customer or a customer segment is a valuable exercise,which can enable an organisation to maximise the service offeringthat it presents to this specific group. The estimated LTV of a par-ticular customer is often referred to as the relationship value.Conveying the relationship value of a customer or a group ofcustomers across your enterprise can serve to focus the import-ance of good customer service to all departments. When the true worth of any given customer is clearly understood by thebusiness, the service levels are likely to increase.

The process of calculating LTV requires a specific set of rulesto be in place. Each different organisation will assess the numberof years that a particular customer will remain active and calculate

that as part of the process. To use the railway passenger example:a typical commuter might start commuting at aged 18 years andcontinue until perhaps aged 55; this means that to the rail com-pany a commuter might have a LTV calculation of 37 years. Bymultiplying the cost of the annual season ticket by 37 (one foreach year’s renewal) the estimated lifetime value of that customeris evident. To extend the example: if each rail worker recognisedthe potential value of a season ticket holder to the business as awhole, the likelihood is that he would deal with those customersin a completely different manner.

A holiday company would calculate LTV in another way,although using the same principles: a holidaymaker, or segment,may make one long-haul trip every four years and one short-haulEuropean trip every year; they typically start this pattern in theirmid-twenties and continue it until they are 65; 40 years of pur-chasing power to be divided by 30 short-haul and 10 long-haulcosts will give the LTV. As you will see through the rest of thischapter, there are simple calculations that can be made to giveoverall average LTVs and extremely complex modes of calcu-lation for more strategic purposes. The underlying message how-ever, is that the calculation and recognition of lifetime values willserve to heighten the service offering from an organisation.

CALCULATING CUSTOMER LIFETIME VALUES

There are several mechanisms that can be used to calculatepotential LTVs of your customers. One of the simplest methodsis to merely take the profit annually of the organisation anddivide it by the number of customers that you have. This willgive you a mean average of the value of each customer, havingstripped out cost to serve and every other aspect. This, however,does not give a clear indication of what the customer has actuallyspent and therefore can give a vastly different value to that whichthe customer genuinely has. This calculation does give you


evidence that every single customer has a level of importance anda value far greater than the value that any of your operatives see inany single transaction. This process will not help in segmentingyour customers, and thus has no real bearing on the differenti-ation of service that you might wish to offer your most valuablecustomers.

Another calculation of the LTV is to take the value of yourannual sales and divide that by the number of customers that youhave. Again this is imprecise because customers will have differ-ing buying patterns, but this will give you a clearer idea of eachcustomer’s spend and conversely an idea of your cost-to-serve.Each of these processes will necessitate that you have establishedthe average relationship length in years. If your customer is buy-ing white electricals perhaps they will only replace those whitegoods every five years. If they have a buying lifetime of 25 yearsthis represents only five sets of purchases. Their LTV will be fivetimes the transaction value. Similarly, if your customers are buy-ing vehicles from you, they may replace each vehicle every twoto three years, they will have buying lifetime of between ages 17and 65 giving you 48 years. Purchasing takes place every two tothree years over this 48-year period, so on average they will buybetween 16 and 24 vehicles: a mean average of 20 transactions.How you then calculate the value of those 20 purchases requirescareful consideration. Should you build in inflation? Should youtake account of buying patterns? Is your customer likely toupgrade the purchase? All of these considerations will affect theLTV of the customer and his potential impact on your business.

In order to obtain a clear indication of the lifetime value ofyour customer base or customer segment, you will need to assessthe buying patterns. The buying patterns will follow a lifestylepeak and trough flow. A typical lifecycle pattern for the groceryindustry might be as follows:

Aged 18 to 20 years A new customer emerges who is juststarting out, either at university or havingleft their parents’ home. They will start to

D E A L I N G W I T H L I F E T I M E V A L U E S 65

buy groceries and their shopping basketwill be modern ingredients, fast food, amix of brand names and economy lines.

Average weekly spend£20 to £25 for four years

As their life changes so their grocery buying habits will change.

Aged 22 to 24 years The customer may start a family and startto purchase more traditional ingredientsand baby supplies. Their shopping basketexpands as their priorities change. First-aidkits and safety locks become de rigueur fora short period, swiftly followed by babyfoods, drinks and disposables. During thisperiod the washing-machine consumablesand hygiene purchases become morefrequent.

Average weekly spend£40 to £50 for 10 years

The customer has had two children who are now aged between eight and ten.

Aged 32 to 34 years As the children grow the customers shop-ping basket doesn’t, but it does alter. Amix of wholesome foods with fast foodssuch as fish fingers, burgers and beans arepurchased more regularly. More peopleare trying to strike the life-work balanceand so fast foods are on the menu moreoften. The children in the family (who arenow growing into your next line of newcustomers) are starting to take TV mealsand snack foods.



The customer’s children have now flown the nest and become your new customers.

Aged 42 to 44 years The customer is now buying luxuryingredients, quality foods but only buyingfor himself and his spouse and typicallywill spend a similar amount.


The customer has now retired from work and subsequently buys less product.

Aged 65 years At 65 the customer will perhaps start to return totraditional ingredients, mixed with economy andbrand lines and will reduce his spend.

Average weekly spend£20 to £25 for remaining years

To accurately calculate a customer’s worth to a grocery businessyou would need to build in inflation and other economic indic-ators that would affect the figures in real terms during theeffective buying years. You need also to establish the average ageof your customer base so that it is clearly defined how many yearsto calculate after age 65. This will then give you a very precisefigure of how much that particular customer is worth to yourorganisation. This can then be expressed as a customer segment.You will find that a customer walking around with a shoppingbasket worth £65 000 would make the store manager treat himin a completely different way to him walking around with hisbasket of £50 or £60! Accurate calculation of lifetime values canbe very difficult to make, but once made will serve the businesswell as an indicator to see where to grow that business to the bestpossible effect.


LTV IS A KEY REQUISITE TO REALISE THEFULL CUSTOMER VALUE

Lifetime values and relationship values require the cradle-to-gravementality. An organisation has got to want to attract the customerearly in his buying cycle, and retain that customer for the durationof that customer’s buying life. Good examples of this includemortgage businesses, which look to retain the customer over anextensive period of time, offering products as and when theycome on-line, so that the customer remains a customer with themlong after the mortgage has been settled. Banks and insurancecompanies are pretty good at applying the cradle-to-grave men-tality also.

Setting about offering a service level that attracts and retainsthe customer year-on-year is the next task to be undertaken.Customer value has to be seen as a best estimate. While theestimates can be quite accurate and certain accounting proced-ures followed, the actual value of the customer can be curtailedby many different incidences throughout the lifecycle of therelationship. A customer could relocate to a different regionwhere your service offering is not available, or the customer couldsuccumb to a tragic illness and cut short the relationship, andmany, many other possibilities exist.

However, the LTV estimate can give a bigger picture acrossthe organisation if talking in terms of customer segments andgrowth numbers, which is a difficult calculation also. If thecompany is calculating year-on-year growth of a set amount andfails for any reason to reach that, the knock-on effects of thosecalculations and LTVs is quite significant. You cannot grow turn-over without the customers spending and if you have notattracted the level of customers with the LTVs that you assumed,then you are very unlikely to reach your end result.

There are three factors on which to base your LTV calculation:historic trends, current figures or future potential. The difficultywith future potential is that it’s not backed up by any actual dataand therefore tends to be viewed with a little more scepticism.


Figures based on current trends are often seen as having been‘cherry-picked’. The idea of basing figures on current activityassumes that current activity has been exceptionally good. Thatleaves us with the historic data, and in many ways this is the safestand best-recognised way of assuming future LTVs. If you have agroup of customers who have behaved in a certain way uponwhich you are basing your LTV activity, then the chances are thiswill be accepted as potential for future behaviour, given that yourservice levels and performance levels remain the same. Anyimprovement in service levels can impact on the LTV calculationover a sustained period.

EMERGING TRENDS IN LTV MEASUREMENT

Some companies today are actively encouraging staff to calculatethe LTV of any given customer. The theory behind this is that ifthe staff within an organisation can become aware of the truevalue of a customer, they can see how beneficial that customercan be to the company. Simultaneously, they will respond to thatcustomer in a different way because of the value that the customerrepresents. The reality is that, unfortunately, many employees seethis as a management-led initiative that has little or no real value. This is due in large part to a lack of effective training and acommunication shortfall. Importance of the LTV calculationmust be made known through internal communications to thestaff as a whole and, unless attitudes change, it will become neces-sary for the organisation itself to calculate the LTV of its customersor customer segment and convey the findings to the staff, in away that they can comprehend to promote the furtherance ofoffering excellent service as a result.

Another emerging trend is that companies are beginning tocalculate the cost of managing relationships and estimating thereturn on those costs. So by taking the estimated LTV of a givencustomer and looking at the cost of managing the relationship,which would include setting it up, running costs and calculations


for exit costs, the company is then in a position to see whether ornot the active management of the relationship is a viable wayforward. A good example of this is the recent withdrawal bySafeway of its rewards system. Having calculated the LTVs andthe cost of managing relationships Safeway recognised that theywere merely rewarding customers for doing what they would do anyway. Therefore it was advisable and financially viable toremove the scheme and avoid the cost. Other emerging trendsare the top-down management approach to LTVs and the pro-motion of the ‘in their shoes’ strategy. Every person within anorganisation is a customer in their own right, and enabling thosepeople to evaluate LTVs of customers gives them a sense of theirown customer power, and their own LTV to the organisationsthey purchase from.

IS LTV BEING REALISED BY COMPANIES ANDIF SO, HOW?

Yes, is the simple answer. The calculation methods are becomingincreasingly sophisticated to the point where stripping out thecost-to-serve, taking out bad debt provision, insurances andvarious other cost elements is presenting a very clear picture ofsegmented LTV. Segmentation is an important means of lookingat the LTV of your customer base overall. Small customers arepotential risks. It is not necessarily that they are any more finan-cially vulnerable than anyone else; it is merely that it is harder todetect. Segmenting the larger customers makes the financial situ-ation clearer and it’s easier to see if there are any financial short-falls. CRM systems and relationship management by individualscreate a mass of data. This data is currently being held in datawarehouses and data mining will reveal which individual customerhas a high value to the organisation. This is being undertaken bysome organisations presently, however not en masse. Activelytargeting new customer segments that have established high levelsof lifetime or relationship values is a growing trend in various


sectors. In many instances the cost to serve remains exactly thesame, while the return on investment grows apace. Having theability to pinpoint a particular sector and then segment it, targetit, and promote it as ‘new business’ for your organisation can payhuge dividends. It is important to remember, however, that yourcompetitors will also be looking to target your high-level LTVcustomers. Their marketing machines will be active in trying toattract your customers.

Companies that have successfully identified their customerswith high levels of lifetime value will in many cases now be offer-ing them a level of service beyond that offered to the rest of theircustomer base. Some of the forward-thinkers in this business pro-cess area will also be identifying the next generation of customerswith high LTV potential. This is really taking the calculationonto the next level, and for those organisations that make thecalculation and get it right, the rewards will be bountiful. In anattempt to increase the levels of service that an organisationcurrently offers to its customers it may be worth using the graphicimage of the customer pushing several hundred trolleys full withluxury items around the supermarket; or a particular customerbuying several high-performance cars from the same dealership.This will serve to remind everyone that the customer has a valuefar greater than the purchase price of what he is buying.

READINESS CHECKLIST

1 Can you calculate your own LTV as a customer and evaluatethe difference it makes to your purchasing attitude?Every individual has LTVs, whether to the supermarket, car dealer,electricity company and so on. When looking at the relationship valueyou have, it is likely to change your behaviour. Assess the impact thatthis exercise could have on your company and implement it.

2 Do you have good enough data?The information that you hold on your customers can prove invalu-able when used to calculate accurate LTVs. If your data is not good/



clean enough, start to sharpen up and collect information that has atangible return.

3 Do your staff understand the principals of LTVs?If not, it is important to enlighten them and get them doing somecalculations. Move the emphasis away from transaction value. Set therules to use and look for behavioural changes from your CSRs.

4 Is your organisation familiar with customer buying patternsand the effect they can have on future planning?If you accurately assess the lifestyle pattern in association with theLTVs, as an organisation you will be in a strong position to seepotential shortfalls in demand. Proactive calculation can help in manyways and is an excellent marketing tool.

5 How much is your cost-to-serve and is this the right amount?Calculate your cost-to-serve and then evaluate whether this is a viable cost for the value of your customer. If you can contract yourcustomer to remain with you for a number of years (B2B) it may be worth spending more. If you cannot, you need to make a judge-ment call. Calculate the LTV and ask Is that customer/segmentworth it?

Carpetright


Nature of Business: Retailer


Specific Challenge: To effectively manage complaints to ensurethat customer service expectations are met.

Overview of Action: In the 12 years since the company wasformed the focus has been primarily on growth. There has


CONTINUED . . . Carpetright

been a consequential lack of attention to other key areas ofthe business. As the rate of growth reduces, customer serviceis gaining importance, and customer retention at each store isan important part of the business. Being a customer-facingbusiness, and because each order is of relatively low value,each customer must be highly valued. One particular cus-tomer complaint was escalated to such a degree that thecomplaint took on a new proportion when the attitude ofthe staff member was bought into the equation. Customerservice staff had already been trained to deal with this type ofsituation, and the matter was resolved. However, it wasfound that the lack of knowledge in the store was commonin other stores within the area. A manager’s meeting wasused to explain and train. From this, the managers trained in-store staff and the effectiveness of the action taken wasmonitored. Customer service department uses customerfeedback software to record and monitor the progress ofcomplaints. Staff follow up complaints individually and on astore-by-store basis. Key actions that aided success were:

� Service department having authority and respect acrossdepartmental borders to carry out training;

� Financial investment in analytical complaint manage-ment software;

� Change of focus from board level, recognising customerlifetime values.

Outcome: The number of complaints recorded for each periodhas been reduced. The proportion of complaints relating tocompany policy has also been reduced. Two stores that hadthe worst record of complaints were turned into top-fivesales performers. Specific targeting of a region resulted inreduction of complaints.


CONTINUED . . . Carpetright

Key points:

�� Recognising customers’ lifetime values (LTVs);�� Using data collected from complaint management system

and analysing results;�� Recognition that satisfied complainants remain loyal;�� Top-down approach to culture changes and changes in

focus.

Zurich Financial Services


Nature of Business: Financial services


Specific Challenge: To develop an added value services team toretain customers.

Overview of Action: Historically, an integrated team structureresulted in a lower priority being given to outbound calling.Inbound agents carried out proactive calling when and onlywhen time allowed, prior to the initiative to set up theadded value services (AVS) team. It was recognised thatproactive calling required a specific skills set, and inboundagents were not able to dedicate the necessary time to buildthe client relationships that are essential to customer reten-tion. The purpose of the AVS team is: to provide specialistservices to customers; to aid the retention of the existingclient base through customer relationship building; and to


CONTINUED . . . Zurich Financial Services

increase revenue by maximising new business opportunities.This is achieved through proactive outbound calling that istriggered either by a change of personal circumstances of thepolicyholder or a targeted campaign. Key actions that aidedsuccess were:

� Achieving buy-in from board level to introduce a newapproach;

� Taking a systematic and measured approach to achieveaims;

� Project plan and proposal created and presented toboard representative;

� Sticking to project plan and believing in the end result.

Outcome: Proactive work is now accepted as an essential partof the corporate business plan. Each project is accuratelymeasured and costed against business requirements that areagreed with internal clients at the outset of the project. TheAVS team is totally accountable. Customers receive a morecomplete service because of the use of life-triggers, such asreaching retirement age, completion of mortgage and thelike.

Key points:

�� Board level buy-in is imperative.�� Have an overview of how implementation will affect entire

corporation.�� Adhere to implementation plans.�� Establish a database of customer details in order to adopt

life-triggers where appropriate.

CHAPTER 6

HOW TO DEAL WITHUNPROFITABLE CUSTOMERS

Any business will have a mix of profitable and unprofit-able customers. The most profitable customers will representonly 10 per cent of the client base but 120 per cent of the profit.Sixty per cent of the customers will represent no profit or loss andthe remaining 30 per cent of your customer base will effectivelycost you money. Assessing whether it is worth actively riddingyourself of the 30 per cent is an important exercise. While theymay not be adding to your profit, they may be integral to youreconomy of scale. If a customer uses a rail network for one stationonly, provided he is not stopping a lucrative customer who is anannual season ticket holder from using the service then the chancesare he is not worth either measuring or indeed actively trying tooffload as a customer. If on the other hand you have a set ofcustomers who are habitual bad payers and require that you sendthem threatening letters each time before they settle their account,they may indeed impact directly on your accounts, because of thecost of communications with them. These particular clients maywell be worth offloading.

In order that a business can deal with its client base effectively,it needs to segment that client base, break it down into behaviouralpatterns or geographic locations, or even age groups that aremanageable and largely predictable. If this can be achieved effect-ively then it makes dealing with your customers a much morestructured process. The whole customer analysis must take theform of a strategic plan, which must look at both the savings andthe costs. Another important factor to be considered is how yourorganisation is measured by its stakeholders. If your organisationis measured by customer numbers then it might be important toretain customers, even if they are unprofitable. If you are assessedas an organisation by product volume then a reasoned judgementcan be made with regards to the unprofitable customer and howmuch product volume they consume. Like many things in thecustomer service environment it is not always as clear-cut andstraightforward as it first appears.

EVALUATING YOUR CUSTOMERS’ VALUE,SEGMENT BY SEGMENT

In order to effectively evaluate a segment of your customer base itis required that you establish your segmentation methodology.Just as a pie can be cut in many different ways, so your customersegmentation can take many different forms. Much will dependon your methodology or your objectives, and these need to belooked at in detail and evaluated closely. The methodology andobjectives should be in line with corporate strategy and takinginto account corporate culture. Having established the ‘rules ofengagement’ you are faced with a situation of establishing whyyou have undertaken the segmentation of your customer base. Inshort, this can be summed up by the analysis that it is far easier todeal with a small number of segments rather than a very largenumber of individuals. Each individual customer’s DNA profilewill differ from another; however, certain characteristics will standout that enable groups to be established. These groups we tend to


call segments. The segments in evaluating a customer base takeaccount of elements such as behavioural patterns, trends, expecta-tions and purchasing need. From initial segmentation it is possibleto drill down to sub-sections within a certain segment for specificcorporate or marketing purposes. An organisation will target aparticular segment, such as the first-time buyer being a valuablesegment for a mortgage company. The specific driver behind thatphilosophy is that the first-time buyer is likely to remain with themortgage company for the lifetime of his house purchasingactivities. Similarly, commuters would be an ideal target segmentfor rail companies or coach companies because of the high valueand expected longevity of their custom. Targeting the specificsegments of customers identifies a belief in the organisation thatthe particular segment is valuable to the overall goals and aims ofthe business.

Having targeted them and enlisted them as your customersthe next phase of the segmentation is likely to take place. This iswhere you look at that particular segment and break it downfurther to those that are profitable to the organisation and thosewho are less profitable. This could be due to the prompt paymentof some against others. It could be the payment method of someagainst others; it could be the value of the purchase against others.It will be important to the organisation to establish its mostprofitable and least profitable customers. It is then necessary toevaluate whether or not it is worth actively seeking to retain allthose customers. You need to look at the cost of their retentionagainst the cost of rejecting them to one of your competitors.There have been cases where the rejection of customers to acompetitor enables the competitor to reach critical mass. Theyare then able to implement an economy of scale that makes therejected customer a valuable resource to them. This in turn, givesyour competitor a competitive edge over you, so the very factthat a customer may not be the most valuable in your customersegmentation does not always mean that they are worthless. Itmay be worth retaining them to ensure that your competitors arenot in a position to exceed your levels of service.

H O W T O D E A L W I T H U N P R O F I T A B L E C U S T O M E R S 79

Before targeting a specific segment of new business or part ofyour existing customer base you need to establish how long itwill take for that customer segment to become profitable. Interms of a first-time buyer in the mortgage market, it may takethree years for him to break even and five or six years before heactually becomes profitable to you. You must have in place astrategy to keep that customer for that length of time, whetherthat is achieved through marketing at the outset by putting inoverriders or by offering incremental bonuses to that customeryear-on-year. (Mortgage companies are a particularly goodexample because they may include an indemnity that states that ifthe customer switches mortgage supplier within a set period oftime they must pay a substantial amount of money to the originalsupplier, which means that having attracted the first time buyer,the mortgage company has then locked him in, effectively, to alengthy relationship.)

The end result is that the strategy must be in place at the outsetof making the service offering. Your customers afford you a massof knowledge and this knowledge will enable the company tomake some predictive assessments. A particular segment will beseen by the organisation to behave in a certain way. This enablesthe organisation to assume certain needs are being dealt with, andcan aid the smooth communication by tailoring fewer messages.Why do organisations segment their customer base? The mainreasons are:

1 To target new customers;2 To retain existing customers;3 To provide better service;4 To reduce risks of customers defecting to competitors.

Once a segment has been defined, it is important to assess howrepresentative that segment is to the precise segment that youwere trying to target. You will then need to look to see how you can physically reach them as a segment and the method ofcommunication you will use. Segmentation can give you onlypotential worth. Until that particular segment become customers


you will not know their true value. The strategy to keep themneeds to be flawless if you are to retain them long-term.

HOW TO DIFFERENTIATE THE SERVICEOFFERING TO YOUR TOP 10 PER CENT

Your top 10 per cent of customers will become a segment in theirown right. Within that segment an organisation needs to identifythe key drivers that make them your best customers. There willbe common threads and these common threads must be pulledtogether in order for you to offer the service and the differenti-ation to the particular client segment as is befitting. One of thesimplest ways of differentiating your service offering to this seg-ment of clients is through the issuing of privilege cards. When acustomer presents his privilege card he can then receive exemp-lary service. Or you could differentiate through a customernumber, which begins with a privileged prefix so that, in anycommunication that he has through any channel, when asked hiscustomer number then that will set him apart from the rest. Theservice offering can then be commensurate with the value youhave attributed to that client’s segment. If you happen to knowmany personal details of that customer (and you should) thenthese can be passed to the call centre, or customer service depart-ment, who can then have caller displays on the telephones, whichwill indicate that the customer who is calling from this number isa valued customer. The service offerings can be varied, and theamount of innovation taking place in this arena is too vast todiscuss in the pages of this book.

A couple of tried and tested modes are special open days forthese clients only at sale times, invitations to events that are notextended to the entire customer base, corporate entertainment,hospitality and so forth. Communication is always the key and by ensuring that you communicate regularly with your best customers you will be able to make a judgement on what is bestneeded to present them with the ‘wow’ factor. Engaging your


top 10 per cent of customers in interaction with the organisationwill afford valuable knowledge. This knowledge can then beanalysed to see if it is viable to offer inducements to some of theother 60 per cent, and try to coerce them into elevating them-selves up into the 10 per cent club.

SHOULD YOU CONTINUE TO SERVEUNPROFITABLE CUSTOMERS?

There will undoubtedly come a time when the cost-to-serveunprofitable customers exceeds the income value of that customer.This, however, does not always mean that it is viable to let thatcustomer go to your competitors. Each instance must be carefullyevaluated and it must form part of the overall strategy of theorganisation. Again it will depend on whether the organisationmeasures by customer numbers or consumption of product. Anethical question also presents itself: Are you duty-bound to servethe unprofitable customer? In regulated industries, such as a watercompany, there is no choice. The water company must serve theunprofitable customer, not in exactly the same way as it mustserve its top 10 per cent, but it must continue to supply at least abasic level of service. It cannot withhold its services. It cannotdisconnect supply so it has no choice. An organisation that is notregulated has to decide whether or not it should deal with thisparticular customer or client segment in a way different from howit would deal with the rest of its customers.

Some of the key factors in making the decision about unprof-itable customers will inevitably be whether you can afford thosecustomers to defect to your competitors, and whether the numberof customers that you are looking to rid yourself of will affect yourown economy of scale. It is necessary to calculate whether theunprofitable customer is likely to remain unprofitable forever, orwhether that customer could become profitable in a given time-frame. Given that it was back in 1987 that the American Con-sumer Council revealed that it cost five times as much to win a


new customer as it did to retain an existing one, it is a braveorganisation that actively reduces customer levels without copiousamounts of research. Before offloading unprofitable customers,you must have absolute clarity and conviction that the customersegment will not return a profit in the foreseeable future, andthere must be valid benefits to the rest of the business in reducingcustomer numbers.

HOW TO OFFLOAD THE CUSTOMERS THATCOST YOU MONEY

The first step is to calculate not your cost-to-serve these customers,but your customers’ worth to a competitor. Once the decision is made and the strategy approved, let the culling begin! Thesimplest and most cost-effective way of letting unprofitable cus-tomers go is by doing absolutely nothing. If a competitor isoffering special inducements to your customers to switch, thenonly counter that offer to the segments of your customer base thatyou wish to retain. Another method is to allow for natural slippageof service levels to the chosen segment you wish to offload andaccept that there will be a certain amount of wastage (customersthreatening to walk away and being allowed to, by your inactiv-ity). When a client rings to say that they are thinking of movinginstruct your service personnel to show a certain amount ofempathy, but not enough to change that particular segment’sdecision. This may all seem like very calculated, cynical and harshbehaviour from a corporation, but the profit ethic must prevailand an organisation must deliver to its stakeholders. If a customeris not actively going to suffer from not using your service thenethically it is acceptable to treat the customer in the manner asdiscussed.

If the segment that you are looking to offload is defined byeither postcode or telephone prefix, it becomes really simple toexclude these from mailings, from special offers, from variousinducements that you would normally offer as a service to your


clients. If the unprofitable segment is made up of more intricatecomponents it is more difficult to pinpoint them, and the methodo-logy becomes more difficult. Because the nature of lettingcustomers go is often counter to the aims and the mission state-ment of the organisation, the process may be executed in a some-what ‘clandestine’ fashion. This is less than transparent and it is avery difficult thing to achieve without causing internal disruptionand external consternation. This is another key reason to evaluatewhether it is worth undertaking such a process. Many organisa-tions today are building into their business plans and their figuresan element for unprofitable customers and the cost of maintain-ing them. The entire question of offloading unprofitable customersremains one that it is up to each individual organisation to assessand to implement or account for.

CREATING A KNOWLEDGE-BASE ABOUTSERIAL COMPLAINERS

Serial complainers are a drain on resources. The effect that theyhave on call centre staff and service personnel, for example, canoften outweigh the validity of their complaint. Always evaluatethe financial cost of their continuing complaining. Take intoconsideration the cost of the time the CSR spends with a serialcomplainer, the cost of any reparation (the outcome) and the effectthat it has on morale. The serial complainer is a customer thatnobody wants. Most organisations are capable of identifying serialcomplainers, yet the data collection and dissemination is woefullylittle. It is happening in certain sectors with other undesirable seg-ments. Pub-watch is a scheme where landlords in a town willshare data with each other as well as with police about customersthey find undesirable; another scheme exists to capture shop-liftersand another to identify those who continually return clothing andother items to retailers. Serial complainers are a growing minoritythat needs to be watched.


Establishing whether a complainer is justified or not demandscomplete faith in your product and service offering. You musthave absolute certainty that there is no possibility that the cus-tomer could be legitimately complaining because of your failings.Because a consumer has certain rights, there is precious little actionthat can be taken unless outright fraud can be proven, and becausemost serial complainers are from the ‘I-want-something-for-nothing’ brigade the likelihood is that they are not serious fraud-sters. So the only way to deal with them is to collect data anddisperse that data throughout your organisation and perhapsextend the knowledge to other interested parties, while at all timesavoiding a witch-hunt approach. From a service perspective, theserial complainer is akin to the retail sector’s shop-lifter – onlyyou do not have the powers to deal with them as effectively.

READINESS CHECKLIST

1 How much are you prepared to invest to maintain yourcustomers?Customer-centricity does not come cheap. You need to assess the fiscalcost of undertaking this process. The costs have to be offset against thegains made in customer loyalty levels and reduction in churn.

2 Which customer segment is your most valuable and how doyou know?It is not always the customers with the highest transactional valuethat represent best value to your organisation. Step back and evaluatethe mean average of various segments and calculate the relative LTVs.

3 Does your organisation display joined-up thinking whenattracting new customers?You must involve the marketing department in the overall strategywhen attempting to attract new business. The whole picture needs tobe clear so that the customers attracted are the right customers.

4 What is your cost-to-serve?It is vital that this calculation is made. The ultimate aim might be toreduce the cost-to-serve of the bottom 90 per cent (by value) of



customers to increase the service offering to the top 10 per cent. Butyou must know at the outset what the costs are, preferably segment-by-segment.

5 Do you ever opt to do nothing?It can pay dividends if you are looking to reduce customer numbers.Yet doing nothing needs to be as well-planned and methodical as anactive campaign. It must be clearly communicated which customersegment should be treated this way – and it must be confined to thissegment only.

Hilton plc


Nature of Business: Hotel chain

No. of Employees: Unspecified

Specific Challenge: To offer a level of service that promotesrepeat business and improves number of recommendations.

Overview of Action: Being part of a chain of hotels has certainchallenges that are not common in other commercialoperations. Geographical rivalry can sometimes increaseservice levels; no one wants to be beaten. A conferenceorganiser challenged a southern hotel by stating that theservice in the north was ideal and could not be bettered.Through applying all the service expertise and training thatis part of the Hilton ethos, the southern hotel bettered theservice. A true win-win situation. In order to maintain theirhigh level of service, Hilton staff undergo regular technicaland behavioural skills training specific to each department: acontinuous process for the duration of their employment.

CONTINUED . . . Hilton plc

Customer service is prioritised at induction and is core tothe Hilton brand. Customer surveys, letters of thanks andfeedback forms are all evaluated regularly and feed back todepartments for action or recognition. Key actions thataided success were:

� Integral corporate belief in customer service as a tool toattract customers;

� Continuous training to strive for service excellence;� Regular feedback of positive and negative comments.

Outcome: The latest mystery shopper audit score was 90 percent, up from 85.3 per cent, an increase of some 4.7 per cent.The number of letters of thanks has risen markedly and thelanguage has grown more emotive, with individuals as wellas teams being singled out for praise. The customer serviceteam has undertaken an independent initiative to furtherenhance the service levels, developing a ‘business plan’ withfive key stages that the team has bought into.

Key points:

�� A customer-centric culture creates focused service person-nel.

�� Communication of positive feedback does not create com-placency.

�� Interdepartmental rivalry can improve service offering.�� Customers’ lifetime values will affect the service levels.



Vauxhall Motors


Nature of Business: Automotive manufacturer


Specific Challenge: To open the Internet as a sales channel forthe benefit of car-buying customers.

Overview of Action: Vauxhall identified a visionary oppor-tunity to test the effectiveness of using the Internet as a newmedium to capture an emerging customer segment. As aresult of the Internet-usage explosion in the UK, the aim wasto stimulate dealers and customers and grow their confid-ence in this new way of doing business. Vauxhall wereconfident that this channel could be a valuable aid to thetraditional retailer distribution network and increase efficiencyusing e-commerce. The interactive car showroom allowspotential buyers to purchase a vehicle via their computer andeven complete a 360-degree walk-around of their chosenmodel, all without leaving their home. This means that forthe customer there is no sales pressure, yet they are guaran-teed the full sales and after sales support. Customers canpurchase at a time that suits their personal lifestyle and arenot dictated to by the opening hours of the local retailer.This, together with the ability to trade their vehicle in, booka test drive, complete a finance application and order access-ories on-line, means that customers receive better service.Key actions that aided success were:

� High-profile, board-level announcement of the initi-ative;

� Communication of the initiative to all interested partiesthrough traditional channels;

CONTINUED . . . Vauxhall Motors

� Making the web site completely user-friendly;� Having a web site help desk set up to help people if diffi-

culties arise.

Outcome: The success of this project is reflected in thevolume of ‘hits’ to the site – a staggering 203 million – fourmillion of whom have shown an interest in buying a vehicleon line. In this industry-leading route to market approach,Vauxhall has learnt an enormous amount about this newchannel, and attributes 1500 additional sales to this initi-ative. The company has extended their range of vehicles toenable them to capture a new segment of customers and isnow looking to offer accessories and services on-line.

Key points:

�� Customer segmentation shows potential for growth aswell as most valuable customers.

�� New channels to market for traditional industries can paydividends.

�� Communication is key to e-commerce success.�� A dedicated helpline for web enquiries adds value.


CHAPTER 7

COMPLAINT (FEEDBACK)MANAGEMENT

Some say that good customer service can be measuredonly by complaints. How complaints are dealt with, what com-plaint resolution methods are undertaken and the volume ofcomplaints will all act as indicators of how well (or badly) anorganisation is doing in the pursuit of service excellence. Otherswill argue that customer service can be measured in pure terms ofbenchmarking against your competitors. However you choose to measure your service levels, effective complaint managementwill be a necessary part of the process.

Regardless of how exalted your eventual position becomes,you will always receive complaints. In order to achieve your ulti-mate aims it is necessary to benchmark. Most organisations startthe benchmarking process by comparing their service with thatof their competitors. As the benchmarking process matures, it ispossible to benchmark against your own performance. This iswhere the true benefits are to be gained.

A major part of complaint management is complaint handling.When a mistake happens and a complaint is forthcoming, you

need to show empathy and react swiftly; and this alone can oftensave the relationship. A complainer who comes back satisfied isoften a more loyal customer than ever before. When this processis executed effectively a complainer actually becomes a positiveadvantage for a company. Complaints serve to give an organisa-tion a learning capability, and a chance to show how to performexceptional customer service.

PROACTIVELY MANAGING COMPLAINTS

To proactively manage complaints an organisation needs to lookinward at actual service levels compared with customer expecta-tion. When service levels fall below the internal accepted standardit is fair to assume that complaints will follow. Having establishedthat complaints will be forthcoming the organisation can put inplace a process for dealing with the imminent influx. This processcan have the effect of being an exceptional service possibility,especially as the complainants will not be expecting the full andfrank answers as can be forthcoming. Equally, because a resolutioncan be built in to the answer (a discount voucher or money off,etc.) the customer can often feel extremely satisfied.

Proactive complaint management can occur wherever anorganisation knows, in advance, that it is about to offer a servicebelow its normal standard. As an example, a railway operatorknows that a particular train is running an hour late. The operatorknows that this is bound to present a set of complaints. However,the train operator has had at least one hour to be able to formulatethe correct response to subsequent complainants. If those com-plainants find that they have a full, frank, transparent and honestreason for the delay the rail operator will have dealt proactivelywith those complaints. The fact that many rail companies decideto have a standard form and adherence to the passengers’ charterspeaks volumes about an alternative approach to customer serviceexcellence. By operating in this way (there are exceptions, butsadly these still are exceptions) the overriding philosophy is one of


reducing customer expectation. In a quasi-monopolistic industryit is easier to reduce a customer’s expectation, because the choicehas been taken away from the customer. This very point promptedone CEO of a train operating company to address a letter to all itscustomers as ‘Dear Passenger’. This particular CEO felt thataddressing them as ‘Dear Customer’ was potentially volatile, asthey really did not have any choice. This level of understandingof the customer psyche is one of those exceptions mentionedearlier.

In the B2C environment often the biggest causes of antagon-ism for complainers are:

� A lack of information – ‘the not knowing’;� A lack of credibility in the eventual response and being given

several different reasons by several different people;� The length of time it takes to reach a resolution of the com-

plaint.

To effectively proactively handle complaints it is necessary toensure that there is continuity in the reasons being given and thatthere is empowerment to those people giving the reasons. Pro-actively dealing with complaints in an open, frank and honest waycan sometimes hurt; it is, however, a beneficial proposition inorder to maintain client credibility and customer loyalty.

Managing complaints also requires flexibility and the abilityto listen effectively. Having a standard answer to a given complaintcan be your downfall as well as a benefit. Listening to and evalu-ating what your customer is saying to you during the complaintprocess can have major benefits both for the organisation and forthe complainer. Often we hear words such as ‘feedback’ in placeof ‘complaint’ and while this is positive internally for an organisa-tion it can, unless handled properly, be a turn-off and a negativeto the complainer. A complainer will always want an answer ifnot retribution and/or consolation; however, a simple explanationcan often suffice if it is given in an honest and truthful way.Obviously if the organisation has been negligent or if the servicehas been counter to that promised then it is best to put your

C O M P L A I N T ( F E E D B A C K ) M A N A G E M E N T 93

hands up and say, ‘We have failed.’ A company that can do this isa company that can be proud of its service offering.

An important aspect of managing complaints proactively is to have a process that is open, accessible and easy to use. Theinvitation to complain – however transmitted to the client, via acustomer satisfaction form or evaluation feedback – is an import-ant process for any company. While it may seem counter-productive to invite complaints you will find the informationgiven via this method is more valuable than expensive marketresearch. However, the information that emanates from theinvitation to complain must be acted upon in the same way as anycomplaint, with empathy, speed and honesty. An organisationthat effectively seeks to proactively manage complaints reducesthe level of escalated complaints noticeably. At the same time theorganisation sends a message to its customers that it can deal withthem openly, frankly, honestly and through an accessible medium.Customers feel that they are being listened to and that their com-plaints are worthwhile. The company has the opportunity toanalyse all of the data and look deeper for service shortfalls.

PREDICTING SERVICE SHORTFALLS TOREDUCE COMPLAINTS

Predicting service shortfalls is not always as difficult as it seems.Translating the shortfall to your customers is quite often muchmore difficult. The process is, however, worth persevering within order to ensure that the level of complaints is not over-whelming. If a construction company recognises that they areoverrunning on a road-building contract, the government bodyresponsible might issue an announcement in the local paper thatthe opening date of that particular road is going to be later thanexpected. Effectively this is predicting the complaints that wouldbe forthcoming should that announcement not be made.

Mere recognition of an impending shortfall does not eradicateall complaints because not everyone will get the message. By


being open and transparent you are able to proactively reduce theexpectation levels of people relying on that road being open onthat date and thus reduce the amount of complaints. Reducingcomplaints has major benefits; in 2000 the cost of complaints fromfirst registering to final resolution was estimated at a staggering£8.3 billion (source: National Complaints Culture Survey).

How to predict a service shortfall

1 Look at planned staffing levels on projects against reality.Constantly assess whether you are likely to achieve the promisesmade in the original contract with the manpower available to you –actively look for problems that might emerge in the future.

2 Take account of the expectation level of the client.Does the client expect something that you are not able or willing todeliver? If so, clarify the situation as early as possible – activelymanage your client’s expectations.

3 Assess how the contract is progressing against the timeframeoriginally set.If time is slipping with no hope of getting back on schedule or if costsare proving to be a limiting factor – express these concerns with thecustomer.

4 Are outside contractors likely to affect your offering?Often third-party contractors have not been subject to the same stringentservice promises that you have – if their offering is about to affect thelevel of service that you promised, discuss the situation with all parties.

5 Review progress on a weekly or monthly basis to be awareearlier of any shortfalls in the service.Constantly re-evaluate the likelihood of achieving your service goals.

6 Look at outside elements for impending problems.Be aware of long-term weather conditions, likely industrial disputes,and any other elements that are out of your control.

Having looked at the checklist and established that problems maybe about to occur, the next step is to inform as many of your


customers or end-users as possible who may ultimately havecause for complaint. Identifying a service shortfall has no valueunless it is shared with the customer and unless all availableinformation is used to reduce the number of complaints.

When predicting service shortfalls you need to assess wherethe complaints may come from. A contractor may have only onecustomer, but that one customer may have hundreds or thousandsof customers relying on the contractor. It is important then, tohave a pledge with your customer to each inform as many of theend-users as possible in the event of a service shortfall. Whenconveying messages to people affected by the service shortfalls itis important to recall the rules of empathy, speed and honesty.One of the difficult scenarios in recent times has been strikeaction. Strike action will always generate a large amount of com-plaints. The general public will not always have sympathy withthe strikers and to show empathy with customers affected bystrike action is not always seen as being genuine. Therefore it isimportant to take on board, when trying to reduce complaintsthrough predictive methods, the overall effect that it will have onthe end-users.

ESTABLISHING TRANSPARENCY IN TERMSOF ORGANISATIONAL CULTURE

In many commercial organisations it is difficult to establish atransparency when the very nature and culture of the business isto protect proprietary information. For an organisation to sud-denly be open about its pricing policy, to be honest about itsshortcomings, to be clear about its productivity levels is often awrench that takes too much effort with a few tangible results.

It is necessary in the pursuit of service excellence to achieve a complete transparency in the B2B market. In the B2C market a level of transparency is required, but this is quite different from the total openness that is necessary in the B2B market.Transparency is achieved through individuals as well as through


corporate cultures. Trying to persuade your account director tobe open with a customer and divulge information about yourmargins, commissions and delivery expectations when this mightprejudice a sale is a very difficult proposition. Likewise gettingyour designer to collaborate with your client can also be a difficultsituation. This secretive culture has to be overcome, and often it isthese individuals within an organisation that make the change toa service culture more difficult. Transparency with your customersis one of the first steps to reducing complaints; it is a complaintmanagement tool even though it is not always seen as such.

WHEN TO TELL THE TRUTH, THE WHOLETRUTH AND NOTHING BUT . . .

While it is beneficial to be as honest with your customers aspossible there are times when any organisation will admit thereexists a need to be economical with the truth. This does notmean to say that outright lies are ever acceptable but it does meanthat it is important sometimes to look at exactly what should be in the public domain. If there are instances where information isat your fingertips within the organisation that would be of nobenefit whatsoever to the customers who are complaining, thenit is perfectly acceptable for the information to be withheld. Oneinstance of this could be if flights are delayed because of an incidentat an airport relating to the threat of terrorism. The passengers arein no danger whatsoever; it is merely a precautionary measurethat flights be grounded for a short period. It is quite acceptablefor the ground staff not to tell the whole truth. The fear factorwould prevail and the customers could become unnecessarilypanicked – an avoidable situation. If, however, after a shortperiod of time it becomes obvious that the airport is not going toopen and flights are going to be delayed for an inordinate amountof time, then complete honesty is the best policy. It would benecessary to divulge the potential of the threats. Most customerswill feel relieved that they are not being subjected to flying from


that particular airport at that particular time. When to tell thetruth, the whole truth and nothing but, in terms of customerservice is ambiguous, but experienced customer service operat-ives will instinctively know. Another example of empowerment– give your staff the freedom to make judgement calls, and backthem up.

Another acceptable time to not necessarily tell the wholetruth is when it looks as though you are merely passing the blame.If, to use the airline analogy again, your customers are beingdelayed by a third party and to announce the truth would soundas though you are merely blaming someone else; it might some-times be better to fabricate a reason and take the responsibility.This engenders a receptive response from the customers, andkeeps you in control.

If an organisation (as opposed to an individual customerservice operative) is going to deviate from telling the whole truth,it is important that this is done corporation-wide. Complaintsoften come in through different channels, some by e-mail, someby phone and some face-to-face. Each different channel mustresult in the same answer being given. This is more complex tomanage than when the whole truth is being told. Communication,internally and externally, becomes a vital aspect; therefore it isimportant for any organisation to put in place procedures thatstate under what circumstances it is acceptable to deviate fromthe whole truth. The best policy is open transparency as pre-viously discussed, wherever humanly possible.

ADMITTING YOUR FAILINGS

This is always tough for any organisation. To admit you are wrong,to admit you have failed, to accept blame, is one of the most diffi-cult things to do – especially on a corporate level. The benefits ofadmitting your failings can be that many of the customers willempathise with you. (This is in complete contrast to your com-plaint handling where you show empathy toward them.)


Admitting that you are wrong can have major benefits. Thegolden rule, however, is to only ever be wrong or fail at the samething once. A company that is seen to admit its failings but notdeal with them is viewed as less than effective. The key is toknow when to admit your failings and this has to be when youcan deal with them and change them. To continually fail is anadmission of ineffectiveness.

As David Schreiber, president of Customer Relation Inc., ofthe USA, reported in Customer Management (July 2001), next toyour product itself, excellence in customer service is the singlemost important factor in determining the success or failure ofyour business. Successful companies understand customer needs.If a company needs to admit failure, it needs to change. Schreibergoes on to explain that companies fall into one of five servicecategories:

1 The non-existent servers – companies that take an ad-hocapproach to customer service. Companies who view customerservice and training as an expense. The ultimate is that thesecompanies are prone to lose market share and experiencedecreased profits.

2 The inconsistent servers – companies that are awake to theneed, but do not necessarily understand the magnitude of therequirement. Likely to put a band-aid on a very large wound.These companies repeatedly try to serve, but never quite getit.

3 The incapable server – these companies talk a lot about theservice they offer without offering the substance that isrequired. Employee relations are important as is repeatbusiness, but they never seem to gain customer loyalty. Com-panies in this category are less likely to admit that they havefailed.

4 The capable server – these companies do a whole lot rightand are always on the lookout for innovative ways of improv-ing service. Nearly everything they do is done with thecustomer in mind; this is reflected in profit and market share.


5 The superior server – these companies are the ones we alwayshear about, the ones featured in case studies, the ones thateveryone else tries to emulate. They understand their cus-tomers and their customers’ value.

COMMUNICATION AS A TOOL TO DEAL WITHDISGRUNTLED CUSTOMERS

Communication is the key to any complaint handling. Withtoday’s multichannel communications it is important to addresscomplaints through your customer’s favourite channel. Justbecause a customer chooses to communicate with you through acertain channel it is not fair to assume that this is in fact theirfavourite channel. Too many organisations today are assumingthat because a customer e-mailed their complaint, this is theirchosen communication channel. In many instances the truth isthat the customer has tried to telephone, got through to a callcentre and has waited in an automated phone queuing system fortoo long, decided that to write would not get the result quickenough and has decided to e-mail as a last resort. Findings fromthe National Complaints Culture Survey show that 73 per centof complainants prefer face-to-face or personal telephone resolu-tion to any other method.

When evaluating complaint levels (number-crunching) it isimportant to recognise that the same customer may have registeredher complaint multiple times. She may have registered on thephone, e-mailed to confirm a finer point, written to be sure thatthe complaint gets handled and faxed to illicit an instant response.An organisation needs to have a complaint handling system that iscapable of supporting the mission statement of the organisation.If you are promising to respond to e-mail communicationswithin three hours, your system needs to be geared up for thiseventuality. If you want to respond to phone calls within threerings, you cannot expect customers to be heartened to hear anautomated reply after two rings saying, ‘I’m sorry all our


operatives are busy on other calls at the moment, please hold theline.’ Automated systems have a place, but they need to bemanaged effectively.

Whichever channel of communication is chosen it is still neces-sary to empathise, be honest and respond eagerly. If communica-tion is by e-mail or SMS text message you must understand thatyou cannot put the same intonation into that communication. Ifit is by letter it is important that the letter tone is commensuratewith the corporate culture, but also understanding of the com-plainant’s need. Each medium needs a different emphasis but, as ageneral rule of thumb, a meaningful, swift response will win youfriends.

When communicating with a customer it is important tooutline to that customer what the precise level of empowermentthat communicator has. If for argument’s sake, the communic-ator has no power to refund this should be set out early on in thecommunication; equally if that communicator has no power toresolve the issue, that must be outlined also. However, in thesecircumstances it is important to question whether any communic-ator that does not have power is worthy of communicating withthe complainant.

The call centre can be a very effective method of complaintresolution. However, it can also isolate and alienate customers.Call centres generally fared badly in the National ComplaintsCulture Survey, both from customers and employees. Most cus-tomers see the call centre as separate from their supplier. Thismakes customers feel that they are not important enough to com-municate with the organisation, thus eroding the loyalty factor.In order to serve your customers to the best effect be prepared toopen channels of communication with them over and beyond thenorm for your industry sector. Remember, customer serviceexcellence doesn’t just happen. It has to be worked at.

Trying to encompass a service offering throughout an entireorganisation is not a simple task and should not be undertakenlightly. It is necessary to understand that each individual withinan organisation will have an individual way of dealing with a


given situation. To ensure that the communication that takesplace between individuals is consistent it is necessary to undertaketraining and to monitor the communications that are taking placeon a regular basis. This is done in call centres both electronicallyand manually and is a worthwhile practice to ensure that all com-munications emanating from your organisation are consistent.

When dealing with an incoming communication from aclient it is important to ascertain the true nature of the complaint.Too often there will be peripheral issues added and details that are not core to the complaint. A competent complaint handlerwould be able to cut through the superfluous information andattach importance to the key factors. This in itself ensures that acomplaint can be handled more readily. Never underestimate thevalue of communication. Even when it seems easier to put it atthe bottom of your ‘to do’ list, communication will always high-light the benefits for your organisation. If a complainer has takenthe time and made the effort to communicate with you that com-plainer wants to remain a customer of yours. Once the commun-ication has been made, the relationship is in your hands.

READINESS CHECKLIST

1 How do you measure your customer service levels?Devise a consistent measure (number of queries, complaints, thankyou notes, etc.) and benchmark. As time goes on you’ll be in aposition to measure against your own performance.

2 Are your internal communications processes good enough tobe proactive in dealing with customers?You need internal processes to be able to offer consistent, transparentservice. Do a dry run, call different departments/regions and enquirewhy a certain shortfall has happened – you’ll be appalled at thenumber of different answers you achieve.

3 Are your staff empowered?Unless you trust and empower your staff you will never be able toproactively handle complaints and reduce escalations.



4 Do you invite feedback/complaints?The amount of information that a complainer gives freely, whenanalysed and used properly, can be more valuable than marketresearch.

5 How transparent is your organisation?Transparency is not such a clear issue as the name implies. Opaque-ness may be a better analogy – letting the light in but blurring some ofthe picture. In other words, don’t take transparency too far and dis-close proprietary information.

Thomas Cook Retail


Nature of Business: Travel


Specific Challenge: Maintaining and enhancing services whileundergoing a change of management and change of com-pany ownership.

Overview of Action: The issues faced by Thomas Cook Retailseemed to emerge simultaneously, and various challengescalled for considerable effort from the customer servicesteam. Some of the challenges included third-party actions,such as tour operators not supporting the retail agents, andthe travel shops themselves not always understanding theethos behind the customer service strategy. This was coupledwith a large-scale overseas accommodation crisis, whichincluded health and safety issues and time restraints, whencustomers were at the airport before being advised ofproblems with their bookings. One specific service shortfall

CONTINUED . . . Thomas Cook Retail

during this period occurred when a group of 26 passengersbound for Cyprus to attend a wedding missed their flight astheir ferry from Ireland the previous night had been delayed.To compound the problem, the insurance policy whichwould have replaced the flights had been issued incorrectly.Some of the lessons learned were:

� Teamwork winning through;� The strength of the team’s negotiating skills saved the

company money;� Hard work and determination achieved the right result

for the customer;� How a calm approach to a potentially volatile confronta-

tion diffused the situation;� The understanding of the importance for all employees

to be familiar with the products that they offer.

Outcome: Within a few hours alternative arrangements weresuccessfully in place. All passengers arrived in Cyprus, laterthan expected but in time for the wedding and fully insured.The customer thanked Thomas Cook for their assistance,saying how impressed he was with the level of service.

Key points:

�� Understand the power of negotiation.�� Empathise with customer in their dilemma.�� Admit errors when at fault.�� Be prepared to negotiate with your competitors to satisfy

your own customer.



The Capita Group


Nature of Business: Professional support services


Specific Challenge: To address service quality issues whilemaintaining links with a client company.

Overview of Action: One of Capita’s customers is BBC In-formation. Letters to the company are handled by Capitaand a quality response is scheduled to take five days or less.The BBC receives specific mail, forwarded from Capita’smailroom direct, on a regular basis. The BBC was concernedthat some mail was taking an inordinate time to arrive. Capitachecked its internal system and discovered that it was effect-ive, and mail was being dispatched in time to meet expecta-tions. They then decided to investigate the courier companyused. At each stage of the elimination process liaison betweenthe company and customer took place. The customer’sassistance was enlisted in monitoring arrival dates and times.Keeping them informed at every stage of the process forgeda stronger relationship between customer and the company.A review of the content of responses has also been under-taken and a reorganisation of staffing has resulted. Capitaholds the belief that world-class customer service excellenceis within its grasp, anything less is not quite good enough.Key actions that aided success were:

� Teamwork leading to innovative solutions;� Continuous communication and involving the customer;� Adopting a ‘can do’ approach to all challenges.


CONTINUED . . . The Capita Group

Outcome: The organisational changes have enabled Capita toclear a backlog of mail that had accrued during the invest-igative period. The methodology and thinking behind themeasurement of a quality service was radically overhauled toreflect the customers’ values. As a result, customer satisfactionrose from 59 per cent to 87 per cent quarter on quarter, andremained equally high for the remainder of the year.

Key points:�� Enlisting customers to enable complaint resolution;�� Review of procedural activities;�� Continuous measurement of quality service;�� Attribute importance to every individual complaint.

CHAPTER 8

REPUTATION MANAGEMENT

Managing an organisation’s reputation is a strategicfunction and has to be managed with a top-down approach. Thereare endless influences that affect the reputation of an organisationtoday, and a coherent approach to these ever-changing dilemmasmust be forthcoming. A couple of the most common dilemmasfacing businesses today are stock market values and action bythird parties. There is a growing incidence of industrial action insome sectors and this will have an adverse effect on the reputationof the organisation. The art of achieving effective reputationmanagement lies in being able to balance the reality of the actionswith a need-to-know approach with regards to your customers.In the late 1990s the doyens of business were ‘brand recognition’and ‘brand awareness’; in the early 2000s it is becoming clear thatthe new business doyen is ‘reputation management’. To enablean organisation to effectively manage its reputation, the functionhas to be the responsibility of one particular department (usuallypublic affairs), and with a senior ‘corporate reputation officer’,preferably at board level. This helps to promote a joined-upapproach to the relationship with press, media and other external

contacts. With public affairs taking charge of the external reputa-tion of the organisation, it will also enable the organisationthough internal communications to convey the same message toits employees. These employees can then take the good newsmessage out to the customer and ensure that the reputation isdamaged to the least possible effect.

EXECUTING EFFECTIVE DAMAGE LIMITATION

When bad news befalls a company, the knock-on effects can besubstantial. Clever management of the external publicity at thispoint in time and, subsequently, the reputation of the organisa-tion is an intrinsic part of getting the organisation back on aneven keel. Naturally the best way to avoid ruining the reputationof an organisation is to ensure that service levels never falter. Thisis somewhat unrealistic, due in part to various third-party factorsas we have already discussed, and also the improbability of main-taining 100 per cent service output. Having a well-established setof criteria of how the organisation wishes to conduct business,perhaps clearly defined in the corporate mission statement, willenable the organisation to conduct its business in a way that is lesslikely to attract negative publicity. When it is time to announce aprofit warning or a shortfall in production levels, it needs to bestage-managed to ensure that the messages conveyed are not mis-interpreted as a failing. In political terms this is known as spin.And with such high stakes to play for in terms of stock marketvalue and sales it is a useful tool to use when conveying poten-tially negative messages. Avoid the implication that you might be‘burying bad news’! Don’t release profit warnings on days whenyou know world events will reduce the impact. This is seen ascynical and can have a devastating effect on your reputation.

Reputation management implies that an organisation has areputation worth protecting, which in turn implies that theorganisation is doing a lot of things right. Once the strategy sidehas been dealt with and the public affairs department has issued its


messages, the real responsibility of reputation management oftenfalls on the service personnel’s desk. Dealing with the customerson a day-to-day basis affords the CSR an insight into how themessages from the company are being interpreted by theiraudience. Often they are either lost on the customer or are inter-preted in a multitude of different ways. Therefore the servicedepartment must have a direct feed into the public affairs depart-ment to ensure that the content of the messages is interpreted in aconsistent way corporately. If service personnel are able to offerwords of wisdom to customers, which go further than the officialannouncement in the press, then the customer is likely to feel thatthey are party to independent information, although the informa-tion is far from independent. The important thing to remember is that a strategy must exist and the worst-case scenario beimagined, so that the strategy can be implemented swiftly as soonas is necessary.

HOW TO DISTANCE YOURSELF FROM THIRD-PARTY ACTIONS

Most commercial enterprises rely on third-party services at somestage through their normal business practices. An airline will relyon ground handling agencies; a car manufacturer will rely on steel-works; an insurance company will rely on agents, and so forth. Theresult is that these third parties’ behaviour impacts on yourbusiness, which can detract from your reputation. As a matter ofcourse, organisations should include in any contract disclaimersand guidelines of how the relationship should be managed. Thisis especially true where the third party is using your organisation’sname, logo or brand. While these overriders and conditions maybe inherent in a contract, the actuality of ensuring that they areadhered to at all times is not easy.

When a third party’s actions have impacted on your reputa-tion, you must recognise that your responsibility is first and fore-most to your customer. The customer will not be interested that

R E P U T A T I O N M A N A G E M E N T 109

the third party is at fault. They would far sooner know how yourorganisation is going to rectify the problems. While blame culturecan often lend itself to ‘passing the buck’, this does precious little toendear your organisation to your customer. Make certain not totake full responsibility for something that is out of your control. Ifyou are able to convey this to your customers without appearingto be moving away from liability, then the situation is beingmanaged in a very positive way. As market research indicates,lack of knowledge is one of the major problems for a customerwhen a service failure occurs. When it is a third-party failure it isparticularly difficult to convey the right amount of knowledge tothe customer without losing that customer’s belief in your cred-ibility.

If a ground handling company suddenly has a wildcat strike, itis no consolation to the airline passengers, for example, to hearthat without further explanation. Those airline customers needto be told the facts and that the airline is going to assist in which-ever way it can. The airline customers subsequently feel that theairline is doing all that it can, without the airline necessarilysolving the problem. The customer also feels that the airline istaking responsibility even though it is a situation that the airlinecannot control.

Empowered service personnel will have the ability to assesson an individual basis how much information any particularclient needs to know. They are also excellently placed to placatecertain customers and make them feel that they are offering thebest possible service. Where the service personnel are empoweredto such an extent that they are able to offer certain inducementssuch as complimentary goods or drinks vouchers, etc., then thispersonalised service helps to ensure that the reputation of the air-line is not damaged. It means situations can be dealt with instant-aneously without reference back to line managers or head office.It also means that psychologically the customer is already think-ing about the good things about the airline rather than the bad.Third-party failures are a learning ground for organisations.Often it is only when you are faced with a service failing that you


make provision for it. As an organisation it’s important to bewilling to learn from other people’s mistakes and implement thefindings.

COMMUNICATING WITH CUSTOMERS WHENYOU ARE POWERLESS

It is far easier to relate to customers when you have something tobring to the table. It is far more difficult to communicate whenyou have nothing to offer, or are powerless to change the situation.Given this situation the magnitude of the problem can quicklyincrease. The obvious resolution is still by empowerment, butthere are instances where empowerment will have no effectwhatsoever. In such instances the best policy is absolute and totalopenness. Your approach to the customer must be transparent,and you must be honest about your inability to rectify the situ-ation. The customer will most likely be more forgiving whenexposed to this level of transparency. The most effective commun-ication, in this instance, would be to state at the outset that thereis nothing that you personally, or the organisation as a whole, cando to remedy the situation at present.

Show empathy towards the customers for the inconveniencethat is being caused to them. Show concern to them wherepossible. Research whether there are other agencies that can help,or whether there are phone numbers that people can use. Assist,wherever possible, in procuring for the customer outside helpand make it readily available to them if possible. Even thoughyou may be powerless to rectify a service failing, you still have the ability to present the organisation in a positive and efficientmanner. While it may not be necessary to assume total respons-ibility, it is imperative to accept responsibility for the elements forwhich you are responsible. This falls under the umbrella of trans-parency and openness, which must be forthcoming from theentire organisation, not just individuals. This is a clear example of the need for a strategy agreed at board level that can be


implemented at any given point when a service failing is identi-fied, and the organisation is powerless to deal with it.

An example of this: after a bout of severe weather, a completepower failure occurs because overhead cables have been damaged.In this instance, the energy company is unable to restore normalservice and cannot offer clients anything other than empathy. It isreally important that the weather be cited as the cause, but it isalso imperative that any CSR reassures customers that everythingis being done to rectify the situation. This assurance has to havesubstance. It must never be a throwaway line. A good CSR willexplain that there are however-many teams working on it (andbe specific), and will offer a realistic estimated time of restorationof service and be precise about all information provided. Theclient will remember this high service level and will feel that theyhave been dealt with as an individual and also as an importantcustomer. The CSR, in these instances, must have access toinformation such as emergency numbers, national floodline, trafficinformation, and so forth.

While the CSR is powerless throughout the communicationin terms of rectifying the service faults, they are never reallypowerless in terms of being able to offer advice and help tocustomers. The more thought that is given to a possible situationarising, the sooner and more comprehensively can the organisa-tion reduce the damage to its reputation.

HOW COMPANIES ARE ADDRESSING THIRD-PARTY ISSUES

Different organisations will deal with third-party relationships indifferent ways. If an organisation is confident that its third-partysuppliers are capable of offering a service that is unlikely to fallbelow certain standards, then the relationship just evolves andexists with no special measures put in place. Some other organisa-tions using third parties will try to take a certain amount ofownership of that organisation. Ownership here is not necessarily


in financial terms of buying shares, but in terms of branding andtrying to create synergies between the client company and thethird-party company. This works exceptionally well in terms of ajoined-up approach to services being offered, but it becomes verydifficult if the third party conducts its business in a way that ispotentially damaging to the client company’s reputation. Becauseof the created synergies, the customer tends to think of the twoorganisations as one. This is the aim of the companies, and is finewhen everything is working. It is only when a disruption or dis-pute arises that the customer has cause to see the differentiation.

Another example of how some organisations are dealing withthird-party relationships is franchising. This has a very positiveeffect for the client organisation because much of the marketingand customer-facing communications are carried out by thefranchisee. However, the downside is that in the event of thefranchisee not performing exceptionally well, the reputation ofthe client company is also damaged. It must be clearly recognisedthat by giving responsibility or power to a third party, an organisa-tion also gives over control. If the third party abuses that controlthe client company suffers. Another popular method beingadopted, as an alternative to the company writing really intricateand excessively difficult service expectations into the contract, isthe third-party contractor becoming a partner. Partnering lendsitself to both parties aiming for the same ultimate goal.

An advantage for the organisation is that the third party isnormally an organisation of much smaller value; therefore theytend to be subservient to the client company. The value of thecontract afforded by the client company is usually such that it willelicit the best possible working practices, which in turn willenhance the relationship.

THE EMERGENCE OF CUSTOMER UNIONS

To compliment the apparent professionalism of the customer service sector, customers are becoming more organised and


sophisticated in their approach to purchasing in the new economy.Some would argue with the premise that there is a ‘neweconomy’ as the drivers remain the same and the profit motiveremains the endgame. A company is still in existence to make aprofit and the two core elements of that business are staff andcustomers. The customer becoming more sophisticated inapproach to purchasing is an interesting challenge for organisa-tions. The ‘stack ’em high, sell ’em cheap’ formula is fast becomingobsolete. Organisations are being forced into becoming moresophisticated in how they serve their customers.

The World Wide Web was the first exponent for what is nowevolving into customer unions. Several buyers were urged tocommunicate via Internet, discuss their needs and then buy thesame product, in bulk at lower unit cost. This process is verysimilar to the customer unions that are beginning to evolve now.The power that well-organised customer unions would yield isimmense. If an effective customer union can buy in bulk and driveprices down, squeezing margins can have a devastating effect.

The best way that an organisation can counter this trend isfirst of all to recognise the existence of it. The power and sig-nificance of customer unions needs to be appreciated and astrategy formulated to maximise the opportunities as they evolve.Customer unions are mainly driven by digital communications.The Internet and the Web will be the communication vehicle of choice, the impact of a group of like-minded customerspurchasing goods and services through a union or membershiporganisation ensures that they can buy more ethically and this willmake them powerful and lucrative customers. They will have theability to punish companies that are not performing in themanner that they would like to see. Due to their use of the Web as a communication channel, they will also have first-handknowledge of how that company is performing, who its customersare and the ethics associated with the business.

Customer unions are currently in their infancy but are provingto be valuable customers to any organisation able to harness theirexplicit demands. As their power grows and they become more


sophisticated over time, they will be recognised as the paymasters.Companies will have to be more able to react to customers’demands. Customer unions will grow from today’s customercommunities where smaller groups of like-minded people arepurchasing similar products and actually driving the markets.Their power could easily assume significant proportions, and theimpact that they have on commerce could be the next ‘neweconomy’. The pursuance of excellent customer service now willafford certain brands the ability to become umbrella organisationsfor customer unions.

There are several brands of which any one could embrace thereality of what is happening and bring about an effective customerunion by itself. This can only be borne from an organisation thatalready offers excellent customer service, a brand that peoplebelieve in and trust. If enough like-minded people believe in andtrust an organisation that is willing to obtain whatever goods andservices that its customers need, then the customer union underthe brand umbrella can successfully emerge. The full impact ofcustomer unions may take potentially two decades, but there arecertain supporters of the customer union concept who believethat it is inevitable.

READINESS CHECKLIST

1 Are your external communications robust enough to defendcriticism?Reputation management starts long before a crisis. As soon as youstart a meaningful process of external communications the reputationmanagement machine should be in place, underpinning all your com-munications.

2 What reputation are you trying to manage?Carry out precise market research to see if your perception is the sameas your customers’ perception of your company. It could transpire thatyou are putting a lot of emphasis on reputation management, withouthaving built a substantial reputation to begin with.



3 In time of crisis are you economical with the information yourelease?Transparency is a virtue, but there are times during crises when less ismore. Never tell the whole truth if that is going to impact negativelyand give the impression that you are passing the buck. Review youremergency plans and implement damage limitation processes forthird-party actions. If, however, you are powerless to pull the situ-ation round revert to total transparency and openness.

4 Do you undertake regular complaint analysis?To secure your reputation you should analyse complaints and start toeradicate repetitive causes for complaints. Pulling out data and usingit will help fashion your service offering and build your reputation.

5 Can you identify your best customers and differentiate yourservice to them?Undertaking customer segmentation and offering a semi-personalisedservice will help to protect your reputation, especially to the all-important top 10 per cent. Make sure you have a strategy, implementit and stick by it.

Travelcare

Type of Company: Co-operative society

Nature of Business: Travel agency


Specific Challenge: To overcome customer dissatisfaction withinsurance policies being sold by the agency.

Overview of Action: Changes in the insurance policy beingsold meant some customers’ claims were being turneddown. Customers had 14 days to assess the suitability of thepolicy, but many were not studying the fine detail. The

CONTINUED . . . Travelcare

problem was identified on monthly reporting and was soonrecognised as the highest reason for complaint. A trainingsession was immediately devised and sent to all branchesaddressing the main changes within the policy. The com-pany assumed the responsibility of making the customersaware of changes affecting insurance cover. Customer serviceteams are motivated by clear direction, training, support and guidance. In identifying this particular problem anddesigning a training strategy to address it, the teams havereduced the amount of incoming complaints. Actions result-ing from this challenge were:

� Face-to-face meeting between manager and complain-ant;

� An agreed course of action;� Instantaneously solving the problem;� Dispatching training corporate-wide.

Outcome: Exceptional customer service and attention todetail resulted in complainants recognising service levels and becoming satisfied customers. The organisation becameaware of the need to incorporate different methods of train-ing across the entire company.

Key points:

�� A satisfied complainant remains loyal.�� Learn from service shortfalls and share the information

with the entire organisation.�� Take responsibility for third-party actions where you can.�� Communicate changes internally.



The Boots Company




Specific Challenge: To streamline the customer service offer-ing with a consistent approach to improve service levels.

Overview of Action: The customer service department identi-fied that there were over 800 standard letters of variablequality in existence. A much smaller basic set had beenwritten three years earlier, then more and more added overtime, resulting sometimes in mutant versions creeping in.To streamline the service offering involved training withthe Plain English Campaign; a small project team thenreviewed and rewrote the whole suite of standard letters,starting with those most frequently used. This work wasthen reviewed by the Plain English Campaign and agreedbefore being used by the team. It was later found that theaccuracy of data input was compromising quality of report-ing. To combat this, small workshops were held withadvisers to explain the data cycle and its importance to thebusiness. Finally, the integration of several additionalbusinesses to the company and customer service operationencompassing third parties – such as EGG, bootsphoto.comand wellbeing.com – had to be handled. The service depart-ment became proactively involved in the early stages tocreate a customer handling strategy and escalation route.Exchange visits were arranged to help build relationships;project groups were formed to identify needs and overseethe implementation of key actions. Key actions that aidedsuccess were:

CONTINUED . . . The Boots Company

� Recognition that streamlining of outgoing letters wouldassist consistent service;

� Early recognition that third parties needed to embracethe service ethic;

� Corporate-wide understanding that service is an import-ant area of business.

Outcome: The service department made the shift from a sup-port department handling individual customer complaintsto one that works in partnership with other business teams.The department is now able to anticipate and avoid prob-lems rather than just solving them.

Key points:�� Collaborative approach to solving service shortfalls;�� Standardisation of outgoing communication aids consist-

ency of service.�� Prioritising communication can lead to customer satisfac-

tion.�� Reputation management improves customer retention.


CHAPTER 9

MANAGING EXPECTATION

An organisation that is in an advanced stage of achievingcustomer service excellence must begin to address the question ofcustomer expectation. In the early stages customer expectation is easily managed. A company embarking upon the customerservice excellence journey will find it can exceed its customers’expectations simply, easily and regularly. However, when thatcompany achieves consistently high levels of service, manage-ment of expectation becomes far more difficult. The customer’sexpectations undoubtedly grow and as the expectations grow, sothe service levels are seen to diminish. This need not be the case,but unless the customer’s expectations are effectively managed itwill be near impossible to continue with the same service levelsand the same customer belief in the product.

In order to effectively manage customer expectation it is vitalto know the customers’ behaviour patterns. Customer behaviourpatterns will vary from customer to customer but there are somenorms and established behavioural patterns that are worthy ofnote. Successful management of customer expectation will paydividends for any organisation. To offer a consistently high service

level will ensure that your customer churn is kept to a minimumand that your staff turnover will remain low. Often companiesfail to recognise that the expectation of the customer is increas-ing, thus complaints grow and staff morale diminishes. All thetime, effort and expense that have been invested can be under-mined and, in some cases, totally wasted.

CUSTOMER SERVICE EXCELLENCEINCREASES EXPECTATION

Just as a dream is only a dream until it becomes reality, so customerservice excellence is often only perceived to be service excellencewhile it remains unexpected. When service excellence is expectedit becomes the norm and when it becomes the norm it is hard tomove forward, both for your customers and your staff. Under-standing your customer’s psychological behaviour in the pur-chasing process will enable you to have a deeper understanding ofwhat triggers the process and how best to offer the exceptionalservice on a one-to-one basis. In a retail scenario this is imprac-tical purely because of the numbers and the different psycho-logical make-up of your customer base; however, in a B2Benvironment quite often your customer numbers will not be vastand therefore that psychological understanding will make a dif-ference. To help organisations to evaluate which category ofcustomer that you may be dealing with on a regular basis, theRevised Values and Lifetime Table, known as VALS-2, hasbroken consumers down into eight easily defined categories. Ofcourse, it is recognised that this is by no means a complete, totaland foolproof solution, yet it enables organisations to focus onspecific traits, which their customers display. The eight consumertypes as segregated by VALS-2 are as follows:

1 Actualisers – these represent 8 per cent of the population andare the most affluent and successful people. Within this band,Actualisers are often consumers with high self-esteem, ample


resources – both financial and psychological – and woulddefinitely fall into the A1 category in the socio-economicscale.

2 Fulfillers – those recognised as Fulfillers represent 11 per centof the population and are generally people over 30 who valuequality and knowledge. They are likely to be responsibleadults, well-educated, practical in their outlook, who look forand sometimes demand value and quality in their purchases.

3 Believers – some 16 per cent of the population are known asBelievers. These people tend to be high on principles,conservative, although having strong beliefs based on tradi-tional values. Typically Believers are professional people whoare aware of their quite considerable purchasing power. Thesewould probably fall into the B1 and B categories in the socio-economic scale.

4 Achievers – slightly fewer than Believers in terms of percent-age of the population, representing just 13 per cent. These aremore the nouveau-riche consumers who have high levels ofincome, successful careers and give the impression that theyare in control of their immediate situation. Their self-image isimportant to them and they favour products that wouldreflect their success. They tend to be slightly younger thanFulfillers and on the upward part of their career ladder.

5 Strivers – again representing 13 per cent of the population,these are people who are generally concerned with the opinionand approval of others (‘keeping up with the Joneses’). Theyare said to be easily bored, impulsive, desire to be stylish andcopy those who have possessions and vision that they them-selves do not necessarily possess.

6 Experiencers – 12 per cent of the population, Experiencers arepeople who are full of life and have experienced the unusual.They are predominately young, enthusiastic and impulsive.They seek variety and excitement and will probably just beExperiencers as a transient part of their development as con-sumers, striving eventually to become Achievers and finallyon to Believers. Politically uncommitted, they buy avidly.

M A N A G I N G E X P E C T A T I O N 123

7 Makers – represent 13 per cent of the population and areaction-oriented, but with lower levels of income. Theynormally live within a family environment and have no realunderstanding of the value of material possessions. Theyoften buy because of a need, rather than desire.

8 Strugglers – represented by 14 per cent of the population,these consumers tend to be cautious, loyal to their favouritebrands and probably buy from the same shopping basket con-tinually. They are unadventurous in their purchasing andhappy to shop in the ‘comfort zone’.

Recognising these traits in your customers can enable you tolook inside their psyche and commit your service levels to thosemost productive elements that will have the most productiveoutcome. Discovering what it is that makes your particularcustomer buy from you is the first step to offering excellent cus-tomer service. If you know that your customers are buying underduress or extreme tension (such as funeral services, or barristers)then the ability to relieve your customers’ tension is paramount.If you can ease the burden that your customer is experiencingwithout increasing the tension, you have achieved great cus-tomer service.

If, on the other hand, your customer is looking for excite-ment and thrills ( such as holidays or leisure pursuits), in order tooffer great customer service you will have to satisfy those expecta-tions and indulge in the ‘adrenalin rush’ with your customer. Ifyour client has asked for a destination with activities then youwill have to appeal to the excitement and sheer buzz of yourclient in order to offer great customer service. The aim is for thecustomer to feel good about the experience of dealing with yourstaff. The organisation must pitch the level of psychologicalunderstanding just right.


CUSTOMER SERVICE EXCELLENCE BECOMESTHE NORM

It is often very difficult to avoid the scenario where customerservice excellence becomes the norm. Quite often, it is not evennoticed by an organisation that the great service that they areoffering is perceived by the customer as just ‘ordinary’. Whenthis occurs it has usually festered over a long period of time. Theeffectiveness of the service offering diminishes and the effortbecomes worthless to the organisation. To avoid great servicebecoming the norm, it is important to make sure that yourmission statement reflects precisely what your service levels areexpected to be. If you can continually exceed the stated level ofservice, you are well on your way to creating the ‘wow’ factorand stopping your service levels being seen as the norm. Beingaware, at all times, of your customer needs as opposed to theirexpectations also leaves you in a strong position for offering greatservice.

If you dissatisfy a customer by not reaching their expectation,the likelihood is that you can still recover. If, however, youdissatisfy your customer by not meeting their basic needs, you arelikely to lose them for good. Making sure that you never addressexpectation above your customer’s needs is imperative and is arule that must be adhered to across the corporation. In the questfor great customer service it is important to realise that greatcustomer service can come only after the basic need has beenaddressed.

SHOULD SERVICE BE PAID FOR TO REDUCECUSTOMER EXPECTATION?

There is a groundswell of opinion that advocates ‘open’ chargingfor customer service. The strongest part of the argument is borneby the fact that many see subliminal, hidden charges already being


made and feel that transparency is the best option. Subliminal orhidden costs are often the premium that can be charged whencustomer loyalty has been fostered and service levels established.Many loyal customers will not baulk at a small premium – in factsome, especially those falling into the Achievers and Striversbrackets in VALS-2 above, would react positively to paying apremium. Often higher costs can be viewed by a customer as anexclusivity precursor ensuring that lesser mortals are unable topartake of the same service. However, if a charge was to be ‘open’and clearly identified as a ‘fee for the exceptional service’, thelikelihood is that the customer expectation would rise in leapsand bounds, making the charging of a ‘fee’ almost impossible tosustain.

Looking at the restaurant trade where ‘service charges’ are a regular feature could be a microcosm of wider industry as awhole. If a diner feels that the service he receives does notwarrant the amount of the ‘service charge’, he is highly unlikelyto refuse to pay it. The probability is that the service charge will be paid, but the customer will not return to that particularrestaurant. If this were to be replicated across industry as a wholebecause of the adoption of a transparent ‘service charge’, theamount of customer churn would be horrendous, making amockery of the entire system. If an ‘open’ charge is to be made tofund customer service excellence it must be done in a way thatembraces the customer and makes him feel that he wants to con-tribute. Until such a way is discovered it is likely that service willgenerally remain ‘free’ at the point of contact.

REDUCING EXPECTATION CAN LEAD TOREDUCTION OF CUSTOMER CHURN

In some circumstances it is possible to scare customers away ifyour service levels are neither consistent nor needed. As we havealready discovered the needs of a customer must precede any


other service level, so offering a service that does not satisfy thatneed can add to customer churn. Any inconsistent service whereit is neither ‘always good’ nor ‘always average’ will also often lead to customer attrition because your customers must feel com-fortable in dealing with your organisation. When they comeface-to-face with your company, your customers have an expecta-tion level. This level of expectation, if not upheld by the organ-isation, will lead to the customer disappearing. This can evenhappen if customers receive haphazard excellent service. Byhaphazard we mean an inconsistent service that sometimes fallsbelow the levels expected by the customer, but at other timesexceeds those levels. Remember, your customer must feel com-fortable; he must know what to expect when dealing with yourorganisation. Consistently average service can be better thaninconsistent good service.

If your company is unable to offer consistent high servicelevels from the outset, then it is wise to ensure that you loweryour expectations as an organisation; offer service levels slightlybelow those that you are ultimately aiming for, and be consistentat them. If that means extending your customer service excel-lence programme by another year or two, then so be it. It is farmore valuable to ensure that you retain your customers byoffering them a consistent service than it is to strive for somethingover and above what your current business processes will allowyou to deliver. Again it is important to ensure that your missionstatement and the service levels inherent in that dictate that acertain degree of consistency exists. This will have a twofoldeffect: on the one hand it will ensure that your customer careoffering is manageable, consistent and easily maintained; and atthe same time will offer exceptional service to those who areexpecting the lower level of service. In this way, your customerswill feel comfortable with the service levels because they knowwhat to expect, they will occasionally experience the ‘wow’factor, but all the time you will be promoting customer loyalty.Because of your ability to address their needs and to service themin a way that they expect, they are likely to stay with you. When


you finally raise the expectation level, and in your revised missionstatement say what your service levels will be, then you need tomaintain those levels consistently, while at the same time aiminghigher.

HOW ORGANISATIONS ARE DEALING WITHCUSTOMER PERCEPTIONS AND CHANGES INEXPECTATION

Certain organisations today, especially US, Scandinavian and afew European companies, are looking at ways of putting the cus-tomer in the absolute forefront of their business. Perceptions andexpectations are changing and will continue to do so, so some ofthe forward-thinking companies and leaders in the field are look-ing to make the customer the centre of everything they do. Thisgoes back to customer-centricity as we discussed in Chapter 1.How they are achieving this is by subliminally stating – via TVadverts, external and internal communications, press releases andso forth – that their customer service offering is more importantthan the product that they are selling. An interesting case in pointis TXU Energi (UK-based US multi-utility company), whorecently rebranded from being Eastern Electricity. It is fair to saythey are one of the forerunners of customer service excellence,and in their attempt to maintain service levels beyond the norm, arecent TV advertising campaign was about going the ‘extra mile’.This is illustrated by an off-duty TXU Energi employee beingasked directions to an address; the employee says she will draw amap and proceeds to draw a very detailed, explicit map for theoccupants of the vehicle. She then says that if they can’t find itwithin 20 minutes to call her on a specific phone number and she will refund them some money. The message, be it subliminalor otherwise, is that customer service at TXU Energi is on thebalance sheet. They are dealing with the changes in perceptionsand expectation by ensuring that all operatives are aware that


poor service will cost money. Several organisations are workingin a similar way in trying to promote the fact that the customer ismore important in a lot of respects than the product itself. To citethe TXU Energi advertisement again, at no stage is it absolutelyclear that TXU Energi are trying to sell you electricity; thereforethey are selling their customer service.

Other companies will deal with perception changes in adifferent way. Take the example used in Chapter 7 where thechief executive of a rail company felt unable to address a letter to his customers with ‘Dear Customer’ and addressed the letter‘Dear Passenger’. The upside of that situation was that thenational press took hold of it and recognised what that particularCEO had done. He had dealt with the situation in such a waythat he was actually reducing the customers’ expectations; he wascalling them passengers rather than customers so that he couldstart afresh with them and rebuild the relationship. He was in theslightly enviable position of knowing that his operation was aquasi-monopoly and that those passengers/customers/clients/travellers – call them whatever you will – were in a large partunable to use another service.

There are myriad ways of adjusting your organisation’s normalbusiness processes to take account of changing customer percep-tions and changes in expectation. The aim is to alter your processesin such a way as to achieve a win-win situation. The very fact thatan organisation is looking to adapt its normal office practices to take account of customer perceptions is a step in the rightdirection; therefore it is good for the customer. It is also good forthe business and for the employees. Employees must know thatthe organisation that they are working for really does value its customers. An organisation that really values its customers willreally value its employees. Some other examples of how cus-tomers are being dealt with and their ever-changing needs,perceptions and expectations are highlighted in the case studiesthroughout this book.



READINESS CHECKLIST

1 How often do your customers experience the ‘wow’ factor?If customers experience the ‘wow’ factor fairly regularly it is time tostart to manage their expectations or dream up (even) better ways ofserving the customer base. Their expectations are growing and thebenefit to your organisation is in danger of diminishing.

2 Have you effectively segmented your customers?Dealing with separate segments is more manageable and more bene-ficial. Managing the expectations of your most valuable customers isoften a ‘labour of love’, such are the resultant benefits.

3 Does your mission statement clearly set out service levels?Do not confuse your mission statement with a ‘customer charter’.Ensure that customers know what to expect when dealing with yourcompany, then aim to exceed it.

4 Do your customers feel comfortable dealing with you?It is imperative that customers know what to expect. A consistent,clearly defined service offering (of mediocre standing) is better for thecustomer than inconsistently great service that is ad hoc.

5 Do you have a customer-centricity plan?If you are not putting customers at the very heart of the business it islikely that you might struggle to manage expectations because you’llhave a more fragmented picture of your overall client base, and youwill probably be using too many assumptions and not enough data.

International Rectifier Company (GB) Ltd


Nature of Business: Semi-conductor manufacturer


Specific Challenge: Providing extranet capability to customersthat make up 80 per cent of annual revenue.


CONTINUED . . . International Rectifier Company(GB) Ltd

Overview of Action: To establish the company at the forefrontof e-commerce it was necessary to communicate the exist-ence of the new extranet channel; achieved by newslettersbeing sent to every customer. The customer was thenencouraged to visit the web site. Thereafter presentationswere given to account managers at each of the Europeanzone sales meetings and then presentations given over theWeb to customers who were not met on a face-to-facebasis. The extranet was also advertised and promoted at anygiven opportunity in the course of normal business. One ofthe early lessons, soon after implementation, was that eachcustomer has a different expectation. The company developeda series of enhancements, enabling them to offer value-addsthat the customer may not have recognised as a require-ment. Key actions that aided success were:

� Getting the basic content right at the start;� Avoiding treating all customers the same, customising

where possible;� Promoting to the correct people internally;� Being clear and concise in expressing goals;� Making it clear that technology is there to enhance the

performance of employees, not to replace it.

Outcome: Established a channel for most valuable customersand achieved closer communication with this importantsegment. The implementation of the extranet has benefitedthe customer service department, reducing queries by up to70 per cent.

Key points:�� Communicate internally and externally the changes being

made.


CONTINUED . . . International Rectifier Company(GB) Ltd

�� When implementing IT systems ensure you inform every-one of goals.

�� Publicise the benefits internally so that employees feel theyare part of process.

�� Set clear goals and be sure of which customer segment youwant to attract.

Powergen plc


Nature of Business: Electricity and gas generation, distribu-tion and supply

No of Employees: 11 742

Specific Challenge: To offer customer service support todesignated key account.

Overview of Action: The deregulation issues surrounding theutilities industry created several challenges for many organisa-tions in that sector. The ability to sell electricity and gas as onesupplier, together with the separation of the generation, dis-tribution and supply businesses was a major change forPowergen. One service shortfall in particular resulted inincorrect billing, which subsequently led to large debts accu-mulating for a key client. Powergen appointed a customerservice advisor to the key account and the actions under-taken were:

CONTINUED . . . Powergen plc

� Liaison with the client and an action plan decided upon;� Exchange of data surrounding the amount of sites being

billed;� Billing suspended until the action plan was completed;� Internal company liaison between departments to alter

billing;� Action plan devised and backed up in writing.

Outcome: With empathy and the application of good servicedelivery practices, the relationship between Powergen andthe client company prospered and loyalty was fostered.

Key points:

�� Empathise with customers to display understanding.�� Manage customer expectation by delivering on promises.�� Differentiate through service by appointment of designated

agent.�� Engage other departments to enhance service offering.


PART I I I

CHAPTER 10

EMPOWERINGCUSTOMER-FACING STAFF

In order to gain true competitive advantage through effectivecustomer service it is vital that customer-facing staff are em-powered properly. Undertaking a programme of ‘empowerment’is something that must be done in depth as well as breadth. Eachperson must feel that the organisation is giving them real powersthat enable the staff member to make a difference. For an organ-isation to roll out such a programme will mean an intensivetraining regime for everybody. It will also mean developing aclearly defined outline of what powers each individual will have.The training must take account of any culture changes within theorganisation, and must also highlight the benefits the organisa-tion is trying to achieve. Each individual has to know that thepart that they are playing is important and has a knock-on effectfor the entire organisation. Having undertaken the training pro-gramme it is wise to reward each of those completing it witheither a certificate or other tangible award. This will engender afeeling of achievement for the staff who will then be keen to testtheir newly acquired skills.

The company must be committed to letting go some of thepower that it holds. To empower staff is a major step for anyorganisation that is not necessarily familiar with yielding power.All decisions made by the empowered staff subsequently must bedefended by management, and must be seen to be right. It isincumbent on the company to ensure that the level of empower-ment is pitched exactly right: too much empowerment and theprofits can start to drain; too little and it is viewed as tokenism.Just the right amount of empowerment presents an enviable win-win situation.

HOW EMPOWERING STAFF IMPACTS ONSTAFF RETENTION

‘Empowered staff are happy staff.’ This statement is largely true.If you can effectively allow your staff members to take ownershipof various situations on a day-to-day basis within their normalworking rules, they are likely to be energised by that prospect. Ifyou can achieve that across an entire workforce then you arebuilding a level of staff loyalty that is invaluable. Reducing staffchurn is a beneficial business process being sought by manyorganisations. The costs of appointing recruitment agencies, advert-ising in the newspapers, training and some of the hidden costsassociated with recruitment are all reduced through effectiveempowerment. Retaining staff who might normally defect toeither your competition, or another organisation out of yoursector will enable you to develop your service offering to agreater level because of the experienced staff that you have; themore experienced your staff, the more capable they are in dealingwith enquiries; they will be more capable of dealing with com-plaints in a way that your orgainisation wants them to. Therefore,staff retention – which is enhanced by empowerment – increasesnot only the profitability but also the customer service level andthe image that your organisation portrays.

Oddly enough, in certain instances true empowerment can


emerge through management doing absolutely nothing. Take theexample of operatives repeatedly arriving late for work: if themanagement do nothing but observe, a truly empowered organ-isation embracing the teamwork ethic will make the errant workers feel an obligation to make up for lost time. The obliga-tion may not be to the organisation – in many instances it will beto the rest of the team – but the obligation will exist, and by doingabsolutely nothing, the company has empowered that team tocreate a working environment that is fair, justified and beneficial.This example does express the exception rather than the rule butclever manipulation of your staff and your processes will enableyou to reach a level of empowerment without any great difficulty.

HOW EMPOWERMENT IMPACTS ONCUSTOMER RETENTION

Customers coming face-to-face with an empowered member ofstaff know that they have come face-to-face with an empoweredmember of staff. The impression this creates for the customer isone of total comfort. If your customers feel comfortable in thepresence of people from your organisation then they are likely toremain loyal. Should you then encounter a customer who has aproblem or a complaint, the likelihood is that the first member ofstaff that they consult will, in the majority of cases, be able to dealwith that query. This is invaluable to a customer, as all customershave various tensions affecting their buying decisions and alsohave various needs that the purchase must solve. Being able toease the tensions and solve the needs with the first contact is arecipe for success. Even if a problem is beyond the remit of theempowered staff member, provided that the staff member takesownership of the problem until it is handed over and solved by amanager, the customer can still feel satisfied. If the first person isempowered to leave her work station, or to take longer to dealwith a particular customer’s problem, then that empowermentwill serve to make that customer feel extra special. The customer

E M P O W E R I N G C U S T O M E R - F A C I N G S T A F F 139

who experiences the ‘wow’ factor (as we have already discussed)is a customer who is likely to talk about your service levels totheir friends and effectively become part of your own sales force.

Empowered staff who go the ‘extra mile’ are continuallyincreasing the stakes for customer service levels. This is a valuableexercise and ensures that service levels are continually rising and expectations continually growing. Ultimately people buyfrom people, they do not buy from organisations. Therefore, ifempowering staff has increased staff retention, the customers willexperience the feeling that they are dealing with the same people.This will increase the likelihood of sales because of the ‘comfortzone’ that has been created. Truly empowered staff will have theability to make the customer feel special in one way or another at every opportunity. This in turn will lead to loyalty from thecustomer who, if he is receiving great customer service, is notgoing to look elsewhere.

They become brand-loyal through your customer-facing staff.This is a process that cannot be manufactured nor purchased. Itmust be built and once built, must be maintained. If you have, asan organisation, achieved this brand loyalty where people buyfrom you because of the service levels they receive, you caneffectively charge for good service. As an empowered organisa-tion you can set your costs at a marginally superior level to that ofyour competitors, without fear of losing custom. Your customersare experiencing great service – the fact it costs them a smallpremium is offset against the feel-good factor created throughyour empowered service. Naturally this has to be within reasonand your pricing mechanism should not reflect a major differenceto your competitors.

In summary, empowered staff are able to take ownership ofproblems, offer the ‘wow’ factor to customers, offer great serviceand make the customer feel valued. Making a customer feelvalued is appealing to his psychological state, easing his tensions.Supplying customers’ needs is the ultimate aim of any organisa-tion and empowered staff represent the only realistic way toconsistently offer the best possible option.


HOW TO EMPOWER STAFF AND TO WHATLEVEL

The level to which staff should be empowered is a decision thatmust be made in the boardroom. The impact of empowered staffis an unquantifiable risk at the outset and therefore must, wherepossible, take account of all eventualities. Empowering staff to issue refunds needs management; it also needs a recognisedcorporate-wide level to which refunds can be authorised byindividuals. By the same token, it is important to teach those staffthat a refund is not necessarily the best customer service that canbe offered. If a client is dissatisfied with a purchase to such a degreethat a refund is demanded, that customer is likely to defect toanother manufacturer. If, however, a refund is demanded but adifferent outcome results through the staff member’s empower-ment the customer is likely to be saved. If the CSR is sufficientlyempowered, instead of opening the cash register and losing thecustomer, she may be able to tweak the service level agreementand waive a ‘call out’ charge. This would result in the customer’stensions being eased – and the sale remaining solid.

Rolling out empowerment across an entire workforce meansthat nothing can be left to chance. To assume that everyonewithin your organisation is capable of working with initiative is simply leaving too much to chance. To effectively empowerstaff, the organisation must undertake a programme of initiatingthose staff to the company’s core values. Core values of anorganisation will in many ways dictate the level of service that will ultimately be offered and the degree to which empoweredstaff will undertake their decision-making. If, for instance, thecompany core values focus on ethical business practices, theempowered staff member is unlikely to do anything that isunethical or likely to be seen by her peers as unethical. Thetraining programme to initiate all staff to the company’s values isintegral and should be undertaken early on in the process.

‘Treating others as you would like to be treated’ is a mantrathat should be on the agenda of everyone rolling out an empower-


ment programme. It is one of the most simple yet realistic ways ofexpressing what empowerment can mean to an individual andalso to an organisation. It is wise to take heed of the warning thateach member of staff is an individual and will interpret servicelevels and empowerment in a different way if guidelines areabsent. Therefore it is necessary to simultaneously developguidelines, yet these guidelines must not be so strict as to makeemployees feel that their job description is merely changing.They must feel a true sense of empowerment, and this is wheretrust between the organisation and staff comes into play, in a bigway.

A valid way of achieving these particular tasks is to set eachindividual or department a level – financial or product unit –which they should not be allowed to exceed. To put this intocontext, let us assume that currently an employee has no empower-ment whatsoever. Five of her best customers discuss their dis-satisfaction with specific elements of their last purchase. All shecan do currently is say, ‘I take on board your comments, I’ll passthem up the line and get back to you.’ If, however, there was alevel of product units or an amount at her disposal each week,then she could choose to either replace one or two of theproducts or refund some of her clients and deal with the situationto her best advantage. The knock-on effect is that her immediateline manager has nothing to do with this decision-making process,and therefore is free to continue his management functions. Atrue win-win situation for all those involved; the customers are satisfied that they have received individual service and theemployee feels that she has been able to use her initiative toachieve the best result for her company.

BUILDING STAFF CONFIDENCE TO ENSUREOWNERSHIP OF COMPLAINTS

Instilling confidence in staff will only happen with a top-downmanagement approach. Each individual with new powers will


need to know that those powers, and the subsequent decisionsmade using them, will be supported by management and by theboard. An organisation reaching this stage of service develop-ment sometimes fails to understand the importance of beingconsistent in its approach to empowered staff. If the staff memberfeels that her decision is likely to be undermined or judged, itbecomes harder for that operative to make the decision. In thisinstance, the customer fails to receive the best possible service.The consistent approach, with cleverly designed parameters, willpromote the best and most comfortable atmosphere for oper-atives to perform in. A customer will always sense when theperson dealing with him is truly empowered for, just as there aretensions in the buying process that need to be addressed, so thereare in the selling or service process. Those tensions are reducedby experience and expertise, but they are also vastly reduced byempowerment.

To introduce a set of standard expectations across an entireworkforce can be costly and time-consuming, but the cost andtime are resources well spent. There is no value in approachingempowerment piecemeal. It is necessary to highlight to theoperatives the value of their empowerment; this will help tobuild their confidence within any given situation. When they cansee the benefits both to themselves and the customer, they willfeel empathy towards the customer and they will feel a strongsense of achievement. As this achievement grows and becomes avaluable part of their day, so the messages required to instill con-fidence will also become part of their day. So training should bean ongoing exercise as well as a precursor to the adoption of theprocess.

DEVELOPING A SET OF DISCRETIONARYAWARDS

In virtually every walk of life you will eventually come across the‘What’s in it for me?’ syndrome. Service is no different. Therefore


it is wise to build in a series of incremental awards for peopleundertaking new service responsibilities. This does not necessarilyhelp to build confidence in your workforce, but it does help toeliminate any feelings against adoption of the process. Incrementalawards need not be cash (although cash is an acceptable currency).Incremental awards can be part of a bonus system and could evenbe developed so that peers of the recipient nominate them. Thepeer system tends to engender fairness and an ethical undertakingof the service offering. It is the peer system of offering contrib-utory awards that allows the company to feel confident that theservice culture is real and not just tokenism. If cash awards arebeing offered for good service then the service levels may lacksincerity. Service without sincerity is rarely excellent customerservice. In many ways the whole process is a psychological trade-off between the customer and the service provider. Some of themost successful awards programmes give those excelling incustomer service the opportunity to visit other organisations thatare standard bearers for service nationwide. This can often besomewhat of a ‘busman’s holiday’, but the sharing of best practicein customer service is something that is exceptionally valuableand hard to obtain. The benefits to the organisation of an awardsystem is that the recipient of the award experiences best practiceand will bring that knowledge back into your organisation, andfoster those experiences, and hopefully implement them as partof your daily practice.

From a corporate point of view, being part of this awardprocess can ensure that people from other organisations offeringexcellent service attend your premises and benchmark their servicelevels against your own operation. The certification of staff com-pleting training courses and on-going service recognition for theefforts of your staff will pay dividends. Most staff will appreciateadding their certificates to their portfolio, especially as at thisstage of development you have not necessarily fostered loyaltyfrom those staff. The very fact that you are issuing these variousincremental awards and taking this ‘excellence’ stance willencourage your employees to remain loyal to your organisation.


Other awards such as ‘time off in lieu’ can be beneficial to ensureadoption of the new strategy. ‘Time off’ is a tangible benefit andfrom an organisational point of view costs very little. From themanagement perspective it is vital at all times to remain aware ofthe ‘treat people how you would like to be treated’ mantra.Undertake some research throughout your organisation to findout what it is that customer-facing staff would really appreciate.Then employ it.

DEFINING EXACTLY HOW LONG THAT ‘EXTRA MILE’ SHOULD BE

Excellent customer service really shouldn’t have a boundary. The reality, however, is that boundaries are needed across anorganisation as we have already discussed. Defining how long the‘extra mile’ should be will almost work in inverse proportion tothe size of an organisation; therefore, the bigger the organisationthe shorter that ‘extra mile’ often is. Conversely, if the organisa-tion is small, that ‘extra mile’ can really extend for a very, verylong way. Much of the reason for this is trust. In a small organisa-tion with a manageable workforce trust from management iseasily gained. Managers will know which, if any, of its staff arelikely to abuse the system in any way. They will also know thosemost prone to offering excellent customer service and also have abelief in them in terms of their behaviour. A large organisation hasthe difficulty of personalities and individuals who have differingservice expectations and therefore differing service offerings.

In a large organisation it may be necessary to put blanket rulesin place, such as restrictions on employees leaving the premises or using the telephone. This blanket regulation will limit theempowerment to the staff but it will also ensure that abuses arenot costly to the company. It should be remembered that whileone customer is being offered excellent service, if it leaves the restof the workforce stretched, then maybe more customers are notreceiving even a basic level of service. This is a balancing act that


has to be addressed, and the larger the organisation the stricter theregulations need to be. In many instances the ‘extra mile’ willevolve. This happens when an organisation aims to offer itscustomers the ‘wow’ factor, and finds itself experiencing the‘wow’ factor because of the actions of its own employees. Again,it is good to have discretionary awards to highlight and magnifyacross the corporation the efforts of these particular individuals. Itwill also help to define, subliminally, service level expectationsacross the corporation; if you are rewarding an individual forgreat service you are telling the rest of the workforce that this isnot yet the norm.

The cash value in customer service is tangible, but the cashvalue of a service operative is not. It is necessary to be aware ofthe cost associated with great customer service, and these costsare not always as clear-cut as an hourly rate. For a particularoperative to go the ‘extra mile’ can sometimes mean refunding aclient, offering alternatives or new replacement parts, and thecost of this can spiral. It is important for the organisation to lookat ways of limiting the cost element, while at the same time givingservice personnel the freedom to exceed these levels only inexceptional circumstances. Not an easy management task but onethat should be undertaken and clearly defined before rolling out acustomer service excellence project.

READINESS CHECKLIST

1 Are your customer-facing operatives empowered to deal withyour customers?Real empowerment means trusting your staff; educating them to thinkof the customer and company first; simultaneously, making your stafffeel that they make a difference.

2 Do your staff have transportable skills and evidence of thoseskills?It is foolhardy to believe that all your staff will turn out to be ‘lifers’(25-year servants). In order to empower effectively, you need to train



effectively and reward generously. Staff may stay longer if they havetangible evidence of their achievements (certificates, merit awards,etc.).

3 Have you set clearly defined parameters in which your staffshould work?Empowerment is about rules. Give staff responsibility and support,but ensure they know how far they can go, and are able to clearly seethe line that must not be crossed.

4 Are your customers loyal?People buy from people. So, the longer you can retain staff the betterchance you have of retaining customers. The longer customers staywith you, the better your chances of building loyalty.

5 Do you have a competitive edge?With the competition breathing down your neck, your service levelscan easily set you apart. Yet, if an organisation is content to stand byits hierarchical principles it could easily fade in its standings. Clearlydefine the aims and gains from rolling out an empowerment strategy.

Currie & Brown


Nature of Business: Professional services within constructionindustry


Specific Challenge: To become increasingly integrated withclient company while committed to obtaining best results.

Overview of Action: Currie & Brown deliver a quality profes-sional service to GlaxoSmithKline and the aim is to guaranteesuccessful project delivery and complete customer satis-faction. The projects undertaken are varied and challenging,


CONTINUED . . . Currie & Brown

ranging from construction through to overseeing final snag-ging. Customer service is measured through various internalsystems, with members of user groups, engineering, securityand various other internal departments benchmarking eachproject manager, following completion of a given project.The self-assessment by project managers is an opportunityfor good and bad elements to be discussed. During a projectrequiring drilling works a medium pressure gas main was hit,sending a gas cloud 30ft into the air. The project managerwas required to remain at the site to ensure that thecustomer’s best interests were met. This involved dealingwith emergency services, local authorities, the Health andSafety Executive, Transco and several internal managers. Inorder to ensure the customer was completely satisfied, theproject manager stayed on site for 12-hour shifts for theremainder of the week, during which time the gas supplywas reconnected, all parties were kept informed and allissues were resolved on site. This level of customer focus iscommensurate with the overall aspirations for Currie &Brown. Key actions that aided success were:

� Project manager being empowered;� Constant communication with all interested parties;� Involvement through to resolution.

Outcome: Currie & Brown remains committed to movingtowards complete integration with its client and enjoys con-tinued success. The emphasis on service is a differentiator,and enables communication between the organisationspromoting a collaborative approach to the projects in hand.Increased use of the intranet as a means of communication isa direct result of project managers reviewing their internalprocesses.


CONTINUED . . . Currie & Brown

Key points:

�� Self-assessment and self-appraisal highlight service levels.�� Collaborative approach increases customer buy-in.�� Empowerment equals commitment.�� Multichannel communication should be investigated.

WHSmith



No of Employees: 15 000

Specific Challenge: To enhance already high standards ofcustomer service.

Overview of Action: WHSmith prides itself on customerservice and has considerable experience in this field. A recentservice shortfall resulted in a protractor being sold by thecompany that was not accurate or precise, and left a marginof error of up to two degrees. A customer’s daughter hadused the protractor in a GCSE exam and therefore wasextremely irate that this product could be sold by WHSmith.To overcome this problem the examinations board wascontacted to inform them of the issue, and to see if anyaction could be taken to affect the results. The product wasremoved from the shelves to minimise the risk of repetition.Through the loyalty card system anyone who could be identi-fied as purchasing this item was contacted and informed of its

CONTINUED . . . WHSmith

inaccuracy. The GCSE examining board agreed to re-markpapers if they were affected. From an internal perspectivethe quality control team held a forum to discuss the issuesraised and a new process was designed. Key actions thataided success were:

� Committed personnel who want to excel;� Empowered staff have ability to use initiative;� Inter-departmental belief that customer service is an

important function;� Allowing ownership of queries and having sufficient

human resources.

Outcome: No other reported instances of examinations beingtaken with faulty protractors. Customer was satisfied that theexamination could be re-marked. Internally, the customerservice department achieved a closer relationship with thequality control team and built empathy between the twodepartments.

Key points:

�� Widen internal communications wherever possible andplausible.

�� Have sufficient staff to allow individuals to see queriesthrough to conclusion.

�� Empower individuals and teams to the extent that they canhave an effect.

�� Allow customer service department to present training toother areas of the business.


CHAPTER 11

SERVICE PERSONNELADOPTING THE SALES ROLE

The very reason that a company is in existence is to sell itsgoods or services. Every component part of that company shouldbe involved in this process in one way or another. The reality,however, is that organisations can become departmentalised andoften the raison d’être is overlooked. Many accounts departmentsbelieve their function is to keep the books straight, just as manymaintenance departments believe their role is to have a tidyworkplace. The reality, however, is that the accounts are there toensure the financial health of the organisation in order that it cancontinue to function, and continue to sell. The maintenancedepartment is there to ensure that the selling can take place in asafe, clean environment. Ensuring that your service personnelunderstand the sales role to which they can contribute is a neces-sary function and a valuable resource worth harnessing. When acustomer makes contact with your service personnel, especiallyin the event of a complaint, that communication is a springboardfor sales. The customer service representative should know that acomplaint managed well will inevitably lead to customer loyalty.

Service personnel should also be trained to look for the cross-sellopportunity, while the service department’s understanding of its role can bolster up-sell opportunities, deriving true financialbenefit and competitive advantage from excellent customerservice.

A SATISFIED COMPLAINER WILL REMAINLOYAL FOREVER

The most damaging type of service failure is one that is notbrought to the attention of the organisation. When a customersuffers service failure and walks away without telling the company,that customer has gone forever. It is important and necessary toencourage dialogue between the customer and the company. If, asan organisation, you can encourage dialogue (especially through avalid complaint mechanism where you can capture valuable data)you are giving yourself the opportunity to put right and amend anyshortcomings in service levels. Furthermore you are enabling yourorganisation to retrieve a potentially damaging situation and topresent the complainant with exceptional service. If you can offerthe complainant exceptional service at any stage in the relation-ship he is likely to remain loyal forever. It is vital for an organ-isation to recognise that a customer has the ability to just walkaway and need not give a reason for never returning.

In many instances, the confrontation aspect (the idea ofcausing a scene) leads people to accept poor service and to votewith their feet and not use the organisation again. Any organisa-tion would prefer to have those service shortfalls highlighted tothem so that they can address them, and subsequently satisfy thatcustomer and retain his custom. The difficulty with attractingcomplaints is that too often the process is seen as superficial. Touse the restaurant example again, it is now common practice forrestaurateurs or their staff to attend the table mid-meal and ask ifeverything is ‘OK’ with the meal. The primary reason for this isto avoid complaints rather than to encourage them. This is where


the perception of lack of sincerity shines out. If, however, thestaff were to ask at the end of the meal before presenting the billthe diners would get a feeling of increased sincerity; because at that stage it could not be misconstrued as the company tryingto avoid a complaint. The sincerity would shine through ascustomers would feel capable of entering a dialogue – not some-thing they can do with a mouthful of asparagus tips! In fact, if theservice or the product is really not up to standard then thecustomer will complain whether they are asked mid-meal or atthe end of the meal, and this is also true of every other industrysector.

Another service-orientated sector that attempts to indulge indialogue with its customers is the hotel industry. In this instance,upon arrival in your hotel room you are presented with a ques-tionnaire to complete. This method is badly flawed because thedialogue is only one-way. The visitor to the hotel may happilycomplete the service card and because there is no chance of con-frontation be more scathing and vitriolic than necessary. Thehotel captures its data, but the customer (who should be at thecentre of the process) rarely gets any feedback. This style of one-way dialogue is not conducive to making the customer feel thatthe service provider is genuinely concerned about the level ofservice for the good of the customer. Too often it is interpreted,and perhaps rightly so, that the service card is for self-appraisalwithin the organisation alone and serves no greater purpose tothe wider public.

Staff who can genuinely deal with a customer’s complaint tothe point of satisfactory resolution will undoubtedly be em-powered staff. The customer who complains to one member ofstaff and has that complaint resolved immediately will feel: first,that the complaint was justified; and second, that the organisationis working in an efficient and professional manner. The loyaltywill grow and that customer becomes a very valuable asset to theorganisation. In many instances the best recommendations comefrom customers who have suffered service failures and felt the needto complain. Often it will be how the complaint was handled that

S E R V I C E P E R S O N N E L A D O P T I N G T H E S A L E S R O L E 153

is the essence of the recommendation. Therefore, if a complaint isdealt with effectively and meaningfully the handling of that com-plaint can often outstrip the normal service levels of an organ-isation for impact. This is not to advocate purposefully creatingcomplaints but that your complaint handling must be exceptionalat all times.

CROSS-SELL AND UP-SELL OPPORTUNITIESWITH A SATISFIED COMPLAINER

Service personnel play a key role in the overall sales ability of an organisation, because they regularly enter into dialogue withcustomers. This dialogue is often deeper and more transparentthan the normal sales dialogue. This is particularly true in theretail sector. A member of staff dealing with a complainant willdiscuss issues, policies and various other elements of the businessprocess with that customer in depth, not something generally dis-cussed during the sales process. Once it is sensed that thatcustomer is satisfied that the service shortfall has been dealt with,a selling opportunity presents itself. Identifying the selling oppor-tunity, whether it’s a cross-sell, up-sell or new sale potential, isnothing short of an art form. It is difficult for an organisation totrain people to identify these opportunities without being seen asbeing cynical, yet it is something that empowered service person-nel will automatically see as an extra element of their serviceoffering. The fact the complainant has taken the time and energyto make the complaint shows a willingness to continue therelationship with your organisation. The staff member taking thatcomplaint, dealing with it effectively and being empowered tohandle the situation should then have the confidence, when the opportunity arises, to sell more products to that particularcustomer.

Returning to the principle that customers have tensions andneeds affecting their buying process, the same can be said of thecomplaining process. These needs and tensions are different from


those of the buying process, but in many respects a complainanthas the same psychological drivers as a willing buyer. Once thecomplaint is resolved they are more likely to be open to theprospect of buying, especially if those particular tensions and needshave been dealt with. Organisations need to beware, however,that a ham-fisted, unprofessional approach to cross-sell and up-sell opportunities to complainants will leave the organisation witha damaged reputation and fewer customers. The whole processneeds to be handled with care.

It is in these situations where the level of empowermentgiven to the CSRs really makes a difference. If the customerservice personnel are only empowered to make a refund, then thelikelihood is that when a complainant voices their concernsimmediately they will be offered a refund, and the dialogue willcease. In this instance, much of the benefit is lost. If the servicepersonnel are empowered to use more initiative or have a widerrange of powers, the possibility is that when the complainantvoices their concerns, other options besides a refund will beexplored. A deeper dialogue will be entered into, which ulti-mately can lead to the emergence of cross-sell or up-sellopportunities.

Because of the complex nature of complaint handling manyorganisations still believe a complaints department or a customerservice department is the best way to handle these situations.Forward thinking organisations and leaders in the field know that empowerment brings altogether more satisfactory results.Empowering all customer-facing staff will enable a joined-upapproach to putting the customer at the centre of your business.

HOW TO GAIN A 360-DEGREE VIEW OF THECUSTOMER

In order to effectively gain a 360-degree view of your customeryou need to know exactly what a customer is. The dictionarystates that a customer is a person who buys goods or services, but


it is derived from the word ‘custom’, which has a definition of aparticular established way of behaving. In pursuit of a 360-degreeview of a customer, it is likely that the organisation will haveidentified established behavioural patterns of interaction. For theorganisation these patterns will form strategies and in extremecases will change sales policy.

The next important aspect of achieving a 360-degree view ofyour customer is to know what motivates a customer to buy. It iswidely understood that there are two main motivators, which areenergy and direction. The act of physically buying somethingtakes energy and the drivers that produce the need to buy put thedirection in place. Understanding the reasons why your customersbuy is another part of the 360-degree view. Some will buy as adiversion from routine; some will buy purely for the exercise ofgetting out; others will buy to accommodate a particular need;some will even buy through peer pressure. Understanding themain drivers behind your client’s behaviour will enable you toserve them better in the longer term.

The final part of the 360-degree view is to understand theunderlined intentions and needs that your customers have andput these at the forefront of your service offering. If you liken a360-degree view of your customer as an all-encompassing circle,with the customer in the middle, each time the customer isinclined to move away from you, he is confronted by a soft arc,which directs him back into the circle of your customer service.This will help to give a visual idea of what that 360-degree view means. To understand precisely all elements of customerbehaviour becomes more difficult if you have multiple customers,as in the retail sector. If, however, you operate in the B2Benvironment, the likelihood is that you can quite easily get anunderstanding of all the needs of your key customers, you will beable to assess how your products or services fit into the overallscheme of the customers’ businesses, and you can tailor yourservice to best meet those needs. Now you can offer value addedelements, which will be received well by your customer and beaccepted as exemplary service. Most organisations will only


endeavour to have a 360-degree view of their top 10 per cent ofcustomers and, as we have already discussed, the top 10 per centcan often represent 120 per cent of profit; therefore it is worth-while for any organisation to try to establish the 360-degree viewof this segment.

IDENTIFYING WHEN A CUSTOMER ISSATISFIED

Identifying when a customer is satisfied during the complaintresolution process is a very precise art and a very imprecise science.When you get it right the results are spectacular; if you get itwrong the results can be disastrous. This is because the only timethat a selling opportunity exists during a complaint resolution iswhen the customer is totally satisfied.

If the customer is not completely satisfied and you try to sellto him, you will fail miserably. So how do you identify when acustomer is satisfied? The first indicator is often body language.Body language is a very important part of complaint handling, inthe same way that it’s an important part of the selling process.Normally, when a customer is complaining the body language issuch that it indicates tensions and it indicates a certain amount ofangst. This can be seen either in posturing where the customer islooking physically aggressive, or it can be seen in the folding ofthe arms where the customer is slightly insecure because of hisdiscomfort about complaining, but also displaying a closed andunapproachable demeanour.

When the customer’s stance and body language are morerelaxed, you can start to look for signs beyond that, which are signsthat he is now satisfied. This can be in language; it can be words ofagreement, nodding and various other affirmative actions. It isnecessary, however, to be absolutely certain that the customerisn’t only feeling comfortable and agreeing with a particular pointof issue. You must establish that he is satisfied and comfortablewith the service. Service personnel can promote this by asking


direct questions: ‘Are you happy with this?’ ‘Is there anythingelse I can do for you?’ These are valid ways of openly asking thecustomer whether you have reached the point in the dialoguewhereby he is satisfied with the outcome. You are giving him the opportunity to say no, but you are not leaving it as openquestions, whereby he can give you other alternatives. Closurehas to be sought, but the complaint has to be dealt with com-pletely before any attempt at closure should take place. It isimportant that the CSRs remember that the customer com-plaining has tensions and needs and the needs must be satisfied.

When a customer’s body language and his vocal contribu-tions to the conversation indicate agreement, then servicepersonnel dealing with that customer have the opportunity torecognise that various other opportunities exist. Until that pointis reached the mantra has to be ‘safety first’. It should always beremembered (and part of your normal business practice) that aneffective complaint receiver would take details from the com-plainant including name, address and contact details.

If the sales opportunity does not present itself at the initialpoint of complaint or for any reason the service operative is not satisfied that agreement has been reached and that satisfactionhas not been reached, then a follow-up opportunity can existbecause the details have been taken. When details have beentaken and a follow-up is necessary the same cross-sell and up-sellopportunities will present themselves as soon as agreement fromthat complainant has been reached. It must be understood thatnot every complainant will become a loyal customer whoincreasingly buys more from your organisation. You must beprepared to lose a certain amount of custom through complaints;therefore it is necessary to address each complaint individuallyand look at your service offering to assess how best you canminimise the number of these and their possible repetition. Trainyour staff to look for that level of agreement and look for the sales opportunity because complainants are giving you a secondchance. You must recognise and be conscious that any com-plaint, written or verbal, is the customer showing a willingness to


remain loyal to your brand or product and effectively giving youanother opportunity to do better.

INTERDEPARTMENTAL COMMUNICATIONS:INTERNAL COLLABORATION – A VITAL LINK

Petty internal squabbles about ownership of customers can leadto missed opportunities. These missed opportunities can have aserious negative impact on an organisation; therefore it is neces-sary to ensure that there is sufficient and regular communicationbetween the departments and an atmosphere conducive to col-laboration. If the sales department is ‘precious’ about ownershipof customers, the likelihood is that they will either underminethe service offering or it will be construed that the service person-nel are undermining the sale. Either way, the shortcomings of thesituation result in the customer getting a less than ideal serviceand the organisation not maximising the customer’s lifetimevalue (LTVs are dealt with in detail in Chapter 5). An organisa-tion that has a clear understanding of customer needs, which hasput the customer truly at the centre of its processes, will not sufferfrom the examples shown above. Sadly, however, too manyorganisations still operate in a way where customer ownershipissues are still prevalent.

To offer the best possible customer service it is necessary tohave internal communications and internal processes clearlydefined. If the organisation is such that it must give ownership of the customer to a particular department, then the internal col-laborative approach really must be identified and adhered to. Thebest way to achieve this is to put the customer at the centre of allcommunications internally, use the customer as the third person,explaining precisely why the process has to be done the way you,as management, are stating it must be done. It is in this arena thatcustomer relationship management (CRM) systems are really ofbenefit. If every communication with a customer is logged, thatdata can be referred to so there is little or no crossover. Too many


instances exist where a customer is dealing with the servicedepartment regarding a service query and the sales departmentcontacts the customer for more sales.

Referring back to the previous point, where getting agree-ment from a complainer is a necessary process before you can sellto him, if the sales department is unaware that the customer isdealing with the service department, then they will not be able tosell effectively – and the relationship and image that the customerhas of the organisation can be damaged. CRM systems are only apotential tool to deal with this situation. Even the most high-techCRM solution needs human intervention and is still reliant oninput from each of the departments. Therefore, collaborationmust take place, even if the physical communications exist onlyin electronic format. Collaboration between sales and servicedepartments will really happen effectively only with the use ofexamples and training. Referring again to the ‘What’s-in-it-for-me?’ scenario, each separate department needs to see how theother is integral to achieving the best results for the organisation,for the customer and for the individual. An organisation that canshow true collaboration between sales and service departmentswith an effective internal communication system is an organisa-tion well on its way to achieving customer service excellencegoals. If you can add in an effective CRM system to that mix,then the probability is that this particular organisation will have avery good staff and customer retention level and all the benefitsthat this offers.

CAN SERVICE PERSONNEL SEE THEMSELVESAS SALES PEOPLE?

In the main, customer service personnel have no desire to be seenas sales people. However, they do have a desire to contribute tothe overall wellbeing of the organisation for which they work andthe customers they serve. The established values of most organ-isations dictate that there are distinct differences between service


personnel and sales personnel. However, as we have discussedalready, in a customer-centric organisation where the customerreally is at the centre of everything that the organisation does,those differences between sales and service start to become diluted.This in no way implies that service personnel wish to be seen assales people, but it does mean there are fewer stigmas attached toeach role by the other. Service personnel will always, regardlessof how much transparency is in an organisation, see themselves asseparate and different from the sales department. This differenti-ation can be minimised by the organisation with the implementa-tion of a customer-centric approach. A true customer-centricorganisation will pull all the strands of the process together so thatthe customer is the sole business driver. Service personnel willfeel the need to serve the customer in the best possible way; if thismeans looking for opportunities to sell them products they willdo so as a natural progression of the service offering that theysupply. The sales people will always sell to the customer butbecause the customer is at the centre, will sell to him for hisbenefit rather than for the benefit of themselves.

READINESS CHECKLIST

1 Can your CSRs recognise a sales opportunity?The company adapting a service excellence goal will have put thecustomer at the centre of the organisation and every member of theorganisation will look to sell. Selling product or selling service, everycontact with customers is an opportunity to build brand loyalty.

2 Do you encourage dialogue with customers?Without meaningful dialogue you are wasting your opportunity ofincreasing your knowledge base. Having an adequate complaintmechanism coupled with an effective data capture process will enablethe organisation to solve individual complaints while reviewingoverall service levels for all other customers.

3 Do you have a 360-degree view of any segment of yourcustomers?



Fully understanding your customers’ needs and desires will assistCSRs to assess the appropriate time at which to cross-sell or up-sell toa satisfied complainant. Having a clear image of behavioural patternscan help an organisation to assess the likely reaction of its customers toany given changes in service.

4 Do you welcome complaints or prefer not to have them?It is a small question but one with massive implications. No organ-isation wants multiple complaints, yet you must be open to receivinga certain number in order to tailor your service offering and to see whatyour most discerning customers expect. Remember: every complaint isa second chance so treat it as such.

5 Are your interdepartmental communications good enough?An easy way to lose customers is to give the impression that the ‘righthand doesn’t know what the left hand is doing’! In other words,giving mixed messages and disparate communications. Foster ajoined-up approach and clearly show all staff how this has a positiveeffect on customers; review internal communications and approach thecustomer in a collaborative way.

Siemens Communications


Nature of Business: Information and communication


Specific Challenge: To deliver consistently high levels of servicewhile changing the culture of the business from a manu-facturing base to a service base.

Overview of Action: Siemens’ traditional market of telephonyswitches was in decline. Future success was to be, in part,


CONTINUED . . . Siemens Communications

reliant on service delivery and solutions. Proactivity andnetworking were key attributes to some great service.Seeboard is a client of Siemens and its mobile phone contractwas due for renewal. Siemens agreed to negotiate on behalfof its client, utilising their expertise in the telephony market.Protracted negotiations ensued with all the airtime providers.Siemens reviewed the offerings and spent time physicallytesting the best phones, car kits and reviewing the call plans.The recommendations made to the customer resulted in a£500 000 saving over a two-year period. The customer was extremely pleased. Siemens’ mission statement is: ‘Tobe the BEST service organisation in the information andcommunication market as judged by our customers andshareholders against their performance criteria’ (capitals areSiemens, italics are the author’s). The transition from manu-facturer of switches to service providers is complete, and theservice ethos that the company has adopted is creditable.Key actions that aided success were:

� A customer-focused approach to client needs;� Manipulation of specialist knowledge to customer’s

advantage;� Commitment to go the extra mile.

Outcome: Siemens has since been awarded a contract todeliver all Seeboard’s IT procurement needs. The companyhas been able to reduce costs in other areas of the business,specifically the call centre operation, because of the lever-aging of the knowledge that Siemens bring to the party. Byputting its customer needs at the forefront of all businessdecisions, Siemens has emerged as the partner of choice forthe client.


CONTINUED . . . Siemens Communications

Key points:

�� Leveraging data/knowledge gives competitive advantage.�� Transitioning creates diversity.�� Excellent service can win new business.�� Measure your performance by others’ expectations.

AON Warranty Group


Nature of Business: Customer services, administration andinsurance


Specific Challenge: To achieve service level requirements andretain and win new business.

Overview of Action: In order to achieve the service levelrequirements the customer service department devised aseries of steps. These were: to create a vision; gain commit-ment; create a pathway; manage the process; build the team;and lead the way. Following these steps assisted in creating ateam that has input into the decisions that are being made.Staff have been given personal accountability and areempowered to make decisions to provide them with theincentive to avoid procrastination. Recognising the needfor a broad skill-base among all individuals and the use of asmany communication channels as possible are the corner-stones of how the organisation managed change. Consistent


CONTINUED . . . AON Warranty Group

service levels are met by an induction course for all newemployees. Key elements adopted to address this challengeincluded:

� Excellence – everyone should have a passion for excel-lence;

� Accountability – the need to set targets and the recog-nition of progress towards them;

� Teamwork – all colleagues should trust each other andsupport those in the learning process;

� Energy/change – change happens all the time and mustbe accepted; the enthusiasm for new ideas must beembraced.

Outcome: Consistent achievement and the exceeding ofservice level requirements. The retention and winning ofbusiness as a direct result of the levels of service achieved.The continuance of confidence-building among the team.

Key points:

�� Customer service can appear on the balance sheet.�� Pursue up-skilling and multiskilling of service personnel.�� Utilise multichannel systems in communication.�� Strive for a passion for excellence.

CHAPTER 12

CARING FOR YOUR CARERS

Customer service representatives, like any other employeesector within an organisation, have needs. While employeeneeds, as a whole, are dealt with through the normal terms ofemployment and recognised HR functions, it is worth remem-bering CSRs are often on the front line of the downside of face-to-face communications. It will usually fall on the shoulders ofthe CSR to be on hand to deal with the irate customer who iscausing a scene. The stress levels for the CSR in these incidencescan be exceptionally high, and therefore it is advisable to have inplace a system of care for your CSRs. The more that you care foryour people the more likely they are to care for your customers. Ifyou care for your people in a thoughtful, sincere and honest way,the chances are they will deal with your customers in athoughtful, sincere and honest way. Remember: you haveinvested in these people and they have adopted your companyculture; you cannot afford to lose them. Caring for your carers canbe a small process that pays large dividends.

AVOIDING JADEDNESS IN FRONT-LINE STAFF

When any job becomes repetitious there is a risk that the personperforming that job becomes jaded. This is one of the reasons thatassembly line staff have had their working practices reviewedtime and again. If somebody is working in manufacturing withheavy, dangerous machinery performing a repetitious task, it isvital that they do not become tired, bored, jaded or complacent.Therefore the working practices are altered so that those staffhave several breaks and sometimes have different tasks introducedinto their roles. While the role of the CSR cannot be likened tothat of an assembly line worker there can be instances of ‘virtual’repetition. Virtual repetition is when similar situations arise on aregular basis, the content may differ but the contact is the same.To the front-line CSR, dealing with the complainant who hasdifficulty with the delivery date or who has faulty goods is prettymuch the same emotional experience. If these experiences arerepeated on a regular basis then the probability of jadedness orcomplacency becomes very real. For an organisation to avoidsuch jadedness takes vision and foresight as well as effectivemanagement.

It is important that management look for emerging patternsto see if there is anything that can be changed about the organ-isational processes, thus reducing the influx of incoming con-frontations. As we discussed in Chapter 7, complaint manage-ment can effectively reduce the onslaught of incoming difficulties.Management needs to look for emerging patterns and to try tosteer clear of any increase in complaints. Naturally, you will nevereradicate all complaints and, because of the value of the data andthe opportunity that satisfied complainers offer, neither wouldwe want to. The CSR’s day must be filled with a sense of fun andexpectation rather than dread. Management should:

1 Take time out to discuss with individual CSRs the challengesthat they are faced with, either on a daily basis or at leastweekly.


2 Give the CSR the impression that you care – and live up to it.3 Empower the CSR to reduce the amount of jadedness

(because while the customer contacts can be virtually similar,the outcomes using real empowerment can be very indivi-dual).

4 If possible, supply a ‘chill-out’ room or area where CSRswho are feeling stressed can retreat to regroup their emotions.

5 If a ‘chill-out’ area is unavailable, perhaps instruct CSRs totake five-minute breaks after dealing with each individualconfrontational situation.

6 Implement an internal incremental awards recognitionscheme; encourage CSRs to vote for their peers.

Recognising the magnitude of the value of the work that front-line CSRs undertake, and highlighting this value across the enter-prise, will serve to make the CSRs feel integrated and pro-ductive. The more valued CSRs feel, the more effective they willbe. A positive way of communicating the value of the work thatthey do is to use examples of ‘what if’. Ask, ‘What if this customerhad not come to your CSR?’ Then list the possible outcomes,and finally highlight what actually happened because that customer‘came to your CSR’. These are good news messages, which willspread through your enterprise and will serve to make your CSRfeel less jaded and more valued.

AVOIDING INCONSISTENT SERVICE LEVELS

Establishing clearly defined service expectations is the first step inoffering a consistent service. With empowered staff in place, thewaters have the potential to become muddied. Empowerment is interpreted in many different ways. You could empower twoCSRs identically, and one will use the power more wisely thanthe other, giving the impression of inconsistent service. Defininginconsistent service is something that the organisation should alsoaddress. Is inconsistent service merely two people being dealt

C A R I N G F O R Y O U R C A R E R S 169

with in different ways, or is inconsistent service where one isdealt with within the parameters of the overall corporate guide-lines and the other falling outside of those guidelines? Organisa-tions that acknowledge inconsistent service across the enterpriseare effectively promoting consistency through a form of reversepsychology. If the workforce understands what is unacceptable itis often easier to interpret what is acceptable.

Be prepared to let your service offering evolve rather thantrying to force it in place overnight. If possible see how muchvariation exists in current service level offerings, then take bestpractice examples, benchmark against those and make it anacross-the-board offering that must be adhered to by all oper-atives. Ultimately, the more consistency that pervades the entireorganisation so the more consistent service you will inevitablyoffer. If every element of the business has a consistent approach,in line with the corporate mission statement, the service require-ment and enquiries will start to have an element of consistency.Keep internal communication fresh, regular and lively and talkabout the service expectations where they have been achievedand where the shortfalls exist. Common knowledge can oftenlead to common behaviour.

TAKING A MEANINGFUL INTEREST IN YOURSTAFF AND THEIR PROBLEMS

This is often an overlooked area of business, especially wherecustomer service personnel are concerned. Across the rest ofenterprise it is acceptable to look at the challenges that individualsare facing, and accept that they are personal and beyond the remitof the business as a whole. It cannot be the same for servicepersonnel if you are expecting them to relate to your customers.Wherever possible (and within reason) you need to eradicate anyproblems that they may have. Taking a meaningful interest intheir problems is distinctly separate from solving those problems.In many cases just listening and taking the time to consider what


personal troubles your staff are going through can serve to easetheir burden. Working on the age-old theory that a problemshared is a problem halved, just listening can often bolster themood of a troubled CSR.

It is important that the process of taking notice of the issuesaffecting your staff is not undertaken in a sterile environment,such as a surgery-style meeting or an impersonal office environ-ment. Nor can it be at predefined times of the week. The wholeprocess needs to be on a one-to-one basis and needs to be ad hoc.This leaves a responsibility on the immediate line managers tokeep a close eye on the idiosyncrasies of each individual person sothat they can detect when something is troubling a particularoperative.

It is important to build into this process a requirement to takeinterest in the good news as well. Too often it is easy to concen-trate on the negative aspects but extreme happiness and joy, likethe news that a particular operative is about to be married orbecome a parent, needs to be handled equally diligently so it doesnot impact on their role. In the quest to offer a consistent servicean operative who is particularly overjoyed and an operative whois particularly unhappy are very unlikely to give consistent service,so taking an interest in both the good and the bad is a necessaryrequirement.

If the staff retention programme has been successful and yourcustomer service levels are increasing, the morale of the staff,their attendance and length of service will be an ever-growingcredit to the organisation. It is worth pointing out that staff whoare seldom absent, have been employed for a long time, and who are generally happy, will be noticed sooner when problemsbeset them. This makes taking an active interest in their personalproblems so much easier. At the outset of the programme to offerexcellent customer service, you may find that the morale is not sohigh and that staff turnover is quite high, making the wholeprocess more time-consuming and more difficult. It is importantto plan for this and assess when is the right time to inject a careprogramme into your business processes.


PROMOTING OPENNESS AND DISCUSSION INTHE WORKPLACE

To many it would seem a paradox that we are looking to promotediscussion and openness in the workplace when, for years, wehave actively tried to eradicate it. The pressures of today’s busi-ness world are such that everyone is expected to work smarter,harder, faster and more accurately. These pressures build to suchan extent that it is necessary to devise outlets for people to expresstheir concerns. Because the work-life balance is presently out ofkilter for most employees, it is important that openness and dis-cussion takes place in the work environment because similartensions are prevalent outside of work also.

There are several processes and different initiatives that pro-mote openness and discussion within organisations. Some of themore advanced initiatives take on the theme of ‘open space’; thisis where a group of workers will have set an agenda themselves,over a short period of time with issues that they feel needdiscussion. Management may act, in certain circumstances, asmediator – otherwise the floor is open to staff to debate thesubjects as raised. In less formal initiatives, there is just a period of time set aside with management present to listen to theconversations that take place. Promotion of openness and discus-sion does not have to be management-led; it can be a functionthat evolves through the workforce aided by ‘buddying’, by hot-desking and definitely through initiation. A managementstructure that takes on board the opinions and comments of itsworkforce will inevitably encourage more input from that work-force. Conversely, a management structure that takes umbridgeat the comments being levelled at it is likely to increase thetensions and slow down the input from the workforce.

Introducing weekly or monthly discussion on best practicewill surprisingly present management with some great examplesof poor practice (another paradox!). This insight is a beneficialand valuable resource to be harnessed. Customer service person-nel on the front line are best placed to see precisely what is going


wrong with the service or product offering. To listen to themand to act on what they say is a cost-effective means of carryingout market research. Open discussion also reduces tensionsbetween different personalities within the workforce. It can serveto ensure that any minor discrepancies are dealt with before theygrow into major problems. The benefits to the organisation arethat less time is consumed by dealing with personnel matters andmore time is given to offering excellence customer service.

INCENTIVISING STAFF TO GO THAT ‘EXTRA MILE’

An interesting dilemma for many organisations is whether youshould reward staff for good customer service, or whether youshould expect staff to offer that as part of their duties on behalf ofthe enterprise. Rewarding staff that go the ‘extra mile’ is whollyacceptable. Often it is the recipient of the exceptional servicewho advocates that the CSR gets recognition. For an organisa-tion to actively put in place an incentive programme for excellentcustomer service is often seen as a cynical approach to what shouldbe a genuine service offering. If the service personnel interpretrecognition and rewards as incentivisation, then incentivisingthem becomes acceptable. The caveat is that it must be retrospec-tive. To incentivise and to offer inducements for great service is a little left-field for many organisations. A customer servicerepresentative should be able to go the ‘extra mile’ throughempowerment alone, rather than through financial or otherpersonal gain.

The wider question for business as a whole is: If there existsan incentive programme for extraordinary service, where are thecosts of this service met? How can you measure customerretention in the short term as would be necessary to financiallyreward CSRs, while attempting to promote customer retentionin the long term? A difficult dilemma. This is such a financial greyarea, tinged with moral doubts, which make it a very difficult


subject to comment upon. Some CSRs would argue that salesrepresentatives have the incentive of commission and targetbonuses and that they, the CSRs, should not be excluded fromthese types of incentive schemes. As we have already discussed,the service offering is a part of the overall sales process for theorganisation, so there is a train of thought that supports the argu-ment that CSRs should benefit from financial gain in a similarway to sales people. It very much depends on the individualculture of the business.

ACKNOWLEDGING SERVICE EXCELLENCETHROUGH BENEFITS

For management to acknowledge service excellence by itself is a reward for those members of staff who go the extra mile.Acknowledgement can be best used as a tool if it is intermittentand ad hoc. This is where empowerment upstream in the manage-ment structure can really pay off. If a line manager is empoweredto acknowledge good service from a particular CSR and rewardthem with the benefit of perhaps taking a day off to attend awedding (if it is particularly important to that CSR) then thatempowerment is working to the maximum for the organisation.Similarly, if the CSR has a passion for soccer and a match is goingto take place during his shift, perhaps that line manager would bein a position to swap shifts, thus keeping the excellent CSR con-tent and happy. Conversely, if a benefit system is rigid and planned,the effectiveness reduces over a period of time. Human nature, asa rule, has a way of finding the easiest solution to any given prob-lem. If a rigid benefit system is in place the temptation exists forCSRs to look for the easiest ways to achieve the end result. Theeasiest way is not necessarily the best way for customer serviceexcellence to grow.

Operatives need to see the benefit system as exactly that, abenefit rather than a right. If the benefit is awarded because aparticular number of customers ticked a certain box, or the


number of enquiries being handled is larger than the previousweek this can be to the detriment of the service levels beingmaintained. For acknowledgement of benefits to work to the besteffect many of the strands of this chapter especially need to bepulled together. A line manager would need to know his staffwell enough to know what is important to them and award thebenefit accordingly when it is required or when it is earned. Anybenefit system being put in place must not cause conflict, eitherwithin the workforce, or as a conflict of interest with regard tothe ultimate corporate aim. If resentment builds through a teambecause one particular CSR is receiving benefits on a regularbasis, the management is not necessarily grasping the essence ofwhat is required.

A benefit acknowledging excellent customer service can beinterpreted in several ways. It is important that the line managercontinually changes the criteria, so that all members of staff havethe opportunity to benefit from the scheme. While on the surfacethis may seem as though the consistently good CSR who goesthe ‘extra mile’ on a regular basis is being penalised in order toreward the rest of the staff, who by comparison might be offeringmediocre service, this is not the case. The CSR offering excellentcustomer service on a regular basis should be rewarded by thecompany either by way of promotion or career advancement,training and the like. Provided harmony can be maintained across the department, harmony will be projected towards yourcustomers; therefore a consistent service is more likely to prevail.

UNDERSTANDING WHAT MOTIVATES YOURSTAFF AND REWARDING ACCORDINGLY

We have touched a little on this subject in the previous section.Rewarding according to motivational value is a process thatworks effectively across the entire enterprise, not just the servicesector. If an organisation is capable of preparing a basket ofrewards that is commensurate with the needs of its workforce and


not rigid, those rewards will be more meaningful and potentiallymore cost-effective. They will certainly be more motivationalthan the normal reward schemes in existence. If you are able tooperate a flexitime system, this is often a good way of helping staffto sort their own lives around work, and even out the life-workbalance somewhat. If you then throw into the mix that if theyworked an extra 15 minutes a week, they would earn the right toa half-day around Christmas time for Christmas shopping or toattend the school nativity play, you will be appealing to a largeproportion of the workforce. How you design your basket ofofferings will depend very much on where the main interest ofyour workforce lies, whether that is sport, social events or family.The initial effort of implementing such a system will be onmanagement. It is they who will have to work out the intricaciesand decide what to build into the basket of offerings. Once thesystem is in place and has been rolled out, however, that effortwill immediately benefit the workforce and the organisation as awhole.

READINESS CHECKLIST

1 Are you dealing with your customer service representativesin an individual way?Dealing with CSRs en masse is not good enough. These assetsshould be nurtured and cared for, so that they nurture relationshipswith customers. Incorporate one-to-one time with each CSR– butwhen they need it, not when it suits management.

2 Have you factored in breaks at regular intervals?The face-to-face, often confrontational contact that CSRs have resultsin a need for them to ‘de-stress’. Set aside ‘quiet’ time, so that CSRscan take stock and gather their composure.

3 Do you highlight good practice internally?It is important to flag up good practice across the enterprise so thatpeople involved in other functions are made aware of the good workdone by CSRs.



4 Is your organisational structure flattening out?The pyramid hierarchy has less impact in today’s service-orientedmarket place. Generally, the flatter the structure the more cohesive theworkforce.

5 Do you reward or acknowledge good service?Acknowledgement should be reward itself.

National Westminster Bank


Nature of Business: Financial institution


Specific Challenge: Devising a means of differentiation throughservice.

Overview of Action: As a major clearing bank, NatWest facedtough competition in the marketplace from other banks andbuilding societies that offer a similar range of products. Theyrecognised that differentiation can be offered to customersthrough staff and the service they provide. Therefore, stafftraining is vital. NatWest’s goal was to offer the best coach-ing and training in customer service skills to gain a com-petitive advantage in the marketplace. NatWest fullyrecognise that customers buy from people, not from organ-isations. The training that has been undertaken includesworkshops to teach new customer advisers the process theymust follow in order to undertake successful reviews ofcustomers. This is complemented by visits in the workplaceto offer further guidance and coaching to achieve a level ofexcellence. Training of unit managers is also undertaken to

CONTINUED . . . National Westminster Bank

ensure that they are equipped with the knowledge to under-stand the customer adviser role. Key actions that aidedsuccess were:

� Effective communication through all departments;� An understanding of technical and organisational

knowledge;� Clear influence and leadership from management.

Outcome: Effective training of 1400 customer advisers, a rela-tively new role within the organisation. To complement thisnew role, training programmes were written and imple-mented in the form of skills workshops, on-the-job coachingand on-going assessments. This ensures that standards arebeing maintained and opportunities maximised. Competentcustomer advisers exhibit increased confidence and capabil-ity in achieving business targets and standards.

Key points:

�� Differentiation through service is a recognised businessdriver.

�� On-going and quality training is vital to success.�� Assess evaluation of procedural changes and the impact on

service.�� Measurement of service must be undertaken.



Mid Kent College


Nature of Business: Education


Specific Challenge: To design a customer service training pro-gramme specifically for the leisure/tourism industry.

Overview of Action: Following the closure of the MedwayDockyard in 1987, the area went through a period of socialand economic decline. The dockyard itself offered a glim-mer of hope through the potential for the development oftourism. With the formation of the unitary authority in1998 an opportunity arose to unite the fragmented sectionsof the tourism industry. A training needs analysis carried outfor this sector by Medway Council revealed a need for cus-tomer service training in order to raise the skills level ofpeople working in the industry. The Medway AmbassadorScheme was an ambitious training and benchmarking pro-cess developed by the college and adopted by all localleisure/tourism attractions and accommodation outlets inMedway. This is the first customer service benchmarkingprogramme of its kind. The college is attributed with devel-oping a programme that unites a large part of the fragmentedlocal tourism product. Key actions that aided success were:

� A desire by interested parties to work together in pursuitof a common aim;

� The recognition that customer service training wasneeded for the fragmented tourism industry;

� Commitment of Medway Council and buy-in from allleisure/tourism outlets;

� A scholastic approach to a commercial dilemma.

CONTINUED . . . Mid Kent College

Outcome: The result has been the setting up of the first-evercustomer service benchmarking scheme for Medway leisure/tourism industry. This is a portable scheme which could rollout across a number of other unitary authorities. The schemeis now regarded as an example of best practice.

Key points:

�� Collaborative processes within a fragmented industry canpromote best practice.

�� Concise planning and implementation is important.�� Recognise that customers need good service to be retained.�� Innovation in service is invaluable.


THE FINAL CHAPTER – A SUMMARY

If the customer is ‘God’ then customer service excellence isthe Holy Grail. Customers are evolving and becoming moresophisticated in their requirements. Organisations, in turn, mustbecome more sophisticated in their service offering.

The readiness checkpoints in this book when implementedand taken as a snapshot would enable an organisation to assesseasily and quickly where it stands in the service excellencejourney. If you are implementing just some of the functionsrequired, you must take stock of the impact that the absence of theother functions is having on your service offering. The entireprocess is a strategic plan that must include all the elements to becompletely successful. Taking any of the points raised in this bookin isolation will go some way to improving your service offering.However, adopting only some of the points is likely to lead to thecustomer feeling uneasy and your employees feeling unsure. Inother words, the service offering is going to be less than consistent.

By employing all of the points raised in this book you will betaking a strategic approach, which may involve a culture change

within the organisation, a review of your HR policy, and mayeven culminate in you being able to show customer service onthe balance sheet. When implemented strategically, systematic-ally and fully, in time customer service excellence will have apositive effect on every individual department within yourorganisation.

THE PROCESS

To enable an organisation to effectively adopt the customerservice excellence ethic in an economical and non-disruptivemanner it is important to benchmark where the organisation isbefore the new approach is embarked upon. When measuringcurrent levels be sure to recognise those elements that are notworking as well as those functioning perfectly well. The customerservice excellence journey will not begin for every organisationat the same place. Companies with different cultures and marketsegments will be doing different things exceptionally well andexceptionally poorly. Evaluate precisely what you are doing welland poorly before commencing and then look at your com-petitors to see if your customer service behaviour is average foryour market segment. You can then measure progress againstyour competitors.

Trying to comprehend a ‘customer-centric’ approach issometimes a difficult task. To many organisations putting the cus-tomer at the centre of the majority of its business decisions is alienand not a function that is easily undertaken at board level. Youmay find there is a need to educate and to inform before you can commence with your ultimate programme. The process ofeducating and informing may result in a customer service direc-tor being appointed or a senior-level manager having access toboth the boardroom and the shop floor in order for the entireprocess to run smoothly and quickly.

Many aspects of this book would normally take between twoand three years to implement from the first time the ideas were


mooted. This book is designed to shortcut the system by at leasthalf, but often implementation can take place in single monthsrather than years. In order to do this effectively you need torecognise the cultural needs of the organisation. Making a com-plete culture change is not an easy task and would not be under-taken lightly by any organisation: first, because most organisationshave a culture that has evolved and therefore is not seen to bechangeable; and second, an organisation adopting a specific culturehas done so because it believes that by doing so success willfollow. To suddenly change this philosophy and adopt a customer-centric approach and a shift in culture is tantamount to admittingdefeat. However, the process is a necessary one in order toimplement a completely customer-centric approach.

An organisation must be prepared to open up as many channelsof communication as possible and must not discard new tech-nology without very careful consideration. In today’s businessclimate it is unthinkable to believe that there would be an organ-isation that does not have a web site. A company without a website lacks credibility. The technology that has been adapted forthe web site should be extended to the customer service arena.Encourage your customers to contact you via the Web, e-mail,SMS text message, as well as conventional letter, fax and tele-phone. Ensure your customer has as many channels as possible tocommunicate with you; remember that the data that they com-municate is more valuable and more cost-effective than any marketresearch that you could possibly undertake.

Having opened up as many channels as possible it is import-ant that you know the customers that you are talking to and thevalue that they may have to your organisation. Segmenting yourcustomers and evaluating their lifetime value will ensure that youhave the ability, whether you use it or not, to differentiate theservice levels you offer your most valuable customers. While inisolation this is relatively unimportant, in the bigger picture ofthe customer service excellence programme it is vital. Peoplewithin your organisation must understand the difference betweena transactional value and the lifetime value of any given customer.

T H E F I N A L C H A P T E R – A S U M M A R Y 183

Customer service excellence is based upon consistent service andif your top 10 per cent of customers get a consistently higher levelof service, then it is important that all of your CSRs are able todistinguish the reason that this service is being offered.

Having segmented and evaluated your customers, you willknow which customers are less profitable and you must make a decision whether or not you can continue to service thesecustomers. Calculating the cost-to-serve of all of your customerswill dictate whether the less profitable customers are worthpersevering with. While undertaking this exercise you will also be in a position to make plans on how to move the lessprofitable customers into a more profitable position for yourorganisation.

Opening more channels of communication and differentiat-ing between the customer segments in your customer base willinevitably lead to an initial increase in customer complaints, andthey should be welcomed. Customer complaints will always giveyou the information that others are sometimes reticent to relay. Ifyou are doing something wrong, if you have overlooked a par-ticular procedure, or have made changes without due considera-tion for your customers, they will let you know. Be sure to have arigorous and robust recording system for complaint manage-ment. As a bare minimum ensure that you take the customer’sname and contact details so that if the situation cannot beresolved at the first point of contact, you are in a position tocontact the customer who has laid the complaint at a later date.Effective complaint management will ensure that the customerswill remain loyal, and the information that complaining cus-tomers provide is a valuable resource to be manipulated. Whencustomers level complaints at your organisation, evaluate howbest to leverage that situation. If third parties are involved –contractors or suppliers – then ensure that your reputation is nottarnished by their inability to uphold their end of the contract; atthe same time be sure to show empathy and understanding of thecomplaint. As the Ratner experience taught everyone, reputa-tion is everything.


Never promise what you cannot deliver. This is importantboth to internal customers and external customers. Where pos-sible, always under-promise and over-deliver. In short, this is theessence of managing expectation. If, as an organisation, you caneasily deliver every promise that you make then you are a longway down the customer service excellence route. The majorityof organisations, sadly, can promise high but deliver low; and thisis where problems arise. Always aim to exceed expectation and,where this is not easily possible, try to reduce expectation to alevel that you can exceed. Effectively managing expectations willenable your organisation to move forward with a customerservice excellence programme faster and more effectively.

Be ever-mindful that excellent customer service is onlyexcellent for as long as it is unexpected. Therefore you need tocontinually think of new ways to exceed your customers’ expecta-tions and this will inevitably lead to some ‘outside of the box’thinking. You will find that very often the most effectiveinitiatives emanate from CSRs who are allowed to think and act‘outside of the box’. In order for a CSR to be comfortable doingthis they must be truly empowered. Empowerment is not therelinquishing of power from the organisation to the employee;far from it. It is a set of parameters within which a CSR mayexercise a certain amount of freedom, being able to evaluateappropriate actions for appropriate situations, and feeling thatthey are contributing to the total customer experience. Trulyempowered CSRs will feel comfortable looking for the potentialsales opportunity once any grievance has been overcome.

While CSRs will never see themselves as full-blown salespeople they will understand through the transparency within thenew culture of the organisation that everyone is there to serve thecustomer in the best possible way. They will simply see sales asanother avenue of serving that customer. This can have a bene-ficial effect on an organisation and can be seen as being a totalservice for the individual customer. Most issues surrounding thisrelate mainly to customer ownership. The sales department willoften feel that they own the customer and the customer service


representative will not necessarily have an ownership issue butwill feel that the customer ‘deserves’ to be sold to.

These internal issues must be addressed via internal com-munications and a collaborative approach departmentally. In aB2C environment a decent CRM system that is utilised by alldepartments is a valuable asset and will enable the organisation tobenefit its customers. In the B2B environment where an organisa-tion may have fewer customers, the CRM system may not benecessary, but a system of sharing of information and data oncustomers and activity must be in place.

And to complete the customers service excellence toolkit,you need to have in place a system of caring for your carers.Whether CSRs are in the call centre or face-to-face at the frontof office, the need remains the same that they must be treatedwith the same care and consideration that you would treat acustomer. By treating your employees in this way they will feelthat their efforts are being rewarded and acknowledged and willrepay those efforts in many instances through loyalty to theorganisation. This in turn will reduce the amount of employeechurn and effectively increase the knowledge base within theorganisation.

Taking any of these recommendations, in isolation, will havesome effect; taking several of these recommendations will have a demonstrable effect; taking them all will have an astoundingeffect.

AND THE FINAL WORDS FOR THE DOUBTERS

Having waded this far through the book, if there are any linger-ing doubts in your mind about the importance of customerservice, it may be worth reminding you of just a few statisticsreleased in a NOP survey of 1000 people in June 2002:

� In the previous 12 months 94 per cent of Britons complained to a company.


� In the past 12 months 80 per cent of customersstormed out of shops because sales staff were nothelpful.

� In the past 12 months 31 per cent haggled for betterprices.

� In the past 12 months more than 30 per cent ofrespondents said they would send back a meal in arestaurant.

� In the past 12 months 20 per cent said they have beenangered by poor service.

Are you still unsure of the necessity of a customer service excel-lence programme?

CASE STUDY

Company Name: BT Cellnet


Nature of Business: Mobile telecommunications


Specific Challenge: To differentiate through service at the same time

as achieving business aims by retaining customers and reducing debt.

Drivers

Because of a process anomaly a large number of customer accounts

had gone into debt. The company had effectively suspended pay-

ments being received from customers’ direct debits. The customers

were inadvertently slipping into debt and the company was losing

money. Once identified, it was necessary to contact all affected

customers and make them aware of the situation. BT Cellnet then had

to agree terms with them and reinstate the direct debits.

The current marketplace is changing rapidly and the need to

respond to customers’ needs in a proactive way is paramount.

Anticipating customer needs and managing customers’ expectations


is an area that can set a company apart. It can move a company from

being ordinary to exceptional. BT Cellnet knows that differentiation

through service can add to the company’s worth, rather than drain its

resources. By managing expectations and anticipating needs the

company can effectively reduce the amount of incoming queries and

complaints, thus releasing resources to perform other business

functions.

The essence of the success of BT Cellnet’s customer service

department is flexibility. Having a motivated, empowered and focused

team ensures that customers receive the benefit of consistent service

where ownership of queries is prevalent and a ‘can do’ attitude

prevails. Relationships are formed and loyalty results. Trust is built,

not only between the customer and the CSR, but also between the

customer and the company.

Customer service measurement and evaluation plays a vital part at

BT Cellnet, where precious little is left to chance. Various measures

exist, such as call quality monitoring and customer satisfaction surveys

– these are normal industry practice. BT Cellnet has adopted an

emerging service measure called First Time Resolution; the measure-

ment of how many queries are resolved on the initial call. The data that

this provides for the company enables it to make sound decisions on

staffing levels and to some extent fashions its criteria for hiring.

The data collected from the various measures is not only used to

effect the usual business processes; it is also used to feed back to

individual CSRs. This means a continuous process of improvement

and a constant review of service offerings are undertaken. The overall

aim is, clearly, to offer excellent service and to amass a widespread

knowledge base among its operatives so that a wider level of

empowerment can result in excellent service.

Implementation

The development of the team has evolved over a number of years, and

the aims and goals have been fluid. Striving to differentiate from a

crowded market offering similar product leaves few options. If a


company competes on price alone in this market it is susceptible to

price differentials and special offers being made by its competitors. The

client base becomes transient and skips from one supplier to another

at will. Loyalty does not exist. If a company competes on product/

technology alone the R&D spend is enormous, with no guaranteed

return on investment and no guarantee that the market is going to

respond. Competitors could try to either clone the technology or resort

to hijacking design concepts without investing as heavily in R&D. Yet,

for the company that differentiates through service, a real win-win

situation exists. Differentiation through service offers a company the

opportunity to showcase its very culture; it can take transparency to a

new level. It is difficult to clone or hijack a service offering. True, all

companies can have a similar money-back guarantee, but you cannot

replicate the individual who is allowed to go the extra mile.

One example at BT Cellnet:

A customer calls to request disconnection. From his tone and generaldemeanour the CSR detects that the customer is unhappy. The CSRengages him in conversation, asking open questions and empathisingwith the problems the customer is listing. In short, it transpires that thecustomer’s account has been mishandled. The CSR (unable to First TimeResolve) assures the customer that she will investigate the account andarranges a convenient time to call back. This is duly done and a resolutionproposed. The customer is not satisfied with the resolution and a furthercompromise is reached. The customer subsequently orders a new hand-set, signs a new 12-month contract and sends a letter of appreciation.

Great service offerings from companies emanate from empowered

individuals and these cannot be cloned, hijacked or effectively copied.

Continuous measurement and improvement will ensure that BT

Cellnet continues its customer service journey in the right direction

Success

The importance that BT Cellnet attributes to customer service is best

summed up by one of its employees who, when asked to summarise

her personal success with the company had this to say:


I have worked for BT Cellnet for two years and in that time I have gainedso much job satisfaction. I have had opportunities to gain my CustomerService NVQ and an Administration NVQ. During the petrol crisis I paid£25 for a taxi to get to work. My house has been flooded but I still cameinto work to do the job on which I thrive. The greatest achievement of all isthe ‘Thank You’s’ I receive on a daily basis from customers andcolleagues who I have been able to help.

When you have staff as committed and contented as this, the enthu-

siasm projects to the customers. Being able to project this level of

enthusiasm on a consistent basis will result in a competitive advantage.

Summary

This case study displays the human, individual aspects that make

customer service excellence a goal worth reaching. Through empower-

ment, feedback, continuous training and transparency the service

offering at BT Cellnet sets it apart from its competitors. People offer

great service, not organisations. But for people to flourish and

blossom, organisations need to allow them the room to grow. This

requires trust, belief and commitment.

CASE STUDY

Company Name: Eurostar UK


Nature of Business: Transport


Specific Challenge: To satisfy high and varied expectations from a

diverse customer base with differing needs with a view to increasing

repeat business and creating customer loyalty.

Drivers

Eurostar is a unique product offering high-speed transport between

the city centres of London, Paris and Brussels using the Channel


Tunnel. Trains also serve Calais, Lille, Disneyland Paris and, in winter,

the French Alps. Two distinctly different customer segments use the

service: the business traveller and the leisure traveller. These two

segments have differing expectations and needs. Staff on the trains,

at the stations and reservations centres have to deal with both sets of

customers and offer a level of service that reflects the values of the

company.

Although Eurostar is the clear market leader on its routes, some

new passengers are still apprehensive and unsure about it. The

customer service personnel see it as their duty to ensure that the

experience for the customer is positive, enjoyable and where possible,

convince the customer that Eurostar is the way to travel.

When offering a unique service, it is sometimes possible to

become complacent with service levels and assume that customers

will remain loyal through lack of choice. Not so at Eurostar. The

company is fully aware that while its service is unique, customers still

have a choice; they can go by air or ferry. So, Eurostar goes to some

pains to assess and evaluate its service offering.

The mystery shopper research reveals data on various categories

such as appearance, approachability, commercial/safety knowledge,

frequency of announcements and use of multilingual announcements.

Customer service surveys are also carried out to obtain feedback and

to get a picture of customers’ perceptions of the service being offered.

The customer relations department also plays a major part in

assessing the service levels. Through the correspondence and calls

to customer relations, reports are produced monthly, which look at

areas of concern based on the content of the communication. This

information can change the service offering by drawing the attention of

staff to often very small matters that are important to customers.

The customer service offering at Eurostar is ever-evolving and

constantly monitored. In one instance, at an intermediate stop, the

minibar was blocking access for passengers joining the train. The

stewardess (who was not usually required to operate the minibar)

asked to be allowed to finish serving the passenger. A tired passenger

objected and a situation arose. The passenger was invited to sit with

the train manager during the tunnel section of the journey, to discuss


the matter. Later, during a quiet part of the journey, the train manager,

purser and stewardess convened to discuss, openly, the incident.

Blame was not apportioned, nor called for. However, a training need

was identified and recommended in the train manager’s log. The

customer was apologised to and given a complimentary drink while

the manager explained the outcome of the meeting. Subsequently a

training programme has been adopted, which should avoid any such

problem in the future.

Implementation

Eurostar has business and leisure customers whose needs and

expectations vary greatly. To balance the service offering without bias

requires consistency, empowerment and structure. When train delays

occur, it is relatively simple to make factual on-board announcements.

However, when half of the customers have business meetings to

attend or on-going connections to make, and the other half have

young children excited at the prospect of visiting Disneyland Paris, the

communications need to be more than merely factual.

When a train delay occurs it is best to be as open as possible. A

large contributor to frustration is not knowing what is happening and

why. Eurostar had a delay on a day in winter caused by ice on the

power rails. All services were brought to a standstill. It is the train

manager’s duty to inform and placate the customers. It is not always

an easy role as many people are facing missing appointments or

being late for the start of their holidays. The train manager has

communication with the controller, but the controller has to look after

many other trains and information is not always forthcoming. The train

manager told the customers of this dilemma while walking through the

train. He also authorised complimentary refreshments to be served.

This policy of openness and honesty ensured that while the customers

were not happy at being delayed, they were satisfied that they had

been kept informed and dealt with professionally.


Success

At Eurostar the most notable successes come from putting itself in its

customers’ shoes, empathising with customers and anticipating

customer needs. The overall service offering is subtle, seamless and

personalised. Many customers have an onward journey to make, and

by enquiring of them their final destination, train managers can

proactively engage the customer by offering advice, tips and in-

formation on how to change trains or get across a city. The intro-

duction of the Euro as a currency has thrown up some challenges, but

even before some people had difficulty understanding that to get across

Paris would require francs, when all they had was pesetas because

their final destination was Spain. Being able to point them towards a

bureau de change and advising on how much currency to change, are

tiny parts of a service that extends beyond the required level.

Customer service personnel who go the extra mile for the cus-

tomer do get noticed. There have been instances of passengers

asking when a particular train manager is next on duty, and travelling

at that time, specifically because they know that the service will be

excellent and that they will be looked after. This bears testament to the

customer service mission statement adopted at Eurostar: to provide a

customer experience that is consistent, intentional, differentiated and

valuable.

Summary

This case study displays examples of how succinct service delivery

can pay dividends. Through lots of subtle proactive actions the entire

customer experience is enhanced. The repeat business and loyalty

levels increase and the service of individuals is credited. Trans-

parency and openness play a large part in reducing friction and

frustration. Fluidity and empowerment result in an atmosphere of

progressive change and a service ethic that has impact.


CASE STUDY

Company Name: Midland Mainline


Nature of Business: Train operating company


Specific Challenge: To develop ways of complaint handling which

were commensurate with increasing satisfaction levels and enhancing

company image.

Drivers

In the aftermath of the Hatfield rail disaster, the industry was faced

with the worst disruptions in recent times. The tragedy, caused by a

broken rail, subsequently wreaked havoc across the entire country, as

first a major survey of every metre of railway had to be inspected,

followed by a mass replacement programme. Railtrack, the now

defunct network management company, imposed blanket speed

restrictions across the network. These speed restrictions drastically

increased journey times and Midland Mainline was one of the worst

affected by these measures. The speed limits were subject to change

without prior notice, causing severe disruption and no small amount

of inconvenience for its customers; inconvenience that often trans-

formed into anger.

Midland Mainline was not always able to communicate with any

authority the current timetables, expected journey times or reasons for

late arrivals and cancellations. Customers’ frustration grew. Rail-

users across the country were aware of the tragedy and had sympathy

for those involved. But as the train operating companies continually

failed to supply meaningful information about journey times, a signific-

ant national mood swing turned customers into mere passengers.

Sympathy was replaced with a certain degree of apathy and a public

relations disaster was afoot.

Complaints and compensation claims flooded in, creating in itself

a workload that had not been planned for. The response times were


less than satisfactory and Midland Mainline’s customer service goals

were becoming impossible dreams. As a result, a review of what in-

formation is given and how it is communicated has been undertaken;

new training modules have been developed for front-line staff and

there is a commitment to producing a printed document explaining, in

layman’s terms, common causes of disruption.

Midland Mainline, as a public service, recognised that efficient use

of customer feedback would be an effective way to improve services.

To retain current customers and attract new customers, the voice of

the customer must be listened to and taken account of.

Implementation

The development of an effective complaint handling solution involved

establishing the existing commitments to measurement of service and

the governing restriction laid down by the Strategic Rail Authority (SRA).

The measurement of service levels is by government agreed

standards (the Passengers’ Charter), monthly reports drawn from the

customer relations database, and quarterly independent customer

satisfaction surveys. This data is analysed and recommendations

made.

Key elements to improve the service involve strategy planning,

operations and people management. Midland Mainline is committed

to making customer feedback an integral part of initiating service

improvements. The processes for complaint handling are reviewed by

the SRA (who award the franchise) from time to time. The Pas-

sengers’ Charter that Midland Mainline must publish now incorporates

a prepaid feedback form. The data is collated and analysed to help

initiate change. The company is also more proactive in its prepared-

ness for major disruption. There is a series of measures now in place

to actively reduce the onset of complaints. Pre-printed information

relating to severe delays can be handed to passengers, informing

them of potential causes and expected levels of disruption.

The customer relations database has a mechanism that alerts the

operator in the event that a complaint has not been handled in the time


stated in the Passengers’ Charter. The results of this mechanism then

make up part of the monthly reporting process. This in itself is not

particularly new, but the way in which the information is collated and

used to effect change is where Midland Mainline has actively been

seen to achieve results.

As part of its commitment to become more customer-focused the

company is developing a customer service academy. All customer-

facing staff will be required to attend the academy annually for

refresher courses. Additionally customer-facing staff are being trained

to receive complaints and feeding back the information into the

system to effect change in services. In order to give a consistent

appearance of professionalism, staff are also being trained in the use

of grammar and proof-reading. Personal development training is also

available for personnel.

Success

Prior to the Hatfield tragedy the customer relations team handled an

average 1445 complaints in any four-week period. In the period

immediately after the accident, complaints escalated to 4454, tailing to

3823, 3054 and 2601 respectively. It is clear that the sudden influx of

complaints caused very real concern. Prior to Hatfield complaints were

being dealt with on average in 8.41 days against a target of 20 days.

With the large influx, contingency plans had to be designed. Once

these were implemented and the targets redefined, the company was

able to respond to complaints in 1.84 days, with no noticeable loss of

quality.

The customer relations department has shifted emphasis from

being a letter-oriented function to a more proactive function. Absorbing

data and disseminating that data throughout the company has now

become a normal function for the department. Customers’ complaints

are resolved sooner and more use of information from complaints is

being fed into the system. By taking notice of the causes of complaint

Midland Mainline is making strides to proactively reduce the incidents

for cause for complaint.


Summary

This case study displays a willingness to change and the value of

becoming customer-centric (even in the face of adversity). The

initiatives and determination shown indicate a complete empathy with

the customer. Proactively reducing causes for complaint is shaping

the customer service offering. Involving the customers by using their

complaints as initiators for change is a masterstroke that makes the

customer feel he is being listened to. A satisfied complainer becomes

a loyal customer, so it has been ingrained in Midland Mainline staff

that customer satisfaction is vitally important. The development of the

customer service academy keeps service at the forefront of all

employees’ minds.

CASE STUDY

Company Name: Sainsbury’s Supermarkets


Nature of Business: Retail


Specific Challenge: To make customers feel special while facilitating

their needs and influencing their decision to return, maximising

lifetime value.

Drivers

The retail supermarket sector has become exceptionally competitive

in recent years. Some major chains have reinvented themselves and

some of the emerging players are capturing market share. Having

evaluated all the previous methods of customer retention in terms of

loss leaders, loyalty cards, special offers and a general broadening of

offerings (financial services, holidays etc.), Sainsbury’s identified that

customer service and the way in which people perceive the company

are elements which can offer a true competitive advantage.


Building on brand loyalty and offering exemplary service has

helped maintain Sainsbury’s position among the top three super-

market chains. The associated benefits of being a top three player

mean good returns on investment, good working conditions and a

secure future in a volatile market for staff and stakeholders.

Sainsbury’s uses the mystery shopper technique as a measure of

customer service. This is carried out on a store-by-store basis; the

results are directly fed back and changes made. The mystery shopper

results take on board the good as well as the bad, and the recom-

mendations become easier for staff to accept when some of the good

things that are happening are highlighted. Regional customer listening

groups have also been devised. This gives Sainsbury’s customers

direct access to the company, and the feedback has proved invaluable.

Having the ability to react to specific challenges as they arise is a

difficult process with a company as large as Sainsbury’s, but one

which has been created through an understanding of the importance

of the customer. An issue of concern to a customer arose when

employees coming off duty were interacting with staff on duty. Given

that this customer was less than happy with the service she received,

the company procedures were researched and the relevant passages

relating to this were made known to employees. As soon as it was

communicated that it was a problem, it ceased to happen. On another

occasion a customer became unwell during his shopping experience

and was unable to pack or carry his shopping. Sainsbury’s staff

reacted by having his shopping packed and delivered to his door.

Flexibility allows the company to portray instances of excellent service

while maintaining a consistent level of good service.

The company promotes continuous learning for all employees

and encourages customer service self-development through videos,

booklets, Intranet, traineeships and coaching.

Implementation

In order to enhance the customer experience there are many

processes that need to be considered in the supermarket arena.


1 It is important that the customer has ease of access, ample

parking, well-lit car parks and approaches to the store.

2 All customers’ special needs should be catered for, including,

but not exclusively, disabilities, dietary requirements, allergies

and so forth.

3 There must be ample types of shopping trolleys in differing

sizes and some with special needs in mind. These must be well

serviced and clean.

4 The store must be clean, welcoming and warm.

5 The layout must have a functional purpose as well as a

familiarity.

6 The range of products must reflect the needs of the customers

and alternatives must be offered.

7 The checkouts must be well staffed and queues kept to a

minimum. There must be ample supplies of carrier bags, and

someone to help pack if so required.

8 Staff must be knowledgeable, helpful, happy and energetic.

9 The prices must be reasonable.

10 The opening hours must suit the customer’s lifestyle.

Understanding customer needs and shopping habits can enable the

store to carry more of the produce that it knows the customer will want

to buy. Feedback from customers, both positive and negative, plays a

pivotal role in shaping the customer service offering. The importance

of customer service is a message permeating every part of the organ-

isation, reinforcing the mission statement: First For Food. Outstanding

Quality. Competitive Cost. Faster. Simpler. Together.

Success

The continuous learning mantra that Sainsbury’s holds aloft, is a

living, breathing reality in the organisation. Customer service staff (as

well as others) have the opportunity to undertake self-development

courses which enhance their self worth and their value to the com-

pany. Some service personnel undertake food safety certificate

qualifications, first aid courses and NVQ in retail.


Change action teams have been formed at store level. These

teams invite comments and criticisms on how the company as a whole

can improve on customer service. By bringing this process in-house the

company is able to evaluate perceptions as well as measure success

and failure. The teams take the findings to the relevant line managers

and discuss ways of implementing changes that will be beneficial to the

company and its customers. This measure is in addition to all the other

initiatives that are currently being used or under review.

Summary

This case study displays a real understanding of the lifetime value of a

customer and the inherent value of listening. Feedback is an all-

encompassing word which many people assume to mean complaint,

yet feedback can be in the form of a ‘thank you’, letter or a constructive

observation. Absorbing the information that a customer gives allows the

company the chance to initiate meaningful change. A constant aware-

ness of the need to adapt to the changing needs of the customer and

understanding that customer service is a process which permeates all

areas of the business will result in customer service excellence.

CASE STUDY

Company Name: Stannah Stairlifts


Nature of Business: Manufacturer of stairlifts


Specific Challenge: To differentiate from competitors and enhance

customer retention through offering a premium service.

Drivers

In recent years the stairlift market has become increasingly competi-

tive and crowded. It is more and more difficult to differentiate products


from those of the competitors so differentiation through service

became a key driver for the company.

Customer service has been a part of Stannah Stairlifts’ business

strategy for a number of years, and the company has a relatively

sophisticated evaluation process. There is a quality service database,

which is key to the collection and evaluation of customer service

performance, with input from both internal and external sources.

Statistics are generated on the number of feedbacks (complaints)

received and the categories to which they relate. There are also

internal measures that evaluate performance on quality, time, ship-

ments and other production-related measures.

There is a direct comparison drawn between the number of orders

taken and the number of feedbacks received. This is a rather crude,

but effective, measure. Measurements are also taken on response

times to feedbacks and subsequent communication from the com-

plainer. Customer input is collated from surveys, customers’ visits and

normal day-to-day contact with customers.

Because the stairlift market has become increasingly competitive,

Stannah uses a network of distributors throughout the world. The

company identifies these distributors as customers and a dedicated

customer service representative handles all incoming queries from

this customer segment. The designated CSR assumes the role of

internal agent for the distributors and effectively ‘fights their corner’.

Because the distributors are the public face of Stannah as far as the

end-users are concerned, it is imperative that they have a positive

image of Stannah at every touch point. Only by receiving excellent

service can the distributors be expected to understand the company’s

service ethic, and pass that on to end-users.

An example of differentiation through service was evident when

one particular distributor placed an order for a container of goods to be

shipped to the USA. The order was submitted and processed and a

dispatch was given. Subsequent conversations with the distributor

unearthed an anomaly. The CSR recognised that the order was more

complex than first appeared and was suspicious that the distributor

was expecting an order with additional items that were not yet

available for the US market. The CSR decided to check the paper-


work, but there was no mention of these additional items, yet the order

still did not seem correct. The CSR decided to telephone the

distributor and explain his misgivings. It transpired that the distributor

was expecting the yet-to-be released goods. The distributor was

delighted that Stannah had realised this error and avoided the

costly shipment of £210 000 worth of goods that could not have been

used.

It is clearly the mindset of the personnel within Stannah that aids

the company’s belief that differentiation through service will give them

a realistic and tangible competitive edge. The company recognises

that the distributors have a choice, so it actively sets out to exceed

their needs and manage their expectations.

Implementation

It is essential for Stannah to maintain an open channel of commun-

ication between itself and its customers. In addition to the day-to-day

contact, Stannah calls customers on a monthly basis to see if there is

any assistance that they can offer, and to discuss any issues or needs

that they may have.

Stannah also proactively seeks comments regarding quality

issues and suggested improvements. These are logged onto the

quality database and analysed. In the event that any remedial action is

necessary, it is then passed on to the quality department to ensure

that the correct action gets taken within strict time lines. When an

issue has been resolved and changes implemented, Stannah feeds

back the results to the customer, outlining what preventative

measures have been taken.

Over the past three years the customer service department has

changed dramatically. It is now at a stage where it has moved from

being reactive to proactive. Stannah has identified that while it can

closely monitor its service levels to its customers, it is sometimes

powerless to influence the end-user’s impression of the company. The

customer service department is in a position to really make a

difference: by dealing with distributors in an exemplary way; the


distributors will understand what is expected of them in dealing with

the end-users.

The internal communications are currently under review and the

department continues to liaise closely with other departments to help

them to achieve a consistent level of service across the enterprise.

The Continuous Improvements Team (CIT) has been developed to

constantly review communications and service level progress.

Success

The customer service department evolved in line with the growth in

competition within this sector; therefore it is a relatively new depart-

ment. One of the early successes was the education of the rest of the

company on the role and importance of customer service and the

functions of the new department. The mantra they follow is that ‘they

are only as good as those who support them within other areas of the

business’.

The formation of the CIT has offered the department an excellent

forum for raising the team profile. It has also enabled the team to focus

on greater interdepartmental communication, which has been devel-

oped through a presentation to the board of directors. Stannah is

trying to present its distributors as a continuation of its own staff by

offering support and consistently excellent service to them, in the

expectation that they, in turn, will adopt the same service values.

Summary

This case study shows the value of empowerment and buy-in from

board level. Through managed, continuous communication on a

regular basis, cross-sell and up-sell opportunities arise more

frequently and the customer service department is actively able to

promote a greater volume of sales. By embracing the third parties

(distributors) and presenting them as an extension of internal staff (as

far as the end-user is concerned) Stannah is effectively managing its


reputation. The internal communications process adopted to continu-

ously inform and educate other departments is a multifunctional tool

that allows the customer service department to take ownership of

problems and get them resolved swiftly.

CASE STUDY

Company Name: The Trafford Centre


Nature of Business: Shopping, leisure and entertainment centre


Specific Challenge: To make shopping and leisure facilities access-

ible for people with sensory disabilities.

Drivers

The Trafford Centre recognised that there are huge inequalities

associated with provision of services and information for people with

sensory disabilities such as deaf people, and those who are hard of

hearing, visually impaired, blind and deaf-blind. This is due to a range

of issues including, but not exclusively, problems with communication,

the accessibility of shops and services, training of service and retail

staff. Compounding the challenges are the physical problems asso-

ciated with customers who are unable to see products or to under-

stand terms and conditions.

Research undertaken by the RNID, Deaf Blind UK and Sense

revealed:

�� Ninety per cent of deaf or hard-of-hearing people have trouble

accessing goods and services due to their hearing loss.

�� Eighty per cent of deaf people felt that facilities in shopping

centres and other public areas discriminated against their

needs and could be improved.

�� Sixty one per cent of retailers have made no provision for

compliance with the Disability Discrimination Act, or to offer


improved or bespoke service for their deaf or hard-of-

hearing customers or staff.

�� There are more deaf and hard-of-hearing people in the UK

than the combined population of Scotland and Wales (8.7

million) and there are over 1 million blind or partially sighted

people in the UK.

�� Deaf people are considerably discriminated against in all

parts of their lives: 29- to 39-year-old deaf people are six

times as likely to be unemployed as hearing people are.

�� Deaf, hard-of-hearing, blind and visually impaired people

represent an annual spending power of £33 billion, which

with their family and friends is estimated to exceed £68

billion (Figures from the auditors who undertook the study,

OPCS).

�� There are 200 000 visually impaired people who could

become more independent if they received outdoor mobility

aids.

�� One in four deaf-blind people have gone without food or

medicine because shopping is so difficult for them.

The Trafford Centre therefore, identified a need for a site, in an access-

ible and popular area, to offer deaf and blind customers equal access

to information and services from organisations that exist to service

their needs. Shopping is a widespread activity enjoyed by many; yet

remains one of the most obvious ways in which deaf and blind people

are discriminated against. A ‘one-stop-shop’ at a major shopping area

would combine the provision of services with the offer of assisting deaf

and blind people with their shopping. These were the main drivers

behind the development of Sensorysolutions at the Trafford Centre.

Implementation

The first step in the planning was to ensure that the widest possible set

of needs could be accommodated. A project team with individuals

from the RNID and the Trafford Centre was formed. This team was

responsible for some logistical details, such as an appropriate location


for the service, the types of services to be offered, and also looked at

the provision of customer service training.

The primary challenges were finding suitable (free) accommoda-

tion and pulling together a properly skilled, professional team com-

mitted to delivering the service. Obtaining buy-in from the board of

directors of the centre and achieving their backing to approach

another partner for funding required a concise presentation and the

team had to have everything in place to achieve this.

By now the team had grown to encompass a director, regional

communications manager, RNID project manager, RNID staff and the

Trafford Centre customer service manager. This collaboration took

place to achieve a groundbreaking service for customers with sensory

disabilities. The physical running of the unit and delivery of services

requires a Sensorysolutions manager and access officers supported

by the Trafford Centre customer services team. The RNID and Guide

Dogs primarily fund the initiative.

Success

The Trafford Centre customer service philosophy reflects the total

commitment of the centre management team to achieve standards

and quality found nowhere else in the shopping centre industry. It

displays a joined-up approach to customer service delivery.

The Trafford Centre has always adopted the ‘access for all’

culture even before the Disability Discrimination Act, and is aware of

the commercial and moral ‘cost’ of any social exclusion. Even before

the Sensorysolutions initiative and the partnering with RNID and

Guide Dogs the centre was renowned for its benchmarking and quality

standards in such areas as: fair trading, building by design, secure

parking, children’s services and innovative design.

There is now provision for centre-staff training and for retailer

training, thus widening the audience and educating more retailers,

many of whom are national or international chains who may adopt

independent policies; thus reducing the amount of discrimination

against sensory disabled people.


The development of the service is in keeping with the Trafford

Centre’s philosophy and has resulted in a pioneering service that is

unique to the UK. The centre’s ultimate aim is: ‘To be recognised as

having the foremost professional expertise within the shopping centre

industry, providing a quality, efficient and friendly service to the benefit

of all its customers’.

The centre has recognised the huge opportunity currently being

ignored by other centres and thousands of retailers. The realisation

that providing quality services to this section of the community will

not only comply with legislation and take into account a willingness to

do so from a moral point of view, but also makes sound commercial

sense is enabling some of the people with the £33 billion annual

spending power the chance to enjoy the centre’s products and

facilities.

In the first seven months of the project, 33 600 customers have

used Sensorysolutions services; media coverage has reached over

7.5 million people; and repeat business, recommendations and letters

of thanks are measures of customer satisfaction.

Summary

This case study displays some excellent examples of marrying

business ethics with service excellence. The proactive initiative to

supply a moral need can result in business goals being achieved.

Segmenting this customer group and empowering staff to collaborate

with partners, within clear strategic demarcations, has resulted in a

pioneering customer service offering to a previously somewhat

disenfranchised sector.


GLOSSARY OF TERMS

Phrase Explanation

24/7 24 hours a day, seven days a week360-degree view complete, all-encompassing viewB2B business-to-businessB2C business-to-consumerband-aid sticking plasterbenchmarking measuring mechanism from which to base

further measuresbottom-up shop floor to boardroombreak-even make gains and losses that balance exactlybuddying pairing experienced staff with

inexperienced staffbusman’s holiday carrying out of usual tasks in unusual

locationsbuy-in acceptance of ideas, proposals or action

plansCEO chief executive officercoalface front line corporate-wide encompassing the entire organisationcost-effective cheapestcost-to-serve the actual cost to a company to serve any

customercradle-to-grave from birth to death

Phrase Explanation

critical mass the optimum number causing cost-to-serve to tumble

cross-sell sell goods associated with originalpurchase

cross-skill training to broaden skills level ofemployees

CSR customer service representativecustomer-centric putting the customer at the heart of

business operationscustomer churn the number of customers leaving an

organisation to use competitor servicescustomer expectation the level of service a customer comes to

expectcustomer-facing front-line staff with direct contact with

customerscustomer-focused putting the customer high on the list of

business prioritiescustomer lifetime values (CLVs) how much money a customer will spend

over the lifetime of the relationshipcustomer-orientated actions and thoughts leaning in favour of

the customercustomer segment a defined sector of customer grouped by a

common denominatorcustomer unions groups of like-minded customers looking

to purchase similar goodsdepartmentalise separate into departments for individual

responsibilitydepartmentalised isolation within sub-sections of a divided

organisationdifferentiation value the value attributed to an unique action

that competitors cannot matchdownstream staff staff with a lesser rankeconomy of scale savings made through large volumeemployee-centric putting the employee at the heart of

business operationsempowerment authority to act independently with set

boundariesextra mile offering service beyond the expected or

hoped for levelfinal snagging troubleshooting workmanship at

completion of building work


Phrase Explanation

ham-fisted clumsyhot-desking not having a singular designated workspaceincremental awards rewards for reaching separate, increasingly

difficult levels, step-by-steplifetime values (LTVs) customer value over the entire length of

relationshiplife-triggers events at certain stages of life that trigger

an action (65 years – pension)life-work balance the equilibrium of commitment to work

and home life loyalty marketing marketing to customers identified as being

most loyalmantra words to be said or chanted repeatedlymultichannel communications communication via more than one of the

following: e-mail, phone, Web, text,letter, fax

multinational organisations companies that have bases in many partsof the world

multitasking carrying out of more than one tasksimultaneously

non-customers potential customersnumber-crunching statistical analysisoutsourced contracted outoverriders specific conditionsproduct volume amount of goods producedpseudo-customers internal staff promoting management

policyquasi-monopolistic the appearance of competitiveness but the

reality of limited choicerelationship value see lifetime valueserial complainers customers who habitually complain, with

or without good reasonservice offering complete suite of actions making up the

perceived service levelSMS short message service (text via mobile)socio-economic a society-wide segmentation dividing the

population into seven groupsstaff turnover / staff churn the number of staff leaving an organisation

to seek alternative employmentstakeholders people with a vested interestTCE total customer experience

G L O S S A R Y O F T E R M S 211

Phrase Explanation

the ‘wow’ factor service that makes the recipient say orthink, ‘Wow!’

third party a supplier or partner who you use as partof your offering

tokenism a gesture lacking real commitmenttop-down boardroom to shop floortouch points contact methods such as: e-mail, phone,

Web, text, letter, fax, face-to-facetrade-off give in return for something elsetransaction value the monetary value of a single transactionunprofitable customers customers whose spend is below your

cost-to-serveup-sell persuade customer to upgrade purchaseup-skill training to enhance skills level of

employeeswildcat strike sudden withdrawal of labourwin-win situation securing an outcome where all parties are

satisfied


24/7 concepts 49–50360-degree views, customers 155–7, 161–2achievers 123, 126acquisitions, customers 3, 29–30, 78–81, 82–3,

164–5actualisers 122–3added value services 74–5, 156–7AON Warranty Group 164–5awards 4, 45–6, 52, 70, 143–6, 169, 173–6, 186

B2B see business to businessB2C see business to consumersbehaviour patterns, customers 121–33, 155–7,

161–2believers 123benchmarks 1, 26–7, 31, 91–2, 170, 182–6benefits, employees 4, 45–6, 52, 70, 143–6, 169,

173–6best practices 1, 6–7, 26–7, 38, 179blame cultures 98, 110boards 19–20, 42, 141, 182–3

see also directorscustomer elements 27–8, 182–3employees 25–6, 29, 141reputations 107–19

Boots Company 118–19brand values 42, 107, 113–15, 140BT Cellnet 49, 187–90‘buddying’ benefits 172–3business to business (B2B) 1, 36–7, 96–7, 122, 156,

186business to consumers (B2C) 1, 36–7, 93, 96–7, 186buy-ins 2–7, 16–17, 20, 40, 44–6, 52–3, 200–204buying patterns 65–72, 154–5

call centres 32, 47–60, 81, 186change issues 51–2complaints 48–9, 56, 81, 98, 100–2concepts 47–60, 186data uses 48, 55–7employees 48–50, 52–5, 186multichannels 49–52, 56–9, 100–2multitasking 52–5outsourcing 47–8, 50readiness checklists 56–7types 47–8

Capita Group 105–6Carpetright 72–4case studies 187–207

see also individual companieschampions 12–13, 25–34, 42change 2–3, 12–13, 28–9, 39–41, 103–6

call centres 51–2communications 39–41corporate structures 28–9, 38–41, 103–6, 177culture issues 2–3, 39–41, 44–6, 103–6, 162–4,

181–207customer-centric approaches 16–17, 128–9,

182–3

expectations 121–33management issues 39–41, 51–2, 103–6resistance problems 2–3, 39–41

cherry-picked figures 69‘chill-out’ rooms 169, 176choice 17–19, 92–4

see also differentiation...churn problems see retention issuescoalfaces 25–6collaboration links 159–62, 179–80, 186, 204–7commercial businesses, customer elements 27–8communications 12, 16, 19–21, 56, 157–61,

183–207call centres 32, 47–60change issues 39–41channels 49–52, 56–9, 88–9, 100–2, 147–9,

164–5, 183–207collaborations 159–62, 186, 204–7complaints 48–9, 56, 81, 98, 100–2, 139–40,

157–8, 184–5CRM systems 159–60, 186customer service directors 25–6, 28–9face-to-face interactions 98, 100, 117, 127,

139–40, 167, 186feedback 16, 20–1, 45–6, 56, 87, 91–106, 152–3,

162, 184–90internal communications 28–9, 31, 39–40, 102,

108, 117, 130–32, 150, 159–62, 186, 200–204regular communications 19–20reputations 107–16segmentation issues 80–82, 88–9, 155–7, 162–3,

183–6service shortfalls 92–6strategies 5–7valued customers 15, 19–20, 29–30, 33–4, 81–2,

139–40, 159–61, 183–4competitors 137–8, 147, 182

LTVs 71unprofitable customers 79, 82–4

complaints 4, 13, 48–9, 56, 72–4, 84–5, 91–119,152–7

see also feedbackblame 98, 110call centres 48–9, 56, 81, 98, 100–102communications 48–9, 56, 81, 98, 100–102,

139–40, 157–8, 184–5concepts 91–106, 142–3, 152–7, 162, 168–9,

184–7construction companies 94–6expectations 92–4, 143, 185listening skills 93–4, 102, 189, 194–7predicted shortfalls 92–6proactive approaches 92–6, 194–7readiness checklists 102–3satisfied complainers 152–7, 168–9statistics 186–7transparency benefits 92–100, 103, 111–12,

190truth 97–101, 111–12, 185

INDEX

computer systems 28, 31–3, 44–5, 56–9, 130–32,183–4

see also Internetconferences 28confidence boosts, employees 142–3confrontations 152–4, 168–9consistent service levels 169–70, 181–4construction companies, complaints 94–6consumer types 122–4contact centres 47–60

see also call centresconcepts 50–60multichannel call centres 49–52, 56–9, 100–102

core values 141–2corporate reputation officers 107–19cost-to-serve calculations 69–72, 82–6, 184costs, relationships 69–72, 79–89cradle-to-grave mentalities 68–72credit-card sales 36–7crises 107–16CRM see customer relationship managementcross-sell concepts 50, 152, 154–7, 158–9, 200–204CSRs see customer service representativesculture issues 2, 4–6, 12–17, 33–46, 78–81, 167–80

blame cultures 98, 110change 2–3, 39–41, 44–6, 103–6, 162–4, 181–207concepts 33–4, 35–46, 167–80openness needs 171–3, 190–93organisations 35–46, 78–81, 96–100, 167–80profits 37–9, 78–81readiness checklists 43service operations 35–46top-down approaches 41–3, 70, 72–4, 107–19,

142–3transparency benefits 92–100, 103, 111–12,

172–3, 185–6, 190–93Currie & Brown 147–9customer elements, commercial businesses 27–8‘customer is king’ approaches 30, 181Customer Relation Inc. 99customer relationship management (CRM) 70–71,

159–60, 186customer service directors 25–34, 38, 42, 182–3

concepts 25–34readiness checklists 30–31retention benefits 29–30, 34strategies 26–7, 31, 42

customer service representatives (CSRs) 25–9, 31–6,43, 50, 52–7, 84, 109, 151–80

awards 169, 173–6, 186breaks 169, 176care issues 167–80, 186concepts 25–9, 167–80, 185–6consistent service levels 169–70, 181–4problem-assistance needs 170–71readiness checklists 176–8sales 151–65, 185–6stresses 167–9, 176

customer unions 30, 42, 113–15customer-centric approaches 1–7, 11–23, 27–8, 42,

85–7, 128–30, 182–207change 16–17, 128–9, 182–3concepts 1–7, 11–23, 27–8, 42departments 12, 17, 27–8, 159–61evaluations 11–23, 182readiness checklists 12, 19–20

customer-driven approaches 13–16, 99–100customer-facing situations 13, 17, 27–8, 137–80,

186concepts 137–50, 167–80empowerment benefits 137–50, 153–5, 169–80,

186readiness checklists 146–7

customers, definitions 155–6

data uses 3–5, 15, 19–21, 29–31, 48–60, 163–4,186–90

call centres 48, 55–7LTVs 70–2segmentation needs 70–1, 78–82, 183–6

decision-making considerations 19, 29, 43, 51–2,141

defections 80–83, 125–8, 138–9departments

customer-centric approaches 12, 17, 27–8,159–61

internal collaborations 159–62, 186, 204–7rivalries 86–7, 159

differentiation benefits 1, 12, 13–15, 17–19, 33–4,42, 116

concepts 1, 12, 13–15, 17–19, 30services 17–19, 30, 42, 81–2, 133, 177–8, 183–4,

187–204unprofitable customers 81–2, 183–4

directors 19–20see also boards; managementcustomer service directors 25–34, 38, 42, 182–3new directors 39–40

disabled persons, accessibility issues 204–7discussions, workplace cultures 172–3distribution needs 19–21doubters 2–3, 39–41, 186–7drivers 181–207

e-mails 49–50, 53–4, 57–8, 98, 100, 183–4early adopters 1economies of scale 77, 79empathy 51–2, 92, 96, 101–4, 111–12, 189employees 151–65

see also empowerment...; training...awards 4, 45–6, 52, 70, 143–6, 169, 173–6, 186benefits 4, 45–6, 52, 70, 143–6, 169, 173–6boards 25–6, 29, 141buy-ins 2–3, 16–17, 20, 40, 44–6, 52–3, 200–204call centres 48–50, 52–5, 186change concerns 2–3, 39–41confidence boosts 142–3customer-facing situations 13, 17, 27–8, 137–80,

186doubters 2–3, 39–41expectations 128–30, 143, 169–70LTV calculations 69–70, 72motivations 169, 173–6ownership issues 13, 36, 86–7, 139–45, 159–61,

185–6, 200–204recruitment costs 138reputation issues 108–19retention issues 138–9, 140, 171, 186satisfaction needs 1, 16–17, 25–6, 138–9, 167–80

empowerment issues 2–3, 16, 21–36, 40–48, 53–5,110–11, 137–50, 187–207

concepts 137–50, 153–5, 187–207CSRs 169–80, 185customer-facing situations 137–50, 153–5,

169–80, 186levels 141–2training needs 137–50

escalation strategies 54ethics 35–9, 42, 82–4, 190–3, 204–7Eurostar UK 190–93evaluations

customer-centric approaches 11–23, 182unprofitable customers 77–89, 183–4

excellence issues, concepts 1–7, 19–20expectations 92–4, 121–33, 143, 169–70, 185

churn problems 126–8concepts 121–33, 185excellence effects 122–5, 185readiness checklists 130


service charges 125–6VALS-2 122–4, 126

experiencers 123–4‘extra mile’ 145–7, 163–4, 173–5extranets 130–32

face-to-face interactions 98, 100, 117, 127, 139–40,167, 186

feedback 16, 20–21, 45–6, 56, 87, 91–106, 152–3,162, 184–90

see also complaintsconcepts 93–106

flexitime systems 176focus issues 11–12, 17franchises 113fulfillers 123

goals 35

habits 4, 43, 156Hatfield disaster 194–7helplines, Internet 88–9Hilton 86–7hot-desking benefits 172–3hotel industry 153

implementation issues 182–204‘in their shoes’ approaches 27–8, 70in-house call centres 47–9incentives see awardsinitiations 172–3intangible values, customers 30, 146, 165, 182International Rectifier Company (GB) Ltd 130–32Internet 4, 37, 49–50, 52–3, 57–8, 88–9, 114–15,

183–4e-mails 49–50, 53–4, 57–8, 98, 100, 183–4helplines 88–9

intranets 28

John Lewis Partnership 36–7

knowledge 19–21, 29–31, 36–7, 48, 55–6, 110,163–4, 186

segmentation needs 70–71, 78–82, 183–6serial complainers 84–5

learning organisations 92Legal & General Assurance Society 33–4lifetime values (LTVs) 16–17, 29–30, 63–89, 159,

183–4calculations 63–72competitors 71concepts 63–75readiness checklists 71–2segmentation 70–1, 78–82, 183–4trends 68–72

listening skills 93–4, 102, 189, 194–7London Borough of Newham 22–3Loop Customer Management 57–9loyalties 1–3, 11–18, 33–8, 91–2, 117, 125, 139–40,

151–5, 187–207loyalty cards 15, 70loyalty marketing 15LTVs see lifetime values

makers 124management

see also directorsbuy-ins 2–7, 16–17, 20, 40, 44–6, 52–3, 200–204change issues 39–41, 51–2, 103–6complaints 91–106, 168–9, 184–5concepts 2–7, 12–13expectations 121–33, 185new managers 39–40

personalities 41reputations 107–19, 194–7

marketingcall centres 55–6loyalty marketing 15LTVs 71

Marks & Spencer 12measurements 4–5, 15–27, 38, 63–72, 91–2,

100–102, 164, 178, 184–90media relationships 107–8, 129, 204Mid Kent College 179–80Midland Mainline 194–7mobile phones 52, 183monitoring needs, call centres 55–7mortgage companies 68, 79motivations

customers 156–7employees 169, 173–6

multichannel call centres 49–52, 56–9, 100–102see also contact centres

multinational companies 50multitasking 52–5, 164–5muzak 56

names 18, 184National Customer Service Awards 1National Westminster Bank 177–8negotiations 103–4Newcastle City Council 59–60newsletters 28non-verbal communications 157–8NOP survey 186–7

offloading considerations, unprofitable customers82–4

Open All Hours (TV programme) 4open charges 125–6open days 81–2open space 172–3openness needs 171–3, 190–93organisations, culture issues 35–46, 78–81, 96–100,

167–80outsourced call centres 47–8, 50ownership issues 13, 36, 86–7, 112–13, 139–45,

159–61, 185–6, 200–204

perceptions 128–30personalities, management issues 41Powergen 132–3predicted shortfalls 92–6predictive text 52–3price-driven approaches 13–16privilege cards 81processes 182–207product-driven approaches 14–16profits

culture issues 37–9, 78–81LTVs 16–17, 29–30, 63–89unprofitable customers 77–89, 183–4

public affairs 107–19, 194–7

Quest Media 1

rail companies 92–3, 129, 190–97Railtrack 194–5Ratner 184readiness checklists

call centres 56–7complaints 102–3CSRs 176–8culture issues 43customer service directors 30–31customer-centric approaches 12, 19–20customer-facing situations 146–7

I N D E X 215

readiness checklists (continued)expectations 130LTVs 71–2reputations 115–16sales/service personnel 161–2unprofitable customers 85–6

recruitment costs 138redundancies 39–40reference letters 17–18referrals 17–18, 30, 86–7, 153–4refunds 141, 155regulated industries 82–3, 132–3relationship values see lifetime valuesreputations 107–16, 184, 194–204

concepts 107–19, 184management issues 107–19, 194–7readiness checklists 115–16third parties 107, 109–11, 112–15, 116–19,

184–5, 200–204transparency needs 111–12, 190

restaurants 152–3retention issues

customers 1–4, 14–18, 29–34, 63–89, 117–19,125–8, 139–40, 187–207

employees 138–9, 140, 171, 186expectations 126–8

reviews 182Revised Values and Lifetime Table (VALS-2)

122–4, 126rewards 4, 45–6, 52, 70, 143–6, 169, 173–6, 186Royal Bank of Scotland 45–6

Safeway 70Sainsbury’s Supermarkets 197–200sales 27–8, 151–65, 185–6

concepts 151–65cross-sell concepts 50, 152, 154–7, 158–9,

200–204readiness checklists 161–2service personnel 151–65, 185–6up-sell opportunities 50, 152, 154–8, 200–204

satisfaction needscomplainers 152–7, 168–9customers 5, 17–18, 34, 86–7, 94, 116–19,

139–40, 152–9, 168–9employees 1, 16–17, 25–6, 138–9, 167–80

scenarios 109Schreiber, David 99segmentation needs 70–71, 78–82, 88–9, 122–6,

130, 155–7, 162–3, 182–6self-assessments 147–9sensory disabilities, accessibility issues 204–7serial complainers 84–5services 35–46, 91–106, 152–5

company categories 99–100differentiation benefits 17–19, 30, 42, 81–2, 116,

133, 177–8, 183–4, 187–204personnel 27–9, 40, 108–19, 151–65, 185–6

Siemens Communications 162–4SMS messages 183Spector, Robert 6spin 108–9staff updates 28Stannah Stairlifts 200–204statistics 186–7strategies 181–2

communications 5–7customer service directors 26–7, 31, 42unprofitable customers 79–81, 83–4

strikes 96, 107, 110strivers 123, 126structures 28–9, 38–41, 103–6, 177strugglers 124subliminal costs 125–6successful criteria 1–2, 5, 6–7, 181–207Sun Life Financial of Canada 31–3supermarkets 4, 15, 37, 70systems 19, 182–207

tangible values, customers 30, 146, 165, 182targeted customers 78–81TCEs see total customer experiencesteams 103–6, 139, 150, 164–5Thames Water Utilities 43–5third parties, reputations 107, 109–11, 112–15,

116–19, 184–5, 197–200Thomas Cook Retail 103–4‘time off in lieu’ 145, 176top-down approaches

culture issues 41–3, 70, 72–4, 107–19, 142–3reputation issues 107–19

total customer experiences (TCEs) 16, 30–31Trafford Centre 204–7training needs 6, 16, 22–3, 27–8, 32–3, 44–7,

177–80, 190call centres 52–3, 57–9certificates 137, 144, 190customer-facing situations 137–50, 179–80empowerment 137–50

transparency benefits 92–100, 103, 111–12, 125–6,172–3, 185–6, 190–3

Travelcare 116–17trends 1–2, 7, 68–72trust 137–50, 164–5, 187–90truth, complaints 97–101, 111–12, 185TXU Energi 128–9

Unipath 20–21unprofitable customers 77–89, 183–4

competitors 79, 82–4concepts 77–89, 183–4differentiation benefits 81–2, 183–4ethics 82–4, 204–7offloading considerations 82–4readiness checklists 85–6strategies 79–81, 83–4

up-sell concepts 50, 152, 154–8, 200–204up-skilling techniques 53, 164–5

VALS-2 see Revised Values and Lifetime Tablevalued customers 15, 19–20, 29–30, 33–4, 116,

139–40communications 15, 19–20, 29–30, 33–4, 81–2,

139–40, 159–61, 183–4LTVs 16–17, 29–30, 63–89, 183–4unprofitable customers 77–89

Vauxhall Motors 88–9virtual repetition 168–9

Waitrose 37‘what’s-in-it-for-me’ scenarios 160WHSmith 149–50Wimpy 14word-of-mouth recommendations 6, 17–18, 19–20,

30, 86–7, 153–4‘wow’ factors 18–21, 125, 130, 140, 146

Zurich Financial Services 74–5


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