Customer service is hot news. In addition to well-established consumer organisations such as Which?, there are now a myriad of online opportunities and offline mediums which allow consumers to give their opinions on good and poor customer service. These range from social networks such as Twitter and Facebook, to direct communication with national newspapers and TV stations and even websites set up specifically to allow customers to tell of their good and bad customer service experiences.
Customer satisfaction in the UK is at 74% UK Customer Satisfaction Index 2009(published by the Institute of Customer Service) shows that many customers' needs are still not being met. We may mull over customer satisfaction indices, listen to tales of horrendous service, or just rely on our own experiences of the wide-ranging levels of service that exist. But things just don’t seem to get significantly better for customers. And that is in spite of the rising mountain of evidence showing that the customer experience is the prime determinant of business success, and that customers’ expectations are not only increasing, but that those expectations are actually turning into demands.
In the current economic climate customer service is a key differentiator between those companies gaining and retaining customers and those who don’t and become unprofitable or even go out of business. Both poor and outstanding service have a strong emotional impact upon us, creating intense feelings about organisations. Many businesses find service excellence elusive, hard to grasp and difficult to deliver. But companies must face up to how service - good or bad - impacts dramatically on their reputation and business success. Everyone in business has a customer, and it is time to look after them!
Create a Customer Service Culture
The challenge for many businesses is inconsistent customer service delivery which can create real challenges in maintaining a reputation for service excellence. Customer expectations are rising daily and complainants can do irretrievable damage to organisations. Organisations must not be complacent, but instead develop a customer-focused culture and can-do attitude, keeping the customer at the heart of their business, offering a seamless but effective service. Feedback is essential from both your teams and your customers before implementing any major changes in the way you deliver service to your customers.
Typical causes of customer defection:
- Lack of personal contact – commitment, trust, confidentiality
- Broken promises, always letting customers down
- Corporate arrogance, a failure to listen to internal/external customers – a failure to listen to their own staff who recognise where things are going wrong but senior managers do not listen to them
- Failure to handle complaints successfully
World class leaders develop customer service standards for both internal and external customers, promoting the “Promises to Customers”. These standards inform customers what to expect from your organisation and it is vital that you identify what is important to customers. The Institute of Customer Service (UK) commissioned a research project led by Professor Robert Johnston of Warwick Business School, and he discovered the gold nuggets that can keep customers happy:
- Deliver the promise.. Do what you say you will do.
- Keep transactions personal.. People are individuals, so treat them how you would like to be treated.
- Go the extra mile.. Give your customers something extra to keep them loyal.
- Handle complaints professionally.. This is paramount, because research tells us that 91% of complainants will stay loyal to an organisation if their complaint is handled professionally. They will also become your most loyal ambassadors and tell others about your brilliant service recovery.
Companies must remember that their customers decide whether they survive or die.
Customer 1st International’s Best Practice Guide for Customer Service Managers is available in hard copy, as an e-book, e-workbook and accredited tutor-led online award.